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PENSION AND OTHER POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
PENSION AND OTHER POSTRETIREMENT BENEFITS PENSION AND OTHER POSTRETIREMENT BENEFITS
 
PENSION PLANS
We sponsor Canadian and US contributory and non-contributory registered defined benefit and defined contribution pension plans, which provide benefits covering substantially all employees. The Canadian pension plans provide defined benefit and defined contribution pension benefits to our Canadian employees. The US pension plans provide defined benefit pension benefits to our US employees. We also sponsor supplemental non-contributory defined benefit pension plans, which provide non-registered benefits for certain employees in Canada and the US.

Defined Benefit Pension Plan Benefits
Benefits payable from the defined benefit pension plans are based on each plan participant's years of service and final average remuneration. Some benefits are partially inflation-indexed after a plan participant’s retirement. Our contributions are made in accordance with independent actuarial valuations. Participant contributions to contributory defined benefit pension plans are based upon each plan participant's current eligible remuneration.

Defined Contribution Pension Plan Benefits
Our contributions are based on each plan participant's current eligible remuneration. Our contributions for some defined contribution pension plans are also based on age and years of service. Our defined contribution pension benefit costs are equal to the amount of contributions required to be made by us.
Benefit Obligations, Plan Assets and Funded Status
The following table details the changes in the projected benefit obligation, the fair value of plan assets and the recorded assets or liabilities for our defined benefit pension plans:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)    
Change in projected benefit obligation    
Projected benefit obligation at beginning of year3,630 4,600 1,029 1,184 
Service cost 81 131 40 43 
Interest cost184 127 47 24 
Participant contributions31 29 — — 
Actuarial (gain)/loss1
359 (1,069)31 (201)
Benefits paid(193)(187)(76)(94)
Foreign currency exchange rate changes— — (29)77 
Other— (1)(6)(4)
Projected benefit obligation at end of year2
4,092 3,630 1,036 1,029 
Change in plan assets
Fair value of plan assets at beginning of year4,234 4,536 1,080 1,160 
Actual return/(loss) on plan assets427 (235)78 (64)
Employer contributions27 91 5 4 
Participant contributions31 29 — — 
Benefits paid(193)(187)(76)(94)
Foreign currency exchange rate changes— — (29)78 
Other2 — (6)(4)
Fair value of plan assets at end of year3
4,528 4,234 1,052 1,080 
Overfunded status at end of year436 604 16 51 
Presented as follows:
Deferred amounts and other assets636 764 116 141 
Other current liabilities(8)(9)(5)(5)
Other long-term liabilities (192)(151)(95)(85)
 436 604 16 51 
1Primarily due to the decrease in the discount rate used to measure the defined benefit obligations (2022 - primarily due to increase in the discount rate used to measure the defined benefit obligations).
2The accumulated benefit obligation for our Canadian pension plans was $3.8 billion and $3.4 billion as at December 31, 2023 and 2022, respectively. The accumulated benefit obligation for our US pension plans was $1.0 billion as at December 31, 2023 and 2022.
3Assets in the amount of $14 million (2022 - $10 million) and $62 million (2022 - $58 million), related to our Canadian and US non-registered supplemental pension plan obligations, are held in grantor trusts and rabbi trusts that, in accordance with federal tax regulations, are not restricted from creditors. These assets are committed for the future settlement of benefit obligations included in the underfunded status as at the end of the year, however they are excluded from plan assets for accounting purposes.
Certain of our pension plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and fair value of plan assets were as follows:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)
Accumulated benefit obligation394 360 99 89 
Fair value of plan assets243 218 — — 

Certain of our pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligation and fair value of plan assets were as follows:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)
Projected benefit obligation416 377 99 90 
Fair value of plan assets243 218 — — 

Amount Recognized in Accumulated Other Comprehensive Income
The amount of pre-tax AOCI relating to our pension plans are as follows:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)    
Net actuarial (gain)/loss51 (64)74 40 
Prior service cost— — 1 1 
Total amount recognized in AOCI1
51 (64)75 41 
1Excludes amounts related to CTA.

Net Periodic Benefit (Credit)/Cost and Other Amounts Recognized in Comprehensive Income
The components of net periodic benefit (credit)/cost and other amounts recognized in pre-tax Comprehensive income related to our pension plans are as follows:
CanadaUS
Year ended December 31, 202320222021202320222021
(millions of Canadian dollars)
Service cost81 131 139 40 43 44 
Interest cost1
184 127 101 47 24 17 
Expected return on plan assets1
(271)(295)(252)(77)(85)(73)
Amortization/settlement of net actuarial (gain)/loss1
— 8 54 (4)— 11 
Amortization/curtailment of prior service credit1
— — — — (2)— 
Net periodic benefit (credit)/cost(6)(29)42 6 (20)(1)
Defined contribution benefit cost12 10 7 — — — 
Net pension (credit)/cost recognized in Earnings6 (19)49 6 (20)(1)
Amount recognized in OCI:
 Amortization/settlement of net actuarial (gain)/loss— (2)(25)4 — (11)
Amortization/curtailment of prior service credit— — — — 2 — 
Net actuarial (gain)/loss arising during the year115 (288)(291)30 (52)(99)
Total amount recognized in OCI115 (290)(316)34 (50)(110)
Total amount recognized in Comprehensive income121 (309)(267)40 (70)(111)
1Reported within Other income/(expense) in the Consolidated Statements of Earnings.
Actuarial Assumptions
The weighted average assumptions made in the measurement of the projected benefit obligation and net periodic benefit cost of our pension plans are as follows:
 CanadaUS
202320222021202320222021
Projected benefit obligation
Discount rate4.6 %5.1 %3.2 %4.7 %4.9 %2.6 %
Rate of salary increase3.0 %2.9 %2.9 %2.6 %2.8 %2.8 %
Cash balance interest credit rateN/AN/AN/A4.5 %4.3 %4.3 %
Net periodic benefit cost
Discount rate5.3 %3.2 %2.6 %4.9 %2.6 %2.2 %
Rate of return on plan assets6.5 %6.6 %6.2 %7.4 %7.4 %7.3 %
Rate of salary increase2.9 %2.9 %2.3 %2.8 %2.8 %2.7 %
Cash balance interest credit rateN/AN/AN/A4.3 %4.3 %4.3 %

OTHER POSTRETIREMENT BENEFIT PLANS
We sponsor funded and unfunded defined benefit OPEB Plans, which provide non-contributory supplemental health, dental, life and health spending account benefit coverage for certain qualifying retired employees.

Benefit Obligations, Plan Assets and Funded Status
The following table details the changes in the accumulated postretirement benefit obligation, the fair value of plan assets and the recorded assets or liabilities for our defined benefit OPEB plans:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)    
Change in accumulated postretirement benefit obligation
    
Accumulated postretirement benefit obligation at beginning of year
211 274 136 173 
Service cost 3 4 1 1 
Interest cost11 7 6 3 
Participant contributions— — 5 6 
Actuarial (gain)/loss1
13 (66)4 (37)
Benefits paid(10)(8)(20)(21)
Foreign currency exchange rate changes— — (3)11 
Accumulated postretirement benefit obligation at end of year
228 211 129 136 
Change in plan assets
Fair value of plan assets at beginning of year— — 185 201 
Actual return/(loss) on plan assets— — 14 (21)
Employer contributions10 8 7 7 
Participant contributions— — 5 6 
Benefits paid(10)(8)(20)(21)
Foreign currency exchange rate changes— — (4)13 
Fair value of plan assets at end of year— — 187 185 
Overfunded/(underfunded) status at end of year(228)(211)58 49 
Presented as follows:
Deferred amounts and other assets— — 73 75 
Other current liabilities(12)(12)— — 
Other long-term liabilities (216)(199)(15)(26)
 (228)(211)58 49 
1Primarily due to the decrease in the discount rate used to measure the defined benefit obligations (2022 - primarily due to increase in the discount rate used to measure the benefit obligations).
Certain of our OPEB plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and fair value of plan assets were as follows:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)
Accumulated benefit obligation228 211 78 76 
Fair value of plan assets— — 63 50 

Amount Recognized in Accumulated Other Comprehensive Income
The amount of pre-tax AOCI relating to our OPEB plans are as follows:
 CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)    
Net actuarial gain(82)(101)(96)(102)
Prior service credit(1)(1)(22)(30)
Total amount recognized in AOCI1
(83)(102)(118)(132)
1Excludes amounts related to CTA.

Net Periodic Benefit (Credit)/Cost and Other Amounts Recognized in Comprehensive Income
The components of net periodic benefit (credit)/cost and other amounts recognized in pre-tax Comprehensive income related to our OPEB plans are as follows:
 CanadaUS
Year ended December 31,202320222021202320222021
(millions of Canadian dollars)      
Service cost3 4 6 1 1 1 
Interest cost1
11 7 7 6 3 3 
Expected return on plan assets1
— — — (11)(12)(10)
Amortization/settlement of net actuarial gain1
(6)(1)— (6)(6)(1)
Amortization/curtailment of prior service credit1
— — — (8)(7)(7)
Net periodic benefit (credit)/cost recognized in Earnings8 10 13 (18)(21)(14)
Amount recognized in OCI:
Amortization/settlement of net actuarial gain6 1 — 6 6 1 
Amortization/curtailment of prior service credit— — — 8 7 7 
Net actuarial (gain)/loss arising during the year13 (67)(50)— (4)(80)
Total amount recognized in OCI19 (66)(50)14 9 (72)
Total amount recognized in Comprehensive income27 (56)(37)(4)(12)(86)
1Reported within Other income/(expense) in the Consolidated Statements of Earnings.

The weighted average assumptions made in the measurement of the accumulated postretirement benefit obligation and net periodic benefit cost of our OPEB plans are as follows:
 CanadaUS
202320222021202320222021
Accumulated postretirement benefit obligation
Discount rate4.6 %5.3 %3.2 %4.7 %4.9 %2.4 %
Net periodic benefit cost
Discount rate5.3 %3.2 %2.6 %4.9 %2.4 %2.0 %
Rate of return on plan assetsN/AN/AN/A5.9 %6.0 %6.0 %
Assumed Health Care Cost Trend Rates
The assumed rates for the next year used to measure the expected cost of benefits are as follows:
Canada
US1
2023202220232022
Health care cost trend rate assumed for next year4.0 %4.0 %4.7 %4.7 %
Rate to which the cost trend is assumed to decline (ultimate trend rate)
4.0 %4.0 %3.3 %3.3 %
Year that the rate reaches the ultimate trend rateN/AN/A2022 - 20452021 - 2045
1In addition, under the Enbridge Employee Services, Inc., Health Reimbursement Account Plan, health care costs will increase by 5.0% every three years.

PLAN ASSETS
We manage the investment risk of our pension funds by setting a long-term asset mix policy for each plan after consideration of: (i) the nature of pension plan liabilities; (ii) the investment horizon of the plan; (iii) the going concern and solvency funded status and cash flow requirements of the plan; (iv) our operating environment and financial situation and our ability to withstand fluctuations in pension contributions; and (v) the future economic and capital markets outlook with respect to investment returns, volatility of returns and correlation between assets.

The overall expected rate of return on plan assets is based on the asset allocation targets with estimates for returns based on long-term expectations.

The asset allocation targets and major categories of plan assets are as follows:
 CanadaUS
TargetDecember 31,TargetDecember 31,
Asset CategoryAllocation20232022Allocation20232022
Equity securities46.0 %41.4 %38.2 %45.0 %39.5 %38.3 %
Fixed income securities23.2 %29.6 %31.7 %20.0 %19.4 %20.5 %
Alternatives1
30.8 %29.0 %30.1 %35.0 %41.1 %41.2 %
1Alternatives include investments in private debt, private equity, infrastructure and real estate funds. Fund values are based on the net asset value of the funds that invest directly in the aforementioned underlying investments. The values of the investments have been estimated using the capital accounts representing the plan's ownership interest in the funds.
Pension Plans
The following table summarizes the fair value of plan assets for our pension plans recorded at each fair value hierarchy level:
 CanadaUS
Level 11
Level 22
Level 33
Total
Level 11
Level 22
Level 33
Total
(millions of Canadian dollars)        
December 31, 2023
Cash and cash equivalents227 — — 227 8 — — 8 
Equity securities4
Canada— 3 — 3 — — — — 
Global— 1,871 — 1,871 — 416 — 416 
Fixed income securities4
Government— 446 — 446 — 46 — 46 
Corporate— 667 — 667 — 149 — 149 
Alternatives5
— — 1,290 1,290 — — 433 433 
Forward currency contracts— 24 — 24 — — — — 
Total pension plan assets at fair value227 3,011 1,290 4,528 8 611 433 1,052 
December 31, 2022
Cash and cash equivalents272 — — 272 13 — — 13 
Equity securities4
Canada— 355 — 355 — — — — 
Global— 1,263 — 1,263 — 414 — 414 
Fixed income securities4
Government201 435 — 636 — 87 — 87 
Corporate— 433 — 433 — 121 — 121 
Alternatives5
— — 1,291 1,291 — — 445 445 
Forward currency contracts— (16)— (16)— — — — 
Total pension plan assets at fair value473 2,470 1,291 4,234 13 622 445 1,080 
1Level 1 assets include assets with quoted prices in active markets for identical assets.
2Level 2 assets include assets with significant observable inputs.
3Level 3 assets include assets with significant unobservable inputs.
4Pension plan assets include $61 million (2022 - $32 million) of equity and fixed income securities investments held with related parties.
5Alternatives include investments in private debt, private equity, infrastructure and real estate funds.

Changes in the net fair value of pension plan assets classified as Level 3 in the fair value hierarchy were as follows:
CanadaUS
December 31,2023202220232022
(millions of Canadian dollars)   
Balance at beginning of year1,291 1,064 445 337 
Unrealized and realized gains/(losses)(41)155 (12)78 
Purchases and settlements, net40 72 — 30 
Balance at end of year1,290 1,291 433 445 
OPEB Plans
The following table summarizes the fair value of plan assets for our US funded OPEB plans recorded at each fair value hierarchy level:
Level 11
Level 22
Level 33
Total
(millions of Canadian dollars)    
December 31, 2023
Cash and cash equivalents3 — — 3 
Equity securities
US— 36 — 36 
Global— 62 — 62 
Fixed income securities
Government42 3 — 45 
Corporate— 12 — 12 
Alternatives4
— — 29 29 
Total OPEB plan assets at fair value45 113 29 187 
December 31, 2022
Cash and cash equivalents2 — — 2 
Equity securities
US— 34 — 34 
Global— 62 — 62 
Fixed income securities
Government46 5 — 51 
Corporate— 8 — 8 
Alternatives4
— — 28 28 
Total OPEB plan assets at fair value48 109 28 185 
1Level 1 assets include assets with quoted prices in active markets for identical assets.
2Level 2 assets include assets with significant observable inputs.
3Level 3 assets include assets with significant unobservable inputs.
4Alternatives includes investments in private debt, private equity, infrastructure and real estate.

Changes in the net fair value of US funded OPEB plan assets classified as Level 3 in the fair value hierarchy were as follows:
December 31,20232022
(millions of Canadian dollars)
Balance at beginning of year28 22 
Unrealized and realized gains1 4 
Purchases and settlements, net— 2 
Balance at end of year29 28 
EXPECTED BENEFIT PAYMENTS
Year ending December 31,202420252026202720282029-2033
(millions of Canadian dollars)      
Pension
Canada
207 213 219 224 230 1,234 
US87 87 87 86 81 393 
OPEB
Canada
13 13 13 13 13 70 
US16 15 14 13 12 49 
 
EXPECTED EMPLOYER CONTRIBUTIONS
In 2024, we expect to contribute approximately $18 million and $5 million to the Canadian and US pension plans, respectively, and $13 million and $6 million to the Canadian and US OPEB plans, respectively.

RETIREMENT SAVINGS PLANS
In addition to the pension and OPEB plans discussed above, we also have defined contribution employee savings plans available to US employees. Employees may participate in a matching contribution where we match a certain percentage of before-tax employee contributions of up to 6.0% of eligible pay per pay period. For the year ended December 31, 2023, pre-tax employer matching contribution costs were $33 million ($30 million in 2022 and $27 million in 2021).