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Employee Benefits (Tables)
 12 Months Ended
Oct. 31, 2021
Text Block [Abstract]  
Schedule of Relative Size of Plan Obligation and Assets
 
a)
Relative size of plan obligations and assets
 
   
Pension plans
    
Other benefit plans
  
   
Canada
                    
For the year ended October 31, 2021  
SPP
    
Other
    
International
    
Canada
    
International
  
Percentage of total benefit obligations
  
 
72
% 
  
 
15
% 
  
 
13
% 
  
 
56
% 
  
 
44
% 
Percentage of total plan assets
  
 
75
% 
  
 
10
% 
  
 
15
% 
  
 
0
% 
  
 
100
% 
Percentage of total benefit expense
(1)
  
 
78
% 
  
 
21
% 
  
 
1
% 
  
 
31
% 
  
 
69
% 
 
   
Pension plans
    
Other benefit plans
  
   
Canada
                    
For the year ended October 31, 2020  
SPP
    
Other
    
International
    
Canada
    
International
  
Percentage of total benefit obligations
     72 %      15 %      13 %      56 %      44 % 
Percentage of total plan assets
     72 %      10 %      18 %      0 %      100 % 
Percentage of total benefit expense
(1)
     78 %      20 %      2 %      36 %      64 % 
 
(1)
Excludes non-routine benefit expense items such as past service costs, curtailment charges and settlement charges.
Summary of Cash Contributions and Payments made by Bank to Principal Plans
The table below shows the cash contributions and payments made by the Bank to its principal plans in 2021, and the two prior years.
 
Contributions to the principal plans for the year ended October 31 ($ millions)  
2021
    
2020
    
2019
  
Defined benefit pension plans (cash contributions to fund the plans, including paying beneficiaries under the unfunded pension arrangements)
                        
SPP (excluding DC provision)
  
$
320
 
   $ 218     $ 196  
All other plans
  
 
85
 
     158       53  
Other benefit plans (cash contributions mainly in the form of benefit payments to beneficiaries)
  
 
73
 
     53       78  
Defined contribution pension and other benefit plans (cash contributions)
  
 
103
 
     90       69  
Total contributions
(1)
  
$
  581
 
   $   519     $   396  
 
(1)
Based on preliminary estimates, the Bank expects to make contributions of $295 to the SPP (excluding the DC provision), $76 to all other defined benefit pension plans, $65 to other benefit plans and $114 to all defined contribution plans for the year ending October 31, 2022.
Summary of Excess (deficit) of Fair Value of Assets Over Benefit Obligation for Wholly Unfunded Plans and Wholly or Partly Funded Plans
The excess (deficit) of the fair value of assets over the benefit obligation at the end of the year includes the following amounts for plans that are wholly unfunded and plans that are wholly or partly funded.
 
   
Pension plans
    
Other benefit plans
  
As at October 31 ($ millions)  
2021
    
2020
    
2019
    
2021
    
2020
    
2019
  
Benefit obligation
                                                
Benefit obligation of plans that are wholly unfunded
  
$
438
 
   $ 476     $ 459    
$
1,058
 
   $ 1,139     $ 1,157  
Benefit obligation of plans that are wholly or partly funded
  
 
9,146
 
     9,873       9,248    
 
244
 
     281       300  
             
Funded status
                                                
Benefit obligation of plans that are wholly or partly funded
  
$
  9,146
 
   $   9,873     $   9,248    
$
244
 
   $ 281     $ 300  
Fair value of assets
  
 
9,464
 
     8,541       8,439    
 
143
 
     158       193  
Excess (deficit) of fair value of assets over benefit obligation of wholly or partly funded plans
  
$
318
 
   $ (1,332 )    $ (809 )   
$
(101
) 
   $ (123 )    $ (107 ) 
Benefit obligation of plans that are wholly unfunded
  
 
438
 
     476       459    
 
1,058
 
     1,139       1,157  
Excess (deficit) of fair value of assets over total benefit obligation
  
$
(120
) 
   $ (1,808 )    $ (1,268 )   
$
  (1,159
 )   $   (1,262 )    $   (1,264 ) 
Effect of asset limitation and minimum funding requirement
  
 
(85
) 
     (134 )      (2 )   
 
–
 
     –       –  
Net asset (liability) at end of year
  
$
(205
) 
   $ (1,942 )    $ (1,270 )   
$
(1,159
) 
   $ (1,262 )    $ (1,264 ) 
Summary of Financial Information related to Principal Plans
The following tables present financial information related to the Bank’s principal plans.
 
   
Pension plans
    
Other benefit plans
  
For the year ended October 31 ($ millions)  
2021
    
2020
    
2019
    
2021
    
2020
    
2019
  
Change in benefit obligation
                                                
Benefit obligation at beginning of year
  
$
  10,349
 
   $ 9,707     $ 8,268    
$
1,420
 
   $ 1,457     $ 1,374  
Current service cost
  
 
339
 
     369       291    
 
24
 
     28       26  
Interest cost on benefit obligation
  
 
269
 
     290       331    
 
56
 
     62       72  
Employee contributions
  
 
24
 
     26       25    
 
–
 
     –       –  
Benefits paid
  
 
(450
) 
     (467 )      (770 )   
 
(81
) 
     (75 )      (96 ) 
Actuarial loss (gain)
  
 
(857
) 
     531       1,590    
 
(63
) 
     (17 )      120  
Past service cost
  
 
37
 
     –       7    
 
(1
) 
     (7 )      (9 ) 
Business acquisition
  
 
2
 
     –       (4 )   
 
(2
) 
     (6 )      1  
Settlements
  
 
(34
) 
     (115 )      (2 )   
 
(14
) 
     –       (45 ) 
Foreign exchange
  
 
(95
) 
     8       (29 )   
 
(37
) 
     (22 )      14  
Benefit obligation at end of year
  
$
9,584
 
   $   10,349     $   9,707    
$
1,302
 
   $ 1,420     $ 1,457  
             
Change in fair value of assets
                                                
Fair value of assets at beginning of year
  
 
8,541
 
     8,439       8,037    
 
158
 
     193       240  
Interest income on fair value of assets
  
 
257
 
     268       331    
 
13
 
     15       23  
Return on plan assets in excess of (less than) interest income on fair value of assets
  
 
854
 
     46       634    
 
–
 
     (13 )      (16 ) 
Employer contributions
  
 
405
 
     376       249    
 
73
 
     53       78  
Employee contributions
  
 
24
 
     26       25    
 
–
 
     –       –  
Benefits paid
  
 
(450
) 
     (467 )      (770 )   
 
(81
) 
     (75 )      (96 ) 
Administrative expenses
  
 
(16
) 
     (14 )      (17 )   
 
–
 
     –       –  
Business acquisition
  
 
–
 
     –       –    
 
–
 
     –       –  
Settlements
  
 
(34
) 
     (105 )      (2 )   
 
(14
) 
     –       (46 ) 
Foreign exchange
  
 
(117
) 
     (28 )      (48 )   
 
(6
) 
     (15 )      10  
Fair value of assets at end of year
  
$
9,464
 
   $ 8,541     $ 8,439    
$
143
 
   $ 158     $ 193  
             
Funded status
                                                
Excess (deficit) of fair value of assets over benefit obligation at end of year
  
 
(120
) 
     (1,808 )      (1,268 )   
 
(1,159
) 
     (1,262 )      (1,264 ) 
Effect of asset limitation and minimum funding requirement
(1)
  
 
(85
) 
     (134 )      (2 )   
 
–
 
     –       –  
Net asset (liability) at end of year
  
$
(205
) 
   $ (1,942 )    $ (1,270 )   
$
(1,159
) 
   $ (1,262 )    $ (1,264 ) 
Recorded in:
                                                
Other assets in the Bank’s Consolidated Statement of Financial Position
  
 
456
 
     260       422    
 
–
 
     –       –  
Other liabilities in the Bank’s Consolidated Statement of Financial Position
  
 
(661
) 
     (2,202 )      (1,692 )   
 
(1,159
) 
     (1,262 )      (1,264 ) 
Net asset (liability) at end of year
  
$
(205
) 
   $ (1,942 )      $  (1,270 )   
 
$  (1,159)
 
     $  (1,262 )      $  (1,264 ) 
             
Annual benefit expense
                                                
Current service cost
  
 
339
 
     369       291    
 
24
 
     28       26  
Net interest expense (income)
  
 
23
 
     22       –    
 
43
 
     47       49  
Administrative expenses
  
 
14
 
     17       14    
 
–
 
     –       –  
Past service costs
  
 
37
 
     –       7    
 
(1
) 
     (7 )      (9 ) 
Amount of settlement (gain) loss recognized
  
 
–
 
     (10 )      –    
 
–
 
     –       1  
Remeasurement of other long-term benefits
  
 
–
 
     –       –    
 
(6
) 
     –       (5 ) 
Benefit expense (income) recorded in the Consolidated Statement of Income
  
$
413
 
   $ 398     $ 312    
$
60
 
   $ 68     $ 62  
Defined contribution benefit expense
  
$
102
 
   $ 89     $ 66    
$
1
 
   $ 1     $ 3  
             
Remeasurements
                                                
(Return) on plan assets in excess of interest income on fair value of assets
  
 
(854
) 
     (46 )      (634 )   
 
–
 
     13       17  
Actuarial loss (gain) on benefit obligation
  
 
(857
) 
     531       1,590    
 
(57
) 
     (17 )      124  
Change in the asset limitation
  
 
(47
) 
     139       –    
 
–
 
     –       –  
Remeasurements recorded in OCI
  
$
(1,758
) 
   $ 624     $ 956    
$
(57
) 
   $ (4 )    $ 141  
Total benefit cost
  
$
(1,243
) 
   $ 1,111     $ 1,334    
$
4
 
   $ 65     $ 206  
Additional details on actual return on assets and actuarial (gains) and losses
                                                
Actual return on assets (net of administrative expenses)
  
$
1,095
 
   $ 300     $ 948    
$
13
 
   $ 2     $ 7  
Actuarial (gains) and losses from changes in demographic assumptions
  
 
8
 
     (65 )      (5 )   
 
8
 
     (53 )      (35 ) 
Actuarial (gains) and losses from changes in financial assumptions
  
 
(973
) 
     524       1,496    
 
(63
) 
     49       150  
Actuarial (gains) and losses from changes in experience
  
 
108
 
     72       99    
 
(8
) 
     (13 )      5  
             
Additional details on fair value of pension plan assets invested
                                                
In Scotiabank securities (stock, bonds)
  
 
60
 
     293       392    
 
–
 
     21       –  
In property occupied by Scotiabank
  
 
4
 
     4       4    
 
–
 
     –       –  
             
Change in asset ceiling/onerous liability
                                                
Asset ceiling /onerous liability at end of prior year
  
 
134
 
     2       2    
 
–
 
     –       –  
Interest expense
  
 
11
 
     –       –    
 
–
 
     –       –  
Remeasurements
  
 
(47
) 
     139       –    
 
–
 
     –       –  
Foreign exchange
  
 
(13
) 
     (7 )      –    
 
–
 
     –       –  
Asset ceiling /onerous liability at end of year
  
$
  85
 
   $ 134     $ 2    
$
–
 
   $ –     $ –  
 
(1)
The recognized asset is limited by the present value of economic benefits available from a reduction in future contributions to a plan and from the ability to pay plan expenses from the fund.
Summary of Disaggregation of Defined Benefit Obligation
The weighted average duration of the total benefit obligation at October 31, 2021 is 15.0 years (2020 – 15.9 years, 2019 – 15.7 years).
 
   
Pension plans
    
Other benefit plans
  
For the year ended October 31  
2021
    
2020
    
2019
    
2021
    
2020
    
2019
  
Disaggregation of the benefit obligation (%)
                                                
Canada
                                                
Active members
  
 
53
% 
     55 %      53 %   
 
4
% 
     6 %      6 % 
Inactive and retired members
  
 
47
% 
     45 %      47 %   
 
96
% 
     94 %      94 % 
Total
  
 
100
% 
     100 %      100 %   
 
100
% 
     100 %      100 % 
Mexico
                                                
Active members
  
 
21
% 
     25 %      25 %   
 
43
% 
     49 %      49 % 
Inactive and retired members
  
 
79
% 
     75 %      75 %   
 
57
% 
     51 %      51 % 
Total
  
 
100
% 
     100 %      100 %   
 
100
% 
     100 %      100 % 
United States
                                                
Active members
  
 
45
% 
     40 %      42 %   
 
40
% 
     34 %      38 % 
Inactive and retired members
  
 
55
% 
     60 %      58 %   
 
60
% 
     66 %      62 % 
Total
  
 
100
% 
     100 %      100 %   
 
100
% 
     100 %      100 % 
Summary of Key Weighted-Average Assumptions used by Bank for Measurement of Benefit Obligation and Benefit Expense for All of Bank's Principal Plans
The key weighted-average assumptions used by the Bank for the measurement of the benefit obligation and benefit expense for all of the Bank’s principal plans are summarized as follows:
 
   
Pension plans
    
Other benefit plans
  
For the year ended October 31  
2021
    
2020
    
2019
    
2021
    
2020
    
2019
  
Benefit obligation at end of year
                                                
Discount rate – all plans
  
 
3.73
% 
     3.08 %      3.32 %   
 
4.94
% 
     4.44 %      4.71 % 
Discount rate – Canadian plans only
  
 
3.50
% 
     2.80 %      3.10 %   
 
3.28
% 
     2.57 %      2.98 % 
Rate of increase in future compensation
(1)
  
 
2.97
% 
     2.74 %      2.70 %   
 
4.30
% 
     4.31 %      3.86 % 
Benefit expense (income) for the year
                                                
Discount rate – All plans
                                                
Discount rate for defined benefit obligations
  
 
3.30
% 
     3.32 %      4.35 %   
 
4.44
% 
     4.71 %      5.54 % 
Discount rate for net interest cost
  
 
2.78
% 
     3.06 %      4.09 %   
 
4.13
% 
     4.54 %      5.37 % 
Discount rate for service cost
  
 
3.45
% 
     3.38 %      4.41 %   
 
4.71
% 
     4.83 %      5.78 % 
Discount rate for interest on service cost
  
 
2.96
% 
     3.20 %      4.14 %   
 
4.54
% 
     4.72 %      5.67 % 
Discount rate – Canadian plans only
                                                
Discount rate for defined benefit obligations
  
 
3.05
% 
     3.10 %      4.10 %   
 
2.57
% 
     2.98 %      3.96 % 
Discount rate for net interest cost
  
 
2.47
% 
     2.80 %      3.80 %   
 
2.11
% 
     2.71 %      3.70 % 
Discount rate for service cost
  
 
3.16
% 
     3.10 %      4.10 %   
 
2.94
% 
     3.08 %      4.07 % 
Discount rate for interest on service cost
  
 
2.65
% 
     2.90 %      3.80 %   
 
2.66
% 
     2.89 %      3.88 % 
Rate of increase in future compensation
(1)
  
 
2.74
% 
     2.70 %      2.80 %   
 
4.31
% 
     3.86 %      3.83 % 
Health care cost trend rates at end of year
                                                
Initial rate
  
 
n/a
 
     n/a       n/a    
 
5.68
% 
     5.75 %      5.80 % 
Ultimate rate
  
 
n/a
 
     n/a       n/a    
 
4.75
% 
     4.72 %      4.69 % 
Year ultimate rate reached
  
 
n/a
 
     n/a       n/a    
 
2040
 
     2040       2040  
Assumed life expectancy in Canada (years)
                                                
Life expectancy at 65 for current pensioners – male
  
 
23.5
 
     23.4       23.4    
 
23.5
 
     23.4       23.4  
Life expectancy at 65 for current pensioners – female
  
 
24.6
 
     24.5       24.5    
 
24.6
 
     24.5       24.5  
Life expectancy at 65, for future pensioners currently aged 45 – male
  
 
24.4
 
     24.4       24.3    
 
24.4
 
     24.4       24.3  
Life expectancy at 65, for future pensioners currently aged 45 – female
  
 
25.5
 
     25.4       25.3    
 
25.5
 
     25.4       25.3  
Assumed life expectancy in Mexico (years)
                                                
Life expectancy at 65 for current pensioners – male
  
 
21.5
 
     21.3       21.3    
 
21.5
 
     21.3       21.3  
Life expectancy at 65 for current pensioners – female
  
 
23.9
 
     23.8       23.8    
 
23.9
 
     23.8       23.8  
Life expectancy at 65, for future pensioners currently aged 45 – male
  
 
21.6
 
     21.7       21.7    
 
21.6
 
     21.7       21.7  
Life expectancy at 65, for future pensioners currently aged 45 – female
  
 
24.0
 
     24.0       24.0    
 
24.0
 
     24.0       24.0  
Assumed life expectancy in United States (years)
                                                
Life expectancy at 65 for current pensioners – male
  
 
21.8
 
     21.7       21.9    
 
21.8
 
     21.7       21.9  
Life expectancy at 65 for current pensioners – female
  
 
23.3
 
     23.1       23.3    
 
23.3
 
     23.1       23.3  
Life expectancy at 65, for future pensioners currently aged 45 – male
  
 
23.2
 
     23.1       23.4    
 
23.2
 
     23.1       23.4  
Life expectancy at 65, for future pensioners currently aged 45 – female
  
 
24.6
 
     24.5       24.9    
 
24.6
 
     24.5       24.9  
 
(1)
The weighted-average rates of increase in future compensation shown for other benefit plans do not include Canadian flexible post-retirement benefits plans established in fiscal 2005, as they are not impacted by future compensation increases.
Summary of Sensitivity Analysis of Key Assumptions Plans
 
   
Pension plans
    
Other benefit plans
  
For the year ended October 31, 2021 ($ millions)  
Benefit
obligation
    
Benefit
expense
    
Benefit
obligation
    
Benefit
expense
  
Impact of the following changes:
                                
1% decrease in discount rate
  
$
  1,626
 
  
$
  90
 
  
$
   177
 
  
$
   4
 
0.25% increase in rate of increase in future compensation
  
 
82
 
  
 
5
 
  
 
1
 
  
 
–
 
1% increase in health care cost trend rate
  
 
n/a
 
  
 
n/a
 
  
 
120
 
  
 
12
 
1% decrease in health care cost trend rate
  
 
n/a
 
  
 
n/a
 
  
 
(98
) 
  
 
(9
) 
1 year increase in Canadian life expectancy
  
 
182
 
  
 
10
 
  
 
22
 
  
 
1
 
1 year increase in Mexican life expectancy
  
 
3
 
  
 
–
 
  
 
4
 
  
 
–
 
1 year increase in the United States life expectancy
  
 
4
 
  
 
–
 
  
 
4
 
  
 
–
 
Summary of weighted-average actual and target asset allocations
The tables below show the weighted-average actual and target asset allocations for the Bank’s principal plans at October 31, by asset category.
 
   
Pension plans
    
Other benefit plans
  
Asset category %  
Actual
2021
    
Actual
2020
    
Actual
2019
    
Actual
2021
    
Actual
2020
    
Actual
2019
  
Cash and cash equivalents
  
 
4
% 
     2 %      3 %   
 
–
% 
     1 %      1 % 
Equity investments
                                                
Quoted in an active market
  
 
34
% 
     29 %      33 %   
 
42
% 
     40 %      42 % 
Non quoted
  
 
11
% 
     10 %      10 %   
 
–
% 
     – %      – % 
   
 
45
% 
     39 %      43 %   
 
42
% 
     40 %      42 % 
Fixed income investments
                                                
Quoted in an active market
  
 
6
% 
     5 %      13 %   
 
58
% 
     59 %      57 % 
Non quoted
  
 
35
% 
     41 %      30 %   
 
–
% 
     – %      – % 
   
 
41
% 
     46 %      43 %   
 
58
% 
     59 %      57 % 
Property
                                                
Quoted in an active market
  
 
–
% 
     – %      – %   
 
–
% 
     – %      – % 
Non quoted
  
 
1
% 
     1 %      1 %   
 
–
% 
     – %      – % 
   
 
1
% 
     1 %      1 %   
 
–
% 
     – %      – % 
Other
                                                
Quoted in an active market
  
 
–
% 
     3 %      – %   
 
–
% 
     – %      – % 
Non quoted
  
 
9
% 
     9 %      10 %   
 
–
% 
     – %      – % 
   
 
9
% 
     12 %      10 %   
 
–
% 
     – %      – % 
Total
  
 
100
% 
     100 %      100 %   
 
100
% 
     100 %      100 % 
 
Target asset allocation at October 31, 2021
Asset category %
  
Pension plans
    
Other benefit plans
  
Cash and cash equivalents
  
 
–
% 
  
 
–
% 
Equity investments
  
 
42
% 
  
 
44
% 
Fixed income investments
  
 
44
% 
  
 
56
% 
Property
  
 
1
% 
  
 
–
% 
Other
  
 
13
% 
  
 
–
% 
Total
  
 
100
% 
  
 
100
%