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Employee Benefits
 12 Months Ended
Oct. 31, 2025
Text Block [Abstract]  
Employee Benefits
27
Employee Benefits
The Bank sponsors a number of employee benefit plans, including pensions (defined benefit and defined contribution) and other benefit plans (post-retirement benefits and other long-term employee benefits) for most of its employees globally. The information presented below relates to the Bank’s principal plans; other plans operated by certain subsidiaries of the Bank are not considered material and are not included in these disclosures.
Global pension plans
The principal pension plans include plans in Canada, U.S., Mexico, UK, Ireland, Jamaica, Trinidad & Tobago and other countries in the Caribbean in which the Bank operates. The most significant pension plans provided by the Bank are in Canada. The Bank has a strong and well-defined governance structure to manage these global obligations. The investment policy for each principal plan is reviewed periodically and all plans are in good standing with respect to legislation and local regulations.
Actuarial valuations for funding purposes for the Bank’s funded pension plans are conducted as required by applicable legislation. The purpose of the actuarial valuation is to determine the funded status of the plans on a going-concern and statutory basis and to determine the required contributions. The plans are funded in accordance with applicable pension legislation and the Bank’s funding policies such that future benefit promises based on plan provisions are well secured. The assumptions used for the funding valuations are set by independent plan actuaries on the basis of the requirements of the local actuarial standards of practice and statutes.
Scotiabank Pension Plan (Canada)
The most significant pension plan is the Scotiabank Pension Plan (SPP), which includes a closed defined benefit (DB) component. Employees hired in Canada on or after May 1, 2018, participate in a defined contribution (DC) component only. As the administrator of the SPP, the Bank has established a well-defined governance structure and policies to maintain compliance with legislative and regulatory requirements under OSFI and the Canada Revenue Agency. The Bank appoints a number of committees to oversee and make decisions related to the administration of the SPP. Certain committees are also responsible for the investment of the assets of the SPP Fund and for monitoring the investment managers and performance.
 
  •  
The Human Capital and Compensation Committee (HCOB) of the Board approves the charter of the Pension Administration and Investment Committee (PAIC), reviews reports, and approves the investment policy. The HCOB also reviews and recommends any amendments to the SPP to the Board of Directors.
  •  
PAIC is responsible for recommending the investment policy to the HCOB, for appointing and monitoring investment managers, and for reviewing auditor and actuary reports. PAIC also monitors the administration of member pension benefits.
  •  
The Scotiabank Master Trust Committee (MTC) invests assets in accordance with the investment policy and all applicable legislation. The MTC assigns specific mandates to investment managers.
  •  
The Capital Accumulation Plans (CAP) Committee is responsible for the administration and investment of the DC component of the SPP including the selection and monitoring of investment options available to DC participants.
Actuarial valuations for funding purposes for the SPP are conducted on an annual basis. The most recent funding valuation was conducted as of November 1, 2024. Contributions are being made to the SPP in accordance with this valuation and are shown in the table in b) below. The assumptions used for the funding valuation are set by independent plan actuaries on the basis of the requirements of the Canadian Institute of Actuaries and applicable regulation.
Other benefit plans
The principal other benefit plans include plans in Canada, U.S., Mexico, Uruguay, UK, Jamaica, Trinidad & Tobago, Colombia and other countries in the Caribbean in which the Bank operates. The most significant other benefit plans provided by the Bank are in Canada.
Key assumptions
The financial information reported below in respect of pension and other benefit plans is based on a number of assumptions. The most significant assumption is the discount rate used to determine the defined benefit obligation, which is set by reference to the yields on high quality corporate bonds that have durations that match the terms of the Bank’s obligations. Separate discount rates are used to determine the annual benefit expense in Canada and the U.S. These rates are determined with reference to the yields on high quality corporate bonds with durations that match the various components of the annual benefit expense. The discount rate used to determine the annual benefit expense for all other plans continues to be the same as the rate used to determine the defined benefit obligation. Other assumptions set by management are determined in reference to market conditions, plan-level experience, best practices and future expectations. 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 in the table in f) below.
 
 
Risk management
The Bank’s defined benefit pension plans and other benefit plans expose the Bank to a number of risks. Some of the more significant risks include interest rate risk, investment risk, longevity risk and health care cost increases, among others. These risks could result in higher defined benefit expense and a higher defined benefit obligation to the extent that:
 
  •  
there is a decline in discount rates; and/or
  •  
plan assets returns are less than expected; and/or
  •  
plan members live longer than expected; and/or
  •  
health care costs are higher than assumed.
In addition to the governance structure and policies in place, the Bank manages risks by regularly monitoring market developments and asset investment performance. The Bank also monitors regulatory and legislative changes along with demographic trends and revisits the investment strategy and/or plan design as warranted.
 
a)
Relative size of plan obligations and assets
 
   
Pension plans
    
Other benefit plans
  
   
Canada
                    
For the year ended October 31, 2025  
SPP
    
Other
    
International
    
Canada
    
International
  
Percentage of total benefit obligations
  
 
72
% 
  
 
16
% 
  
 
12
% 
  
 
50
% 
  
 
50
% 
Percentage of total plan assets
  
 
74
% 
  
 
11
% 
  
 
15
% 
  
 
–
 
  
 
100
% 
Percentage of total benefit expense
(1)
  
 
74
% 
  
 
23
% 
  
 
3
% 
  
 
42
% 
  
 
58
% 
 
   
Pension plans
    
Other benefit plans
  
   
Canada
                    
For the year ended October 31, 2024  
SPP
    
Other
    
International
    
Canada
    
International
  
Percentage of total benefit obligations
     72 %      15 %      13 %      50 %      50 % 
Percentage of total plan assets
     74 %      11 %      15 %      –       100 % 
Percentage of total benefit expense
(1)
     73 %      27 %      –       46 %      54 % 
 
(1)
Excludes
non-routine
benefit expense items such as past service costs, curtailment charges and settlement charges.
 
b)
Cash contributions and payments
The table below shows the cash contributions and payments made by the Bank to its principal plans in 2025, and the prior year.
 
Contributions to the principal plans for the year ended October 31 ($ millions)  
2025
    
2024
  
Defined benefit pension plans (cash contributions to fund the plans, including paying beneficiaries under the unfunded pension arrangements)
    
SPP (excluding defined contribution provision)
  
$
158
 
   $ 69  
All other plans
  
 
64
 
     47  
Other benefit plans (cash contributions mainly in the form of benefit payments to beneficiaries)
  
 
61
 
     62  
Defined contribution pension and other benefit plans (cash contributions)
  
 
206
 
     184  
Defined contribution pension contributions funded from pension plan surplus
  
 
–
 
     (54 ) 
Total contributions
(1)
  
$
 489
 
   $  308  
 
(1)
Based on preliminary estimates, the Bank expects to make contributions of $158 million to the SPP (excluding the
defined contribution
provision), $79 million to all other defined benefit pension plans, $66 million to other benefit plans and $217 million to all defined contribution plans for the year ending October 31, 2026.
 
c)
Funded and unfunded 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)  
2025
    
2024
    
2025
    
2024
  
Benefit obligation
        
Benefit obligation of plans that are wholly unfunded
  
$
346
 
   $ 362    
$
890
 
   $ 930  
Benefit obligation of plans that are wholly or partly funded
  
 
8,886
 
     8,529    
 
264
 
     217  
Funded status
        
Benefit obligation of plans that are wholly or partly funded
  
$
 8,886
 
   $  8,529    
$
264
 
   $ 217  
Fair value of assets
  
 
9,956
 
     9,260    
 
63
 
     84  
Excess (deficit) of fair value of assets over benefit obligation of wholly or partly funded plans
  
$
1,070
 
   $ 731    
$
(201
) 
   $ (133 ) 
Benefit obligation of plans that are wholly unfunded
  
 
346
 
     362    
 
890
 
     930  
Excess (deficit) of fair value of assets over total benefit obligation
  
$
724
 
   $ 369    
$
 (1,091
) 
   $  (1,063 ) 
Effect of asset limitation and minimum funding requirement
  
 
(223
) 
     (208 )   
 
–
 
     –  
Net asset (liability) at end of year
  
$
501
 
   $ 161    
$
(1,091
) 
   $ (1,063 ) 
 
 
d)
Financial information
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)  
2025
    
2024
    
2025
    
2024
  
Change in benefit obligation
        
Benefit obligation at beginning of year
  
$
8,891
 
   $ 7,669    
$
  1,147
 
   $ 1,114  
Current service cost
  
 
244
 
     205    
 
22
 
     20  
Interest cost on benefit obligation
  
 
432
 
     456    
 
70
 
     77  
Employee contributions
  
 
26
 
     27    
 
–
 
     –  
Benefits paid
  
 
(438
) 
     (404 )   
 
(94
)
     (101 ) 
Actuarial loss (gain)
  
 
8
 
     959    
 
55
 
     59  
Past service cost
(1)
  
 
32
 
     –    
 
(63
)
     (1 ) 
Business acquisition
  
 
–
 
     –    
 
(2
)
     –  
Settlements
  
 
–
 
     (2 )   
 
–
 
     –  
Foreign exchange
  
 
37
 
     (19 )   
 
19
 
     (21 ) 
Benefit obligation at end of year
  
$
9,232
 
   $ 8,891    
$
1,154
 
   $ 1,147  
Change in fair value of assets
        
Fair value of assets at beginning of year
  
 
9,260
 
     8,139    
 
84
 
     113  
Interest income on fair value of assets
  
 
467
 
     494    
 
8
 
     9  
Return on plan assets in excess of (less than) interest income on fair value of assets
  
 
421
 
     955    
 
(1
) 
     8  
Employer contributions
  
 
222
 
     62    
 
61
 
     62  
Employee contributions
  
 
26
 
     27    
 
–
 
     –  
Benefits paid
  
 
(438
) 
     (404 )   
 
(94
)
     (101 ) 
Administrative expenses
  
 
(12
) 
     (13 )   
 
–
 
     –  
Business acquisition
  
 
–
 
     –    
 
–
 
     –  
Settlements
  
 
–
 
     (3 )   
 
–
 
     –  
Foreign exchange
  
 
10
 
     3    
 
5
 
     (7 ) 
Fair value of assets at end of year
  
$
 9,956
 
   $ 9,260    
$
63
 
   $ 84  
Funded status
        
Excess (deficit) of fair value of assets over benefit obligation at end of year
  
 
724
 
     369    
 
(1,091
) 
     (1,063 ) 
Effect of asset limitation and minimum funding requirement
(2)
  
 
(223
) 
     (208 )   
 
–
 
     –  
Net asset (liability) at end of year
  
$
501
 
   $ 161    
$
(1,091
) 
   $ (1,063 ) 
Recorded in:
        
Other assets in the Bank’s Consolidated Statement of Financial Position
  
 
1,036
 
     684    
 
1
 
     1  
Other liabilities in the Bank’s Consolidated Statement of Financial Position
  
 
(535
) 
     (523 )   
 
(1,092
) 
     (1,064 ) 
Net asset (liability) at end of year
  
$
501
 
   $ 161    
$
(1,091
) 
   $  (1,063 ) 
Annual benefit expense
        
Current service cost
  
 
244
 
     205    
 
22
 
     20  
Net interest expense (income)
  
 
(13
) 
     (32 )   
 
62
 
     68  
Administrative expenses
  
 
12
 
     12    
 
–
 
     –  
Past service costs
(1)
  
 
32
 
     –    
 
(63
) 
     (1 ) 
Amount of settlement (gain) loss recognized
  
 
–
 
     1    
 
–
 
     –  
Remeasurement of other long-term benefits
  
 
–
 
     –    
 
2
 
     6  
Benefit expense (income) recorded in the Consolidated Statement of Income (A)
  
$
275
 
   $ 186    
$
23
 
   $ 93  
Defined contribution benefit expense (B)
  
$
205
 
   $ 183    
$
1
 
   $ 1  
Remeasurements
        
Return on plan assets in excess of interest income on fair value of assets
  
 
421
 
     955    
 
(1
) 
     8  
Actuarial (loss) gain on benefit obligation
  
 
(8
) 
     (959 )   
 
(53
) 
     (53 ) 
Change in the asset limitation
  
 
6
 
     (146 )   
 
–
 
     –  
Gains (losses) recorded in OCI (C)
  
$
419
 
   $ (150 )   
$
(54
) 
   $ (45 ) 
Total benefit cost (A + B - C)
  
$
61
 
   $ 519    
$
78
 
   $ 139  
Additional details on actual return on assets and actuarial gains and (losses)
        
Actual (return) on assets (net of administrative expenses)
  
$
(876
) 
   $  (1,436 )   
$
(7
) 
   $ (19 ) 
Actuarial gains and (losses) from changes in demographic assumptions
  
 
4
 
     7    
 
(11
) 
     –  
Actuarial gains and (losses) from changes in financial assumptions
  
 
(16
) 
     (952 )   
 
(47
) 
     (53 ) 
Actuarial gains and (losses) from changes in experience
  
 
4
 
     (14 )   
 
3
 
     (6 ) 
Additional details on fair value of pension plan assets invested
        
In Scotiabank securities (stock, bonds)
  
 
54
 
     67    
 
–
 
     –  
In property occupied by Scotiabank
  
 
3
 
     4    
 
–
 
     –  
Change in asset ceiling/(onerous liability)
        
Asset ceiling /onerous liability at end of prior year
  
 
208
 
     55    
 
–
 
     –  
Interest expense
  
 
22
 
     6    
 
–
 
     –  
Remeasurements
  
 
(6
) 
     146    
 
–
 
     –  
Foreign exchange
  
 
(1
) 
     1    
 
–
 
     –  
Asset ceiling /onerous liability at end of year
  
$
223
 
   $ 208    
$
–
 
   $ –  
 
(1)
Other benefit plans past service costs relate to certain post-retirement plan amendments.
(2)
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.
 
 
e)
Maturity profile of the defined benefit obligation
The weighted average duration of the total benefit obligation at October 31, 2025 is 13.4 years (2024 – 13.6 years).
 
   
Pension plans
    
Other benefit plans
  
For the year ended October 31  
2025
    
2024
    
2025
    
2024
  
Disaggregation of the benefit obligation (%)
        
Canada
        
Active members
  
 
51
% 
     51 %   
 
3
% 
     3 % 
Inactive and retired members
  
 
49
% 
     49 %   
 
97
% 
     97 % 
Total
  
 
100
% 
     100 %   
 
100
% 
     100 % 
Mexico
        
Active members
  
 
28
% 
     28 %   
 
28
% 
     32 % 
Inactive and retired members
  
 
72
% 
     72 %   
 
72
% 
     68 % 
Total
  
 
100
% 
     100 %   
 
100
% 
     100 % 
United States
        
Active members
  
 
28
% 
     31 %   
 
32
% 
     43 % 
Inactive and retired members
  
 
72
% 
     69 %   
 
68
% 
     57 % 
Total
  
 
 100
% 
      100 %   
 
 100
% 
      100 % 
 
f)
Key assumptions (%)
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  
2025
    
2024
    
2025
    
2024
  
Benefit obligation at end of year
        
Discount rate – all plans
  
 
5.17
% 
     5.22 %   
 
6.34
% 
     6.51 % 
Discount rate – Canadian plans only
  
 
4.80
% 
     4.80 %   
 
4.49
% 
     4.69 % 
Rate of increase in future compensation
(1)
  
 
3.85
% 
     3.85 %   
 
4.48
% 
     4.37 % 
Benefit expense (income) for the year
        
Discount rate – All plans
        
Discount rate for defined benefit obligations
  
 
5.22
% 
     6.13 %   
 
6.51
% 
     7.36 % 
Discount rate for net interest cost
  
 
4.96
% 
     6.13 %   
 
6.35
% 
     7.36 % 
Discount rate for service cost
  
 
5.28
% 
     6.06 %   
 
6.62
% 
     7.31 % 
Discount rate for interest on service cost
  
 
5.10
% 
     6.07 %   
 
6.53
% 
     7.27 % 
Discount rate – Canadian plans only
        
Discount rate for defined benefit obligations
  
 
4.80
% 
     5.70 %   
 
4.69
% 
     5.80 % 
Discount rate for net interest cost
  
 
4.51
% 
     5.70 %   
 
4.42
% 
     5.80 % 
Discount rate for service cost
  
 
4.90
% 
     5.60 %   
 
4.87
% 
     5.62 % 
Discount rate for interest on service cost
  
 
4.70
% 
     5.61 %   
 
4.69
% 
     5.53 % 
Rate of increase in future compensation
(1)
  
 
3.85
% 
     3.96 %   
 
4.37
% 
     4.61 % 
Health care cost trend rates at end of year
        
Initial rate
  
 
n/a
 
     n/a    
 
5.62
% 
     5.72 % 
Ultimate rate
  
 
n/a
 
     n/a    
 
4.76
% 
     4.71 % 
Year ultimate rate reached
  
 
n/a
 
     n/a    
 
2041
 
     2041  
Assumed life expectancy in Canada (years)
        
Life expectancy at 65 for current pensioners – male
  
 
23.6
 
     23.6    
 
23.6
 
     23.6  
Life expectancy at 65 for current pensioners – female
  
 
24.7
 
     24.7    
 
24.7
 
     24.7  
Life expectancy at 65, for future pensioners currently aged 45 – male
  
 
24.5
 
     24.5    
 
24.5
 
     24.5  
Life expectancy at 65, for future pensioners currently aged 45 – female
  
 
25.6
 
     25.6    
 
25.6
 
     25.6  
Assumed life expectancy in Mexico (years)
        
Life expectancy at 65 for current pensioners – male
  
 
21.6
 
     21.6    
 
21.6
 
     21.6  
Life expectancy at 65 for current pensioners – female
  
 
24.0
 
     24.0    
 
24.0
 
     24.0  
Life expectancy at 65, for future pensioners currently aged 45 – male
  
 
21.7
 
     21.7    
 
21.7
 
     21.7  
Life expectancy at 65, for future pensioners currently aged 45 – female
  
 
24.0
 
     24.0    
 
24.0
 
     24.0  
Assumed life expectancy in United States (years)
        
Life expectancy at 65 for current pensioners – male
  
 
22.1
 
     22.0    
 
22.1
 
     22.0  
Life expectancy at 65 for current pensioners – female
  
 
23.5
 
     23.5    
 
23.5
 
     23.5  
Life expectancy at 65, for future pensioners currently aged 45 – male
  
 
23.5
 
     23.4    
 
23.5
 
     23.4  
Life expectancy at 65, for future pensioners currently aged 45 – female
  
 
24.9
 
     24.8    
 
24.9
 
     24.8  
 
(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.
 
 
g)
Sensitivity analysis
The sensitivity analysis represents the impact of a change in a single assumption with other assumptions left unchanged. For purposes of the sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation recognized in the statement of financial position.
 
   
Pension plans
    
Other benefit plans
  
For the year ended October 31, 2025 ($ millions)  
Benefit
obligation
    
Benefit
expense
    
Benefit
obligation
    
Benefit
expense
  
Impact of the following changes:
        
1% decrease in discount rate
  
$
 1,382
 
  
$
 88
 
  
$
 124
 
  
$
  5
 
0.25% increase in rate of increase in future compensation
  
 
73
 
  
 
5
 
  
 
–
 
  
 
–
 
1% increase in health care cost trend rate
  
 
n/a
 
  
 
n/a
 
  
 
97
 
  
 
13
 
1% decrease in health care cost trend rate
  
 
n/a
 
  
 
n/a
 
  
 
(81
) 
  
 
(10
) 
1 year increase in Canadian life expectancy
  
 
160
 
  
 
10
 
  
 
18
 
  
 
1
 
1 year increase in Mexican life expectancy
  
 
3
 
  
 
–
 
  
 
3
 
  
 
–
 
1 year increase in the United States life expectancy
  
 
2
 
  
 
–
 
  
 
1
 
  
 
–
 
 
h)
Assets
The Bank’s principal pension plans’ assets are generally invested with the long-term objective of maximizing overall expected returns, at an acceptable level of risk relative to the benefit obligation. A key factor in managing long-term investment risk is asset mix. Investing the pension assets across different asset classes and geographic regions helps to mitigate risk and to minimize the impact of declines in any single asset class, particular region or type of investment. Investment managers – including related-party managers – are typically hired and assigned specific mandates within each asset class.
Pension plan asset mix guidelines are set for the long term and are documented in each plan’s investment policy. Asset mix policy typically also reflects the nature of the plan’s benefit obligations. Legislation places certain restrictions on asset mix – for example, there are usually limits on concentration in any one investment. Other concentration and quality limits are also set forth in the investment policies. Derivatives cannot be used without specific authorization; currently, the main uses of derivatives are for duration management and currency hedging. Asset mix guidelines are reviewed at least once each year, and adjusted, where appropriate, based on market conditions and opportunities. However, large asset class shifts are not common, and typically reflect a change in the pension plan’s situation (e.g. plan amendments) and/or in the investment strategy. Actual asset mix is reviewed regularly and rebalancing back to target asset mix is considered – as needed – generally on a quarterly basis. The Bank’s other benefit plans are generally not funded, with the exception of certain programs in Mexico.
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
2025
    
Actual
2024
    
Actual
2025
    
Actual
2024
  
Cash and cash equivalents
  
 
1
% 
     2 %   
 
–
% 
     – % 
Equity investments
        
Quoted in an active market
  
 
44
% 
     43 %   
 
15
% 
     12 % 
Non quoted
  
 
5
% 
     5 %   
 
–
% 
     – % 
 
 
49
% 
     48 %   
 
15
% 
     12 % 
Fixed income investments
        
Quoted in an active market
  
 
6
% 
     10 %   
 
83
% 
     87 % 
Non quoted
  
 
33
% 
     29 %   
 
–
% 
     – % 
 
 
39
% 
     39 %   
 
83
% 
     87 % 
Property
        
Quoted in an active market
  
 
–
% 
     – %   
 
2
% 
     1 % 
Non quoted
  
 
1
% 
     1 %   
 
–
% 
     – % 
 
 
1
% 
     1 %   
 
2
% 
     1 % 
Other
        
Quoted in an active market
  
 
–
% 
     – %   
 
–
% 
     – % 
Non quoted
  
 
10
% 
     10 %   
 
–
% 
     – % 
 
 
10
% 
     10 %   
 
–
% 
     – % 
Total
  
 
100
% 
     100 %   
 
100
% 
     100 % 
 
Target asset allocation at October 31, 2025
Asset category %
  
Pension plans
    
Other benefit plans
  
Cash and cash equivalents
  
 
–
% 
  
 
–
% 
Equity investments
  
 
41
% 
  
 
15
% 
Fixed income investments
  
 
44
% 
  
 
83
% 
Property
  
 
1
% 
  
 
2
% 
Other
  
 
14
% 
  
 
–
% 
Total
  
 
100
% 
  
 
100
%