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Employee retirement benefits (Tables)

12 Months Ended

Dec. 31, 2022

The benefit obligations and plan assets associated with the company’s defined benefit plans are measured on December 31.


	Pension benefits		Other postretirement benefits
	2022	2021	2022	2021
Assumptions used to determine benefit obligations at December 31 (percent)
Discount rate	5.10	3.00	5.10	3.00
Long-term rate of compensation increase	4.00	4.00	4.00	4.00

millions of Canadian dollars
Change in benefit obligation
Benefit obligation at January 1	9,850	10,716	818	873
Service cost	280	324	23	28
Interest cost	295	271	24	22
Actuarial loss (gain) (a)	(2,528)	(925)	(248)	(83)
Benefits paid (b)	(523)	(536)	(28)	(22)
Benefit obligation at December 31	7,374	9,850	589	818

Accumulated benefit obligation at December 31	6,820	8,885
(a)Actuarial loss (gain) primarily driven by changes in the year-end discount rate and salary experience. (b)Benefit payments for funded and unfunded plans.


	Pension benefits		Other postretirement benefits
millions of Canadian dollars	2022	2021	2022	2021
Change in plan assets
Fair value at January 1	9,440	9,426
Actual return (loss) gain	(1,594)	319
Company contributions	174	164
Benefits paid (a)	(479)	(469)
Fair value at December 31	7,541	9,440

Plan assets in excess of (less than) projected benefit obligation at December 31
Funded plans	543	89
Unfunded plans	(376)	(499)	(589)	(818)
Total (b)	167	(410)	(589)	(818)
(a)Benefit payments for funded plans only. (b)Fair value of assets less projected benefit obligation shown above.


	Pension benefits		Other postretirement benefits
millions of Canadian dollars	2022	2021	2022	2021
Amounts recorded in the Consolidated balance sheet consist of:
Other assets, including intangibles - net	543	190	—	—
Current liabilities	(35)	(26)	(28)	(30)
Other long-term obligations	(341)	(574)	(561)	(788)
Total recorded	167	(410)	(589)	(818)

Amounts recorded in accumulated other comprehensive income consist of:
Net actuarial loss (gain)	666	1,272	(84)	173
Prior service cost	235	252	—	—
Total recorded in accumulated other comprehensive income, before-tax	901	1,524	(84)	173


	Pension benefits			Other postretirement benefits
	2022	2021	2020	2022	2021	2020
Assumptions used to determine net periodic benefit cost for years ended December 31 (percent)
Discount rate	3.00	2.50	3.10	3.00	2.50	3.10
Long-term rate of return on funded assets	4.30	4.50	4.50	—	—	—
Long-term rate of compensation increase	4.00	4.00	4.50	4.00	4.00	4.50

millions of Canadian dollars
Components of net periodic benefit cost
Service cost	280	324	305	23	28	24
Interest cost	295	271	308	24	22	24
Expected return on plan assets	(412)	(427)	(391)	—	—	—
Amortization of prior service cost	17	17	14	—	—	—
Amortization of actuarial loss (gain)	84	143	153	9	16	13
Net periodic benefit cost	264	328	389	56	66	61

Changes in amounts recorded in accumulated other comprehensive income
Net actuarial loss (gain)	(522)	(817)	129	(248)	(83)	152
Amortization of net actuarial (loss) gain included in net periodic benefit cost	(84)	(143)	(153)	(9)	(16)	(13)
Amortization of prior service cost included in net periodic benefit cost	(17)	(17)	(14)	—	—	—
Total recorded in other comprehensive income	(623)	(977)	(38)	(257)	(99)	139
Total recorded in net periodic benefit cost and other comprehensive income, before-tax	(359)	(649)	351	(201)	(33)	200

A summary of the change in accumulated other comprehensive income is shown in the table below:


	Total pension and other postretirement benefits
millions of Canadian dollars	2022	2021	2020
(Charge) credit to other comprehensive income, before-tax	880	1,076	(101)
Deferred income tax (charge) credit (note 17)	(215)	(264)	23
(Charge) credit to other comprehensive income, after-tax	665	812	(78)

The 2022 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:


		Fair value measurements at December 31, 2022, using:
millions of Canadian dollars	Total	Level 1	Level 2	Level 3	Net Asset Value
Asset class
Equity securities
Canadian	96				96
Non-Canadian	2,215				2,215
Debt securities - Canadian
Corporate	1,156				1,156
Government	3,842				3,842
Asset backed	2				2
Equities – Venture capital	199				199
Cash	31	10			21
Total plan assets at fair value	7,541	10			7,531

The 2021 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below:


		Fair value measurements at December 31, 2021, using:
millions of Canadian dollars	Total	Level 1	Level 2	Level 3	Net Asset Value
Asset class
Equity securities
Canadian	247				247
Non-Canadian	2,539				2,539
Debt securities - Canadian
Corporate	1,496				1,496
Government	4,865				4,865
Asset backed	1				1
Equities – Venture capital	249				249
Cash	43	36			7
Total plan assets at fair value	9,440	36			9,404

A summary of pension plans with accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown in the table below:


	Pension benefits
millions of Canadian dollars	2022	2021
For funded pension plans with projected benefit obligation in excess of plan assets: (a) (b)
Projected benefit obligation	—	1,132
Fair value of plan assets	—	1,031
Projected benefit obligation less fair value of plan assets	—	101

For unfunded pension plans covered by book reserves:
Projected benefit obligation	376	499
Accumulated benefit obligation	353	461
(a)In 2022, the fair value of plan assets exceeded the projected benefit obligation for both the company sponsored plan and its proportionate share of a joint venture sponsored plan. (b)In 2021, projected benefit obligation exceeded the fair value of plan assets only for the company’s proportionate share of a joint venture sponsored pension plan.

Benefit payments expected in:


millions of Canadian dollars	Pension benefits	Other postretirement benefits
2023	480	29
2024	470	30
2025	470	30
2026	470	31
2027	470	31
2028 - 2032	2,360	166