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Post-employment benefits
 12 Months Ended
Oct. 31, 2025
Text Block [Abstract]  
Post-employment benefits
Note 17
  
Post-employment benefits
 
We sponsor pension and other post-employment benefit plans for eligible employees in a number of jurisdictions including Canada, the U.S., and the Caribbean. Our pension plans include registered funded defined benefit pension plans, supplemental arrangements that provide pension benefits in excess of statutory limits, and defined contribution plans. We also provide certain health-care, life insurance, and other benefits to eligible employees and retired members. Plan assets and defined benefit obligations related to our defined benefit plans are measured for accounting purposes as at October 31 each year.
Plan characteristics, funding and risks
Pension plans
Pension plans include CIBC’s Canadian, U.S., and Caribbean pension plans. CIBC’s Canadian pension plans represent approximately 92% of our consolidated defined benefit obligation. All of our Canadian pension plans are defined benefit plans, the most significant of which is our principal Canadian pension plan (the CIBC Pension Plan), which encompasses approximately 73,000 active, deferred, and retired members.
The CIBC Pension Plan provides members with monthly pension income at retirement based on a prescribed plan formula which is based on a combination of maximum yearly pensionable earnings, average earnings at retirement and length of service recognized in the plan. There is a
two-year
waiting period for members to join the CIBC Pension Plan.
The CIBC Pension Plan is funded through a separate trust. Actuarial funding valuations are prepared by the Plan’s external actuary at least once every three years or more frequently as required by Canadian pension legislation to determine CIBC’s minimum funding requirements as well as maximum permitted contributions. Any deficits determined in the funding valuations must generally be funded over a period not exceeding fifteen years. CIBC’s pension funding policy is to make at least the minimum annual required contributions required by regulations. Any contributions in excess of the minimum requirements are discretionary.
The CIBC Pension Plan is registered with OSFI and the Canada Revenue Agency (CRA) and is subject to the acts and regulations that govern federally regulated pension plans.
Other post-employment plans
Other post-employment plans include CIBC’s Canadian, U.S. and Caribbean post-retirement health-care benefit plans (referred to for disclosure purposes as other post-employment plans). CIBC’s Canadian other post-employment plan (the Canadian post-employment plan) represents more than 93% of our consolidated other post-employment defined benefit obligation.
The Canadian post-employment plan provides medical, dental and life insurance benefits to retirees that meet specified eligibility requirements, including specified age and service period eligibility requirements. CIBC reimburses 100% of the cost of benefits for eligible employees that retired prior to January 1, 2009, whereas the contribution level for medical and dental benefits for eligible employees that retire subsequent to this date has been fixed at a specified level. The plan is funded on a pay-as-you-go basis.
Benefit changes
There were no material changes to the terms of our Canadian defined benefit pension plans in 2025 or 2024.
Risks
CIBC’s defined benefit plans expose the group to actuarial risks (such as longevity risk), currency risk, interest rate risk, market (investment) risk and health-care cost inflation risks.
The CIBC Pension Plan operates a currency overlay strategy, which may use forwards or similar instruments, to manage and mitigate its currency risk.
Interest rate risk is managed as part of the CIBC Pension Plan’s liability-driven investment strategy through a combination of physical bonds, overlays funded in the repo market, and/or derivatives.
Market (investment) risk is mitigated through a multi-asset portfolio construction process that diversifies across a variety of market risk drivers.
The use of derivatives within the CIBC Pension Plan is governed by its derivatives policy that was approved by the Pension Benefits Management Committee (PBMC) and permits the use of derivatives to manage risk at the discretion of the Pension Investment Committee (PIC). In addition to the management of interest rate risk, risk reduction and mitigation strategies may include hedging of currency, credit spread and/or equity risks. The derivatives policy also permits the use of derivatives to enhance plan returns.
Plan governance
All of CIBC’s pension arrangements are governed by local pension committees, senior management or a board of trustees. However, all significant plan changes require approval from the Management Resources and Compensation Committee (MRCC). For the Canadian pension plans, the MRCC is responsible for setting the strategy for the pension plans, reviewing material risks, performance including funded status, and approving material design or governance changes.
While specific investment policies are determined at a plan level to reflect the unique characteristics of each plan, common investment policies for all plans include the optimization of the risk-return relationship using a portfolio of multiple asset classes diversified by market segment, economic sector, and issuer. The objectives are to secure the benefits promised by our funded plans, to maximize long-term investment returns while not compromising the benefit security of the respective plans, manage the level of funding contributions in conjunction with the stability of the funded status, and implement all policies in a cost effective manner. Investments in quoted debt and equity (held either directly or indirectly through investment funds) represent the most significant asset allocations.
The use of derivatives is limited to the purposes and instruments described in the derivatives policy of the CIBC Pension Plan. These include the use of synthetic debt or equity instruments, currency hedging, risk reduction and enhancement of returns.
Investments in specific asset classes are further diversified across funds, managers, strategies, sectors and geographies, depending on the specific characteristics of each asset class.
The exposure to any one of these asset classes will be determined by our assessment of the needs of the plan assets and economic and financial market conditions. Factors evaluated before adopting the asset mix include demographics, cash-flow payout requirements, liquidity requirements, actuarial assumptions, expected benefit increases, and plan funding requirements.
 
Management of the assets of the various Canadian plans has been delegated primarily to the PIC, which is a committee that is composed of CIBC management. The PIC is responsible for the appointment and termination of individual investment managers (which includes CIBC Asset Management Inc., a wholly owned subsidiary of CIBC), who each have investment discretion within established target asset mix ranges as set by the PBMC. Should a fund’s actual asset mix fall outside specified ranges, the assets are re-balanced as required to be within the target asset mix ranges. On a periodic basis, an Asset-Liability Matching study is performed in which the consequences of the strategic investment policies are analyzed.
Management of the actuarial valuations of the various Canadian plans is primarily the responsibility of the PBMC. The PBMC is responsible for approving the actuarial assumptions for the valuations of the plans, and for recommending the level of annual funding for the Canadian plans to CIBC senior management.
Local committees with similar mandates manage our non-Canadian plans and annually report back to the MRCC on all material governance activities.
Amounts recognized on the consolidated balance sheet
The following tables present the financial position of our defined benefit pension and other post-employment plans for Canada, the U.S., the U.K., and our Caribbean subsidiaries. Other minor plans operated by some of our subsidiaries are not material and are not included in these disclosures.
 
     Pension plans     Other post-employment plans  
$ millions, as at or for the year ended October 31
   
2025
     2024    
2025
      2024  
Defined benefit obligation
          
Balance at beginning of year
   
$
7,942
 
   $ 7,060    
$
419
 
    $ 422  
Current service cost
   
 
227
 
     190    
 
5
 
      5  
Interest cost on defined benefit obligation
   
 
386
 
     396    
 
20
 
      24  
Employee contributions
   
 
3
 
     4    
 
–
 
      –  
Benefits paid
   
 
(382
) 
     (365 )   
 
(30
)
      (32 ) 
Settlement payments
   
 
–
 
     (79 )   
 
–
 
      –  
Foreign exchange rate changes and other
   
 
4
 
     5    
 
–
 
      –  
Net actuarial (gains) losses on defined benefit obligation
   
 
80
 
     731    
 
6
 
      –  
Balance at end of year
   
$
  8,260
 
   $   7,942    
$
   420
 
    $    419  
Plan assets
          
Fair value at beginning of year
   
$
9,326
 
   $ 8,091    
$
–
 
    $ –  
Interest income on plan assets
(1)
   
 
462
 
     459    
 
–
 
      –  
Net actuarial gains (losses) on plan assets
(1)
   
 
385
 
     1,079    
 
–
 
      –  
Employer contributions
   
 
181
 
     146    
 
30
 
      32  
Employee contributions
   
 
3
 
     4    
 
–
 
      –  
Benefits paid
   
 
(382
) 
     (365 )   
 
(30
)
      (32 ) 
Settlement payments
   
 
–
 
     (79 )   
 
–
 
      –  
Plan administration costs
   
 
(7
) 
     (8 )   
 
–
 
      –  
Increase (decrease) due to plan settlements
   
 
–
 
     (10 )   
 
–
 
      –  
Foreign exchange rate changes and other
   
 
7
 
     9    
 
–
 
      –  
Fair value at end of year
   
$
9,975
 
   $ 9,326    
$
–
 
    $ –  
Net defined benefit asset (liability)
   
 
1,715
 
     1,384    
 
(420
)
      (419 ) 
Valuation allowance
(2)
   
 
(74
) 
     (47 )   
 
–
 
      –  
Net defined benefit asset (liability), net of valuation allowance
   
$
1,641
 
   $ 1,337    
$
(420
)
    $ (419 ) 
 
(1)
The actual return on plan assets for the year was a gain of $847 million (2024: gain of $1,538 million).
(2)
The valuation allowance reflects the effect of asset ceiling on plans with a net defined benefit asset.
The net defined benefit asset (liability), net of valuation allowance, included in other assets and other liabilities is as follows:
 
     Pension plans     Other post-employment plans  
$ millions, as at October 31
   
2025
     2024    
2025
      2024  
Other assets
   
$
  1,678
 
   $   1,378    
$
  –
 
    $ –  
Other liabilities
   
 
(37
) 
     (41 )   
 
(420
) 
      (419 ) 
Net defined benefit asset (liability), net of valuation allowance
   
$
1,641
 
   $ 1,337    
$
  (420
) 
    $   (419 ) 
The defined benefit obligation and plan assets by region are as follows:
 
     Pension plans      Other post-employment plans  
$ millions, as at October 31
   
2025
      2024     
2025
      2024  
Defined benefit obligation
            
Canada
   
$
  7,592
 
    $   7,291     
$
   391
 
    $   389  
U.S. and the Caribbean
   
 
668
 
      651     
 
29
 
      30  
Defined benefit obligation at end of year
   
$
8,260
 
    $ 7,942     
$
420
 
    $ 419  
Plan assets
            
Canada
   
$
9,006
 
    $ 8,441     
$
–
 
    $ –  
U.S. and the Caribbean
   
 
969
 
      885     
 
–
 
      –  
Plan assets at end of year
   
$
9,975
 
    $ 9,326     
$
–
 
    $ –  
 
 
Amounts recognized in the consolidated statement of income
The net defined benefit expense for our defined benefit plans in Canada, the U.S., the U.K., and the Caribbean is as follows:
 
 
  
Pension plans
 
 
Other post-employment plans
 
$ millions, for the year ended October 31
  
2025
 
 
2024
 
 
2025
 
  
2024
 
Current service cost
(1)
   
$
227
 
   $ 190    
$
5
 
    $ 5  
Past service cost
   
 
–
 
     –    
 
–
 
      –  
Interest cost on defined benefit obligation
   
 
386
 
     396    
 
20
 
      24  
Interest income on plan assets
   
 
(462
) 
     (459 )   
 
–
 
      –  
Interest expense on effect of asset ceiling
   
 
3
 
     1    
 
–
 
      –  
Special termination benefits
   
 
–
 
     –    
 
–
 
      –  
Plan administration costs
   
 
7
 
     8    
 
–
 
      –  
Net defined benefit plan expense recognized in net income
   
$
   161
 
   $    136    
$
  25
 
    $   29  
 
(1)
The 2025 and 2024 current service costs were calculated using separate discount rates of 4.88% and 5.61%, respectively, to reflect the longer duration of future benefits payments associated with the additional year of service to be earned by the plan’s active participants.
Amounts recognized in the consolidated statement of comprehensive income
The net remeasurement gains (losses) recognized in OCI for our defined benefit plans in Canada, the U.S., the U.K., and the Caribbean are as follows:
 
 
  
Pension plans
 
 
Other post-employment plans
 
$ millions, for the year ended October 31
  
 
2025
 
 
 
2024
 (1)
 
 
 
2025
 
  
 
2024
 
Actuarial gains (losses) on defined benefit obligation arising from changes in:
          
Demographic assumptions
   
$
–
 
   $ (1 )   
$
–
 
    $    34  
Financial assumptions
   
 
(46
) 
     (768 )   
 
(4
) 
      (36 ) 
Experience
   
 
(34
) 
     38    
 
(2
) 
      2  
Net actuarial gains (losses) on plan assets
   
 
  385
 
       1,079    
 
   –
 
      –  
Changes in asset ceiling excluding interest income
   
 
(25
) 
     (30 )   
 
–
 
      –  
Net remeasurement gains (losses) recognized in OCI
   
$
280
 
   $ 318    
$
(6
) 
    $ –  
 
(1)
Includes the transfer of the accumulated actuarial losses of $5 million to retained earnings upon the settlement of a pension plan for one of our subsidiaries.
Canadian defined benefit plans
As the Canadian defined benefit pension and other post-employment benefit plans represent approximately 92% of our consolidated defined benefit obligation, they are the subject and focus of the disclosures in the balance of this note.
Disaggregation and maturity profile of defined benefit obligation
The breakdown of the defined benefit obligation for our Canadian plans between active, deferred and retired members is as follows:

 
 
  
Pension plans
 
  
Other post-employment plans
 
$ millions, as at October 31
  
2025
 
  
2024
 
  
2025
 
  
2024
 
Active members
   
$
  3,757
 
    $   3,558     
$
79
 
    $ 74  
Deferred members
   
 
510
 
      490     
 
–
 
      –  
Retired members
   
 
3,325
 
      3,243     
 
312
 
      315  
Total
   
$
7,592
 
    $ 7,291     
$
  391
 
    $   389  
The weighted-average duration of the defined benefit obligation for our Canadian plans is as follows:
 
     Pension plans      Other post-employment plans  
As at October 31
   
2025
      2024     
2025
      2024  
Weighted-average duration, in years
   
 
12.7
 
      12.9     
 
10.2
 
      10.3  
 
Plan assets
The major categories of our defined benefit pension plan assets for our Canadian plans are as follows:
 
$ millions, as at October 31
  
2025
     2024  
Asset category
(1)
        
Canadian equity securities
(2)
  
$
523
 
  
 
6
 % 
   $ 472       6  % 
Debt securities
(3)
        
Government bonds
  
 
5,794
 
  
 
64
 
     5,419       64  
Corporate bonds
  
 
315
 
  
 
4
 
     403       5  
 
 
6,109
 
  
 
68
 
     5,822       69  
Investment funds
(4)
        
Canadian equity funds
  
 
43
 
  
 
–
 
     35       –  
U.S. equity funds
  
 
421
 
  
 
5
 
     694       8  
International equity funds
(5)
  
 
45
 
  
 
–
 
     37       –  
Global equity funds
(5)
  
 
1,415
 
  
 
16
 
     1,150       15  
Fixed income funds
  
 
107
 
  
 
1
 
     103       1  
 
 
2,031
 
  
 
22
 
     2,019       24  
Other
(2)
        
Alternative investments
(6)
  
 
2,471
 
  
 
27
 
     2,399       28  
Cash and cash equivalents and other
  
 
249
 
  
 
3
 
     339       4  
Obligations related to securities sold under repurchase agreements and securities sold short
  
 
(2,377
) 
  
 
(26
) 
       (2,610 )      (31 ) 
   
 
343
 
  
 
4
 
     128       1  
Total
 
$
   9,006
 
  
 
100
 % 
   $ 8,441       100  % 
 
(1)
Asset categories are based upon risk classification including synthetic exposure through derivatives. The fair value of derivatives as at October 31, 2025 was a net derivative liability of $29 million (2024: net derivative liability of $30 million).
(2)
Pension benefit plan assets include CIBC issued securities and deposits of nil (2024: nil), representing nil of Canadian plan assets (2024: nil). All of the equity securities held as at October 31, 2025 and 2024 have daily quoted prices in active markets except hedge funds, infrastructure, and private equity.
(3)
All debt securities held as at October 31, 2025 and 2024 are investment grade, of which $372 million (2024: $285 million) have daily quoted prices in active markets.
(4)
$40 million (2024: $33 million) of the investment funds are directly held as at October 31, 2025 and have daily quoted prices in active markets.
(5)
Global equity funds include North American and international investments, whereas International equity funds do not include North American investments.
(6)
Comprised of private equity, infrastructure, private debt and real estate funds.
Principal actuarial assumptions
The weighted-average principal assumptions used to determine the defined benefit obligation for our Canadian plans are as follows:
 
     Pension plans    
Other post-employment plans
  
As at October 31
   
2025
     2024    
2025
     2024  
Discount rate
   
 
4.8
 % 
     4.8  %   
 
4.7
 % 
     4.8  % 
Rate of compensation increase
(1)
   
 
2.5
 % 
     2.5  %   
 
n/a
 
     n/a  
 
(1)
Rates of compensation increase for 2025 and 2024 reflect the use of a salary growth rate assumption table that is based on the age and tenure of the employees. The table yields a weighted-average salary growth rate of approximately 2.5% per annum (2024: 2.5%).
n/a
Not applicable
Assumptions regarding future mortality have been based on published statistics and mortality tables. The current longevities underlying the values of the defined benefit obligation of our Canadian plans are as follows (in years):
 
As at October 31
   
2025
     2024  
Longevity at age 65 for current retired members
     
Males
   
 
23.6
    
     23.6  
Females
   
 
24.7
    
     24.7  
Longevity at age 65 for current members aged 45
     
Males
   
 
24.5
    
     24.5  
Females
   
 
25.6
    
     25.6  
The assumed health-care cost trend rates of the Canadian other post-employment plan providing medical, dental, and life insurance benefits are as follows:
 
For the year ended October 31
   
2025
     2024  
Health-care cost trend rates assumed for next year
   
 
4.9
 % 
     4.9  % 
Rate to which the cost trend rate is assumed to decline
   
 
4.0
 % 
     4.0  % 
Year that the rate reaches the ultimate trend rate
   
 
2040
  
     2040   
 
Sensitivity analysis
Reasonably possible changes to one of the principal actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation of our Canadian plans as follows:
 
Estimated increase (decrease) in defined benefit obligation    Pension plans    
Other post-employment plans
  
$ millions, as at October 31
   
2025
    
2025
  
Discount rate (100 basis point change)
     
Decrease in assumption
   
$
  1,054
 
  
$
  44
 
Increase in assumption
   
 
(889
) 
  
 
(37
) 
Rate of compensation increase (100 basis point change)
     
Decrease in assumption
   
 
(205
) 
  
 
–
 
Increase in assumption
   
 
217
 
  
 
–
 
Health-care cost trend rates (100 basis point change)
     
Decrease in assumption
   
 
n/a
 
  
 
(13
) 
Increase in assumption
   
 
n/a
 
  
 
15
 
Future mortality
     
1 year shorter life expectancy
   
 
(167
) 
  
 
(8
) 
1 year longer life expectancy
   
 
161
 
  
 
8
 
 
n/a
Not applicable.
The sensitivity analyses presented above are indicative only, and should be considered with caution as they have been calculated in isolation without changing other assumptions. In practice, changes in one assumption may result in changes in another, which may magnify or counteract the disclosed sensitivities.
Future cash flows
Cash contributions
The most recently completed actuarial valuation of the CIBC Pension Plan for funding purposes was as at October 31, 2024. The next actuarial valuation of this plan for funding purposes will be effective as of October 31, 2025.
The employer contributions for 2026 are anticipated to be $180
million for the CIBC Pension Plan
.
These estimates are subject to change since contributions are affected by various factors, such as market performance, regulatory requirements, and management’s ability to change funding policy.
Expected future benefit payments
The expected future benefit payments for our Canadian plans for the next 10 years are as follows:
 
$ millions, for the year ended October 31
    2026      2027      2028      2029      2030      2031–2035      Total  
Defined benefit pension plans
    $ 375      $ 387      $ 402      $ 417      $ 433      $ 2,374      $ 4,388  
Other post-employment plans
      26        27        27        28        28        142        278  
Total
    $   401      $   414      $   429      $   445      $   461      $   2,516      $   4,666  
Defined contributions and other plans
We also maintain defined contribution plans for certain employees and make contributions to government pension plans. The expense recognized in the consolidated statement of income for these benefit plans is as follows:
 
$ millions, for the year ended October 31
   
2025
      2024  
Defined contribution pension plans
   
$
84
 
    $ 72  
Government pension plans
(1)
   
 
227
 
      197  
Total
   
$
  311
 
    $   269  
 
(1)
Includes Canada Pension Plan, Quebec Pension Plan, and U.S. Federal Insurance Contributions Act.