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Employee Compensation - Pension and Other Employee Future Benefits (Tables)

12 Months Ended

Oct. 31, 2025

Summary of Plan Information for Past Two Years

A summary of plan information for the past two years is as follows:


(Canadian $ in millions)	Pension plans						Other employee future benefit plans
	2025			2024			2025			2024
Defined benefit obligation	$	8,582		$	8,365		$	950		$	954
Fair value of plan assets		9,708			9,431			248			245
Net surplus (deficit)		1,126			1,066			(702	)		(709	)
Effect of asset ceiling		–			(3	)		(74	)		(110	)
Net surplus (deficit), net of the effect of the asset ceiling	$	1,126		$	1,063		$	(776	)	$	(819	)
Net surplus (deficit) comprises:
Funded or partially funded plans		1,271			1,223			87			44
Unfunded plans		(145	)		(160	)		(863	)		(863	)
Net surplus (deficit), net of the effect of the asset ceiling	$	1,126		$	1,063		$	(776	)	$	(819	)

Summary of Pension and Other Employee Future Benefit Expenses

Pension and other employee future benefit expenses are determined as follows:


(Canadian $ in millions)	Pension plans						Other employee future benefit plans
	2025			2024			2025		2024
Annual benefits expense
Current service cost	$	177		$	153		$	6	$	5
Net interest (income) expense (1)		(51	)		(61	)		38		40
Impact of plan amendments		(19	)		–			–		(84	)
Administrative expenses		8			11			–		–
Remeasurement of other long-term benefits		–			–			24		5
Benefits expense	$	115		$	103		$	68	$	(34	)
Government pension plans expense (2)		388			375			–		–
Defined contribution expense		306			290			–		–
Total annual pension and other employee future benefit expenses (recovery) recognized in our Consolidated Statement of Income	$	809		$	768		$	68	$	(34	)

(1)

Net interest (income) expense is increased by $nil million for pension plans and $6 million for other employee future benefit plans for 2025 ($nil million and $3 million, respectively, for 2024) as a result of assets written down through other comprehensive income due to the asset ceiling.

(2)

Includes Canada Pension Plan, Quebec Pension Plan and

U.S. Federal Insurance Contributions Act

Summary of Weighted-average Assumptions Used to Determine Benefit Expenses

Weighted-Average Assumptions


	Pension plans				Other employee future benefit plans
	2025		2024		2025			2024
Defined Benefit Expenses
Discount rate at beginning of year (1) (2)		4.9%		5.8%		4.8%			5.7%
Rate of compensation increase		2.1%		2.1%		na			na
Assumed overall health care cost trend rate		na		na		4.8%	(3)		4.8%	(3)

Defined Benefit Obligation
Discount rate at end of year		4.8%		4.9%		4.7%			4.8%
Rate of compensation increase		2.1%		2.1%		na			na
Assumed overall health care cost trend rate		na		na		4.7%	(3)		4.8%	(3)

(1)

The pension benefit current service cost was calculated using a separate discount rate of 4.9% and 5.6% for 2025 and 2024, respectively.

(2)

The other employee future benefit plans current service cost was calculated using a separate discount rate of 5.0% and 5.7% for 2025 and 2024, respectively.

(3)

Trending to 4.0% in

041

and remaining at that level thereafter.

na – not applicable

Summary of Current Life Expectancies Underlying the Amounts of the Defined Benefit Obligations

Assumptions regarding future mortality are based on published statistics and mortality tables calibrated to plan experience, when applicable. The current life expectancies underlying the amounts of the defined benefit obligations for our primary plans are as follows:


(Years)	Canada				United States
	2025		2024		2025		2024
Life expectancy for those currently age 65
Males		23.6		24.0		22.0		22.0
Females		24.7		24.3		23.4		23.3

Life expectancy at age 65 for those currently age 45
Males		24.5		24.9		23.2		23.2
Females		25.6		25.2		24.6		24.5

Summary of Changes in Estimated Financial Positions of Defined Benefit Pension Plans and Other Employee Future Benefit Plans

Changes in the estimated financial positions of our defined benefit pension plans and other employee future benefit plans are as follows:


(Canadian $ in millions, except as noted)	Pension plans						Other employee future benefit plans
	2025			2024			2025			2024
Defined benefit obligation
Defined benefit obligation at beginning of year	$	8,365		$	7,513		$	954		$	880
Transfer of defined benefit obligation		3			–			(3	)		–
Settlements (1)		–			(147	)		–			–
Current service cost		177			153			6			5
Interest cost		399			418			45			49
Impact of plan amendments		(19	)		–			–			15
Benefits paid		(500	)		(481	)		(62	)		(59	)
Employee contributions		21			20			6			6
Actuarial (gains) losses due to:
Changes in demographic assumptions		6			–			(22	)		(12	)
Changes in financial assumptions		45			851			(2	)		81
Plan member experience		71			31			27			(11	)
Foreign exchange and other		14			7			1			–
Defined benefit obligation at end of year		8,582			8,365			950			954
Wholly or partially funded defined benefit obligation		8,437			8,205			87			91
Unfunded defined benefit obligation		145			160			863			863
Total defined benefit obligation		8,582			8,365			950			954
Fair value of plan assets
Fair value of plan assets at beginning of year		9,431			8,559			245			138
Settlements (1)		–			(147	)		–			–
Impact of plan amendments		–			–			–			100
Interest income		450			479			13			12
Return on plan assets (excluding interest income)		246			979			1			1
Employer contributions		55			25			43			45
Employee contributions		21			20			6			6
Benefits paid		(500	)		(481	)		(62	)		(59	)
Administrative expenses		(8	)		(12	)		–			–
Foreign exchange and other		13			9			2			2
Fair value of plan assets at end of year		9,708			9,431			248			245
Effect of asset ceiling		–			(3	)		(74	)		(110	)
Net surplus (deficit), net of the effect of the asset ceiling	$	1,126		$	1,063		$	(776	)	$	(819	)
Recorded in:
Other assets		1,316			1,252			87			44
Other liabilities		(190	)		(189	)		(863	)		(863	)
Net surplus (deficit), net of the effect of the asset ceiling	$	1,126		$	1,063		$	(776	)	$	(819	)
Actuarial gains (losses) recognized in other comprehensive income
Net actuarial gains (losses) on plan assets		246			979			1			1
Effect of asset ceiling		3			(3	)		43			(107	)
Actuarial gains (losses) on defined benefit obligation due to:
Changes in demographic assumptions		(6	)		–			22			15
Changes in financial assumptions		(45	)		(851	)		3			(74	)
Plan member experience		(71	)		(31	)		(5	)		6
Foreign exchange and other		(1	)		(3	)		–			–
Actuarial gains (losses) recognized in other comprehensive income for the year	$	126		$	91		$	64		$	(159	)

(1)

We completed a buyout of our UK pension plan in the fourth quarter of 2024, whereby we transferred our defined benefit obligations and an equal amount of plan assets to a third-party insurer, who has assumed responsibility for administering payments to plan members. We do not have any further involvement in the plan. There was

pre-tax

impact from this transfer. Deferred tax assets and liabilities related to the pension plan were reduced to $nil.

Summary Of Asset Allocation Ranges, Weighted-Average Actual Asset Allocations And Fair Values Of Plan Assets

Our pension and other employee future benefit plan assets are measured at fair value on a recurring basis. The asset allocation ranges, weighted-average actual asset allocations and fair values of plan assets held by our primary plans as at October 31, 2025 and 2024 are as follows:


(Canadian $ in millions)	2025										2024
	Target range		% of total		Quoted		Unquoted		Total		Target range		% of total		Quoted		Unquoted		Total
Equities		15 – 40%		21%	$	1,139	$	869	$	2,008		15 – 40%		22%	$	1,060	$	852	$	1,912
Fixed income investments		40 – 55%		49%		106		4,551		4,657		40 – 55%		49%		96		4,467		4,563
Private investments		10 – 35%		30%		–		2,791		2,791		10 – 35%		29%		–		2,681		2,681
				100%	$	1,245	$	8,211	$	9,456				100%	$	1,156	$	8,000	$	9,156

Summary of Changes in Number of Key Assumption


(Canadian $ in millions, except as noted)	Defined benefit obligation
	Pension plans			Other employee future benefit plans
Discount rate (%)		4.8			4.7
Impact of: 1% increase ($)		(867	)		(70	)
1% decrease ($)		1,073			83
Rate of compensation increase (%)		2.1			na
Impact of: 0.25% increase ($)		36			na
0.25% decrease ($)		(35	)		na
Mortality
Impact of: 1 year shorter life expectancy ($)		(165	)		(19	)
1 year longer life expectancy ($)		161			19
Assumed overall health care cost trend rate (%)		na			4.7	(1)
Impact of: 1% increase ($)		na			30
1% decrease ($)		na			(28	)

(1)

Trending to 4.0% in

2041

and remaining at that level thereafter.

na – not applicable

Summary of Duration of Defined Benefit Obligation

The duration of the defined benefit obligation for our primary plans is as follows:


(Years)	2025		2024
Canadian pension plans		13.1		13.0
U.S. pension plans		7.3		7.5
Canadian other employee future benefit plans		11.4		11.7

Summary of Cash Payments in Connection with Employee Future Benefit Plans

Cash payments we made during the year in connection with our employee future benefit plans are as follows:


(Canadian $ in millions)	Pension plans					Other employee future benefit plans
	2025		2024			2025		2024
Net contributions (refund)	$	4	$	(25	)	$	–	$	–
Contributions to defined contribution plans		306		290			–		–
Benefits paid directly to pensioners		51		50			47		45
	$	361	$	315		$	47	$	45

Our best estimate of the contributions and benefits paid directly to pensioners we expect to make for the year ending October 31, 2026 is approximately $41 million for our defined benefit pension plans and $23 million for our other employee future benefit plans. Benefit payments from our defined benefit and other employee future benefit plans to retirees for the year ending October 31, 2026 are estimated to be $605 million.