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PENSION AND OTHER POSTRETIREMENT BENEFITS | 12 Months Ended
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Dec. 31, 2019
Retirement Benefits [Abstract] |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS PENSION PLANS We sponsor Canadian and United States contributory and non-contributory registered defined benefit and defined contribution pension plans, which provide benefits covering substantially all employees. The Canadian Plans provide defined benefit and defined contribution pension benefits to our Canadian employees. The United States Plans provide defined benefit pension benefits to our United States employees. We also sponsor supplemental non-contributory defined benefit pension plans, which provide non-registered benefits for certain employees in Canada and the United States. Defined Benefit Pension Plan Benefits Benefits payable from the defined benefit pension plans are based on each plan participant’s years of service and final average remuneration. Some benefits are partially inflation-indexed after a plan participant’s retirement. Our contributions are made in accordance with independent actuarial valuations. Participant contributions to contributory defined benefit pension plans are based upon each plan participant’s current eligible remuneration. Defined Contribution Pension Plan Benefits Our contributions are based on each plan participant’s current eligible remuneration. Our contributions for some defined contribution pension plans are also based on age and years of service. Our defined contribution pension benefit costs are equal to the amount of contributions required to be made by us. Benefit Obligations, Plan Assets and Funded Status The following table details the changes in the projected benefit obligation, the fair value of plan assets and the recorded assets or liabilities for our defined benefit pension plans:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Change in projected benefit obligation |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year | 3,997 |  | 4,033 |  |  | 1,214 |  | 1,279 |
Service cost | 149 |  | 149 |  |  | 45 |  | 45 |
Interest cost | 139 |  | 130 |  |  | 41 |  | 38 |
Participant contributions | 32 |  | 25 |  |  | — |  | — |
Actuarial (gain)/loss | 423 |  | (146 | ) |  | 106 |  | (103 | )
Benefits paid | (187 | ) | (184 | ) |  | (101 | ) | (60 | )
Plan settlements 1 | (99 | ) | — |  |  | (1 | ) | (65 | )
Transfers out | (8 | ) | (10 | ) |  | (6 | ) | — |
Foreign currency exchange rate changes | — |  | — |  |  | (63 | ) | 105 |
Other | — |  | — |  |  | (5 | ) | (25 | )
Projected benefit obligation at end of year 2 | 4,446 |  | 3,997 |  |  | 1,230 |  | 1,214 |
Change in plan assets |  |  |  |  |
Fair value of plan assets at beginning of year | 3,523 |  | 3,619 |  |  | 1,045 |  | 1,097 |
Actual return/(loss) on plan assets | 448 |  | (42 | ) |  | 176 |  | (48 | )
Employer contributions | 114 |  | 113 |  |  | 46 |  | 40 |
Participant contributions | 32 |  | 25 |  |  | — |  | — |
Benefits paid | (187 | ) | (184 | ) |  | (101 | ) | (60 | )
Plan settlements 1 | (99 | ) | — |  |  | (1 | ) | (65 | )
Transfers out | (4 | ) | (8 | ) |  | — |  | — |
Foreign currency exchange rate changes | — |  | — |  |  | (56 | ) | 91 |
Other | — |  | — |  |  | (5 | ) | (10 | )
Fair value of plan assets at end of year 3 | 3,827 |  | 3,523 |  |  | 1,104 |  | 1,045 |
Underfunded status at end of year | (619 | ) | (474 | ) |  | (126 | ) | (169 | )
Presented as follows: |  |  |  |  |
Deferred amounts and other assets | 35 |  | 29 |  |  | — |  | — |
Accounts payable and other | (9 | ) | (9 | ) |  | (4 | ) | (4 | )
Other long-term liabilities | (645 | ) | (494 | ) |  | (122 | ) | (165 | )
| (619 | ) | (474 | ) |  | (126 | ) | (169 | )
1 | Plan settlements for the Canadian Plans are related to the disposition of our federally regulated BC Field Services business.
2 | The accumulated benefit obligation for our Canadian pension plans was $4.0 billion and $3.7 billion as at December 31, 2019 and 2018, respectively. The accumulated benefit obligation for our United States pension plans was $1.2 billion as at December 31, 2019 and 2018.
3 | Assets in the amount of $10 million (2018 - $7 million) and $51 million (2018 - $39 million), related to our Canadian and United States non-registered supplemental pension plan obligations, are held in Grantor Trusts and Rabbi Trusts that, in accordance with federal tax regulations, are not restricted from creditors. These assets are committed for the future settlement of benefit obligations included in the underfunded status as at the end of the year, however they are excluded from plan assets for accounting purposes.
Certain of our pension plans have an accumulated benefit obligation in excess of the fair value of plan assets. For these plans, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were as follows:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |
Projected benefit obligation | 1,481 |  | 1,422 |  |  | 103 |  | 1,214 |
Accumulated benefit obligation | 1,361 |  | 1,299 |  |  | 98 |  | 1,179 |
Fair value of plan assets | 1,087 |  | 1,064 |  |  | — |  | 1,045 |
Amount Recognized in Accumulated Other Comprehensive Income The amount of pre-tax AOCI relating to our pension plans are as follows:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Net actuarial loss | 445 |  | 435 |  |  | 134 |  | 133 |
Prior service credit | — |  | — |  |  | (2 | ) | (3 | )
Total amount recognized in AOCI 1 | 445 |  | 435 |  |  | 132 |  | 130 |
1 Excludes amounts related to cumulative translation adjustment. Net Periodic Benefit Cost and Other Amounts Recognized in Comprehensive Income The components of net periodic benefit cost and other amounts recognized in pre-tax Comprehensive income related to our pension plans are as follows:
| Canada |  | United States
Year ended December 31, | 2019 |  | 2018 |  | 2017 |  |  | 2019 |  | 2018 |  | 2017 |
(millions of Canadian dollars) |  |  |  |  |  |  |
Service cost | 149 |  | 149 |  | 156 |  |  | 45 |  | 45 |  | 48 |
Interest cost | 139 |  | 130 |  | 116 |  |  | 41 |  | 38 |  | 35 |
Expected return on plan assets | (245 | ) | (245 | ) | (201 | ) |  | (78 | ) | (88 | ) | (57 | )
Amortization/settlement of net actuarial loss | 41 |  | 25 |  | 29 |  |  | 2 |  | 7 |  | 10 |
Amortization/curtailment of prior service (credit)/cost | — |  | — |  | — |  |  | (1 | ) | 3 |  | — |
Net periodic benefit cost | 84 |  | 59 |  | 100 |  |  | 9 |  | 5 |  | 36 |
Defined contribution benefit cost | 8 |  | 11 |  | 11 |  |  | — |  | — |  | — |
Net pension cost recognized in Earnings | 92 |  | 70 |  | 111 |  |  | 9 |  | 5 |  | 36 |
Amount recognized in OCI: |  |  |  |  |  |  |
| Effect of plan combination | — |  | — |  | — |  |  | (6 | ) | — |  | — |
| Amortization/settlement of net actuarial loss | (26 | ) | (11 | ) | (14 | ) |  | (2 | ) | (7 | ) | (9 | )
| Amortization/curtailment of prior service credit/(cost) | — |  | — |  | — |  |  | 1 |  | (3 | ) | — |
| Net actuarial loss arising during the year | 115 |  | 112 |  | 38 |  |  | 8 |  | 28 |  | — |
Total amount recognized in OCI | 89 |  | 101 |  | 24 |  |  | 1 |  | 18 |  | (9 | )
Total amount recognized in Comprehensive income | 181 |  | 171 |  | 135 |  |  | 10 |  | 23 |  | 27 |
We estimate that approximately $21 million related to the Canadian pension plans and nil related to the United States pension plans as at December 31, 2019 will be reclassified from AOCI into Earnings in the next 12 months. Actuarial Assumptions The weighted average assumptions made in the measurement of the projected benefit obligation and net periodic benefit cost of our pension plans are as follows:
| Canada |  | United States
| 2019 |  | 2018 |  | 2017 |  |  | 2019 |  | 2018 |  | 2017 |
Projected benefit obligation |  |  |  |  |  |  |
Discount rate | 3.0 | % | 3.8 | % | 3.6 | % |  | 3.0 | % | 3.9 | % | 3.5 | %
Rate of salary increase | 3.2 | % | 3.2 | % | 3.2 | % |  | 2.9 | % | 2.8 | % | 3.1 | %
Net periodic benefit cost |  |  |  |  |  |  |
Discount rate | 3.8 | % | 3.6 | % | 4.0 | % |  | 3.9 | % | 3.4 | % | 4.0 | %
Expected rate of return on plan assets | 7.0 | % | 6.8 | % | 6.5 | % |  | 8.0 | % | 7.4 | % | 7.2 | %
Rate of salary increase | 3.2 | % | 3.2 | % | 3.7 | % |  | 2.9 | % | 2.9 | % | 3.3 | %
OTHER POSTRETIREMENT BENEFIT PLANS We sponsor funded and unfunded defined benefit OPEB Plans, which provide non-contributory supplemental health, dental, life and health spending account benefit coverage for certain qualifying retired employees. Benefit Obligations, Plan Assets and Funded Status The following table details the changes in the accumulated postretirement benefit obligation, the fair value of plan assets and the recorded assets or liabilities for our defined benefit OPEB plans:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Change in accumulated postretirement benefit obligation |  |  |  |  |  |  |  |  |
Accumulated postretirement benefit obligation at beginning of year | 282 |  | 321 |  |  | 305 |  | 337 |
Service cost | 5 |  | 8 |  |  | 2 |  | 3 |
Interest cost | 10 |  | 10 |  |  | 10 |  | 10 |
Participant contributions | — |  | — |  |  | 5 |  | 6 |
Actuarial (gain)/loss | 15 |  | (45 | ) |  | 7 |  | (25 | )
Benefits paid | (6 | ) | (11 | ) |  | (28 | ) | (29 | )
Plan amendments | — |  | — |  |  | — |  | (8 | )
Foreign currency exchange rate changes | — |  | — |  |  | (15 | ) | 27 |
Other | (13 | ) | (1 | ) |  | 2 |  | (16 | )
Accumulated postretirement benefit obligation at end of year | 293 |  | 282 |  |  | 288 |  | 305 |
Change in plan assets |  |  |  |  |
Fair value of plan assets at beginning of year | — |  | — |  |  | 181 |  | 213 |
Actual return/(loss) on plan assets | — |  | — |  |  | 27 |  | (13 | )
Employer contributions | 6 |  | 11 |  |  | 10 |  | 8 |
Participant contributions | — |  | — |  |  | 5 |  | 6 |
Benefits paid | (6 | ) | (11 | ) |  | (28 | ) | (29 | )
Foreign currency exchange rate changes | — |  | — |  |  | (9 | ) | 16 |
Other | — |  | — |  |  | 2 |  | (20 | )
Fair value of plan assets at end of year | — |  | — |  |  | 188 |  | 181 |
Underfunded status at end of year | (293 | ) | (282 | ) |  | (100 | ) | (124 | )
Presented as follows: |  |  |  |  |
Deferred amounts and other assets | — |  | — |  |  | — |  | 2 |
Accounts payable and other | (12 | ) | (12 | ) |  | (8 | ) | (7 | )
Other long-term liabilities | (281 | ) | (270 | ) |  | (92 | ) | (119 | )
| (293 | ) | (282 | ) |  | (100 | ) | (124 | )
Amount Recognized in Accumulated Other Comprehensive Income The amount of pre-tax AOCI relating to our OPEB plans are as follows:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |
Net actuarial gain | (7 | ) | (29 | ) |  | (23 | ) | (15 | )
Prior service credit | (1 | ) | (2 | ) |  | (13 | ) | (15 | )
Total amount recognized in AOCI 1 | (8 | ) | (31 | ) |  | (36 | ) | (30 | )
1 Excludes amounts related to cumulative translation adjustment. Net Periodic Benefit Cost and Other Amounts Recognized in Comprehensive Income The components of net periodic benefit cost and other amounts recognized in pre-tax Comprehensive income related to our OPEB plans are as follows:
| Canada |  | United States
Year ended December 31, | 2019 |  | 2018 |  | 2017 |  |  | 2019 |  | 2018 |  | 2017 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |  |  |  |  |
Service cost | 5 |  | 8 |  | 7 |  |  | 2 |  | 3 |  | 5 |
Interest cost | 10 |  | 10 |  | 10 |  |  | 10 |  | 10 |  | 10 |
Expected return on plan assets | — |  | — |  | — |  |  | (12 | ) | (12 | ) | (10 | )
Amortization/settlement of net actuarial gain | (7 | ) | — |  | — |  |  | — |  | (1 | ) | — |
Amortization/curtailment of prior service (credit)/cost | (1 | ) | — |  | 1 |  |  | (2 | ) | (4 | ) | — |
Net periodic benefit cost recognized in Earnings | 7 |  | 18 |  | 18 |  |  | (2 | ) | (4 | ) | 5 |
Amount recognized in OCI: |  |  |  |  |  |  |
Amortization/settlement of net actuarial gain/(loss) | 7 |  | — |  | (1 | ) |  | — |  | 1 |  | 1 |
Amortization/curtailment of prior service credit | 1 |  | — |  | — |  |  | 2 |  | 4 |  | — |
Net actuarial (gain)/loss arising during the year | 15 |  | (46 | ) | (8 | ) |  | (8 | ) | (1 | ) | (42 | )
Prior service (credit)/cost | — |  | — |  | (3 | ) |  | — |  | (8 | ) | 1 |
Total amount recognized in OCI | 23 |  | (46 | ) | (12 | ) |  | (6 | ) | (4 | ) | (40 | )
Total amount recognized in Comprehensive income | 30 |  | (28 | ) | 6 |  |  | (8 | ) | (8 | ) | (35 | )
We estimate that approximately $1 million related to the Canadian OPEB plans and $3 million related to the United States OPEB plans as at December 31, 2019 will be reclassified from AOCI into earnings in the next 12 months. Actuarial Assumptions The weighted average assumptions made in the measurement of the accumulated postretirement benefit obligation and net periodic benefit cost of our OPEB plans are as follows:
| Canada |  | United States
| 2019 |  | 2018 |  | 2017 |  |  | 2019 |  | 2018 |  | 2017 |
Accumulated postretirement benefit obligation |  |  |  |  |  |  |
Discount rate | 3.1 | % | 3.8 | % | 3.6 | % |  | 2.8 | % | 4.0 | % | 3.5 | %
Net periodic benefit cost |  |  |  |  |  |  |
Discount rate | 3.8 | % | 3.6 | % | 4.0 | % |  | 4.0 | % | 3.3 | % | 4.0 | %
Rate of return on plan assets | N/A |  | N/A |  | N/A |  |  | 6.7 | % | 5.7 | % | 6.0 | %
Assumed Health Care Cost Trend Rates The assumed rates for the next year used to measure the expected cost of benefits are as follows:
| Canada |  | United States
| 2019 |  | 2018 |  |  | 2019 |  | 2018 |
Health care cost trend rate assumed for next year | 4.0 | % | 5.6 | % |  | 7.2 | % | 7.4 | %
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 4.0 | % | 4.4 | % |  | 4.5 | % | 4.5 | %
Year that the rate reaches the ultimate trend rate | N/A |  | 2034 |  |  | 2037 |  | 2037 |
A 1% change in the assumed health care cost trend rate would have the following effects for the year ended and as at December 31, 2019:
| Canada |  | United States
| 1% Increase | 1% Decrease |  | 1% Increase | 1% Decrease
(millions of Canadian dollars) |  |  |  |  |
Total service and interest costs | 1 |  | (1 | ) |  | 1 |  | (1 | )
Accumulated postretirement benefit obligation | 21 |  | (17 | ) |  | 19 |  | (17 | )
PLAN ASSETS We manage the investment risk of our pension funds by setting a long-term asset mix policy for each plan after consideration of: (i) the nature of pension plan liabilities; (ii) the investment horizon of the plan; (iii) the going concern and solvency funded status and cash flow requirements of the plan; (iv) our operating environment and financial situation and our ability to withstand fluctuations in pension contributions; and (v) the future economic and capital markets outlook with respect to investment returns, volatility of returns and correlation between assets. The overall expected rate of return on plan assets is based on the asset allocation targets with estimates for returns based on long-term expectations. The asset allocation targets and major categories of plan assets are as follows:
| Canada |  | United States
| Target | December 31, |  | Target | December 31,
Asset Category | Allocation | 2019 |  | 2018 |  |  | Allocation | 2019 |  | 2018 |
Equity securities | 43.4 | % | 46.4 | % | 45.8 | % |  | 45.0 | % | 55.2 | % | 52.7 | %
Fixed income securities | 30.3 | % | 31.0 | % | 38.8 | % |  | 20.0 | % | 19.8 | % | 34.9 | %
Alternatives 1 | 26.3 | % | 22.6 | % | 15.4 | % |  | 35.0 | % | 25.0 | % | 12.4 | %
1 | Alternatives include investments in private debt, private equity, infrastructure and real estate funds.
Pension Plans The following table summarizes the fair value of plan assets for our pension plans recorded at each fair value hierarchy level:
| Canada |  | United States
| Level 1 1 |  | Level 2 2 |  | Level 3 3 |  | Total |  |  | Level 1 1 |  | Level 2 2 |  | Level 3 3 |  | Total |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 184 |  | — |  | — |  | 184 |  |  | 14 |  | — |  | — |  | 14 |
Equity securities |  |  |  |  |  |  |  |  |
Canada | 165 |  | 183 |  | — |  | 348 |  |  | — |  | — |  | — |  | — |
United States | — |  | — |  | — |  | — |  |  | — |  | 93 |  | — |  | 93 |
Global | — |  | 1,429 |  | — |  | 1,429 |  |  | — |  | 516 |  | — |  | 516 |
Fixed income securities |  |  |  |  |  |  |  |  |
Government | 196 |  | 418 |  | — |  | 614 |  |  | — |  | 164 |  | — |  | 164 |
Corporate | — |  | 388 |  | — |  | 388 |  |  | — |  | 41 |  | — |  | 41 |
Alternatives 4 | — |  | — |  | 852 |  | 852 |  |  | — |  | — |  | 276 |  | 276 |
Forward currency contracts | — |  | 12 |  | — |  | 12 |  |  | — |  | — |  | — |  | — |
Total pension plan assets at fair value | 545 |  | 2,430 |  | 852 |  | 3,827 |  |  | 14 |  | 814 |  | 276 |  | 1,104 |
December 31, 2018 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 240 |  | — |  | — |  | 240 |  |  | 56 |  | — |  | — |  | 56 |
Equity securities |  |  |  |  |  |  |  |  |
Canada | 138 |  | 481 |  | — |  | 619 |  |  | — |  | — |  | — |  | — |
United States | — |  | — |  | — |  | — |  |  | — |  | 110 |  | — |  | 110 |
Global | — |  | 992 |  | — |  | 992 |  |  | — |  | 440 |  | — |  | 440 |
Fixed income securities |  |  |  |  |  |  |  |  |
Government | 218 |  | 453 |  | — |  | 671 |  |  | — |  | 265 |  | — |  | 265 |
Corporate | — |  | 457 |  | — |  | 457 |  |  | — |  | 44 |  | — |  | 44 |
Alternatives 4 | — |  | — |  | 562 |  | 562 |  |  | — |  | — |  | 130 |  | 130 |
Forward currency contracts | — |  | (18 | ) | — |  | (18 | ) |  | — |  | — |  | — |  | — |
Total pension plan assets at fair value | 596 |  | 2,365 |  | 562 |  | 3,523 |  |  | 56 |  | 859 |  | 130 |  | 1,045 |
1 | Level 1 assets include assets with quoted prices in active markets for identical assets.
2 | Level 2 assets include assets with significant observable inputs.
3 | Level 3 assets include assets with significant unobservable inputs.
4 | Alternatives include investments in private debt, private equity, infrastructure and real estate funds.
Changes in the net fair value of pension plan assets classified as Level 3 in the fair value hierarchy were as follows:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |
Balance at beginning of year | 562 |  | 340 |  |  | 130 |  | 56 |
Unrealized and realized gains | 10 |  | 77 |  |  | 13 |  | 9 |
Purchases and settlements, net | 280 |  | 145 |  |  | 133 |  | 65 |
Balance at end of year | 852 |  | 562 |  |  | 276 |  | 130 |
OPEB Plans The following table summarizes the fair value of plan assets for our OPEB plans recorded at each fair value hierarchy level:
| Canada |  | United States
| Level 1 1 |  | Level 2 2 |  | Level 3 3 |  | Total |  |  | Level 1 1 |  | Level 2 2 |  | Level 3 3 |  | Total |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | — |  | — |  | — |  | — |  |  | 2 |  | — |  | — |  | 2 |
Equity securities |  |  |  |  |  |  |  |  |  |  |
United States | — |  | — |  | — |  | — |  |  | — |  | 75 |  | — |  | 75 |
Global | — |  | — |  | — |  | — |  |  | — |  | 38 |  | — |  | 38 |
Fixed income securities |  |  |  |  |  |  |  |  |  |  |
Government | — |  | — |  | — |  | — |  |  | 40 |  | 15 |  | — |  | 55 |
Alternatives 4 | — |  | — |  | — |  | — |  |  | — |  | — |  | 18 |  | 18 |
Total OPEB plan assets at fair value | — |  | — |  | — |  | — |  |  | 42 |  | 128 |  | 18 |  | 188 |
December 31, 2018 |  |  |  |  |  |  |  |  |
Cash and cash equivalents | — |  | — |  | — |  | — |  |  | 7 |  | — |  | — |  | 7 |
Equity securities |  |  |  |  |  |  |  |  |
United States | — |  | — |  | — |  | — |  |  | — |  | 68 |  | — |  | 68 |
Global | — |  | — |  | — |  | — |  |  | — |  | 30 |  | — |  | 30 |
Fixed income securities |  |  |  |  |  |  |  |  |
Government | — |  | — |  | — |  | — |  |  | 43 |  | 28 |  | — |  | 71 |
Corporate | — |  | — |  | — |  | — |  |  | — |  | — |  | — |  | — |
Alternatives 4 | — |  | — |  | — |  | — |  |  | — |  | — |  | 5 |  | 5 |
Total OPEB plan assets at fair value | — |  | — |  | — |  | — |  |  | 50 |  | 126 |  | 5 |  | 181 |
1 | Level 1 assets include assets with quoted prices in active markets for identical assets.
2 | Level 2 assets include assets with significant observable inputs.
3 | Level 3 assets include assets with significant unobservable inputs.
4 | Alternatives includes investments in private debt, private equity, infrastructure and real estate.
Changes in the net fair value of OPEB plan assets classified as Level 3 in the fair value hierarchy were as follows:
| Canada |  | United States
December 31, | 2019 |  | 2018 |  |  | 2019 |  | 2018 |
(millions of Canadian dollars) |  |  |  |  |
Balance at beginning of year | — |  | — |  |  | 5 |  | — |
Unrealized and realized gains | — |  | — |  |  | 1 |  | — |
Purchases and settlements, net | — |  | — |  |  | 12 |  | 5 |
Balance at end of year | — |  | — |  |  | 18 |  | 5 |
EXPECTED BENEFIT PAYMENTS
Year ending December 31, | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025-2029 |
(millions of Canadian dollars) |  |  |  |  |  |  |  |  |  |  |  |
Pension |  |  |  |  |  |
Canada | 180 |  | 186 |  | 192 |  | 198 |  | 204 |  | 1,105 |
United States | 87 |  | 90 |  | 91 |  | 89 |  | 91 |  | 402 |
OPEB |  |  |  |  |  |
Canada | 12 |  | 12 |  | 12 |  | 13 |  | 13 |  | 69 |
United States | 23 |  | 22 |  | 21 |  | 20 |  | 19 |  | 82 |
EXPECTED EMPLOYER CONTRIBUTIONS In 2020, we expect to contribute approximately $104 million and $31 million to the Canadian and United States pension plans, respectively, and $12 million and $8 million to the Canadian and United States OPEB plans, respectively. RETIREMENT SAVINGS PLANS In addition to the pension and OPEB plans discussed above, we also have defined contribution employee savings plans available to both Canadian and United States employees. Employees may participate in a matching contribution where we match a certain percentage of before-tax employee contributions of up to 2.5% and 6.0% of eligible pay per pay period for Canadian and United States employees, respectively. For the years ended December 31, 2019, 2018 and 2017, pre-tax employer matching contribution costs were $4 million, $13 million and $14 million for Canadian employees and $27 million, $27 million and $31 million for United States employees, respectively.

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