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Employee Future Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Employee Future Benefits EMPLOYEE FUTURE BENEFITS
For DBP and OPEB plans, the benefit obligation and fair value of plan assets are measured as at December 31.

For the Corporation's Canadian and Caribbean subsidiaries, actuarial valuations to determine funding contributions for pension plans are required at least every three years. The most recent valuations were as of December 31, 2021 for certain FortisBC Energy and FortisBC Electric plans; December 31, 2022 for the remaining FortisBC Energy and FortisBC Electric plans, Newfoundland Power, FortisAlberta and FortisOntario; December 31, 2023 for the Corporation; and December 31, 2024 for Caribbean Utilities.

ITC, UNS Energy and Central Hudson perform annual actuarial valuations as their funding requirements are based on maintaining minimum annual targets, all of which have been met.

The Corporation's investment policy is to ensure that the DBP and OPEB plan assets, together with expected contributions, are invested in a prudent and cost-effective manner to optimally meet the liabilities of the plans. The investment objective is to maximize returns in order to manage the funded status of the plans and minimize the Corporation's cost over the long term, as measured by both cash contributions and recognized expense.
Allocation of Plan Assets2024 Target Allocation
(weighted average %)2024 2023 
Equities46 47 46 
Fixed income46 45 45 
Real estate7 7 8 
Cash and other1 1 1 
100 100 100 

Fair Value of Plan Assets
($ millions)
Level 1 (1)
Level 2 (1)
Level 3 (1)
Total
2024
Equities773 1,168 — 1,941 
Fixed income268 1,561 — 1,829 
Real estate— — 300 300 
Cash and other23 26 — 49 
1,064 2,755 300 4,119 
2023
Equities666 1,059 — 1,725 
Fixed income232 1,447 — 1,679 
Real estate— — 291 291 
Cash and other34 14 — 48 
932 2,520 291 3,743 
(1)    See Note 26 for a description of the fair value hierarchy.

The following table reconciles the changes in the fair value of plan assets that have been measured using Level 3 inputs.
($ millions)2024 2023 
Balance, beginning of year291 282 
Return on plan assets5 (9)
Foreign currency translation 3 (1)
Purchases, sales and settlements1 19 
Balance, end of year300 291 
Funded StatusDBP PlansOPEB Plans
($ millions)2024 2023 2024 2023 
Change in benefit obligation (1)
Balance, beginning of year3,347 3,063 596 582 
Service costs74 62 25 22 
Employee contributions17 17 4 3 
Interest costs161 159 29 30 
Benefits paid(181)(169)(35)(31)
Actuarial (gains) losses (115)255 (49)(1)
Past service credits/plan amendments(3)— — — 
Foreign currency translation140 (40)33 (9)
Balance, end of year (2)
3,440 3,347 603 596 
Change in value of plan assets
Balance, beginning of year3,313 3,079 430 389 
Actual return on plan assets249 373 50 61 
Benefits paid(174)(162)(31)(26)
Employee contributions17 17 4 3 
Employer contributions57 46 14 13 
Foreign currency translation151 (40)39 (10)
Balance, end of year3,613 3,313 506 430 
Funded status173 (34)(97)(166)
Balance sheet presentation
Other assets (Note 9)395 236 156 119 
Other current liabilities (Note 13)(16)(15)(13)(13)
Other liabilities (Note 16)(206)(255)(240)(272)
173 (34)(97)(166)
(1)Amounts reflect projected benefit obligation for DBP plans and accumulated benefit obligation for OPEB plans.
(2)The accumulated benefit obligation, which excludes assumptions about future salary levels, for DBP plans was $3,144 million as at December 31, 2024 (2023 - $2,983 million).

For those DBP plans for which the projected benefit obligation exceeded the fair value of plan assets as at December 31, 2024, the obligation was $1,668 million compared to plan assets of $1,460 million (2023 - $1,940 million and $1,681 million, respectively).

For those DBP plans for which the accumulated benefit obligation exceeded the fair value of plan assets as at December 31, 2024, the obligation was $195 million compared to plan assets of $62 million (2023 - $268 million and $130 million, respectively).

For those OPEB plans for which the accumulated benefit obligation exceeded the fair value of plan assets as at December 31, 2024, the obligation was $296 million compared to plan assets of $44 million (2023 - $320 million and $36 million, respectively).

Net Benefit Cost (1)
DBP PlansOPEB Plans
($ millions)2024 2023 2024 2023 
Service costs74 62 25 22 
Interest costs161 159 29 30 
Expected return on plan assets(221)(202)(26)(22)
Amortization of actuarial gains(1)(9)(17)(19)
Amortization of past service credits/plan amendments(1)(1)(1)(1)
Regulatory adjustments(1)12 2 5 
11 21 12 15 
(1)    The non-service benefit cost components of net periodic benefit cost are included in other income, net in the consolidated statements of earnings.
The following table summarizes the accumulated amounts of net benefit cost that have not yet been recognized in earnings or comprehensive income and shows their classification on the consolidated balance sheets.
DBP PlansOPEB Plans
($ millions)2024 2023 2024 2023 
Unamortized net actuarial losses (gains)
11 12 (11)(10)
Unamortized past service costs
1 1 6 6 
Income tax (recovery) expense(3)(3)1 1 
Accumulated other comprehensive income9 10 (4)(3)
Net actuarial losses (gains)46 189 (283)(215)
Past service credits(1)(2)(2)(3)
Other regulatory deferrals12 (11)4 2 
57 176 (281)(216)
Regulatory assets (Note 8)235 254 — — 
Regulatory liabilities (Note 8)(178)(78)(281)(216)
Net regulatory assets (liabilities)57 176 (281)(216)

The following table summarizes the components of net benefit cost recognized in comprehensive income or as regulatory (liabilities) assets.
DBP PlansOPEB Plans
($ millions)2024 2023 2024 2023 
Current year net actuarial (gains) losses(1)4 (1)1 
Past service credits/plan amendments— — — (1)
Foreign currency translation— (1)— — 
Income tax recovery— (1)— — 
Total recognized in comprehensive income(1)2 (1)— 
Current year net actuarial (gains) losses(142)78 (72)(40)
Amortization of actuarial gains 1 9 16 18 
Amortization of past service credits1 2 1 1 
Foreign currency translation(2)(1)(12)2 
Regulatory adjustments23 (5)2 (5)
Total recognized in regulatory (liabilities) assets(119)83 (65)(24)

Significant AssumptionsDBP PlansOPEB Plans
(weighted average %)2024 2023 2024 2023 
Discount rate as at December 31 (1)
5.25 4.84 5.43 4.94 
Expected long-term rate of return on plan assets (2)
6.51 6.58 6.05 5.92 
Rate of compensation increase3.52 3.37 — — 
Health care cost trend increase as at December 31 (3)
— — 4.53 4.52 
(1)The discount rate used during the year was 4.84% for DBP plans (2023 - 5.36%) and 4.96% for OPEB plans (2023 - 5.39%). ITC and UNS Energy use the split discount rate methodology for determining current service and interest costs. All other subsidiaries use the single discount rate approach.
(2)Developed by management using best estimates of expected returns, volatilities and correlations for each class of asset. Best estimates are based on historical performance, future expectations and periodic portfolio rebalancing among the diversified asset classes.
(3)The projected 2025 health care cost trend rate is 6.51% and is assumed to decrease over the next 10 years to the ultimate health care cost trend rate of 4.53% in 2034 and thereafter.
Expected Benefit Payments
($ millions)DBP PlansOPEB Plans
2025$196 $33 
2026201 34 
2027206 34 
2028210 35 
2029218 36 
2030-20341,155 203 

During 2025, the Corporation expects to contribute $49 million for DBP plans and $12 million for OPEB plans.

In 2024, the Corporation expensed $58 million (2023 - $53 million) related to defined contribution pension plans.