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POST-EMPLOYMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2020
Employee Benefits [Abstract]  
Disclosure of defined benefit plans actuarial assumptions and contributions
Principal actuarial assumptions
20202019
Weighted average of significant assumptions:
 
Defined benefit obligation
Discount rate2.7 %3.2 %
Rate of compensation increase
1.0% to 4.5%, based on employee age
1.0% to 4.5%, based on employee age
Mortality rateCPM2014Priv with Scale CPM-BCPM2014Priv with Scale CPM-B
Pension expense
Discount rate3.2 %3.9 %
Rate of compensation increase
1.0% to 4.5%, based on employee age
1.0% to 4.5%, based on employee age
Mortality rateCPM2014Priv with Scale CPM-BCPM2014Priv with Scale CPM-B
Below is a summary of the estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide these benefits for our funded defined benefit pension plans.
As at December 31
(In millions of dollars)Note20202019
Plan assets, at fair value2,791 2,449 
Accrued benefit obligations(3,365)(2,900)
Net deferred pension liability(574)(451)
Consists of:
Deferred pension asset16 14 
Deferred pension liability22 (590)(465)
Net deferred pension liability(574)(451)
Below is a summary of the actual contributions to the plans.
Years ended December 31
(In millions of dollars)20202019
Employer contribution150 179 
Employee contribution34 36 
Total contribution184 215 
Disclosure of sensitivity of key assumptions
Sensitivity of key assumptions
In the sensitivity analysis shown below, we determine the defined benefit obligation for our funded plans using the same method used to calculate the defined benefit obligation we recognize on the Consolidated Statements of Financial Position. We calculate sensitivity by changing one assumption while holding the others constant. This leads to limitations in the analysis as the actual change in defined benefit obligation will likely be different from that shown in the table, since it is likely that more than one assumption will change at a time, and that some assumptions are correlated.
 Increase (decrease) in accrued benefit obligation
(In millions of dollars)20202019
 
Discount rate
Impact of 0.5% increase
(279)(233)
Impact of 0.5% decrease
319 266 
 
Rate of future compensation increase
Impact of 0.25% increase
20 17 
Impact of 0.25% decrease
(20)(17)
 
Mortality rate
Impact of 1 year increase
76 61 
Impact of 1 year decrease
(80)(64)
Disclosure of net defined benefit liability (asset)
Below is a summary of our pension fund assets.
Years ended December 31
(In millions of dollars)20202019
Plan assets, beginning of year2,449 1,965 
Interest income81 81 
Remeasurements, recognized in other comprehensive income and equity
163 277 
Contributions by employees34 36 
Contributions by employer150 179 
Benefits paid(82)(86)
Administrative expenses paid from plan assets(4)(3)
Plan assets, end of year2,791 2,449 

Below is a summary of the accrued benefit obligations arising from funded obligations.
Years ended December 31
(In millions of dollars)20202019
Accrued benefit obligations, beginning of year2,900 2,330 
Current service cost146 121 
Past service recovery— (21)
Interest cost91 89 
Benefits paid(82)(86)
Contributions by employees34 36 
Remeasurements, recognized in other comprehensive income and equity276 431 
Accrued benefit obligations, end of year3,365 2,900 
Below is a summary of our net pension expense. Net interest cost is included in finance costs; other pension expenses are included in salaries and benefits expense in operating costs on the Consolidated Statements of Income.
Years ended December 31
(In millions of dollars)20202019
Plan cost:
Current service cost146 121 
Past service recovery— (21)
Net interest cost10 8 
Net pension expense156 108 
Administrative expense4 4 
Total pension cost recognized in net income160 112 
Net interest cost, a component of the plan cost above, is included in finance costs and is outlined as follows:
Years ended December 31
(In millions of dollars)20202019
Interest income on plan assets(81)(81)
Interest cost on plan obligation91 89 
Net interest cost, recognized in finance costs10 8 

The remeasurement recognized in the Consolidated Statements of Comprehensive Income is determined as follows:
Years ended December 31
(In millions of dollars)20202019
Return on plan assets (excluding interest income)163 277 
Change in financial assumptions(272)(401)
Effect of experience adjustments(4)(30)
Remeasurement loss, recognized in other comprehensive income and equity(113)(154)

We also provide supplemental unfunded defined benefit pensions to certain executives. Below is a summary of our accrued benefit obligations, pension expense included in employee salaries and benefits, net interest cost, remeasurements, and benefits paid.
Years ended December 31
(In millions of dollars)20202019
Accrued benefit obligation, beginning of year73 67 
Pension expense, recognized in employee salaries and benefits expense13 2 
Net interest cost, recognized in finance costs3 3 
Remeasurements, recognized in other comprehensive income8 5 
Benefits paid(5)(4)
Accrued benefit obligation, end of year92 73 
Disclosure of fair value of plan assets
Plan assets are comprised mainly of pooled funds that invest in common stocks and bonds that are traded in an active market. Below is a summary of the fair value of the total pension plan assets by major category.
As at December 31
(In millions of dollars)20202019
Equity securities1,689 1,472 
Debt securities1,087 967 
Other - cash15 10 
Total fair value of plan assets2,791 2,449 
ALLOCATION OF PLAN ASSETS
 Allocation of plan assetsTarget asset allocation percentage
20202019
Equity securities:
Domestic11.9 %12.0 %
8% to 18%
International48.6 %48.1 %
37% to 67%
Debt securities39.0 %39.5 %
25% to 45%
Other - cash0.5 %0.4 %
0% to 2%
Total100.0 %100.0 %