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POST-EMPLOYMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2022
Employee Benefits [Abstract]  
Disclosure of defined benefit plans actuarial assumptions and contributions
Principal actuarial assumptions
20222021
Weighted average of significant assumptions:
 
Defined benefit obligation
Discount rate5.3 %3.3 %
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 rate3.3 %2.7 %
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)Note20222021
Plan assets, at fair value2,770 3,198 
Accrued benefit obligations(2,430)(3,171)
Surplus of plan assets over accrued benefit obligations340 27 
Effect of asset ceiling limit(42)(9)
Net deferred pension asset298 18 
Consists of:
Deferred pension asset298 21 
Deferred pension liability22 — (3)
Net deferred pension asset298 18 
Below is a summary of the actual contributions to the plans.
Years ended December 31
(In millions of dollars)20222021
Employer contribution134 177 
Employee contribution31 32 
Total contribution165 209 
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)20222021
 
Discount rate
Impact of 0.5% increase
(163)(251)
Impact of 0.5% decrease
183 285 
 
Rate of future compensation increase
Impact of 0.25% increase
10 17 
Impact of 0.25% decrease
(10)(17)
 
Mortality rate
Impact of 1 year increase
42 67 
Impact of 1 year decrease
(45)(72)
Disclosure of net defined benefit liability (asset)
Below is a summary of our pension fund assets.
Years ended December 31
(In millions of dollars)20222021
Plan assets, beginning of year3,198 2,791 
Interest income108 78 
Remeasurements, recognized in other comprehensive income and equity
(604)223 
Contributions by employees31 32 
Contributions by employer134 177 
Benefits paid(93)(99)
Administrative expenses paid from plan assets(4)(4)
Plan assets, end of year2,770 3,198 

Below is a summary of the accrued benefit obligations arising from funded obligations.
Years ended December 31
(In millions of dollars)20222021
Accrued benefit obligations, beginning of year3,171 3,365 
Current service cost124 156 
Interest cost103 89 
Benefits paid(93)(99)
Contributions by employees31 32 
Remeasurements, recognized in other comprehensive income and equity(906)(372)
Accrued benefit obligations, end of year2,430 3,171 
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)20222021
Plan cost:
Current service cost124 156 
Net interest cost(5)11 
Net pension expense119 167 
Administrative expense4 4 
Total pension cost recognized in net income123 171 
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)20222021
Interest income on plan assets(108)(78)
Interest cost on plan obligation103 89 
Net interest cost, recognized in finance costs(5)11 

The remeasurement recognized in the Consolidated Statements of Comprehensive Income is determined as follows:
Years ended December 31
(In millions of dollars)20222021
(Loss) return on plan assets (excluding interest income)(604)223 
Change in financial assumptions942 390 
Effect of experience adjustments(36)(18)
Change in asset ceiling(33)(9)
Remeasurement gain, recognized in other comprehensive income and equity269 586 

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)20222021
Accrued benefit obligation, beginning of year96 92 
Pension expense, recognized in employee salaries and benefits expense13 12 
Net interest cost, recognized in finance costs4 3 
Remeasurements, recognized in other comprehensive income(24)(7)
Benefits paid(6)(4)
Accrued benefit obligation, end of year83 96 
Disclosure of fair value of plan assets
Plan assets comprise mainly 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)20222021
Equity securities1,281 1,879 
Debt securities1,474 1,302 
Other - cash15 17 
Total fair value of plan assets2,770 3,198 
ALLOCATION OF PLAN ASSETS
 Allocation of plan assetsTarget asset allocation percentage
20222021
Equity securities:
Domestic9.6 %11.8 %
8% to 18%
International36.7 %47.0 %
37% to 67%
Debt securities53.2 %40.7 %
25% to 45%
Other - cash0.5 %0.5 %
0% to 2%
Total100.0 %100.0 %