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Retirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Summary of Actuarial Valuation of Plans
a)

Actuarial Valuation of Plans

 

     2017      2016  

(CAD$ in millions)

    Defined
Benefit
Pension
Plans		      Non-Pension
Post-
Retirement
Benefit Plans		      Defined
Benefit
Pension
Plans		      Non-Pension
Post-
Retirement
Benefit Plans		  

Defined benefit obligation

            

Balance at beginning of year

    $ 2,106      $ 538      $ 2,112      $ 518  

Current service cost

      48        24        46        21  

Past service costs arising from plan improvements

      10        —          7        1  

Benefits paid

      (153 )       (23 )       (151 )       (19 ) 

Interest expense

      79        22        79        21  

Obligation experience adjustments

      27        (22 )       (8 )       2  

Effect from change in financial assumptions

      119        25        33        8  

Effect from change in demographic assumptions

      —          (104 )       (6 )       (13 ) 

Changes in foreign exchange rates

      (12 )       (5 )       (6 )       (1 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance at end of year

      2,224        455        2,106        538  

Fair value of plan assets

            

Fair value at beginning of year

      2,342        —          2,312        —    

Interest income

      88        —          87        —    

Return on plan assets, excluding amounts included in interest income

      212        —          63        —    

Benefits paid

      (153 )       (23 )       (151 )       (19 ) 

Contributions by the employer

      31        23        36        19  

Changes in foreign exchange rates

      (10 )       —          (5 )       —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Fair value at end of year

      2,510        —          2,342        —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Funding surplus (deficit)

      286        (455 )       236        (538 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Less effect of the asset ceiling

            

Balance at beginning of year

      58        —          36        —    

Interest on asset ceiling

      3        —          1        —    

Change in asset ceiling

      (17 )       —          21        —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Balance at end of year

      44        —          58        —    
  

 

 

     

 

 

     

 

 

     

 

 

  

Net accrued retirement benefit asset (liability)

    $ 242      $ (455 )     $ 178      $ (538 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Represented by:

            

Pension assets (Note 13)

    $ 339      $ —        $ 283      $ —    

Accrued retirement benefit liability

      (97 )       (455 )       (105 )       (538 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  

Net accrued retirement benefit asset (liability)

    $ 242      $ (455 )     $ 178      $ (538 ) 
  

 

 

     

 

 

     

 

 

     

 

 

  
Summary of Weighted Average Assumptions Used to Calculate the Defined Benefit Obligation

Weighted average assumptions used to calculate the defined benefit obligation at the end of each year are as follows:

 

     2017     2016  
     Defined
Benefit
Pension
Plans		     Non-Pension
Post-
Retirement
Benefit
Plans		     Defined
Benefit
Pension
Plans		     Non-Pension
Post-
Retirement
Benefit
Plans		  

Discount rate

      3.36 %      3.44 %      3.74 %      3.79 % 

Rate of increase in future compensation

      3.25 %      3.25 %      3.25 %      3.25 % 

Initial medical trend rate

      —         5.00 %      —         5.50 % 

Ultimate medical trend rate

      —         5.00 %      —         5.00 % 

Years to reach ultimate medical trend rate

      —         —         —         2  
Summary of Sensitivity of Defined Benefit Obligation to Changes in Weighted Average Assumptions
c)

Sensitivity of the defined benefit obligation to changes in the weighted average assumptions:

 

     2017  
     Effect on Defined Benefit Obligation  
     Change in
Assumption		     Increase in
Assumption		     Decrease in
Assumption		  

Discount rate

      1.0 %      Decrease by 15 %      Increase by 17 % 

Rate of increase in future compensation

      1.0 %      Increase by 1 %      Decrease by 1 % 

Medical cost claim trend rate

      1.0 %      Increase by 2 %      Decrease by 2 % 

 

     2016  
     Effect on Defined Benefit Obligation  
     Change in
Assumption		     Increase in
Assumption		     Decrease in
Assumption		  

Discount rate

      1.0 %      Decrease by 13 %      Increase by 15 % 

Rate of increase in future compensation

      1.0 %      Increase by 1 %     Decrease by 1 % 

Medical cost claim trend rate

      1.0 %      Increase by 2 %      Decrease by 2 % 
Summary of Life Expectancies for Employee Retiring at Age 65

Assumptions regarding future mortality are set based on management’s best estimate in accordance with published mortality tables and expected experience. These assumptions translate into the following average life expectancies for an employee retiring at age 65:

 

     2017      2016  
     Male      Female      Male      Female  

Retiring at the end of the reporting period

      85.2 years        87.6 years        85.1 years        87.6 years  

Retiring 20 years after the end of the reporting period

      86.3 years        88.6 years        86.3 years        88.6 years  
Summary of Defined Benefit Pension Plan Assets

The defined benefit pension plan assets at December 31, 2017 and 2016 are as follows:

 

     2017     2016  

(CAD$ in millions)

    Quoted      Unquoted      Total
%		     Quoted      Unquoted      Total
%		  

Equity securities

    $ 1,184      $ —          47 %    $ 1,124      $ —          48 % 

Debt securities

    $ 935      $ —          37 %    $ 850      $ —          36 % 

Real estate and other

    $ 74      $ 317        16 %    $ 49      $ 319        16 %