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Retirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
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Summary of Actuarial Valuation of Plans
a)

Actuarial Valuation of Plans

 

(CAD$ in millions)

    2018     2017  
     Defined     Non-Pension     Defined     Non-Pension  
     Benefit     Post-     Benefit     Post-  
     Pension     Retirement     Pension     Retirement  
     Plans     Benefit Plans     Plans     Benefit Plans  

Defined benefit obligation

         

Balance at beginning of year

    $ 2,224     $ 455     $ 2,106     $ 538  

Current service cost

      50       19       48       24  

Past service costs arising from plan improvements

      —         —         10       —    

Benefits paid

      (139 )      (19 )      (153 )      (23 ) 

Interest expense

      73       17       79       22  

Obligation experience adjustments

      26       (30 )      27       (22 ) 

Effect from change in financial assumptions

      (127 )      (35 )      119       25  

Effect from change in demographic assumptions

      4       (20 )      —         (104 ) 

Changes in foreign exchange rates

      14       5       (12 )      (5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at end of year

      2,125       392       2,224       455  

Fair value of plan assets

         

Fair value at beginning of year

      2,510       —         2,342       —    

Interest income

      82       —         88       —    

Return on plan assets, excluding amounts included in interest income

      (84 )      —         212       —    

Benefits paid

      (139 )      (19 )      (153 )      (23 ) 

Contributions by the employer

      42       19       31       23  

Changes in foreign exchange rates

      12       —         (10 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

  

Fair value at end of year

      2,423       —         2,510       —    
  

 

 

    

 

 

    

 

 

    

 

 

  

Funding surplus (deficit)

      298       (392 )      286       (455 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Less effect of the asset ceiling

         

Balance at beginning of year

      44       —         58       —    

Interest on asset ceiling

      1       —         3       —    

Change in asset ceiling

      89       —         (17 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at end of year

      134       —         44       —    
  

 

 

    

 

 

    

 

 

    

 

 

  

Net accrued retirement benefit asset (liability)

    $ 164     $ (392 )    $ 242     $ (455 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Represented by:

         

Pension assets (Note 14)

    $ 254     $ —       $ 339     $ —    

Accrued retirement benefit liability

      (90 )      (392 )      (97 )      (455 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net accrued retirement benefit asset (liability)

    $ 164     $ (392 )    $ 242     $ (455 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

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:

 

     2018     2017  
           Non-Pension           Non-Pension  
     Defined     Post-     Defined     Post-  
     Benefit     Retirement     Benefit     Retirement  
     Pension     Benefit     Pension     Benefit  
     Plans     Plans     Plans     Plans  

Discount rate

      3.78 %      3.88 %      3.36 %      3.44 % 

Rate of increase in future compensation

      3.25 %      3.25 %      3.25 %      3.25 % 

Medical trend rate

      —         5.00 %      —         5.00 % 

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:

 

     2018  
     Effect on Defined Benefit Obligation  
     Change in
Assumption		     Increase in
Assumption		     Decrease in
Assumption		  

Discount rate

      1.0 %      Decrease by 12 %      Increase by 14 % 

Rate of increase in future compensation

      1.0 %      Increase by 1 %      Decrease by 1 % 

Medical cost claim trend rate

      1.0 %      Increase by 1 %      Decrease by 1 % 
     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 % 

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:

 

     2018      2017  
     Male      Female      Male      Female  

Retiring at the end of the reporting period

      85.2 years        87.7 years        85.2 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, 2018 and 2017 are as follows:

 

(CAD$ in millions)

    2018     2017  
     Quoted      Unquoted      Total %     Quoted      Unquoted      Total %  

Equity securities

    $ 850      $ —          35 %    $ 1,184      $ —          47 % 

Debt securities

    $ 1,225      $ —          51 %    $ 935      $ —          37 % 

Real estate and other

    $ 91      $ 257        14 %    $ 74      $ 317        16 %