XML 79 R61.htm IDEA: XBRL DOCUMENT v3.21.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2020
21. Employee Benefit Plans  
Changes in benefit obligation and plan assets, and the funded status for all plans
For the Year ended December 31
millions of Canadian dollars20202019
Change in Projected Benefit Obligation ("PBO") and Accumulated Post-retirement Benefit Obligation ("APBO")Defined benefit pension plansNon-pension benefit plansDefined benefit pension plansNon-pension benefit plans
Balance, January 1$ 2,822$ 353$ 2,650$ 350
Service cost 46 5 47 4
Plan participant contributions 7 5 8 5
Interest cost 84 10 102 14
Benefits paid (135) (27) (130) (23)
Actuarial losses 189 52 231 19
Settlements and curtailments (229) (52) (20) -
Foreign currency translation adjustment (25) (7) (66) (16)
Balance, December 31 2,759 339 2,822 353
Change in plan assets
Balance, January 1 2,593 56 2,300 49
Employer contributions 41 21 52 19
Plan participant contributions 7 5 8 5
Benefits paid (135) (27) (130) (23)
Actual return on assets, net of expenses 310 5 424 7
Settlements and curtailments (191) (7) (7) -
Foreign currency translation adjustment (20) (1) (54) (1)
Balance, December 31 2,605 52 2,593 56
Funded status, end of year $ (154)$ (287)$ (229)$ (297)
Plans with PBO/APBO in Excess of Plan Assets and Plans with Accumulated Benefit Obligation ("ABO") in Excess of Plan Assets
millions of Canadian dollars20202019
Defined benefit pension plansNon-pension benefit plansDefined benefit pension plansNon-pension benefit plans
PBO/APBO$ 2,736$ 308$ 2,797$ 323
Fair value of plan assets 2,568 - 2,557 7
Funded status$ (168)$ (308)$ (240)$ (316)

millions of Canadian dollars20202019
Defined benefit pension plansDefined benefit pension plans
ABO$ 1,519$ 2,665
Fair value of plan assets 1,419 2,557
Funded status$ (100)$ (108)
Amounts recognized in the Consolidated Balance Sheets
As atDecember 31December 31
millions of Canadian dollars20202019
Defined benefit pension plansNon-pension benefit plansDefined benefit pension plansNon-pension benefit plans
Other current liabilities$ (4)$ (19)$ (4)$ (18)
Long-term liabilities (163) (290) (206) (254)
Long-term liabilities associated with assets held for sale (1) - - (30) (44)
Other long-term assets 13 20 11 19
Amount included in deferred income tax (4) (1) (7) 1
AOCI and regulatory assets, net of tax 443 107 524 72
Net amount recognized$ 285$ (183)$ 288$ (224)
(1) On March 24, 2020, Emera sold Emera Maine, refer to note 4 for further details. As at December 31, 2019, Emera Maine's assets and liabilities were classified as held for sale.
Amounts Recognized in AOCI and Regulatory Assets
Regulatory assetsActuarial (gains) lossesPast service (gains) costs
millions of Canadian dollars
Defined Benefit Pension Plans
Balance, January 1, 2020$ 358$ 160$ (1)
Amortized in current period (25) (15) 1
Current year addition to AOCI or regulatory assets (12) 14 -
Change in current year related to sale of Emera Maine (39) - -
Change in foreign exchange rate (3) 1 -
Balance, December 31, 2020$ 279$ 160$ -
Non-pension benefits plans
Balance, January 1, 2020$ 78$ (5)$ -
Amortized in current period - - -
Current year addition to AOCI or regulatory assets 48 2 -
Change in current year related to sale of Emera Maine (13) - -
Change in foreign exchange rate (3) (1) -
Balance, December 31, 2020$ 110$ (4)$ -

20202019
Defined benefit pension plansNon-pension benefit plansDefined benefit pension plansNon-pension benefit plans
Actuarial losses (gains)$ 160$ (4)$ 160$ (5)
Past service (gains) costs - - (1) -
Regulatory assets 279 110 358 78
Total AOCI and regulatory assets before deferred income taxes 439 106 517 73
Amount included in deferred income tax assets 4 1 7 (1)
Net amount in AOCI and regulatory assets$ 443$ 107$ 524$ 72
Benefit Cost Components
As atYear ended December 31
millions of Canadian dollars20202019
Defined benefit pension plansNon-pension benefit plansDefined benefit pension plansNon-pension benefit plans
Service cost$ 46$ 5$ 47$ 4
Interest cost 84 10 102 14
Expected return on plan assets (141) (1) (147) (2)
Current year amortization of:
Actuarial losses (gains) 15 - 16 -
Past service costs (gains) (1) - (1) -
Regulatory assets (liability) 25 - 20 (5)
Settlement, curtailments - - 1 -
Total$ 28$ 14$ 38$ 11
Pension Plan Asset Allocations
Canadian Pension Plans
Asset ClassTarget Range at Market
Short-term securities0%to5%
Fixed income35%to50%
Equities:
Canadian12%to22%
Non-Canadian30%to55%

Non-Canadian Pension Plans
Asset ClassTarget Range at MarketWeighted average
Fixed income30%to50%
Equities50%to70%
Cassification of the methodology used by the Company to fair value its investments
millions of Canadian dollarsNAVLevel 1Level 2TotalPercentage
December 31, 2020
Cash and cash equivalents$-$68$-$683%
Net in-transits-(99)-(99)(4)%
Equity Securities:
Canadian equity-154-1546%
US equity -380-38015%
Other equity-243-2439%
Fixed income securities:
Government--1191195%
Corporate--1411415%
Other-10313-%
Mutual funds-88-883%
Other-(3)(4)(7)-%
Open-ended investments measured at NAV (1)801--80131%
Common collective trusts measured at NAV (2)704--70427%
Total $1,505$841$259$2,605100%

December 31, 2019
Cash and cash equivalents$ - $ 44$ - $ 442%
Net in-transits - (48) - (48) (2)%
Equity securities:
Canadian equity - 210 - 2108%
US equity - 388 - 38815%
Other equity - 176 - 1767%
Fixed Income securities:
Government - - 93 933%
Corporate - - 126 1265%
Other - 5 9 14 -
Mutual funds - 199 - 1998%
Other - (5) 1 (4) - %
Open-ended investments measured at NAV (1) 860 - - 86033%
Common collective trusts measured at NAV (2) 535 - - 53521%
Total $ 1,395$ 969$ 229$ 2,593100%
(1) NAV investments are open-ended registered and non-registered mutual funds, collective investment trusts, or pooled funds. NAV’s are calculated daily and the funds honor subscription and redemption activity regularly.
(2) The common collective trusts are private funds valued at NAV. The NAVs are calculated based on bid prices of the underlying securities. Since the prices are not published to external sources, NAV is used as a practical expedient. Certain funds invest primarily in equity securities of domestic and foreign issuers while others invest in long duration U.S. investment grade fixed income assets and seeks to increase return through active management of interest rate and credit risks. The funds honor subscription and redemption activity regularly.
Expected cash flows for defined benefit pension and other post-retirement benefit plans
millions of Canadian dollarsDefined benefit pension plansNon-pension benefit plans
Expected employer contributions
2021$ 41$ 19
Expected benefit payments
2021 140 21
2022 154 22
2023 154 22
2024 162 22
2025 170 22
2026 – 2030 914 105
Assumptions that have been used in accounting for defined benefit pension and other post-retirement benefit plans
Assumptions
The following table shows the assumptions that have been used in accounting for defined benefit pension and other post-retirement benefit plans:
20202019
(weighted average assumptions)Defined benefit pension plansNon-pension benefit plansDefined benefit pension plansNon-pension benefit plans
Benefit obligation – December 31:
Discount rate - past service2.49%2.48%3.17%3.27%
Discount rate - future service2.64%2.51%3.21%3.28%
Rate of compensation increase2.89%3.04%3.32%3.70%
Health care trend - initial (next year)-5.64%-6.15%
- ultimate -4.35%-4.38%
- year ultimate reached20382038
Benefit cost for year ended December 31:
Discount rate - past service3.17%3.28%4.05%4.30%
Discount rate - future service3.21%3.28%4.05%4.30%
Expected long-term return on plan assets6.29%3.25%6.50%2.81%
Rate of compensation increase3.34%3.70%3.30%3.67%
Health care trend - initial (current year)-5.91%-6.39%
- ultimate -4.37%-4.45%
- year ultimate reached20382035
Actual assumptions used differ by plan.