v3.22.2.2
Employee benefits - Pension and other post-employment benefits (Tables)
 12 Months Ended
Oct. 31, 2022
Text Block [Abstract]  
Analysis of Financial Position Related to Pension and Other Post-Employment Benefit Plans
The following table presents the financial position related to all of our material pension and other post-employment benefit plans worldwide, including executive retirement arrangements.
 
   
    As at    
       
   
October 31, 2022
         October 31, 2021  
           
(Millions of Canadian dollars)
  
Defined benefit
pension plans
    
Other post-
employment
benefit plans
          Defined benefit
pension plans		     Other post-
employment
benefit plans		  
Canada
                                    
Fair value of plan assets
  
$
14,310
 
  
$
–
 
  
 
   $ 16,698     $ –  
Present value of defined benefit obligation
  
 
11,271
 
  
 
1,387
 
  
 
     14,403       1,703  
Net surplus (deficit)
  
$
3,039
 
  
$
(1,387
) 
  
 
   $ 2,295     $ (1,703 ) 
International
                  
 
                
Fair value of plan assets
  
$
716
 
  
$
–
 
  
 
   $ 1,005     $ –  
Present value of defined benefit obligation
  
 
622
 
  
 
75
 
  
 
     912       77  
Net surplus (deficit)
  
$
94
 
  
$
(75
) 
  
 
   $ 93     $ (77 ) 
Total
                  
 
                
Fair value of plan assets
  
$
15,026
 
  
$
–
 
  
  $ 17,703     $ –  
Present value of defined benefit obligation
  
 
11,893
 
  
 
1,462
 
  
 
     15,315       1,780  
Total net surplus (deficit)
  
$
3,133
 
  
$
(1,462
) 
  
 
   $ 2,388     $ (1,780 ) 
Effect of asset ceiling
  
 
(8
) 
  
 
–
 
  
 
     (6 )      –  
Total net surplus (deficit), net of effect of asset ceiling
  
$
3,125
 
  
$
(1,462
) 
  
 
   $ 2,382     $ (1,780 ) 
Amounts recognized in our Consolidated Balance Sheets
                  
 
                
Employee benefit assets
  
$
3,331
 
  
$
–
 
  
 
   $ 2,640     $ –  
Employee benefit liabilities
  
 
(206
) 
  
 
(1,462
) 
  
 
     (258 )      (1,780 ) 
Total net surplus (deficit), net of effect of asset ceiling
  
$
3,125
 
  
$
(1,462
) 
  
 
   $ 2,382     $ (1,780 ) 
Analysis of Movement in Financial Position Related to Pension and Other Post-Employment Benefit Plans
The following table presents an analysis of the movement in the financial position related to all of our material pension and other post-employment benefit plans worldwide, including executive retirement arrangements.
 
   
    As at or for the year ended  
       
   
October 31, 2022
         October 31, 2021  
           
(Millions of Canadian dollars)
  
Defined benefit
pension plans 
(1)
    
Other post-
employment
benefit plans
          Defined benefit
pension plans 
(1)
     Other post-
employment
benefit plans		  
Fair value of plan assets at beginning of period
  
$
17,703
 
  
$
–
 
       $ 16,024     $ –  
Interest income
  
 
580
 
  
 
–
 
         432       –  
Remeasurements
                                    
Return on plan assets (excluding interest income)
  
 
(2,931
) 
  
 
–
 
         1,614       –  
Change in foreign currency exchange rate
  
 
(62
) 
  
 
–
 
         (21 )      –  
Contributions – Employer
  
 
177
 
  
 
79
 
         221       75  
Contributions – Plan participant
  
 
45
 
  
 
20
 
         46       19  
Payments
  
 
(610
) 
  
 
(99
) 
         (594 )      (94 ) 
Payments – amount paid in respect of settlements
  
 
3
 
  
 
–
 
         (2 )      –  
Business combinations/Disposals
  
 
135
      
–
  
      (4 )     
–
Other
  
 
(14
) 
  
 
–
 
  
 
     (13 )      –  
Fair value of plan assets at end of period
  
$
15,026
 
  
$
–
 
  
 
   $ 17,703     $ –  
Benefit obligation at beginning of period
  
$
15,315
 
  
$
1,780
 
       $ 16,351     $ 1,953  
Current service costs
  
 
308
 
  
 
42
 
         359       46  
Past service costs
  
 
(1
) 
  
 
2
 
         –       (1 ) 
Gains and losses on settlements
  
 
(3
) 
  
 
–
 
         2       –  
Interest expense
  
 
496
 
  
 
63
 
         439       57  
Remeasurements
                                    
Actuarial losses (gains) from demographic assumptions
  
 
(2
) 
  
 
(1
) 
         –       (6 ) 
Actuarial losses (gains) from financial assumptions
  
 
(3,797
) 
  
 
(341
) 
         (1,253 )      (184 ) 
Actuarial losses (gains) from experience adjustments
  
 
83
 
  
 
(9
) 
         (5 )      (2 ) 
Change in foreign currency exchange rate
  
 
(47
) 
  
 
6
 
         (24 )      (7 ) 
Contributions – Plan participant
  
 
45
 
  
 
20
 
         46       19  
Payments
  
 
(610
) 
  
 
(99
) 
         (594 )      (94 ) 
Payments – amount paid in respect of settlements
  
 
3
 
  
 
–
 
         (2 )      –  
Business combinations/Disposals
  
 
103
 
  
 
(1
) 
  
 
     (4 )      (1 ) 
Benefit obligation at end of period
  
$
11,893
 
  
$
1,462
 
  
 
   $ 15,315     $ 1,780  
Unfunded obligation
  
$
23
 
  
$
1,462
 
  
  $ 26     $ 1,633  
Wholly or partly funded obligation
  
 
11,870
 
  
 
–
 
  
 
     15,289       147  
Total benefit obligation
  
$
11,893
 
  
$
1,462
 
  
 
   $ 15,315     $ 1,780  
 
(1)   For pension plans with funding deficits, the benefit obligations and fair value of plan assets as at October 31, 2022 were $323 million and $117 million, respectively (October 31, 2021 – $413 million and $155 million, respectively).
Summary of Composition of Pension and Other Post-Employment Benefit Expense
The following table presents the composition of our pension and other post-employment benefit expense related to our material pension and other post-employment benefit plans worldwide.
 
      For the year ended  
     Pension plans          Other post-employment
benefit plans		  
           
(Millions of Canadian dollars)
   
October 31
2022
     
October 31
2021
          
October 31
2022
     
October 31
2021
  
Current service costs
   
$
308
 
    $ 359         
$
42
 
    $ 46  
Past service costs
   
 
(1
) 
      –         
 
2
 
      (1 ) 
Gains and losses on settlements
   
 
(3
) 
      2         
 
–
 
      –  
Net interest expense (income)
   
 
(84
) 
      7         
 
63
 
      57  
Remeasurements of other long term benefits
   
 
–
 
      –         
 
(26
) 
      (12 ) 
Administrative expense
   
 
14
 
      13    
 
   
 
–
 
      –  
Defined benefit pension expense
   
$
234
 
    $ 381         
$
81
 
    $ 90  
Defined contribution pension expense
   
 
250
 
      235    
 
   
 
–
 
      –  
 
   
$
484
 
    $ 616    
 
   
$
81
 
    $ 90  
Summary of Composition of Remeasurements Recorded in OCI related to pension and other post employment benefit plans
Pension and other post-employment benefit remeasurements
The following table presents the composition of our remeasurements recorded in OCI related to our material pension and other post-employment benefit plans worldwide.
 
      For the year ended  
     Defined benefit pension
plans		           
Other post-employment

benefit plans		  
           
(Millions of Canadian dollars)
   
October 31
2022
     
October 31
2021
            
October 31
2022
     
October 31
2021
  
Actuarial (gains) losses:
                                            
Changes in demographic assumptions
   
$
(2
) 
    $ –             
$
(1
) 
    $ (6 ) 
Changes in financial assumptions
   
 
(3,797
) 
      (1,253 )            
 
(319
) 
      (177 ) 
Experience adjustments
   
 
83
 
      (5 )            
 
(5
) 
      3  
Return on plan assets (excluding interest based on discount rate)
   
 
2,931
 
      (1,614 )            
 
–
 
      –  
Change in asset ceiling (excluding interest income)
   
 
2
 
      5    
 
 
 
   
 
–
 
      –  
 
   
$
(783
) 
    $ (2,867 )   
 
 
 
   
$
(325
) 
    $ (180 ) 
Asset Allocation of Defined Benefit Pension Plans
Asset allocation of defined benefit pension plans
(1)
,
(2)
 
    
As at  
  
   
October 31, 2022
           
October 31, 2021
  
               
(Millions of Canadian dollars, except percentages)
  
Fair value
     
Percentage
of total
plan assets
    
Quoted
in active
market 
(3)
             Fair value      Percentage
of total
plan assets		     Quoted
in active
market 
(3)
  
Equity securities
                                                           
Domestic
  
$
1,469
 
   
 
10
% 
  
 
100
% 
            $ 1,879        11 %      100 % 
Foreign
  
 
2,799
 
   
 
19
 
  
 
100
 
              4,202        24       100  
Debt securities
                                                           
Domestic government bonds
(4)
  
 
3,489
 
   
 
23
 
  
 
–
 
              3,766        21       –  
Foreign government bonds
  
 
114
 
   
 
1
 
  
 
–
 
              71        –       –  
Corporate and other bonds
  
 
3,171
 
   
 
21
 
  
 
–
 
              3,844        22       –  
Alternative investments and other
  
 
3,984
 
   
 
26
 
  
 
8
 
  
 
 
 
      3,941        22       12  
               
 
  
$
15,026
 
   
 
100
% 
  
 
30
% 
  
 
 
 
    $ 17,703        100 %      37 % 
 
(1)   The asset allocation is based on the underlying investments held directly and indirectly through the funds as this is how we manage our investment policy and strategies.
(2)   Represents the total plan assets held in our Canadian and International pension plans.
(3)   If our assessment of whether or not an asset was quoted in an active market was based on direct investments, 34% of our total plan assets would be classified as quoted in an active market (October 31, 2021 – 41%).
(4)   Amounts are net of securities sold under repurchase agreements.
Maturity Profile of Defined Benefit Pension Plan Obligation
Maturity profile
The following table presents the maturity profile of our defined benefit pension plan obligation.
 
(Millions of Canadian dollars, except participants and years)  
As at October 31, 2022
  
 
Canada
    
International
    
Total
  
Number of plan participants
  
 
66,616
 
  
 
6,043
 
  
 
72,659
 
Actual benefit payments 2022
  
$
585
 
  
$
22
 
  
$
607
 
Benefits expected to be paid 2023
  
 
643
 
  
 
35
 
  
 
678
 
Benefits expected to be paid 2024
  
 
668
 
  
 
34
 
  
 
702
 
Benefits expected to be paid 2025
  
 
691
 
  
 
33
 
  
 
724
 
Benefits expected to be paid 2026
  
 
713
 
  
 
35
 
  
 
748
 
Benefits expected to be paid 2027
  
 
733
 
  
 
34
 
  
 
767
 
Benefits expected to be paid 2028-2032
  
 
3,907
 
  
 
189
 
  
 
4,096
 
Weighted average duration of defined benefit payments
  
 
12.4 years
    
 
15.1 years
    
 
12.5 years
  
Pension and Other Post-Employment Benefits -Weighted Average Assumptions to Determine Benefit Obligation
Weighted average assumptions to determine benefit obligation
 
      As at      
     Defined benefit pension
plans		            Other post-employment
benefit plans		  
           
     
October 31
2022
     
October 31
2021
            
October 31
2022
     
October 31
2021
  
Discount rate
   
 
5.4%
 
      3.3%             
 
5.5%
 
      3.6%  
Rate of increase in future compensation
   
 
3.0%
 
      3.0%             
 
n.a.
 
      n.a.  
Healthcare cost trend rates
(1)
                                            
– Medical
   
 
n.a.
 
      n.a.             
 
3.5%
 
      3.4%  
– Dental
   
 
n.a.
 
      n.a.    
 
 
 
   
 
3.1%
 
      3.1%  
 
(1)   For our other post-employment benefit plans, the assumed trend rates used to measure the expected benefit costs of the defined benefit obligations are also the ultimate trend rates.
n.a.   not applicable
Mortality Assumptions to Determine Defined Benefit Pension Plan Obligation The following table summarizes the mortality assumptions used for material plans.
 
     As at    
   
October 31, 2022
           October 31, 2021  
   
Life expectancy at 65 for a member currently at
           Life expectancy at 65 for a member currently at  
   
Age 65
          
Age 45
           Age 65           Age 45  
                       
(In years)
  
Male
    
Female
           
Male
    
Female
            Male     Female            Male     Female  
Country
                                                                                        
Canada
  
 
23.9
 
  
 
24.2
 
          
 
24.8
 
  
 
25.1
 
             23.8       24.2               24.8       25.1  
United Kingdom
  
 
23.4
 
  
 
25.4
 
  
 
 
 
  
 
24.7
 
  
 
26.8
 
  
 
 
 
     23.6       25.4    
 
 
 
     25.3       27.2  
Sensitivity Analysis of Key Assumptions The following table presents the sensitivity analysis of key assumptions for 2022.
 
    
Increase (decrease)
in obligation
  
     
(Millions of Canadian dollars)
  
Defined benefit
pension plans
    
Other post-
employment
benefit plans
  
Discount rate
                
Impact of 100 bps increase in discount rate
  
$
(1,348
) 
  
$
(160
) 
Impact of 100 bps decrease in discount rate
  
 
1,649
 
  
 
198
 
Rate of increase in future compensation
                
Impact of 50 bps increase in rate of increase in future compensation
  
 
29
 
  
 
–
 
Impact of 50 bps decrease in rate of increase in future compensation
  
 
(31
) 
  
 
–
 
Mortality rate
                
Impact of an increase in longevity by one additional year
  
 
287
 
  
 
20
 
Healthcare cost trend rate
                
Impact of 100 bps increase in healthcare cost trend rate
  
 
n.a.
 
  
 
57
 
Impact of 100 bps decrease in healthcare cost trend rate
  
 
n.a.
 
  
 
(48
) 
 
n.a.    not   applicable