v3.25.4
Employee Future Benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Employee Future Benefits [Abstract]  
Summary of Pension and Retiree Welfare Plans The following tables present the reconciliation of defined benefit obligation and fair value of plan assets for the pension plans and
retiree welfare plans.
Pension plans
Retiree welfare plans
For the years ended December 31,
2025
2024
2025
2024
Changes in defined benefit obligation:
Opening balance, January 1
$3,826
$3,789
$428
$450
Current service cost
44
44
-
-
Past service cost – amendment
-
-
-
-
Interest cost
184
176
21
21
Plan participants’ contributions
-
-
2
2
Actuarial losses (gains) due to:
Experience
(17)
2
(10)
(16)
Demographic assumption changes
(24)
-
(6)
-
Economic assumption changes
19
(101)
(3)
(19)
Benefits paid
(314)
(303)
(37)
(40)
Impact of changes in foreign exchange rates
(116)
219
(16)
30
Defined benefit obligation, December 31
$3,602
$3,826
$379
$428
Pension plans
Retiree welfare plans
For the years ended December 31,
2025
2024
2025
2024
Changes in plan assets:
Fair value of plan assets, opening balance, January 1
$3,820
$3,706
$553
$526
Interest income
188
174
29
26
Return on plan assets (excluding interest income)
27
(31)
13
(19)
Employer contributions
55
57
13
12
Plan participants’ contributions
-
-
2
2
Benefits paid
(314)
(303)
(37)
(40)
Administration costs
(10)
(8)
(2)
(2)
Impact of changes in foreign exchange rates
(123)
225
(26)
48
Fair value of plan assets, December 31
$3,643
$3,820
$545
$553
Summary of Amounts Recognized in Consolidated Statements of Financial Position The following table presents the deficit (surplus) and net defined benefit liability (asset) for the pension plans and retiree welfare
plans.
Pension plans
Retiree welfare plans
As at December 31,
2025
2024
2025
2024
Development of net defined benefit liability
Defined benefit obligation
$3,602
$3,826
$379
$428
Fair value of plan assets
3,643
3,820
545
553
Deficit (surplus)
(41)
6
(166)
(125)
Effect of asset limit(1)
46
44
-
-
Deficit (surplus) and net defined benefit liability (asset)
5
50
(166)
(125)
Deficit (surplus) is comprised of:
Funded or partially funded plans
(488)
(483)
(259)
(221)
Unfunded plans
493
533
93
96
Deficit (surplus) and net defined benefit liability (asset)
$5
$50
$(166)
$(125)
(1)The asset limit relates to a registered pension plan in Canada. The surplus in that plan is above the present value of economic benefits that can be derived by the
Company through reductions in future contributions. For other funded pension plans in surplus position, the present value of the economic benefits available in the
form of reductions in future contributions to the plans remains greater than the current surplus.
Summary of Disaggregation of Defined Benefit Obligation The following table presents components of the defined benefit obligation between active members and inactive and retired
members.
U.S. plans
Canadian plans
Pension plans
Retiree welfare plans
Pension plans
Retiree welfare plans
As at December 31,
2025
2024
2025
2024
2025
2024
2025
2024
Active members
$573
$578
$7
$8
$100
$106
$-
$-
Inactive and retired members
1,765
1,922
279
324
1,164
1,220
93
96
Total
$2,338
$2,500
$286
$332
$1,264
$1,326
$93
$96
Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category The following tables present major categories of plan assets and the allocation to each category.
U.S. plans(1)
Canadian plans(2)
Pension plans
Retiree welfare plans
Pension plans
Retiree welfare plans
As at December 31, 2025
Fair value
% of total
Fair value
% of total
Fair value
% of total
Fair value
% of total
Cash and cash equivalents
$33
1%
$13
2%
$11
1%
$-
-%
Public equity securities(3)
326
14%
48
9%
200
17%
-
-%
Public debt securities
1,423
57%
472
87%
954
82%
-
-%
Other investments(4)
696
28%
12
2%
1
-%
-
-%
Total
$2,478
100%
$545
100%
$1,166
100%
$-
-%
(1)The U.S. pension and retiree welfare plan assets have daily quoted prices in active markets, except for the private debt, infrastructure, private equity, real estate,
timberland and agriculture assets. In the aggregate, the latter assets represent approximately 16% of all U.S. pension and retiree welfare plan assets as at
December 31, 2025 (2024 – 16%).
(2)All the Canadian pension plan assets have daily quoted prices in active markets, except for group annuity contract assets that represent approximately 0.1%
(approximately $1 (2024 – $1)) of all Canadian pension plan assets as at December 31, 2025 (2024 – 0.1%).
(3)Equity securities include direct investments in Manulife common shares of $2.4 (2024 – $2.1) in the U.S. retiree welfare plan.
(4)Other U.S. plan assets include investments in private debt, infrastructure, private equity, real estate, timberland and agriculture assets and managed futures. Other
Canadian pension plan assets include investments in the group annuity contracts.
U.S. plans(1)
Canadian plans(2)
Pension plans
Retiree welfare plans
Pension plans
Retiree welfare plans
As at December 31, 2024
Fair value
% of total
Fair value
% of total
Fair value
% of total
Fair value
% of total
Cash and cash equivalents
$35
1%
$23
4%
$11
1%
$-
-%
Public equity securities(3)
346
14%
41
7%
205
17%
-
-%
Public debt securities
1,513
57%
476
87%
968
82%
-
-%
Other investments(4)
741
28%
13
2%
1
-%
-
-%
Total
$2,635
100%
$553
100%
$1,185
100%
$-
-%
Summary of Components of Net Benefit Cost for Pension Plans and Retiree Welfare Plans The following table presents components of the net benefit cost for the pension plans and retiree welfare plans.
Pension plans
Retiree welfare plans
For the years ended December 31,
2025
2024
2025
2024
Defined benefit current service cost(1)
$44
$44
$-
$-
Defined benefit administrative expenses
10
8
2
2
Past service cost – plan amendments and curtailments
-
-
-
-
Service cost
54
52
2
2
Interest on net defined benefit (asset) liability
(1)
4
(8)
(5)
Defined benefit cost
53
56
(6)
(3)
Defined contribution cost
101
97
-
-
Net benefit cost
$154
$153
$(6)
$(3)
(1)There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The re-measurement gain or loss on these plans is
due to the volatility of discount rates and investment returns.
Summary of Re-measurement Effects Recognized in Other Comprehensive Income The following table presents components of the re-measurement gains/losses recognized in Other Comprehensive Income for
the pension plans and retiree welfare plans.
Pension plans
Retiree welfare plans
For the years ended December 31,
2025
2024
2025
2024
Actuarial gains (losses) on defined benefit obligations due to:
Experience
$17
$(2)
$10
$16
Demographic assumption changes
24
-
6
-
Economic assumption changes
(19)
101
3
19
Return on plan assets (excluding interest income)
27
(31)
13
(19)
Change in effect of asset limit (excluding interest)
-
(1)
-
-
Total re-measurement gains (losses) recorded in OCI, net of tax
$49
$67
$32
$16
Summary of Key Assumptions Used by to Determine Defined Benefit Obligation and Net Benefit Cost for Defined Benefit Pension Plans and Retiree Welfare Plans The following table presents key assumptions used by the Company to determine the defined benefit obligation and net benefit
cost for the defined benefit pension plans and retiree welfare plans.
U.S. Plans
Canadian Plans
Pension plans
Retiree welfare plans
Pension plans
Retiree welfare plans
For the years ended December 31,
2025
2024
2025
2024
2025
2024
2025
2024
To determine the defined benefit
obligation at end of year(1):
Discount rate
5.2%
5.5%
5.1%
5.4%
4.8%
4.6%
4.9%
4.7%
Initial health care cost trend rate(2)
n/a
n/a
8.5%
8.8%
n/a
n/a
3.9%
3.9%
To determine the net defined benefit
cost for the year(1):
Discount rate
5.5%
4.8%
5.4%
4.8%
4.6%
4.6%
4.7%
4.7%
Initial health care cost trend rate(2)
n/a
n/a
8.8%
9.0%
n/a
n/a
3.9%
3.9%
(1)Inflation and salary increase assumptions are not shown as they do not materially affect obligations and costs.
(2)The health care cost trend rate used to measure the U.S. based retiree welfare obligation was 8.5% grading to 4.8% for 2041 and years thereafter (2024 – 8.8%
grading to 4.8% for 2041 and years thereafter) and to measure the net benefit cost was 8.8% grading to 4.8% for 2041 and years thereafter (2024 – 9.0% grading
to 4.8% for 2041 and years thereafter). In Canada, the rate used to measure the retiree welfare obligation was 3.9% grading to 4.0% for 2029 and years thereafter
(2024 – 3.9% grading to 4.0% for 2029 and years thereafter) and to measure the net benefit cost was 3.9% grading to 4.0% for 2029 and years thereafter (2024 –
5.1% in 2023 and 3.9% in 2024, grading to 4.0% for 2029 and years thereafter).
Summary of Life Expectancies Underlying Values of Obligations in Defined Benefit Pension and Retiree Welfare Plans The following table presents
current life expectancies underlying the values of the obligations in the defined benefit pension and retiree welfare plans.
U.S.
Canada
As at December 31,
2025
2024
2025
2024
Life expectancy (in years) for those currently age 65
Males
22.2
22.2
24.4
24.4
Females
23.6
23.7
26.3
26.2
Life expectancy (in years) at age 65 for those currently age 45
Males
23.6
23.6
25.3
25.3
Females
25.0
25.1
27.1
27.1
Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions The following table sets out the potential impact on the obligations arising from changes in the key assumptions. Each sensitivity
assumes that all other assumptions are held constant. In actuality, inter-relationships among assumptions may exist.
Pension plans
Retiree welfare plans
As at December 31,
2025
2024
2025
2024
Discount rate:
Impact of a 1% increase
$(238)
$(260)
$(30)
$(34)
Impact of a 1% decrease
279
305
35
40
Health care cost trend rate:
Impact of a 1% increase
n/a
n/a
8
9
Impact of a 1% decrease
n/a
n/a
(7)
(8)
Mortality rates(1):
Impact of a 10% decrease
88
89
6
9
(1)If the actuarial estimates of mortality are adjusted in the future to reflect unexpected decreases in mortality, the effect of a 10% decrease in mortality rates at each
future age would be an increase in life expectancy at age 65 of 0.8 years for U.S. and Canadian males and females.
Summary of Weighted Average Duration of the Defined Benefit Obligations The following table presents the weighted average duration (in years) of the defined benefit obligations.
Pension plans
Retiree welfare plans
As at December 31,
2025
2024
2025
2024
U.S. plans
8.0
8.0
7.5
7.7
Canadian plans
9.9
10.1
10.5
10.9
Summary of Cash Payments The following table presents total cash payments for all employee future benefits, comprised of cash contributed by the Company
to fund defined benefit pension and retiree welfare plans, cash payments made directly to beneficiaries in respect of unfunded
pension and retiree welfare plans, and cash contributed to defined contribution pension plans.
Pension plans
Retiree welfare plans
For the years ended December 31,
2025
2024
2025
2024
Defined benefit plans
$55
$57
$13
$12
Defined contribution plans
101
97
-
-
Total
$156
$154
$13
$12