Post-employment benefit plans (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Employee Benefits [Abstract] |
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| Components of post-employment benefit plans service cost |
Components of post-employment benefit plans service cost
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| For the year ended December 31 |
2025 |
2024 |
| DB pension |
(125) |
|
(134) |
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| DC pension |
(132) |
|
(136) |
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| OPEBs |
(1) |
|
(1) |
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| Less: |
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Capitalized benefit plans cost |
60 |
|
63 |
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| Total post-employment benefit plans service cost |
(198) |
|
(208) |
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| Components of post-employment benefit plans financing cost |
Components of post-employment benefit plans financing income
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| For the year ended December 31 |
2025 |
2024 |
| DB pension |
133 |
|
99 |
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| OPEBs |
(31) |
|
(33) |
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| Total net return on post-employment benefit plans |
102 |
|
66 |
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| Defined benefit plans recognized in comprehensive income |
The statements of comprehensive income include the following amounts before income taxes.
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2025 |
2024 |
| Cumulative gains recognized directly in equity, January 1 |
1,228 |
|
432 |
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Actuarial gains in other comprehensive income (1) |
881 |
|
984 |
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Increase in the effect of the asset limit in other comprehensive income (2) |
(22) |
|
(188) |
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| Cumulative gains recognized directly in equity, December 31 |
2,087 |
|
1,228 |
| (1)The cumulative actuarial gains recognized in the statements of comprehensive income are $2,729 million at December 31, 2025. (2)The cumulative increase in the effect of the asset limit recognized in the statements of comprehensive income is $642 million at December 31, 2025.
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| Components of post-employment benefit (obligations) assets |
The following table shows the change in post-employment benefit obligations and the fair value of plan assets.
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DB pension plans |
OPEB plans |
Total |
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Note |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
| Post-employment benefit obligations, January 1 |
|
(20,134) |
|
(20,595) |
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(1,054) |
|
(1,074) |
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(21,188) |
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(21,669) |
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Current service cost |
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(125) |
|
(134) |
|
(1) |
|
(1) |
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(126) |
|
(135) |
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Interest on obligations |
|
(924) |
|
(927) |
|
(48) |
|
(49) |
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(972) |
|
(976) |
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Actuarial gains (1) |
|
437 |
|
214 |
|
36 |
|
— |
|
473 |
|
214 |
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Benefit payments |
|
1,404 |
|
1,349 |
|
69 |
|
70 |
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1,473 |
|
1,419 |
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Employee contributions |
|
(7) |
|
(8) |
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— |
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— |
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(7) |
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(8) |
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Business combinations |
4 |
(181) |
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(33) |
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(43) |
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— |
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(224) |
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(33) |
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Other |
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(2) |
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— |
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— |
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— |
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(2) |
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— |
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| Post-employment benefit obligations, December 31 |
|
(19,532) |
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(20,134) |
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(1,041) |
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(1,054) |
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(20,573) |
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(21,188) |
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| Fair value of plan assets, January 1 |
|
24,188 |
|
23,768 |
|
370 |
|
330 |
|
24,558 |
|
24,098 |
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Expected return on plan assets (2) |
|
1,104 |
|
1,062 |
|
17 |
|
16 |
|
1,121 |
|
1,078 |
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Actuarial gains (1) |
|
401 |
|
737 |
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7 |
|
33 |
|
408 |
|
770 |
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Benefit payments |
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(1,404) |
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(1,349) |
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(69) |
|
(70) |
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(1,473) |
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(1,419) |
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Employer contributions |
|
50 |
|
48 |
|
59 |
|
61 |
|
109 |
|
109 |
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Employee contributions |
|
7 |
|
8 |
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— |
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— |
|
7 |
|
8 |
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Transfers to DC plans |
|
(127) |
|
(132) |
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— |
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— |
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(127) |
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(132) |
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Business combinations |
4 |
201 |
|
47 |
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— |
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— |
|
201 |
|
47 |
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Refundable tax |
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(6) |
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— |
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— |
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— |
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(6) |
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— |
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Other |
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(1) |
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(1) |
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— |
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— |
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(1) |
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(1) |
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| Fair value of plan assets, December 31 |
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24,413 |
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24,188 |
|
384 |
|
370 |
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24,797 |
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24,558 |
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| Plan asset (deficit) |
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4,881 |
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4,054 |
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(657) |
|
(684) |
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4,224 |
|
3,370 |
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| Effect of asset limit |
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(1,018) |
|
(960) |
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— |
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— |
|
(1,018) |
|
(960) |
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| Interest on effect of asset limit |
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(47) |
|
(36) |
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— |
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— |
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(47) |
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(36) |
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Post-employment benefit asset (liability),
December 31 |
|
3,816 |
|
3,058 |
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(657) |
|
(684) |
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3,159 |
|
2,374 |
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| Post-employment benefit assets |
|
4,310 |
|
3,578 |
|
— |
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— |
|
4,310 |
|
3,578 |
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| Post-employment benefit obligations |
|
(494) |
|
(520) |
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(657) |
|
(684) |
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(1,151) |
|
(1,204) |
| (1)Actuarial gains include experience gains of $391 million in 2025 and $809 million in 2024. (2)The actual return on plan assets was $1,529 million or 6.4% in 2025 and $1,848 million or 8.1% in 2024.
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| Funded status of post-employment benefit plans cost |
The following table shows the funded status of our post-employment benefit obligations.
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Funded |
Partially funded (1) |
Unfunded (2) |
Total |
| For the year ended December 31 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
Present value of post-employment
benefit obligations |
(18,981) |
|
(19,558) |
|
(1,347) |
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(1,425) |
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(245) |
|
(205) |
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(20,573) |
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(21,188) |
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| Fair value of plan assets |
24,355 |
|
24,123 |
|
442 |
|
435 |
|
— |
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— |
|
24,797 |
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24,558 |
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| Plan surplus (deficit) |
5,374 |
|
4,565 |
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(905) |
|
(990) |
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(245) |
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(205) |
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4,224 |
|
3,370 |
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| Effect and interest of asset limit |
(1,065) |
|
(996) |
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— |
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— |
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— |
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— |
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(1,065) |
|
(996) |
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Post-employment benefit asset
(liability) |
4,309 |
|
3,569 |
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(905) |
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(990) |
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(245) |
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(205) |
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3,159 |
|
2,374 |
| (1)The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and certain OPEBs. The company partially funds the SERPs through letters of credit and a retirement compensation arrangement account with Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts. (2)Our unfunded plans consist of certain OPEBs, which are paid as claims are incurred.
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| Disclosure of significant assumptions |
We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension plans and OPEB plans. These assumptions are long-term, which is consistent with the nature of post-employment benefit plans.
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DB pension plans and OPEB plans |
| For the year ended December 31 |
2025 |
2024 |
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| Post-employment benefit obligations |
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Discount rate |
4.9 |
% |
4.7 |
% |
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Rate of compensation increase |
2.25 |
% |
2.25 |
% |
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Cost of living indexation rate (1) |
1.6 |
% |
1.6 |
% |
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Life expectancy at age 65 (years) |
23.2 |
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23.4 |
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| (1)Cost of living indexation rate is only applicable to DB pension plans.
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DB pension plans and OPEB plans |
| For the year ended December 31 |
2025 |
2024 |
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| Net post-employment benefit plans cost |
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Discount rate |
4.8 |
% |
4.7 |
% |
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Rate of compensation increase |
2.25 |
% |
2.25 |
% |
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Cost of living indexation rate (1) |
1.6 |
% |
1.6 |
% |
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Life expectancy at age 65 (years) |
23.4 |
|
23.4 |
| (1) Cost of living indexation rate is only applicable to DB pension plans.
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| Healthcare cost trend rates and sensitivity analysis |
The following table shows the effect of a 1% change in the assumed trend rates in healthcare costs.
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| Effect on post-employment benefits - increase (decrease) |
1% increase |
1% decrease |
| Total service and interest cost |
2 |
|
(2) |
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| Post-employment benefit obligations |
55 |
|
(47) |
| The following table shows a sensitivity analysis of key assumptions used to measure the net post-employment benefit obligations and the net post-employment benefit plans cost for our DB pension plans and OPEB plans.
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Impact on net post-employment benefit plans cost for 2025 –
increase (decrease) |
Impact on post-employment benefit obligations at December 31, 2025 –
increase (decrease) |
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Change in assumption |
Increase in assumption |
Decrease in assumption |
Increase in assumption |
Decrease in assumption |
| Discount rate |
0.5 |
% |
(79) |
|
76 |
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(1,026) |
|
1,102 |
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| Cost of living indexation rate |
0.5 |
% |
54 |
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(42) |
|
997 |
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(800) |
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| Life expectancy at age 65 |
1 year |
41 |
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(40) |
|
782 |
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(782) |
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| Post-employment benefit plan assets |
The following table shows the target allocations for 2025 and the allocation of our post-employment benefit plan assets at December 31, 2025 and 2024.
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Weighted average target allocation |
Total plan assets fair value |
| Asset category |
2025 |
December 31, 2025 |
December 31, 2024 |
| Equity securities |
0%-40% |
14 |
% |
13 |
% |
| Debt securities |
40%-100% |
52 |
% |
53 |
% |
| Alternative investments |
0%-60% |
34 |
% |
34 |
% |
| Total |
|
100 |
% |
100 |
% | The following table shows the fair value of the DB pension plan assets for each category.
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| For the year ended December 31 |
2025 |
2024 |
| Observable markets data |
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Equity securities |
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Canadian |
759 |
|
862 |
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Foreign |
2,577 |
|
2,344 |
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Debt securities |
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Canadian |
10,075 |
|
11,117 |
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Foreign |
2,224 |
|
1,426 |
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Money market |
357 |
|
257 |
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| Non-observable markets inputs |
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Alternative investments |
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Private equities |
1,077 |
|
1,066 |
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Hedge funds |
1,543 |
|
1,301 |
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Real estate and infrastructure |
4,452 |
|
4,341 |
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Private debt |
1,325 |
|
1,451 |
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Other |
24 |
|
23 |
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| Total |
24,413 |
|
24,188 |
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| Disclosure of contributions to post-employment benefit plans |
The following table shows the amounts we contributed to the DB and DC pension plans and the payments made to beneficiaries under OPEB plans.
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DB plans |
DC plans |
OPEB plans |
| For the year ended December 31 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
| Contributions/payments |
(44) |
|
(48) |
|
(5) |
|
(4) |
|
(59) |
|
(61) |
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