v3.25.4
POST-EMPLOYMENT BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2025
Employee Benefits [Abstract]  
Disclosure of defined benefit plans actuarial assumptions and contributions
Principal actuarial assumptions
20252024
Weighted average of significant assumptions:
 
Defined benefit obligation
Discount rate5.1 %4.8 %
Rate of compensation increase
2.0% to 7.5%, based on employee age
2.0% to 7.5%, based on employee age
Mortality rate
95% of CPM2014Priv with Scale CPM-B
95% of CPM2014Priv with Scale CPM-B
Pension expense
Discount rate4.8 %4.6 %
Rate of compensation increase
2.0% to 7.5%, based on employee age
2.0% to 7.5%, based on employee age
Mortality rate
95% of CPM2014Priv with Scale CPM-B
95% of CPM2014Priv with Scale CPM-B
Below is a summary of the estimated present value of accrued plan benefits and the estimated market value of the net assets available to provide these benefits for our funded defined benefit pension plans.
As at December 31
(In millions of dollars)20252024
Plan assets, at fair value2,514 2,385 
Accrued benefit obligations(2,249)(2,197)
Surplus of plan assets over accrued benefit obligations265 188 
Effect of asset ceiling limit(53)(13)
Net deferred pension asset212 175 
Consists of:
Deferred pension asset217 183 
Deferred pension liability(5)(8)
Net deferred pension asset212 175 
Below is a summary of the actual contributions to the plans.
Years ended December 31
(In millions of dollars)20252024
Employer contribution— 5 
Employee contribution25 25 
Total contribution25 30 
Disclosure of sensitivity of key assumptions
 Increase (decrease) in accrued benefit obligation
(In millions of dollars)20252024
 
Discount rate
Impact of 0.5% increase
(168)(174)
Impact of 0.5% decrease
189 197 
 
Rate of future compensation increase
Impact of 0.25% increase
10 12 
Impact of 0.25% decrease
(10)(12)
 
Mortality rate
Impact of 1 year increase
36 36 
Impact of 1 year decrease
(39)(40)
Disclosure of net defined benefit liability (asset)
Below is a summary of our pension fund assets.
Years ended December 31
(In millions of dollars)20252024
Plan assets, beginning of year2,385 2,339 
Interest income117 110 
Remeasurements, recognized in other comprehensive income and equity
26 101 
Contributions by employees25 25 
Contributions by employer— 5 
Benefits paid(41)(51)
Impact of annuitization
— (141)
Plan assets acquired in MLSE Transaction
5 — 
Administrative expenses paid from plan assets(3)(3)
Plan assets, end of year2,514 2,385 

Below is a summary of the accrued benefit obligations arising from funded obligations.
Years ended December 31
(In millions of dollars)20252024
Accrued benefit obligations, beginning of year2,197 2,260 
Current service cost74 86 
Past service cost13 — 
Interest cost107 102 
Benefits paid(41)(51)
Impact of annuitization
— (140)
Contributions by employees25 25 
Remeasurements, recognized in other comprehensive income and equity(126)(85)
Accrued benefit obligations, end of year2,249 2,197 
Below is a summary of our net pension expense. Net interest cost is included in "finance costs"; other pension expenses are included in salaries and benefits expense in "operating costs" on the Consolidated Statements of Income.
Years ended December 31
(In millions of dollars)20252024
Plan cost:
Current service cost74 86 
Past service cost13 — 
Net interest income
(10)(8)
Net pension expense77 78 
Administrative expense3 3 
Total pension cost recognized in net income80 81 
Net interest income, a component of the plan cost above, is included in "finance costs" and is outlined as follows:
Years ended December 31
(In millions of dollars)20252024
Interest income on plan assets(117)(110)
Interest cost on plan obligation107 102 
Net interest income, recognized in finance costs
(10)(8)

The remeasurement recognized in the Consolidated Statements of Comprehensive Income is determined as follows:
Years ended December 31
(In millions of dollars)20252024
Return on plan assets (excluding interest income)26 101 
Change in financial assumptions119 70 
Effect of experience adjustments7 15 
Change in asset ceiling(40)(10)
Remeasurement gain, recognized in other comprehensive income and equity112 176 
Below is a summary of our accrued benefit obligations, pension expense included in employee salaries and benefits, net interest cost, remeasurements, and benefits paid.
Years ended December 31
(In millions of dollars)20252024
Accrued benefit obligation, beginning of year93 94 
Pension expense, recognized in employee salaries and benefits expense3 4 
Net interest cost, recognized in finance costs5 3 
Remeasurement gain, recognized in other comprehensive income
(3)(1)
Benefits paid(5)(7)
Accrued benefit obligation, end of year93 93 
Disclosure of fair value of plan assets
Plan assets comprise mainly pooled funds that invest in common stocks and bonds that are traded in an active market. Below is a summary of the fair value of the total pension plan assets by major category.
As at December 31
(In millions of dollars)20252024
Equity securities967 1,406 
Debt securities1,502 929 
Cash45 50 
Total fair value of plan assets2,514 2,385 
ALLOCATION OF PLAN ASSETS
 Allocation of plan assetsTarget asset allocation percentage
20252024
Equity securities:
Domestic7.7 %12.2 %
3% to 13%
International30.8 %46.7 %
27% to 37%
Debt securities59.7 %39.0 %
45% to 75%
Other - cash1.8 %2.1 %
0% to 5%
Total100.0 %100.0 %