These statements reflect the Plan’s financial position and surplus based on liabilities and market values of assets on the statement date. However, it's important to distinguish that the accounting financial position differs from the Plan’s funded status determined through actuarial funding valuation.
The accounting pension obligation represents the estimated net present value of future pension benefits to Plan members. Retirement benefits provide a lifetime pension based on each year of pensionable service, calculated using a specified percentage applied to the average salary from the five highest consecutive years, subject to the maximum benefit limit under the Canadian Income Tax Act. With each additional year of pensionable service, the estimated obligation grows. Since this obligation depends on various assumptions set by the Plan’s actuary, it remains an estimate. For instance, an assumed discount rate is applied to calculate the present value of future payments. A lower discount rate or higher life expectancy will increase the total pension obligation.
$21.0
Billion
Fair value of Plan's net assets (as of December 31, 2024)
On December 31, 2024, the Plan’s net assets exceeded the estimated pension obligation resulting in a surplus. During this period, the accounting discount rate at 6.2%, along with other major accounting assumptions remained unchanged from 2023. Consequently, the Plan’s net assets supported 145% of the total pension obligation.
