v3.25.0.1
PENSION AND OTHER POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
PENSION AND OTHER POSTRETIREMENT BENEFITS PENSION AND OTHER POSTRETIREMENT BENEFITS
 
PENSION PLANS
We sponsor Canadian and US contributory and non-contributory registered defined benefit and defined contribution pension plans, which provide benefits covering substantially all employees. The Canadian pension plans provide defined benefit and defined contribution pension benefits to our Canadian employees. The US pension plans provide defined benefit pension benefits to our US employees. We also sponsor supplemental non-contributory defined benefit pension plans, which provide non-registered benefits for certain employees in Canada and the US.
Defined Benefit Pension Plan Benefits
Benefits payable from the defined benefit pension plans are based on each plan participant's years of service and final average remuneration. Some benefits are partially inflation-indexed after a plan participant’s retirement. Our contributions are made in accordance with independent actuarial valuations. Participant contributions to contributory defined benefit pension plans are based upon each plan participant's current eligible remuneration.

Defined Contribution Pension Plan Benefits
Our contributions are based on each plan participant's current eligible remuneration. Our contributions for some defined contribution pension plans are also based on age and years of service. Our defined contribution pension benefit costs are equal to the amount of contributions required to be made by us.

Benefit Obligations, Plan Assets and Funded Status
The following table details the changes in the projected benefit obligation, the fair value of plan assets and the recorded assets or liabilities for our defined benefit pension plans:
 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)    
Change in projected benefit obligation    
Projected benefit obligation at beginning of year4,092 3,630 1,036 1,029 
Service cost 103 81 60 40 
Interest cost186 184 69 47 
Participant contributions32 31 — — 
Actuarial (gain)/loss1
— 359 (98)31 
Benefits paid(210)(193)(100)(76)
Transfer in— — 569 — 
Foreign currency exchange rate changes— — 119 (29)
Other— — (7)(6)
Projected benefit obligation at end of year2
4,203 4,092 1,648 1,036 
Change in plan assets
Fair value of plan assets at beginning of year4,528 4,234 1,052 1,080 
Actual return on plan assets627 427 197 78 
Employer contributions23 27 5 5 
Participant contributions32 31 — — 
Benefits paid(210)(193)(100)(76)
Transfer in— — 900 — 
Foreign currency exchange rate changes— — 146 (29)
Other— 2 (6)(6)
Fair value of plan assets at end of year3
5,000 4,528 2,194 1,052 
Overfunded status at end of year797 436 546 16 
Presented as follows:
Deferred amounts and other assets943 636 653 116 
Other current liabilities(10)(8)(6)(5)
Other long-term liabilities (136)(192)(101)(95)
 797 436 546 16 
1Primarily due to the increase in the discount rate and changes in benefit assumptions and member data used to measure the defined benefit obligations (2023 - primarily due to the decrease in the discount rates used to measure the benefit obligation).
2The accumulated benefit obligation for our Canadian pension plans was $3.9 billion and $3.8 billion as at December 31, 2024 and 2023, respectively. The accumulated benefit obligation for our US pension plans was $1.6 billion and $1.0 billion as at December 31, 2024 and 2023, respectively.
3Assets in the amount of $18 million (2023 - $14 million) and $80 million (2023 - $62 million), related to our Canadian and US non-registered supplemental pension plan obligations, respectively, are held in grantor trusts and rabbi trusts that, in accordance with federal tax regulations, are not restricted from creditors. These assets are committed for the future settlement of benefit obligations included in the underfunded status as at the end of the year, however they are excluded from plan assets for accounting purposes.
Certain of our pension plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and fair value of plan assets were as follows:

 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)
Accumulated benefit obligation404 394 107 99 
Fair value of plan assets283 243 — — 

Certain of our pension plans have projected benefit obligations in excess of the fair value of plan assets. For these plans, the projected benefit obligation and fair value of plan assets were as follows:

 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)
Projected benefit obligation428 416 107 99 
Fair value of plan assets283 243 — — 

Amount Recognized in Accumulated Other Comprehensive Income
The amount of pre-tax AOCI relating to our pension plans are as follows:

 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)    
Net actuarial (gain)/loss(122)51 (42)74 
Prior service cost— — 5 1 
Total amount recognized in AOCI1
(122)51 (37)75 
1Excludes amounts related to CTA.

Net Periodic Benefit (Credit)/Cost and Other Amounts Recognized in Comprehensive Income
The components of net periodic benefit (credit)/cost and other amounts recognized in pre-tax Comprehensive income related to our pension plans are as follows:

CanadaUS
Year ended December 31, 202420232022202420232022
(millions of Canadian dollars)
Service cost1
103 81 131 60 40 43 
Interest cost2
186 184 127 69 47 24 
Expected return on plan assets2
(304)(271)(295)(131)(77)(85)
Amortization/settlement of net actuarial (gain)/loss2
4 — 8 7 (4)— 
Amortization/curtailment of prior service credit2
— — — (4)— (2)
Net periodic benefit (credit)/cost(11)(6)(29)1 6 (20)
Defined contribution benefit cost12 12 10 — — — 
Net pension (credit)/cost recognized in Earnings1 6 (19)1 6 (20)
Amount recognized in OCI:
 Amortization/settlement of net actuarial (gain)/loss— — (2)— 4 — 
Amortization/curtailment of prior service credit— — — 4 — 2 
Net actuarial (gain)/loss arising during the year(173)115 (288)(116)30 (52)
Total amount recognized in OCI(173)115 (290)(112)34 (50)
Total amount recognized in Comprehensive income(172)121 (309)(111)40 (70)
1Reported within Operating and administrative in the Consolidated Statements of Earnings.
2Reported within Other income/(expense) in the Consolidated Statements of Earnings.
Actuarial Assumptions
The weighted average assumptions made in the measurement of the projected benefit obligation and net periodic benefit cost of our pension plans are as follows:

 CanadaUS
202420232022202420232022
Projected benefit obligation
Discount rate4.7 %4.6 %5.1 %5.5 %4.7 %4.9 %
Rate of salary increase3.0 %3.0 %2.9 %2.6 %2.6 %2.8 %
Cash balance interest credit rateN/AN/AN/A4.0 %4.5 %4.3 %
Net periodic benefit cost
Discount rate4.6 %5.3 %3.2 %4.8 %4.9 %2.6 %
Rate of return on plan assets6.8 %6.5 %6.6 %7.3 %7.4 %7.4 %
Rate of salary increase3.0 %2.9 %2.9 %2.8 %2.8 %2.8 %
Cash balance interest credit rateN/AN/AN/A4.4 %4.3 %4.3 %

OTHER POSTRETIREMENT BENEFIT PLANS
We sponsor funded and unfunded defined benefit OPEB Plans, which provide non-contributory supplemental health, dental, life and health spending account benefit coverage for certain qualifying retired employees.
Benefit Obligations, Plan Assets and Funded Status
The following table details the changes in the accumulated postretirement benefit obligation, the fair value of plan assets and the recorded assets or liabilities for our defined benefit OPEB plans:
 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)    
Change in accumulated postretirement benefit obligation
    
Accumulated postretirement benefit obligation at beginning of year
228 211 129 136 
Service cost 3 3 3 1 
Interest cost10 11 7 6 
Participant contributions— — 5 5 
Actuarial (gain)/loss1
(21)13 (9)4 
Benefits paid(10)(10)(20)(20)
Transfer in— — 46 — 
Foreign currency exchange rate changes— — 16 (3)
Accumulated postretirement benefit obligation at end of year
210 228 177 129 
Change in plan assets
Fair value of plan assets at beginning of year— — 187 185 
Actual return on plan assets— — 22 14 
Employer contributions10 10 7 7 
Participant contributions— — 5 5 
Benefits paid(10)(10)(20)(20)
Transfer in— — 55 — 
Foreign currency exchange rate changes— — 20 (4)
Other— — 2 — 
Fair value of plan assets at end of year— — 278 187 
Overfunded/(underfunded) status at end of year(210)(228)101 58 
Presented as follows:
Deferred amounts and other assets— — 113 73 
Other current liabilities(11)(12)— — 
Other long-term liabilities (199)(216)(12)(15)
 (210)(228)101 58 
1Primarily due to the increase in the discount rate and changes in benefit assumptions and member data used to measure the defined benefit obligation (2023 - primarily due to decrease in the discount rate used to measure the benefit obligations).
Certain of our OPEB plans have accumulated benefit obligations in excess of the fair value of plan assets. For these plans, the accumulated benefit obligation and fair value of plan assets were as follows:
 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)
Accumulated benefit obligation210 228 100 78 
Fair value of plan assets— — 88 63 

Amount Recognized in Accumulated Other Comprehensive Income
The amount of pre-tax AOCI relating to our OPEB plans are as follows:
 CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)    
Net actuarial gain(99)(82)(103)(96)
Prior service credit— (1)(16)(22)
Total amount recognized in AOCI1
(99)(83)(119)(118)
1Excludes amounts related to CTA.
Net Periodic Benefit (Credit)/Cost and Other Amounts Recognized in Comprehensive Income
The components of net periodic benefit (credit)/cost and other amounts recognized in pre-tax Comprehensive income related to our OPEB plans are as follows:
 CanadaUS
Year ended December 31,202420232022202420232022
(millions of Canadian dollars)      
Service cost1
3 3 4 3 1 1 
Interest cost2
10 11 7 7 6 3 
Expected return on plan assets2
— — — (15)(11)(12)
Amortization/settlement of net actuarial gain2
(5)(6)(1)(5)(6)(6)
Amortization/curtailment of prior service credit2
(1)— — (6)(8)(7)
Net periodic benefit (credit)/cost recognized in Earnings7 8 10 (16)(18)(21)
Amount recognized in OCI:
Amortization/settlement of net actuarial gain5 6 1 5 6 6 
Amortization/curtailment of prior service credit1 — — 6 8 7 
Net actuarial (gain)/loss arising during the year(22)13 (67)(12)— (4)
Total amount recognized in OCI(16)19 (66)(1)14 9 
Total amount recognized in Comprehensive income(9)27 (56)(17)(4)(12)
1Reported within Operating and administrative in the Consolidated Statements of Earnings.
2Reported within Other income/(expense) in the Consolidated Statements of Earnings.

The weighted average assumptions made in the measurement of the accumulated postretirement benefit obligation and net periodic benefit cost of our OPEB plans are as follows:
 CanadaUS
202420232022202420232022
Accumulated postretirement benefit obligation
Discount rate4.7 %4.6 %5.3 %5.3 %4.7 %4.9 %
Net periodic benefit cost
Discount rate4.6 %5.3 %3.2 %5.5 %4.9 %2.4 %
Rate of return on plan assetsN/AN/AN/A6.7 %5.9 %6.0 %

Assumed Health Care Cost Trend Rates
The assumed rates for the next year used to measure the expected cost of benefits are as follows:
Canada
US1
2024202320242023
Health care cost trend rate assumed for next year4.0 %4.0 %3.2 %4.7 %
Rate to which the cost trend is assumed to decline (ultimate trend rate)
4.0 %4.0 %3.7 %3.3 %
Year that the rate reaches the ultimate trend rateN/AN/A2023 - 20462022 - 2045
1In addition, under the Enbridge Employee Services, Inc., Health Reimbursement Account Plan, health care costs will increase by 5.0% every three years.

PLAN ASSETS
We manage the investment risk of our pension funds by setting a long-term asset mix policy for each plan after consideration of: (i) the nature of pension plan liabilities; (ii) the investment horizon of the plan; (iii) the going concern and solvency funded status and cash flow requirements of the plan; (iv) our operating environment and financial situation and our ability to withstand fluctuations in pension contributions; and (v) the future economic and capital markets outlook with respect to investment returns, volatility of returns and correlation between assets.

The overall expected rate of return on plan assets is based on the asset allocation targets with estimates for returns based on long-term expectations.
The asset allocation targets and major categories of plan assets are as follows:

 CanadaUS
TargetDecember 31,TargetDecember 31,
Asset CategoryAllocation20242023Allocation20242023
Equity securities46.2 %39.1 %41.4 %43.4 %44.8 %39.5 %
Fixed income securities23.0 %31.6 %29.6 %23.2 %33.0 %19.4 %
Alternatives1
30.8 %29.3 %29.0 %33.4 %22.2 %41.1 %
1Alternatives include investments in private debt, private equity, infrastructure and real estate funds. Fund values are based on the net asset value of the funds that invest directly in the aforementioned underlying investments. The values of the investments have been estimated using the capital accounts representing the plan's ownership interest in the funds.

Pension Plans
The following table summarizes the fair value of plan assets for our pension plans recorded at each fair value hierarchy level:
 CanadaUS
Level 11
Level 22
Level 33
Total
Level 11
Level 22
Level 33
Total
(millions of Canadian dollars)        
December 31, 2024
Cash and cash equivalents201 — — 201 57 — — 57 
Equity securities4
Canada— 3 — 3 — — — — 
Global134 1,817 — 1,951 27 954 — 981 
Fixed income securities4
Government— 543 — 543 — 194 — 194 
Corporate— 838 — 838 — 474 — 474 
Alternatives5
— — 1,464 1,464 — — 488 488 
Total pension plan assets at fair value335 3,201 1,464 5,000 84 1,622 488 2,194 
December 31, 2023
Cash and cash equivalents227 — — 227 8 — — 8 
Equity securities4
Canada— 3 — 3 — — — — 
Global— 1,871 — 1,871 — 416 — 416 
Fixed income securities4
Government— 446 — 446 — 46 — 46 
Corporate— 667 — 667 — 149 — 149 
Alternatives5
— — 1,290 1,290 — — 433 433 
Forward currency contracts— 24 — 24 — — — — 
Total pension plan assets at fair value227 3,011 1,290 4,528 8 611 433 1,052 
1Level 1 assets include assets with quoted prices in active markets for identical assets.
2Level 2 assets include assets with significant observable inputs.
3Level 3 assets include assets with significant unobservable inputs.
4Pension plan assets include $77 million (2023 - $61 million) of indirectly held related party equity and fixed income securities investments.
5Alternatives include investments in private debt, private equity, infrastructure and real estate funds.

Changes in the net fair value of pension plan assets classified as Level 3 in the fair value hierarchy were as follows:
CanadaUS
December 31,2024202320242023
(millions of Canadian dollars)   
Balance at beginning of year1,290 1,291 433 445 
Unrealized and realized gains/(losses)104 (41)63 (12)
Purchases and settlements, net70 40 (8)— 
Balance at end of year1,464 1,290 488 433 
OPEB Plans
The following table summarizes the fair value of plan assets for our US funded OPEB plans recorded at each fair value hierarchy level:
Level 11
Level 22
Level 33
Total
(millions of Canadian dollars)    
December 31, 2024
Cash and cash equivalents4 — — 4 
Equity securities
US— 52 — 52 
Global— 93 — 93 
Fixed income securities
Government71 6 — 77 
Corporate— 19 — 19 
Alternatives4
— — 33 33 
Total OPEB plan assets at fair value75 170 33 278 
December 31, 2023
Cash and cash equivalents3 — — 3 
Equity securities
US— 36 — 36 
Global— 62 — 62 
Fixed income securities
Government42 3 — 45 
Corporate— 12 — 12 
Alternatives4
— — 29 29 
Total OPEB plan assets at fair value45 113 29 187 
1Level 1 assets include assets with quoted prices in active markets for identical assets.
2Level 2 assets include assets with significant observable inputs.
3Level 3 assets include assets with significant unobservable inputs.
4Alternatives includes investments in private debt, private equity, infrastructure and real estate.

Changes in the net fair value of US funded OPEB plan assets classified as Level 3 in the fair value hierarchy were as follows:

December 31,20242023
(millions of Canadian dollars)
Balance at beginning of year29 28 
Unrealized and realized gains5 1 
Purchases and settlements, net(1)— 
Balance at end of year33 29 
EXPECTED BENEFIT PAYMENTS

Year ending December 31,202520262027202820292030-2034
(millions of Canadian dollars)      
Pension
Canada
214 220 226 232 238 1,285 
US117 120 123 123 120 625 
OPEB
Canada
11 12 12 12 12 64 
US16 16 16 16 16 71 
 
EXPECTED EMPLOYER CONTRIBUTIONS
In 2025, we expect to contribute approximately $21 million and $6 million to the Canadian and US pension plans, respectively, and $11 million and $6 million to the Canadian and US OPEB plans, respectively.

RETIREMENT SAVINGS PLANS
In addition to the pension and OPEB plans discussed above, we also have defined contribution employee savings plans available to US employees. Employees may receive a matching contribution where we match a certain percentage of before-tax employee contributions ranging from 3.0% to 7.0% of eligible pay per pay period. For the year ended December 31, 2024, pre-tax employer matching contribution costs were $35 million ($33 million in 2023 and $30 million in 2022).