Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 155

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 155
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 rates for the next year used to measure the expected cost of benefits are as follows:CanadaUS12024202320242023Health 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 - 20451In addition, under the Enbridge Employee Services, Inc., Health Reimbursement Account Plan, health care costs will increase by 5.0% every three years.PLAN ASSETSWe 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.

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The asset allocation targets and major categories of plan assets are as follows: CanadaUSTargetDecember 31,TargetDecember 31,Asset CategoryAllocation20242023Allocation20242023Equity 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 %Alternatives130.8 %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 PlansThe following table summarizes the fair value of plan assets for our pension plans recorded at each fair value hierarchy level: