The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for the companies in the S&P/TSX Composite Index with defined benefit (DB) plans. The tool uses Aon's Risk Analyzer platform, which allows plan sponsors to track their individual plan's funded status on a daily basis. Versions of the Pension Risk Tracker are also available for the S&P 500 in the
Key Findings:
- During the third quarter of 2021, the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite index increased from 95.9% to 96.8%.
- Pension assets were flat in the third quarter with small gains on equities offset by small losses on fixed income.
- The quarter-end long-term
Government of Canada bond yield increased 14 basis points (bps) relative to the last quarter-end rate while credit spreads remained flat. This resulted in an increase in the interest rates used to value pension liabilities from 2.92% to 3.06%.
"The third quarter of 2021 saw a return of volatility," said
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