Canadian defined benefit pension plans show decreased funded levels in Q3: Aon
TORONTO, Oct. 1, 2024 /CNW/ -- Aon plc (NYSE:AON), a leading global professional services firm, announced today that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index percent compared to 106.9 percent at the end of the second quarter, according to the Aon Pension Risk Tracker.
The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit plans. To access Aon's interactive tracker, which dates to 2013, click here.
Key findings for the quarter ending September 30, 2024 include:
- Pension assets gained 5.1 percent over the third quarter of 2024.
- The long-term Government of Canada bond yield decreased 26 basis points (bps) relative to the previous quarter rate, and credit spreads narrowed by 3 bps. This combination resulted a decrease in the discount rate, from 4.77 percent to 4.48 percent.
"Pension plans have continued to maintain their funded positions over the third quarter," said Nathan LaPierre, partner, Wealth Solutions, Aon. "However, with inflation having reached the Bank of Canada's target, and with the prospect of further interest rate reductions, plan sponsors should ensure that their plans are well hedged against interest rate risks."
About Aon
Aon plc (NYSE:AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.
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