“The overall financial health of DB pension plans in Canada remains strong,” said Jared Mickall, principal and leader of Mercer’s Wealth practice in Winnipeg, in a release.
“However, the interest [rate] changes and market volatility during this quarter is a good reminder that a DB plan’s funded position can change quickly and plan sponsors should plan accordingly.”
Most plans saw positive returns from fixed-income assets, U.S. equities and international equities, which were generally offset by negative returns from Canadian equities and increased DB liabilities, the report noted.
As a result, solvency ratios remained mostly stable. Plans with fixed-income leverage, however, may have experienced stable or improved solvency ratios.
An April report from the Canadian Institute of Actuaries found Canadians’ life expectancy is expected to improve. That means lifetime pensions may need to be paid for longer,…
