Read: Median solvency ratio of Canadian DB pension plans up 2% in Q1 2024: reports
Most plans saw positive asset returns from fixed income assets, U.S. equities and international equities, which were generally offset by negative asset returns from Canadian equities and increased DB liabilities. Together, these trends resulted in an overall maintenance of solvency ratios, said the report, which noted DB pension plans that used fixed income leverage may have experienced stable or improved solvency ratios.
The volatility seen throughout the quarter was attributed to shifting trends in the industry like changes in Canadian interest rates, ongoing risks from inflation, volatile investment markets and life expectancies of plan members and their spouses getting longer than what may be currently budgeted, the report said.
“The overall financial health of DB pension plans in Canada remains strong,” said Jared Mickall, principal and leader…
