It’s continued good news for Canada’s defined benefit pension plans as they see their solvency position strengthen.
According to the Mercer Pension Health Index, “the solvency ratio of a hypothetical Canadian plan, rose to 106 per cent, compared with 102 per cent at the start of the year. Of Mercer’s plan clients, the median solvency ratio rose to 97 per cent from 93 per cent at the start of year,” reports Benefits Canada.
The increase was largely attributed to rising interest rates.
“Canadian DB pension plans remain in strong financial shape,” Manuel Monteiro, leader of Mercer Canada’s financial strategy group, its quoted saying. “However, the strength of the Canadian dollar has resulted in a wide disparity in the funded status of pension plans, depending on their currency hedging strategy.”
More: Year has been positive overall.

ARIA provides a forum for an informed discussion on retirement income adequacy, and other related issues, including pension and retirement coverage, and defined benefit pension plans – ARIA pensions blog, 12 Dunlop Street, Barrie, ON, L4N 1V6 –

About the Author

Hi. I am an experienced writer, editor, blogger and communications strategist, providing online and print content solutions