DB Solvency Ratios Inch Up

But nearly all plans still face solvency deficiency: Aon Hewitt.

Share:
  • Facebook
  • Twitter
  • Print
  • Email
  • Comment

inch upDecent equity market returns pushed up solvency funded ratios for Canadian DB plans in the third quarter of 2012. According to Aon Hewitt, the median solvency funded ratio of a large sample of pension plans edged up slightly from 66% at the end of June 2012 to 68% at the end of September 2012. This reflects gains in the Canadian stock exchange (7.0%), U.S. equities (2.7%), and international equities (3.3%).

“Even with this improvement, it still leaves the typical plan in the same position as it was at the start of 2012 – despite the significant cash contributions that have typically been made” said Thomas Ault, an Associate Partner in Aon Hewitt’s retirement practice.

About 97% of pension plans in this sample had a solvency deficiency as at September 30.

Add a Comment

Have your say on this topic! Comments that are thought to be disrespectful or offensive may be removed by our Canadian Investment Review admins. Thanks!

Transcontinental Media G.P.