The funded status of a typical Canadian defined benefit pension plan increased on both a solvency and accounting basis during the month of December, according to a new report by Telus Health.
The monthly pension index revealed the typical DB plan grew slightly from 107.4 per cent in November to 109 per cent on the solvency index and from 107.9 per cent to 109.3 per cent on the accounting index.
While the representative pension plan portfolio returned negative 1.1 per cent in December amid mixed market performance, it delivered returns exceeding 10 per cent over the year-to-date period, driven primarily by strong equity market gains in 2025.
Read: Solvency ratio of average DB pension fund increases to 107.4% in November: report
The global developed and emerging equity markets index returned negative 0.7 per cent and Canadian equities finished the month with a return of 1.3 per cent.
Short-term Government of Canada bond yields increased by 0.17 per cent and long-term Government of Canada bond yields increased by 0.26 per cent over the month. Corporate bond credit spreads tightened substantially, narrowing by 0.05 per cent for short-term bonds and 0.16 per cent for long-term bonds.
Despite a turbulent year marked by macroeconomic uncertainty and shifting monetary policy, funded positions improved across many DB plans, said Amy Pun, associate partner in Telus Health’s retirement and benefits solutions team, in a press release.
“The year also highlighted a growing focus on member outcomes, with plan sponsors emphasizing benefit security, long-term adequacy, and greater equity across member groups as confidence in pension sustainability became a central priority.”
Read: Average Canadian DB pension plan returns 4.4% in Q3 2025: report