Caroline Cakebread
The financial health of Canadian defined benefit pension plans continued to improve through January according to Aon Hewitt. With government bond yields remaining higher and stock markets continuing to climb, solvency levels of DB plans continued to climb — and more plans reporting being fully funded.
As of February 1, the median solvency ratio was 96.4%, up 1.5% over January. That extends a three-month trend that has seen the median solvency rate increase by more than 10%. The number of fully funded plans was also up during the month – in all, 38.2% of plans surveyed were more than fully funded, doubling the number of fully funded plans since November.