Both Quebec and Newfoundland and Labrador face the largest pension risk because of the size of their unfunded pension liabilities relative to their revenues, according to a report from Moody’s.
The credit rating agency says both provinces’ “relatively large unfunded pension liabilities pose a challenge as they are likely to rise for multiple reasons.”
Moody’s says Newfoundland and Labrador’s liabilities to revenue stood at 55%; Quebec’s was 49%.
Overall, the report was positive on Canada.
“The median funded status of the provinces has demonstrated a reasonable level of stability,” says Moody’s. “The stability suggests the Canadian provinces overall remain committed to making contributions to pension plans even during times of market turbulence and budget deficits.”
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