The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for the companies in the S&P/TSX Composite Index with defined benefit (DB) plans. To access Aon's interactive tracker, which dates back to 2013, click here. The tool uses Aon's Risk Analyzer platform, which allows plan sponsors to track their individual plan's funded status on a daily basis. Versions of the Pension Risk Tracker are also available for the S&P 500 in the
Additional key findings:
- Pension assets returned 7.0 percent in 2021 and were positive in Q4, ending the quarter up 4.8 percent.
- The year-end long-term
Government of Canada bond yield increased 51 basis points (bps) relative to the last year-end rate, and credit spreads narrowed slightly by 3 bps. This combination resulted in an increase in the interest rates used to value pension liabilities from 2.34 percent to 2.82 percent. This increase in interest rates, along with significant asset returns, significantly improved the funded position of pension plans inCanada .
"2021 was a spectacular year for Canadian pension plans funding, with both interest rates and risk-seeking assets going up," said
"While the emergence of the Omicron variant added significant uncertainty at the end of 2021, equity markets continued the upward trajectory that had been established throughout the year," said
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