TORONTO, July 4, 2023 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today announced that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index increased from 101.8 percent to 102.1 percent over the last three months, according to the Aon Pension Risk Tracker.
The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit (DB) plans. To access Aon's interactive tracker, which dates to 2013, click here. The tool uses Aon's risk analyzer platform, which allows plan sponsors to track their individual plan's funded status daily. Versions of the pension tracker are also available for the S&P 500 in the U.S. and for other indices in the UK.
Key findings as June 30, 2023 include:
- Pension assets gained 1.2 percent over the second quarter of 2023.
- The long-term Government of Canada bond yield increased 7 basis points (bps) during the quarter and credit spreads widened by 4 bps. This combination resulted in an increase in the interest rates used to value pension liabilities from 4.60 percent to 4.71 percent.
"The muted asset performance and the small increase in discount rates supported a small increase in funded status over the quarter amidst volatility," said Nathan LaPierre, partner, Wealth Solutions, Aon. "Pension plans treaded water at healthy funded positions over the last quarter, giving plan sponsors time to consider de-risking activities and shape better decisions."
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