Canadian Pension Plans Look to Annuities, Fixed Income to Preserve Pension Surpluses
Many Canadian pension plans are in the enviable position of having a funded surplus, as of the year’s second quarter, thanks to positive market returns and higher interest rates that increased assets and lowered liabilities. The Mercer Pension Health Pulse, a measure that tracks the median solvency ratio of Canadian corporate defined benefit pension plans in the firm’s pension database, increased to 119% at the end of the second quarter. Mercer estimates 85% of these plans were in a surplus...