February 7, 2018 09:45
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The financial health of pension plans defined benefit plan has achieved the highest rate of the decade, according to Aon. The rise in bond yields helped propel 101.3 % the solvency ratio of the median of the Aon retirement plan canadian defined benefit as of the date of the 1st of February.
This is an increase of 1.1 % compared to the end of December 2017. The solvency in January is the highest since 2002, surpassing the record post-recession of 2008, 100.7 %, established in October 2017. Of all the schemes surveyed, 53 % were more than fully funded on 1 February, an increase of 6.1 percentage points compared to the previous month.
Better financial situation in 15 years
«Bond yields in canada and internationally has soared in January, DB pension plans saw their liabilities to decrease significantly, which has placed them in the best financial situation for the past 15 years,» says Claude Lockhead, partner and executive director of the convenient Retirement of the East region at Aon Hewitt.
The survey from Aon on the solvency ratio of the median, which measures the pension assets relative to its liabilities in order to calculate its solvency ratio, following the results of the pension plans defined benefit (DB) public, semi-public and private, administered by Aon Hewitt.