On Oct. 1, professional services firm, Aon plc announced the availability of its Sept. 30 research showing the aggregate funded ratio for Canadian defined benefit (DB) pension plans in the S&P/TSX Composite Index increased to 112.5 per cent, up from 107.8 per cent at the end of the last quarter.
The firm’s Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with DB plans.
Pension assets increased 5.4 per cent over the course of the third quarter ending Sept. 30, 2025. “The long-term Government of Canada bond yield increased 11 basis points (bps) relative to the previous quarter rate, and credit spreads narrowed by seven bps. This combination resulted in an increase in discount rate of four basis points to 4.62 per cent,” they write.
The firm then urged plan sponsors to continue exploring strategies to manage and reduce pension risk. “Asset returns were strong in the third quarter,” says Nathan LaPierre, partner for wealth solutions in Canada at Aon. “While markets have been favourable, it’s important for plan sponsors to remain vigilant.”
