The TELUS Health monthly pension indices, as of March 31, 2024, show the funded position of a typical pension plan increasing on both a solvency basis and an accounting basis during the month of March.
Along with key statistics, TELUS says the reports “also provide an early indicator of the challenges and opportunities that are yet to come for plan sponsors and administrators to help with the monitoring and management of their pension plans,” they write.
Holistic approach recommended
Investment returns during the month were 1.7 per cent. The Canadian equity index, the S&P/TSX Composite Index finished the month with a return of 4.1 per cent. The report warns plans about non-financial risks, as well, including governance risk, compliance risk and cybersecurity risk. “Pension plan sponsors and administrators should be taking a holistic approach to pension risk management, which enables them to systematically identify all significant risks to their plans and determine how best to manage and monitor these risks.”
As of March 31, the TELUS solvency index sat at 106, up from 103.6 in the previous month. The annuity proxy index, which provides an indication of changes in the estimated annuity purchase premium since the start of the year, for obligations with a medium duration, was 96.9, down from 97.3 the previous month. The commuted value index was 100.8, down from 102.5, the accounting index which indicates changes in the accounting funding level of an average pension plan since the start of the year, was 106.3, up from 105.3 in February and the plan asset index indicating changes in asset levels since the start of the year, was 103.5, up from 101.8.
