2 October 2018 11:30
Photo : Freepik
The third quarter of 2018 has seen the financial situation of pension plans defined benefit achieve to be on track to achieve a record high in 18 years, says Mercer Canada in its quarterly report.
The solvency ratio of the median client of Mercer stood at 102 % at September 28, compared with 99% at the June 29, and 97 % at the end of 2017.
In addition, more than 60 % of canadian pension plans are fully funded and less than 5% have a capitalization of less than 80 %, says the firm.
“Canadian pension plans have not shown a cap as healthy since November 2000,” says F. Hubert Tremblay, senior adviser of the domain Assets of Mercer Canada.
The Mercer index of the financial health of pension plans, illustrating the solvency ratio hypothetical of a pension plan, was established to 112 % on September 28, up from 107 % on 29 June and 106 % at the beginning of the year.