Staff
The funded position for an average Canadian defined benefit pension plan improved slightly during May, with a solvency of 108.2 per cent, according to a new report by LifeWorks Inc. (formerly Morneau Shepell Ltd.)
On an accounting basis, it found expenses for the average pension plan had dropped precipitously since the beginning of 2021, at 73.6 per cent. And asset returns for an average plan were slightly above one per cent in May and year to date.
A dip in real returns for bonds for the month implied an increased expectation of inflation in the long term, noted the report. Indeed, real return bond yields dropped 0.19 per cent, while Government of Canada dipped by just 0.05 percent during the period.