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Funded Ratio for Canadian Pension Plans Improves in 2020
After plummeting during the first quarter, the funding level of Canadian defined benefit plans rebounded to end the year at 91.2%.
After seeing their funded status tumble to almost 80% in late March, Canadian defined benefit (DB) pension plans rebounded strongly for the rest of the year and saw their aggregate funded level improve to 91.2% from 90.8% a year earlier, according to professional services firm Aon.
“Equity markets performed strongly in 2020 and helped funded ratios improve,” Erwan Pirou, Canada CIO for Aon’s retirement solutions unit, said in a statement. “However, some pension plans did not realize the full benefit of the equity market rally, as some active equity managers underperformed their benchmark.”