Canadian defined benefit pension plans show decreased funded levels in Q1: Aon

Canadian defined benefit pension plans show decreased funded levels in Q1: Aon

TORONTO, April 1, 2025 /CNW/ -- Aon plc (NYSE: AON), a leading global professional services firm, announced today that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index percent compared to 107.5 percent at the end of last quarter, according to the Aon Pension Risk Tracker.

The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit plans. To access Aon's interactive tracker, which has been tracking this data since 2013, click here.

Key findings for the quarter ending March 31, 2025 include:

• Pension assets lost 0.5 percent over the first quarter of 2025.

• The long-term Government of Canada bond yield decreased 10 basis points (bps) relative to the previous quarter rate, and credit spreads widened by 10 bps. This combination resulted in no change in the discount rate, remaining at 4.47 percent.

"Due to uncertainty, and in some cases, the imposition of tariffs in the first quarter of 2025, markets were quite volatile," said Nathan LaPierre, partner for Wealth Solutions in Canada at Aon, "Pension plans faced significant headwinds during the quarter, but starting from strong funded positions at the beginning of the quarter."

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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SOURCE Aon plc