Canadian defined benefit pension plans strengthen in Q3, reaching 112.5% funded status: Aon

Canadian defined benefit pension plans strengthen in Q3, reaching 112.5% funded status: Aon

TORONTO, Oct. 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 increased to 112.5 percent compared to 107.8 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 September 30, 2025 include:

• Pension assets increased 5.4 percent over the third quarter of 2025.
• The long-term Government of Canada bond yield increased 11 basis points (bps) relative to the previous quarter rate, and credit spreads narrowed by 7 bps. This combination resulted in an increase in discount rate of 4 basis points, to 4.62 percent.

"Asset returns were strong in the third quarter," said Nathan LaPierre, partner for Wealth Solutions in Canada at Aon. "While markets have been favorable, it's important for plan sponsors to remain vigilant and continue exploring strategies to manage and reduce pension risk."

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 provide clients in over 120 countries 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