Aon plc announced that the aggregate funded ratio for Canadian defined benefit pension plans in the S&P/TSX Composite Index rose to 123.3% at the end of the third quarter of 2026, up from 117.6% at the end of the prior quarter. The Aon Pension Risk Tracker, which has measured the aggregate funded position on an accounting basis for S&P/TSX Composite Index companies with defined benefit plans since 2013, reported that pension assets lost 1.5% over the quarter. The long-term Government of Canada bond yield increased 57 basis points from the previous quarter and credit spreads widened by 1 basis point, lifting the discount rate by 58 basis points to 5.22%. Nathan LaPierre, Partner, Wealth Solutions, Canada at Aon, said that despite modest weakness in equity markets, funded positions improved as higher discount rates reduced the value of pension liabilities, and that strong funded positions give sponsors flexibility to manage pension risk proactively amid continued uncertainty and market volatility.
Aon PLCAon's Pension Risk Tracker shows Canadian DB funded ratio rising to 123.3%, highlighting its pension risk services amid improved funding positions.
Long-term Government of Canada bond yield rose 57bp to lift the discount rate to 5.22%, meaning the 10Y yield moved higher.
