TORONTO, Oct. 1, 2021 /CNW/ -- Aon plc (NYSE:
AON), a leading global professional services firm providing a broad
range of risk, retirement and health solutions, today
announced that the aggregate funded ratio for Canadian pension
plans in the S&P/TSX Composite Index increased from 95.9% to
96.8% during the past three months as of September 30, according to the Aon Pension Risk
Tracker.
The Aon Pension Risk Tracker calculates the aggregate funded
position on an accounting basis for the companies in the
S&P/TSX Composite Index with defined benefit (DB) plans. The
tool uses Aon's Risk Analyzer platform, which allows plan sponsors
to track their individual plan's funded status on a daily basis.
Versions of the Pension Risk Tracker are also available for the
S&P 500 in the U.S. and for a number of indices in the UK.
Key Findings:
- During the third quarter of 2021, the aggregate funded ratio
for Canadian pension plans in the S&P/TSX Composite index
increased from 95.9% to 96.8%.
- Pension assets were flat in the third quarter with small gains
on equities offset by small losses on fixed income.
- The quarter-end long-term Government of Canada bond yield increased 14 basis points
(bps) relative to the last quarter-end rate while credit spreads
remained flat. This resulted in an increase in the interest rates
used to value pension liabilities from 2.92% to 3.06%.
"The third quarter of 2021 saw a return of volatility," said
Nathan LaPierre, Partner, Retirement
Solutions, Aon. "With the pullback in equity markets in September,
equities were up only slightly over the quarter. Coupled with an
increase in interest rates which lowered liabilities, funded ratios
continued their upward trajectory. Plan sponsors should be wary of
continued uncertainty and look for ways of reducing risk and
locking in some of the gains."
About Aon
Aon plc (NYSE: AON) exists to shape
decisions for the better — to protect and enrich the lives of
people around the world. Our colleagues provide our clients in over
120 countries with advice and solutions that give them the clarity
and confidence to make better decisions to protect and grow their
business.
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Media Contact
Alexandre
Daudelin
+1 514 967-9330
SOURCE Aon plc