Canadian Defined Benefit Pension Plans See Funded Status Improvement in Q2
September 10, 2026
According to Aon's Pension Risk Tracker, the aggregate funded ratio for Canadian defined benefit pension plans within the S&P/TSX Composite Index increased to 116.7% as of June 30, 2026, up from 111.4% at the end of the previous quarter.
The Aon Pension Risk Tracker measures the aggregate accounting funded position of defined benefit pension plans sponsored by companies included in the S&P/TSX Composite Index and has tracked this data since 2013.
Key findings for the quarter ending June 30, 2026 include:
- Pension assets increased by 1.6% during the quarter.
- The long-term Government of Canada bond yield increased by 33 basis points (bps) relative to the previous quarter.
- Credit spreads narrowed by 9 bps.
- The discount rate increased to 4.67%, up 24 bps from the previous quarter.
Despite the improvement in funded status, Aon noted that market volatility and economic uncertainty continue to be important considerations for pension plan sponsors. As a result, many sponsors remain focused on evaluating strategies to manage risk and protect pension plan funding levels from future market fluctuations.
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