Canadian defined benefit pension plans’ funding improved marginally in the second quarter but was down slightly from the start of the year, based on a Mercer (Canada) report released Wednesday.
The Mercer Pension Health index, which tracks the typical Canadian DB plan based on 100% funding as of Jan. 1, 1999, was at 105% as of June 30, up one percentage point from three months earlier but down from the 106% as of Jan. 1.
The first six months of 2014 have been relatively stable for Canadian pension plan funding, the report said, as long-term interest rate declines have been offset by strong equity and bond returns.
The typical pension fund’s balanced equity and bond portfolio returned 2.8% in the second quarter and 7.2% in the first half of 2014.
