The aggregate funding ratio of Canadian pension plans rose to 91.2% as of Dec. 31 from 90.8% a year earlier, according to a survey from Aon.
The overall funding deficit remained at about $37 billion.
Overall pension assets returned 9.9% in the year ended Dec. 31, according to a news release announcing the survey.
Liabilities increased due to the drop in interest rates used to value pension liabilities to 2.5% from 2.92%.
"Equity markets performed strongly in 2020 and helped funded ratios improve," said Erwan Pirou, Canada chief investment officer, retirement solutions, at Aon, in the news release. "However, some pension plans did not realize the full benefit of the equity market rally, as some active equity managers underperformed their benchmark. One possible New Year's resolution: Look at the structure of your equity portfolio to make sure it's balanced across different equity styles and able to perform well in different environments."
An Aon spokesman could not be immediately reached for further information.