Aon tracker shows Canadian DB pension funded ratio rises to 123.3% in Q3
AON•Canadian defined benefit plans in the S&P/TSX Composite Index had an aggregate funded ratio of 123.3% at Sept. 30, 2026, up from 117.6% in the prior quarter. Higher discount rates drove the increase despite a 1.5% decline in pension assets.
1. Funded ratio rises
Aon’s Pension Risk Tracker showed the aggregate funded ratio for Canadian defined benefit plans in the S&P/TSX Composite Index increased to 123.3% at Sept. 30, 2026, from 117.6% in the prior quarter. The improvement pointed to stronger balance-sheet flexibility for plan sponsors.
2. Discount rates increase
Pension assets fell 1.5% in the third quarter. Long-term Government of Canada bond yields climbed 57 basis points, while wider credit spreads added 1 basis point, lifting the discount rate by 58 basis points to 5.22%. The higher discount rate reduced the accounting value of liabilities, outweighing weaker equity markets.
