Canadian defined benefit pension plans show increased funded levels in Q2: Aon

TORONTO , July 2, 2025 /CNW/ -- Aon plc(NYSE: AON), a leading global professional services firm, announced today that the aggregate funded ratio for Canadian pension plans in the S&P/TSX Composite Index increased to 109 percent compared to 105.5 percent at the end of last quarter, according to the Aon Pension Risk Tracker.

The Aon Pension Risk Tracker calculates the aggregate funded position on an accounting basis for companies in the S&P/TSX Composite Index with defined benefit plans. To access Aon's interactive tracker, which has been tracking this data since 2013, click here.

Key findings for the quarter ending June 30, 2025 include:

  • Pension assets gained 1.6 percent over the second quarter of 2025.
  • The long-term Government of Canada bond yield increased 33 basis points (bps) relative to the previous quarter rate, and credit spreads narrowed by 9 bps. This combination resulted in an increase in discount rate of 24 basis points, to 4.67 percent.

"Pension plans regained the ground that they had lost in the first quarter of the year, but volatility and uncertainty are still the name of the game," said Nathan LaPierre, partner for Wealth Solutions in Canada at Aon. "Pension plan sponsors continue to evaluate how they may shield their plans from that uncertainty."

About Aon
Aon plc  (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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SOURCE Aon plc