DB Pension Plans See Improving Funded Status in July

A report from Telus Health shows that the funded status of typical defined benefit pension plans improved in July, both on the solvency basis and accounting basis.

The representative pension plan portfolio decreased by 1.4 per cent in July due to poor performance across equity markets and Canada universe bonds, with the global developed and emerging equity markets index decreasing by 1.2 per cent in Canadian dollar terms.

Gavin Benjamin, partner in Telus Health's retirement and benefits solutions practice, said that July was a reminder that pension plan funded positions are driven by more than investment returns.