The 25 largest Canadian corporate pension plans are nearly fully funded and are taking steps to de-risk, says a report from Russell Investments.
This group of corporate plans, called the “$2 billion club,” represents 50% of all Canadian pension obligations.
Some key findings from the report are:
- Overall financial health for the $2 billion Club improved, as aggregate funded status increased from 86% in 2012 to 97% in 2013.
- The surplus position for the $2 bllion Club went from a $21 billion deficit to a $5 billion deficit in 2013, representing a nearly 80% decrease in combined shortfall.
- After adjusting for cash flows, on average the group experienced double-digit returns in 2013.