Source: Benefits Canada
The median solvency ratio among Canadian defined benefit pension plans was 132 per cent as of Dec. 31, 2025, an increase of seven per cent during the year, including three per cent in the final quarter, according to a new report by Mercer Canada.
The report, which analyzed more than 470 plan sponsors, found Canadian DB pension plans generally experienced strong returns on equities and modest returns on fixed income. Interest rates increased, which resulted in a slight decrease in the value of pension promises.
Overall, the report noted these outcomes contributed to a significant improvement in solvency ratios. DB pension plans that used fixed income leverage may have experienced stable or lower solvency ratios over the quarter.