Air Canada wipes out its $3.7-billion pension deficit, swings to small surplus

2014-01-28T22:49:32-08:00January 23rd, 2014|Categories: Defined Benefit Plans|Tags: , , , , |

A massive pension deficit that threatened to send Air Canada on its second trip through bankruptcy protection in a decade has suddenly turned into a surplus. The airline, which was staring at a solvency deficiency of $3.7-billion in its pension plans on Jan. 1, 2013, said the plans climbed to a small surplus position just one year later. The sharp improvement was driven by strong equity markets, rising interest rates and changes in pension benefits for employees. The remarkable [...]