Pension progress? - MoneySense

Pension progress?

If Canada is in the midst of a pension crisis, why are fund balance sheets improving? This and more in the daily roundup.

  • The balance sheets of Canada’s pension plans is improving, according to Mercer. The Mercer Pension Health Index stood at 91% in May, up from 86% at the end of April and 82% at the beginning of 2013. Mercer cited three main reasons for this: the markets are up, interest rates are improving and plan sponsors are making contributions to fund the deficits.  The infographic below by the The Boston Consulting Group illustrates how and where Canada’s 10 biggest pension plans are investing contributions. Particularly noteworthy is the cost at which pension plans are able to manage their portfolios: 0.3%. The economies of scale afford pension plan managers the types of operating costs average investors could only dream of!