Radar municipal

On April 5, the Government of Quebec published a draft Regulation respecting the funding of defined-benefit pension plans of the municipal and university sectors (draft Regulation), which replaces the current regulation for pension plans in this sector. Market stakeholders had been expecting this announcement, since this regulation covers the specifics of funding and administering defined benefit pension plans in the municipal and university sectors.

After a quarter marred by market and interest rate volatility, the average pension plan funded ratio at the end of Q1­ 2023 remained consistent with that as at December 31, 2022.

As at March 31, 2023, the average funded ratio of municipal and university sector pension plans is 102% for the Previous component and 119% for the New component (the components distinguish between years of service accumulated before and after January 1, 2014 for the municipal sector and January 1, 2015 for the university sector). The ratios for both plan components are respectively up 3% and 4% over the quarter.

Today we are launching the Normandin Beaudry Pension Plan Financial Position Index. Our specialists closely monitor the financial position of our clients’ defined benefit pension plans and will present this index to you on a quarterly basis, and this, separately for the Quebec municipal and university sector.