Radar municipal

Normandin Beaudry has updated its pension plan financial position index as at March 31, 2026, tracking defined benefit pension plans in Canada.

On December 31, 2025, Normandin Beaudry updated its pension plan financial position index, continuing the tracking initiated on December 31, 2021.

After remaining relatively stable in the first half of the year, the average funded ratio improved in Q3 2025.

Despite high volatility in financial markets in the first half of the year, the financial position of pension plans recovered in the second quarter of 2025.

Amid a period of stock market turbulence, the first quarter of 2025 ended with a slight deterioration in the financial position on the going concern and solvency basis.

On January 29, 2025, Retraite Québec published guidelines concerning the reinstatement of the automatic pension indexation for members who were retired on December 31, 2013 within the meaning of the Act to foster the financial health and sustainability of municipal defined benefit pension plans (Act 15).

The going concern financial position improved during 2024 but remained stable in the fourth quarter. Meanwhile, the solvency financial position remained stable throughout 2024 and in the last quarter.

In Q3 2024, the average pension plan’s going concern financial position remained stable. Solvency remained stable for the Previous component but deteriorated for the New component.

The average funded ratio of pension plans remained stable in Q2 2024, while the solvency ratio improved slightly.

The year 2024 is off to a positive start for pension plans, with favourable stock market returns and rising interest rates, which tend to reduce the value of pension plan liabilities.

On April 11, the Supreme Court of Canada denied the application for leave to appeal the challenge to the Act to foster the financial health and sustainability of municipal defined benefit pension plans (Bill 15).

On January 23, the Government of Quebec adopted the Regulation respecting the funding of defined-benefit pension plans of the municipal and university sectors (Regulation). The Regulation will come into force on February 22, 2024, and amendments will apply for actuarial valuations as at December 31, 2023.