Pension Indices by TELUS Health: November 2025

In November, the funded status of a typical pension plan slightly increased on a solvency basis but decreased on an accounting basis.

The representative pension plan portfolio returned 0.7 per cent for the month, reflecting mixed performance across equity markets and positive performance in bond markets.

The global developed and emerging equity markets index returned -0.5 per cent in Canadian dollar terms and Canadian equities finished the month with a return of 3.7 per cent.

Both short-term and long-term Government of Canada bond yields remained relatively stable over the month of November. Corporate bond credit spreads also remained stable across all durations.

Market expectations for long-term inflation (the break-even inflation rate) were approximately 1.97 per cent at the end of November, which represents an increase of 0.02 per cent since the end of October.

“As many Canadian pension plans continue to experience improved funded positions, plan sponsors are increasingly shifting their focus to surplus management”, says Andrea Knoll, Partner and West Region Lead in TELUS Health’s Consulting team.

“With the funded status of the average pension plan continuing to show improvements through the second half of the year, it provides an opportune time for plan sponsors to proactively address the governance and policy questions that arise when plans are in surplus territory. Key among these considerations is intergenerational equity and ensuring that surplus management decisions are fair and balanced across different membership groups, and considering how decisions around benefit improvements, contribution holidays, or surplus withdrawals impact each cohort differently, both in the short and long term.

Developing a surplus management framework is essential to navigate these complex decisions. This framework should clearly articulate the plan’s objectives, establish governance processes for evaluating surplus utilization options, and ensure transparency in how decisions affect different groups. By taking a thoughtful, proactive approach to surplus management now, plan sponsors can position their plans for long-term sustainability while maintaining fairness and equity across all plan members.”

Click here to read the November report.