iAtoday

Defined benefit pension plans are experiencing an evolution in a paradoxical context.

On the one hand, their financial health has been fairly strong in recent years, but on the other, risk management has become more complex, exposing plan sponsors to more difficult decisions and increased risks if they react without careful planning. In this context, it is important to simplify the way risk is managed, in particular by strengthening decision-making discipline.

In 2025, most Canadian defined benefit plans had a solvency ratio in excess of 100%¹, with several even enjoying substantial surpluses.

However, this situation presents new challenges: not only do sponsors have to preserve these surpluses, they also have to contend with persistent financial market volatility, fluctuating interest rates and heightened economic uncertainty. The temptation to react quickly to market shocks can then become a risk in itself, which can undermine the coherence of a long-term strategy.

Our thought leadership article “Simplifying risk management for defined benefit plans” and our white paper on the same topic provide more details, with key data, recommendations and proven solutions.

“Simplifying starts with structuring,” as our expert Ian Claveau points out. This includes adopting a documented decision-making framework based on a limited number of indicators.

Interested in learning more about how to simplify risk management for these plans or about the various tools and strategies available to plan sponsors? Read our article or our white paper.