In a stunning example of just how much corporate pension systems gained as the markets climbed, Air Canada announced it projects its retirement system started 2014 with a slight surplus a year after posting a $3.32 (American dollars) billion deficit.
Investment returns of 13.8 percent, raising the discount rate used to determine future liabilities, a company contribution of $201.9 million to the system and a four-year strategy of matching investments to liabilities all contributed to eliminating the deficit, Canada’s largest air carrier said.
Over the last four years, the airline reported a total investment return of 11.8 percent. Final figures for 2013 are still being tabulated.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
