Mercer operates in 130 countries with 25,000 employees. The company provides professional services in the areas of risk, strategy, and people. Mercer provides investment solutions for defined benefit (DB) pension plans. The company is heavily research-based and tracks nearly 500 DB plans including public, private, and not-for-profit sectors in Canada.
Mercer reported that Q1 (January – April 2022) revealed improvement for most DB plans in their database despite Russia’s attack on Ukraine.
- The solvency ratio increased from 103% as at December 31, 2021, to 108% as at March 31, 2022.
- Although returns were negative for most DB plans in Q1, bond yields increased between 75 and 134 basis points reducing plan liabilities.
- 75% of plans in the Mercer pension database are estimated to be in a surplus position on a solvency basis.
Furthermore, RBC Investor & Treasury Services reported that Canadian DB pension plans had healthy returns of 8.9% at the end of 2021.