According to the Northern Trust Pension Universe, Canadian Pension plans declined on average -8.8% for the quarter and -14.5% year to date. However, Northern Trust President and CEO Katie Pries stated that “Although rising interest rates create market uncertainty causing a decline in pension assets, higher rates improve pension funding ratios and the overall financial health of pension plans, serving as a cushion through this volatile period,” This aligns with what Mercer Canada reported earlier this month and with the industry update we published on for Q1 dated April 1, 2022.
October 1 – December 31, 2023 – Prescribed Interest Rates for Q4
CRA publishes prescribed interest rates each quarter. If you are in arrears to the government, for example, late in paying your income tax instalment, you will be charged interest.