What happened
Canadian defined benefit pension plans start 2026 in strong financial shape, as reported by Talent Canada, citing the Mercer Pension Health Pulse. The median solvency ratio was 132 per cent on Dec. 31, 2025. That is up seven per cent over 2025, including three per cent in the final quarter.
The share of plans with a solvency ratio above 120 per cent rose from 55 per cent to 68 per cent during the year. The share above 100 per cent rose from 88 per cent to 92 per cent. Mercer's database covers 471 plans across Canada, in public, private and not-for-profit sectors.
Mercer points to strong equity returns and higher mid- and long-term bond yields, which lowered the value of pension promises. It says a surplus can fund contribution holidays or plan design changes, but warns that plan health has deteriorated quickly in the past. It also expects pressure on pension funds to invest more in the domestic economy.
Why it matters if you are hiring
If you sponsor a DB plan, a healthy funded position gives you options you did not have a few years ago. Whether to use them is a decision for your finance and HR leaders, with your actuary. The report is clear that caution is warranted.
For hiring, the plan itself is a selling point. A DB pension is rare in private-sector offers now, and candidates in finance, skilled trades, plant operations and management often weigh it heavily against a slightly higher salary elsewhere. Many job ads never mention it.
It also bears on retention. People with years toward a pension are slower to leave, and that affects how you plan succession and backfill. If a surplus leads to design changes, such as for new hires, expect that to show up in your offer acceptance rates.
If you do not offer a DB plan, you are competing against employers who do. Your total rewards story needs to be specific: group RRSP matching, DPSP contributions, and benefits that start on day one.
One thing to do this week
Pull your last five job postings and offer letters. Check whether the pension or retirement benefit is stated, with the actual employer contribution or plan type. If it is missing, add one plain line to every posting and have recruiters raise it in the first screening call.
Traverse Staffing places finance, operations and other professionals with Canadian employers, and we help hiring managers frame total rewards so the right candidates see the full offer.