RBS

P. 1 The Pension Indices by TELUS Health, released monthly, condense the journey that pension plans have experienced during the year into a few key statistics. More importantly, they also provide an early indicator of the challenges and opportunities that are yet to come for plan sponsors and administrators to help with the monitoring and management of their pension plans. Highlights Over the month of May, the funded position of a typical pension plan slightly decreased on a solvency basis, but slightly increased on an accounting basis. The investment return was -2.0% for the month for a representative pension plan portfolio, driven by mainly negative returns in equity markets and an increase in bond yields. The global developed and emerging equity markets index, the MSCI ACWI, returned -0.9% in Canadian dollar terms. The Canadian equity index, the S&P/TSX Composite, finished the month with a return of -5.0%. Returns for Canadian bond indices were negative as yields increased. Short-term Government of Canada bond yields increased by 0.57% during the month and long-term Government of Canada bond yields increased by 0.18%. Corporate credit spreads have remained relatively stable since last month. Market expectations for long-term inflation (the break-even inflation rate) were approximately 1.77% at the end of May, which represents a 0.14% increase from the end of April. The accounting pension expense index saw a decrease in May mainly due to an increase in the accounting discount rates during this period. Solvency Index Annuity Proxy Index Commuted Value Index Accounting (Balance Sheet) Index Accounting (Pension Expense) Index Plan Asset Index INDEX (JAN 1, 2023 = 100) May 31, 2023 Pension Indices by TELUS Health. 50 60 70 80 90 100 110 120 101.4 103.7 103.2 98.8 105.1 110.2

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