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 During the month of December, the funded position of a typical pension plan decreased on both a solvency basis and an accounting basis. The investment return was 3.9% for the month for a representative pension plan portfolio, driven by positive returns in both equity and bond markets. The global developed and emerging equity markets index, the MSCI ACWI, returned 1.9% in Canadian dollar terms. The Canadian equity index, the S&P/TSX Composite, finished the month with a return of 3.9%. Short-term Government of Canada bond yields decreased by approximately 0.32%, whereas long-term Government of Canada bond yields decreased by approximately 0.34% over the month of December. Corporate credit spreads decreased by approximately 0.10% to 0.15% during the month of December for short-term and medium-term bonds. Corporate credit spreads for long-term bonds did not change materially. Market expectations for long-term inflation (the break-even inflation rate) were approximately 1.62% at the end of December, which represents a 0.12% decrease from the end of November. The accounting pension expense rose sharply in December as accounting discount rates decreased significantly during this period. INDEX (JAN 1, 2023 = 100) 50 60 70 80 90 100 110 120 130 106.3 108.4 101.0 98.4 124.6 113.7 Plan asset index Accounting (pension expense) index Accounting (balance sheet) index Commuted value index Annuity proxy index Solvency index December 31, 2023 Pension Indices by TELUS Health

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