By Tom Bradley

The improvement in the financial position of our defined benefit pension plans was the biggest economic highlight of last year. As we pointed out in a post two weeks ago, the change has been dramatic. Higher bond yields, healthy stock returns and increased contributions have all played a role in the turnaround.

Yesterday, we saw evidence of what I was talking about. Air Canada announced that its pension plans, which started 2013 with a $3.7 billion deficit, now have a small surplus. The three factors all played a part (about $3 billion worth) and there were some changes to the plans that contributed another billion.

I suspect AC will be the first of many companies and organizations to report a big win.