TORONTO, Aug. 27, 2025 /CNW/ - Pension plans in Ontario continue to remain strong despite the economic uncertainty created by ongoing tariff and global trade concerns, and significant geo-political events.
That was the finding of two reports issued by Ontario's financial services regulator (FSRA), the Q2 2025 Solvency Report for Defined Benefit Pension Plans and the 2024 Report on the Funding of Defined Benefit (DB) Pension Plans in Ontario. Together, these reports provide snapshots in time of how plans are being funded based on statutory filings and a more current estimate of their solvency funded positions as at June 30, 2025. They illustrate that pension plan funding positions are sensitive to market conditions and reinforce the importance of ongoing vigilance and risk management by plan sponsors and administrators to achieve long-term sustainability.
Report highlights include:
Q2 2025 Solvency Report for Defined Benefit Pension Plans (quarterly):
- Between March 31 and June 30, 2025, the median solvency ratio rebounded to 122 per cent – increasing by three percentage points from the previous quarter.
- Following the U.S. tariff announcement on April 2, 2025, global markets experienced heightened volatility, resulting in a five percentage point decline in the median solvency ratio in early April. Despite this setback, pension plans demonstrated resilience and recovered over the remainder of the quarter.
2024 Report on the Funding of DB Pension Plans:
- Compared to the 2023 report, the funded position of pension plans improved, both on a going-concern and solvency basis.
- Note that this is based on the plans' latest filed actuarial valuation reports available when preparing the 2023 and 2024 Reports.
2024 Report |
2023 Report |
|
Going-concern basis Median funded ratio Percentage of plans fully funded |
112% 84% |
111% 83% |
Solvency basis Median funded ratio Percentage of plans fully funded |
112% 80% |
107% 71% |
- The 2023 and 2024 Reports also provide an estimate of financial positions as at December 31 of each year to facilitate comparisons.
FSRA remains committed to supporting the ongoing stability and security of these plans, even as the financial landscape continues to evolve. FSRA strongly encourages pension plans remain vigilant and continue to use stress testing, modeling, and other analytical tools to evaluate potential vulnerabilities and strengthen financial resilience.
Learn more
- Q2 2025 Solvency Report for Defined Benefit Pension Plans
- 2024 Report on the Funding of Defined Benefit (DB) Pension Plans in Ontario
FSRA continues to work on behalf of all stakeholders, including consumers and pension plan members, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
FOR MEDIA INQUIRIES:
Ashley Legassic
Sr. Media Relations and Digital Officer
Financial Services Regulatory Authority
C: 647-719-8426
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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