TORONTO, Aug. 27, 2026 /CNW/ -- Pension plans in Ontario continue to demonstrate strong financial positions despite ongoing economic uncertainty, global geopolitical tensions, evolving trade dynamics, inflationary pressures and financial market volatility.
That was the finding of two reports issued by Ontario's financial services regulator (FSRA), the Q2 2026 Solvency Report for Defined Benefit Pension Plans and the 2025 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, in the case of the Q2 report, current estimates of their solvency funded positions as at June 30, 2026. 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 2026 Solvency Report for Defined Benefit Pension Plans (quarterly):
- Between March 31 and June 30, 2026, the median solvency ratio increased by five percentage points to a record high of 127 per cent, up from 122 per cent in the previous quarter.
- Strong investment performance was the primary driver of the improvement, with pension plans achieving an average net return of 5.8 per cent during the quarter.
- The percentage of pension plans projected to be fully funded on a solvency basis increased to 93 per cent, compared to 90 per cent as at March 31, 2026.
2025 Report on the Funding of DB Pension Plans:
- Funding levels continued to improve in 2025, with pension plans posting higher median funded ratios and a greater proportion of plans fully funded on both a going-concern and solvency basis.
- Note that this is based on the plans' latest filed actuarial valuation reports available when preparing the 2024 and 2025 Reports.
2025 Report |
2024 Report |
|
Going-concern basis Median funded ratio Percentage of plans fully funded |
114 % 87 % |
112 % 84 % |
Solvency basis Median funded ratio Percentage of plans fully funded |
117 % 87 % |
112 % 80 % |
- The 2024 and 2025 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 plan sponsors and administrators to continue using stress testing, modeling, and other analytical tools to evaluate potential vulnerabilities and strengthen financial resilience.
Learn more
- Q2 2026 Solvency Report for Defined Benefit Pension Plans
- 2025 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:
Russ Courtney
Senior Manager of Media Relations
Financial Services Regulatory Authority
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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