Pension plans remain strong despite slight drop in funding levels
TORONTO, Nov. 20, 2024 /CNW/ - Ontario's financial services regulator (FSRA) has released its Q3 2024 Solvency Report for Defined Benefit Pension Plans, revealing that the overall funded position is still strong at 121 per cent. However, a two-percentage point decrease from last quarter breaks a steady upward trend of seven consecutive quarters.
"With inflation trending downward, potential interest rate declines could negatively impact funding levels," said Lester Wong, Chief Actuary, Pensions, FSRA. "This serves as an important reminder for plan sponsors and administrators to stay alert, future-focused, and strategic in managing risks as market conditions evolve."
FSRA encourages pension plans use stress tests, modeling, and other analytical tools to proactively manage risks and reassess investment strategies to ensure financial resilience.
FSRA releases its solvency report each quarter to assess the financial health of Ontario defined benefit pension plans. The report provides timely information to plan members about the performance of their plan and the state of the economy both nationally and internationally.
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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 FSRA.
FOR MEDIA INQUIRIES:
For media inquiries, please contact:
Russ Courtney
Senior Manager, Media Relations
Financial Services Regulatory Authority of Ontario
C: 437-225-8551
Email: [email protected]
SOURCE Financial Services Regulatory Authority of Ontario
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