TORONTO, June 6, 2024 /CNW/ - Amidst global economic uncertainty and turbulence, Ontario defined benefit pension plans continue to show remarkable resilience, boasting positive financial outcomes.
According to the latest solvency report by Ontario's financial services regulator (FSRA), 90% of pension plans were fully funded in the first quarter of 2024, and the median solvency ratio was 122%, a third all-time high within a year.
"Ontarians can rest assured that their retirement savings are well protected as most pension plans continue to perform well despite global economic challenges," said Andrew Fung, Executive Vice-President of Pensions at FSRA. "However, the economic conditions can change quickly, and plan sponsors and administrators must be prepared for future challenges and risks in order to safeguard the interest of plan members."
Though the results are on an upward trend, FSRA continues to encourage plans to be prepared for future changes, particularly in long-term interest rates. Plans must remain vigilant, proactively managing risks and reassessing investment strategies to protect plan members and their families.
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.
Learn more:
FSRA continues to work on behalf of all stakeholders, including pension beneficiaries, to ensure financial safety, fairness, and choice for everyone. Learn more at www.fsrao.ca.
FOR MEDIA INQUIRIES:
Russ Courtney
Sr. 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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