FSRA reports show funding ratios improved in 2024 and plans stayed resilient through 2025 shifts
The solvency ratio for Ontario’s defined benefit pension plans rebounded to 122 percent at the end of June 2025, marking a recovery from market turbulence earlier in the quarter.
According to the Financial Services Regulatory Authority of Ontario’s (FSRA) Q2 2025 Solvency Report, the rebound followed a five-percentage point decline in early April triggered by a US tariff announcement that unsettled global markets.
Despite that setback, investment returns of 1.5 percent and higher solvency discount rates supported the recovery, with 89 percent of plans fully funded on a solvency basis and only 3 percent below 85 percent.
FSRA’s 2024 Report on the Funding of Defined Benefit Pension Plans in Ontario showed further signs of stability.
Median funded ratios improved compared with 2023 on both a going-concern and solvency basis, rising to 112 percent in 2024 from 111 percent and 107 percent respectively the year prior.
The share of plans fully funded climbed to 84 percent on a going-concern basis and 80 percent on a solvency basis, up from 83 percent and 71 percent.
The 2024 report also projected the median solvency ratio at 120 percent as of December 31, 2024, an improvement from 117 percent in 2023.
These results underline how plan funding positions respond directly to shifting market conditions.
FSRA emphasized the need for plan sponsors and administrators to maintain vigilance.
The regulator encouraged the continued use of stress testing, modelling, and other tools to assess potential vulnerabilities and reinforce financial resilience
