The Financial Services Regulatory Authority of Ontario published two reports showing that the province’s defined benefit pension plans maintained strong and improving financial positions. The estimated median solvency ratio reached a record 127% as of June 30, 2026, up five percentage points from the previous quarter, primarily driven by an average net investment return of 5.8%. The proportion of plans projected to be fully funded on a solvency basis rose to 93% from 90%. The annual funding report, based on the latest filed actuarial valuations available, also showed improvement in 2025. The median going-concern funded ratio increased to 114% from 112% in the 2024 report, while the share of fully funded plans rose to 87% from 84%. On a solvency basis, the median ratio increased to 117% from 112%, and the proportion of fully funded plans climbed to 87% from 80%. The regulator encouraged plan sponsors and administrators to continue using stress testing, modeling and other analytical tools to identify vulnerabilities and support long-term financial resilience.
2026-08-27Financial Services Regulatory Authority of Ontario
Financial Services Regulatory Authority of Ontario reports record 127% median pension solvency ratio in second quarter of 2026
The Financial Services Regulatory Authority of Ontario reported that the estimated median solvency ratio for defined benefit pension plans reached a record 127% as of June 30, 2026, supported by a 5.8% average net quarterly investment return. Its annual report also showed stronger going-concern and solvency funding levels in 2025, with 87% of plans fully funded on both measures.