Financial Services Regulatory Authority of Ontario publishes reports showing Ontario DB pension plans’ median solvency ratio rebounded to 122% in Q2 2025

The Financial Services Regulatory Authority of Ontario (FSRA) issued its Q2 2025 Solvency Report for Defined Benefit Pension Plans and its 2024 Report on the Funding of Defined Benefit Pension Plans in Ontario, finding that Ontario defined benefit (DB) pension plans continue to be in sound financial positions despite heightened economic and geopolitical uncertainty. The reports provide point-in-time views of funding based on statutory filings and an updated estimate of solvency funded positions as at June 30, 2025, while underscoring that funded status can shift materially with market conditions. In the Q2 2025 Solvency Report, the median solvency ratio increased by three percentage points over the quarter to 122% between March 31 and June 30, 2025, after a period of market volatility in early April that followed the April 2 U.S. tariff announcement and drove a five percentage point decline in the median solvency ratio before recovering later in the quarter. In the 2024 funding report, the median going-concern funded ratio rose to 112% (from 111% in the prior report) and the share of plans that were fully funded increased to 84% (from 83%), while the median solvency funded ratio improved to 112% (from 107%) and the share of plans fully funded increased to 80% (from 71%); these comparisons reflect the latest filed actuarial valuation reports available when preparing each report. FSRA also encouraged continued vigilance by plan sponsors and administrators, including the use of stress testing and modelling to assess vulnerabilities.