The Financial Services Regulatory Authority of Ontario released its Q1 2025 Solvency Report for Ontario defined benefit pension plans, covering 1 January to 31 March 2025. The median solvency ratio was 119%, three percentage points lower than the previous quarter. An estimate for the first week of April 2025, prepared after the announcement of US tariffs, suggested a further decline of about five percentage points from end‑Q1 amid adverse market conditions. FSRA noted that funding levels remained generally healthy despite the deterioration and urged plan administrators to proactively manage risk and regularly reassess investment strategies in light of ongoing economic uncertainty. The regulator recommended using stress testing, modelling and other analytical tools to identify vulnerabilities and strengthen financial resilience.
Financial Services Regulatory Authority of Ontario 2025-06-12
Financial Services Regulatory Authority of Ontario publishes Q1 2025 DB pension solvency report with median ratio at 119% and further early April decline estimated
The Financial Services Regulatory Authority of Ontario released its Q1 2025 Solvency Report for defined benefit pension plans, noting a median solvency ratio of 119%, down three percentage points from the previous quarter. An early April estimate indicated a further decline of about five percentage points due to adverse market conditions following US tariff announcements. FSRA advised plan administrators to manage risk proactively, recommending stress testing and analytical tools to enhance financial resilience.