The Financial Services Regulatory Authority of Ontario (FSRA) published its Q4 2024 Solvency Report for Ontario defined benefit pension plans, estimating a median solvency ratio of 122%, up one percentage point from the prior quarter. The median solvency funded status remained above 120% throughout 2024. FSRA noted this is the highest median solvency funded status since it began monitoring in 2009, attributing year-end funding strength to strong market gains and steady interest rates. It urged plans to maintain proactive risk management and reassess investment strategies, including using stress tests, modelling, and other analytical tools, and reiterated that the quarterly report is intended to provide timely information on plan funding and economic conditions.
Financial Services Regulatory Authority of Ontario 2025-04-17
Financial Services Regulatory Authority of Ontario releases Q4 2024 solvency report showing defined benefit pension plans’ median solvency ratio steady at 122%
The Financial Services Regulatory Authority of Ontario reported a Q4 2024 median solvency ratio of 122% for Ontario defined benefit pension plans, marking the highest since 2009. The increase is attributed to strong market gains and steady interest rates. FSRA advises plans to enhance risk management and reassess investment strategies using stress tests and analytical tools.