FSRA Reports Ontario Pension Plans Reach Record Funding Levels
October 13, 2026
Ontario defined benefit pension plans have reached a record estimated median solvency ratio of 127% as at June 30, 2026, according to a new report from the Financial Services Regulatory Authority of Ontario (“FSRA”).
FSRA's latest pension funding reports – the Q2 2026 Solvency Report for Defined Benefit Pension Plans and the 2025 Report on the Funding of Defined Benefit Pension Plans in Ontario - indicate that Ontario DB pension plans continue to maintain strong funding positions despite ongoing economic uncertainty, geopolitical tensions, evolving trade dynamics, inflationary pressures, and market volatility. FSRA also noted that funding positions remain sensitive to market conditions. It encouraged plan sponsors and administrators to keep using stress testing and other analytical tools to manage risk.
Q2 2026 Solvency Report for Defined Benefit Pension Plans Highlights:
- Between March 31 and June 30, 2026, the estimated median solvency ratio increased by five percentage points to a record high of 127%, up from 122%.
- Strong investment performance was the main driver of the improvement. Plans achieved an average net return of 5.8% during the quarter.
- The percentage of plans projected to be fully funded on a solvency basis increased to 93%, compared to 90% as at March 31, 2026.
2025 Report on the Funding of Defined Benefit Pension Plans in Ontario Highlights:
- On a going-concern basis, the median funded ratio increased to 114% from 112% as compared to the prior year. The percentage of fully funded plans increased to 87% from 84%.
- On a solvency basis, the median funded ratio increased to 117% from 112% as compared to the prior year. The percentage of fully funded plans increased to 87% from 80%.
Click on ‘More information’ below to read the reports:
