FSRA says Ontario pension plans regained ground to reach 122% solvency in Q2 following tariff-driven market setback
October 02, 2025
Ontario’s defined benefit pension plans withstood strong economic headwinds in the second quarter of 2025 as median solvency levels rose three percentage points to 122% as of June 30, according to the latest solvency report from the Financial Services Regulatory Authority of Ontario (“FSRA”).
FSRA’s report revealed that Q2 2025 began on a low, with a five-percentage-point decline in median solvency levels in April following the U.S. tariff announcement at the beginning of that month. However, pension plans “demonstrated resilience and recovery over the remainder of the quarter”, FSRA said.
Despite these strong results, the FSRA report encouraged plan administrators to remain vigilant. It urged them to continue using stress testing, modeling, and other analytical tools to evaluate potential vulnerabilities and strengthen financial resilience.
Other highlights from the report include:
- 89% of defined benefit pension plans registered in Ontario were projected to be fully funded at the end of Q2, unchanged from the end of Q1.
- Only 3% of defined benefit pension plans registered in Ontario had a solvency ratio below 85% at the end of Q2, also unchanged from the end of Q1.
- Investment returns averaged a net return of 1.5% in Q2.
Click ‘More Information’ below to review the full report:
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