FSRA’s Solvency Report highlights the financial strength of Ontario pension plans in Q3 2025
December 12, 2025
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The Financial Services Regulatory Authority of Ontario’s (“FSRA”) Q3 2025 Solvency Report (the “Report”) showed that Ontario’s defined benefit pension plans have remained financially strong, with the median solvency ratio reaching a new high.
The Report indicates that the median solvency ratio of pension plans sits at 124%, increasing two percentage points from the prior quarter. FSRA noted that the increase in the median solvency ratio was driven by robust Q3 market performance amid ongoing global trade and economic uncertainties.
Other key insights include:
- The percentage of pension plans expected to be fully funded on a solvency basis as at September 30, 2025 was 92%, up from 89% as at June 30, 2025.
- Only 2% of plans had a solvency ratio below 85%, a decrease of one percentage point since the last quarter.
- Investment returns in Q3 2025 averaged a net return of 4.6%.
- Discount rates for commuted values increased while annuity purchase rates decreased, leading to a slight increase in pension liabilities for most plans.
The Report notes that “[t]his strength underscores the importance of prudent governance and proactive risk management. In the face of ongoing trade uncertainties, market volatility and a potentially weakened Canadian economy, it serves as a reminder that achieving a pension plan’s sustainability is not a one-time exercise; rather, it requires continuous commitment, strategic planning, and active oversight.”
Click on ‘More Information’ below to read the full Report:
