Ontario DB pension plans closed 2024 with highest full-year solvency levels since 2009: FSRA quarterly report
May 22, 2025
Ontario’s defined benefit pension plans ended 2024 on a high note, with median solvency levels up one percentage point to 122%, according to the latest quarterly update from the Financial Services Regulatory Authority of Ontario (FSRA).
The fourth-quarter report also revealed that the median solvency funded status remained above 120% for the entirety of 2024. This marks the highest full-year solvency level achieved since FSRA began tracking plans in this way in 2009.
"It has been a remarkable year for pension plans as they closed the year with robust funding positions from strong market gains and steady interest rates," said Andrew Fung, FSRA’s Executive Vice-President, Pensions.
Still, despite the strong results, the FSRA report cautioned against complacency, urging plan administrators to continue reassessing their investment strategies and to use stress tests, modelling and other analytical tools to ensure financial resilience.
Other highlights from the report include:
- 91% of plans were projected to be fully funded in Q4, up from 90% in Q3.
- Only 2% of plans had a solvency ratio below 85% in Q4, unchanged from Q3.
- Investment returns averaged a net gain of 1.1% in Q4, bringing the average net return for 2024 to 10.5% – the second consecutive year of double-digit returns.
- An overall increase in solvency discount rates –driven by a 21-basis-point rise in the non-indexed annuity purchase discount rate – resulted in a slight decrease in plan liabilities.
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