Ontario DB pension plans remain well funded at year-end 2025: FSRA update
May 14, 2026
Ontario’s defined benefit (“DB”) pension plans continued to report strong funding positions at the end of 2025, according to the latest quarterly update from the Financial Services Regulatory Authority of Ontario (“FSRA”).
FSRA’s fourth-quarter report shows that the median projected solvency ratio for Ontario DB plans was 124% as at December 31, 2025, unchanged from the previous quarter and up from 122% at year-end 2024.
Despite strong funding results, FSRA cautioned against complacency, stating that current solvency levels “can deteriorate rapidly under shocks or continued adverse conditions,” encouraging plan sponsors and administrators to continue monitoring risk exposures and funded status under stress scenarios.
Other highlights from the report include:
- 92% of plans were projected to be fully funded in Q4 of 2025, unchanged from Q3.
- Only 2% of plans had a solvency ratio below 85%, also unchanged.
- Investment returns averaged a net gain of 0.6% in Q4 of 2025, contributing to an average net return of 7.7% for the year.
- Reductions in discount rates for commuted values, along with increased annuity purchase rates, resulted in a slight decrease in pension liabilities for most plans.
Click on ‘More information’ below to view the report:
