The median solvency ratio of Ontario defined benefit pension plans increased to 122 per cent during the second quarter of 2025, an increase of three per cent from the previous quarter, according to a new report by the Financial Services Regulatory Authority of Ontario.
Ontario DB plans showed resiliency and remain on track despite economic uncertainty during the quarter ending June 30, 2025. There was a five per cent decline in the median solvency ratio at the start of April, due to tariff uncertainty from the U.S., the report noted.
Read: Ontario DB pension plans’ average solvency ratio declining to 119% in Q1 2025: FSRA
The increase in the projected solvency position was attributed to an increase in solvency discount rates and a 1.5 per cent average investment return during the reporting period, despite ongoing concerns about global trade and increased economic uncertainty.
The report found plans with an expected solvency ratio greater than 100 per cent stayed the same quarter over quarter at 89 per cent, which was the same for plans with solvency ratios between 85 per cent and 100 per cent and plans below 85 per cent.
“These fluctuations highlight the sensitivity of pension funding positions and reinforce the importance of ongoing vigilance and risk management, rooted in a perspective focused on long-term sustainability,” the report said.
The FSRA also reported the median funded ratio of Ontario DB plans on a going-concern basis reached 112 per cent in 2024, a one per cent increase from 2023. The median funded ratio on a solvency basis rose to 112 per cent in 2024, compared to 107 per cent the year before.
Read: Median Canadian pension plan returns 0.6% in Q2 2025: report