The median solvency ratio for Ontario defined benefit pension plans remained stable at 122 per cent in the fourth quarter of 2024, according to a new report by the Financial Services Regulatory Authority of Ontario.
It noted throughout 2024, the median solvency funded status remained above 120 per cent, the highest percentage since the FSRA started monitoring in 2009. Notably, overall solvency discount rates increased since the last quarter resulting in a decrease in plan liabilities.
Read: Ontario DB pension plans’ average solvency ratio increases to 122% in Q1 2024: FSRA
Ontario DB plans returned an average of 1.1 per cent during the quarter and an average of 10.5 per cent for the entire year.
“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, executive vice-president of pensions at the FSRA, in the report.
Read: FSRA monitoring target-benefit framework, pension risks in 2025