The median solvency ratio of Ontario defined benefit pension plans increased to 124 per cent during the third quarter of 2025, an increase of two per cent from the previous quarter, according to a new report by the Financial Services Regulatory Authority of Ontario.
The percentage of pension plans that were projected to be fully funded on a solvency basis as at Sept. 30 was 92 per cent, compared to 89 per cent as at June 30. Only two per cent of plans had a solvency ratio below 85 per cent, a decrease of one percentage point since last quarter.
Read: FSRA finds Ontario DB plans’ average solvency ratio increasing to 122% in Q2 2025
Investment returns for the quarter averaged 4.6 per cent, said the report, noting the Canadian dollar declined compared to the U.S. dollar, while Canadian equities provided strong returns.
The non-indexed commuted value discount rates for the select and ultimate periods increased by 10 and 40 basis points, respectively, whereas the non-indexed annuity purchase discount rate moved in the opposite direction, decreasing by 20 bps. As a result of these offsetting movements, most plans saw a slight increase in pension liabilities, the report noted.
Read: Ontario DB pension plans’ average solvency ratio declining to 119% in Q1 2025: FSRA