Pension update - April 17, 2025

Welcome message

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I want to take a moment to share my continued excitement for the opportunities that lie ahead in 2025. As we know, the pension sector plays a vital role in ensuring the financial well-being of Ontarians, and your ongoing commitment to excellence, innovation, and collaboration continues to inspire me and the Pensions leadership team at FSRA.

In particular, the sector’s support for this year’s Pension Awareness Day, which was seen across Ontario and Canada, was a clear indication of your commitment and dedication to helping Canadians secure better outcomes in their later years.

At FSRA, we remain dedicated to working closely with you to enhance pension plan sustainability, improve regulatory effectiveness, and support a strong, resilient sector.

We will continue to focus on advancing initiatives that strengthen member outcomes, promote transparency, and foster trust across the sector.

I encourage you to stay connected with us through this newsletter, where we share important updates, sector insights, and success stories that highlight the work being done by FSRA’s Pensions teams. As always, feel free to reach out to me directly with any questions or feedback. Thank you for your continued partnership and dedication. Together, let’s work to ensure this year is filled with even more growth, collaboration, and impactful change.

-- Andrew Fung, Executive Vice President, Pensions

FSRA reports

Q4 2024 Solvency Report: Pension plans remain strong and stable in 2024

FSRA released its Q4 2024 Solvency Report for Defined Benefit Pension Plans, revealing that the median solvency ratio remained stable at 122 per cent, increasing by one percentage point since the last quarter.

Throughout 2024, the median solvency funded status has consistently been above 120 per cent – the highest since FSRA began monitoring in 2009.

To learn more, access the report.

New information and processes

Call for new members to join FSRA’s Stakeholder Advisory Committee for Pensions

FSRA is committed to an open, transparent and collaborative approach that involves stakeholders and ensures broad input and perspectives to inform its direction.

To gain fresh perspectives, FSRA is seeking new members for its Stakeholder Advisory Committee for Pensions for a two- to three-year term starting in Summer 2025. The Committee advises FSRA's Board on FSRA's priorities, budget, principles-based regulation and other pension matters as requested that help us determine our supervisory approach. Eligible applicants should hold senior positions within their respective organization or profession and demonstrate a commitment to serving the public interest and protecting pension plan members and beneficiaries.

To apply, review the Terms of Reference, and send your resume and cover letter expressing your interest to [email protected] no later than May 15, 2025.

Updates and reminders

Pension Awareness Day 2025

On February 20, FSRA joined pension plan sponsors, administrators, and other pension sector stakeholders to celebrate Pension Awareness Day 2025. We were thrilled to see this year’s campaign expand, with growing participation from sector partners not only in Ontario but also across Canada.

Thank you to everyone who helped raise awareness about the value of workplace pensions and the importance of saving for retirement. Your collective efforts make a meaningful difference in spreading these important messages.

We value your thoughts. Please feel free to share your feedback on this year’s campaign by emailing [email protected]. Your input is greatly appreciated!

Submission of Applications and Annual Filings on the Pension Services Portal

Plan administrators should be aware that most applications, such as Amendments or Filing Extensions, MUST now be submitted through the Pension Services Portal (PSP).

For a comprehensive list of applications that must be submitted electronically and for further information regarding annual filings, please refer to the following: Filing requirements and deadlines for pension plans and PSP applications.

As a reminder, the deadline for submitting the annual filings for the 2024 fiscal year is Monday, June 30, 2025, and Tuesday September 30, 2025, via the PSP.

Access instructions for using the PSP here.

Making your Pension Benefits Guarantee Fund (PBGF) assessment payments electronically

Plans can remit PBGF assessment payments electronically. These payments, if made on the due date, may take 1-2 business days to be processed by the financial institution, resulting in a late posting date. Payments received by FSRA must have a posting date on or before the due date to avoid late charges.

PBGF assessment certificates must be filed nine months after the fiscal year end of a pension plan. The payment due date for PBGF assessments is the same as the due date for filing the PBGF assessment certificate. Late payments will be subject to the legislated 20% penalty and interest charges and any unpaid balances may also be pursued by a third-party collection agency on behalf of FSRA.

PBGF filings must also be submitted electronically via the PSP.

Access instructions for using the PSP here.

Contribution holiday: what plans need to consider

Plan administrators are required to advise the pension fund trustees of the expected contributions to the pension plan at the beginning of each plan fiscal year using Form 7.

For plans that are considering a contribution holiday, here is a quick reminder of the regulatory requirements:

• A prescribed cost certificate must be filed within the first 90 days of the fiscal year to support a contribution holiday.
• The cost certificate should be prepared in accordance with section 7.1 of Regulation 909 (Regulation) to demonstrate that the plan has sufficient available actuarial surplus (AAS), as prescribed, to meet the funding requirements of the current fiscal year.
• The AAS must be reassessed as of the first day of the current fiscal year but cannot be greater than the AAS disclosed in the last filed actuarial valuation report, adjusted to reflect any amounts funded from AAS since the date of the last valuation.

Important reminder:

• A plan with an “excess surplus” as described in paragraph 147.2(2)(d) of the Income Tax Act (Canada) is not exempted from filing the above cost certificate within the prescribed timeline. Furthermore, a contribution holiday cannot be taken based solely on the existence of an excess surplus if the other requirements under the Regulation have not been met.
• The cost certificate should be prepared in accordance with section 7.1 of Regulation 909 (Regulation) to demonstrate that the plan has sufficient available actuarial surplus (AAS), as prescribed, to meet the funding requirements of the current fiscal year.

If you have further questions, please contact us at [email protected].

Feature: Meet the Prudential Supervision, Large Public Sector Pension Plans team!

The Prudential Supervision, Large Public Sector Pension Plans (LPSPPs) team, led by James Hoffner, supervises the financial management and operational excellence of Ontario's largest public sector pension plans.

The team engages, develops and implements FSRA’s supervisory practices for these plans, with particular emphasis on governance and risk management practices, including management of liquidity and other investment risks as well as operational risks. The LPSPPs manage over 60% of the pension assets in Ontario and represent close to 40% of pension members in Ontario. They include some of the largest pension plans in Canada and are considered leaders internationally in their investment and governance activities.

This specialized team of pension investment specialists works closely with plan administrators. By focusing on collaboration and transparency, the team ensures these plans remain resilient, secure, and well-positioned to meet their long-term obligations to members.

Quick links

• Q4 2024 Solvency Report
• Upcoming FSRA webinars