Pension update – August 27, 2025

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Welcome to our 2025 Q2 Pensions newsletter. As we share this update, I’d like to thank you for your continued partnership and engagement with FSRA.

This quarter, we are releasing several important reports and updates that reflect our collective efforts to strengthen the pension sector in Ontario. These include the 2024 Annual Report on the Funding of Defined Benefit Pension Plans and the Q2 Solvency Report.

We launched a consultation on the Supervisory Approach for Target Benefits, to help support the sustainability of MEPPs and allow more employers to offer these plans, helping workers save for retirement. Your feedback and participation in these engagement processes are critical to building a regulatory framework that is clear, effective, and responsive to the needs of the sector. We are pleased to announce the six new members of the Pensions Stakeholder Advisory Committee.

Looking ahead, preparations are already underway for Pension Awareness Day 2026. Together, these initiatives will help promote good outcomes for plan members and support a vibrant, sustainable pension system.

Thank you for your contributions and ongoing collaboration. Wishing you a safe and enjoyable end of summer.

-- Andrew Fung, Executive Vice President, Pensions

FSRA Reports

Q2 2025 Solvency Report

FSRA released its Q2 2025 Solvency Report for Defined Benefit Pension Plans, revealing that the median solvency ratio now stands at 122 per cent as at June 30, 2025, up from 119 per cent as at March 31, 2025.

To learn more, access the report.

2024 Report on the Funding of Defined Benefit (DB) Pension Plans in Ontario

Overall, compared to the 2023 report, the pension plans’ funded position (as at their last filed valuation dates) has improved and increased both on a going-concern and solvency basis. Pension plans continue to demonstrate resilience and stability amid ongoing global economic volatility. The report includes investment and actuarial information and trend analysis.

To learn more, access the report.

Updates and reminders

Have your say: FSRA’s proposed Target Benefit Supervisory Guidance

On January 1, 2025, the Government of Ontario’s target benefit legislative and regulatory framework for multi-employer pension plans (MEPPs) came into effect.

This permanent framework for target benefits will help support the sustainability of MEPPs and allow more employers to offer these plans, helping workers save for retirement.

FSRA is supporting the implementation of the framework through consulting on FSRA’s proposed Supervisory Approach Guidance to Implementation of the Target Benefit MEPP Framework, which explains how FSRA will oversee and apply Ontario’s framework. It outlines FSRA’s approach to:

• reviewing and approving applications to convert defined benefits to target benefits
• assessing whether a plan’s Provision for Adverse Deviation (PfAD) is in alignment with its funding and benefits policy
• supervising plans that provide target benefits through regular reviews, risk assessments, and ongoing engagement with plan administrators

FSRA is inviting stakeholders to provide their input on the proposed guidance. The consultation period is now open and will close on October 14, 2025.  

To learn more, access the consultation page.

Important reminder: Specified Ontario Multi-Employer Pension Plans (SOMEPPs) and valuation dates after January 1, 2025

Certain plan amendments trigger the required filing of a report under section 3 of Ontario Regulation 909 (the Regulation). In such cases, a section 14 valuation report may be filed instead to satisfy this requirement. However, if, in respect of a SOMEPP, a section 3 or section 14 report is filed with a valuation date after January 1, 2025, then under section 6.0.1(2) of the Regulation, the plan will cease to be a SOMEPP.

If you have questions, please send us an email at [email protected].

Welcome FSRA’s new Pensions Stakeholder Advisory Committee members

FSRA is pleased to announce the appointment of six new members to its Pensions Stakeholder Advisory Committees (SAC).

The SAC plays a crucial role in providing valuable insights and advice to FSRA pensions leadership and its board, helping to shape policies and initiatives that impact Ontario’s financial services sector. The SAC process affirms FSRA’s commitment to maintaining an open, transparent, and collaborative approach that involves stakeholders, ensuring broad input and perspectives to inform its direction.

Following a comprehensive review, the following new members will serve a two-year term beginning in July 2025.

FSRA extends its sincere thanks to the following outgoing SAC members for their invaluable service and contributions over the past term. Their efforts, influence, and dedication to FSRA’s work and Ontario’s financial services sectors are deeply appreciated.

Visit the Stakeholder Advisory Committee page for more information and a full list of the Pensions SAC members.

Pension Awareness Day 2026 update

We are pleased to share we have started planning for Pension Awareness Day 2026.  Over the past few months, we have been holding internal strategy and coordination meetings to set priorities and explore opportunities to build on last year’s success. Stay tuned for a stakeholder meeting in the fall, where we will share additional details, discuss ideas, and identify ways to collaborate with you on this important initiative.

Reminder: Pension Benefits Guarantee Fund assessment remittance

As a reminder, Pension Benefits Guarantee Fund (PBGF) assessment certificates must be filed nine months after the fiscal year of a pension plan. The payment due date for PBGF assessments is the same as the due date for filing the PBGF assessment certificate. Note that extensions granted on PBGF Assessment Certificate filings do not apply to your PBGF payments.

In the event that the PBGF assessment certificate and payment due date coincides with a statutory holiday, payments must be remitted in advance of the holiday to ensure adequate processing time by the financial institution and to prevent the imposition of legislated penalties and interest charges.

Late payments will be subject to the legislated 20% penalty and interest charges. Unpaid balances may also be pursued by a third-party collection agency on behalf of FSRA.

Plans can remit PBGF assessments electronically, using the same electronic payment program used for paying FSRA assessments.

Please contact [email protected] if you require assistance using the e-payment option.

If you are remitting payment by cheque, please make your cheque payable to “Pension Benefits Guarantee Fund” and have it mailed to the address indicated on your PBGF Assessment Certificate.

Quick links

• Q2 2025 Solvency Report
• 2024 Report on the Funding of Defined Benefit Pension Plans in Ontario