Pension update – August 27, 2026
On this page
- Welcome message
- FSRA reports
- Pension reminders
- Thank you for being a part of FSRA Exchange!
- Administrative relief requests of defined benefits filings following an annuity discharge: Understanding FSRA's review process
- Notice requirements and relief for Specified Ontario Multi-Employer Pension Plan to target benefit conversions
- Reporting surplus or prior year credit balance on Annual Information Return filings
- Download the latest FSRA Pension forms
- Pension updates
- Quick links
- On the horizon
Welcome message
As we enjoy the last stretch of summer, I’m pleased to share important updates on initiatives underway across Pensions.
In June and July, we held productive meetings with our Technical Advisory Committees (TACs), where committee members provided valuable feedback on FSRA’s work and the sector’s priorities. We greatly appreciate the ongoing involvement and thoughtful input that TAC members continue to provide.
During these meetings, FSRA shared updates on its Pension Transformation project – an important initiative modernizing the Pension Services Portal (PSP). Through this project, we are committed to working closely with the sector to support a seamless transition to the updated system and on training and user testing. You can read more about it below.
As part of FSRA’s process for ensuring Guidance is up-to-date and fit for purpose, FSRA has reviewed four pieces of Guidance and have summarized the outcome of those reviews in this newsletter.
We have released two FSRA Pensions annual reports: the 2025 Report on the Funding of Defined Benefit Pension Plans in Ontario and the Pension Benefits Guarantee Fund (PBGF) Report ending March 31, 2026. These reports demonstrate that the pension sector remains strong, including continued positive reporting on the solvency funded status of defined benefit plans. FSRA continues to underscore the importance of maintaining a strong focus on good governance, proactive risk management, and collaborative engagement between the regulator and the sector.
On a personal note, this will be the last update that I will be providing to the sector before embarking on my retirement as announced on June 4, 2026. I am extremely proud of the work that the FSRA Pensions team has accomplished during my time as executive vice-president. I am confident that this positive work of collaboration, transparency, and commitment to pension beneficiaries will continue.
Sincerely,
-- Andrew Fung, Executive Vice President, Pensions
FSRA reports
Q2 2026 Solvency Report for Defined Benefit Pension Plans
FSRA released its Q2 2026 Solvency Report for Defined Benefit Pension Plans, revealing that the median solvency ratio now stands at 127 per cent as at June 30, 2026, up from 122 per cent as at March 31, 2026.
To learn more, access the report.
2025 Report on the Funding of Defined Benefit Pension Plans in Ontario
Overall, compared to the 2024 report, the pension plans’ funded position (as at their last filed valuation dates) continued to strengthen, with higher median funded ratios and a greater proportion of plans fully funded on both 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.
Pension Benefits Guarantee Fund Annual Report
FSRA continues to support its CEO in the administration of the Pension Benefits Guarantee Fund (PBGF) and maintains ongoing oversight and monitoring of the Investment Management Corporation of Ontario (IMCO) through established governance and reporting processes. These processes help ensure that investment activities remain aligned with FSRA’s governance standards, investment objectives, risk tolerance, and the overall objectives of the PBGF.
This annual report provides key information on the Fund’s financial position and activities as at March 31, 2026. New this year, the report includes information on the increase to the PBGF guarantee amount and the Fund's continued sustainability.
To learn more, access the report.
Pension reminders
Thank you for being a part of FSRA Exchange!
Thank you to everyone who attended FSRA Exchange on May 25. We were pleased to welcome stakeholders from across sectors for a day of meaningful discussions, valuable insights, and collaborative engagement.
The event was a tremendous success, bringing together industry professionals, partners, and stakeholders to exchange ideas, explore emerging issues, and strengthen connections. We appreciate the thoughtful participation, questions, and feedback shared throughout the event.
We look forward to continuing these important conversations and building on the momentum from FSRA Exchange in the months ahead.
Administrative relief requests of Defined Benefit filings following an annuity discharge: Understanding FSRA's review process
As outlined in FSRA’s Guidance, Approach to Requirements After Certain Annuity Purchases for Defined Benefit Plans, pension plan administrators who purchase buy-out annuities in respect of all defined benefit (DB) entitlements under a pension plan in accordance with Section 43.1 of the Pension Benefit Act (PBA), may submit a written request for administrative relief from certain DB filing requirements.
Such a request must:
- clearly explain why administrative relief should be granted
- describe the proposed use of any remaining surplus
- identify the specific filings for which relief is being requested
FSRA assesses requests based on whether all DB liabilities have been fully discharged and whether any surplus remains within the plan. The chart below outlines FSRA’s general approach on administrative relief for certain DB filings. Whether administrative relief is granted will continue to be determined based on the specific circumstances of each case.
| Scenario | DB Filings |
|---|---|
| 1. All DB liabilities discharged – no surplus remaining | FSRA may consider granting relief from filing the AVR/AIS, IIS, PBGF Assessment Certificate, and SIPP. |
| 2. All DB liabilities discharged – surplus remaining | FSRA generally would not provide relief from AVR/AIS and IIS filing requirements while surplus remains. FSRA may consider relief from filing the PBGF Assessment Certificate and SIPP. |
| 3. Residual DB liabilities remaining – no surplus remaining | All DB filings continue to be required, but FSRA may consider granting relief from filing the AVR/AIS, PBGF Assessment Certificate and SIPP. |
| 4. Residual DB liabilities remaining – surplus remaining | All DB filings continue to be required. However, FSRA may consider granting relief from filing the PBGF Assessment Certificate where the remaining liabilities do not relate to Ontario beneficiaries. |
* Where there is surplus remaining and a contribution holiday is being taken, the administrator must comply with the requirements of section 7.0.3 of the General Regulation, including any applicable filing requirements relating to annual cost certificates and actuarial valuation reports.
Notice requirements and relief for Specified Ontario Multi-Employer Pension Plan to target benefit conversions
Plan administrators considering a conversion from a Specified Ontario Multi-Employer Pension Plan (SOMEPP) to a multi-employer pension plan providing target benefits may have opportunities to streamline member communications while continuing to meet legislative notice requirements.
After a SOMEPP target benefit conversion amendment is registered, notice is generally required within 60 days. Under section 26(4)(1) of the Pension Benefits Act (PBA), a pension plan can request that FSRA waive this requirement in certain circumstances, allowing the information to be included in the next annual pension statement. If granted, duplicative communications to members and administrative burden would be reduced. Administrators should also consider, based on the timing of conversion, whether SOMEPP cessation notice requirements apply.
FSRA encourages administrators to engage early in the conversion process to discuss notice and communication approaches. Questions regarding target benefit conversions may be directed to FSRA's Pensions team at [email protected].
Reporting surplus or prior year credit balance on Annual Information Return filings
FSRA observed recent issues with Annual Information Returns (AIRs) not being completed correctly when plans use surplus or prior year credit balance (PYCB) to fund normal costs.
Plans should ensure that lines 103, 104, 107, and 108 are filled out with the amount of surplus or PYCB used to reduce the required normal cost contributions in these cases.
Refer to the instructions for further updates
Download the latest FSRA Pension forms
Over the past few years, FSRA completed a project to update its Pension Forms available on the FSRA website. While the updates were undertaken primarily to reflect FSRA’s branding guidelines, they also incorporated improvements and clarifications requested by the pension sector. Please ensure that if you need to use a FSRA Pension Form, you download the most recent version available on our website.
Pension updates
Changes to the Actuarial Information Summary
FSRA, Canada Revenue Agency, and Retraite Quebec are making changes to the Actuarial Information Summary (AIS) form to allow plans to more easily complete the form when the plan has defined contribution members or there has been an annuity purchase. There are two changes to be incorporated into the AIS form:
- The first change allows one to add defined contribution membership statistics at a plan's valuation date in the filing.
- The second change adds buy-in and non-discharged buy-out membership statistics to the form and some clarifications of how members involved in an annuity purchase are to be reported.
These AIS form changes are expected to be reflected in the fall of 2027. Until these changes are implemented, plan actuaries should continue to use the current AIS form for Ontario registered plans. Pension plans filing with Retraite Québec must use the temporary AIS form (T1200-25), introduced in May 2026.
Modernizing the Pension Services Portal to better serve the sector
As part of FSRA’s efforts to modernize systems and processes, we are improving the Pension Services Portal (PSP) experience with enhanced and expanded functionalities to support users and allow FSRA to be more efficient and proactive in supervisory activities. It is also being updated to include new cybersecurity and privacy elements.
The modernized PSP is expected to go live in Fall 2027.
Updates following FSRA’s Pensions guidance review
FSRA routinely reviews its guidance to ensure that they remain current and relevant. As part of this process, four pieces of guidance were reviewed in 2025-26. The review confirmed that most guidance continues to reflect FSRA’s interpretation of legislative requirements under the Pensions Benefit Act, with technical changes made where needed to improve clarity and align with current processes. The table below summarizes the guidance reviewed and the resulting outcomes.
| Guidance | Review Outcome |
|---|---|
| PE0205APP Supervisory Approach to Defined Benefit Asset Transfers under the PBA | Minor changes. FSRA’s review has resulted in minor updates and edits throughout, including aligning references to current FSRA processes and removing outdated materials. |
| PE0298INT Automatic Features in Defined Contribution Pension Plans | No changes. Guidance has been updated to indicate next review in 2031. |
| PE0226INT Bank of Canada Revisions: Effect on Commuted Value Calculations and Filings | No changes. Guidance will not be reviewed going forward as this information will continue to be relevant for specific time periods noted in the Guidance. |
| PE0223INF FSRA’s Consent to SEPP-to-JSPP Transactions under sections 80.4 and 81.0.1 of the Pension Benefits Act | Deactivated. Guidance has been marked as “inactive” and remain accessible on FSRA’s website for reference. Initially released in January 2021, this Guidance was used to communicate a change in FSRA's approach to the issuance of NOIDs when consenting to SEPP to JSPP transfers. FSRA's approach to consenting to asset transfer applications is now outlined in the Supervisory Approach to Defined Benefit Asset Transfers under the PBA Guidance (above) and therefore this specific piece of Guidance is no longer necessary. |
Financial Services Tribunal decision reinforces role of summary administrative monetary penalties to promote compliance
A recent decision by the Financial Services Tribunal (FST) has affirmed the effectiveness and appropriateness of summary administrative monetary penalties (SAMPS) as a regulatory tool to promote compliance with the Pension Benefits Act (PBA) and Regulations.
In its ruling concerning a SAMP issued by FSRA for a plan’s failure to remit their required statutory filings within the prescribed time period, the FST upheld FSRA’s approach, recognizing that SAMPs are an efficient mechanism for addressing non-compliance – particularly in cases involving missed/late statutory filings and reporting obligations. In this specific instance, the SAMP resulted in compliance for the following year’s filings, showing the effectiveness of SAMPs in promoting compliance with the PBA.
The decision emphasizes that SAMPs serve as a critical compliance tool designed to encourage prompt adherence to legislated requirements that help to protect plan members and beneficiaries. To read the FST’s decision, please visit: Financial Services Tribunal.
Reminder to plan administrators: To support compliance and avoid the risk of regulatory action, plan administrators are encouraged to:
- Ensure FSRA has the most up-to-date contact information for the plan administrator and their delegates. Contact updates can be requested through the Pension Services Portal (PSP). For instructions, please visit: Instructions for using the Pension Services Portal.
- Maintain current and effective internal processes to manage regulatory filings and deadlines.
- Ensure that all required filings are complete, accurate and submitted on time. For more information on filing requirements and deadlines, please visit: Filing requirements and deadlines for pension plans and PSP applications.
- Where additional time is required, proactively submit a filing extension request on the PSP in advance of applicable deadlines and submit the filings by the approved extended due date.
- When given the opportunity to provide a written submission, submit the written submission by the required timeline with a fulsome explanation as to why there was non-compliance, and provide mitigating circumstance(s) to demonstrate why no penalty should be imposed.
Some examples of mitigating circumstances may be the result of significant disruption to computer systems due to virus attacks, fire or flood, and natural disaster or state of emergency. Please note staff changes or absences, lack of system backup or contingency plan and office closures are not considered mitigating circumstances.