Pension update – March 3, 2026 | Financial Services Regulatory Authority of Ontario

Welcome message

I am pleased to introduce our first Pensions newsletter of 2026 and reflect on several important milestones achieved over the last quarter.

Pension Awareness Day 2026 was a great success and continues to build momentum across Ontario – and Canada. The success of this initiative is a true testament to the dedication, collaboration and engagement of teams and partners who remain committed to educate and support better outcomes for pension plan members.

Our first in-person Pensions Forum was held on February 9. The discussions around Board governance, pension administration and principles-based regulation were thoughtful and constructive, and the forum provided a valuable opportunity to exchange dialogue with the sector. Thank you to everyone who contributed to making this initiative impactful.

We released our final Supervisory Approach Guidance to Implementation of the Target Benefit MEPP Framework. This is an important step in supporting clarity and consistency as this framework continues to evolve. We also launched our updated Plan Wind Ups and Surplus Applications webpage, making it easier for stakeholders to access clear information.

Finally, I would like to reiterate the importance of our ongoing data clean-up efforts. Accurate and up-to-date data remains critical to effective plan administration and sound decision-making, and your continued attention in this area is appreciated.

Thank you for your continued engagement and commitment.

-- Andrew Fung, Executive Vice President, Pensions

FSRA reports

Q4 2025 Solvency Report indicates Defined Benefit Pension Plans remain strong

FSRA released its Q4 2025 Solvency Report for Defined Benefit Pension Plans, revealing that the median solvency ratio is 124 per cent as at December 31, 2025 – unchanged from the previous quarter.

To learn more, access the report.

Pension reminders

Don’t forget pension plan amendments related to wind ups and asset transfers must be filed

This is a reminder that any pension plan amendment that seeks to cease contributions is considered an adverse amendment and must be filed before its effective date. This requirement also applies to amendments that:

wind up a pension plan, or
cease contributions in an original pension plan during an asset transfer

This position aligns with FSRA’s interpretation of the limitations on retroactive amendments under subsection 13(2) of the Ontario Pension Benefits Act (PBA), as outlined in the Guidance on Pension Plan Amendments published in June 2024.

As noted in the Guidance:

subsection 13(2) does not provide an unlimited ability to retroactively amend a plan
Late filing of an amendment that negatively impacts plan members and beneficiaries – such as stopping employer and/or employee contributions on plan termination or asset transfer – contravenes subsection 19(3) of the PBA. This is because the plan would not have been administered in accordance with the filed documents before the filing of the amendment.

Please ensure that any such amendments are filed in advance to remain compliant with the PBA and FSRA’s expectations.

Contribution holiday: Key points to consider

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

For plans considering a contribution holiday, the following regulatory requirements apply:

a prescribed cost certificate must be filed within the first 90 days of the plan’s fiscal year to support the contribution holiday
- FSRA does not have authority under the Pension Benefits Act to extend the deadline for filing a cost certificate under section 7.0.3 of Regulation 909
the cost certificate must be prepared in accordance with section 7.1 of Regulation 909 and must demonstrate that the plan has sufficient available actuarial surplus (AAS), as prescribed, to meet the funding requirements for the current fiscal year
the AAS must be reassessed as of the first day of the current fiscal year
- the reassessed AAS cannot exceed the AAS disclosed in the most recently filed actuarial valuation report, adjusted for any amounts already funded from AAS since the date of that valuation

Important

A plan with an “excess surplus”, as described in paragraph 147.2(2)(d) of the Income Tax Act (Canada), is not exempt from the requirement to file a cost certificate within the prescribed timeline.
A contribution holiday cannot be taken solely on the basis of an excess surplus unless all other requirements under Regulation 909 have been met.

Incremental cost reporting in Actuarial Information Summary (AIS)

FSRA would like to thank pension plan administrators and industry stakeholders for their prompt engagement and cooperation in response to FSRA’s reminder regarding the reporting of Incremental Costs (IC) in the Actuarial Information Summary (AIS).

Following the reminder, FSRA completed a targeted review of incremental cost reporting practices. The industry sector responded quickly and constructively, helping to clarify and correct the reporting of incremental costs (Line 101) as an annual average, in accordance with AIS instructions.

A reminder, incremental costs should be reported as an annual average over the reporting period, not as a cumulative amount or an annual incremental cost following the valuation date.

Example:
If the total incremental cost over a three-year reporting period is $300,000, the amount reported in the AIS should be $100,000 (annual average).

FSRA appreciates the sector’s responsiveness and collaboration, which have contributed to greater consistency and accuracy in AIS reporting. This collective effort supports reliable regulatory information and effective supervision of the pension sector.

Thank you for your continued professionalism and commitment to high-quality regulatory reporting.

If you have questions or require additional clarification, please contact [email protected].

Pension updates

A big thank you for being a part of Pension Awareness Day 2026

On February 19, FSRA joined pension plan sponsors, administrators, and other pension sector stakeholders to celebrate Pension Awareness Day 2026.

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.

To kick off FSRA’s campaign, we held our first Pensions Forum, which was a highly successful event. FSRA pension leadership and notable sector leaders came together to collaborate and engage on delivering better outcomes for pension plan members. The strong participation and open dialogue reflected a shared commitment across the sector and highlighted the value of continued collaboration and engagement.

We look forward to continuing this collaboration and active participation across the sector, and to welcoming everyone back next year.

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

Data clean-up initiative: Building a stronger Pension Services Portal together

FSRA is launching a data clean-up initiative to strengthen the Pension Services Portal (PSP) and improve the accuracy and completeness of information submitted. This effort will help ensure timely, relevant reporting and better service to the sector.

As part of the process, we ask pension plan administrators to review, and update (if necessary) the following key information, found on your PSP Pension Plan Profile and Plan Contacts, as shown in the chart below.

Key information	Location in PSP
Plan Sponsor/Administrator Name*	Plan Contacts and Plan Profile
Pension Plan Name*	Plan Profile
Plan Administrator Contact	Plan Contacts
Plan Administrator E-mail Address	Plan Contacts
Plan Administrator phone number	Plan Contacts
Any other Users (e.g., actuaries, lawyers etc.) and respective contact details	Plan Contacts

*Changes to the plan sponsor, administrator and pension plan name fields must be filed as pension plan amendments.

Your support in confirming these details is essential, particularly where information may be outdated or incomplete. We ask that you proceed with this review in advance of the next AIR filing cycle, June 2026 for DC plans and September 2026 for DB plans. FSRA will track any changes made to these fields in PSP and provide you with a summary at the end of the review period. Going forward, FSRA encourages pension plan administrators to review this information from time to time in conjunction with the filings, to ensure it is current.

Additionally, a recent review by FSRA of 100+ Investment Information Summary (IIS) filings for defined benefit plans found that most reviewed filings had significant discrepancies between the IIS and the data listed on their respective pension financial statement. Plan administrators are encouraged to pay close attention to the completion of the IIS when summarizing investment data from financial statements.

Thank you in advance for your collaboration in these endeavours, and please contact [email protected] for clarification or additional guidance as needed.

Now final: Supervisory Approach Guidance to Implementation of the Target Benefit MEPP Framework

Following public consultation, FSRA’s Supervisory Approach Guidance to Implementation of the Target Benefit MEPP Framework is now final and became effective on February 2, 2026. This guidance outlines how FSRA will oversee and apply Ontario’s framework while supporting plan administrators to meet their obligations.

The final guidance explains 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 aligned with its funding and benefits policy
supervising plans that provide target benefits through regular reviews, risk assessments, and ongoing engagement with plan administrators

To learn more, access the final Guidance.

Important update: Family Law documents now include target benefit pension plans

The following five forms have been updated to include references to target benefit pension plans and are now available on FSRA’s website:

Application for Family Law Value (Family Law Form FL–1)
Statement of Family Law Value – Active Plan Member with a Defined Benefit or a Target Benefit (Family Law Form FL–4B)
Statement of Family Law Value – Active Member of a Plan with Defined Benefit or Target Benefit and Defined Contribution Provisions (Family Law Form FL–4C)
Statement of Family Law Value – Former Plan Member (Family Law Form FL–4D)
Statement of Family Law Value – Retired Member with a Defined Benefit or a Target Benefit Pension (Family Law Form FL–4E)

FSRA has also updated its Pensions and marriage breakdown – a guide for members and their spouses to include references to target benefit pension plans.

Improving the user experience on the FSRA pensions webpages

Following feedback from the sector, we have updated the Plan Wind-Ups and Surplus Application website to make it more user-friendly and easier to navigate. The enhancements are intended to improve clarity, streamline the application process, and support a more efficient user experience.

Access the updated Plan wind ups and surplus applications.

Pension update – March 3, 2026

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