Pension update – November 18, 2025
Welcome message
As we approach the end of 2025, FSRA is pleased to share the 2025 Fall Pensions newsletter, highlighting key updates and ongoing initiatives across the sector. The past few months have been an active period of engagement, as we continue to meet with stakeholders through speaking engagements and advisory committee discussions. I’d like to thank you for your continued partnership and engagement with FSRA. These interactions are valuable opportunities to connect directly with stakeholders, share insights, and hear perspectives on evolving pension topics.
We also acknowledge the release of the International Monetary Fund’s recent Financial Sector Stability Assessment of Canada report on Canada’s financial sector, which underscored the importance of strong governance and transparency in pension supervision. We are proud that Ontario’s collaborative, risk-based approach aligns with globally recognized practices.
Our Standing Technical Advisory Committees concluded this calendar year, with thoughtful discussions, including FSRA’s proposed target benefit guidance, data quality initiatives, surplus website update, and preparations for the 2026 Pension Awareness Day. Your collaboration and input continue to shape our regulatory approach and priorities. Looking ahead, FSRA is continuing engagement with plan administrators and sector partners to improve data integrity.
As we plan for our next fiscal year, 2026/2027, we remain focused on our shared goal: protecting pension benefits and strengthening member outcomes. Thank you for your continued partnership and contribution to advancing Ontario’s pension sector.
-- Andrew Fung, Executive Vice President, Pensions
Celebrating a distinguished career: Lester Wong
FSRA announces the retirement of Lester Wong, Chief Actuary, Pensions, at the end of this year after many years of dedicated public service and contribution to Ontario’s pension sector. Lester’s leadership, professionalism, integrity, and collaborative approach have left a lasting and positive impact on both FSRA and the sector.
Please join us in congratulating Lester and wishing him all the best in this next chapter. Congratulations, Lester, on an extraordinary career and a well-deserved retirement!
FSRA reports
Q3 2025 Solvency Report for Defined Benefit Pension Plans
FSRA released its Q3 2025 Solvency Report for Defined Benefit Pension Plans, revealing that the median solvency ratio now stands at 124 per cent as at September 30, 2025, up from 122 per cent as at June 30, 2025. The median solvency ratio reached a new high, primarily driven by robust equity returns of 4.6 per cent during Q3 2025.
To learn more, access the report.
Pension reminders
Reminders and clarifications regarding Buy-Out Annuity Discharge
Requirements: PBA and Ontario Regulation 193/18
As a reminder of key regulatory requirements and clarifications under the Ontario Pension Benefits Act (PBA) and Ontario Regulation 193/18 concerning annuity discharge submissions.
Following a recent review of submissions, we have identified several areas requiring additional attention:
1. Definition of “date of the purchase”
The date of the purchase must be clearly defined in the submission. It refers to the date the annuity quote was accepted by the plan administrator—not the date the premium was paid or the contract was signed[1].
2. Solvency ratio calculation
As per Section 4 of Regulation 193/18, the solvency ratio must be calculated one day after the purchase date—not on the purchase date itself[1].
3. Prescribed member notices
Notices to members must include all content prescribed under Section 2 of Regulation 193/18, including the date of the purchase as required in paragraph 3[1].
4. Incomplete annuity contracts
Some submitted contracts lack required provisions. For example, contracts must:
- specify that pensions for members with spouses are in the form of joint and survivor pensions, unless a waiver under Section 46 of the PBA is completed
- include family law division limits, ensuring no more than 50% of payments are allocated to a spouse, as determined at the family law valuation date[1]
Annuity contracts must contain the requirements set out in s. 3 of Regulation 193/18.
5. Discharges in non-Ontario jurisdictions
If discharges are sought for members under other jurisdictions where that jurisdiction’s pension legislation provides for a statutory discharge, the submission must certify that the discharge requirements of that jurisdiction have been met.
For Ontario members in plans registered outside Ontario, the administrator must certify to the other provincial regulator that the annuity purchase complies with Section 43.1 of the PBA and Regulation 193/18. If that provincial regulator’s pension legislation provides for a statutory discharge, the funding requirements of that provincial regulator apply with respect to annuity discharges. If that provincial regulator’s pension legislation does not provide for a statutory discharge, then the Ontario funding requirements under Regulation 193/18 apply.
Additional Reminders
- As noted in FSRA’s Q3 2023 eblast, if the annuity contract does not contain the applicable benefit provisions of the plan, the Request for Proposal (RFP) must be filed with the discharge submission.
- If a full wind-up has been approved and all benefits settled, a discharge is automatically granted. In such cases, no annuity discharge submission should be made post-wind-up[2].
If you have any questions, please contact us at [email protected]
References:
[1] O. Reg. 193/18: PURCHASE OF PENSION BENEFITS FROM AN INSURANCE COMPANY ...
[2] Frequently Asked Questions pertaining to Annuity Purchase and Discharge
Reminder about Incremental Cost (IC) Reporting in Actuarial Information Summary (AIS)
FSRA observed that some pension plan administrators are incorrectly reporting Incremental Costs (Line 101) in AIS. To clarify, the incremental cost should be reported as an annual average.
For example:
If the total incremental cost over a 3-year reporting period is $300,000, then $100,000 should be reported in AIS.
As a result, FSRA is conducting a targeted review of how these costs are being reported to ensure consistency and accuracy across the industry.
Pension updates
Sector engagement update
The Pension Standing Technical Advisory Committees (TAC) meet several times a year, with the most recent round of meetings held between September and October. The four committees focus on specific parts of the pension sector, namely: defined benefit single employer pension plans, defined contribution pension plans, multi-employer pension plans, and public sector pension plans.
Discussions at the recent round of meetings focused on the findings of the International Monetary Fund’s (IMF) Financial Sector Stability Assessment of Canada report, with its focus on FSRA as overseeing the largest pension sector in Canada with systemic importance to the Canadian financial system. FSRA is proud to have assisted the IMF prior to the release of this report. FSRA also reminded stakeholders to provide comments on the consultation on FSRA’s proposed target benefit supervisory guidance, and each TAC had focused discussions on the upcoming data clean-up initiative (more details below), proposed changes to the surplus application information website, as well as planning for the next Pension Awareness Day.
Upcoming engagement
Building on the success of FSRA’s Actuarial Services team engagement with actuarial firms this summer, FSRA will be engaging with pension lawyers to outline key trends in transactions, persistent issues in transaction applications and discuss feedback on areas of concern and opportunities to continue our principles-based approach to supervision.
FSRA’s Pensions leadership looks forward to meeting with the Pension Stakeholder Advisory Committee at the upcoming session – November 19, 2025. This meeting will provide an opportunity to exchange ideas, hear fresh perspectives, and continue building on the collaborative dialogue that supports effective pension regulation and sector engagement.
Become a member of a Pensions Advisory Committee!
Pension Technical Advisory Committee members bring forward timely concerns they see within their organization and more broadly in the sector and to ask questions of FSRA in a targeted way. As a principles-based regulator, FSRA is interested in hearing from its pension sector stakeholders. If you are a leader at your organization, an expert in that focus of the sector, in a position to represent the interests of the sector and speak on behalf of your organization, and interested in applying to be on one of FSRA’s Pension Standing Technical Advisory Committees, please email Rhea Tubigan indicating your interest and providing a copy of your resume.
Target Benefits consultation
On October 14, 2025, FSRA’s consultation on its proposed Target Benefits Supervisory Guidance closed and we are currently reviewing the feedback received. The Guidance is intended to support eligible multi-employer pension plan administrators in converting into the new regime that came into effect January 1, 2025.
FSRA thanks all participants for their valuable feedback and will be providing a consultation summary and next steps once all submissions have been reviewed.
2026 Pension Awareness Day: Planning underway
Planning is underway for Pension Awareness Day 2026, FSRA’s annual education and awareness campaign to spotlight the value of workplace pensions and retirement readiness across Ontario.
To kick off the initiative, FSRA hosted a sector stakeholder meeting on October 29, 2025, bringing together plan administrators, sponsors, and sector partners to help shape the campaign and its associated events.
A follow-up meeting is planned for January 2026. To be added to the invitation list, please email Andy Tran at [email protected].
As a new feature of the 2026 campaign, save the date for FSRA’s in-person Pensions Forum on February 9, 2026 to foster dialogue, share insights, and deepen engagement across the pension community. Stay tuned as we build momentum toward a more informed and connected pension sector, benefiting both sector stakeholders and plan members.
Data clean-up initiative: Building a stronger Pension Services Portal together
FSRA is launching a data clean-up initiative to enhance the accuracy, completeness, and efficiency of data and information submitted through the Pension Services Portal (PSP). This initiative is key to ensuring we can better serve the sector, by improving data accuracy and enabling more relevant, timely, and insightful reporting on Ontario’s pension landscape. While FSRA manages the PSP, maintaining accurate data is a shared responsibility. Your updates play an important role in ensuring we can connect with the right people at the right time.
The project will begin with an internal review, followed by outreach to plan administrators through the PSP to confirm and update specific data points. Your support will be essential in verifying key data points such as plan name, sponsor, and administrator details, particularly where information may be outdated or incomplete. As part of this process, FSRA will also review historical data, with some records potentially archived.
We are still finalizing the scope of this initiative and will share more information in future Pensions eblasts.
This initiative will roll out over the coming quarters, ahead of the June 2026 filing cycle. By acting now, we can streamline future processes and improve filing reliability.
FSRA will also track response rates and provide a mechanism for administrators to confirm whether updates were needed. This feedback will help us measure success and refine future outreach.
Together, we can ensure PSP remains a trusted, efficient platform for all stakeholders.