ONTARIO 🍁💵 Pension Plans Resilient in the Face of Global Economic Volatility

ONTARIO ๐Ÿ๐Ÿ’ต Pension Plans Resilient in the Face of Global Economic Volatility

Sunday, 15 June 2025 08:21.AM
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Ontario's financial services regulator (FSRA) has released its Q1 2025 Solvency Report for Defined Benefit Pension Plans, covering the period January 1, 2025 to March 31, 2025, revealing a median solvency ratio of 119 per cent โ€“ down three percentage points from the previous quarter.

Due to the announcement of US tariffs, the report also provided an estimate for the first week of April 2025, projecting that the median solvency ratio likely declined further, by approximately five percentage points from the end of Q1, driven by adverse market conditions.

Despite this decrease, the vast majority of pension plans continued to demonstrate resilience, with funding levels remaining healthy amidst these economic and market challenges.

"While we've seen a decline in the solvency ratio over the past few months, pension plans remain resilient," said Andrew Fung, FSRA Executive Vice-President, Pensions. "However, with this global trade war and ongoing economic uncertainty, it's critical for plan administrators to proactively manage risk and regularly reassess their investment strategies to ensure long-term sustainability."

FSRA recommends that pension plans use stress testing, modeling, and other analytical tools to evaluate potential vulnerabilities and strengthen financial resilience.

FSRA releases its solvency report each quarter to assess the financial health of Ontario defined benefit pension plans. The report provides timely information to plan members about the performance of their plan and the state of the economy both nationally and internationally.

Learn more:
Q1 2025 Estimated Solvency Funded Status of Defined Benefit Pension Plans in Ontario

FSRA continues to work on behalf of all stakeholders, including consumers and pension plan members, to ensure financial safety, fairness, and choice for everyone.

SOURCE: Financial Services Regulatory Authority of Ontario

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