FSRA report reveals Ontario's pension plans thrive, with solvency at a record high and 90% fully funded
Ontario's retirement savings continue to show resilience and protection amid global economic uncertainties, with the majority of defined benefit pension plans in the province maintaining strong financial standings.
This stability is highlighted in the Financial Services Regulatory Authority of Ontario's (FSRA) Q4 2023 Solvency Report, posted on Newswire Canada. It reveals the median solvency ratio of these plans has reached a record high, alongside an average net investment return of 9.9 percent.
The report also shows a promising outlook for the future, with projections indicating that nearly 90 percent of pension plans are expected to be fully funded.
Andrew Fung, FSRA's acting executive vice-president, Pensions, commented on the findings, stating, “It is encouraging to see the ongoing strength of defined benefit pension plans in the face of this global economic uncertainty and volatility.”
He further emphasized the positive implications of the report's results for pension members but advised plan sponsors and administrators to remain cautious and proactive in their strategic planning to mitigate potential risks.
Despite the current successes, FSRA warns of the ever-present challenges posed by the fluctuating global economy.
The authority continues to recommend that plan sponsors and administrators maintain a vigilant approach, focusing on identifying potential risks and implementing robust strategic planning measures.
FSRA's quarterly solvency report plays a critical role in monitoring the financial health of Ontario's defined benefit pension plans. It provides vital information to plan members regarding their plan's performance and offers insights into the broader economic context, both within Canada and on a global scale.
This ongoing assessment ensures that members are well-informed about the stability and security of their retirement savings in Ontario.
