The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members during this time of rapid change and disruption.
As a principles-based and outcomes-focused regulator, the quarterly estimated solvency report is a supervisory tool FSRA uses to improve outcomes for pension plan beneficiaries and to proactively engage in a dialogue with plan sponsors where there may be a concern over the security of the pension benefits.
The report also helps FSRA promote good administration of pension plans. Plan fiduciaries must adhere to a high standard of care in administering their pension plans and investing the plan assets. Having an effective governance framework in place with a good understanding of the impact of the plan’s investment and funding strategies and the key risks facing the plan are key to ensuring good outcomes and being well-positioned to weather stress events.
The estimated median projected solvency ratio of Ontario defined benefit plans declined to 85% at March 31, 2020 from 99% at the end of 2019.
The projections shown in this report do not capture the impact of changing market conditions after March 31, 2020. Changes in market conditions that occurred beyond March 31, 2020 may improve or worsen the solvency position of pension plans. The next update as of June 30, 2020 will reflect experience to that date.