REGULATORY UPDATE
FSRA Pension Update
The Financial Services Authority of Ontario released its latest Pension Update on April 17, 2025. It sets out the following:
- As of December 31, 2024, the median solvency ratio was 122% (up from 121% at the end of the previous quarter) due to a slight decrease in pension liabilities and marginally positive fund investment returns.
- Interested parties were asked to apply for openings on the Stakeholder Advisory Committee for Pensions, with new two- or three-year terms starting this summer.
- Most applications, such as amendments, filing extensions and Pension Benefits Guarantee Fund (PBGF) assessments, must be submitted through the Pension Services Portal.
- Electronic PBGF assessment payments should be made one to two business days before the due date to avoid late charges, which are subject to a 20% penalty and interest.
- Plans considering a contribution holiday must, within 90 days of the plan’s fiscal year, file a cost certificate showing that the plan has sufficient available actuarial surplus (AAS). AAS must be reassessed as of the first day of the current fiscal year, but cannot be greater than that disclosed in the last filed valuation, adjusted to reflect any amounts funded from AAS since the date of the last valuation. There must be a cost certificate, even if the plan has “excess surplus” under the federal Income Tax Act.