Tammy Burns
Canadian pension plans may have more members, but their numbers make up a smaller percentage of the overall labour force. And while the number of DB plans in the private sector has significantly decreased in favour of DC and hybrid plans over the last decade, the number of DB plans in the public sector has remained steady. This is according to a new fact sheet on registered pension plans (RPPs) and retirement savings coverage, released by the Office of the Chief Actuary.
According to the fact sheet:
- The total number of plan members covered by an RPP has increased 14% over the last 10 years, from 5.3 million in 1999 to 6 million in 2009. However, the number of RPP members as a percentage of the labour force declined slightly from 34% in 1999 to 33% in 2009.
- RPP coverage in the public sector decreased from 88% to 86% of public sector employees from 1999 to 2009, while the number of members increased from 2.4 million to 3 million.
- RPP coverage in the private sector decreased from 28% to 25% of private sector employees from 1999 to 2009, while the number of members covered increased from 2.8 million to 3 million.
- There has been a growing shift from DB plans to DC and other hybrid plans. The proportion of paid workers in DB plans has declined from 85% in 1999 to 75% in 2009. The proportion of workers in hybrid plans that have both DB and DC components has increased from 2% to 16% in the private sector, but remained stable at 1% in the public sector.
- Significant reductions in DB coverage have occurred in the private sector (from 76% to 56%), while DB coverage in the public sector has remained unchanged (stable at 94%).
- The number of RRSP contributors remained near 6 million between 1997 and 2008, while the share of employed tax filers contributing to an RRSP decreased from 41% in 1997 to 34% in 2008.
A copy of the fact sheet is available here.