Here are a few interesting facts that I read in an article from Statistics Canada today regarding pension plans in Canada.
Total Membership in Registered Pension Plans (RRPs): 5,900,000
Public Sector vs. Private Sector
Private Sector Plans: 3,000,000
Public Sector Plans: 2,900,000
Gender
Male Percentage of RRPs: 51.5%
Female Percentage of RRPs: 48.5%
RRP Participation
Total RRP Participation: 38.3%
Public Sector RRP Participation: 83.9%
Private Sector RRP Participation: 25%
RRP Type
Percentage of RRPs that are defined benefit: 77%
Percentage of RRPs that are defined contribution: 16%
Percentage of RRPs that are a combination: 7%
Final Thoughts
I would have guessed that public sector participation in RRPs would be as high as 80%+ given that most government sponsored pensions are defined benefit, indexed to inflation and have high employer contributions. I was a little surprised by the fact that participation in the private sector is around 25%. Consider yourself lucky if you work for a corporation with any pension plan at all. Consider yourself even luckier if your corporation sponsors a defined benefit pension plan. The article doesn’t break out the stats, but I would be willing to be that the % of private sector defined benefit pension plans is significantly less then the 77% average for all RRPs.
