Advanced Search
MyIDEAS: Login

Gauging the Path of Private Canadian Pensions: 2010 Update on the State of Defined Benefit and Defined Contribution Pension Plans

Contents:

Author Info

  • Kamalesh Gosalia

    ()
    (Certified General Accountants Association of Canada)

  • Elena Simonova

    ()
    (Certified General Accountants Association of Canada)

  • Rock Lefebvre

    ()
    (Certified General Accountants Association of Canada)

Registered author(s):

    Abstract

    The issue of under-funded defined benefit (DB) pension plans has become one of the most perplexing financial issues facing business executives, legislators and Canadian pensioners who are or will in the future be reliant on pension income as an important component of their overall retirement incomes. In 2004, CGA-Canada issued a comprehensive paper on defined benefit pension plans titled “Addressing the Pensions Dilemma in Canada”. The goal of that release was to advance understanding of DB pension plans and to impart a reasonable estimate of the standing of DB pension plans at December 31, 2003. In 2009, this analysis was further advanced by examining the funding status of private DB pension plans at December 31, 2008. The results of the analysis show that funding deficits have intensified with funding ratios eroding to unsustainable levels. The vast majority (92%) of private DB pension plans were in a deficit position as at December 31, 2008. The average funding ratio has decreased from 112% to 77% on a ‘without indexation’ basis and from 71% to 57% on a ‘with indexation’ basis. The aggregate funding shortfall is expected to exceed $350 billion.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://ideas.cga-canada.org/WorkingPapers/100402.pdf
    File Function: First version, 2010
    Download Restriction: no

    Bibliographic Info

    Paper provided by Certified General Accountants Association of Canada in its series Working Papers with number 100402.

    as in new window
    Length: 66 pages
    Date of creation: Apr 2010
    Date of revision:
    Handle: RePEc:cga:wpaper:100402

    Contact details of provider:
    Postal: Suite 100, 4200 North Fraser Way, Burnaby, British Columbia V5J 5K7, Canada
    Phone: 1-800-663-1529
    Fax: 1-604-689-5845
    Web page: http://www.cga-canada.org
    More information through EDIRC

    Related research

    Keywords: defined benefit pension plan; defined contribution pension plan; funding postion of pension plans; household savings; retirement savings; retirement income; household finance; pension accounting;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:cga:wpaper:100402. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elena Simonova).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.