Canadian Pension Funds

Canadian Pension Funds - Articles & White Papers

The Canadian Pension Funds section of the site holds reports, articles and white papers of interest to those working in the Canadian pensions industry or providing asset management and other services to Canadian pension funds. This includes content written by asset managers, academics and professional bodies, including topics such as pension allocation, plan design, enrolment facilities, member communication, retirement strategies, and much more besides.

The five main pension funds, in order of size, are Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ), Ontario Teachers' Pension Plan (OTPP), British Columbia Investment Management Corp (BCI) and the Public Sector Pension Investment Board (PSP), which together manage more than C$1.4 trillion ($1.2 trillion) in assets...


Canada operates a two-tier system: Tier I is the flat-rate Old Age Security (OAS) programme, financed from Government tax revenues. Tier II is the Canada Pension Plan (CPP), a monthly, taxable benefit which replaces part of an individual’s income on retirement. This is a federal/provincial pension plan. It is a contributory social insurance program operating in all parts of Canada, except Quebec, which operates the Regime de rentes du Quebec, or the Quebec Pension Plan (QPP), a similar plan. Canada also enables voluntary pension savings, called registered pension plans (RPPs).

Further plans, depending on suitability criteria, accessible in Canada are: Allowance pension, Guaranteed Income Supplement and the Canada Pension Plan disability benefit.

Defined benefit (DB) plans remain the most common type of scheme in Canada. An average DB plan would be based on final average earnings with an accrual rate of 2% per year in the public sector and less than this in the private sector.

As elsewhere, defined contribution (DC) schemes are becoming more popular in the private sector and schemes are usually integrated with the CPP or QPP and require employee contributions. Average DC contributions amount to approximately 5% of earnings.

Governed by the Pensions Benefit Act

Canadian Pension Funds pertain to:

  • OAS


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