Employer-sponsored pension funds down 8.7% | National Union of Public and General Employees

Employer-sponsored pension funds down 8.7%

Funds valued at $869 billion compared to $951.7 billion the previous quarter.

Ottawa (17 March 2009) - Employer-sponsored Canadian pension funds plunged by more than $82 billion in the third quarter of 2008, a drop of 8.7%. It was the biggest decline in more than a decade, Statistics Canada reports.

At year end, Canadian funds were valued at $869 billion, down from $951.7 billion the previous quarter, and from a peak of $954.6 billion in 2007. The Toronto stock exchange composite index lost 9.3% of its value during the quarter. Stocks and equities accounted for 34.2% of pension assets during the quarter.

StatsCan says 21% of private sector workers are covered by defined benefit plans in which the risk of shortfall is borne by the employer rather than the worker. The level was 29% a decade earlier.

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The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
 

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