Pension Plans in Canada

Type of pension benefit of registered pension plan, category

Type of pension benefit refers to the method used to calculate benefits. There are two basic types of pension plan: defined contribution and defined benefit. Under the defined contribution method, the employer and, in the case of contributory plans, the employees are committed to a specified contribution rate. Pension benefits vary depending on the contributions accumulated for each individual and the return on investment. Under the defined benefit method, benefits are determined by a formula that is stipulated in the plan text. The employer contributions are not predetermined but are calculated on the basis of actuarial valuations that is, they are a function of the cost of providing the promised benefit, taking into consideration employee contributions, if any. Defined benefit plans can be subdivided into unit benefit and flat benefit plans.

Registered pension plans refers to employer-sponsored plans registered with Canada Customs and Revenue Agency and most commonly also with one of the pension regulatory authorities. The purpose of such plans is to provide employees with a regular income at retirement.

The data for this variable are reported using the following classifications and/or lists:

Report a problem on this page

Is something not working? Is there information outdated? Can't find what you're looking for?

Please contact us and let us know how we can help you.

Privacy notice

Date modified: