Pension Fund Services Price Index (PFSPI)

Detailed information for third quarter 2016

The Pension Fund Services Price Index (PFSPI) measures quarterly price changes over time for pension fund services in Canada.

Data release - This is a pilot survey. No data, files or results will be released.

• Questionnaire(s) and reporting guide(s)
• Description
• Data sources and methodology
• Data accuracy

Description

The PFSPI measures quarterly price changes over time for pension fund services in Canada; the estimates are produced on a quarterly basis. Prices are derived for each of the three components of administration costs for trusteed pension plans. The variables used to derive the prices are administrative operations costs, investment management costs, investment management costs related to the fund's performance, the market value of assets according to which investment management costs related to the fund's performance are calculated, and total assets under management.

Statistical activity

These indexes are a part of the Services Producer Price Index program (SPPI) at Statistics Canada.

The SPPI program develops and produces price indexes for a wide range of business service categories. This initiative fills an important data gap in the area of economic statistics and has resulted in a more comprehensive set of service price indexes. It also allows Statistics Canada to produce more accurate estimates of real value added of the Gross Domestic Product and changes in productivity.

Reference period: The time period for which the PFSPI equals 100; currently this is the year 2013.

Collection period: Quarterly data are collected between 3 and 13 weeks after the end of each quarter.

Subjects

• Prices and price indexes
• Service price indexes

Data sources and methodology

Target population

The target population for the PFSPI are the pension funds of Registered Pension Plans (RPP's) operated according to the terms of a trust agreement. The survey includes all pension funds operating under a trust agreement for at least a portion of the plan assets, and pension funds administered by federal and provincial pension investment boards. The population includes private and public sector pension funds with defined benefit, defined contribution or hybrid plan types. The survey targets the largest funds accounting for 85% of the book value of assets of the trusteed universe. The remaining funds which represent 15% of the value of the universe are estimated.

Instrument design

The financial variables included in the Pilot Supplementary for the Quarterly Survey of Trusteed Pension Funds reflect the information used by a pension fund to estimate administration costs for the Quarterly Survey of Trusteed Pension Funds. The design of the supplementary questionnaire is in keeping with the look and feel of the Quarterly Survey of Trusteed Pension Funds.

Sampling

This is a sample survey with a cross-sectional design and a longitudinal follow-up.

The Quarterly sample is created by ranking pension funds surveyed by the Biennial Census of Trusteed Pension Funds (record number: 2608) by their book-value of assets. The largest funds accounting for 85% of total book-value of assets are the funds included in the Quarterly sample. The sample is updated every two years following completion of the Biennial Census of Trusteed Pension Funds survey.

Data sources

Responding to this survey is mandatory.

Data are collected directly from survey respondents and derived from other Statistics Canada surveys.

The PFSPI is estimated using data from the Pilot Supplementary for the Quarterly Survey of Trusteed Pension Funds as well as the Quarterly Survey of Trusteed pension Funds.

Prices are derived for each of the three components of administration costs for trusteed pension plans. The variables used to derive the prices are administrative operations costs, investment management costs, investment management costs related to the fund's performance, the market value of assets according to which investment management costs related to the fund's performance are calculated, and total assets under management.

Data are collected on a quarterly basis.

View the Questionnaire(s) and reporting guide(s) .

Error detection

Error detection is conducted during post collection editing, through a system of data validity specifications. Failing records are reviewed for editing and correction when necessary.

Imputation

Imputation for non-response or missing price data is calculated using the averages of designated cells.

Estimation

Prices
Final methodology has yet to be determined.

Weights
Final methodology has yet to be determined.

Indexes
Final methodology has yet to be determined.

Quality evaluation

The quality of this index is maintained through analysis and a thorough knowledge of the domain, and is supplemented by outside personal contacts with the data providers. This includes detecting and following up unusual fluctuations over time in the pricing patterns of services. Prior to dissemination, the price indexes are analyzed and historic trends reviewed.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Individual price and weight data collected under the Statistics Act are confidential. Price data are converted to price indexes and data are released so that it is not possible to identify the suppliers of the raw price information.

Revisions and seasonal adjustment

Data for the most recent quarter are preliminary. The previous quarter of the series is subject to revision. The series is also subject to an annual revision released with second quarter data of the following reference year. The index is not seasonally adjusted.

Data accuracy

The statistical accuracy of this index depends on price and weight data. Through continuous monitoring of the data received and discussion with respondents, an acceptable level of data quality and integrity is maintained for the purposes of producing the price index series.