Defined Contribution PlansA defined contribution plan is the type of registered pension plan that specifies the contributions made by the employee, if the plan is contributory, as well as by the employer. Pension benefits paid are a function of accumulated contributions and investment returns. The vast majority (82.5%) of members of these plans are working in the private sector. As of January 1, 2006, defined contribution plans had 893,400 members, which accounts for 15.75% of the total registered pension plan membership. This is up from 14.6% in 2001. These numbers are sourced from Statistics Canada Survey number 2609. |
