Canada. Market Value of Retirement Savings Declines

The market value of retirement savings held in employer-sponsored pension funds declined $19.8 billion, or 2.4%, during the first quarter of 2009.

This drop in value follows decreases of 8.7% in the third quarter and 6.7% in the fourth quarter of 2008.

Employer sponsored pension funds amounted to $791.1 billion at the end of the first quarter of 2009, down $163.5 billion from a high of $954.6 billion at the end of 2007.

The market value of stocks and equity funds accounted for 31.1% of total pension fund assets at the end of the first quarter of 2009, down from a high of 40.1% in the first quarter of 2006.

The proportion of fund assets held in bonds increased to 38.4%. Real estate investments accounted for 8.7% of total assets, mortgages, 1.8% and short-term investments, 4.0%. The remaining assets, which include pooled foreign funds, accounted for 16.0%.

Expenditures of $31.4 billion exceeded revenues of $17.6 billion in the first quarter for a negative cash flow of $13.8 billion. This was the third consecutive quarter that pension funds experienced a negative cash flow.

The negative cash flow resulted from continuing losses on the sale of securities, and reduced investment income and pension contributions, which both typically peak in the fourth quarter of each year.

Revenue from employer and employee contributions in the first quarter of 2009 amounted to $8.9 billion. Benefits paid to retirees reached $10.0 billion, exceeding pension contributions for a seventh quarter in a row.

In total, about 5.9 million Canadian workers are members of employer pension plans. Of this group, 4.8 million workers are members of trusteed plans. The remaining 1.1 million members with employer pension plans are managed principally by insurance company contracts. Data in this release refer only to trusteed plans and their pension funds.

~	Conference, Oct. 16, 2024. The War Against the Past: Fighting for our History

~	SLAV - Robert Lepage's Reaction

~	Author and Tolerance.ca Editor, Victor Teboul, Ph.D., to speak at the Arab World Festival of Montreal

~	Iran : Hey Ayatollah, Leave those kids alone! and Pink Floyd's remake

~	UN-backed group supports Somali Government’s peace overtures to rivals

~	Cargo vessel captured near Seychelles is commandeered to Somalia

~	U.S. and Oman Navy Rescue Indian Dhow from Somali Pirates - One Sailor Dead

~	Canada. 50% of tax filers participate in a private retirement savings plan

~	Somali Pirates capture second merchant vessel in 24h

~	Canada. 41% of adults have a high cholesterol level