A tough economy is not deterring
Canadian employers and employees from contributing to group defined
contribution (DC) retirement and similar plans, reveals a study
sponsored by Canadian insurer Great-West Life.
Indeed, far from shying away from their
commitment to DC plans, employers and employees alike increased
their contribution rates in 2009. Specifically, employers
contributed 4.6% of salaries to their pension plans in 2009, up
from 4.5% in 2008, while employees contributed 4.3% of salaries, up
from 3.9%.
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The study also highlighted that 80% of
responding employers with DC pension plans reported that their plan
participants maximised their contributions so they can get full
employer matching. This was up from 75% of plan participants in
2008.
“This research clearly illustrates how
robust employer-sponsored retirement plans are in Canada,” said
Bill Kyle, senior vice-president, group retirement services at
Great-West Life, which administers one-in-three Canadian DC
retirement plans.
Over 50% of Canadian private sector workers
have access to retirement plans.
