Pension plans in Canada, as of January 1, 2023
Released: 2024-08-29
6,927,094.0
2023
3.2% 
(annual change)
The number of Canadians who were active members of a registered pension plan (RPP) grew by 215,800 (+3.2%) from 2021 to over 6.9 million in 2022. This compared to a growth of 772,016 (+4.4%) in employment over this period, according to the Labour Force Survey (LFS). RPPs are established by employers or unions for employees. Participating in one is an important employee benefit that provides a measure of security in retirement.
Women accounted for 48.6% of the increase in new memberships in an RPP in 2022, up 104,800 from 2021, surpassing 3.5 million in total membership among women. There were approximately 111,000 more male members in 2022 compared with one year earlier, bringing their total membership to nearly 3.4 million. Women's share of active membership was 51.3% in 2022, down from a high of 51.4% in 2021.
Membership increased in all provinces in 2022. Those working in Ontario had the highest increase, with 77,400 new pension plan members, followed by Quebec (+62,800), British Columbia (+34,000) and Alberta (+18,700).
Over two-thirds of registered pension plan membership covered by defined benefit plans
Over 4.7 million Canadians were active members of a defined benefit (DB) pension plan in 2022, up 3.3% from 2021. Membership in DB plans accounted for 68.1% of the total membership in RPPs in 2022, up 0.1% from 2021. Female membership made up 55.9% of total DB membership in 2022. DB pension plans are a type of pension plan in which an employer or sponsor promises a specified pension payment, lump sum or combination thereof on retirement. The pension amount depends on an employee's earnings history, tenure of service and age, rather than on individual investment returns.
Membership in defined contribution (DC) plans, the next most common type of pension plan, accounted for 18.4% of all RPP membership in 2022. DC plans gained 52,100 members in 2022, an increase of 4.3% compared with 2021. Most members of DC plans work in the private sector (86.4%), and this subset of the membership continued to be dominated by male members (63.2% in 2022, up from 63.0% a year earlier). As in previous years, women dominated DC membership in the public sector in 2022 (59.0%, down from 59.1% a year earlier). A DC plan specifies the contributions made by the employer, as well as by the employee if the plan is contributory.
Membership in other plan types, excluding DB and DC plans, such as hybrid, composite and combination plans, increased by 11,600 members from 2021 to 2022. Just over 934,800 workers, accounting for 13.5% of RPP membership, belonged to plans not classified as the conventional DB or DC models.
Public and private sectors grow
In 2022, public sector plans added over 110,600 participants (+3.1%) to their membership, for a total of just over 3.7 million members. Plans in the private sector added almost 105,200 members (+3.4%), reaching nearly 3.2 million members. Meanwhile, public sector employment, as measured in the LFS, rose by 3.7% from 2021 to 2022, while private sector employment increased by 4.6%.
Of the 110,600 new members of the public sector pension plans, women accounted for 60.5% (66,900) in 2022, which brought total female membership to just over 2.4 million. Male membership increased by nearly 43,800, bringing total male membership in public sector plans to over 1.3 million.
Membership in private sector plans grew by 105,200 (+67,300 men and +37,900 women) in 2022. The number of members in private sector DB pension plans rose by 3.4% (+42,700), whereas private sector DC plan membership was up 4.3% (+45,900). Other types of pension plans saw an increase of 16,600 in their membership.
RPP membership in 2022 continued to follow the historical trend: female RPP membership continued to be more concentrated in the public sector, while male membership remained higher in the private sector. This can be attributed to the fact that some of the largest public pension plans are those in health care, education and public administration. Of the 23 largest public plans (30,000 members or more), 3 had more men than women. Large, public plans were dominated by female membership (67.4%), whereas female membership in large private plans was much lower (39.2%). In total, women represented 61.5% of membership in large plans.
Percentage of paid workers covered by a registered pension plan decreases in 2022
Chart 1
Coverage rate
The pension coverage rate—that is, the proportion of all paid workers covered by an RPP—was 37.5% in 2022, down from 38.0% in 2021. The decrease in the coverage rate can be attributed to an increase in the number of paid workers, most likely a result of the economy's rebound from the COVID-19 pandemic, rather than a decline in membership in RPPs. There has been a trend towards lower pension coverage over the last 20 years, with 2021 and 2022 being somewhat of an exception because of changes in employment caused by the pandemic.
The coverage rate decreased for both men and women in 2022. For women, the pension coverage rate fell 0.7 percentage points to 40.5%, while for men it decreased by 0.2 percentage points to 34.8%.
Total registered pension plan contributions increase
Total employer and employee contributions to RPPs rose to $76.4 billion in 2022, up by $1.4 billion (+1.8%) from 2021.
Employee contributions accounted for 39.0% ($29.8 billion) of total contributions in 2022, and employer contributions for current service accounted for 55.2% ($42.2 billion). Employer contributions for unfunded liabilities represented 5.8% ($4.4 billion) of contributions.
The market value of assets in RPPs decreased by nearly $113.5 billion (-4.7%) in 2022 to $2.3 trillion. The 34 largest plans, each with 30,000 or more active members, held 61.4% of total assets, while accounting for 53.6% of total membership.
Did you know we have a mobile app?
Download our mobile app and get timely access to data at your fingertips! The StatsCAN app is available for free on the App Store and on Google Play.
Note to readers
Registered pension plans (RPPs) are established by employers or unions for employees. These data come from the Pension Plans in Canada program as of January 1, 2023.
A defined benefit pension plan defines the benefits to be paid according to the terms and conditions of the plan. The employer's contributions are not predetermined, but are a function of the cost of providing the promised pension.
A defined contribution plan specifies the contributions made by the employer, as well as by the employee if the plan is contributory. Pension benefits paid are a function of accumulated contributions and investment returns.
Other plans include hybrid plans, composite plans, plans that combine defined benefits and defined contributions, and other plans.
Membership is defined as active members of the pension plan currently making contributions to the pension plan or for whom contributions are being made.
An unfunded liability generally corresponds to any amount by which the assets of a pension plan are less than its liabilities.
The pension coverage rate is the proportion of all paid workers covered by an RPP and is calculated by combining estimates from the Labour Force Survey and the Pension Plans in Canada program. There are some adjustments for conceptual differences, and the coverage rates may change with each release because of revisions in the data sources.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
- Date modified: