The value of the retirement savings of Canadian workers with trusteed pension plans increased in the second quarter of 2005, Statistics Canada reported today, marking the ninth consecutive quarterly gain.
Pension fund assets increased to $729.2 billion, up 2.3% over the previous three months. The value of funds has been rising since it hit a low of $532.4 billion in the first quarter of 2003.
Fund revenues amounted to $22.2 billion and expenditures $9.1 billion, for a net cash flow of $12.1 billion during the second quarter of 2005. Quarterly cash flows have been positive for two full years, StatsCan notes. In the first quarter of 2003, the funds had a negative cash flow of $2.6 billion due to losses on the sale of assets.
Contributions were high at $7.1 billion, of which $5.4 billion were made by employers, it adds. Employer contributions have been on the rise since 2001. Up to that time many employers had been taking a contribution holiday because their pension fund investments were doing very well.
Benefits paid out in the first quarter amounted to just under $7 billion.