The value of the retirement savings of millions of Canadian workers with trusteed pension plans increased from $253 billion to $557 billion between 1992 and 2002, Statistics Canada reported today.

The gain in pensions represents an increase of 120%. This was a better performance than the rise in value of Canadian stocks over the same period (97% as measured by the TSX).

StatsCan notes that pension funds can outperform stocks because, apart from capital gains in stocks, they also earn interest and dividends, and typically have contributions from employers and employees.

“Therefore, the return on investment of pension funds can outperform the increase in value of stocks as measured by the TSX, and even have a positive return on investment over a period when the value of stocks declines,” the government agency notes.

“For example, between 2001 and 2002, the TSX lost 14% of its value, but trusteed pension funds achieved a 1.7% return on investment.”

The agency notes that trusteed pension plans represent about 72% of the value of all employer pension plans. The other forms of employer pension plans consist of government consolidated revenue funds (pension plans for public servants), and insurance company contracts with employers to provide employees with retirement benefits.

The data were collected through the Census of trusteed pension funds, the only census of the industry conducted in Canada. A detailed analysis of the historical data will be available in November. This historical series will be updated in January 2006 for the data year 2004, and every two years thereafter.