Research Shows Public Sector Pension Spending Contributes $82 Billion Annually to the Canadian Economy

Economic Activity of Plans Supports Almost 900,000 jobs and Over 55,000 Businesses Across Canada

TORONTO and VANCOUVER, BC, Nov. 4, 2021 /CNW/ - Research released by the Canadian Centre for Economic Analysis highlights the unique value provided by Canada's public sector pension plans across the country. The economic activity from the operations of pension plans and retirees spending their income supports 877,100 jobs and 55,500 businesses across Canada, supporting $33.1 billion in annual wages and $21.4 billion in tax revenue.

The report was commissioned by the Canadian Public Pension Leadership Council (CPPLC) to understand how public pension plans contribute to the Canadian economy. It shows that nationwide every $10 of pension payments generates $16.70 of economic activity and makes a total contribution of $82 billion (3.6%) to Canada's economy annually.

Canada's public sector pension plans provide retirement security to 1.85 million retired nurses, teachers, firefighters, bus drivers, social workers, janitors, and other public servants. The report finds that the $49 billion paid annually in pensions provides broad-based benefits spread across Canada geographically and demographically. In total, 39% of the 877,100 jobs supported go to people under 35; 797,900 children live in households where income originates from public pension plan activity; rural communities benefit by 6.4% more per capita than urban communities; and 72% of the businesses supported employ less than ten people. 

The findings of the report highlight how public sector pension plans provide stability to regions across Canada through retiree spending and demonstrates how provinces benefit in different ways. Atlantic Canada has the highest percentage economic contribution; Ontario receives the biggest economic benefit per $10 of pension payment; and Alberta has the highest proportion of jobs generated for people under 35.

The CPPLC is sharing the report to help inform discussion about the economic contribution of public sector pension plans in Canada.

"Canada's public sector pension plans were set up to provide a stable retirement income for public servants, but this research speaks to a much broader impact. Four million Canadians of different ages in all regions benefit directly or indirectly from the economic activity generated from pension operations and retirement spending. This speaks to the value our public pension plans provide as a unique asset for the country in supporting jobs, households, and communities." Derek Dobson, Co-Chair, CPPLC

More details on the economic impacts of Canadian public pension plans can be found in the report Economic Benefits of Canadian Public Sector Pension Plans: https://cpplc.ca/economic-benefits-of-canadian-public-sector-pension-plans/

About The Canadian Public Pension Leadership Council (CPPLC):

The CPPLC is a non-partisan group of senior public sector pension plan leaders from across Canada. Established in 2013, the CPPLC is dedicated to informing the evolving discussions about retirement income security for working Canadians. The CPPLC is composed of 13 public sector pension plans from across Canada representing over 1.6 million active and retired members.

CAAT Pension Plan; College Pension Plan; Government of Canada Pension Centre; LAPP; Municipal Pension Plan; NS Pension Services Corporation; OMERS; Provident 10; Public Service Pension Plan; Saskatchewan Healthcare Employees Pension Plan; Saskatchewan Teachers' Retirement Plan; Teachers' Pension Plan; Winnipeg Civic Employees' Benefits Program

About the Canadian Centre for Economic Analysis (CANCEA):

CANCEA is a socio-economic research, analysis and data firm using uses industry-leading techniques in data science, including agent-based modelling. CANCEA provides objective, independent and evidence-based analysis and is dedicated to a comprehensive, collaborative, and quantitative understanding of the short- and long-term risks and returns behind market changes, policy decisions and economic behaviour.

SOURCE The Canadian Public Pension Leadership Council (CPPLC)

Report, John Allen, Tel: [phone], [email protected]; CPPLC, Vicki Lam, Tel: [phone], [email protected]