3 Structure

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The Pension Satellite Account (PSA) is a set of accounts presented in an integrated stock-flow matrix form that closely resembles the Canadian System of National Accoutns (CSNA) framework. The concepts, definitions and accounting rules used in the PSA are consistent with and follow the conventions of the CSNA. This makes for coherent data and allows national accountants and analysts to easily integrate the PSA data with that of the CSNA in conducting analysis. The availability of these data may also facilitate cross-country comparisons.

The PSA stock-flow structure includes wealth positions (stocks of assets) at market values, inflows and outlays of funds, and other changes in wealth position. More specifically, the components of wealth change are:

  • Inflows of contributions and investment income as well as outflows in the form of withdrawals (which include payments of pension benefits) ─ both of which are used to fund financial transactions or investment activity; and,
  • Revaluations of investments and other changes in assets.

By definition, in a closed stock-flow matrix, the revaluations and other changes in assets comprise all changes in the wealth position not explained by contributions, investment income and withdrawals. This includes capital gains and losses, including those arising from exchange rate adjustments. For the purposes of the PSA, administration costs and other miscellaneous expenses and revenues are also included in other changes in assets.1

The PSA presents data for each of the three tiers of the pension system: (1) social security, (2) employer-based pension plans, and (3) voluntary individual registered saving plans (RSP). The basic matrix structure of the PSA is presented in the Appendix.

The institutional dimension of the PSA presentation has been mainly defined by data availability. The breakdown of the three tiers into further detail was provided where data supported it and reflects a mixture of detail by program and by institutional dimension. In the current format, social security is broken down into Canadian Pension Plan (CPP), Quebec Pension Plan (QPP) and Old Age Security and Guaranteed Income Supplement (OAS/GIS). Employer-based pension plans are presented as trusteed plans (private and public sectors), unfunded government plans, and other plans.

The detail available for individual RSPs includes deposit-type registered retirement saving plans (RRSP) in banks and life insurance products, RRSPinvestments in mutual funds and segregated funds, and other. This last category includes monies in locked-in retirement accounts (LIRA), locked-in life income funds (LRIF), life income funds (LIF), registered retirement income funds (RRIF), payout annuities from life insurance companies and self-directed RRSPs not included elsewhere. The data available for the development of flow estimates did not support an equivalent breakdown of individual RSPs and therefore only total flows for the third tier level are provided.


Note:

  1. A lack of detailed data precluded the consistent partitioning of administration costs and miscellaneous expenses and revenues from the revaluations and other changes in assets account.
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