1. The Pension Satellite Account in the Canadian System of National Accounts OECD Working Party on Financial Statistics Allan Tomas Income and Expenditure Accounts Division Statistics Canada December 1, 2010

2. Outline  Pension Satellite Account structure and the Canadian pension system  Pension Satellite Account usefulness  Pension Satellite Account results  SNA implementation issues  Future developments 17/10/2015 Statistics Canada Statistique Canada 2

3. 17/10/2015 Statistics Canada Statistique Canada 3 Stock-flow matrix presentation of the pension satellite account Opening wealth position Inflows: contributions, investment income Outflows: withdrawals Revaluations and other volume changes Closing wealth position Social security Employer- based plans Individual registered saving plans Total

4. 17/10/2015 Statistics Canada Statistique Canada 4 Usefulness of the Pension Satellite Account: Analysis  Changes in the pension system  Personal saving and wealth evolution  Forecasting economic outcomes  Projecting tax revenue  Impact on capital markets  Sustainability and adequacy issues  Pension system risk Need for a Pension Satellite Account

5. Assets of Canada’s pension system, at market value 17/10/2015 Statistics Canada Statistique Canada 5

6. 17/10/2015 Statistics Canada Statistique Canada 6 Pension Assets in Household Assets

7. 17/10/2015 Statistics Canada Statistique Canada 7 Pension Assets as a share of Household Financial Assets

8. Government unfunded pension liabilities 17/10/2015 Statistics Canada Statistique Canada 8

9. 17/10/2015 Statistics Canada Statistique Canada 9 Changes to social security strategy result in accumulation of assets

10. 17/10/2015 Statistics Canada Statistique Canada 10 Contributions, by tier

11. 17/10/2015 Statistics Canada Statistique Canada 11 Withdrawals, by tier

12. Changes to the Social Security Plans 17/10/2015 Statistics Canada Statistique Canada 12

13. Contributions Less Withdrawals, by tier 17/10/2015 Statistics Canada Statistique Canada 13

14. Investment Income, by tier 17/10/2015 Statistics Canada Statistique Canada 14

15. Net Inflows (Contributions + Investment Income – Withdrawals), by tier 17/10/2015 Statistics Canada Statistique Canada 15

16. 17/10/2015 Statistics Canada Statistique Canada 16 Revaluations, by tier

17. 17/10/2015 Statistics Canada Statistique Canada 17 Labour Income, Personal Expenditure and Pension Withdrawals - Using the Pension Account as an Analytical Tool

18. 17/10/2015 Statistics Canada Statistique Canada 18 Using the Pension Account as an Analytical Tool -

19. 17/10/2015 Statistics Canada Statistique Canada 19  Unfunded pension liabilities recognized in the core accounts COMPLETED  Output of pension schemes COMPLETED  Actuarial valuation for employer-based defined benefit plans and accrual basis for contributions BEING EVALUATED  Treatment of social security plans, including actuarial valuations BEING EVALUATED  Presentational issues for employer-based plans BEING EVALUATED SNA Implementation Issues Regarding Pensions

20. Future Development of the PSA  Move to a quarterly frequency  Possible extensions Link to standard supplementary SNA tables on pensions Defined benefit plans  Micro-macro linkages  Continue to improve accuracy & detail 17/10/2015 Statistics Canada Statistique Canada 20