Expressed in very rough percentages, the CPP/QPP pool was the smallest, with less than 10 per cent of the total, while assets held in RRSPs accounted for about 35 per cent. By far the largest pool was employer-sponsored pension plans, at about 55 per cent of the total. In virtually all cases, employer-sponsored pensions take the form of either defined-benefit or defined-contribution plans.
A defined-benefit pension plan promises a guaranteed, fixed stream of retirement income. The pension is based on the employee's work history and is often expressed as a percentage of the employee's salary. In contrast, pension benefits from a defined-contribution plan are not pre-determined.