Falling stock prices took their toll on the value of assets in employer pension plans, which fell 4.7% in the first quarter Statistics Canada reported today.

The slump has forced employers to continue to make large contributions to these plans.

The value of assets in employer pension plans was $518.2 billion at the end of March, down from $543.8 billion at the end of the fourth quarter of 2002.

The first-quarter total was 15.7% below the peak of $614.4 billion in the third quarter of 2000. Since then, the value of assets in these funds has declined in seven out of 10 quarters.

“This devaluation forced employers to increase their contributions to these plans, halting a ‘contribution holiday’ period for many funds that lasted in some cases up to four years,” Statistics Canada said.

Acording to the Quarterly Survey of Trusteed Pension Funds, 37% of total assets were invested in stocks as of March 31. In the first quarter, the Standard & Poor’s/Toronto Stock Exchange Composite Index lost 4.1% of its value.

StatsCan said employer contributions in the first quarter amounted to $3.3 billion, down 17.5% from $4 billion in the fourth quarter of 2002.

“However, total employer contributions for 2003 are expected to match or exceed the previous year’s level of $12.6 billion,” StatsCan said. In 2001, employer contributions amounted to just $7.3 billion.