The Canadian Association of Pension Supervisory Authorities (CAPSA) has released a draft Defined Contribution Pension Plans Guideline for comment.
The mandate of the guideline, which was released July 13, is to examine the regulation of DC pension plans and DC provisions in hybrid plans, address areas where clearer distinctions between DC and DB plans are needed and consider alternative approaches to regulating DC plans.
In a letter addressed to pension industry professionals and dated July 13, CAPSA said the guideline will:
- clarify the responsibilities of DC plan administrators, sponsors, members and third-party service providers;
- provide guidance on tools and information to provide to DC plan members, including information on retirement options; and
- clarify what constitutes an adverse amendment for DC plans.
The guideline is intended to supplement the following existing CAPSA guidelines:
- Guideline No. 3: Guidelines for Capital Accumulations Plans;
- Guideline No. 4: Pension Plan Governance Guidelines and Self-Assessment Questionnaire;
- Guideline No. 5: Guideline on Fund Holder Arrangements; and
- Guideline No. 6: Pension Plan Prudent Investment Practices Guideline and its companion document, the Self-Assessment Questionnaire on Prudent Investment Practices.
The draft guideline is available for download from the CAPSA website.
Comments on the guidelines are to be submitted to Andrew Schrumm, acting policy manager with the CAPSA secretariat, via email to capsa-acor@fsco.gov.on.ca.
Comments are due Nov. 1, 2012.