Just because there haven’t been any large lawsuits around DC plans in Canada yet doesn’t mean they aren’t possible.

Paul Litner, partner, pensions and benefits, with Osler, Hoskin & Harcourt LLP, explains that there’s a trend now to emphasize the legal duties of DC plan sponsors, whereas the focus in the past has been primarily on DB.

“What you’re seeing now are new policies being developed by CAPSA that are specific to prudent pension investments, so [CAPSA is] focusing on due diligence of investments and saying this is what we expect plan sponsors to be doing,” he says.

Watch Litner further explain the care you need to take in creating and managing a DC pension plan.