CAP guidelines – Benefits Canada.com

CAPSA updates guidelines on DC plan payout, responsibilities and advice

mschmit — Thu, 07 Mar 2019 04:30:50 +0000

The Canadian Association of Pension Supervisory Authorities has published an updated version of its guideline No. 8 for defined contribution plans, focusing on three main areas: the payout phase, plan sponsor/administrator responsibilities and advice. Introduced in March 2014, Guideline No. 8 aims to spell out the rights and responsibilities of DC plan administrators, providers and members. It […]

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CAPSA’s proposed DC pension guideline requires further clarification: CLHIA

mschmit — Wed, 12 Sep 2018 05:00:21 +0000

While the Canadian Life and Health Insurance Association generally supports the Canadian Association of Pension Supervisory Authorities’ proposed guideline on defined contribution pension plans, certain areas require further clarification. “We recognize that some service providers may require substantial lead time to enhance administrative systems to incorporate functionality, such as capturing and reporting indirect fees, that may not currently exist,” […]

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CAPSA consulting on variable benefits, fee disclosure in DC plans

mschmit — Tue, 07 Aug 2018 05:00:12 +0000

The Canadian Association of Pension Supervisory Authorities’ latest consultation is seeking feedback on amendments to its guideline No. 8 for defined contribution pension plans, focusing on considerations around decumulation, such as communicating variable benefits, assumptions used in retirement projections and fee disclosure. When it comes to withdrawals from a variable benefits plan, according to the amended guideline, plan administrators […]

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The Trouble With Fee Disclosure in DC Plans

mschmit — Mon, 16 Apr 2018 12:34:03 +0000

Plan members are in the dark when it comes to costs.

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Are group TFSAs a suitable replacement for outgoing Canada savings bond program?

mschmit — Fri, 27 Oct 2017 05:00:50 +0000

The Canadian government will discontinue the Canada savings bond and Canada premium bonds program on Nov. 1, 2017. While existing bonds will continue as usual until they mature or the purchaser redeems them, the option of buying them through a payroll savings program will now be off the table. The program reached peak popularity in the 1980s, but […]

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PIAC proposes regulatory changes to address decumulation concerns

mschmit — Fri, 20 Jan 2017 05:30:41 +0000

Canada’s pension and tax regulations need to be updated to address the lack of decumulation options for the growing number of Canadians nearing retirement, according to Kevin Fahey, chair of the Pension Investment Association of Canada. In a letter sent to Finance Minister Bill Morneau this week, Fahey noted that, while the regulations for capital […]

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Avoiding DC class actions

mschmit — Thu, 18 Dec 2014 07:17:07 +0000

Earlier this summer, Fidelity Investments settled two lawsuits brought by employees over the company’s own 401(k) plan. The suits alleged the firm offered employees its own higher-cost mutual funds when cheaper fund options were available and charged recordkeeper fees that were too high for a plan of its size. Fidelity contends the suits were “without merit” but settled for $12 million, which will be shared among more than 50,000 employees.

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2014 CAP Member Survey: Plan risks and the employer’s role

mschmit — Sat, 01 Nov 2014 03:04:09 +0000

CAP sponsors may be encouraged to see that member satisfaction levels remain high, both with their plans (88%) and with the performance of the plans’ investments (87%). But some of the other findings of the 2014 CAP Member Survey should raise eyebrows about the potential risks related to sponsors’ and members’ different views on each other’s responsibilities.

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No cost certainty with CAPs

mschmit — Tue, 27 May 2014 06:03:36 +0000

Plan sponsors that think moving from DB to DC would provide them with cost certainty may be mistaken.

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Oops, there goes my pension

mschmit — Mon, 12 May 2014 07:11:22 +0000

The decisions we ask employees to make at retirement are both complex and consequential. In many cases, there’s no going back. Whether you’re a DC member choosing an annuity or a DB member choosing a pension payment option, the decision is significant and irreversible. So, what role should plan sponsors play in equipping members to make these critical decisions?

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