The U.S. Department of Labor is proposing new rules that would give pension plan fiduciaries the ability to make investment decisions based on environmental, social and governance factors. If adopted, the rules would amend the Employee Retirement Income Security Act of 1974. In its summary of the proposed changes, the Department of Labor said they’d […]
Board and executive-level efforts to integrate environmental, social and governance issues into pension plans’ investment strategies are frequently thwarted by unclear guidance from plan sponsors and uncertainty about fiduciary duties, according to a new working paper by the University of Pennsylvania. The paper concluded that efforts to implement ESG criteria in investment decision-making are frequently hamstrung […]
The Financial Services Regulatory Authority of Ontario is releasing final interpretation guidance to support the role and responsibilities of pension plan administrators. The guidance, an updated and consolidated version of four previous documents, said the administrator’s role includes responsibility for implementing processes to ensure pension plan risks — such as investment, funding, operational and legal — […]
Canada’s pension plan sponsors have a fiduciary responsibility to consider climate change in their financial decisions, according to Randy Bauslaugh, counsel for pensions and benefits and executive compensation at McCarthy Tétrault LLP, during a webinar hosted by the Canada Climate Law Initiative and the Canadian Pension & Benefits Institute. “The failure of plan administrators and […]
Institutional investors, regulators and financial standard organizations are calling on Canadian corporations to adopt transparent climate-risk reporting, according to a new report from the C.D. Howe Institute. The report noted corporate directors have the legal and fiduciary duty to act in the best interests of their companies in developing strategies to address climate-related financial risks […]
Ontario’s pension plan administrators and plan members share the responsibility of maintaining current contact information, according to the Financial Services Regulatory Authority of Ontario’s final guidance on missing plan members. It recommended administrators maintain a records management system and retention schedules that support long-term administration of the pension plan and to exercise care and diligence […]
The Pension Investment Association of Canada is expressing its support for the Financial Services Regulatory Authority of Ontario’s draft guidelines for pension plan sponsors dealing with missing members. In a letter, the PIAC said the draft guidelines would be helpful on a go-forward basis, but also noted plan administrators need more options regarding current missing […]
The Canada Climate Law Initiative is calling into question whether the Canada Pension Plan Investment Board is sufficiently aligning its investments with the transition to a low-carbon economy. In a legal analysis, the organization said the pension fund’s current allocations to high-carbon assets reveal a “troubling incrementalism” within its efforts to mitigate Canadians’ exposure to […]
The U.S. Department of Labor is taking jabs at the inclusion of environmental, social and governance products in capital accumulation plans — and it could be to members’ detriment. In late June, the Department of Labor proposed new rules around ESG products in retirement accounts. “The proposal is designed, in part, to make clear that . […]
With environmental, social and governance issues becoming more prominent among investors, it’s important to consider what sustainability means for DC plans. Plan sponsors are facing somewhat conflicting objectives, said Christine Girvan, senior managing director and head of Canadian distribution at MFS Investment Management, during a session at Benefits Canada‘s 2020 DC Plan Summit in Montreal […]