CAPSA releases draft DC pension plans guideline
On July 13, 2012, the Canadian Association of Pension Supervisory Authorities (CAPSA) released a draft Defined Contribution Pension Plans Guideline (the “Draft Guideline”) for comment.
The Draft Guideline builds on the guidelines and documents related to DC pension plans previously released by CAPSA by:
- Outlining and clarifying the rights and responsibilities of the key stakeholders in DC pension plans such as plan administrators, employers, plan sponsors, members, service providers, and fund holders;
- Providing guidance regarding tools and information to provide to DC plan members, including information regarding investment choices, contributions, projected account balances at retirement, and retirement products (e.g., locked-in retirement accounts, locked-in retirement income funds, life income funds, restricted life income funds, prescribed registered retirement income funds, variable benefits); and
- Clarifying what constitutes an adverse amendment for DC pension plans or plans with a DC provision.
The Draft Guideline also provides an overview of the information DC plan administrators should offer to members concerning various retirement products. Comments on the Draft Guideline are due by November 1, 2012.