The Office of the Superintendent of Financial Institutions has issued a draft guideline setting out disclosure obligations for defined contribution pension plans.

In a letter sent Friday to DC plan administrators, OSFI said that the guideline is intended to inform the pension industry “of the general principles as well as more detailed requirements” that OSFI will expect to be disclosed to plan members, eligible employees, and spouses.

The general principles set out in the guideline call for plan administrators to ensure that disclosure is timely, understandable, accurate, complete, and useful; and that it is carried out in adherence with fiduciary responsibilities and duties of care.

The regulator notes that effective communication between pension plans and their members promotes transparency and provides other benefits, such as enabling members to make informed financial planning decisions; helping them understand the plan, and promote confidence in the plan.

Comments on the draft are due by December 31.

IE