Canadian pension regulators have issued two new guidelines that set out their expectations for pension plans in terms of ensuring they have prudent investment and funding practices.
The Canadian Association of Pension Supervisory Authorities Tuesday released two new guidelines, one dealing with prudent investment practices, and another concerning pension funding, along with a self-assessment questionnaire on investment practices. Draft versions of the guidelines were published for comment earlier this year, and CAPSA notes that it has made a number of revisions to the consultation drafts for these final versions.
CAPSA says it believes that good governance, in terms of best practices in pension plan funding and investment, is essential if plan members are to receive the benefits they have been promised. These new guidelines, which aim to build on an existing guideline regarding plan governance, are intended to provide guidance to pension plans of all types and sizes, in all jurisdictions of Canada.
“The guidelines reflect the expectations of pension regulators regarding the adoption by pension plan administrators of prudent investment practices and funding policies. They are intended to support the continuous development and improvement of industry practices,” it says in a letter to stakeholders.