The Canadian Association of Pension Supervisory Authorities today announced the release of guidelines for pension plan governance.
The Pension Plan Governance Guidelines and Self-Assessment Questionnaire follow three years of extensive consultation and work with pension stakeholders. CAPSA says the guidelines were “road tested” by pension plan administrators in 2003, and fine-tuned before they were finalized for release today.
The guidelines include 11 principles:
- Fiduciary responsibility;
- Governance objectives;
- Roles and responsibilities;
- Performance measures;
- Knowledge and skills;
- Access to information;
- Risk management;
- Oversight and compliance;
- Transparency and accountability;
- Code of conduct and conflict of interest; and
- Governance review.
The guidelines have been developed for use by registered pension plans of all types and sizes. “We have listened to pension plan administrators and stakeholders in finalizing the governance guidelines. We are confident that the guidelines will help pension plan administrators implement effective governance systems for their pension plans”, said Nancy MacNeill Smith, chairwoman of CAPSA, in a news release.
Although the guidelines do not create additional rights or obligations for any party to a pension plan, regulators expect pension plan administrators to voluntarily take measures necessary to follow the guidelines.
The guidelines are available on the CAPSA Web site.
CAPSA says it will release a frequently asked questions supplement to the guidelines in early 2005.