Top 50 DC plans report: A look at the latest governance trends – Benefits Canada

Sep 7, 2016

In a recent Benefits Canada article, managing editor Jennifer Paterson explores the changing defined contribution plan landscape and the fact that governance is becoming a growing concern for plan sponsors. The article includes detailed commentary on six key governance trends – decumulation, reviewing member outcomes, more guidance from the regulators, monitoring and reviewing third parties, better and more targeted communications, and the evolution of the governance committee – and turns to industry experts for additional information. Jana Steele, a partner in Osler’s pensions and benefits group in Toronto, offers her insight on a number of these trends, including decumulation – a “major buzzword” since it appeared in the Canadian Association of Pension Supervisory Authorities’ 2014 guidelines.

“It indicates that it’s expected the plan administrator will provide information regarding all the retirement products available to members with respect to the payout phase and that the information should allow members to make informed decisions that strike a balance between protection from the risks inherent in the various products and achieving target replacement rates,” she notes in the article.

Jana also comments on the increased guidance being provided by regulators as well as the importance of monitoring and reviewing third parties such as the investment manager and the funds, as well as the pension provider or administrator.

Read the entire article A look at the latest governance trends in Benefits Canada’s 2016 Top 50 DC plans report released September 1, 2016.