Mar 7, 2019
Osler partner Jana Steele tells Benefits Canada that prudent plan administrators should be mindful of their fee disclosure obligations after the Canadian Association of Pension Supervisory Authorities (CAPSA) published an updated version of Guideline No. 8 for defined contribution (DC) plans. In her article, author Brooke Smith examines the CAPSA update for DC plans, which focused on the payout phase, plan sponsor/administrator responsibilities and advice. According to the article, Guideline No. 8 “aims to spell out the rights and responsibilities of DC plan administrators, providers and members.” Jana, a partner in Osler’s Pensions & Benefits Group, says that fee disclosure is important to avoiding potential regulatory scrutiny. She says that she isn’t “aware of any DC litigation cases in Canada,” but “there have definitely been ones in the U.S. on reasonableness of fees and disclosure.”
“So it might be pre-emptory up here to say we know that this type of litigation is a possibility, as we’ve seen it in the States, and we’re trying to address some of these risk factors.”
The article goes on to explore the updates to Guideline No. 8 and the potential implications for DC plan administrators, providers and members.
For more information, read author Brooke Smith’s article “CAPSA updates guidelines on DC plan payout, responsibilities and advice” in Benefits Canada.