Podcast
Questions and Answers
What does effective governance of a pension plan define?
What does effective governance of a pension plan define?
- Roles and responsibilities for financial management only
- Roles and responsibilities for administration, financial management, and investment management (correct)
- Roles and responsibilities for investment management only
- Roles and responsibilities for administration and communication only
What are some risks associated with poor governance of a pension plan?
What are some risks associated with poor governance of a pension plan?
- Decreased member appreciation
- Well-organized training materials for successors
- Higher likelihood of members receiving full benefits
- Regulatory audits, fines, and correction costs due to errors (correct)
What is one benefit of effective governance of a pension plan?
What is one benefit of effective governance of a pension plan?
- Decreased likelihood of members receiving full benefits
- Increased member appreciation and confidence (correct)
- Increased regulator intervention
- Lawsuits and fines
Among the operational responsibilities of a pension plan sponsor, which is essential for sound plan management?
Among the operational responsibilities of a pension plan sponsor, which is essential for sound plan management?
In effective plan governance, what is the formal framework that defines tasks and duties involved in a pension plan?
In effective plan governance, what is the formal framework that defines tasks and duties involved in a pension plan?
What is the significance of fulfilling fiduciary duty in pension plan governance?
What is the significance of fulfilling fiduciary duty in pension plan governance?
What is the primary role of a pension committee in the administration of a pension plan?
What is the primary role of a pension committee in the administration of a pension plan?
What fiduciary responsibility does a pension plan administrator have in relation to plan members?
What fiduciary responsibility does a pension plan administrator have in relation to plan members?
What concept does the 'two-hats' theory refer to in the context of corporate employers sponsoring a pension plan?
What concept does the 'two-hats' theory refer to in the context of corporate employers sponsoring a pension plan?
In which Canadian court case was the importance of good pension plan governance highlighted?
In which Canadian court case was the importance of good pension plan governance highlighted?
'What is a key difference between the fiduciary responsibilities of sponsors taking an active role in a Group RRSP compared to those acting as mere agents?'
'What is a key difference between the fiduciary responsibilities of sponsors taking an active role in a Group RRSP compared to those acting as mere agents?'
What is one of the key principles of the CAPSA Governance Guidelines for effective pension plan governance in Canada?
What is one of the key principles of the CAPSA Governance Guidelines for effective pension plan governance in Canada?
How do most CAP administrators provide investment information to plan members?
How do most CAP administrators provide investment information to plan members?
What is a factor CAP sponsors should consider when establishing criteria for selecting service providers to provide investment advice to members?
What is a factor CAP sponsors should consider when establishing criteria for selecting service providers to provide investment advice to members?
What is included in a member statement that CAP sponsors should provide to plan members on an ongoing basis?
What is included in a member statement that CAP sponsors should provide to plan members on an ongoing basis?
What does CAP stand for in the context of the text?
What does CAP stand for in the context of the text?
Why do many members not engage with the investment information provided by CAP administrators?
Why do many members not engage with the investment information provided by CAP administrators?
What should CAP sponsors do if the investment options no longer meet the criteria used for reviewing them?
What should CAP sponsors do if the investment options no longer meet the criteria used for reviewing them?
Which of the following is NOT a factor CAP sponsors should consider when establishing criteria for selecting service providers to provide investment advice to members?
Which of the following is NOT a factor CAP sponsors should consider when establishing criteria for selecting service providers to provide investment advice to members?
What is the main duty outlined for pension advisory committees?
What is the main duty outlined for pension advisory committees?
In which Canadian province must pension plans have written rules covering key governance areas?
In which Canadian province must pension plans have written rules covering key governance areas?
Why might a plan administrator want to comply with the CAPSA Governance Guideline and CAP Guidelines?
Why might a plan administrator want to comply with the CAPSA Governance Guideline and CAP Guidelines?
What type of pension plan has contributions made by both the employer and the employee into individual accounts for each participant?
What type of pension plan has contributions made by both the employer and the employee into individual accounts for each participant?
Which Canadian jurisdictions focus more on governance due to increased concern about at-risk plans?
Which Canadian jurisdictions focus more on governance due to increased concern about at-risk plans?
Why do administrators of DC pension plans that are CAPs need to consider both CAPSA Governance Guideline and CAP Guidelines?
Why do administrators of DC pension plans that are CAPs need to consider both CAPSA Governance Guideline and CAP Guidelines?
What do the CAP Guidelines aim to achieve with respect to regulatory outcomes?
What do the CAP Guidelines aim to achieve with respect to regulatory outcomes?
Which CAPSA guideline focuses on aiding in demonstrating investment prudence?
Which CAPSA guideline focuses on aiding in demonstrating investment prudence?
What is the main objective of Guideline No. 7 issued by CAPSA?
What is the main objective of Guideline No. 7 issued by CAPSA?
In which province must committees create and update governance rules every three years?
In which province must committees create and update governance rules every three years?
CAP sponsors are not required to establish a governance framework for plan administration according to the CAPSA Governance Guidelines.
CAP sponsors are not required to establish a governance framework for plan administration according to the CAPSA Governance Guidelines.
One of the principles of the CAPSA Governance Guidelines is to avoid providing appropriate information to governance participants.
One of the principles of the CAPSA Governance Guidelines is to avoid providing appropriate information to governance participants.
CAP administrators do not need to identify and manage plan risks according to the CAP Guidelines.
CAP administrators do not need to identify and manage plan risks according to the CAP Guidelines.
Establishing a code of conduct to manage conflicts of interest is not part of the principles of the CAPSA Governance Guidelines.
Establishing a code of conduct to manage conflicts of interest is not part of the principles of the CAPSA Governance Guidelines.
Most CAP administrators provide investment information directly to plan members without involving recordkeepers or investment managers.
Most CAP administrators provide investment information directly to plan members without involving recordkeepers or investment managers.
CAP sponsors do not need to consider legal requirements for providing investment advice when selecting service providers.
CAP sponsors do not need to consider legal requirements for providing investment advice when selecting service providers.
CAP sponsors are not required to provide an annual performance report for each investment fund according to the CAP Guidelines.
CAP sponsors are not required to provide an annual performance report for each investment fund according to the CAP Guidelines.
If investment options no longer meet the criteria used for reviewing them, CAP sponsors should not consider member complaints as a factor in deciding action.
If investment options no longer meet the criteria used for reviewing them, CAP sponsors should not consider member complaints as a factor in deciding action.
CAP sponsors do not need to notify plan members of significant changes to investment options on an ongoing basis according to the CAP Guidelines.
CAP sponsors do not need to notify plan members of significant changes to investment options on an ongoing basis according to the CAP Guidelines.
If investment options no longer meet the criteria, remaining CAP investment options should not be considered in decision-making according to the text.
If investment options no longer meet the criteria, remaining CAP investment options should not be considered in decision-making according to the text.
