PPPD Investment Policy Guideline

Type of Publication: Letter
Date: April 2000
To: Administrators of Federally Regulated Pension Plans Pension Industry Representatives

This guideline presents OSFI's current views on investment management applicable to all pension plans subject to the PBSA. It is meant to serve as a guide to promote prudent and sound investment practices and to assist plan administrators in developing an investment policy suitable to their pension plan.

The guideline outlines factors that OSFI expects the administrator of a federally regulated pension plan to consider in establishing a written statement of investment policies and procedures for the pension fund and ensuring that it is effectively implemented and monitored. It should be adapted by each plan administrator to reflect the obligations of the plan, the objectives of the pension fund, and all other factors that may affect the ongoing funding and the solvency of the plan and also the ability of the plan to meet its financial obligations. The administrator should be prepared to explain any deviation from the guideline.

OSFI continues a targeted, proactive inspection of pension plans and retains the authority to direct compliance with the minimum standards of the PBSA and Regulations. This guideline supports those minimum standards, and also guides OSFI's assessment of risk regarding pension plan investment practices.

Queries with respect to this guideline should be directed to

Glenn McAllister, Senior Supervisor,
Operations and Policy, Private Pension Plans Division,
Office of the Superintendent of Financial Institutions,
255 Albert Street, Ottawa,
K1A 0H2,
telephone: (613) 990-7865,
fax: (613) 990-7394, or
e-mail: penben@osfi-bsif.gc.ca.

This document is also available, in both official languages, at OSFI's website at www.osfi-bsif.gc.ca or by phoning (613) 990-7655.