FSRA/OSFI Defined Contribution (DC) Pension Plans Technical Advisory Committee - Meeting Summary, December 11, 2020
Date: Friday, December 11, 2020
Time: 10:00 a.m. to 1:00 p.m.
This summary sets out the key points discussed at the December 11, 2020 meeting.
Purpose of Committee
This special purpose "ad hoc" committee is a collaboration between FSRA and OSFI that will assist both regulators in developing better processes, guidance and approaches to regulation of the DC sector. The committee will consider ways to improve outcomes for members of DC plans by looking at ways to address key DC plan risks, improve regulatory efficiency and effectiveness, and inform the development of a principles-based, outcomes focused and graduated supervisory approach.
Trend Analysis and Research
The Committee reviewed a data set showing the DC landscape in Canada. This included historical trends on the number of DC plan, membership, assets, fees and default investments. The Committee also reviewed models of approaches to DC regulation by the UK and Australia.
Deep Dive – Member Statements
The Committee discussed the key challenges to creating impactful and meaningful member statements and how digital access could change the role of member statements. In addition, the Committee considered:
- The importance of member engagement and education;
- The need for transparency of investment management and administration fees for both plan sponsors and members; and,
- The challenges surrounding providing appropriate projections as well as decumulation options.
The Committee will also establish two working groups with the objective of focusing discussions on plan design and member engagement (including statements and retirement income). These groups will report back to the Committee at the next meeting.
|FSRA - EVP and TAC Chair
|OSFI - Managing Director, Private Pension Plans Division and TAC Chair
|Manulife Financial Corporation
|Many Nations Co-operative Ltd.
|Canadian Benefits Law
|Canadian Institute of Actuaries
|Pension Investment Association of Canada
|Co-operative Superannuation Society Pension Plan
|Morneau Shepell Ltd.
|Cowan Insurance Group
|George Weston Limited
|Multi Employer Benefit Plan Council of Canada
|Sun Life Assurance Company
|Royal Bank of Canada
|Association of Canadian Pension Management
|Barbara Austin, David Bartucci, James Hoffner, Jesse Heath-Rawlins, Antoinette Leung, Kirk Quinn, Lynn Barron, Mark Eagles, Paul Martiniello
|Benoit Briere, Jeff Bowman, Sydney Roy
|Jenny Chau, Carolina Geronimo
|Matt Krzepkowski, Neil McKinnon
|Department of Finance
|Lauren Kappius, Alex Killoch, Cole Mathews
|Ministry of Finance