Governance

Rigorous governance pactices

How do you ensure the sound governance of a retirement savings plan? Rigorous monitoring and effective communications.

The Capital Accumulation Plan (CAP) guidelines have increased your responsibilities as a retirement savings plan sponsor.

Keeping employees up to date about what's going on with the plan, and specifically about investments, is your number one priority.

The guidelines cover:

Retirement savings plans like group RRSPs
Deferred Profit Sharing Plans (DPSPs)
Defined Contribution Pension Plans (DCPPs)
Non-registered plans
Tax-Free Savings Accounts (TFSAs)

We're here with the support you need to ensure the sound governance of your plan.

We also have the tools you need to manage your group retirement savings plan effectively and make sure you're following the guidelines:

Full plan implementation and administrative support
Support from a dedicated account manager
Personalized communications that provide the information you need when you need it

See the table below for more information about your obligations and responsibilities as an employer.

Summary of guidelines adopted by the Joint Forum of Financial Market Regulators

Click on the section you're interested in to find out more about the responsibilities of everyone involved.

Employer

Choice of retirement plan

Introduce employees to the plan
Provide employees with investment information and decision-making tools
Maintain ongoing communication with employees
Ensure investment options are sufficiently diversified and meet the needs of employees based on their investor profile
Ensure there is enough flexibility to transfer funds from one investment option to another and that employees know the default option when they don’t choose an option
Ensure that the termination of the plan or an employee's enrolment in the plan takes place in accordance with the terms of the plan

Choice of retirement savings plan provider

Identify the responsibilities to be delegated to a service provider
Select a service provider based on criteria such as service costs, expertise, experience, specialization in the types of services required, and the quality and scope of the services being offered
Evaluate the performance of the retirement savings plan service provider based on objective criteria

Service provider

The employer¹ generally asks the service provider to:

Administer the plan's day-to-day operations
Provide information explaining:
- The type of plan offered
- How the investment options work
- The relative levels of risk and return of the various investment options
- How to add or remove an investment option and how this will impact the employees' portfolio
- The investment objectives of the plan's investment funds
Provide tools such as:
- Asset allocation models, calculators and tools allowing employees to determine their investor profile
- Statements providing the required information concerning fund performance, transactions performed and fees
If the employer wishes, and to the extent that the principles of confidentiality are met, provide access to a qualified investment advisor

¹ The employer is responsible for selecting which tasks will be delegated to one or more service providers. The employer may also decide to assume some of these tasks.

Employees
- Use the information and decision-making tools available to them
  Decide when to seek advice from an investment advisor, in addition to the information and tools provided.

The guidelines adopted by the Joint Forum of Financial Market Regulators take precedence over this table. Although Desjardins Financial Security makes every effort to provide accurate information, we offer no guarantees, formal or otherwise, as to the accuracy, validity or completeness of this information. Desjardins Financial Security also assumes no responsibility for any error or omission regarding this information or for any results obtained from reliance on this information.

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