CAPSA urges Canadians to enrol in workplace pension plans, highlighting the benefits of retirement savings
The Canadian Association of Pension Supervisory Authorities (CAPSA) and its members are recognizing Pension Awareness Day on February 20, to emphasize the benefits of retirement planning.
CAPSA members oversee pension legislation, ensuring the rights and responsibilities of pension plan members in more than 16,000 active workplace registered pension plans.
Registered pension plans are designed to provide retirement income, allowing members to grow their money on a tax-deferred basis. Research indicates that Canadians with a workplace pension plan can save more efficiently.
However, as many as 27 percent of eligible employees choose not to participate in their employer-sponsored pension plans.
CAPSA encourages all eligible individuals to enrol in their workplace pension plans as soon as possible. Regulators and pension sector participants are promoting pension awareness to increase participation in these plans.
CAPSA’s recent Capital Accumulation Plan Guideline and Risk Management Guideline for plan administrators highlight the importance of clear communication, education, and tools to help plan members better understand their pension plans.
Regularly reviewing pension plan information is essential. Investment decisions change over time, and reviewing plans at key life events helps ensure alignment with long-term retirement savings strategies.
CAPSA also urges plan administrators and sponsors to actively engage members with clear, concise, and regular communications, making it easier for them to make informed investment decisions.
CAPSA has released two new guidelines to support pension plan management. Guideline No. 3 – Capital Accumulation Plan Guideline (CAP Guideline) and Guideline No. 10 – Risk Management Guideline outline best practices in pension oversight.
The 2024 CAP Guideline replaces the 2004 version, reflecting significant developments in financial services over the past two decades.
CAPSA Chair Angela Mazerolle stated, “Significant developments have occurred in the financial services industries over the past 20 years, and the new guideline reflects important updates of regulators’ views on the responsibilities of CAP sponsors, administrators and service providers in the current marketplace.”
She added that it “also clarifies expectations surrounding information to be communicated to members.”
CAPSA acknowledged the contributions of the Canadian Securities Administrators (CSA) and the Canadian Council of Insurance Regulators (CCIR), whose expertise helped modernize the CAP Guideline.
On September 9, 2024, CAPSA released its Risk Management Guideline. Previously, specific pension risks were addressed in separate documents.
Following stakeholder input from a 2022 consultation, CAPSA developed a single comprehensive guideline covering areas such as cybersecurity, leverage, third-party participants, investment risks, and environmental, social and governance (ESG) considerations.
David Bartucci, chair of CAPSA’s Risk Management Committee, stated that “both guidelines recognize the wide range in size and sophistication of plans, administrators, and sponsors.”
He emphasized that proportionality is a key aspect of the guidelines.
CAPSA recommends that each sponsor and administrator review the guidelines and determine how to implement the recommended practices in a way that suits their membership and organization.
Mazerolle emphasized that both guidelines reflect best practices in pension management and should be implemented as soon as possible.
She added that any required technology or process changes should be completed by January 1, 2026.
