Essential Skills for Pension Committee Members - Federated Press

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Trust, Investment & Regulation Kathryn M. Bush, Blake, Cassels & Graydon LLP 1:15-2:00 EFFECTIVE ACCOUNTABILITY FOR PENSION MANAGEMENT: TCC PENSION PLAN BEST PRACTICES Brian Leck, General Counsel, Toronto Transit Commission Establishing and implementing a reasonable pension plan governance policy will not completely insulate a sponsor from liability, but the absence of a policy or the failure to implement it is likely to be a factor that encourages a court to find against a plan sponsor. A properly constructed governance process coupled with periodic governance audits should allow plan sponsors to identify potential sources of obligation and deal with them before they result in liability. This discussion details how the Toronto Transit Commission’s pension plan fosters effective accountability and governance practices. · Implications of the recent draft of CAPSA pension plan governance principles, guidelines and self assessment questionnaire · Integrating pension governance into corporate governance · Fiduciary duties and responsibilities · Establishing internal procedures for managing pensions · Monitoring the fund on an ongoing basis 2:00-2:45 A UNION PERSPECTIVE ON PENSION PLAN GOVERNANCE Jo-Ann Hannah, National Representative, CAW-Canada As one of the largest private-sector unions in Canada (with almost 200,000 members), the CAW-Canada has made employer-sponsored pensions a priority in bargaining. The CAW-Canada has successfully negotiated and maintained pension plans with small employers as well as large corporations such as Air Canada, General Motors and CN Rail. The session will cover: · Different approaches among unions on pension plan governance · Governance issues with defined contribution plans · How unions and plan sponsors can work together in the interests of plan members 2:45-3:00 NETWORKING BREAK 3:00-3:45 OSFI’S EXPECTATIONS FOR MANAGING PENSION PLAN RISK Lisa Peterson, Manager, Private Pension Plans Division, Office of the Superintendent of Financial Institutions Canada Risk management is the process of analyzing exposure to risk and developing & implementing mechanisms to handle such exposure. The Office of the Superintendent of Financial Institutions Canada (OSFI), which supervises and regulates federally regulated private pension plans, assesses the quality of risk management at two levels of control: operational management and oversight functions. This session will examine OSFI’s expectations with respect to managing pension plan risk, including: · OSFI’s Risk Assessment Framework for pension plans · Risk components for pension plans · Quality of risk management · Stress testing: A risk management tool 3:45-4:30 LIABILITY AND THE FIDUCIARY Kathryn M. Bush, Blake, Cassels & Graydon LLP SESSION 2 The legal issues facing plan fiduciaries today are complex, and making a mistake can have serious consequences not only for the plan sponsor, but also for pension committee/board of trustees personally. This discussion details the legal framework governing the role of the plan fiduciary, with a view to helping both new and experienced pension committee members and plan trustees make better decisions. · A plan sponsor’s "two hats" · The fiduciary standard of care · Legal pitfalls in daily plan operation · The oversight role of a pension committee/board of trustees · What happens when a fiduciary breaches its standard of care? · Protecting yourself from personal liability: essential skills · Legal requirements for ongoing fiduciary training What Does It Take To Establish A Successful Pension Committee? Monday, November 21 st
Governance & Reform Michael Marmoreo, Regional Vice President, Group Pensions, Industrial Alliance Insurance and Financial Services Inc. 9:00-9:45 DC PLAN ISSUES Renée Couture, Director, Pension Services, Regulation, Compliance and Member Information, Canada Post Defined contribution pension committee members need to examine, at the appropriate level of detail, how plan participants actually make use of the DC plan, including such elements as investment behaviour, contribution levels and how participants access plan information. Establishing successful plan communications that actually engage plan participants of a defined contribution plan is a big challenge faced by sponsors. This presentation will examine the unique issues involved with DC plans, outlining some of the best practices and new ideas in communication. · Participant investment behaviour · Investment advice for plan participants · Investment options: active management, index funds, target date funds, target risk, customized vs. “off the shelf” · Retirement income issues: projections, calculators, plan design · Benchmarking key aspects of your plan administration as a continuous improvement process 9:45-10:30 THE IMPORTANCE OF RISK MANAGEMENT TO GOOD GOVERNANCE Bruce Curwood, Director, Investment Strategy, Russell Investment Group Under performance is a symptom of ineffective decision making and risk management. In view of the size of the assets involved and the difficult judgments to be made, it is vital that trustees develop the highest standards and adhere to strict governance and risk management processes. Designing and implementing an effective pension governance system involves careful planning, a support structure and the necessary processes and procedures of a policy-based framework. This session will discuss recent governance research, the major barriers to investment excellence and ways to narrow the knowing-doing gap in investments. · Governance structure and linkage with risk management · The key participants in plan governance: who should be involved · Identifying the corporate style and structure of the organization, the needs of pension members, economic constraints and the different attributes of various types and sizes of retirement plans · Determining if a risk management strategy is right for your specific plan · Barriers to action in risk management · The vital role of the chair 10:30-10:45 NETWORKING BREAK 10:45-11:30 THE FUTURE OF CAP Michael Marmoreo, Regional Vice President, Group Pensions, Industrial Alliance Insurance and Financial Services Inc. The past decade has witnessed the growth of CAP plans, coupled with an increase in DB/DC conversions. The future does not appear promising for DB plans, with escalating funding costs and loss of surplus ownership spurring a new round of conversions to CAP. This session will examine some of the challenges facing CAP plans (contribution and retirement inadequacy, lack of education and low participation rates) and explore possible solutions. · Where have CAPs been and where are they going? · Death of DB plans and the ensuing lack of coverage · Potential solutions: CSPPs and DPSPs · Low participation and contribution levels: causes and potential solutions · Failure of education · Replacement income adequacy · Recommended regulatory changes 11:30-12:15 MANAGING SERVICE PROVIDER CONTRACTS Randy V. Bauslaugh, McCarthy Tétrault LLP Pension committees commonly use service provider contracts when assigning administrative or financial duties to others. This session will provide suggestions and tips for negotiating and managing third party service provider contracts. · Contract basics for all third party service agreements · It’s not just boilerplate: interpreting “standard” language in service provider contracts · Common clauses in service provider contracts that should cause pension committee concern · Suggestions for dealing with investment management agreements · Suggestions when dealing with benefit administrator contracts 12:15-1:15 LUNCH Setting and Implementing Investment Objectives SESSION 3 Tuesday, November 22 nd
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Page 7 and 8: OPTIONAL WORKSHOP A Wednesday, Nove

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