In an
earlier blog post, we discussed some of the risks to sponsors
and administrators of registered pension plans. In this post, we
discuss governance audits, a risk management strategy that plan
sponsors and administrators can adopt.
What is a governance audit?
A governance audit is a tool used to determine: (i) whether the
documents that create and support the pension plan (e.g., plan
text, funding agreement, statement of investment policies and
procedures) comply with applicable law; (ii) whether the plan is
being administered in accordance with its terms, applicable law and
best practices; and (iii) whether the board and governance
structure are performing in a way that will allow the plan sponsor
and administrator to meet key pension objectives and goals.
