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ARTICLE · 02 MAY 2014

Employers Providing Defined Contribution Plans Given Additional Guidance

Borden Ladner Gervais LLP
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On March 28, 2014, the Canadian Association of Pension Supervisory Authorities released Guideline No. 8: Defined Contribution Pension Plans Guideline.

CanadaEmployment and HR

On March 28, 2014, the Canadian Association of Pension Supervisory Authorities released Guideline No. 8: Defined Contribution Pension Plans Guideline. The Guideline supplements existing CAPSA guidance related to DC plans and provides additional guidance to employers that provide a defined contribution pension plan or a pension plan with a defined contribution component. Although the Guideline is not a legal requirement, it reflects the expectations of regulators regarding the operation of DC plans. For plan administrators, in particular, the Guideline can assist in meeting their fiduciary duties.

THE NEW GUIDELINE

Employers will likely be aware of existing CAPSA guidance related to DC plans, such as Guideline No. 3: Guidelines for Capital Accumulation Plans (CAP Guidelines) and Guideline No. 4: Pension Plan Governance Guidelines and Self-Assessment Questionnaire. Another applicable CAPSA guideline that employers also will likely be aware of, and which we wrote

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