Canadian Investment Review

PIAC comments on CAPSA draft 2019-2022 strategic plan

Written by Staff on Wednesday, March 27th, 2019 at 8:27 am

Map of canada in canadian flag colors. © Maksym Yemelyanov /123RF Stock Photos Although the Canadian Association of Pension Supervisory Authorities’ has yet to release its draft 2019-2022 strategic plan publicly, the Pension Investment Association of Canada has released comments on the draft.

Specifically, the PIAC highlighted its support for finalizing an agreement respecting multi-jurisdictional pension plans as an appropriate top priority for the CAPSA.

It also encouraged the association to establish industry working groups when potentially following up on the use of leverage within pension plans.

The PIAC agreed environment, social and governance factors is an emerging issue requiring heightened attention. On this topic, plan sponsors would benefit from principles-based guidance regarding expectations of fiduciary duty, it said.

“We also support research initiatives in areas of cyber-security and the impact of emerging technologies on the pension landscape,” added the PIAC.

For topics that weren’t identified in the draft plan, the PIAC noted the limited published work analyzing the historical Canadian experience of pension plan terminations in the context of corporate insolvencies and its impact on beneficiaries. “PIAC believes a review of the historical record would help inform policy making for the pension sector and CAPSA would be well placed, given its national composition and proximity to the underlying data, to sponsor or co-ordinate such work as part of its mandate to promote research and awareness.”

The PIAC also reiterated its belief that pension plans would benefit from the creation of a single public agency to manage funds for un-locatable members. “With cross-country representation, CAPSA would be a logical platform to catalyze a national initiative in this area,” it said.

The CAPSA draft plan is due to be released later this spring.

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