Now available: CAPSA Guideline Changes

September 11, 2024

Following the recent release from the Canadian Association of Pension Supervisory Authorities (CAPSA) regarding:

  • Changes to Guideline No. 3 Capital Accumulation Plans (CAPs), and
  • The new Guideline No. 10 for Risk Management for Plan Administrators.

Sun Life is aware of these changes and has been actively working with CAPSA regulators throughout the consultation process. The following communication summarizes key changes to Guideline No. 3 and provides an overview of the Guideline for Risk Management for Plan Administrators.

CAPSA Guideline No.3: Capital Accumulation Plans

This guideline hasn’t been revised since 2004. The revised guideline outlines the expectations of regulators regarding the operation of CAPs. The revisions are intended to support the development of best practices in the maintenance and administration of CAPs. It includes the responsibilities of plan sponsors, service providers, and plan members. It also provides details of the information that regulators recommend should be provided to plan members.

Sun Life is undertaking a full assessment of CAPSA’s final revised Guideline No. 3’s new responsibilities and updated requirements. The changes to the guideline are significant to the plan sponsor, plan advisors and service providers. We’re ready to support you in meeting your obligations under the new guideline implementation date no later than January 1, 2026.

To support you, we’ve created a resource highlighting the most noteworthy changes in the revised guideline.

In addition, join us for a webinar on November 18, 2024, at 2pm ET covering further details of the changes and how Sun Life can support you. Please contact your Sun Life Group Retirement representative for registration details.

CAPSA Guideline No. 10: Guideline for Risk Management for Plan Administrators

Risk management is a process ensuring pension plans are governed appropriately. This includes having processes and controls in place to identify, evaluate, manage, and monitor risks to a plan’s objective.

This new guideline complements CAPSA Guideline No. 4 (Pension Plan Governance), as well as other CAPSA Guidelines that refer to risk management.

The Pension Plan Risk Management Guideline only applies only to pension plans. Its intent is to support plan administrators in fulfilling their fiduciary responsibilities and legislated standard of care. Plan administrators are encouraged to adapt their risk management practices to their pension plan (e.g. size, operational risks, complexities, etc.).

The guideline encourages plan administrators to understand their risk appetite, tolerance, and capacity and the limits that should be set based on these factors. The guideline also explains how to create a risk management framework and provides examples and templates that can be used.

The guideline provides additional guidance on key topics and the risks stemming from them. These topics include third-party (outsourcing), cyber security, environmental, social and governance (ESG) issues, and the use of leverage.

Next Steps:

We encourage you to familiarize yourself with the revised guidelines and register for the November webinar.

Questions? We’re here to help.

Please contact your Sun Life Group Retirement Services Representative.