About Us > Governance > Plan governance and policies

Plan governance and policies

Pension plans such as the CAAT Plan must be registered with the appropriate pension regulatory bodies. They have to adhere to the federal and provincial legislation that governs pensions as set by the Income Tax Act (ITA) and the provincial Pension Benefits Act (PBA) in order to retain their registered status. At the same time, as organizations entrusted with the assets of their Members, pension plans must also make sure that good governance practices are in place to protect those assets.

Governance

Investing in good governance

Members of the Board of Trustees and Sponsors' Committee

CAAT Pension Plan Sponsors

External Consultants and service providers

A History of Security and Trust

A Brief look at the CAAT Pension Plan

The CAAT Pension Plan outlines its policies in various formal documents, some of which must be filed with the regulators. We discuss these documents below. It also maintains practices and procedures which govern the manner in which the individuals and entities involved in administering the Plan fulfill their duties and obligations towards Plan Members. This governance structure is the system of oversight that plan administrators and sponsors follow when carrying out these obligations.

Federal Regulation

Canada Revenue Agency (CRA, formerly Canada Customs and Revenue Agency) administers the Income Tax Act (ITA) and regulations, which set the maximum limits for Registered Pension Plans. The ITA provides for tax deductions for Member and Employer contributions in order to encourage Canadians to save for their retirement. It places restrictions on the amount of yearly earnings that Canadians can accumulate as tax-deferred pension income and the amount that can be transferred to other plans or to locked-in RRSPs.

Provincial Regulation

The Financial Services Commission of Ontario (FSCO) regulates pension plans via the Pension Benefits Act. Unlike the ITA, which sets maximum limits, the PBA sets minimum standards for such requirements as vesting and eligibility. It spells out the rights of plan members and the obligations of Plan Sponsors in areas such as disclosure of information and paying benefits to survivors.

CAAT Plan Text

One of the requirements for plan registration is the existence of a formal plan document which sets out the rules of the plan. The CAAT Pension Plan's document - the Plan Text - details the provisions the Plan must adhere to. These provisions include membership requirements, contribution and pension formulas, normal retirement age and early retirement options. Any changes to Plan policies, as authorized by the Sponsors' Committee, require an amendment to the Plan Text.

Sponsorship and Trust Agreement

This document details the formation of the CAAT Pension Plan. The Agreement established the Trust Fund and outlined the roles and responsibilities of the Board of Trustees and the Sponsors' Committee.

The CAAT Pension Plan has a fiduciary responsibility to care for the assets held in trust on behalf of its Members. The Sponsors' Committee and the Board of Trustees are the entities responsible for the policies and procedures the Plan requires to comply with legislation and care for those assets.

Representation of Sponsors

The distribution of individuals who make up the Board of Trustees and the Sponsors' Committee ensures each sponsoring group, or Sponsor is represented. The eight-member Sponsors' Committee comprises four Employer and four Employee members, from the three groups which sponsor the Plan - Colleges Ontario, acting on behalf of the Boards of Governors of the Colleges , the Ontario College Administrative Staff Association (OCASA) and the Ontario Public Service Employees Union (OPSEU). At the Board level, the twelve trustees are appointed - six representing the Employers, and six representing the Employees.

Internal Policies

Plan Sponsors, Trustees and Staff have various policies in place that influence the way in which they fulfill their obligations. These include code of conduct, confidentiality and conflict of interest policies. In addition, the Plan has implemented a privacy policy and a disaster recovery program to protect the interests of Plan Members.

Education

Knowledge of pensions, finance and government legislation allows those involved in Plan administration to remain abreast of legal and procedural matters pertaining to benefits and financial management. New Board members participate in orientation to familiarize themselves with the requirements of the position and ongoing training is provided for the individuals involved in the administration of your pension plan.

Informing Members and Pensioners

The Pensions Benefit Act (PBA) requires that pension plans provide members with a document which explains the Plan, annual statements and other information to enhance understanding of the Plan. The CAAT Pension Plan distributes handbooks, annual statements, newsletters and brochures as well as regular correspondence to Members and Pensioners. An up-to-date Website is also available for those who wish to receive current information about the Plan.

January 2008