Capital Accumulation Plans

Capital Accumulation Plans

We advise employers to comply with their legal responsibilities and best practices vis-à-vis the sponsorship and administration of defined contribution pension plans and all other types of capital accumulation plans (group RRSPs, DPSPs, group TFSAs and top-up defined contribution plans), including compliance with legislation and industry best practice, notably CAPSA’s Capital Accumulation Plan (CAP) Guidelines and DC Guidelines.

Among other issues, we advise sponsors of defined contribution arrangements with respect to the selection of investment options and the communication of investment and other information to members.

In addition to assisting with day-to-day defined contribution pension plans matters, we provide legal advice to employers in connection with plan design changes, including conversions of existing defined benefit arrangements to defined contribution plans.

As Canadian defined contribution plans mature, “decumulation” has become a greater concern for many plan sponsors.  We have extensive expertise in the legal aspects of this emerging topic.  We have assisted clients establish and operate innovative, in-house retiree decumulation vehicles, including customized retirement income fund (RIF) programs, with a view to assisting retirees and former employees benefit from high quality investment options and “wholesale” investment fees.