ACPM encourages CAPSA to prioritize decumulation in draft 2023-2026 strategic plan
April 13, 2023
Following the release of the Canadian Association of Pension Supervisory Authorities (CAPSA)’s Strategic Plan 2023-2026, the Association of Canadian Pension Management (ACPM) has written an open letter, outlining three items ACPM is recommending that CAPSA consider in finalizing its priorities.
In the letter, the ACPM encourages CAPSA to consider addressing decumulation matters as a priority initiative of the next strategic plan, noting that “addressing the area of decumulation of DC account balances is an area where CAPSA can positively impact the retirement outcomes of hundreds of thousands of Canadian retirees each year.”
The ACPM’s letter also proposes ongoing engagement amongst CAPSA members to support coordinated and harmonized practices where possible, suggesting that discharge provisions related to annuity purchases, and the methodology for calculating Provisions for Adverse Deviations (PfADs), are areas where harmonization would be beneficial.
Finally, the ACPM Letter recommends that if decumulation of DC account balances is to receive priority (as the ACPM is suggesting), that CAPSAs Risk Management Guideline’s timeline for completion may be too aggressive.
To read the full letter, click on more information link below:
