PIAC Weighs in on Draft of Revisions to CAPSA's Capital Accumulation Plan Guidelines
October 06, 2022
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The Pension Investment Association of Canada (PIAC) is concerned that changes to the Canadian Association of Pension Supervisory Authorities’ (CAPSA) guidelines for capital accumulation plans (CAP) may discourage employers from making these plans available to their employees.
PIAC’s reservations lie in the guideline’s increase in responsibilities for employers, as they don’t feel there is enough clarity on laws and regulations to support this change. “Careful consideration should be given to separate suggested best practices, which may not currently be available to all CAP sponsors in today’s marketplace, from minimum standards,” Sean Hewitt, chair of the PIAC, wrote in an open letter to CAPSA.
Hewitt suggests the new guidelines should strike a balance between enhanced simplicity and providing members with sufficient investment options to customize their risk/return, according to Benefits Canada.
Read more in-depth coverage of the letter by clicking on more information.
