Updates to Capital Accumulation Plans Guidelines

This technical report examines the proposed updates to the Capital Accumulation Plans (CAP) Guidelines issued by the Canadian Association of Pension Supervisory Authorities. It provides a comprehensive background on the current guidelines, detailing the changes that have occurred since their introduction and the potential impacts of the latest proposed updates on various stakeholders, including sponsors, plan administrators, members, and advisors. The report emphasizes the importance of effective governance in the success of CAPs and identifies areas where advisors can assist sponsors and administrators in establishing a robust governance framework. Additionally, the report outlines the key responsibilities of sponsors, including the selection of service providers and the necessity for clear communication with CAP members. It discusses the evolving landscape of group retirement plans and the implications of new technologies on the administration and management of these plans. The proposed changes aim to enhance member education, clarify responsibilities, and improve fee disclosures, thereby contributing to better member outcomes.