In September 2024, the Canadian Association of Pension Supervisory Authorities published a new guideline for risk management for plan administrators and an update to their guideline for capital accumulation plans that was originally published in 2004.

The scope of the risk guideline is wide and covers all registered pension plans, including defined benefit, defined contribution, pooled registered, target-benefit and hybrid plans.

Read: Expert panel: How will CAPSA’s risk management guideline impact pension plan administrators?

The risk guideline has two distinct components: defining overall risk and risk management. With respect to defining overall risk, the CAPSA expects plan administrators to establish, in the form of a written statement, an overall risk appetite, risk tolerance and risk limits for each plan. Thereafter, the guideline addresses both a broad risk management framework as well as considerations for certain specific risks. Based on the guideline, pension plan administrators should identify specific objectives for their plans. Risk management practices can then be implemented to increase the likelihood that the objectives will be met through a four-step process: identification, evaluation, management and monitoring of........

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