PENSION GOVERNANCE

Conference held in Toronto on February 27, 28 & March 1, 2006
Chairs: Nurez H. Jiwani, Financial Services Commission of Ontario, Bethune Whiston, Morneau Sobeco, Robin Pond, Morneau Sobeco, RoseMary Boyd, Sun Life Financial

CD-ROM: Ov. 11 hours of video presentations

To purchase, please contact Federated Press.

OBLIGATIONS & RESPONSIBILITIES

• Focusing on Obligations and Responsibilities of Governance
• Governance & CAP Guidelines
• The Understanding and the Importance of Governance
• 21 Questions to Address for Governance Process
• Identifying Participants Roles and Responsibilities & Measuring Their Performance in Governance Process

"The Pension Governance guidelines and the CAP guidelines are guidelines and not the law but to assist the plan administrators in fulfilling the responsibilities as governance bodies."

Video: 43 minutes • Overheads

Maintaining an effective pension governance program: Theory & practice
Tom Iannucci, Cortex Applied Research Inc., Marc Poupart, Hudson's Bay Company

• Good Governance and Performance Practices
• Establishing an Effective Governance Structure
• Continuous Attention on Governance Attention
• Implementing Changes in Governance Documentation
• Various Plans at HBC (Benefits, Pension & Retirement)
• The Benefits of Documentation

"Good governance is really crucial to performance, both on investment and benefit administrative sides, will not happen naturally, has to be consciously designed into good framework with policy, information and committee operations and requires ongoing efforts and attention with reviews, maintenance and updates.

"Good governance practices offer two fundamental benefits: Fiduciary protection and laying the groundwork for enhanced performance."

Video: 65 minutes • Overheads

Case study: Pension governance at the very top of the corporate agenda at RBC
Caroline Blouin, RBC Financial Group

• Governance Framework Guidelines
• Pension Governance at RBC
• The Roles of Pension Plan Management Committee
• Having Control and Knowledge on the Oversight of the Pension Governance
• Identifying Roles and Responsibilities in the Governance Structure

"A good pension governance framework will include guidelines, clear accountabilities, strong rigorous and oversight for all of the policies and guidelines. And also will have the efficient committees and efficient committee meetings not only to oversee the plan but also to have the accountability to the board."

Video: 29 minutes • Overheads • Paper 18 pgs. (3,015 words)

DESIGN & IMPLEMENTATION OF A GOVERNANCE STRUCTURE

Case study: OMERS governance experience – The transition to independence
Ruth Abbott, Ontario Municipal Employees Retirement System (OMERS)

• OMERS Governance Structure
• Pension Plan Governance Roles and Responsibilities
• Sponsor Governance Reform
• Corporation Compositions
• Striving to Deliver on the Pension Promise
• Building Trust with Plan Members and Stakeholders

"We want to make sure we create optimum value for our retirees through enhanced investment returns and operating cost efficiencies."

Video: 46 minutes  • Overheads

Morneau Sobeco case study: How does an expert in pensions improve on its own pension governance?
Nancy Reid and Bethune Whiston, Morneau Sobeco

• Morneau Sobeco Retirement Programs
• Organizational Structure & Governance Plan
• Establishing Clear Job Descriptions in the Administration
• Checklist for Responding to CAP Guidelines

"Governance is a process, not an event. Better governance is the evolving result."

Video: 51 minutes • Overheads

A union perspective on pension plan governance
Jo-Ann Hannah, CAW-Canada

• The Importantance of Governance
• Good Governance Principles & Compliance
• Union Workers and Pension Plans
• Benefit Plans Funding
• Federal Legislative Review
• The Roles of Regulators and Actuaries

"You have the regulator overseeing the administration and funding of pension plans, they have the resources to do the job and they have the legislative authority to act on discrepancies."

Video: 47 minutes • Overheads

Pension governance in an outsourcing environment
Kathy Byles, RBC Dexia Investor Services

• Identifying the importantance of Governance
• Establishing Roles and Responsibilities in Governance
• Impact of Outsourcing
• Monitoring and Benchmarking the Results
• Challenges in the Governance

"Pension plan governance refers to the structure and processes for overseeing, managing and administering a pension plan to ensure the fiduciary and other obligations of the plan are met."

Video: 16 minutes • Overheads

Practical fund governance: Applying governance principles in managing pension fund investments
Robin Pond, Morneau Sobeco

• Developing Governance Policy and Structure
• Effective Delegation System
• Liability and Investment Performance
• Determining Governance Objectives and Risk
• Evaluating the Effectiveness of Policy and Implementation

"A good governance structure will facilitate more effective investment decision-making by establishing a proper structure to support developing suitable policy, structuring appropriate delegation, and establishing effective control."

Video: 57 minutes • Overheads

Case study: Evolution of the pension governance structure at Canada Post
Douglas D. Greaves, Canada Post Corporation

• Solvency and Funding
• Pension Governance Structure
• Funding Policies and Investment Returns
• Define Pension Benefit Plan
• Fiduciary Oversight
• Provides Educational Programs on Pension Plan for Members

"Governance is critical and it should be viewed as something which applies to the individual pension plan but also from the context of legislative governance."

Video: 42 minutes • Overheads • Paper 15 pgs. (2,543 words)

Pension fund deficits: Emerging plan governance issues
Kathryn M. Bush, Blake, Cassels & Graydon LLP

• Pension Deficit Litigation
• Pension Plan Solvency Funding
• Claims Against Pension Plan Players
• Statutory Provisions Relevant to Pension Fund Deficits

"Unfortunately, pension fund deficits are a new reality, which we must all learn to handle appropriately. Given the magnitude of the financial effects of these deficits litigation is almost certainly to ensure. It is important to note the litigation risks resulting from this new funded status, and to find the ways to minimize these risks."

Video: 49 minutes • Overheads • Paper 64 pgs. (13, 225 words)

Case study: Pension plan funding and investment decisions at the Special Forces Pension Board (Alberta)
Colin Catonio, Special Forces Pension Board (Alberta)

• Pension Plan Funding and Investment Decisions
• Actuarial Evaluation Policy
• Board's Duties in Legislation
• Investment & Funding Policy
• The Importance of Good Governance Processes

"Hire advisors, inadequate resources can be a Board’s downfall. Spend plan dollars to ensure those with proper expertise are advising the Board."

Video: 33 minutes • Overheads

COMMUNICATION & LIABILITY ISSUES

Case study: Global pension governance at Sun Life Financial
RoseMary Boyd, Sun Life Financial

• Investment and Business Strategy
• Investment & Benefit Policies
• Adopted Towers Perrin Model into the Governance Structure
• Accounting Policy Reviews
• Continuos Improvement Process
• Pension Policy Plan

"World-wide governance guidelines provides a description of the responsibilities at all levels of the organization, both for those acting in a fiduciary capacity and those acting in the best interests of the company."

Video: 32 minutes • Overheads

A fiduciary duty: Continuous education for pension plan members
Lesley Kerr, Ryder Truck Rental Canada Ltd.

• Ryder's Fiduciary Duties and Responsibilities for On-going Education and communication Under the CAP Guidelines
• Approach to Educating Plan Members
• Creating Tools for the Employees
• Implementing Education and Communication
• Providing On-going Educational and Training Programs

"It's important that time is spent on the on-going education and communication of these plans, and it’s a fiduciary obligation. There's also a good business case that can be made for doing this."

Video: 35 minutes • Overheads

Class actions: Friend or foe?
Susan Rowland, Goodmans LLP

• Mechanics of the Class Action
• How to Use the Class Action System
• 3 Policy Statements of a Class Action
• Requirements for Certified Class Action
• Monitor Delegates
• Implement and Follow a Conflict of Interest Policy and a Code of Conduct
• Poor Governance Practices that can lead to a Class Action Law Suit
• Conduct Regular Governance Audit

"One of the purposes of a class action is to correct the behaviour of wrong doings."

"When good governance practices are not established and followed by a pension administrator (or its delegates), there is the potential for class actions. From the perspective of the administrator or plan sponsor, implementation of good governance structures and processes now, can help to reduce the risk of potential class actions later. If a pension plan is consistently administered in accordance with all laws and plan terms, the risk of a successful class action against the plan administrator or sponsor is reduced."

Video: 47 minutes • Overheads • Paper 30 (pgs.) 5950 words

• Issues in Conflict of Interest and How They Arise
• Separating Administrator/Employer Functions under the Ontario Pension Benefits Act ("PBA")
• Identifying the Governance Structure & Policies
• Implementing Canadian Association of Pension Supervisory Authorities (CAPSA) Guidelines
• Looking at Economic Best Interests

"It's important to develop a policy with respect to conflicts of interest but also to be sensitive and able to recognize them when they arise."

Video: 51 minutes • Overheads

• Environmental, Social & Governance (ESG) Issues in the Investment Decision Making Process
• Addressing Investment & Performance Issues
• Evolution of Ethical Investing to Socially Responsible Investing
• World-wide Practice of Corporate Social Responsibilities
• Policies for Responsible investment Guidelines
• Transparency in Disclosure on the Pension and Corporate Side
• Integrating with the Proxy Voting and dialogue strategies

"Integrating environmental social governance consideration into an investment analysis is to predict financial performance to be clearly permissible and as required in all jurisdiction."

Video: 50 minutes • Overheads