Our publication: Administering a pension plan well

Self-assessment

This self-assessment is designed to help pension committee members determine whether the committee is applying sound pension plan admnistration rules.

General questions			Yes	No
1.	Have you received training for your role as a pension committee member?		Yes	No
2.	Do you have access to all of the documents relating to the pension plan and its management? These include:
	a)	the plan text and any amendments	Yes	No
	b)	the internal by-laws of the pension committee	Yes	No
	c)	annual information returns (provincial, federal)	Yes	No
	d)	the plan's financial reports or financial statements	Yes	No
	e)	audit reports and reports on supplementary matters arising from an audit, if applicable	Yes	No
	f)	actuarial valuation reports and notices relating to the plan's financial situation (defined contribution plans)	Yes	No
	g)	the investment policy, if applicable	Yes	No
	h)	the funding policy (defined benefit plan)	Yes	No
	i)	the annuity purchasing policy (defined benefit plan), if applicable	Yes	No
	j)	the general transfer agreements between supplemental pension plans, if applicable	Yes	No
	k)	administrative processes (written policies, directives, administration guides)	Yes	No
	l)	contracts between various collaborators (service contracts, mandates, delegations of power)	Yes	No
	m)	expert reports and opinions of consultants	Yes	No
	n)	supporting documents for administrative expenditures	Yes	No
	o)	the minutes of the pension committee meetings	Yes	No
	p)	the minutes of the annual meetings	Yes	No
	q)	the minutes of the annual meetings	Yes	No
3.	Do you think that the pension committee's internal governance rules are sufficient to allow you to carry out your duties?		Yes	No

Specific questions			Yes	No	I don't know
Sharing of responsibilities among the various collaborators
4.	Are you aware of the responsibilities of each collaborator?		Yes	No	I don't know
5.	Do you know if they have been entrusted tasks through a mandate, delegation of powers or service contract? (See the part of this collection entitled Role and Responsibilities of the Pension Committee for more information.)		Yes	No	I don't know
6.	Are there mechanisms in place to monitor the work of its collaborators (reports, meetings, etc.)?		Yes	No	I don't know
7.	Does the pension committee regularly evaluate the performance of its collaborators?		Yes	No	I don't know
Monitoring of plan compliance and risk management
8.	Are there mechanisms in place to allow the committee to make sure that the plan is in accordance with current legislation?		Yes	No	I don't know
9.	Are there mechanisms in place to allow the committee to make sure that the plan is managed in compliance with its provisions?		Yes	No	I don't know
10.	Are there mechanisms in place to allow the committee to rapidly identify the various risks (e.g. failure to pay contributions)?		Yes	No	I don't know
If you administrate a defined contribution pension plan for which members determine how the amounts in their account are invested, the pension committee is not obligated to establish a written investment policy. Skip to question 14.
11.	Do you know how often the investment policy is revised?		Yes	No	I don't know
12.	Are you aware of the specific events requiring a revision of the investment policy (other than at regular intervals)?		Yes	No	I don't know
13.	Are there any rules allowing the committee to make sure that the distribution of investments complies with the provisions in the investment policy?		Yes	No	I don't know
14.	In the case of a defined contribution plan for which members choose their own investments, is the overall performance of the investments monitored?		Yes	No	I don't know
Internal governance of the pension committee
15.	Does the pension committee have rules concerning:
	a)	members' knowledge acquisition (training and information relevant to their duties)?	Yes	No	I don't know
	b)	the sharing of responsibilities between members?	Yes	No	I don't know
	c)	conflicts of interest and ethics?	Yes	No	I don't know
Communication
16.	Are there rules concerning communicating information about the plan and its administration to members and beneficiaries?		Yes	No	I don't know
17.	Is there a written policy for handling complaints from members or beneficiaries?		Yes	No	I don't know
If you answered No or I don't know to any of the questions above, please discuss these issues at a pension committee meeting and revise your pension plan's administration rules.

There is no point in rushing; you must start off on the right foot.

If your plan is not soundly managed, do not try to change everything at once. Take the time necessary to implement sound administration practices in one area at a time. You could begin with your financial duties, then move on to administrative duties and communication, etc. It is important that the pension committee make sure that all collaborators, including members and beneficiaries, are made aware of the work plan and its progress.