Technical Advisory Committee for the Review of DC Plans
These Terms of Reference are intended to inform the creation of the identified technical advisory committee focused on the review, supervision and member outcomes of defined contribution (DC) pension plans. This technical advisory committee will be a joint collaboration between FSRA and OSFI. Technical advisory committees are an important part of FSRA and OSFI’s stakeholder engagement process, assisting both Regulators in developing better processes, guidance and approaches to its regulation of the pension sector, and ways to harmonize supervisory approaches across Canada to improve regulatory efficiency and effectiveness.
This stakeholder engagement process enables two-way dialogue and understanding. We want our stakeholders to be informed of FSRA and OSFI activities and to provide timely advice and feedback. We may also seek to identify and discuss emerging issues.
Responsibilities of technical advisory committee members include:
- reviewing background material in preparation for meetings and attending meetings;
- providing solutions-focused advice, proposals and feedback to FSRA and OSFI and freely expressing points of views;
- using best efforts to, where possible, develop consensus; and
- providing feedback to FSRA and OSFI on the functioning of the committee.
2. Mandate of the Technical Advisory Committee
We are establishing this joint Technical Advisory Committee for the Review of Defined Contribution Plans (the Advisory Committee) as an ad hoc, special purpose committee. This Advisory Committee will review regulatory processes and legislative requirements that currently apply to DC pension plans. Amongst other things, the Advisory Committee will consider ways to:
- improve member outcomes;
- address key DC risks;
- improve regulatory efficiency and effectiveness;
- inform the development of a supervisory approach that is principles-based, outcomes-focused and graduated; and
- allow FSRA and OSFI to collect data on the financial and operational health of DC plans that supports appropriate supervision and appropriate policy development.
Advisory Committee members are expected to provide comments based on their experience to date, identify issues and develop proposals; where appropriate they may be asked to provide sample data or to prepare analyses.
3. Nomination and Appointment of Advisory Committee Members
Appointments will be made through an open application process posted online. Selections will be made jointly by FSRA and OSFI, based in part upon the experience of the individuals who are put forward, the component of the pension sector that they represent and other factors that both regulators may determine to be relevant. This Advisory Committee will have a target membership of 12 – 16 members (not including FSRA, OSFI, Ontario Ministry of Finance and Department of Finance Canada, and Canada Revenue Agency participants). FSRA and OSFI can choose to add or remove any member of the Advisory Committee at any time.
4. Qualifications of Members of the Advisory Committee
Nominees to the Advisory Committee should be experienced members of their respective organization or profession who can represent their organization’s or profession’s position on relevant issues. Organizations cannot have more than one representative as a member of any one Advisory Committee. Candidates to participate on this Advisory Committee must have significant experience dealing with either/or the administration, design, investments and member engagement strategy for DC pension plans and should be representative of one or more of the following pension sector categories:
- Union representatives who have experience with DC plans;
- Representatives of DC plan members, former members and retired members;
- Representatives of employers that sponsor DC plans
- Representatives of multi-employer DC plan administrators;
- Investment professionals that either manage DC plan assets or, provide financial and investment advice to DC plan members;
- Pension lawyers, advisors, actuaries and other specialists in the DC pension field;
- Insurance or other financial companies that provide DC plan administrative services, investment management services and / or sell life annuities.
The Advisory Committee will be Co-Chaired by FSRA’s Executive Vice President, Pensions and OSFI’s Managing Director, Private Pension Plans Division.
One or more representatives of the Ontario Ministry of Finance and Department of Finance Canada, Canada Revenue Agency, will also be invited to join this Advisory Committee.
5. Public Process, Input from Others and Disclosure Issues
The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information provided to the Advisory Committee and to material prepared by or for the Advisory Committee.
The Access to Information Act (R.S.C. 1985, c. A-1), as amended, will also apply to the Advisory Committee and to material prepared by or for the Advisory Committee.
Members of the Advisory Committee are permitted to obtain assistance from co-workers or industry collaborators. However, until the Advisory Committee’s mandate is complete, Advisory Committee members and those that assist them are requested to maintain confidentiality (with the exception of information made public by FSRA or by OSFI). Following completion of the Advisory Committee’s mandate, an Advisory Committee member may communicate his or her views concerning the work of the Advisory Committee.
6. Meetings, Agendas and Deliverables
We expect the Advisory Committee will participate in at least 4 meetings; these are tentatively scheduled to begin in December 2020. If it is determined that a meeting is not required or must be re-scheduled, members will be notified in advance. The Co-Chairs may call additional meetings as required.
Advisory Committee members may be asked to prepare material for consideration by the Advisory Committee.
FSRA and OSFI shall endeavour to provide meeting agendas and related materials at least one week in advance of each regular meeting. FSRA and OSFI shall prepare a summary of each meeting and will distribute it, including any accompanying written submissions, to Advisory Committee members, typically within three weeks following a meeting. Both regulators also intend to publish a high-level summary of the Advisory Committee’s work on FSRA’s and OSFI’s website within approximately 3 weeks of each meeting.
Applications to participate Please email your request to participate on this Advisory Committee to: [email protected]. Your request should briefly indicate your relevant experience and should also indicate which of the listed stakeholder groups you fall into (it can be more than one).
For more information contact: