OSPC: News
2. Greater Transparency
Increasing accountability, expanding reporting requirements and ensuring input from pension plan members and retirees in the management of plans provide increased transparency at key stages.
Required under the new legislation:
- A defined benefit pension plan shows a surplus when accumulated funds (assets) are more than what is needed to cover pension costs (liabilities). A new provision allows members and employers to agree on how to distribute the surplus.
- For most plans, with 50 members or more, employees and retirees will have representatives on pension committees (now required by law). This will ensure plan members have greater input into pension plan administration.
- If you are a member of a self-directed defined contribution (money purchase plans) your contributions and your employer's contributions are deposited to your pension account and you can self-direct the investments in your pension account. The plan administrator must now give your enough investment options so you can make informed investment decisions.
