FSRA/OSFI Defined Contribution (DC) Pension Plans Technical Advisory Committee - Meeting Summary, February 5, 2021

Meeting Summary

Date: Friday, February 5, 2021
Time: 10:00 a.m. to 1:00 p.m.
Location: Videoconference

This summary sets out the key points discussed at the February 5, 2021 meeting. To find the summary of the previous meeting held December 11, 2020, please follow this link.

Purpose of this Meeting

With the general purpose of the Committee^{Footnote 1} in mind, this meeting focused on the review of the two working groups established at the last meeting: Member Engagement and Plan Design.

Introductory Presentation from the Saskatchewan Public Employees Benefits Agency (PEBA)

The Committee welcomed an introductory presentation from the Associate Deputy Minister of Finance responsible for the Saskatchewan Public Employees Benefits Agency (PEBA). PEBA administers a wide range of pension and benefits plans for public sector employees including the Public Employees Pension Plan (PEPP) – the largest DC pension plan in Canada. This informative presentation provided Committee members background on the development of PEPP and different elements of PEPP that have resulted in strong member satisfaction. This presentation provided insight into the successes of PEPP. It also provided a chance to discuss impactful ways PEPP engages and supports members throughout accumulation and decumulation.

Review of Working Groups Findings

The Committee reviewed the findings from the two working groups established at the last meeting: Member Engagement and Plan Design. While the Committee made no decisions at this time, high-level key findings of the working groups were noted:

Member Engagement: Key findings that emerged from the working group discussions were around:

• Member statements and how to make them more accessible;
• Content of statements, the importance of clear first page content to drive engagement and to consider what might work best for plan membership; and
• Concerns related to uneven playing field when considering all capital accumulation plans.

Plan Design: Key findings that emerged from the working group discussions were around:

• The importance of an appropriate default option and the support of auto-features in the DC plan design;
• The preference in general for guidance versus more rules; and
• How to encourage decumulation support for members and employers within DC plan design.

Future Working Groups

The Committee has established two more working groups, one with the objective of focusing discussions on plan investments and the other on fees. These groups will report to back to the Committee at the next meeting.

Attendance Record