Employee Benefits in Canada

This article looks at the shift from DB to DC retirement plans, the evolving legislation supporting DC retirement plans and considerations for plan sponsors offering these plans to their employees.

This article identifies points to consider when designing and administering a plan in the current legislative framework and explores the general principles underlying the design of a pension plan.

Even with the best intentions, trustees can face significant liability if accused of a wrongful act or breach of fiduciary duty. Fiduciary liability insurance safeguards both the plan's assets and the personal assets of trustees in cases of mismanagement, negligence or errors.

Why is responsible investing important? It's an approach that considers environmental, social, and governance factors, focusing on the long-term health and stability of the market. It recognizes that sustainable returns rely on stable and well-governed systems.

A fiduciary relationship exists when, considering all the circumstances, one person could reasonably expect the other to act in their best interests. As such, the fiduciary has a duty to act loyally and prioritize the best interests of the person who trusts in them.

Given the complexity of modern-day trust funds, and pension funds, the large number of beneficiaries involved, and the legal framework under which trustees and trust funds must operate, professional advice becomes critical.

Like any other class of trustees, plan trustees are subject to close scrutiny by trust beneficiaries, the general public, regulators and the courts when it comes to spending and accounting for trust fund money.