2023-26 CAPSA Strategic Plan Overview

In its ongoing efforts to make the pension regulatory system in Canada more efficient and effective, the Canadian Association of Pension Supervisory Authorities (“CAPSA”) published on May 26th its Strategic Plan for 2023 through 2026 (“Strategic Plan”), setting out the association’s priorities and objectives.

CAPSA’s plan rests on three pillars. The first, focused on regulatory policy, seeks to establish common regulatory expectations for pension plan administration across Canada. That includes offering regulators guidance and setting standards. The second pillar, to do with regulatory supervision, works to strengthen pension plan supervision. Under this mandate, CAPSA is working to assist risk-based supervision and to improve regulatory efficiency and effectiveness. The third pillar encompasses regulatory collaboration. CAPSA aims to enhance its regulatory partnerships and stakeholder engagement. That includes improving stakeholder awareness of pension issues and creating regulatory partnerships in the interests of improving regulatory oversight.

For each of these three strategic priorities, the plan identifies specific initiatives and goals. With respect to common regulatory expectations, CAPSA will be reviewing guidelines in the area of decumulation of defined-contribution account balances. It has committed to establishing a CAPSA committee and terms of reference by the end of 2023. It is also expected that the committee will determine its scope of work and complete its work in 2024. The association will also finalize the review and update of CAPSA Guideline No. 3 – Guidelines for Capital Accumulation Plans, with the goal of publishing an updated Guideline by the end of 2023.

Under the umbrella of pension plan supervision, CAPSA aims to finalize its inclusive Risk Management Guideline. They expect to publish the Guideline for consultation purposes in summer 2023 on the way to finalizing the text in the first quarter of 2024.

As for regulatory partnerships and stakeholder engagement, CAPSA has established four separate initiatives. One being that CAPSA is a member of and engaging with the International Organization of Pension Supervisors (IOPS), participating in the organization’s meetings and projects. It will also be participating in the Joint Forum of Financial Market Regulators to consider issues around Canada’s pension, insurance, and securities sectors. Indeed, CAPSA announced it would be chairing the Joint Forum meeting in 2023. CAPSA and its members also announced that it would also support and engage in other national industry events. And finally, CAPSA will also engage with industry working groups comprised of pension stakeholders in the development of guidance and best practices.

As CAPSA also indicated in its Strategic Plan, its intention is to continue to improve pension oversight across Canada in 2023 and beyond with the input and support of its members.

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2023-26 CAPSA Strategic Plan Overview