The rules are changing for capital accumulation plans

When pension plans jumped on the defined contribution bandwagon, no one was expecting the increasingly onerous obligations around member education and information. 2004 will see new guidelines in place
By Florence Holden and Stephen Lewis
|Canadian HR Reporter|Last Updated: 01/27/2004

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n recent months, sponsors of defined contribution or capital accumulation plans (CAPs) have faced increasing member and regulatory scrutiny.

The increased concerns stem from a “perfect storm” of converging global pension issues: negative fund returns, falling interest rates, questions about mutual fund trading practices, corporate scandals, an aging population and an uncertain regulatory environment for both CAPs and for pension governance practices.