Pension plan governance
Pension plan governance is a set of rules governing the relationship between the plan administrator, employer, plan members and beneficiaries and service providers. The rules set out the rights and responsibilities of each of the above. They define the objectives to attain and the means for attaining them that must be implemented.
To facilitate sound pension plan administration, the administrator must set up governance rules that will guide it in carrying out its duties and allow it to prove it has met its obligations. They will assist the administrator in taking appropriate action in various situations.
They rules can be found in the internal by-laws. When the plan is administered by a pension committee, they also cover the committee's operating rules. Rules governing the makeup of the pension committee are provided for in the plan text.
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Instalment 1 of the collection Administering a pension plan well