The internal by-laws must include internal controls for ensuring respect for the risk management measures that have been implemented and the various administrative policies. The purpose of the internal controls is to prevent and detect errors, irregularities and fraud. They can include:
- checklists for the various tasks to be carried out
- certificates from service providers attesting to their application of plan provisions, laws and actuarial and accounting standards
- regular verifications by experts (e.g., calculations and procedures for paying benefits)
- an analysis of complaints lodged by plan members.
A helpful example...
The pension committee prepares the statements of benefits for the plan. To ensure they conform to the
Supplemental Pension Plans Act and that the calculations are accurate, a sample statement is verified by the actuary.
For more information about other subjects that the
internal by-laws must cover, refer to:
Another useful link