Overview
Generally, pension committees are plan administrators. They are responsible for managing the pension fund and the day-to-day administration of pension plans.
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The role of a pension committee can be compared to that of the board of directors of a business: the committee must make strategic decisions about the plan and its administration as well as perform supervisory and risk-control activities. |
Responsibilities of a plan administrator
A pension plan administrator (either a pension committee member or the employer in the case of a pension plan with fewer than 26 plan members and beneficiaries) are responsible for:
- Moneys paid into the pension fund, which make up the plan assets
- Deciding how to invest pension plan assets, that is, making investment decisions
- Paying benefits and administration costs
- Respecting the requirements set out in laws and the provisions specific to the plan.
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The administrator must see to the application of the rules that the plan text provides for and ensure that laws are respected. |
When the employer acts as administrator
The employer can act as plan administrator if the plan has fewer than 26 members and beneficiaries and if the plan allows it. The employer is then subject to the same obligations as pension committees and assumes the same responsibilities toward plan members and beneficiaries.
Simplified pension plans (SIPPs)
- Financial institutions administer SIPPs.
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There is no pension committee as such. However, if 50 members or more work for the same employer, a retirement information committee can be set up, if the majority of those members request one. The committee acts as liaison between those members and the financial institution to give members easy access to information about the plan. |