Day 4 – Service providers, best practices

Excerpt from the OMERS 2020 Annual Report (click on the image to enlarge):

Do any of these performance objectives for the compensation of the CEO of OMERS Administration Corporation seem offside? (Google the job description if you’re unsure!)
What are the dangers of having this/these performance objective(s) for the CEO?
What might CUPE trustees do about this?

The facts:

ABC Inc. is the day-to-day administrative agent of the CUPE Town Superannuation & Benefits Plan
ABC Inc. does not have authority over any plan terms or governance structures
ABC Inc. is accountable to the Administrative Board, as governed by contract
ABC Inc. arguably owes a fiduciary obligation to plan members
In September 2020, the CEO of ABC Inc. presented a proposed a major re-write of the plan’s Funding Policy to the Sponsors Board. The proposed re-write included imposing a contribution cap on this DB plan, cutting the accrual rate, and revising the determination of conditional indexing

What issues regarding ABC Inc.’s standard of care might the union(s) want to raise?
Why might pension plan executives be biased toward employer interests?
What might CUPE trustees do about this?

Lesa MacDonald is a member of the Pension and Employee Benefits Group at Koskie Minsky. Click here for her bio.
Download Lesa’s presentation.