The UBC Faculty Pension Plan (FPP) is required to be compliant with provincial and federal legislation, including the B.C. Pension Benefits Standards Act and the Canada Income Tax Act. In addition, the UBC FPP follows guidelines provided by the Canadian Association of Pension Supervisory Authorities (CAPSA). The CAPSA is a national association of pension regulators who help facilitate an efficient and effective pension regulatory system in Canada.
As part of their mandate, the CAPSA guidelines support continuous development and improvement of industry practices, and help pension plans ensure that their administrative processes and practices are well-aligned with these practices. While not formally legislated, it is generally expected that registered pension plans should operate in accordance with these guidelines.
In September 2024, an updated CAPSA Guideline No. 3: Guidelines for Capital Accumulation Plans was released, replacing the previous guideline published in 2004. The UBC FPP is a defined contribution plan, which is a type of capital accumulation plan. As such, this guideline not only outlines the responsibilities of the UBC FPP and its service providers, but it also provides detailed information on the responsibilities of Plan members.
As well, the new CAPSA Guideline No. 10: Guideline for Risk Management for Plan Administrators was introduced, providing consolidated approaches to pension risk management on topics, such as cyber security, investment governance and ESG (Environmental, Social and Governance) practices. As described in this guideline, the UBC FPP will be expected to develop a robust risk register to oversee the management of risks in the Plan and to confirm the necessary controls and risk mitigation factors are currently in place to manage these risks. The development of this risk register will be a priority for the UBC FPP in 2025 and we anticipate completion by early 2026.
The UBC FPP Board and management are reviewing both updated guidelines to ensure that the Plan continues to align with industry best practices, and they will implement process recommendations as required.