On March 1, 2011, CAPSA released for comment a draft Pension Plan Prudent Investment Practices Guideline and its companion document the Self-Assessment Questionnaire on Prudent Investment Practices, as well as the draft Pension Plan Funding Policy Guideline. The draft guidelines build on CAPSA Guideline No. 4 (see above) and the CAPSA consultation paper on the Prudence Standard and the Roles of the Plan Sponsor and Plan Administrator in Pension Plan Funding and Investment.
The draft guideline on prudent investment practices and the self-assessment questionnaire are intended to provide guidance to plan administrators on how to demonstrate the application of prudence to the investment of pension plan assets. The draft funding policy guideline is intended to provide guidance on the development and adoption of funding policies. The draft guidelines are part of CAPSA’s strategic initiative to promote consistency in the governance of pension funds and funding. CAPSA has invited comments on the draft guidelines by June 1, 2011.