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GP 20 - Pension Compliance Committee (PCC) Charter

Policy Number: GP 20 Effective Date: June 2023
Last Review Date: May 2023 Next Review Date: May 2024
Review Frequency: Annually Related Supporting Documents:
  1. Source of Authority

    The Pension Compliance Committee (PCC) is established in accordance with the Employment Pension Plans Act (EPPA), the Employment Pension Plans Regulation (EPPR) and common law.

  2. Establishment (Council Delegation)

    The PCC is delegated authority from Council via Bylaw 3.

  3. PCC Composition and Roles

    3.1. The PCC is comprised of the following College of Registered Nurses of Alberta (CRNA) and Alberta Registered Nurses Educational Trust (ARNET) employee members:

    1. Chief Operating Officer (COO)
    2. Senior Financial Officer and Executive Director, Planning and Performance Measurement
    3. Director, Human Resources
    4. Manager, Human Resources
    5. ARNET Executive Director

    3.2. Council may, at its discretion, appoint a Council member as a member of the PCC.

    3.3. The Chief Operating Officer (COO) shall serve as PCC Chair.

    3.4. The PCC Chair is the direct liaison between the PCC and Council for all PCC-related matters.

    3.5. The PCC Chair is responsible for the addition or removal of CRNA and ARNET employee members based on changes to employment in defined committee composition roles.

  4. PCC Working Group

    4.1. The PCC is authorized to establish a working group to support the PCC in carrying out its pension plan administrator role.

    4.2. The PCC Working Group members require the necessary skills and education to perform all pension administration functions to comply with legislation and regulation.

    4.3. The PCC Working Group is comprised of the following CRNA employees:

    1. Senior Financial Officer and Executive Director, Planning and Performance Measurement
    2. Director, Human Resources
    3. Manager, Human Resources
    4. Payroll and Benefits Specialist
    5. Human Resources Advisor

    4.4. The Director, Human Resources, serves as the PCC Working Group Chair.

  5. Term

    5.1. The term of office for CRNA and ARNET employee members is ongoing, based on employment in the roles that comprise committee membership.

    5.2. The term of office for an appointed Council member is the term of appointment approved by Council.

  6. Recommendation Making

    6.1. The Chair is responsible for facilitating the discussion leading to informed PCC recommendations, forming agendas, putting to vote all recommendations brought forward and ensuring a process for documentation is in place.

    6.2. The PCC will operate under the following recommendation processes:

    6.2.1. Recommendations will be based on pension legislation, compliance, and guidance from expert external agents.

    6.2.2. Recommendations will guide pension policies and pension administration and ensure priorities and outcomes are achievable.

    6.2.3. The PCC will be timely and efficient in making recommendations that are based on legislation and best practices within the pension industry, while focusing on the primary purpose of the pension plan.

  7. Quorum and Voting

    7.1. Quorum is 50% of the membership and must include the Chair.

    7.2. Quorum must be present to put a recommendation forward for a vote.

    7.3. Recommendations are determined when greater than 50% of the voting membership reaches consensus.

  8. Meetings

    8.1. The PCC will meet a minimum of four (4) times per year to review pension administration and compliance.

    8.2. The PCC will meet a minimum of two (2) times per year with the auditors, including the pre- and post-audit meeting.

    8.3. The PCC will meet a minimum of one (1) time per year with the fund holder investment manager to review/discuss investment performance and one (1) time per year to review/discuss the stewardship report.

    8.4. The PCC will meet a minimum of one (1) time per year with the actuary to discuss the annual pension governance compliance report and pension compliance calendar.

    8.5. The PCC Working Group will meet at least eight (8) times per year to perform their body of work throughout the year.

  9. Duties and Powers

    The PCC administers the pension plan of the College and Association of Registered Nurses of Alberta (CARNA) operating as the College of Registered Nurses of Alberta (CRNA) and participating employer, the Alberta Registered Nurses Educational Trust (ARNET). The PCC assists Council meet its legislated fiduciary responsibilities as the pension plan sponsor and as plan Administrator. The PCC reviews and makes recommendations to Council as appropriate but is not delegated the authority to make decisions on behalf of Council. All categories below comprise the pension administration duties administered by the PCC.

    9.1. Education

    Council and the PCC must have the necessary skills and knowledge needed to properly administer the plan. All PCC members are required to demonstrate they have continuously increased their pension-related knowledge, skills and education to ensure informed and knowledgeable decisions are made on matters related to the plan.

    To support educational requirements of PCC members, CRNA:

    1. Acknowledges governance costs to conduct an annual pension education session.
    2. Acknowledges employees’ professional development costs due to the mandatory pension education activities, so employees can demonstrate they have attained pension-related knowledge, skills and education.

    9.2. Pension plan administration

    9.2.1. Review and recommend changes, when necessary, to the pension plan governance policy.

    9.2.2. Review and recommend amendments, when necessary, to the pension plan (including text) to meet legislated changes.

    9.2.3. Review and verify amendments to and/or reinstatements of the pension plan’s text.

    9.2.4. Ensure pension plan administration activities are completed in compliance with EPPA, EPPR and common law.

    9.2.5. Review the pension plan’s annual reports in accordance with the pension plan compliance calendar.

    9.2.6. Review the audited pension fund financial statements, including the note disclosure.

    9.2.7. Solicit submissions from external agents for presentation and review.

    9.2.8. Present recommended proposals to Council, for approval, to retain such external agents.

    9.2.9. At least once every three years, review the performance of external agents based on service contracts and established standards.

    9.3. Investments

    9.3.1. Review and recommend changes, when necessary, to the pension plan statement of investment policies and procedures (SIPP).

    9.3.2. Conduct an in-depth review of the asset mix every five years.

    9.3.3. Review the semi-annual investment manager report conducted by Fund Holder investment manager and recommend further discussion when required.

    9.3.4. Recommend changes to the Fund Holder investment manager when necessary.

    9.3.5. Review and inform Council on investment performance annually as part of the pension plan assessment and compliance report.

    9.4. Funding

    9.4.1. Review and recommend changes, when necessary, to the pension plan funding policy.

    9.4.2. Review the actuarial method and assumptions to ensure compliance with the pension plan funding policy.

    9.4.3. Review and recommend to Council, when financially appropriate, supplementary contributions to achieve the funding policy targeted solvency ratios as determined by the actuary.

    9.5. Actuarial matters

    9.5.1. Review and recommend changes, when necessary, to the pension plan actuarial assumptions and methodologies.

    9.5.2. Present the actuarial evaluation report to Council for their review and approval.

    9.5.3. Upon Council’s approval of the actuarial valuation report, the chair of the PCC will advise the actuary to file the actuarial valuation report with the appropriate regulatory authorities.

    9.5.4. Recommend changes to the actuary when necessary.

    9.6. Compliance

    Evaluate the administration of the pension plan through an annual pension plan assessment and compliance report to Council in annually, which will include the pension plan compliance calendar.

  10. Reporting

    10.1. The PCC is accountable to the College Council.

    10.2. The PCC will conduct an annual review of the pension plan and at least one (1) time per year a review of the investment performance.

    10.3. The PCC will present the findings and recommendations of the above reviews to Council.

    10.4. The PCC will act as a liaison with the external auditors during the annual pension fund audit — reviewing the scope of the audit, reviewing the final audit reports, and presenting the findings to Council.