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Last Updated 2/25/2010 1:07:16 PM
Services & Programs - Health Benefits - East - National Pension Plan - Plan Governance Documents

Plan Governance Documents

Trust agreement 

  • outlines the manner in which the plan should be administered
  • describes how trustees are appointed and the length of their term of office

Plan document 

  • summarizes rules and regulations of the plan, such as:
    • terms and conditions
    • rights and obligations
    • legislative requirements

Statement of investment policies and procedures (SIPP) 

  • required by legislation in most jurisdictions
  • sets broad guidelines for investing pension fund assets including:
    • factors influencing investment policy
    • investment objectives of the pension fund
    • asset mix policy (see below)
    • allowable investments and limitations
    • performance monitoring
    • conflicts of interest
    • proxy voting, securities lending, etc.

 Asset mix policy 

  • The asset policy mix is conservative in investment strategy to protect the assets of the plan for the members’ retirement income, while at the same time attempting to achieve a moderate investment return on those assets.
  • Therefore, the plan’s assets are diversified into the following groups, and their respective allowable ranges of percentage of portfolio value are as shown below:
    • cash and cash equivalents (0–35%)
    • fixed income (35–65%)
    • Canadian equity (20–60%)
    • foreign equity (10–30%)