A matter of voice : Pension papers

THE STUDY IN BRIEF THE AUTHOR OF The security of pension plan assets is of crucial importance to Canadians in the private THIS ISSUE and public sectors. [...] On one hand, the “prudent person” In Canada, pension plans are regulated federally or standard, a general principle, requires the pension provincially, depending on whether the employer is plan administrator to invest the pension funds regulated by the federal or provincial/territorial using the care, diligence and skill of a person of government. [...] Schedule III pension plan shall not, directly or indirectly, invest of the regulations of the federal Pension Benefits the monies of the plan in the securities of a Standards Act, 1985, set out a series of quantitative corporation to which are attached more than 30 restrictions on investments that can be made by percent of the votes that may be cast to elect the pension funds. [...] The 30 percent rule The rule requires pension funds to construct currently prevents this convergence of interests elaborate financial, legal and organizational between directors, managers and shareholders, in structures, which allow them to own more than 30 the context of all equity investments in public and percent of the equity of a company without private companies, but particularly in the cont [...] The second However, principles-based regulation remains a rationale for the rule was a desire to maintain a superior alternative for the very reason that it general separation between the financial and allows individual pension funds the flexibility to commercial spheres of economic activity.11 respond to the credit crisis in ways that are most Pension funds, which are responsible for aligned with