Pension Plan Prudent Investment Practices Guideline

By Canadian Association of Pension Supervisory Authorities · 2011 · Guideline No. 6

A guideline, dated 15 November 2011, intended to help pension plan administrators demonstrate the application of prudence to the investment of plan assets. It says prudence is assessed principally by the process through which investment strategies are developed, adopted, implemented and monitored in relation to the plan portfolio as a whole, and that it is relevant to defined benefit, defined contribution, combined, jointly sponsored and multi-employer pension plans.

On the syllabus

Exam RET-101 — RET101-108-25: CAPSA, Guideline No. 6, Pension Plan Prudent Investment Practices Guideline; Outcome 1c.

Context for the Guideline

Prudent Investment Practices
Self-Assessment Questionnaire
Role of the Plan Administrator
Role of the Plan Sponsor
Dual Role of the Employer as Plan Administrator and Plan Sponsor
Communication between Plan Administrator and Plan Sponsor
Communication with Plan Beneficiaries
Prudent Investment Practices Guideline

Prudent Investment Principles

Prudent Person Rule
Prudent Delegation
Investment Objectives
Risk Tolerances
Investment Policy/Statement of Investment Policies & Procedures
Asset Allocation
Investment Selection and Due Diligence
Monitoring
Documenting Processes, Policies and Procedures

Sources

Guideline No. 6: Pension Plan Prudent Investment Practices Guideline (CAPSA, November 15, 2011, PDF) — the document: its date, contents, the context section and the headings of the principles. The title page does not name the issuer; the document refers throughout to CAPSA's guidelines and the copy is held on CAPSA's site
RET 101 Syllabus, Nov 2026/Mar 2027/Jul 2027 (SOA) — the code, the guideline's number and title, and the outcome
RET 101 Course Strategy Guide, Nov 2026/Mar 2027/Jul 2027 (SOA) — where the reading sits among the investment readings