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© Copyright 2000 Rogers Media. The following article first appeared in the July 2001 edition of
BENEFITS CANADA magazine.
INDUSTRY
Joint Forum report needs clearer guidelines, industry says
By Deanna Rosolen
To contribute, call (416) 596-5998, fax (416) 596-5071 or e-mail drosolen@rmpublishing.com
The chair of the Joint Forum Working Committee on Capital Accumulation Plans says despite the low number of
submissions thus far, she has tapped into the industry's thoughts on the Joint Forum of Financial Market
Regulators' report.
Sherallyn Miller, who is also chair of the Canadian Association of Pension Supervisory Authorities (CAPSA)
and superintendent of pensions of B.C., says concerns she's heard at meetings regarding the Proposed
Regulatory Principles for Capital Accumulation Plans are that it is unclear who is responsible for
providing investment advice, and that the report lacks a safe harbour. "Clearly we're going to have to do
some work," says Miller.
At an Association of Canadian Pension Management (ACPM)-- Ontario Council meeting last month, one industry
expert warned that a new set of regulations could mean the end of defined contribution (DC) plans. Mary
DePaoli, vice-president, national sales and marketing, Sun Life Financial in Toronto, told the audience
that "should cost, liability, risk and complexity increase, employers could stop the sponsorship of [DC]
plans."
DePaoli explains that employers could fold their DC plans if the benefits of low-cost group arrangements
are cancelled out by added costs and a significantly increased regulatory burden. Currently, she says, plan
members ultimately gain the benefit of not having their retirement dollars eroded by high fees. "It has
been well documented that a 1% in fee savings over time results in 20% higher assets at retirement."
The industry also took issue with the fact the report makes little mention of plan members'
responsibilities. As Priscilla Healy, member of the ACPM/Pension Investment Association of Canada Task
Force on DC plans, said "we all need help with our financial planning--is that the responsibility of the
employer?" According to the regulators, sponsors are indeed regulated, while plan members aren't, which
explains the focus on the plan sponsor in the report.
The industry also made it known that the absence of a safe harbour increases their concerns. Healy said
that while the report has higher requirements than the Employee Retirement and Income Security Act in the
U.S., it offers no protection. John Dalton, a participant and president and managing consultant of Tardis
Benefit Services Inc. in Toronto, also pointed out that while costs are quantifiable, liability isn't.
"Even if we take precautions now, we can't know the legal climate five to 10 years from now," he says.
The last day to submit written comments to the Joint Forum is July 31.
Breathing easier in Hamilton, Ont.
Twelve employers in the Hamilton, Ont. region (who form the Hamilton Employers Regional Health
Partnership), Schering Canada Inc., GlaxoSmithKline and Connex Health Consulting recently teamed up to
launch a respiratory awareness campaign.
Through a series of clinics (which ended in June) the campaign targetted approximately 50,000 employees and
retirees and 120,000 dependents with information on asthma, chronic obstructive pulmonary disease (COPD)
and smoking. The campaign included five clinics held in local malls and seven that took place on employers'
sites.
Denise Balch, owner of Burlington, Ont.-based Connex, says "education is great, but what we really need to
do is get down to the patient level, to get to those people who aren't compliant with their medications and
need questions answered."
The Regional Municipality of Niagara in Thorold, Ont. was one participant in the campaign. Dave Scott,
corporate health and safety co-ordinator, says the clinic raised awareness. "There's a number of benefits
of having healthier employees. There's also the long-term view that by doing some work on your problem now,
you won't have serious problems in the future."
Balch says one way the clinics identified potential respiratory diseases was through the use of a
spirometry machine, which allowed employees to gauge their respiratory health.
That was one of the features Paul McLenachan liked about the clinics. He's manager of pensions and benefits
at Dofasco Inc. in Hamilton, where the average age of employees is 40 and they're predominantly male--a
typical group for developing COPD, says Balch. But McLenachan says no rise in respiratory cases prompted
the addition of the clinic, it was just an opportunity "for our employees to learn something and [have] an
opportunity to respond."
If a concern was raised, McLenachan says a health professional referred the individual to a physician.
That's the key to a successful health promotion program, he adds, noting the clinic gave employees "the
opportunity for behavioural change."
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