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The Association of Canadian Pension Management is encouraging the Canadian Association of Pension Supervisory Authorities to prioritize decumulation in its draft 2023-2026 strategic plan.

In an open letter to the CAPSA, the ACPM recommended the strategic plan address all potential decumulation income sources beyond defined contribution pension assets, noting that, while a focus on these assets is important, DC decumulation strategies don’t occur in a vacuum.

Read: ACPM cautioning CAPSA on draft revisions to CAP guidelines

“A significant number of Canadians hold their entire workplace pensions in capital accumulation plans and, as these individuals retire, solutions are needed to provide them with adequate and sustainable income for the rest of their lives,” wrote Ric Marrero, chief executive officer of the ACPM, in the letter. “There is significant value to the industry for [the] CAPSA to address some of these matters, including, as identified, a policy framework for variable payment life annuities.”

In addition, the ACPM said it’s encouraged to see ongoing engagement among CAPSA members to support coordinated and harmonized practices where possible.

“Some areas where further harmonization would be beneficial relates to discharge provisions related to annuity purchases and the methodology for calculating [provision for adverse deviation]. Having member regulators coordinate on these items would improve benefit security for all Canadians.”

Read: ACPM calling on feds, CAP sponsors to increase focus on decumulation