Applicable laws, federal regulator and agents of the Plan
The laws that apply to the Plan are meant to protect Plan members' rights and the benefits they have earned, to set the rules applicable to income tax deductions, and to establish appropriate funding controls.
Pension Benefits Standards Act, 1985 (PBSA)
The Pension Benefits Standards Act, 1985 (PBSA) is the federal statute that regulates pension benefits, administration, and funding of pension plans that provide pension benefits to employees of federally-regulated organizations (for example, railways, airlines, shipping companies, telecommunications, banks, and certain organizations that are for the general advantage of Canada).
Income Tax Act (ITA)
The Income Tax Act (ITA) and its regulations set the maximum limits for registered pension plans. The ITA also provides for tax-sheltered savings vehicles to encourage Canadians to save for their retirement. The law places restrictions on the amount of yearly earnings that Canadians can accumulate as tax-deferred pension income and the amount that can be transferred to other pension plans or to locked-in registered retirement savings plans (RRSP).
The Office of the Superintendent of Financial Institutions (OSFI) is the pension regulator appointed by the federal government to monitor and ensure that plans subject to the PBSA consistently comply with the requirements of the law and its regulations.
The Canada Revenue Agency administers the Income Tax Act (ITA) and its regulations to ensure that pension plans are duly registered and administered in compliance with the requirements of the legislation.
Agents are the individuals or organizations with the fiduciary responsibility of acting on behalf of the Plan and its members. Their responsibilities include activities related to the management of the Plan's investment funds and the administration of the Plan. The following are the Plan's agents:
External Investment Managers - Defined benefit (DB) component
The Pension Committee carefully selects, monitors and, as required, changes external investment managers who are charged with executing the investment mandates of the DB component of the Plan. The mandates of these investment managers are described in the Statement of Investment Policies and Procedures.
External Investment Managers - Defined contribution (DC) component, Group Retirement Savings Plan (GRSP), Voluntary Savings Plan (VSP)
The Pension Committee carefully selects, monitors and, as required, changes external investment managers as part of the investment fund line-up offered to DC, GRSP and VSP members. The investment structure along with the investment beliefs are described in the Statement of Investment Policies and Procedures for the DC Component and the GRSP (commonly called Capital Accumulation Plans or CAP).
Pension Fund Custodian - DB component
The Board, on the recommendation of Pension Services, carefully selects and retains the best firm to hold the responsibility of the pension fund custodian for the DB component. The custodian is responsible for activities such as
- receiving contributions from the Plan sponsor and members of the DB component,
- maintaining invested assets,
- keeping accounts for all investment activities, and
- overseeing the Plan's pension benefit payments to retired members and survivors.
Pension Services carefully selects the Recordkeeper responsible for the DC component of the Plan, the GRSP and VSP and informs the Pension Committee. Pension Services monitors and, as required, changes the Recordkeeper, whose responsibilities are to
- receive and administer contributions from the Plan sponsor and members of the DC component, the GRSP and the VSP,
- allocate contributions to investment funds as directed by members,
- administer the DC component, the GRSP and VSP on behalf of Canada Post,
- provide members with tools and support member communications, and
- monitor and select the investment managers that will be part of its general investment platform offered to plan sponsors.
The Statement of Investment Policies and Procedures for the CAP sets out the mandate of the Recordkeeper with regards to the investment options offered to members of the DC component, the GRSP and the VSP.
Each year, the Board, on the recommendation of the Audit Committee, appoints the Plan's external auditor who is an independent accounting firm licensed to conduct financial audits. The annual Financial Statements of the Plan are approved by the Board and published on this website.
The Pension Committee reports to the Board on the selection and retention of the services of an actuary who must be a Fellow of the Canadian Institute of Actuaries. As part of these services, the actuary produces the annual actuarial valuation for the DB component.