Welcome to FSCO’s webinar on the management of inquiries and complaints from plan beneficiaries.

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Good morning.

My name is Brian Mills and I am the Acting Deputy Superintendent of Pensions. I’m pleased to welcome you to our webinar on The Management of Inquiries and Complaints from Plan Beneficiaries. As mentioned during our Fall 2010 webinar, FSCO recognizes the importance of good governance practices in maintaining compliance with the legislation and the delivery of benefits to plan beneficiaries. As a result, we will continue to hold webinars for our pension stakeholders. Survey results from our Fall webinar showed that attendees were very interested in more webinars. Today’s webinar, The Management of Inquiries and Complaints from Plan Beneficiaries, is one of topics suggested in the survey. It is also a topic that has been identified as one of interest for plan administrators through our Inquiries and Complaints Review Project. In preparing for future webinars, we will continue to review all of your suggestions. I therefore encourage you to complete the survey at the end of this session. Our two speakers will now deliver the presentation. I hope you find this webinar informative and valuable. Thank you for your time.

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Good morning, my name is Pauline Alcendor and my co-presenter is Joey Shiner. We will be hosting today’s webinar on The Management of Inquiries and Complaints from Plan Beneficiaries.

This webinar has been designed to help plan administrators understand their roles and responsibilities under the Pension Benefits Act, and to provide guidance on how they may effectively manage inquiries and complaints from plan beneficiaries. The Pension Benefits Act governs registered pension plans in Ontario.

Although this webinar has been designed for plan administrators, it will also be relevant to you if you’re responsible for responding to plan beneficiaries’ questions or complaints on behalf of the plan administrator.

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Before we get started there are a few things you need to note:

• Your minimum screen resolution should be 1024 x 768. • During this webinar, you can ask questions by sending us an email at pensionwebinar@fsco.gov.on.ca. • This webinar is comprised of a presentation that is divided into five sections. After each section, we will ask you a self-assessment question and give you a few seconds to choose an answer from a list. Then we will provide the correct answer. •After the presentation, we will have a question and answer segment where we will go over some questions that we have prepared in advance. Please note that we will post answers to any questions we receive during the webinar on FSCO’s website within the next few weeks. •When the webinar has concluded, a short survey will appear on your screen. We would really appreciate your feedback, as it will help us prepare future webinars.

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We will now go over the information that will be covered during this webinar:

• In the first section of the webinar, we will review the standard of care imposed on plan administrators under the Pension Benefits Act and regulations, and the administrator’s ability to hire service providers.

• For the second section, we will review the roles and responsibilities of all parties who may have a role to play in the review, response and/or resolution of plan beneficiaries’ inquiries and complaints.

• In the third section, we will discuss how plan administrators may effectively manage inquiries and complaints from plan beneficiaries.

• For the fourth section, we will go over the inquiries and complaints that are most frequently handled by FSCO staff.

• Finally, for the fifth section, we will discuss all relevant resources that are available on FSCO’s website, which may assist plan administrators in managing inquiries and complaints.

• At the end of our presentation, we will go over some questions and answers that we have prepared in advance.

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We will now cover the first section of the presentation that relates to legislative requirements.

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Every pension plan must have a plan administrator. The plan administrator is the person, group, body or entity that is ultimately responsible for the oversight, management and administration of the pension plan, and the administration and investment of the pension fund.

If you are the plan administrator, you may hire, delegate or appoint others to perform some or all of your administrative functions. However, you are ultimately responsible for all plan-related matters.

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Who can be the plan administrator? The answer is found in section 8 of the Pension Benefits Act.

The plan administrator may be: • the employer or employers that established the pension plan (which is usually the case for single-employer pension plans); • a pension committee that is composed of joint employer and member representatives (or all member representatives); • an insurance company (if all the pension benefits under the pension plan are guaranteed by the insurance company); • a board of trustees (for multi-employer pension plans where at least half of the trustees must be member representatives); • a corporation , board, agency or commission that is authorized by an Act of the Legislature for the administration of the pension plan; • a person who is appointed by the Superintendent of Financial Services; or • any other person or entity as set out in the regulations.

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You now know what the Pension Benefits Act says about who can be the plan administrator. So, let’s go over who actually assumes the plan administrator’s role under the different types of plans.

For single-employer pension plans, the employer is the plan administrator and ultimate responsibility for plan administration typically rests with the Board of Directors or the owner of an unincorporated employer.

For multi-employer pension plans, ultimate responsibility rests with the Board of Trustees or the Pension Committee, as applicable.

For jointly-sponsored pension plans, it’s the responsibility of the Joint Board of Trustees, a Joint Pension Committee, or a group that has been authorized by an Act of the Legislature (depending on whether the jointly-sponsored pension plan is a multi-employer or single-employer type pension plan).

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It is important not to confuse the plan administrator with any other persons or companies that perform the day-to-day administration of the pension plan – such as, companies that specialize in third-party pension administration.

Under the Pension Benefits Act, a third-party pension administrator cannot be the plan administrator. They are considered to be the plan administrator’s agents or service providers who are hired to perform delegated duties, such as responding to questions or complaints from plan beneficiaries.

However, the insurance company may be the plan administrator if it provides and guarantees all the pension benefits under the plan. This is typically the case for small defined contribution pension plans, where the employer’s only involvement is making contributions to the pension fund.

In the next few slides, we’ll talk about why a plan administrator may need to delegate its responsibilities to others.

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Now that we’ve established who is, and who can be the plan administrator, we’re ready to go over the plan administrator’s responsibilities to plan beneficiaries.

Under section 22 of the Pension Benefits Act, the plan administrator has a duty of care and owes fiduciary obligations to plan beneficiaries.

For purposes of this presentation, when we say “plan beneficiaries”, we’re referring to individuals who have benefits or other entitlements under a registered pension plan. They include: • active members who are either currently employed, or who have not terminated their membership in the plan; • retired members who are currently receiving a pension from the plan; • former members who have a deferred entitlement under the plan; • active/former/retired members’ surviving or former spouses, dependents, estates; and

• any other individuals who have an entitlement under the plan.

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In accordance with section 22 of the Pension Benefits Act, the administrator has a duty of care and owes fiduciary duties to plan beneficiaries. As a fiduciary, the plan administrator is expected to: • observe high standards of integrity and honesty; • act in good faith and in the best interests of plan beneficiaries; and

• be fair and impartial in the treatment of plan beneficiaries.

This means that when the plan administrator responds to plan beneficiaries’ inquiries and complaints, the administrator must remember its fiduciary obligations to the beneficiaries. For example, the plan administrator must interpret the terms of the pension plan in a fair and impartial manner.

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Since this webinar is about inquiries and complaints, we should clarify at this point, the distinction between inquiries and complaints as it relates to this presentation.

When we’re talking about inquiries from plan beneficiaries, we’re referring to any plan-related questions, or any questions about legislative requirements that apply to registered pension plans. For example, a member may have a question about his or her annual pension statement or about designating a beneficiary for purposes of survivor benefits.

On the other hand, complaints from plan beneficiaries may arise when they believe that their issues were handled improperly. For example, a member may complain about the delay in receiving his or her annual pension statement, or there may be a disagreement about his or her pension entitlement amount.

Sometimes, a plan beneficiary’s inquiry may turn into a complaint if the individual is not satisfied with the plan administrator’s response, or in cases where the plan administrator does not provide any response.

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As a fiduciary, what is expected of the plan administrator when responding to plan beneficiaries’ inquiries and complaints?

First, the plan administrator must ensure that all responses comply with the Pension Benefits Act and regulations.

Second, all responses must be consistent with the terms of the plan (taking into consideration that the terms must be interpreted in a fair and impartial manner).

Third, all responses should also be consistent with FSCO’s pension policies, which set out FSCO’s position and/or clarification about the requirements under the Pension Benefits Act and regulations.

And, depending on the nature or type of inquiry or complaint, the plan administrator may also need to be familiar with other legislation.

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In addition to understanding the requirements of the Pension Benefits Act and regulations, the plan administrator may also need to be familiar with requirements under other laws. This includes:

• the pension standards legislation of other jurisdictions, if the plan also has members in other provinces or territories; • the federal Income Tax Act; • the Employment Standards Act; • the Labour Relations Act; • the Family Law Act; • the Workplace Safety and Insurance Act; and

• applicable privacy legislation.

Please note that this is not a complete list. We’ve just highlighted the main legislation that may have an impact on pension plan administration. Depending on the nature of the plan beneficiary’s issue, FSCO will give consideration to these and other legislation.

If you are the plan administrator, you may be feeling a little overwhelmed with the wealth of knowledge that you’re expected to possess. You can delegate to persons who have the required expertise.

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Where it is reasonable and prudent to do so, the plan administrator may delegate to others, and/or employ agents to carry out some or all of its responsibilities related to the day-to-day administration of the pension plan and pension fund. This includes the responsibility of responding to plan beneficiaries’ inquiries and complaints. You may do this by delegating this responsibility to in-house employees or employing a third-party service provider (such as the custodian of the pension fund, a consulting firm, or a company that specializes in third party administration).

Please note that employees or agents of the plan administrator are subject to the same standard of care as the plan administrator.

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It is important for delegations to be made in writing, so that everyone’s roles and responsibilities are clearly set out.

Section 22 of the Pension Benefits Act requires the plan administrator to personally select all delegates. The plan administrator is held accountable for the delegates that it selects. Therefore, when the delegates are chosen to perform administrative functions, the plan administrator must be satisfied that they have the appropriate knowledge and skills to perform their tasks. For example, most defined benefit pension plans have a team of experts, such as lawyers and actuaries, to assume certain aspects of plan management and administration.

The delegates and/or agents should be made aware that they are also held to the same standard of care as the plan administrator as specified in section 22(8) of the Pension Benefits Act.

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The plan administrator should also ensure that any privacy concerns and limitations on using plan beneficiaries’ information for reasons other than for benefit administration are addressed with its delegates.

The administrator must continue to supervise the activities of its delegates in a reasonable and prudent manner. This can be done, for example, by requiring delegates to provide regular reports containing detailed information on the activities concerning the pension plan and pension fund. The plan administrator should also request regular updates on any issues, concerns, or complaints from plan beneficiaries.

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The plan administrator and all its delegates should together possess the knowledge and skills that are required to administer the pension plan and pension fund in accordance with legislated requirements, and to fulfill various legislative obligations.

Note that the plan administrator’s delegates are held to the same standard of care that is imposed on the plan administrator under section 22 of the Pension Benefits Act.

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Since we’ve concluded the first section of this webinar, we would like to ask you to answer the question that is now on your screen. When you’re responding to a plan beneficiary’s inquiry, what should your response comply with?

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The correct answer is E (all of the above). The plan administrator’s response should comply with the Pension Benefits Act and regulations, the terms of the pension plan, FSCO’s policies and any other applicable legislation.

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We have now reached the second section of the presentation. This section will cover the roles and responsibilities of all parties who may have a role to play in the review, response and/or resolution of plan beneficiaries’ inquiries and complaints.

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There are several stakeholders who are involved, or who may be involved, in determining a response to plan beneficiaries’ inquiries or complaints. In the next few slides we will discuss the roles and responsibilities of:

• plan administrators and their delegated employees or service providers; • employers; • collective bargaining agents; • plan beneficiaries; and

• FSCO.

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Let’s start with the role of plan administrators and their delegates, in regards to their responsibilities for responding to plan beneficiaries’ inquiries and complaints.

Plan beneficiaries who have plan-specific questions or concerns should be directed to first contact their plan administrator, or to those whom the plan administrator delegated this responsibility. Some of these questions may be about:

• termination and retirement benefit amounts; • the pension formula and calculations; • contribution requirements; • pension statements, such as annual statement of benefits or termination statements; • options that must be provided to members (e.g., at termination and retirement); • spousal and beneficiary designations; and • how to access plan records.

Please note that this is not an exhaustive list. The roles and responsibilities that the plan administrator assigns to its delegates should be clearly made in writing so that the delegates may be held accountable for their actions.

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It is important for plan administrators to be aware of plan beneficiaries’ issues, even when inquiries and complaints are handled by others. This is because plan administrators need to: •be informed about all issues affecting the pension plan; •ensure that plan-related issues are being addressed by the delegates; and, •ensure consistent information is being provided to plan beneficiaries.

Therefore, plan administrators should establish procedures to ensure that all plan-related issues are brought to their attention by their delegates.

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Plan administrators should respond to plan beneficiaries’ inquiries or complaints within a reasonable period of time. There is no legislated timeframe in which plan administrators must provide a response. However, FSCO expects plan administrators to address majority of inquiries or complaints within 30 days of receiving them. This timeframe is consistent with other procedural timeframes in the Pension Benefits Act and regulations such as, the timeframe for responding to plan beneficiaries’ requests to have access to their plan records.

FSCO understands that there may be circumstances where a response cannot be provided within 30 days (for example, when an issue must be presented to the board of trustees at their next board meeting, which only takes place on a quarterly basis). In such cases, plan beneficiaries should be notified of the reason for the delay and an anticipated date for when a response will be provided.

By keeping the channels of communications open, plan administrators are less likely to receive additional complaints from plan beneficiaries, as they will know that their complaints are not being ignored.

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In accordance with section 23 of the Pension Benefits Act, employers that participate in the pension plan must provide the plan administrator with any information that is required for purposes of complying with the Pension Benefits Act and regulations, and the terms of the pension plan. This could be information about an employee’s date of hire, date of birth, salary and spousal information.

Employers are responsible for verifying the accuracy of the information that is provided to the plan administrator. They should also notify the plan administrator of any changes to an individual’s records, or changes to the provisions of the pension plan, which, for example, may result from a new collective bargaining agreement.

The plan administrator must be satisfied with the accuracy and completeness of the information that is received from its participating employers.

As an aside, participating employers in a multi-employer pension plan may make inquiries or complaints to the plan administrator. In addition to being required to provide information to the plan administrator, the participating employer also has the right to receive information from the plan administrator. Therefore, the plan administrator should also have a process for responding to these inquiries and complaints.

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Collective bargaining agents will play a different role in the handling of plan beneficiaries’ inquiries and complaints. The collective bargaining agents may be the plan sponsor, representatives for their union members, or they may appoint members to the board of trustees.

The pension plan may form a part of the collective bargaining agreement, or plan beneficiaries may have union representation – even though the pension plan itself may not be collectively bargained.

In some cases, the collective bargaining agreement may require all member inquiries or complaints to be channelled through their union representative. In other cases, only significant or difficult cases would need to be brought to the union representative’s attention.

The collective bargaining agent’s involvement on behalf of its members is generally dictated by the terms set out in the collective bargaining agreement and the extent to which the union chooses to become involved in specific complaints.

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In accordance with section 45 of the Pension Benefits Act, plan beneficiaries are responsible for providing the plan administrator with information that is needed to calculate and pay their pension benefits or pension. This may include providing certified copies of birth or marriage certificates, court orders or domestic contracts, beneficiary designation information, etc.

When plan beneficiaries submit their inquiries or complaints to the plan administrator, they should do so in the form that is specified by the plan administrator (for example, making written requests for access to plan records). Plan beneficiaries are also responsible for providing the plan administrator with relevant documentation that supports their inquiry or complaint.

Even in cases where plan beneficiaries may have little or no documentation, the plan administrator cannot ignore their complaints. For example, an individual complaining that he or she did not receive payment from the plan may not have any supporting evidence. However, the plan administrator would still need to verify whether or not this individual was entitled to receive any payment from the plan. If the individual is entitled to payment, the administrator should verify whether or not payment was actually made.

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FSCO’s role is to ensure that pension plans and pension funds are being administered in compliance with the Pension Benefits Act and regulations, and the terms of the pension plan. These responsibilities are undertaken by staff in FSCO’s Pension Division.

FSCO’s role also includes providing guidance in how to administer the pension plan and pension fund in accordance with the Pension Benefits Act and regulations by issuing policies, questions and answers, as well as holding webinars such as this one.

Please note that plan beneficiaries have a right to make a submission to FSCO if their complaint cannot be resolved by the plan administrator. FSCO reviews each complaint on a case-by-case basis. Submissions by both the plan beneficiary and plan administrator will be considered before FSCO makes a determination about whether the administrator’s actions are in compliance with legislated and plan-specific requirements. More information about inquiries and complaints that are handled by FSCO will be addressed in the fourth section of this presentation.

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The Financial Services Tribunal is an independent, adjudicative body that holds hearings in respect of the Superintendent’s intended decisions.

Pension stakeholders, such as plan administrators or plan members, may request a hearing before the Financial Services Tribunal if they are affected by and disagree with the Superintendent’s intended decision.

For additional information about the Financial Services Tribunal, including the Form 1, visit the Tribunal’s website at the address shown on this slide. The Form 1 must be completed to request a hearing before the Tribunal.

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Now that we have finished the second section of the webinar, we would like to ask you to answer a question. What is FSCO’s recommended timeframe for providing a response to plan beneficiaries’ inquiries?

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The correct answer is B (30 days). For majority of inquiries or complaints, FSCO expects plan administrators to provide a response within 30 days of receiving the written inquiry or complaint from plan beneficiaries.

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We will now move on to the third section of this presentation. We will go over how plan administrators may effectively manage inquiries and complaints from plan beneficiaries.

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It may be helpful for plan administrators to develop and implement a written policy or procedural document on how to effectively manage inquiries and complaints from plan beneficiaries. One of the main benefits of having this document in place is that everyone’s roles and responsibilities will be clarified.

Although pension legislation does not require plan administrators to develop such a document, FSCO recommends that administrators develop this document because it may: • result in consistent and efficient management of inquiries and complaints; • improve communications with plan beneficiaries (e.g., by having procedures in place that keep plan beneficiaries informed about the plan’s complaint resolution process); and • enable the plan administrators to identify areas in the plan administration processes that are missing or may require improvement (e.g., if the plan administrator receives numerous inquiries or complaints about the same issue, the administrator may wish to review the communications related to this area to address the issues that are being raised).

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If you are the plan administrator, and would like to develop a policy that explains how plan beneficiaries’ inquiries and complaints should be handled, you need to think about what type of information should be included in this document. Just keep in mind that you don’t have to create a long formal document. For example, if you rarely receive inquiries or complaints from plan beneficiaries, your policy may only be a few pages long. What’s important is that the policy provides clear instructions on how to manage inquiries and complaints from start to finish, and clarify the roles and responsibilities of those who are responsible for this task.

When you are deciding on what type of information should be included in your policy, you need to consider the number, frequency and complexities of inquiries and complaints that you receive from plan beneficiaries, as well as whether this function is handled internally or by external service providers.

It is really up to plan administrators to determine the content for the policy based on what will work best for their pension plan.

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What type of information should be included in the policy? You should think about including information that addresses the responsibilities of those individuals who handle inquiries and complaints (including identifying who they are).

You should also address the processes and procedures from start to finish (e.g., how you’ll acknowledge inquiries and complaints that are received, what type of information should be included in the response, if the member’s collective bargaining agent needs to be contacted, how to deal with conflicts of interest, and when issues should be escalated to senior staff or any other appropriate governance oversight body).

You should also consider the communication requirements (e.g., information about the inquiries and complaints process that needs to be communicated to plan beneficiaries, and how that information will be communicated to them), as well as skills and knowledge requirements (e.g., training and education requirements for individuals who are responsible for this job).

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You should also think about information that addresses legislative requirements and other instructional information. (This may include general information on what the Pension Benefits Act and regulations say about plan beneficiaries’ rights and obligations under the pension plan, understanding plan provisions, etc.)

You may want to include information on performance standards for monitoring the performance of those individuals (whether internal or external) to whom the task is delegated.

Finally, if tasks have been delegated to a third-party service provider, you may need to set out specific responsibilities and reporting requirements, and other performance standards.

Note that these are just some of the items that should be addressed in your policy. You may need to include additional items in your policy that will specifically address the needs of your pension plan. You may also decide that it may be appropriate to include all the information under one document or under separate documents.

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In addition to any legislated requirements, the plan administrator should make certain information readily available to plan beneficiaries. This includes information about:

• who plan beneficiaries should contact if they have any plan-related inquiries or complaints (you may be surprised to know that FSCO receives calls from plan beneficiaries because they don’t know who their plan administrator is, or how they can contact their administrator); • how they should submit their inquiries or complaints (e.g., do they need to be made in writing?); • when a response will be provided to them; • how and where they may view plan records that pertain to them; and

• the plan’s internal dispute resolution process (if there is one in place).

They should know that they have a right to make a submission to FSCO (e.g., in cases where they are unable to resolve their complaints with their plan administrator).

Plan administrators should think about the best method of communicating such information to their plan beneficiaries.

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How can plan administrators communicate information about the inquiries and complaints process to plan beneficiaries?

You can consider including this information in any of the statements, notices or records that are required to be provided to plan beneficiaries. Or, the information can be made available on the plan sponsor’s website, newsletters, bulletin boards or other convenient locations.

Having open communications with plan beneficiaries may help build positive relationships with them, and alleviate some of the confusion and frustration that plan beneficiaries face when they do not know who they should contact to have their questions or concerns about their pension plan addressed.

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This is a screenshot of FSCO’s Guideline for Developing a Written Policy on Managing Inquiries and Complaints from Plan Beneficiaries. FSCO created this guideline to assist plan administrators in developing a policy on managing inquiries and complaints from plan beneficiaries. As we have mentioned in an earlier slide, plan administrators must determine what type of content is necessary and appropriate for their own pension plan.

If the plan administrator’s agent or service provider has such a policy in place, the existing policy may be adopted if the administrator is satisfied that the policy meets the needs of the pension plan and complies with legislative requirements.

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Since we have concluded the third section of this webinar, we would like to ask you to answer the question that is now on your screen. When you are developing a policy on managing inquiries and complaints, what information should be considered?

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The correct answer is E (all of the above). All of these types of information should be included in your written policy.

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We will now move on to the fourth section of the presentation: Inquiries and Complaints Handled by FSCO.

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Plan beneficiaries often come to FSCO for a review of their issues in cases where:

•they have already attempted to resolve their issues with the plan administrator and they either disagree or are unsatisfied with the plan administrator’s response; •the plan administrator is not providing a response; •they have concerns about contacting their plan administrator for fear of retribution; •they have questions about their rights under the Pension Benefits Act and regulations; or •they wish to report any misconduct or breach of the Pension Benefits Act and regulations by the plan administrator (and, FSCO will investigate such allegations).

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FSCO reviews complaints from plan beneficiaries on a case-by-case basis. If the complaint falls within FSCO’s authority under the Pension Benefits Act and regulations, FSCO will conduct a detailed review of the matter.

Submissions by both the plan beneficiary and plan administrator will be considered before FSCO determines whether the plan administrator’s actions are in compliance with the Pension Benefits Act and regulations, the terms of the pension plan, and FSCO’s published policies. Once FSCO’s review is complete, FSCO will issue a letter that provides an explanation of how it arrived at the conclusion, as well as the next steps that must be taken by the affected parties (if any are required).

Please note: Due to privacy requirements, before FSCO staff contacts the plan administrator regarding a plan beneficiary’s complaint, they first obtain the plan beneficiary’s written authorization for FSCO staff to contact the administrator on their behalf. Depending on the nature of the complaint or the concerns of the complainant, FSCO staff may contact the plan administrator without disclosing the name of the complainant. These situations may involve non-compliance with the Pension Benefits Act.

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Here are some statistics that may be of interest to you.

During the 2010-2011 fiscal year, FSCO’s Pension Division received 38,425 inquiries. Of these 38,425 inquiries, approximately 27,000 related to financial hardship unlocking. Of the remaining 11,425 inquiries, 8,212 were general inquiries and 3,213 were plan-specific inquiries.

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We’ll now go over the top five general inquiries that FSCO received during its 2010 -2011 fiscal year.

At #5, FSCO received questions about the rights of plan members under the Pension Benefits Act (e.g., questions about members’ vesting rights and eligibility requirements for membership in the plan). At #4, FSCO received questions related to lost or missing pension entitlements. At #3, FSCO received questions related to required filings, such as how to obtain duplicate copies of annual information returns. At #2, FSCO received a lot of questions about locked-in account rules, including rules that pertain to locked-in retirement accounts (or LIRAs), old and new life income funds and locked-in retirement income funds. And finally at #1 - FSCO received the most questions related to the interpretation of the Pension Benefits Act and regulations.

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During the 2010-2011 fiscal year, 37 per cent of plan-specific inquiries came from plan members. These are questions that FSCO received from plan beneficiaries that could have been directed to plan administrators.

34 per cent of complaints that were handled by FSCO related to plan members’ issues with their plan administrators. These included complaints that required FSCO’s involvement, some of which were escalated to the issuance of an order by the Superintendent of Financial Services. Note that an “order” is a written directive from the Superintendent that requires a plan administrator to either take an action, or refrain from taking an action, in respect of the pension plan.

Examples of complaints that were reviewed by FSCO staff include: issues with a member’s benefit calculations; incorrect information on the annual pension statements; delays in receiving termination statements; etc.

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Now that we have finished the fourth section of the webinar, we would like to ask you to answer the question that is now on your screen. Please select the answer that completes the sentence: When FSCO reviews a plan beneficiary’s complaint regarding his/her benefit entitlement, it will consider:

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The correct answer is B. FSCO will review submissions from both parties before a determination is made about whether the plan administrator’s action is in compliance with legislated requirements.

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We will now cover the fifth and final section of this presentation. This section will cover the information that is available on FSCO’s website, which may help plan administrators better manage their inquiries and complaints.

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To learn more about managing inquiries and complaints, we encourage you to visit FSCO’s website. FSCO has a site dedicated specifically for plan administrators under “Information for Pension Plan Administrators”, which provides a link to various resources.

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One of the links that is available on “Information for Pension Plan Administrators” site is “General Information About Inquiries and Complaints for Pension Plan Beneficiaries”. This site provides general information to plan beneficiaries about:

• how to access plan records; • who to contact for pension inquiries and complaints; • how to contact the plan administrator; • how to send inquiries or complaints to FSCO; • an overview of the plan administrator’s responsibilities; and

• FSCO’s role and responsibilities relating to pension plans.

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This is a screenshot of FSCO’s policy on “Administrator’s Management of Inquiries and Complaints from Plan Beneficiaries”. This policy is available on FSCO’s website under “Active Pension Policies”.

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This is the guideline that we have mentioned in an earlier slide. It is available under the “Information for Pension Plan Administrators” site.

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To get copies of the Pension Benefits Act and regulations, visit Service Ontario’s e-laws website. You can access the Act through a link on FSCO’s website under “Statutes and Regulations”.

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For further information about governance matters, you can also refer to the Canadian Association of Pension Supervisory Authorities’ (or CAPSA’s) Guideline No. 4 – Pension Plan Governance Guidelines and Self-Assessment Questionnaire.

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Since we have reached the end of this presentation, we would like to summarize what we have discussed earlier.

It is a good governance practice to develop a formal policy or procedure that addresses how plan beneficiaries’ inquiries and complaints are to be managed. Having such a document in place may help contribute towards consistent and efficient management of plan beneficiaries’ inquiries and complaints.

If there is a process in place that requires delegates to report back to the plan administrator on contentious issues, the plan administrator can stay on top of such issues before they get out of control.

Finally, effectively communicating with plan beneficiaries about the plan’s inquiries and complaints process may help to cut down on the number of unnecessary inquiries, such as “Who should I contact if I have a question about my pension plan?” and “Why am I not receiving a response to my question?”. Taking the time to communicate with plan beneficiaries, and informing them of the process will benefit all parties who have a role to play in responding to and reviewing their inquiries and complaints.

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We will now go over some common questions and answers.

We will be providing answers to all the questions that we receive from the participants of this webinar. These questions and answers will be posted on our website.

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FAQs for the Webinar on the Management of Inquiries and Complaints from Plan Beneficiaries

Q1: Why do I have to develop a policy on managing inquiries and complaints from plan beneficiaries? Is it required by legislation or is it FSCO’s recommendation?

A1: Under the Pension Benefits Act, plan administrators are not required to develop a policy on managing inquiries and complaints. However, under the Act, the administrator has a standard of care and owes fiduciary duties to plan beneficiaries. A document that sets out roles and responsibilities of all involved and provides clear instructions on how inquiries and complaints are to be handled is useful. It is especially useful to persons with responsibilities to plan beneficiaries. There are other benefits for developing this document that were mentioned during the webinar, such as ensuring consistency in the handling of inquiries and complaints.

Q2: Does FSCO have a template that I can use to help me develop the policy on managing inquiries and complaints?

A2: No, FSCO does not have a template for the policy. However, as discussed in the webinar, FSCO recently developed a Guideline for Developing a Written Policy on Managing Inquiries and Complaints that may help you to determine the type of information to include in your policy. The content of the policy for each pension plan will be different depending on the number, frequency and complexity of inquiries and complaints that are generally handled by the plan administrator.

Q3: What is the deadline for developing a policy on managing inquiries and complaints?

A3: There is no specific deadline for developing the policy. However, FSCO recommends plan administrators establish a timeframe to develop a policy or to review an existing policy. This is a good governance practice that benefits both plan administrators and plan beneficiaries.

Q4: I understand that FSCO would like plan administrators to respond to plan members’ inquiries or complaints within 30 days. This is not a realistic timeframe because some complaints will have to be reviewed by the board members, and they meet only four times a year.

A4: Plan administrators should provide a response within a reasonable period of time. FSCO expects the majority of inquiries and complaints to be addressed by plan administrators within 30 days (a length of time consistent with other procedural timeframes in the Act). If you are unable to provide a response within 30 days, you should advise the member that you are unable to provide him or her with a response within this period, the reason, and when the member can expect to receive your response. In this way, the member is aware that his or her inquiry or complaint is not being ignored and you may minimize further complaints from this individual.

Q5: I am the plan administrator of a small pension plan. I do not receive very many inquiries or complaints from plan beneficiaries so it is easy for me to manage this task. Am I still required to develop this policy document?

A5: It is good governance practice to document your processes in writing even if you do not receive a lot of inquiries or complaints from plan beneficiaries. Regardless of the size or type of the pension plan, all plan administrators should consider developing such a document. The length or formality of the policy document is not the issue. In your case, the policy document may be only a page or two long. What matters is that the document provides clear instructions on how you manage your inquiries and complaints from start to finish, and the roles and responsibilities of those who are responsible for this task. If you have such a document in place, it will also help others who may have to assume this task while you are away, for example, on vacation.

Q6: We have a plan member that complains to us about the same issue, over and over again. Do we still have to continue responding to this member?

A6: Yes, you still need to respond to this member. If the member has not done so already, you can suggest that he or she put the complaint in writing, and provide him or her with a written response. If the facts of the member’s complaints are the same, you may refer the member to your previous correspondence on this case. You can also inform the member that he or she may contact FSCO to request a review of his or her issue if the member is not satisfied with the response that you have provided. FSCO will need to see, in writing, the member’s complaint and your response to this individual before FSCO can conduct a thorough review of the case.

Q7: What type of information are plan administrators permitted to obtain from plan beneficiaries?

A7: Plan administrators are permitted to obtain any information that is required to calculate the member’s pension or pension benefit, such as spousal information, proof of birth, proof of marriage or common law relationship.

Thank you for participating in today’s webinar. Please note that we’ll develop answers to any questions we received by e-mail, and post the answers on FSCO’s website within the next few weeks.

We also plan to send an e-mail blast to everyone in the next few weeks. It will include links to the webinar recording, the presentation slides, FAQs, policy and guideline, so that you can review them again in the future.

Please remember to complete the survey that will appear on your screen momentarily.

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