CMHC's pension governance structure comprises 6 bodies: the Board of Directors, the Pension Fund Trustees, the Pension Fund Investment Committee, the Pension Fund staff, CMHC's Executive Committee, and the Human Resources Sector (Total Rewards).
CMHC's Board of Directors, which established the Pension Fund, is responsible for approving the Pension Fund's mission, investment philosophy and Risk Management policies applicable to the Pension Fund, including the asset allocation policy. The Board reviews the Pension Fund's performance on a quarterly basis. It also reviews and approves actuarial valuation reports for filing with regulatory authorities, the level of employer and employee contributions to the Fund pursuant to the Pension Plan Rules, any amendments to the Pension Plan Rules, and the Pension Plan Annual Report. It is supported by a Human Resources Committee of the Board, which it created to oversee corporate human resources policies and strategies. The Board has delegated general management and administrative responsibilities for the Fund to the Trustees.
The Pension Fund Trustees set investment policies and objectives within the context of the Risk Management policies established by the Board, and periodically review the asset allocation policy. If changes in the asset allocation policy are considered to be required, the Trustees make the appropriate recommendation to the Board of Directors. In addition, the Trustees establish performance standards for measuring progress toward objectives of the Fund.
The Pension Fund Investment Committee assists the Trustees in the investment management of the Fund. The Committee meets at least 5 times per year to review the Fund's performance, current economic scenarios, projections and their implications for the investment portfolios. It recommends investment policies and strategies to the Trustees and helps monitor the effectiveness of their implementation. The Investment Committee approves the appointment of external investment managers within the authorities approved by the Trustees. The Committee's membership includes external independent investment experts, a member of the Pension Council, and CMHC officers and employees appointed to the Committee.
CMHC's Investments and Pension Fund staff develop and recommend specific investment policies and strategies to the Pension Fund Investment Committee, Trustees, or Board of Directors, as appropriate. Investment managers direct the ongoing operations of the Pension Fund's various asset classes. These operations include: the purchase and sale of investments; the appointment, termination and assessment of external investment managers, all in accordance with approved policies.
Pension Fund administration functions are carried out by the Financial Reporting, Accounting Operations, Financial Controls Centre of Excellence and the Quantitative Analysis and Reporting groups within the Finance Sector. They are responsible for the following activities: cash management, accounting, financial reporting, investment performance measurement and compliance functions, together with the coordination of auditing and actuarial activities needed to support the Plan and Fund's operations and meet legislative requirements.
The President and Chief Executive Officer of CMHC recommends for Board approval, generally with the advice of CMHC’s Executive Committee, changes to pension benefits or the design of the Pension Plan and related amendments to the Pension Plan Rules, the results of actuarial valuations, and the levels of employer and employee contributions to the Pension Fund. The President also recommends changes to the governance structure to the Board for approval, with the advice of CMHC’s Executive Committee, as appropriate.
Human Resources (HR) Sector monitors and oversees the activities and functions of the Pension Plan administration service providers. HR recommends changes to the Pension Plan Rules to the CMHC Executive Committee. HR also creates and maintains pension related communications for Plan members, manages and coordinates all aspects of the Pension Council and reports to Trustees on Pension Council meetings.
Other Pension-related Roles and Responsibilities
The Pension Council consists of elected employee and retired members of the Pension Plan. Its functions are to promote awareness and understanding of the Plan amongst members and receive information on the financial, actuarial and administrative aspects of the Plan annually. Three of its members, 2 employees and 1 pensioner, are elected by the Pension Council to serve as Trustees. As well, another member is appointed by the Chair of Trustees to the Pension Fund Investment Committee.
Additionally, advisory and other supporting roles are played by numerous individuals within CMHC.