1 — BACKGROUND
The Governance Account is an account from which governance related expenses may be paid that are associated with The Pension Plan for Faculty, Librarians and Senior Administrative Officers of ¹û¶³´«Ãº University (the "Plan"). This account was established upon the recommendation of the Pension Committee, through an initial annual charge to Plan members of 0.05% of pooled fund assets. The establishment of this account reflects the importance of the governance function and the value that this represents to the Plan members.
2 — ELIGIBLE EXPENSES
In general, an expense must have been incurred for the benefit of Plan members, and be associated with Plan benefits, to be eligible to be paid from the Governance Account. Expenses that are incurred for the benefit of any other party, or for any other purpose, are not eligible to be paid from the Governance Account.
Examples of expenses that may be eligible to be paid from the Governance Account include (but are not limited to) expenses related to the following:
- Education of Pension Committee members that relates directly to their duties as Pension Committee members;
- Consulting related to Plan compliance, Plan design, and investment policy
- Performance monitoring and search services related to investment management and record-keeping; and
- Member communication and education that is related to the Plan benefits and options.
Examples of expenses that would not he eligible to be paid from the Governance Account include (but are not limited to) expenses related to the following:
- Retirement counselling provided to members as part of an out-placement package;
- Communication and education that is provided to retirees that are no longer members of the Plan; and
- Governance of a non-pension benefit including any group LIF even if it is established as a program that members may transfer pension funds to upon retirement.
It is recognised that some expenses may be eligible to be partially paid from the Governance Account. An example of such an expense could be that associated with the preparation of comprehensive booklets or statements that include non-pension benefits. In such a case the portion of the expense that may be paid from the Governance Account must fairly reflect the "pension portion".
Notwithstanding the comments in this section, the Governance Account will not be used to pay for government filing fees, professional fees associated with drafting compliance-required plan amendments, and University staff and internal administrative costs.
3 — CONTROL
Expenses shall not be paid from the Governance Account except upon the recommendation of the Pension Committee and the approval of the University.
The 0.05% annual charge to pooled fund assets that is directed to the Governance Account can be decreased or stopped at any time by either the Pension Committee or the University. No increase in the annual charge shall occur except upon the recommendation of the Pension Committee and the approval of the University.
The account will be managed so that the balance will not exceed 0.05% of pooled fund assets.
The financial activities of the Committee will be included in the annual report prepared and distributed in accordance with the Committee's terms of reference.