Roles & Responsibilities
Board of Trustees
The Board of Trustees is ultimately responsible for the oversight and management of the LPF. This body is the legal Administrator of the LPF and has the fiduciary obligation to ensure that the LPF is administered in the best interests of its members and beneficiaries.
As a result, the Board of Trustees has specific duties and responsibilities to the LPF which can include but is not limited to:
- amending the Plan and approving amendments to the Plan
- approve pension benefits changes
- approve the Administrator’s recommendations for appointment or termination of external investment, actuarial, legal and other pension administration providers
- appoint and conduct periodic reviews of the Administrator
- review all financial, actuarial and administrative aspects of the Plan
- receive as information an annual report on the operation of the Plan and performance of the LPF’s assets
The Administrator, who is appointed by the Board of Trustees, is responsible for the day-to-day operation and administration of the Plan. As such, the Administrator also has a fiduciary responsibility to act in the best interests of the LPF’s members and beneficiaries. As a result, the Administrator has specific duties and responsibilities to the LPF including, but not limited to:
- acting as a liaison between the Board and the LPF and reporting on all aspects of the administration of the pension plan
- providing support and the necessary resources as required to the Board of Trustees in order to assist the Board in its proper operation
- promoting awareness and understanding of the Plan among members, potential members, local unions and other stakeholders
- delegating duties as required to professional consultants, advisors and other pension administration providers
- reviewing the performance and making any necessary recommendations regarding external professional consultants, advisors and other pension administration service providers to the Board as required
- ensuring the effective administration of the Plan in accordance with the Rules & Regulations, applicable provincial pension legislation, and the Federal Income Tax Act
- ensuring the effective provision of pensions to members by providing exceptional but cost-effective service to its members, beneficiaries and local unions
- ensuring the LPF meets its obligations to members by building effective internal management, pension analyst and accounting teams
- ensuring the management and investment of the LPF’s assets are for long-term growth, with acceptable risk levels to meet the liabilities of both present and future pension payments
Professional Advisors / Service Providers
Willis Towers Watson
An investment consultant’s expertise is employed by the Board of Trustees to advise and assist the Board in establishing investment policies and objectives, evaluate types of investment, provide advice on investment benchmarks, and monitor the performance of portfolio managers. The LPF’s investment consultant is Willis Towers Watson (WTW), who provides the Board with objective advice on investments because they neither sell, nor have a stake in the performance of the LPF’s investments.
Koskie Minsky LLP
The LPF’s legal counsel provides advice and consultation to the Board, the Administrator and staff as deemed necessary with respect to pension related issues. Koskie Minsky LLP represent the LPF in all legal matters pertaining to pension benefits.
PBI Actuarial Consultants Ltd.
The Labourers’ Pension Fund of Central and Eastern Canada has engaged PBI Actuarial Consultants Ltd. to represent the LPF as plan actuary. In that capacity, the plan actuary advises the Trustees on all financial matters relating to the LPF. One of their key roles is to perform an actuarial valuation every year which determines the funded position of the Plan, as well as the future contribution rates needed in order to provide member pension benefits at retirement. They review all factors that may affect the Plan’s funding objectives, including estimating what investment returns the LPF will earn, when members will retire, and how long they might receive their pension. They assess the likely financial impact of these uncertain events, sometimes as far as 50 years out into the future. Actuaries are required to perform their work based on professional standards and regulations set by the Canadian Institute of Actuaries and Financial Services Commission of Ontario. Our plan actuary has a responsibility, similar to the Trustees’ fiduciary responsibility, to keep the LPF healthy today and well into the future.
The LPF must employ the services of a chartered accountant (accounting firm) to perform an annual audit of the LPF. We are currently employing the services of Deloitte LLP. Such audits must be performed in accordance with the principles and standards set out in the handbook of the Canadian Institute of Chartered Accountants. In accordance with Ontario’s Pension Benefits Regulations, a fund with at least $3 million in assets is required to file an annual auditor’s report with respect to its financial statements.
The LPF has retained Northern Trust to carry out its custodial duties. A custodian is a financial institution that is primarily responsible for holding the customer’s assets/securities for safekeeping, minimizing the risk of their theft or loss. The Custodian is also responsible for arranging settlements of purchase and sale transactions, collecting and receiving dividends and interest payments, tax support and foreign exchange transactions.