CAPSA has revised its CAP Guideline effective September 9, 2024. The revised Guideline reinforces and expands upon the original 2004 Guideline and addresses emerging trends affecting CAPs. New areas of focus in the revised Guideline include:
- A focus on member outcomes in the context of the CAP’s defined objectives
- Expectations for a CAP governance framework
- Automatic and default features
- Expectations for member education and communicating with CAP members
CAP sponsors should review the new Guideline and revise their CAP’s policies and practices as necessary to comply with the Guideline. CAPSA suggests that pension plans should consider how to implement the Guideline effective September 9, 2024, taking into account the legal requirements, size and sophistication of the plan. Where there are any IT system or process changes resulting from the new Guideline, they should be implemented by January 1, 2026.
