Joint Governance: A Best Practice

Pensions are an important benefit offered by LAPP employers as part of overall employee compensation. It's always been important to members, who pay every month toward their future retirement, that LAPP is well governed, now and into the future.

Throughout the Canadian pension landscape, joint governance is regarded as good governance. It's recognized as best practice, ensuring defined benefit pension plans are sustainable and Plan sponsors are equally represented.

The decisions and risks of the Plan are shared by the Plan members and employers who pay for it. Benefits provided under the Plan are subject to discussion and agreement between employee and employer sponsors.

Benefits of LAPP’s joint governance model include:

• Clear roles and responsibilities;
• Sponsors responsible for pension benefits;
• Shared trusteeship of Plan assets;
• Equal representation of employee and employer groups;
• Improved accountability; and
• Protections for Plan members affected by any future restructuring.

The Sponsor Board, responsible for decisions about Plan benefits and setting contribution rates, is appointed by the Plan sponsors. LAPP Corporation, which includes a Corporate Board that is also appointed by Plan sponsors, is now the administrator and trustee of LAPP.