The primary focus of the new CAP Guidelines (released May 24th, 2004) is to specifically identify what sponsors (i.e. employers) need to do in order to meet their Fiduciary Responsibility to their members (i.e. employees).

Paul Litner, Partner in the pension and benefits department at Osler, Hoskin & Harcourt LLP

"The guidelines will likely become the standard against which the prudence and due diligence of CAP sponsors are to be measured in any litigation by plan members over the benefits provided under the CAP" "It appears those CAP sponsors, administrators and service providers who ignore the guidelines, do so at their peril"

Hugh Kerr, Senior counsel at Sun Life Financial

"Many plan sponsors are uncomfortable with the breadth of the duties to be assumed and the expertise to carry them out" "All sponsors and service providers should expect to devote considerable resources to their documentation in the months to come"

Click HERE to view Questions Employers should be asking themselves

Click HERE to view your Responsibilities under the new CAP Guidelines

Click HERE to download recent articles written about the CAP Guidelines.