Pension governance

Good corporate governance is at the heart of all of CMHC's activities and successes and is echoed in the governance framework for the Pension Plan and its Fund. A sound framework ensures that the ongoing obligations of the Pension Plan can be met, with effective decision-making processes, prudent and efficient management of resources, and regular communication. CMHC's practices in support of these objectives are discussed in the following 4 broad sections on roles and responsibilities, performance measurement, communications and information, and code of conduct and risk management.

Roles and Responsibilities

Roles and responsibilities are an important element of any governance framework. At CMHC, key roles and responsibilities for the governance, management, and operation of the Pension Plan and its Fund are approved by the Board of Directors and reviewed and refined over the years to reflect best practices.

Performance Measurement

Processes are in place to monitor and evaluate the investment performance of the Pension Fund (including performance measures for the overall Fund and individual asset classes), and the performance of decision-makers in the governance process. As well, management of pension fund liability risk is a consideration in CMHC's Enterprise Risk Management policies. Mechanisms are also in place to oversee and ensure compliance with legislative requirements and policies.

Communications and Information

CMHC has established practices to ensure that those involved in the governance of the Pension Plan (the “Plan”) and Pension Fund (the “Fund”) have access to relevant, timely and accurate information. Amongst other matters, the CMHC Board of Directors (the “Board”) receives reports from the Chair of Trustees of the Pension Fund following Trustees' meetings (including a formal report each year on the Pension Fund's performance and Trustees' activities), minutes of Trustees' meetings and the Pension Plan Annual Report. Trustee and Investment Committee meetings are held regularly and have comprehensive agendas, and orientation sessions are provided to new members. CMHC communicates with plan members and Pension Council as appropriate, and holds orientation sessions for Pension Council members. As well, the Pension Plan Annual Report explains the governance process and provides contact information.

Code of Conduct and Risk Management

CMHC has a well-documented and comprehensive Code of Conduct that is comprised of a Code of Values and Ethical Conduct and a Conflict of Interest Policy. The Trustees, the Investment Committee, the Investments and Pension Fund staff, and any person involved in the administration of the Fund are required to adhere to CMHC's Code of Conduct. In keeping with best practices for risk management, the Board has established Enterprise Risk Management policies that include policies specific to the Pension Fund. Internal control frameworks are in place for the Plan and the Fund and they are reviewed periodically. Internal controls are further strengthened with additional monitoring and reporting on compliance matters by the Financial Controls Centre of Excellence (“FCCE”).

CMHC's pension governance structure comprises 6 bodies: the Board of Directors, the Pension Fund Trustees, the Pension Fund Investment Committee, the Pension Fund staff, CMHC's Executive Committee, and the Human Resources Sector (Total Rewards).

CMHC's Board of Directors, which established the Pension Fund, is responsible for approving the Pension Fund's mission, investment philosophy and Risk Management policies applicable to the Pension Fund, including the asset allocation policy. The Board reviews the Pension Fund's performance on a quarterly basis. It also reviews and approves actuarial valuation reports for filing with regulatory authorities, the level of employer and employee contributions to the Fund pursuant to the Pension Plan Rules, any amendments to the Pension Plan Rules, and the Pension Plan Annual Report. It is supported by a Human Resources Committee of the Board, which it created to oversee corporate human resources policies and strategies. The Board has delegated general management and administrative responsibilities for the Fund to the Trustees.

The Pension Fund Trustees set investment policies and objectives within the context of the Risk Management policies established by the Board, and periodically review the asset allocation policy. If changes in the asset allocation policy are considered to be required, the Trustees make the appropriate recommendation to the Board of Directors. In addition, the Trustees establish performance standards for measuring progress toward objectives of the Fund.

The Pension Fund Investment Committee assists the Trustees in the investment management of the Fund. The Committee meets at least 5 times per year to review the Fund's performance, current economic scenarios, projections and their implications for the investment portfolios. It recommends investment policies and strategies to the Trustees and helps monitor the effectiveness of their implementation. The Investment Committee approves the appointment of external investment managers within the authorities approved by the Trustees. The Committee's membership includes external independent investment experts, a member of the Pension Council, and CMHC officers and employees appointed to the Committee.

CMHC's Investments and Pension Fund staff develop and recommend specific investment policies and strategies to the Pension Fund Investment Committee, Trustees, or Board of Directors, as appropriate. Investment managers direct the ongoing operations of the Pension Fund's various asset classes. These operations include: the purchase and sale of investments; the appointment, termination and assessment of external investment managers, all in accordance with approved policies.

Pension Fund administration functions are carried out by the Financial Reporting, Accounting Operations, Financial Controls Centre of Excellence and the Quantitative Analysis and Reporting groups within the Finance Sector. They are responsible for the following activities: cash management, accounting, financial reporting, investment performance measurement and compliance functions, together with the coordination of auditing and actuarial activities needed to support the Plan and Fund's operations and meet legislative requirements.

The President and Chief Executive Officer of CMHC recommends for Board approval, generally with the advice of CMHC’s Executive Committee, changes to pension benefits or the design of the Pension Plan and related amendments to the Pension Plan Rules, the results of actuarial valuations, and the levels of employer and employee contributions to the Pension Fund. The President also recommends changes to the governance structure to the Board for approval, with the advice of CMHC’s Executive Committee, as appropriate.

Human Resources (HR) Sector monitors and oversees the activities and functions of the Pension Plan administration service providers. HR recommends changes to the Pension Plan Rules to the CMHC Executive Committee. HR also creates and maintains pension related communications for Plan members, manages and coordinates all aspects of the Pension Council and reports to Trustees on Pension Council meetings.

Other Pension-related Roles and Responsibilities

The Pension Council consists of elected employee and retired members of the Pension Plan. Its functions are to promote awareness and understanding of the Plan amongst members and receive information on the financial, actuarial and administrative aspects of the Plan annually. Three of its members, 2 employees and 1 pensioner, are elected by the Pension Council to serve as Trustees. As well, another member is appointed by the Chair of Trustees to the Pension Fund Investment Committee.

Additionally, advisory and other supporting roles are played by numerous individuals within CMHC.

CMHC's financial condition and operations over the previous years.

• 2023 (PDF)
• 2022 (PDF)
• 2021 (PDF)
• 2020 (PDF)
• 2019 (PDF)
• 2018 (PDF)
• 2017 (PDF)
• 2016 (PDF)
• 2015 (PDF)
• 2014 (PDF)
• 2013 (PDF)
• 2012 (PDF)
• 2011 (PDF)