CAP Guidelines

When establishing and administering group retirement plans, it is important to take into consideration the Capital Accumulation Plan (CAP) guidelines.  

A Capital Accumulation Plan is defined as a tax-assisted investment or savings plan that permits plan members to make investment decisions among two or more options offered within the plan.  These include:

The CAP guidelines specify the rights and responsibilities of plan sponsors (Employer), service provider (Advisor), and plan members (Employees).  The main focus of the CAP guidelines is to ensure that plan members are provided with enough education and investment selection to make informed responsible investment decisions with their retirement funds.  As such, the employer is responsible for:

Furthermore, the plan sponsor is obliged to determine if they have the requisite knowledge and skills to carry out the responsibilities set out in the CAP guidelines and all relevant legal requirements.  If the sponsor does not have the necessary expertise, the CAP guidelines recommend using an advisor. 

In working with Thomas O’Neill & Associates, we will ensure that your Capital Accumulation Plan adheres to these guidelines by providing educational seminars, communication materials, and one-on-one investment counselling for plan members.  Furthermore, we will work with you to select an appropriate range of investment funds, and review your plan regularly to make sure it remains compliant.