RPA 2

(Updated July 2024)

A disciplined approach to the investment of plan assets is a critical component of retirement and savings plan management whether the investment risk rests with the plan sponsor or the plan member. Decision making is context driven – investment performance objectives are set to reflect the type of vehicle used and its unique funding requirements. With the plan’s performance objectives as a guide, and with awareness of which classes of assets can best facilitate their attainment, investments and investment managers can be selected. Once selected, they can be monitored and evaluated.

RPA 2 presents investment theory that is transferable to management of assets in any type of employer-sponsored retirement plan whether pension or non-pension, including plans such as group tax free savings accounts and employee savings plans which are mostly unrestricted by government regulations and contribution limits. Investment environment, financial markets and instruments, risk and return, asset allocation, performance measurement and portfolio management techniques are addressed. The practical application of this theory is identified through examination of investments specific legislation and regulations, roles and responsibilities of key stakeholders, management of issues in each step of the investment cycle, reporting and communication practices, and industry tools and guidelines that support sound plan investment management. Text-based reading is supported with regulatory guidance and industry-based practice guidelines.