In making this decision, Ministers expressed confidence in the Board's directors and management and their plans to enhance investment returns and manage risks for CPP plan members through some active management of equity investments. Ministers also agreed to provide provinces with an option to pre-pay some or all of their borrowings from the CPP at market prices, at no cost to the plan. This measure will assist provinces who are paying down their debts in an era of budget surpluses. Investment Board Ministers also agreed to strengthen the governance of the CPP Investment Board by balancing continuity and renewal in membership of the Board. Appointments of directors to the Board will be limited to a maximum of three terms.
Terms are normally of three years' duration.
The Chair can serve a fourth term as a director. The Nominating Committee's mandate will be expanded to include a review of the re-appointment of directors to the board in addition to its current duties to advise on new appointments. Actuarial Reports on the CPP Ministers endorsed plans to establish regular peer reviews of future actuarial reports on the CPP, and to consult regularly with experts on assumptions to be used in actuarial reports. A policy for supplying actuarial information and services on the CPP will be released for comment.