Learning more from history

What might the Board of NBPSPP learn from:

Dey (2000)
A walk through the history of good governance development brings us to the Dey Report, circa 2000, in Canada. In the post of a couple of days ago, this report was referenced as a follow-up to Cadbury. However. there are a few specifics which more progressive organizations add to their good governance guidelines. 

• Stewardship policies or how the Board recognizes that they manage our money for our best interests. OMERs, for example has such a statement.
• A hallmark of good stewardship is the existence of a strategic plan , outlining the social, technological, economic and especially political changes which may affect the pension landscape. Transparency is critical. Do the retirees know what the Board knows. Might the retirees be able to comment on the issues raised in such a plan. What evidence is there that certain key stakeholders have been consulted? (those key stakeholders are likely the principle unions represented on the Board. ) Do the other non represented retirees see the world the same way that the unions de?
• A topic raised throughout these blogs has been risk management. Dey encouraged Boards to take a specific look at risk. He came up short on suggesting s risk committee. None the less, there is a specific requirement that the Auditor comment on any risk provisions that the Board has taken and what material impacts these might have. Dey did recommend that these risks be reviewed with the retirees at least at the annual meeting. Later reports suggest that as a part of the preparation for the annual meeting, Independent Board members review these in "tours" or special meetings with key stakeholders up to 9 months before the annual meeting. 
• Dey recommended effective succession planning for the Board. This pre-supposes that there is a nominating process and that this process is linked to the strategic planning process. Further, as a part of this process, there is a skills matrix which guides director recruitment. 
• Dey focused on transparency in communication with stakeholders. The Board of NBPSPP actually works at this, and to an extent is quite good. The annual meeting is streamed live and a video is left up for retirees to watch. Questions are taken from the floor. There are quarterly newsletters to the retirees. And, in 2018, there will be a web site. The next step is to have a clear social (and other) media policy. 
• The integrity of internal controls at critical. Dey's report came before the Enron fiasco but after the Anderson debacle. None the less, Pension plans cannot be too careful. CAPSA has excellent guidance on this. A segment of the Auditor's report should focus on this..but doesn't. 

If we were to grade the NBPSPP Board on the Dey recommendations, it would receive 1/7. So, based on these two reports, both really at the cusp of good governance accountability, the NBPSPP Board has work to do...as do we , the retirees.