Fiduciary Boards
In recent decades, the STF has undertaken to provide and administer benefit and pension plans for its members that are supported by separate funds established specifically to carry out the purposes of each plan. Fiduciary boards, appointed by the provincial Executive and supported by the Administrative Staff, oversee each plan. Presently in place are the Saskatchewan Teachers’ Retirement Plan Board of Directors, the STF Portaplan and Members’ Health Plan Board of Trustees and the Income Continuance Plan Board of Trustees.
Each board acts as a fiduciary for the participants of the associated benefit or pension plan. As a fiduciary, board members are responsible to carry out their responsibilities in accordance with the governing documents. Board members must meet standards of conduct broadly described in law as the duty of care, the duty of loyalty, and the duty of obedience.
The duty of care imposes the requirement for board members to act with a certain level of skill or competence when making decisions as a steward of the plan. The duty of loyalty requires board members to act honestly and in good faith in what they reasonably believe to be in the best interests of the plan and to avoid situations where their duty as a board member conflicts with their personal interests. Finally, the duty of obedience requires a governing board member to obey the law and ensure the plan itself complies with the law, governing legislation, and plan rules.
Although the boards regularly provide the provincial Executive with reports and information about issues of interest to STF members, they are directly accountable to the members of the plans they oversee. Similarly, although fiduciary boards may receive and consider suggestions from the members, provincial Executive or Council of the STF regarding possible improvements to the plans, their fiduciary role always requires them to make decisions in the best interests of the plans.
Each board has a minimum of four one-day meetings each year to conduct the business of the plan(s). Board members are also expected to participate in board related educational opportunities. Board members receive no compensation or honorarium for serving on the board. Members of the board are entitled to be reimbursed by the benefit plan for reasonable expenses incurred in the performance of their duties.
Existing board members are eligible for reappointment; therefore, the number of actual vacancies in any given year is relatively small.