Employment Benefits

Current Status Next Steps

Third Invitation to Comment is being developed.

Third quarter of 2018 – Third Invitation to Comment to be approved.

BACKGROUND

Identified as the top priority in PSAB’s 2014 Project Priority Survey, the Board has approved a project to review Section PS 3250, Retirement Benefits, and Section PS 3255, Post-employment Benefits, Compensated Absences and Termination Benefits. Since the issuance of these Sections decades ago, new types of pension plans have been introduced and there have been changes in the related accounting concepts.

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This project will involve looking at issues such as deferral of experience gains and losses, discount rates, how to account for shared risk plans, multi-employer defined benefit plans and vested sick leave benefits. Other improvements to existing guidance will also be considered.

A new, comprehensive Handbook Section on employment benefits will replace the two existing Sections.

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PROJECT NEWS & DECISION SUMMARIES

PSAB Decision Summary – June 21-22, 2018
The Board received a presentation from the Task Force Chair on the approach, structure and content of the invitation to comment on non-traditional plans. The Board provided feedback to the Task Force. The Board expects to approve the invitation to comment at its September 2018 meeting. 

PSAB Decision Summary – March 22-23, 2018
The Board received an update on the project from the Task Force Chair and discussed the scope of the invitation to comment on non-traditional plans. The Board will receive an update on the invitation to comment’s development at its June 2018 meeting.

Article – Employment Benefits Discount Rate: Any Case for a Current Rate?
February 5, 2018. Read this article to learn about the debate on whether a current rate, an average rate or a projected rate would be appropriate for the discount rate used in determining benefit obligation.

Article – Employment Benefits Discount Rate: Anything Wrong with Expected Return on Plan Assets?
January 4, 2018. Read this article to learn about the debate on whether the expected return on plan assets, commonly used in the public sector in discounting obligations for funded benefit plans, is an appropriate discount rate for determining benefit obligation.

Article – Is There a Right Way to Measure the Time Value of Money?
December 11, 2017. The choice of discount rate could have significant effects on the benefit obligation reported. Read this article to learn about the debate on which discount rate would best reflect the time value of money in determining the benefit obligation.

In Brief – Invitation to Comment, Employment Benefits: Discount Rate Guidance in Section PS 3250
November 30, 2017. This In Brief provides a plain and simple overview of the Invitation to Comment, Employment Benefits: Discount Rate Guidance in Section PS 3250. It also presents background information about PSAB’s Employment Benefits project.

Invitation to Comment – Employment Benefits: Discount Rate Guidance in Section PS 3250
November 30, 2017. PSAB has issued an Invitation to Comment to seek stakeholder input before forming its preliminary views on the discount rate guidance provisions in the employment benefits standards. Stakeholders are encouraged to submit their responses by March 9, 2018.

Webinar – Invitation to Comment on Employment Benefits Discount Rate Guidance
October 6, 2017. Tune in to this webinar on January 16, 2018 (English) or January 17, 2018 (French) to learn about the key features of PSAB’s Invitation to Comment, “Employment Benefits: Discount Rate Guidance in Section PS 3250."

PSAB Decision Summary – September 21-22, 2017
The Board approved the Invitation to Comment, “Employment Benefits: Discount Rate Guidance in Section PS 3250.”

A key objective of issuing this invitation to comment is to seek stakeholder input prior to PSAB establishing its own preliminary views on the issues. The Board expects to issue the document in November 2017.

PSAB Decision Summary – June 22-23, 2017
The Board received a project update from the task force and provided input into the invitation to comment for discount rates.

The Board also provided input on options to streamline the process of this project.

PSAB Decision Summary – March 16-17, 2017
PSAB received an update about the project and reviewed a project plan. PSAB discussed if the process can be streamlined and requested staff to provide options and related risks for its consideration for the June 2017 PSAB meeting.

PSAB Matters Article – Actuarial Gains and Losses: To Defer or Not to Defer?
February 2, 2017. Whether actuarial gains and losses should continue to be deferred and amortized is a subject of debate in the Canadian public sector. Read this article for the arguments and find out how you can participate in this debate and influence PSAB’s deliberations on this issue.

Webinar – Employment Benefits Project Update and Invitation to Comment on Deferral Provisions
December 6, 2016. Tune in to this webinar on January 30, 2017 (English) or January 31, 2017 (French) to get the latest information on PSAB’s Employment Benefits project, including information on the Invitation to Comment, “Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255.”

Invitation to Comment – Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255
November 25, 2016. PSAB has issued an Invitation to Comment to seek stakeholder input before forming its preliminary views on the deferral provisions in the employment benefits standards. Stakeholders are encouraged to submit their responses, on the form provided, by March 3, 2017.

PSAB Decision Summary – September 26-27, 2016
PSAB approved the Invitation to Comment, “Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255.” The document is expected to be issued in the fall of 2016.

PSAB Matters Article – Progress on our Employment Benefits Project
August 26, 2016. Stay informed on our Employment Benefits project and upcoming opportunities to share your views.

PSAB Decision Summary – June 16-17, 2016
PSAB received an update on the project, including consideration of the approach to an invitation to comment, and provided feedback to the task force.

Volunteer Opportunity – Employment Benefits Task Force
December 23, 2014. PSAB is currently seeking members for its Employment Benefits Task Force. If you are interested, please submit a resumé by February 16, 2015.

PSAB Decision Summary – December 15-16, 2014
PSAB approved an Employment Benefits project. The objective is to review Section PS 3250, Retirement Benefits, and Section PS 3255, Post-employment Benefits, Compensated Absences and Termination Benefits. Key issues include, but are not limited to, deferral of experience gains and losses, discount rate, shared risk plans, multi-employer defined benefit plans and vested sick leave benefits.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.