Skip to main content

Public Sector Accounting Standards

Exposure Draft – Employee Benefits, Proposed Section 3251

Summary

The Public Sector Accounting Board (PSAB) proposes, subject to comments received following exposure, to issue Employee Benefits, Section PS 3251. 

This Exposure Draft uses principles from the International Public Sector Accounting Standard (IPSAS) 39, Employment Benefits, as a starting point. In developing the Exposure Draft, PSAB amended IPSAS 39 principles that were considered contrary to PSAB’s existing and proposed Conceptual Framework, or inappropriate for application in Canada based on the Canadian public interest.

This Exposure Draft outlines the first of several phases of PSAB’s revised employee benefits standard. Proposed Section PS 3251 would replace existing sections PS 3250 and PS 3255. 

The proposals developed to date consider the feedback received from PSAB’s Invitation to Comment papers on the topics of deferral provisions and discount rate guidance. 

PSAB’s objective with this Exposure Draft is to finalize the core principles for discount rate guidance and deferral provisions. In addition to responding to this Exposure Draft, stakeholders will have an opportunity to comment in later phases of this project, following the Board’s due process.

Staff Contact(s)

Michael Puskaric, MBA, CPA, CMA Director, Public Sector Accounting Board

Phone number  +1 416 204 3451
Email address  [email protected]

Background

Current standards in the PSA Handbook on retirement benefits, post-employment benefits, compensated absences and termination benefits were developed more than two decades ago. Since then, there have been many changes in the accounting world and pension plans have continued to evolve. 

This Exposure Draft outlines proposals for the proposed Section PS 3251. In its deliberations, PSAB focused on discount rate guidance and deferral provisions. The comments requested in this Exposure Draft also focus on these topics. In future phases of the revised employee benefits standard, the Board will address additional topics, including specific guidance on accounting for risk-sharing provisions in public sector pension plans in Canada and other types of non-traditional plans. 

PSAB’s objective with this Exposure Draft is to finalize the core principles for discount rate guidance and deferral provisions. In addition to responding to this Exposure Draft, stakeholders will have an opportunity to comment in later phases of this project, following the Board’s due process.