Public Sector Accounting Standards

Invitation to Comment, Employment Benefits: Non-Traditional Pension Plans


This Invitation to Comment sets out the issues and considerations related to an update of the accounting guidance for all types of pension plans in RETIREMENT BENEFITS, Section PS 3250, issued by the Public Sector Accounting Board (PSAB).

The objectives of this Invitation to Comment are to:

  • explain why PSAB is considering an update of the accounting guidance in Section PS 3250;
  • explore how to reflect the entity’s share of the risk and ultimate cost related to non-traditional pension plans in the reported accrued benefit obligation; and
  • seek stakeholder input prior to the Board establishing its preliminary views on this issue.

This project’s ultimate objective is to issue a new employment benefits Section in the CPA Canada Public Sector Accounting Handbook, replacing RETIREMENT BENEFITS, Section PS 3250, and POST-EMPLOYMENT BENEFITS, COMPENSATED ABSENCES AND TERMINATION BENEFITS, Section PS 3255.

Staff Contact(s)

Michael Puskaric, MBA, CPA, CMA

Director, Public Sector Accounting Board


This is the third Invitation to Comment issued for this project. Two Invitations to Comment were issued in November 2016 and November 2017 respectively:

  • “Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255”; and
  • “Employment Benefits: Discount Rate Guidance in Section PS 3250.”

Given the complexity of the issues involved and the potential implications of any changes that may result from a review of Sections PS 3250 and PS 3255, PSAB decided to issue an Invitation to Comment on each key issue to seek input from stakeholders prior to establishing its positions.

PSAB plans to deliberate stakeholder feedback on the three Invitations to Comment and develop its positions on the issues in 2019. The Board expects to issue a Statement of Principles with its preliminary views in 2020.

Other issues that will also be addressed in this project, in the Exposure Draft and/or in the Statement of Principles, include:

  • the accounting for sick leave benefits and other non-pension benefits;
  • other improvements to existing guidance; and
  • issues that may arise or be identified by stakeholders throughout the development of the project.