The Public Sector Accounting Standards Board (PSAB) approved a revised Employment Benefits project plan at the June 26, 2020 meeting. This approval comes following thorough consideration of how to respond to our stakeholders’ most pressing needs in the best and timeliest way possible.
A New Path Forward
We are focused on delivering a principles-based employment benefits standard that addresses current and emerging key issues faced by Canadians and public sector plans.
Under the revised approach, our new employment benefits standard will become available through multiple releases.
Release 1 will provide base accounting guidance, with later releases building on those principles to further address current and emerging issues.
PSAB staff are already preparing the Release 1 exposure draft, which will focus on deferral provisions and discount rate guidance. This exposure draft will use principles from International Public Sector Accounting Standard (IPSAS) 39, Employee Benefits, as a starting point. We can modify IPSAS 39 principles to better fit the Canadian environment and provide customized guidance where needed. The adoption date of Release 1 of the standard will be determined by the Board at the time that Release 1 of the standard is approved.
Later releases will focus on providing further guidance on the topic of Non-traditional pension plans and other issues.
Revised Project Governance
Employment Benefits Subcommittee of the Board
The Subcommittee provides project oversight and will work closely with both staff and Board members to deliver the project’s various releases. However, the Subcommittee does not have the authority to approve exposure drafts, bases for conclusions, consequential amendments, or final standards. These authorities remain with the Board.
The Subcommittee’s members are:
Employment Benefits Group of Experts
The Group of Experts are PSAB advisors. The Group will be called upon as needed at the discretion of the PSAB staff or the subcommittee to provide input and advice to support effective decision making.
Revised Project Roadmap
This roadmap provides an overview of the direction of the project and key deliverables. It will be updated throughout the lifecycle of the project.
Connection to the PSAB International Strategy decision
As communicated in our June 2020 In Brief – A plain and simple overview of PSAB’s 2020 decision to adapt IPSAS principles when developing future standards, all existing projects underway are grandfathered and will be completed according to their existing project charters.
As part of our Employment Benefits project plan revisit, we considered alternative approaches to completing the project, regardless of our international decision. The decision to use IPSAS 39 principles as the starting point for Release 1 represents our view of the best approach to provide a solution to stakeholders in a timely manner.
Addressing stakeholder needs
Our revised project approach will give stakeholders solutions in a timelier manner. We are able to prioritize certain topics, namely deferral provisions and discount rate guidance, while working on delivering non-traditional pension plans and additional guidance in subsequent releases.
Key Contact
Riley Turnbull, CPA, CA
Principal, Public Sector Accounting Board
Phone: +1 (416) 204-3245
Email: [email protected]