Skip to main content

Public Sector Accounting Standards

Employee Benefits

Summary

Please note: This project was renamed Employee Benefits in Spring 2021 to align with the title of the Phase 1 Exposure Draft.

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.

Staff Contact(s)

Riley Turnbull, CPA, CA Principal, Public Sector Accounting Board

Iman Sheikh, CPA, CA Principal, Public Sector Accounting Board

Project Status

  • Information gathering

    Initial information gathering completed prior to December 2014

    Project revisited in December 2019

  • Approving project

    Project approved December 2014

    Revised project plan approved June 2020

  • Engaging Communities

    Invitation to Comment – Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255 issued in November 2016

    Invitation to Comment – Employment Benefits: Discount Rate Guidance in Section PS 3250 issued in November 2017

    Invitation to Comment – Employment Benefits: Non-traditional Pension Plans issued in October 2018

    PSAB approved the Exposure Draft “Employee Benefits, Proposed Section PS 3251” and the accompanying Basis for Conclusions at its March 2021 meeting. It was issued in July 2021.

    PSAB reviewed feedback received on the July 2021 Employee Benefits Exposure Draft to inform the development of a Re-Exposure Draft, focusing specifically on further amendments to discount rate proposals.

    PSAB approved the Re-exposure Draft “Employee Benefits, Proposed Section PS 3251” and accompanying Basis for Conclusions at its June 2024 meeting. It was issued on October 17, 2024, with a comment deadline of January 20, 2024.

  • Deliberating feedback
  • Final pronouncement

News


November 13, 2024

Webinar, Resource, Video

On-demand Webinar – PSAB’s Re-exposure Draft, “Employee Benefits, Proposed Section PS 3251”

Learn about key proposals in PSAB’s recently issued Re-exposure Draft “Employee Benefits, Proposed Section PS 3251” and stay informed about how upcoming changes could impact you. Watch our on-demand webinar and find out how we’re responding to your feedback on discount rate amendments.

October 17, 2024

Webinar, International Activity, News

Webinar – PSAB’s Re-exposure Draft, “Employee Benefits, Proposed Section PS 3251”

Learn about key proposals in PSAB’s recently issued Re-exposure Draft “Employee Benefits, Proposed Section PS 3251”! Join us for a live webinar on November 13, 2024, and find out how we’re responding to your feedback on discount rate amendments. This webinar will be conducted in English with simultaneous translation to French. Register now and stay informed about how upcoming changes could impact you.

October 17, 2024

Resource, In Brief

In Brief – A plain and simple overview of PSAB’s Re-exposure Draft, “Employee Benefits, Proposed Section PS 3251”

PSAB has issued the Re-exposure Draft, “Employee Benefits, Proposed Section PS 3251.” This Re-exposure Draft focuses on amendments to previously exposed discount rate principles for defined benefit plans. Read our In Brief to learn more about the proposals and how you can provide your input.

September 27, 2021

Webinar

Webinar – PSAB’s Exposure Draft “Employee Benefits, Proposed Section PS 3251”

Learn more about key proposals in PSAB’s Exposure Draft “Employee Benefits, Proposed Section PS 3251,” by watching our on-demand webinar in English or French. Comments for the Exposure Draft are due November 25, 2021.

July 28, 2021

Resource, In Brief

In Brief – Exposure Draft, “Employee Benefits, Proposed Section PS 3251”

Read PSAB’s plain and simple overview of our Exposure Draft, “Employee Benefits, Proposed Section PS 3251.” The first phase of this multi-phase standard focuses on discount rate guidance and deferral provisions. Learn more about our key proposals and submit your comments on the Exposure Draft by November 25, 2021! 

July 28, 2021

Document for Comment

Exposure Draft – Employee Benefits, Proposed Section 3251

PSAB issued Exposure Draft – “Employee Benefits, Proposed Section 3251,” which outlines principles for the first of several phases of the revised employee benefits standard. In this first phase, the Board focused on discount rate guidance and deferral provisions. 

We want your feedback to our Exposure Draft – respond by November 25, 2021!

November 28, 2019

News

Update – Revisiting PSAB’s Employment Benefits Project

PSAB has decided to revisit our Employment Benefits project by reviewing the project plan and scope. Read this article to find out why, and what’s next for our stakeholders.

October 16, 2018

Resource, Webinar

Webinar – Invitation to Comment on Non-traditional Pension Plans

October 16, 2018. Tune in to this webinar on November 16, 2018 (English) or November 22, 2018 (French) to learn about the key features of PSAB’s Invitation to Comment, “Employment Benefits: Non-traditional Pension Plans.”

December 11, 2017

Resource, Article

Article – Is There a Right Way to Measure the Time Value of Money?

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.

October 6, 2017

Resource, Webinar

Webinar – Invitation to Comment on Employment Benefits Discount Rate Guidance

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."

December 6, 2016

Resource, Webinar

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.”

Meeting & event summaries


October 18, 2023

PSAB Decision Summary – September 28-29, 2023

PSAB discussed feedback on the proposed discount rate guidance in the Exposure Draft “Employee Benefits, Proposed Section 3251 ” and considered options to simplify the assessment of a plan’s funding status.

A revised version of the standard is likely to be presented for the Board’s approval in March 2024. To align with PSAB’s Standard-Setting Due Process Manual, if the Board concludes significant changes have been made to the guidance proposed in the exposure draft, re-exposure of the revised standard may be required. This decision will be made at a future meeting.

July 17, 2023

PSAB Decision Summary – June 27-28, 2023

PSAB discussed feedback on the proposed discount rate guidance in the Exposure Draft “Employee Benefits, Proposed Section 3251,” and considered options for simplifying the proposed guidance.

The Board will continue to review options for the discount rate guidance at a future Board meeting.



April 25, 2023

PSAB Decision Summary – March 30-31, 2023

PSAB provided further feedback on the analysis of the responses to the July 2021 Exposure Draft, “Employee Benefits, Proposed Section 3251.” The Board provided its feedback on technical and other topics of the project’s first phase, including:

  • Category-wide plans
  • Sufficient information

The Board supported amending the project timelines. Further discussion on the revised timeline for the project will occur at a future meeting.

October 20, 2022

PSAB Decision Summary – September 28-29, 2022

Employee Benefits

PSAB provided further feedback on the analysis of the responses to the July 2021 Exposure Draft, “Employee Benefits, Proposed Section 3251.” The Board provided its feedback on other topics of the project’s first phase, including:

  • recognition and presentation of remeasurement gains and losses and the scope;
  • definitions; and
  • terminology in the proposed standard.

The Board plans to continue its discussion of the Exposure Draft and timelines for the project at its December meeting.

June 28, 2022

PSAB Decision Summary – June 28-29, 2022

PSAB provided feedback on the analysis of the responses to the July 2021 Exposure Draft. “Employee Benefits, Proposed Section 3251.”  Board feedback was provided on the key topics of the project’s first phase: discount rate guidance and deferral provisions. The Board plans to discuss other topics in the Exposure draft at its September meeting.

April 7, 2021

PSAB Decision Summary – March 25, 2021

After extensive deliberation, PSAB approved the Exposure Draft, “Employee Benefits, Proposed Section PS 3251,” and the accompanying Basis for Conclusions, which sets out the Board’s reasoning for the proposals. The Board expects to issue the document in July 2021, with comments due in November 2021.

This Exposure Draft outlines the proposed principles for the first of several phases of PSAB’s revised employee benefits standard. The proposed Section will replace existing Sections PS 3250 and PS 3255.

All stakeholders are encouraged to provide feedback on these proposals once they are issued in July. Staff will conduct extensive outreach, including on Connect.FRASCanada.ca, the new online community platform that makes providing feedback easier.

December 10, 2020

PSAB Decision Summary – December 10, 2020

PSAB discussed and provided feedback on the first release of an exposure draft  for the employment benefits standard. The Board plans to approve the exposure draft for comment at its March 2021 meeting.

September 28, 2020

PSAB Decision Summary – September 28, 2020

PSAB discussed the first draft of the employment benefits standard and gave feedback for developing of the exposure draft. The Board will continue to discuss the core topics in upcoming meetings.

September 27, 2019

PSAB Decision Summary – September 26-27, 2019

PSAB received a summary of responses to the three invitations to comment and the Task Force’s deliberations of the key issues. The Board provided feedback to the Task Force for considerations.

June 20, 2019

PSAB Decision Summary – June 20-21, 2019

PSAB received an update on the Employment Benefits project and provided feedback on the Task Force’s work on key issues covered in the Invitations to Comment:

  • “Employment Benefits: Deferral Provisions in Sections PS 3250 and PS 3255” issued in November 2016; and
  • “Employment Benefits: Discount Rate Guidance in Section PS 3250” issued in November 2017.

PSAB also considered the nature and scope of the project’s next due process document, based on stakeholders’ feedback. The Board agreed that an exposure draft would provide stakeholders with a complete picture of the proposed standard, including application guidance and illustrative examples.

PSAB will be provided with an update on key issues covered in the Invitation to Comment, “Employment Benefits: Non-Traditional Pension Plans” issued in October 2018, at its September 2019 meeting.

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 voting process.