At its meeting on March 6-7, 2019 the AcSB continued its discussions regarding changes to pension legislation. The Board considered the use of a funding valuation for registered defined benefit plans in Quebec, which includes the Stabilization Provision as established in 2016 by Quebec’s pension regulator for private sector plans.

The Board is concerned with the diversity arising in practice as to whether the Stabilization Provision is included in the measurement of the defined benefit obligation when an enterprise elects to use a funding valuation in accordance with Section 3462. The Board was advised that the diversity arises from the view of some stakeholders that the inclusion of the Stabilization Provision results in a measurement akin to a solvency valuation.

The AcSB decided to undertake standard-setting action by developing an exposure draft to propose changes to Section 3462 to clarify its intent that the Stabilization Provision should be included in the measurement of the defined benefit obligation when the funding valuation is chosen. Given the reported diversity in practice, the Board will also consider transitional provisions in developing its exposure draft.

Review the Executive Summary on the AcSB's Web site.