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Employee Future Benefits – AcSB

Date recorded:

At its meeting on May 15, 2019 the AcSB continued its discussion regarding changes to pension legislation in Ontario and Quebec and the effects on the measurement of the defined benefit obligation for registered defined benefit plans when an enterprise elects to use a funding valuation in accordance with Section 3462, Employee Future Benefits. The AcSB plans to issue an Exposure Draft to clarify that all components of a going concern funding valuation required for legislative or regulatory purposes be included in the measurement of the defined benefit obligation when the funding valuation is chosen. The Board agreed that it would not refer to specific legislation so that the amended guidance would address current and future legislation. The AcSB also considered the use of the funding valuation for defined benefit plans for which there is no legislative, regulatory, or contractual requirement to prepare a funding valuation. Specifically, the Board discussed the meaning of “on a basis consistent with” in paragraph 3462.029C. The Board reviewed the work done when Section 3462 was developed and determined that the intent was that “on a basis consistent with” is equivalent to “the same”. The Board decided to clarify the guidance relating to this issue in the Exposure Draft. The AcSB directed staff to consult with actuaries on a preliminary draft of the proposed amendments relating to these issues. The AcSB also considered the transitional provisions for the proposed amendments and decided that transitional relief should be provided. The AcSB plans to discuss this topic further at its June 2019 meeting, including considering the feedback received from consultations with its Private Enterprise Advisory Committee as well as actuaries. The AcSB plans to issue the Exposure Draft no later than the third quarter of 2019.

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

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