2008 Annual Meeting ● Assemblée annuelle 2008 Québec Canadian Institute of Actuaries L’Institut canadien des actuaires 2008 Annual Meeting ● Assemblée annuelle 2008 Québec

Pension and Post retirement Benefits IFRS in Canada Assemblée annuelle 2008 2008 Annual Meeting Pension and Post retirement Benefits PD – 36 Jill Wagman, FSA, FCIA

Where we are Assemblée annuelle 2008 2008 Annual Meeting IFRS to be adopted effective 1.1.2011 for pensions and employee benefits Reported under standard IAS19 Some differences between IAS19 and CICA 3461 Recognition of past service costs Calculation of asset recognition limit Measurement date

The issues Adopting IAS19 will require minor changes Assemblée annuelle 2008 2008 Annual Meeting Adopting IAS19 will require minor changes Valuation method the same Sponsors with large unrecognized past service costs will be affected in year of adoption Will impact costing for negotiated plans going forward

Currently Exposure draft to amend IAS19 released in March Assemblée annuelle 2008 2008 Annual Meeting Exposure draft to amend IAS19 released in March Comments due September Key changes re-classification from plans to promises Introduction of Contribution based promises Introduction of fair value measurement Elimination of deferred recognition

Issues with the IAS19 ED ED has gone too far Assemblée annuelle 2008 2008 Annual Meeting ED has gone too far Promises classified based on accrual only Payout method / risk characteristics ignored No explanation of “fair value” Next steps Task force to prepare CIA response Work with insurance committees on implementing IFRS in Canada