1. 2008 Annual Meeting ● Assemblée annuelle 2008 Québec
Canadian
Institute of
Actuaries
L’Institut canadien
des
actuaires
2008 Annual Meeting ● Assemblée annuelle 2008
Québec

2. 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

3. Where we are
Assemblée annuelle 2008
2008 Annual Meeting
IFRS to be adopted effective 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

4. 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

5. 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

6. 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