Pension Standards

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Accounting for Post-Employment Benefits – Terms and Definitions Elements of Post-Employment Benefits Accounting Differences US GAAP – IFRS before SFAS 158 Corporate Finance ( CF R 13 / CF T2)2Post-Employment Benefits - Overview
Post-employment benefits are employee benefits (other than termination benefits) which are payable after the completion of employment.
Pension (unfunded)OPEB

Other long-term

Deferred compensation

Pension benefits (funded / unfunded) Periodic (or lump-sum) payments made pursuant to the terms of the pension plan to a person after completion ofemployment or to that person‘s beneficiary. Post-retirement benefits other than pension (OPEB) All forms of periodic (or lump-sump) payments - other than retirement payments - provided by an employerto retirees (e.g. health care benefits) pursuant to the terms of a post-retirement benefit plan. Other long-term post-employment benefits Other long-term post-employment benefits are payable regardlessof the reason for the employee‘s departure . Deferred Compensation Agreement between an employer and an employee under which the employee will receive compensation during periods after employment.3

Post-Employment Benefits - Defined Benefit vs. Defined Contribution Plans
Post-employment benefit plans … … are agreements in which the employer provides payments to retired employees inexchange for current or past services during their years of employment. There are two basic types of post-employment benefit plans:
Defined contribution plan (DC-Plan) Employer pays defined/fixed(periodic) contributions to an independent entity (e.g. external pension fund) and will have no legal or constructive obligation over and beyond the payment of the contribution. Post-employment benefitsdepend only on the amount contributed to the participant‘s account and the asset returns earned on investments of the contributions. The employee benefits from asset gains but also carries risks of...