Post-employment benefits

Post-employment benefits are employee benefits (other than termination benefits and short-term employee benefits) that are payable after the completion of employment. These are retirement benefits (eg pensions and lump sum payments on retirement) and other post-employment benefits, such as post-employment life insurance and post-employment medical care.

Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the period in which the employees render the related service. These are:

  1. long-term paid absences such as long-service leave or sabbatical leave;
  2. jubilee or other long-service benefits; and
  3. long-term disability benefits.

Post-employment benefit plans are formal or informal arrangements under which an entity provides post-employment benefits for one or more employees.

Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment as a result of either:

  1. an entity’s decision to terminate an employee’s employment before the normal retirement date; or
  2. an employee’s decision to accept an offer of benefits in exchange for the termination of employment.

Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

Defined benefit plans are post-employment benefit plans other than defined contribution plans.

Multi-employer plans are defined contribution plans (other than state plans) or defined benefit plans (other than state plans) that:

  1. pool the assets contributed by various entities that are not under common control; and
  2. use those assets to provide benefits to employees of more than one entity, on the basis that contribution and benefit levels are determined without regard to the identity of the entity that employs the employees.

Employee benefits include benefits provided either to employees or to their dependants or beneficiaries and may be settled by payments (or the provision of goods or services) made either directly to the employees, to their spouses, children or other dependants or to others, such as insurance companies.

An employee may provide services to an entity on a full-time, part-time, permanent, casual or temporary basis. For the purpose of IAS 19, employees include directors and other management personnel.

Plan assets – comprise:

  1. Assets held by a long-term employee benefit fund; and
  2. Qualifying insurance policies.

General model of measurement of insurance contracts

Post-employment benefits

Post-employment benefits

Post-employment benefits Post-employment benefits Post-employment benefits Post-employment benefits 

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