The Ontario government is forming an independent expert panel to deliver advice and recommendations on the appropriate application of accounting standards for the province’s jointly-sponsored pension plans, the Ontario Public Service Employees Union Pension Plan and the Ontario Teachers’ Pension Plan.
In October, when the government published its annual report and consolidated financial statements, its stated deficit for 2015-16 was $3.5 billion, which was at odds with auditor general Bonnie Lysyk’s interpretation of $5 billion.
Read: Ontario pension accounting dispute shows difference of $1.5B in province’s deficit
The government said, despite best efforts to resolve the conflict, the province’s professional accounting staff and the auditor general continue to have differences of opinion. Its solution is to form an independent expert panel that will deliver advice and recommendations on the issue, as well as advice on how to value net pension assets reported on the province’s books, taking into account future decisions which might be made by the plan’s sponsor or sponsors.
The panel members are:
- Tricia O’Malley, a member of the Canadian Actuarial Standards Oversight Council since 2012 and has served as its chair since January 2015. She will be chair of the expert panel.
- Murray Gold, a practitioner and senior pension and benefits partner at Koskie Minsky LLP.
- Uros Karadzic, a pension actuary and a partner in EY’s people advisory services reward practice, which includes pension, benefits and compensation consulting.
- Paul Martin, comptroller with the government of New Brunswick and was previously a partner with the national accounting firm Grant Thornton LLP.
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“We look forward to receiving the expert panel’s report and recommendations on this important accounting issue,” said Liz Sandals, president of the treasury board, in a news release. “This independent advice will guide our discussions as we work toward agreement with the auditor general of Ontario on the future preparation of the province’s financial statements.”
The panel’s report will be shared with the auditor general of Ontario and be made public in early 2017.