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ActuarialExponents, Inc. has issued its 2014 survey of retirement programs. It involved 197 companies from different industries required to comply with either the Philippine Accounting Standards No. 19 or the Philippine Financial Reporting Standards for Small and Medium Enterprises.

Out of the companies surveyed, 134 (68%) have formal retirement programs. Of those with retirement programs 132 (99%) are of the Defined Benefit type.

Eighty-three percent (83%) use Basic Salary while the remaining 17% use Gross Salary (that usually includes the guaranteed additional monthly pay such as the 13th month pay) as basis for computing the retirement benefit.

The survey showed thirty-one percent (31%) require employees to reach the age of 60 and complete 5 years of service. Fifty-six percent (56%) require only the age 60.

Seventy-five percent (75%) provide a fixed normal retirement benefit with the remaining 25% providing a normal retirement benefit that either increases with years of service or age at retirement.

The most common normal retirement benefit is 100% of monthly salary per year of service provided by 41% of the companies included in the survey.

The banks and other financial institutions sector provide the highest retirement benefits.

The survey shows comprehensive statistics on the eligibility requirements and benefit levels for normal and early retirement, vesting, death and disability benefits. Statistics for normal retirement benefit are broken per industry.

Soft copies of the survey have been released to clients and participants. Hard copy of the survey will be included in the actuarial valuation reports provided by ActuarialExponents.

The survey is conducted annually to help clients benchmark the benefits provided in their retirement programs.