News
  • More: (1 of 7)
News 

2013 RETIREMENT PROGRAM SURVEY

ActuarialExponents, Inc. has finalized its 2013 survey of retirement programs. It involved 141 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 these companies, 106 (75%) have formal retirement programs. Of those with retirement programs 103 (97%) are of the Defined Benefit type.

Eighty-four percent (84%) use Basic Salary while the remaining 16% 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 forty percent (40%) require employees to reach the age of 60 and complete 5 years of service. Forty three percent (43%) require only the age 60.

Seventy one percent (71%) provide a fixed normal retirement benefit with the remaining 19% 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 42% of the companies included in the survey.

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

The lowest retirement benefit factor is 50% while the highest is 346%. The average of the minimum benefit factor is 101% while the average of the maximum benefit factor is at 131%. The factors already took into consideration the conversion of the gross salary to basic salary insofar as the number of additional months that salaries are payable in a year.

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.