Services 

RETIREMENT PROGRAM SERVICES

 

 

1. Design and set up of retirement programs

  • Give guidance / advice in the design process: compliance with R.A. 7641 (minimum retirement benefit law) and R.A. 4917 (tax-qualification); information on market practice, benefit structures, benefit levels and their purpose; aligning benefit levels to company objectives and budget
  • Determination of the long-term cost of the plan as well as the immediate cost impact to the company's current finances under the prevailing accounting standards
  • Additional actuarial valuation to determine the impact of a 1% movement in the assumed interest rate or salary increase to help clients determine probable movements in the costs (e.g. worst case scenarios).
  • Preparation of the retirement plan rules including explanation of suggested provisions and their rationale
  • Documentation of benefit computation to ensure that retirement plan rules are written exactly in accordance with the intended benefits to avoid any confusion in the future.
  • Employee turnover study to determine the proper assumption to be used for the actuarial valuations given that employee turnover has a very significant impact on retirement program costs.
  • Projection of expected benefit payments to help asses the liquidity requirement of the plan, provide funding guidance and help formulate investment strategies.
  • Provide a concise slide presentation for Management.   
  • Referrals of trust fund managers
  • Filing for BIR tax-qualification

 

2. Plan amendment

  • Review of existing retirement plan rules and give recommendations for improvement of benefits and rules. 
  • Determination of the long-term cost of the plan as well as the immediate cost impact to the company's current finances under the prevailing accounting standards
  • Additional actuarial valuation to determine the impact of a 1% movement in the assumed interest rate or salary increase to help clients determine probable movements in the costs (e.g. worst case scenarios).
  • Preparation of the amended retirement plan rules including explanation of suggested provisions and their rationale
  • Documentation of benefit computation to ensure that retirement plan rules are written exactly in accordance with the intended benefits to avoid any confusion in the future.
  • Employee turnover study to determine the proper assumption to be used for the actuarial valuations given that employee turnover has a very significant impact on retirement program costs.
  • Projection of expected benefit payments to help asses the liquidity requirement of the plan, provide funding guidance and help formulate investment strategies.
  • Provide a concise slide presentation for Management.   
  • Filing with BIR for re-qualification

 

3. Actuarial valuation for funding and for accounting purposes under the following standards;

      a. International / Philippine Accounting Standards No. 19 (IAS / PAS 19)

      b. Philippine Financial Reporting Standards for SMEs (PFRS for SMEs)

      c. Financial Accounting Standards No. 87 as amended by FAS 158

      d. German GAAP

  • Determination of the normal cost as a fixed percentage of payroll and the funded status of the plan
  • Recommendation of amounts for periodic funding
  • Projection of expected benefit payments to help asses the liquidity requirement of the plan, provide funding guidance and help formulate investment strategies.
  • Determination of the current service cost, present value of obligation and other actuarial values
  • Preparation of the necessary financial statement disclosures:

o        Movement in the Liability recognized in the Balance Sheet

o        Movement in the Present Value of Obligation

o        Movement in the Fair Value of Plan Asset

o        Component of the Expense Recognized

o        Component of the Liability

o        Analysis of Actuarial Gains and Losses

o        Movement in OCI

o        Sensitivity to change in the discount rate, salary increase rate, turnover

o        Breakdowns between vested & non-vested, pensioners & active, etc.

o        Projection of Benefit Payments / Maturity Profile of the Obligation

  

  • Employee turnover study to determine the proper assumption to be used for the actuarial valuations given that employee turnover has a very significant impact on retirement program costs.
  • Give timely advice on changes in accounting standards and their implications.

4. Asset-Liability Management

  • Matching of assets to the laibility profile
  • Maximization of returns using the Mean-Variance framework

  


 

If you need any of the above services, please e-mail the following to actuarialconsultant@yahoo.com :

  • Company Name
  • Company Address
  • Contact Person
  • Position
  • Department
  • Contact Nos.
  • E-mail address
  • Specific services needed
  • Number of employees

Or simply give us your number and we'll be happy to give you a call.



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