Employee Benefits Our methodology
We follow a tried and tested methodology for collection of data and valuation, that has been vastly successful in helping our cleints achieve both their reporting as well as financial goals.
1. Initial Planning: Our associates take into account account all the documentations for the valuation, including previous valuations (if any) and prepare a summary of the benefit plans and assumptions that are to be covered under the scheme.
2. Gathering participant data: We obtain participant data from our clients, and go through steps to verify its completeness and accuracy. At this stage, we perform a complete census on active, terminated and retired participants as well as an audit on plan assets and any financial reconsicilations that have occurred during the fiscal year.
3. Develop tailor made computer programs: Once the census data is verified, we create custom programs, taking into account the changes in benefits and contributions, along with the actuarial assumptions. The programs perform calcualtions as per the projected unit credit (PUC) method which is mandated for estimation of actuarial liabilities. We test our actuarial applications extensively and esure they perform as expected.
4. Reviewing assumptions: At this stage, we assess trends and patterns developing in the data set, and take into account the actuarial gains and losses that have occurred since the previous valuation. If required, we discuss any unusual behavioural patterns with the stakeholders.
5. Finalizing the Actuarial calculations: Once the assumptions are finalized, we run final versions of our computer applications, and with the data prepare tables and populate work sheets. Once these are completed, we manually verify the calculations with a checker to ensure strict compliance.
6. Reviewing Actiarial Valuations: After the calculations are completed, the entire process is reviewed by our senior actuary – including the census data, the financial assumptions, the programs and the calculations – to ensure correctness of the actuarial results.
7. Preparing a report with our calculations: The data and figures we calculated are then converted into a presentable form, that helps our clients understand the scope of the actuarial valuations as well as get a bird eye view of the results arising out of the valuations.
8. Presenting the report to our clients: We then present the actuarial valuation report to our clients and their stakeholders, and if necessary, account for any changes. If our clients wish to discuss further about he reports, we schedule a meeting in order to assist them in all aspects of actuarial valuation.