The purpose of the Actuarial Valuation Report is to set contribution levels, to disclose plan assets and actuarial liabilities, to comment on funding progress and to provide supporting information about the operation of the Plan. This Report is also designed to comply with requirements of the jurisdiction in which the firm operates, and also for audit purposes.
The summary of the actuarial valuation report presents the company’s costs and liabilities, and the assumptive costs for the the next fiscal year, under the plan’s current funding scheme. It also provides a comparison with the results of the previous actuarial valuation exercise to present changing trends and patterns that were developed during the course of the year.It also shines a spotlight on the annual contributions rates required of each employer in order to fulfil current and future benefits, and also helps with a brief analysis of actuarial gains or losses for the system
It helps in understanding the annual benefits of the new retirees over the last year, and if this could be offset with reducing the expected salary increase for the coming term.