Understanding the benefit scheme
We understand the details of the Scheme by studying the benefit scheme documents (e.g. gratuity or leave policy of the Company) & post discussion with the client.
Data requirements and validation
As per the specific requirements of the client, a specific or generic non-disclosure agreement can be entered into, after which employee level details are required to be filled by the client in the standard data templates, which will be provided by us. The accuracy and completeness of the data is the employer’s responsibility; however we do run some basic data validation checks and get clarification from the client for any data corrections.
Assumptions setting
Assumptions are a very critical part of the any liability estimation. Assumptions like salary escalation or attrition rate are based on the client’s specific past experience and future expectation based on the industry and economic/ business cycle the particular employer is in. We help the employers choose appropriate assumptions which will go in as inputs to the valuation. Based on the specific assumptions chosen by the employer, we determine the applicable discount rate in accordance with the requirements of the Accounting Standard applied.
Actuarial valuation – results and discussion
Using the data and the assumptions, projection models are created and the draft results are produced as per the requirements of the relevant accounting standards. These results after thorough vetting from our end; are sent to the clients for concurrence. We also help clients in handling queries from their auditors with respect to these results.
Reports
Once the auditors/ finance team of the client are in consensus with the draft numbers, we send them the digitally signed final reports in the template required as per the applicable accounting standards. We are always available to the clients for any queries they may have with regard to the numbers in the report, choice of assumptions, methodology used or movement in numbers during various time periods.