The flowchart below gives a pictorial view of the employee defined benefits (e.g. gratuity, pension) actuarial valuation process: Step 1: Data Collection (e.g. employee data such as dates of birth and employment, salary, etc.; plan details; fund asset details; prior valuation reports and IAS disclosures;
Actuarial valuation of benefit liability – Defined Benefit Plan Let us assume Emily is an employee of LifeCorp Inc. which has a gratuity plan that pays a lump sum benefit upon normal retirement age (r) of 60 years. The lump sum benefit is defined as
Commutation functions are an easy, simple and efficient way to calculate the actuarial present value of contingent payments. They are a function of a deterministic survival model and a constant and level rate of return. The drawbacks of using commutation functions are that they do
An introductory course aimed at banking, corporate, treasury and sales teams that reviews intermediate and advance derivative products with afocus on marketing and sales applications. Participants work with product, sales, pricing and risk concepts applicable to derivative markets.
Designed as a senior management retreat on Basel II, this limited seating, one day workshop serves as a 6 hour crash course on Basel II for Chief Executives, Chief Financial Officers, Country Risk Officers, Credit Administration Heads, Treasury Heads, Basel II Coordinators and Board Risk Committee members.