Comprehensive actuarial valuations for defined benefit pension schemes, superannuation funds, and post-retirement medical benefits — under Ind AS 19, IAS 19, and AS 15(R).
Defined benefit (DB) pension schemes represent the most complex category of employee benefit obligations. Unlike defined contribution plans, DB pensions promise a specific retirement income — making their accurate valuation critical for financial reporting, funding adequacy, and regulatory compliance.
Under Ind AS 19 and IAS 19, every company with a defined benefit pension arrangement must recognise the full Present Value of the Defined Benefit Obligation (PVDBO) on its balance sheet, net of the fair value of plan assets. The gap between the two — the net defined benefit liability — appears directly on the balance sheet, affecting key financial ratios.
With over 52 years of pension consulting experience, CGC's fellows bring unmatched depth in scheme design, funding strategy, and actuarial reporting for both public and private sector organisations.
Total present value of all future pension payments earned by employees to date, discounted using government security yields as prescribed by Ind AS 19.
Fair value of assets held in the pension trust or fund — netted against the DBO to arrive at the net defined benefit liability (or asset).
Expected and actual return on plan assets, with actuarial reconciliation of differences — a key component of OCI disclosures.
Fully documented demographic and financial assumptions — salary escalation, discount rate, mortality (Indian Assured Lives Mortality Tables), employee turnover.
Impact analysis of changes in key assumptions — what happens to DBO if the discount rate changes by ±1%, or salary growth changes by ±1%.
Expected benefit payment profiles over the next 5, 10, and 15 years — essential for liquidity management and funding decisions.
Many organisations — particularly PSUs, banks, insurance companies, and large corporates — provide post-retirement medical benefits (PRMB) to their retirees and dependents. These represent long-term, open-ended obligations that are among the hardest to value accurately.
CGC specialises in the actuarial valuation of post-retirement healthcare liabilities using healthcare cost trend rates, mortality assumptions for retiree populations, and the Projected Unit Credit Method. We have extensive experience with medical benefit schemes in both the public and private sectors, including organisations with legacy medical trusts.
Whether you manage a legacy DB pension scheme or are setting up a new superannuation fund, our actuaries are ready to help.