Actuarial Outpost
Go Back   Actuarial Outpost > Actuarial Discussion Forum > Pension - Social Security
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions

Fill in a brief DW Simpson Registration Form
to be contacted when new jobs meet your criteria.

Thread Tools Search this Thread Display Modes
Old 02-28-2020, 11:35 AM
Rashed Rashed is offline
Join Date: Feb 2020
Posts: 7
Default Help with calculate end of services benefits

Hello all,
I want to check if am I correct with the steps when calculating the end of services benefits according to IAS 19
If I have the following employee data:
age 33
past services 6 years
monthly salary 3000
Attrition rate 10%
Salary Escalation 3%
Discount Rate 4.80%

end of service benefit rules on Retirement, Termination, Death:

Employees Total Service Period
< 2 years = 1/2 month Scheme Salary

2 - 5 years = 1/2 month Scheme Salary

5 - 10 years ="First 5 years: 1/2 month Scheme Salary, > 5 years: 1 month Scheme Salary

> 10 years =First 5 years: 1/2 month Scheme Salary, > 5 years: 1 month Scheme Salary

Are the following steps are correct
1- to calculate the future expected years of work (remaining years to retire x (1-attrition rate) x (1-death probability))
2- projected final salary ( monthly salary x (1+i)^future expected years of work)
3- Projected Gratuity Amount = projected final salary* (future expected years of work +past working years)
4- benefit accrued = projected final salary* (.5*5)+(1*1)
5- discount the benefit amounts to the date of valuation (not clear enough for me)

If anyone can help me with the steps and I will be grateful if applied to the previous example or any example.
Reply With Quote

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

All times are GMT -4. The time now is 12:38 AM.

Powered by vBulletin®
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.13780 seconds with 11 queries