Pension/Retirement Allowance Plan Analysis, Design & Funding
Compensation Analysis
General Actuarial
Computer Software
Consulting Responsiveness

Pretty Good Computer Hardware
Software written specifically for Japan
Consulting Credentials

Professional Fees
Valuation Charge
Computer and Other Office Equipment Costs

Actuarial Valuation
Cashflow Analysis
Plan Design and Review
Executive Compensation Analysis

Pension/Retirement Allowance Plan Analysis, Design & Funding

• The Lia TOC
• Japanese Retirement Plan Vehicles
• Is my Tax Qualified Pension Plan Tax-free?
• Retirement Plan Gain & Loss
• The Financial Impact of Your Book Reserve Plan
• Avoiding the TAX
• Gain & Loss Analysis - Who Cares?
• Confidence in the Report
• Disability in Your Retirement Plan
• Compliance with home-country accounting rules: Japan, FAS 87, SSAP 24 and CICA 3460.
  • What is a Pension Plan?
  • Does the Balance Sheet Liability Established Under the Japanese Book Reserve System Satisfy FAS 87?
  • So, is there a "back-of-the-envelope" way to determine materiality of the Book Reserve System?
  • Isn't "100% of the Involuntary" more conservative than FAS 87?
  • But, once held, aren't the accruals close enough to the Net Periodic Pension Cost calculated under FAS 87?
  • So, You forgot to do the valuation for FAS 87...What Now?
  • The Vesting Normal Cost
  • Gain & Loss Analysis - Who Cares?
  • Settlements and Curtailments
  • Projecting Your Own
  • The Discount Rate
• Compliance with IAS 19.
• Tax deductions under U.S. IRC 404A.
• Insurance Company/Trust Bank proposal analysis.
  • Salary Scale example...What's wrong with Geometric?
  • Independence - Who Cares?
  • Prescription without diagnosis is malpractice
• Funding vehicle cash flow analysis.
  • Japanese Retirement Plan Vehicles
  • Is my Tax Qualified Pension Plan Tax-free?
• Design cost impact.
  • Gain & Loss Analysis - Who Cares?
  • Time To Do It Write! Time To Do It Over.
  • DB vs. DC - Plan Costs.
• Typical Japanese benefit arrangements.
  • Japanese Retirement Plan Vehicles
  • Lies, Damned Lies and Statistics or Surveys and Snake Oil
  • Is my Tax Qualified Pension Plan Tax-free?
  • What is "Tax-Advantaged"?
• Independent funding assessments.
  • The Financial Impact of Your Book Reserve Plan
  • Independence - Who Cares?
• Independent benefit calculations.
  • Independence - Who Cares?

Compensation Analysis

• Endaka


• Valuation of executive perquisites.
• Expatriate packages.
  • Other Expatriate Support Issues
  • Your House Back Home
• Local compensation.
  • Macro vs Micro.

General Actuarial

• The Lia TOC
• Retirement Plan Gain & Loss
• The Vesting Normal Cost
• Confidence in the Report
• Merger/Acquisition due diligence.
  • Mergers & Acquisitions - What do the numbers mean?
  • Settlements and Curtailments
• Present value analysis.
• Net yield analysis.
• True yield calculations.
• Life values, premiums for annuities, multi life and unusual insurance products .
• Independent report/survey analysis and actuarial opinions.
  • Independence - Who Cares?

Computer Software

• Security.
• Time To Do It Write! Time To Do It Over.


• Secure email transmission for client data available through custom encryption.
• Totally customized encryption single-key programs available to non-clients.
• Custom and turnkey software for lease or purchase.
• Program debugging.
• Software selection, purchase and installation.

Consulting Responsiveness

• Why


• Valuation results can be available within 10 working-days of final data.
• Less than 5 working-day turn-around is available.
• Large selection of decrement tables available.
• Select discount rates available.

Pretty Good Computer Hardware

• Pretty high-speed processors.
• OK main memory.
• OK capacity hard disks (yeh, even on the laptop).
• Communications; fax, internet, email (secure) and a telephone or two.
• Desktop publishing (you should see our nengajo!).

Software written specifically for Japan

• All work is completed locally
• All client data remains in Japan.
• Local meetings are easily arranged.

Consulting Credentials

Professional Fees

• Professional fees are based on the time actually spent tackling the client assignment, without any "overhead," "profit" or "office expense" loading.
• Out-of-pocket expenses are billed as incurred in addition to professional fees.

Valuation Charge

• \\2,050,000 for a guaranteed 21-working-day turnaround. Faster service is subject to a surcharge. Please E-mail for details.
  • But, once held, aren't the accruals close enough to the Net Periodic Pension Cost calculated under FAS 87? (note: fee mentioned in article is 1997 fee).

Computer and Other Office Equipment Costs

• Free except for a fixed royalty for certain proprietary software programs.

Actuarial Valuation

• The purpose of the actuarial valuation is to provide information to management about the magnitude of pension and other promises. Management uses this information to satisfy auditors and to track the progress of funding.
• The valuation can also be used to help negotiate with the insurer or trust bank that is handling the pension plan. Without independent evidence that premiums are excessive, their word will be final. When a company is considering external funding, an independent valuation can help identify appropriate levels of cross investments that the insurer or trust bank should be making in the enterprise.
• Finally, a valuation should always be looked to in the due diligence process. It will help identify distortions in the purchase price or other conditions prior to consummation.

Cashflow Analysis

• When a company is considering changing funding approaches, it's important that the actual cost of making the change be shown.
• If the change is to a higher degree of funding, what is the actual value of the lost book reserve tax deductions? Will what was previously a net cash inflow, after taxes, become a net cash outgo? What are the realistic payout swings that might be expected from year-to-year?
• Where a company is reducing or eliminating external funding, how long will it take to amortize the lost assets? What employee benefit adjustments are needed to equalize the extra benefits paid on the change?

Plan Design and Review

• What benefits at what levels should be provided employees? When benefits are being adopted or changed, what will their impact be on earnings? Are there off-balance sheet liabilities that are being generated and how much are they worth?
• Does the local program fit with global strategy promulgated by the parent organization? Can it be made to fit?

Executive Compensation Analysis

• When an executive is being hired, the value of lost benefits from his prior position may be a consideration in the levels and forms of pay in his new position. We help companies know the cost of keeping new executives "whole." We also help them design acceptable programs that ensure the desired result.

Index to
| Lohmann International Associates |