Lohmann International Associates
Leslie John Lohmann, FSA, FCIA, CCP
Canadian Pension Actuaries, United States Enrolled Actuaries and Employee Benefit Consultants Serving the International Community
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Last Updated January 20, 2006
The Lohmann International Actuarial Report
The report is designed to provide
everything that a Japan accounting rules, FRS 17, IAS 19 or FAS 87/106
reviewer/auditor might need to know that the work was done professionally and to the highest
standard in the world. The scope
of this retirement/pension plan report goes beyond minimum requirements;
- Most recent complete and cleansed employee data possible is used.
- Permits an inexpensive audit of who's included - the auditor does not need to
know the participation rules of the plan, since all employees are included.
- Permits a very accurate projection of future expected benefits and costs, since
employees not currently eligible for benefits will be eligible in the future.
- Incorporates all restructuring/hiring initiatives through the data collection date
- Data is fully cleaned - auditor need only check for completeness.
- Age/Service/Pay or Points charts
- As with the use of complete, cleansed data, another actuary can easily determine
the important employee statistics and reach a comfort level that the valuation was
- Useful in an employee data audit also.
- Full plan description
- Permits any reader of the report to know what plan was actually valued.
- Changes are easily tracked.
- Full actuarial disclosure; methods and assumptions
- The attribution method, including why it was chosen.
- Sum of immediate termination benefits - voluntary and involuntary
- Permits an easy check on the accuracy of our understanding of the plan.
- Shows the two important high-risk/cost termination scenarios for all interested
- Sum of total future old-age retirement benefits, ignoring timing - with and without a
- Provides an idea of the totality of promises made.
- Permits an evaluation of the impact of future pay increases.
- Gain and Loss detailed analysis (optional in first year)
- Helps confirm the accuracy of the work.
- Shows materiality of actuarial assumptions.
- Includes benefit-weighted pay averages and actual increase/decrease turnover
- Discount rate sensitivity (1% change, usually an increase)
- Shows materiality of this assumption.
- Permits easy estimates of changes.
- Full one-year actuarial projection
- Forms basis for detailed gain and loss the following year.
- Permits highly accurate income statement forecasting for the next fiscal year.
And much, much more. Incidentally, where the retirement plan auditor needs something
outside our normal scope, we will begin providing it with every valuation after that.
The Lohmann International Actuarial
Report provides an extremely cost-effective approach to resolving the retirement plan
accounting issues that you might encounter, including minimizing expensive auditor time.
Our business philosophy is to solve your problems before they become your problems.
Copyright © 2006
Lohmann International Associates All Rights Reserved
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