Assumptions on Mortality table, Attrition Rates, Retirement Age

Charan Gupta Consultants Pvt. Ltd offers a range of actuarial services to its clients or customers. It helps companies with solutions to more than one queries pertaining to employee benefits. The solutions offered by the Charan Gupta Consultants Pvt. Ltd are trustworthy and reliable. The business offers its customers

  • Evaluation of Employee gratuities
  • Deal with leave encashment liability
  • Evaluation of post- retirement benefits
  • Medical benefits
  • Evaluation of employee pensions

While making different actuarial calculations the business makes certain assumptions.These assumptions can be broadly classified under two components

  • Financial
  • Demographic

Apart from assumptions like 1) discount rate, 2) estimates of future salary hike, the other assumptions include 3) Mortality table 4) attrition rates 5) retirement age.

The assumptions on mortality table are made as per the guidelines of the Institute of Actuaries in India. However, the assumptions on attrition rates are based on the past experience as well as the company’s HR policy for the future. In this context it is relevant to say that the new and the unstable companies have high values of attrition rate. The stable and large industrial establishments may have a withdrawal ratio of 3:2:1.

Assumptions on retirement age are furnished by the company.