Actuarial Valuation Method
Employer Employer Retirement Plans - defined contribution or benefit plans (other than government pension plans) that:
1) combine assets contributed by different companies that are not under common control;
2) use these assets to provide retirement benefits to employees of several companies, provided that contributions and pensions are determined regardless of the company in which the employees who receive them are employed.
11.20. The method of the projected conditional unit is used to determine the present value of the obligations under this pension plan and the cost of current services.
11.21. With this method, each period of service is considered as the basis for an additional right to a pension, and each conditional pension unit is assessed separately for the purpose of forming obligations at the end of the period.
Distribution of benefits by service periods
11.22. The company distributes awards for the periods of service in which there was an obligation to pay remuneration at the end of employment, according to the formula set out in the plan. The obligation of the company arises as far as the provision of services by employees.
11.23. Use impartial and mutually comparable actuarial assumptions about demographic variables (eg, staff turnover and mortality), as well as financial variables (for example, future wage increases and certain changes in remuneration).
Real value - the amount of cash that can be exchanged for an asset or which is sufficient to fulfill an obligation when the deal is concluded between knowledgeable, willing to make such a transaction and independent of each other.
11.24. The rate used to discount the company's obligation to provide remuneration at the end of employment is determined on the basis of market yield of government bonds or high-quality corporate obligations.
11.25. To assess commitments, you must consider:
• the future increase in wages (taking into account inflation, promotion, etc.);
• remuneration established by the terms of the plan;
• the future change in the level of public pensions, which affects the company's obligations under the terms of the plan.
Plan assets are assets owned by the organization (except for non-transferable financial instruments issued by the reporting company) that meet the following conditions:
1) the organization is legally separated from the reporting company;2) assets are used only to fulfill obligations to pay pensions to employees, are not available to collect creditors of the company and can not be returned to it (or can be returned only if the remaining assets of the fund are sufficient to fulfill the obligations under the plan);
3) the company does not have legal or traditional obligations to pay pensions to employees directly.
11.26. When assessing the cost of medical care, the future change in the cost of medical care is taken into account.
Actuarial gains and losses
11.27. The Company recognizes its actuarial gains or losses as revenues or expenses if the accumulated actuarial gains or losses exceed the largest of the values:
• 10% of the present value of the defined benefit obligation (before deducting plan assets);
• 10% of the fair value of any plan assets. The minimum portion recognized for each defined benefit plan is an excess that exceeds the 10% corridor for the previous reporting date divided by the expected average remaining work experience of employees participating in the plan. These profits and losses are allowed to be recognized even earlier.
Actuarial gains and losses include:
1) experience-based adjustments (the result of differences between the initial actuarial assumptions for future events and what actually happened);
2) the results of changes in actuarial assumptions.
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