Plan Design & Redesign

(Re)design of retirement benefit plan is a highly challenging project as it involves different parties and has significant impact on the company’s financial status, and it may affect employee motivation.

JP Actuary brings extensive knowledge and a broad range of perspectives to achieve the goals of a client, such as to bring consistency with other compensation schemes;
Effective cost control;
Visible and easy-to-understand program for the employees; and
Flexibility to cope with potential organizational changes and so forth.

Scope of our work includes the following;

  • Analyze the existing arrangement and clarify issues
  • Propose alternatives with pros & cons
  • Design a new plan and transitional measures in details
  • Estimate any one time cost for transition and cash flow
  • Project future running cost and cash flow of the new plan
  • Strategize employee / union communication
  • Assist and attend briefing sessions
  • Prepare new provisions and make necessary adjustments with related rules of employment
Phase 1 Phase 2 Phase 3 Phase 4
Analysis of the Existing Plan Design Detailed / Transition Design Implementation Support
  • Clarify issues with the existing plan
  • Understand benefits cost and liability and their future trends
  • Understand funded status and employer contribution (if any)
  • Understand employees’ entitlement
  • Alternative plan options and Pros/Cons of each
  • Analysis of financial impact
  • Alternative plan proposal
  • Finalize the accrued benefits (individual entitlement ) at transition
  • Finalize the transition method
  • Finalize details of pension plan provisions
  • Analyze financial impact
  • Provider selection
  • Employee communication support
  • Assistance with plan application and approval
  • Adjustment with related rules of employment

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