Our process for a full valuation is based on seven stages.
Stage 1 – Planning Meeting
We will arrange an initial planning meeting to discuss the required deliverables and timelines for the project. Following the meeting, we will send a secure link to the project site with project plan details. We will also follow up with a request to receive required valuation data and plan information.
Stage 2 – Data Transfer
At this stage, we will work with our client to determine the most effective way to collect the valuation data and plan information.
If we have not performed the prior valuation, we will also request a copy of the previous valuation data to enable us to "true up" the results produced by our valuation tool with those produced by your previous provider.
Stage 3 – Data Validation
We will review the data for reasonableness and completeness. We have a formal process we follow in validating the data. Based on our review, data queries are provided to the client with responses incorporated into the final valuation data file.
We will then provide a summary of the data statistics (i.e. total headcounts, average age and service) and reconciliation of the valuation data since the last valuation (i.e. number of new hires, terminations, retirements, deaths, etc.) for client review.
Stage 4 – Confirmation of Plan Provisions
We will prepare a summary of the key provisions of the benefit plans included in the valuation based on review of the plan information provided in Stage 2. A copy of the summary will be provided to the client for review.
Stage 5 – Confirmation of Valuation Assumptions
We will perform a detailed analysis of the plan's historical claims experience in order to assist in developing the proposed future claims cost assumptions. A meeting will be arrange to discuss each assumption with our client so that the impact of any changes to the assumptions is identified and understood in advance.
Stage 6 – Determination of Liability
Once assumptions have been settled, we will proceed to run the valuation. We will also perform a detailed analysis of the sources of gain and loss since the last accounting.
Stage 7 – Determination of Accounting Results
We will provide the required year-end accounting expense and disclosure, prepared in accordance with the required accounting standards. Our report will include all required disclosures prescribed by the accounting standards and complete details on the employee data, plan provisions and valuation assumptions and methods used to prepare the valuation. Our report will also include any recommended funding requirements (if applicable) and other content specifically requested by you.
For the interim years where an extrapolation valuation is performed, we are able to remove stages 2 and 3 provided there have been no significant changes in the employee data. For stage 4, we will simply confirm that there have been no changes to the plan provisions since the last year-end.
Our valuation projects are managed using web-based SharePoint to provide secure centralized file sharing and project management.