Actuarial valuations of employee benefit provisions
ks actuaries prepares actuarial reports for pension, severance and long-service award provisions for businesses throughout Austria. Our reports comply with UGB (AFRAC Statement 27), EStG and IFRS (IAS 19) and are prepared by recognised actuaries of the Austrian Society of Actuaries (AVÖ). Since 2001, we have supported many of our clients year after year with their annual financial statements.
The obligations we value
- Pension provisions for direct defined benefit commitments (company pensions)
- Severance provisions under the legacy Austrian severance system (Abfertigung alt)
- Long-service award provisions
- Other long-term employee benefit obligations, such as partial retirement, early retirement schemes, benefits in kind or health insurance subsidies
The standards we apply
- UGB, including AFRAC Statement 27 – for statutory financial statements under Austrian commercial law
- EStG – for tax valuations (Section 14 of the Austrian Income Tax Act)
- IFRS / IAS 19 – for consolidated financial statements and international parent companies
- US GAAP (ASC 715 / FAS 87) and UK GAAP – for subsidiaries of international groups
Additional services for pension commitments
- Calculation of vested benefits under the Austrian Company Pension Act (Betriebspensionsgesetz)
- Settlement calculations and transfers of accrued entitlements, for example to a pension fund
- Valuation of purchase price annuities and life annuities
- Provision forecasts for budgeting and planning
- Employee turnover, salary and sensitivity analyses
- Advice on discount rates and valuation assumptions (e.g. AFRAC average discount rates and IAS 19 discount rates)
Who we work for
Businesses in industry, commerce and services, municipalities and public-sector organisations, as well as tax advisers and auditors who need reliable actuarial reports for their clients at the reporting date. Reports are also available in English on request.
How an actuarial valuation works
- Enquiry: You send us the reporting date, the applicable standard (UGB, EStG, IAS 19) and the number of employees or commitments. We provide a quotation.
- Data: We send you a template for employee data (date of birth, employment start date, remuneration and benefit commitments).
- Calculation: We check the data for plausibility and calculate the provisions.
- Report: You receive the actuarial report with accounting values and explanations – in time for your annual financial statements.
Why ks actuaries
- Specialists in employee benefit provisions since 2001
- Recognised actuaries of the AVÖ
- A dedicated personal contact, not a call centre
- Reliable delivery dates, including during the year-end reporting season
Frequently asked questions
When do I need an actuarial report?
When your company has pension, severance or long-service award obligations and recognises provisions for them in its financial statements. In practice, an actuarial report is always required for pension provisions; for severance and long-service awards, AFRAC 27 recommends it as the appropriate way to ensure a correct valuation.
What data do you need from us?
For each employee: date of birth, sex, employment start date, current remuneration and the relevant benefit commitments. For pension commitments, we also need the pension agreement itself. We provide a straightforward Excel template.
How long does an actuarial report take?
Usually one week after we receive complete data. For year-end valuations, we recommend contacting us early.
How much does an actuarial report cost?
The price depends on the type of obligation, the applicable standard and the number of employees. You receive a binding quotation in advance.
Which discount rate is used?
Under UGB/AFRAC 27, either a reporting-date rate or an average rate over 7 or 15 years may be used; IAS 19 uses yields on high-quality corporate bonds. We advise you on the approach that suits your financial statements.
Do you also prepare reports for tax advisers and auditors?
Yes. Many firms commission us each year on behalf of their clients.
Also of interest: Actuarial projects & risk modelling