Valuation services
Page changed Tuesday, November 02, 2010
A company can use the book reserve system instead of paying insurance premiums. The method allows a company to retain pension capital in the business instead of advancing money to an insurance company. The pension capital can be used where it serves the company best.
Early retirement provisions are beneficial to post as a liability and credit insure. The pension can be paid simultaneously when they fall due instead of forwarding funds to an insurance company.
PRI Pensionsgaranti can provide calculations to support economic reporting and analysis of pension liabilities within the ITP-plan and for other pension plans kept in the book reserve systems. We assist you with valuations according to Swedish standards and according to IAS 19.
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What can enter as a liability in the book reserve method?
PRI Pensionsgaranti has administered and guaranteed pensions since 1961. Today, the majority of Sweden’s biggest companies apply the ITP 2 in book reserve method.
The largest liability volume is ITP 2, however, there are also companies that enter ITP 1 as a liability.
The ITP 2 liability is identical to ITP 2 that is to be insured, making it different from ITP 1 where companies adjust the method to suit their company and employees.
Even executive pensions are increasingly entering as a liability. This is due to the managers’ pensions that are now more easily linked to the performance of the company.