consulting-services

Consulting Services

Employee retirement benefits in India are either statutory or voluntary in nature. Complexities surround their design, structure and regulation. Our consulting service assists stakeholders of these plans in various phases of their life cycle. Our capabilities are not limited to strategy alone. We further help the organizations with implementation and execute the changes as well.

Our credentials across industry sectors demonstrate a better understanding of the Indian retiral structures and the nature of services are defined below.

Benefit design & structure

Being an independent advisor with extensive knowledge and experience, India Life Capital’s retirement benefits consulting practice can help organizations with plan design, strategy, feasibility and implementation. We undertake detailed assessments to understand the client’s requirements, determine the plan design and framework for implementation.

Assessment studies

Our services can provide structural and financial analysis of options and insight to support corporate decision making, with the overall objective being to meet the legal and regulatory obligations. We have done extensive work on corporate actions and the resulting impact on retirement benefits design and implementation

Harmonization of employee benefits

We have undertaken assignments related to harmonization of employee benefit structures for large organisations. Such assignments are apt for large organisations with multiple businesses / entities / locations with different employee benefit structures. Possibilities exist around their alignment into a similar structure, thus lowering costs and improving administrative efficiencies.

Assurance studies

Benefits structures grow in size and coverage as the organisations (employer / sponsor) grow and thus the need for strengthening governance around the same. Assurance studies conducted by us aim at improving governance. Oversight, controls, funding, vendor assessment, compliance and health checks are important focus areas of such studies. Deliverables are in the form of reports that provide stakeholders the state of the overall health of the benefit program from a functional and governance perspective with detailed suggestions on changes. Post-study the relevant mitigation is also advised and can further be executed by India Life Capital.

Implementation

Complex nature of regulation surrounding retirement benefits requires support when being implemented. Our capabilities in documentation, articulation of design, set-up and closure help us facilitate implementation activities of various kinds.

Trustee/Fiduciary Training and Orientation

The role of the Trustee/Fiduciary has evolved in retirement benefits. This has been driven by increased regulation, enhanced governance, redefining needs of oversight and by changing beneficiary needs. The constant need to be on-top of the role as a fiduciary necessitates ongoing training and orientation. Our trustee training programs help organizations orient trustees and other stakeholders in the overall functioning of the programs including sensitizing them to their roles as fiduciaries.

Formulation
of Trust Deed
& Rules

Analysing and
executing impact
of corporate
actions

Plan
assessment

Wind-up
of Trusts

Harmonization
of benefits

Plan design
& structure

Trust set-up

Regulatory
approvals

Trustee training
& orientation

Evaluation
of options
available in case
of change in
regulation

Assurance
studies

Vendor
evaluation
(for benefit
administration)

Merger &
De-merger
of Trusts

Consolidation
of retirement
benefit
compliances

Value adds

Experience resulting from an active consulting business

Comprehensive understanding of Indian Provident Fund / Pension regulation & investment governance

Set-up and implementation for over fifty retirement trust funds

Have developed a deep understanding of the subject matter including trust investments

Core team has been with India Life Capital since inception

Work with trustees across industries & organizations with varying levels of complexities & governance structures

Work with trustees across industries & organizations with varying levels of complexities & governance structures

Familiar with industry best practices

Help resolve issues faced by trustees on matters related to compliance & regulation

Regularly interact with the Regulatory bodies

Are able to voice concerns of trustees of retirement trusts with the media and industry bodies

Case Study

Client

Energy company

Mandate
  • Consolidation of retirals and implementation of a governance program for retirals
Description
  • The company had multiple structures for retirals across the country. After merging various constituents, the need for a single structure was felt
  • The objective of the assignment was to effect this consolidation
Scope of work
  • Whitepaper on existing structures with options, roadmap and feasibility
  • Integration of multiple structures of retirals across six locations with nods from regulatory bodies
  • Implementation of the governance program
  • Appointment of a new administrator
  • Shift of the gratuity and superannuation plans to a managed fund model
  • Closure of all legacy trusts
Challenges
  • Significant differences in benefits design and funding resulting in differentiation in employee entitlement
  • Conflicting methods adopted by regulators across the country
  • Nature of the project and its duration meant that it would impact employee services
  • Absence of data for long periods of time in legacy trusts
Value additions
  • India Life Capital was able to execute this project over a period of 22 months
  • As an outcome, the client had a single structure in each benefit
  • Legacy trust funds were closed
  • Manuals covering various aspects of the functioning of the Trusts were set up and an audit process implemented
  • The functioning of the Trusts aligned to global pension standards as required by the client