STRATEGIC EMPLOYEE BENEFITS & SHARE-BASED PAYMENT SOLUTIONS

We understand that a well-structured employee benefits program is crucial for attracting, retaining, and motivating talent, directly impacting your organization's success. Our dedicated Employee Benefits team provides comprehensive advisory services, helping you navigate the complexities of traditional benefits and innovative share-based payment schemes to align with your strategic objectives and ensure long-term value.

Guidance for both DB Pension and for DC Savings Schemes

Lux has many years’ experience in advising Employers and Trustees on private and public sector employees' pension schemes.

Our expertise in these employee benefits schemes encompasses:

• Scheme Governance, Compliance, and Risk Management: We offer robust advice to ensure your pension and savings schemes are managed effectively, adhere to all regulatory requirements, and that associated risks are identified and mitigated. This includes navigating the evolving compliance landscape and establishing strong governance frameworks.
• Investment Strategy: Our team provides insightful guidance on developing and implementing investment strategies tailored to your scheme's profile and objectives, aiming to optimize returns while managing risk.
• Member Communications: Clear and effective communication is key to employee engagement. We assist in developing strategies to ensure scheme members understand their benefits and the value they provide.
• Defined Benefit (DB) Scheme Specialization: For organizations with DB schemes, we offer specialized advice on actuarial valuation models, sophisticated cash-flow and funding level projection, liability-driven investment (LDI) strategies, and guidance on potential migration paths to Defined Contribution (DC) schemes where appropriate.
• Pensions Management Services: We provide ongoing support and actuarial services for the efficient management of your pension schemes.
• Corporate Advice for Scheme Sponsors: Our team offers strategic counsel to Scheme Sponsors on all aspects of their employee benefit obligations and opportunities.
• IAS 19 Valuations

Expertise in Share-Based Payment Benefits (LTIP, ESPP, ESOP)

In a competitive landscape, share-based payments are powerful tools for incentivizing employees and aligning their interests with long-term company performance and shareholder value.

We offer specialized actuarial and advisory services for various forms of share-based compensation, including:

• Long-Term Incentive Plans (LTIPs): We assist in the design, implementation, and valuation of LTIPs, which reward employees for achieving specific long-term performance goals. Our services ensure these plans are structured effectively to motivate key talent and drive sustained growth. This includes advising on performance metrics, vesting schedules, and financial reporting implications.
• Employee Stock Purchase Plans (ESPPs): Lux Actuaries provides expert guidance on ESPPs, enabling employees to acquire company stock, often at a discount. We help you structure these plans to be attractive to employees while meeting regulatory and accounting requirements, fostering a culture of ownership.
• Employee Stock Ownership Plans (ESOPs): We offer comprehensive services for ESOPs, a qualified retirement plan that provides employees with an ownership interest in the company. Our expertise covers initial feasibility studies, valuation, plan design, implementation, and ongoing actuarial support to ensure compliance and maximize the benefits for both the company and its employees.

Our actuarial services for share-based payments include:

• Valuation Services: Performing robust and defensible valuations of share options and awards for financial reporting (e.g., under IFRS 2 and ASC 718) and for determining the fair value for participants.
• Plan Design and Strategy: Collaborating with you to design share-based payment plans that align with your business goals, talent strategy, and financial objectives.
• Financial Impact Analysis: Modeling the financial implications of different plan structures to help you make informed decisions.
• Accounting and Regulatory Compliance: Ensuring your share-based payment plans comply with relevant accounting standards (such as IFRS 2) and regulatory requirements. We provide guidance on expense recognition, disclosure, and the impact on financial statements.

Actuarial Valuations for Financial Reporting

We are proficient in performing actuarial valuations of all types of employee benefits in accordance with International Financial Reporting Standards (IFRS), including IAS 19 (Employee Benefits) and IFRS 2 (Share-Based Payment), as well as US GAAP. We provide accurate and timely valuations essential for your financial reporting and regulatory compliance needs, covering everything from pension liabilities to the complex accounting for share-based compensation.

Partner with Lux Actuaries

By partnering with Lux Actuaries, you gain access to a team of experienced professionals dedicated to providing tailored solutions that optimize your employee benefits and share-based payment programs. We empower you to attract and retain top talent, foster employee engagement, and drive sustainable business success. Contact us today to discuss how we can support your organization.