KAP's Interest Rate Updates for Employee Benefits as on 31 December 2023

December 31, 2023

Comments & Insights

Interest Rates Around the World

The world market is facing recession due to which there has been a decline in the Interest Rates. An impact of such a recession has led to a decrease in rates as on 31-12-2023.

Comparison with 31-03-2023 Yield

As compared with 31-03-2023, rates have decreased for each tenurewith an average decrease of 4 bps. However, the minimum decreaseis of 15 bps for tenure 1 year and maximum of 11 bps for tenure 3year.

Impact on Obligation

Decrease in yield will lead to an increase in Obligation leading toLoss due to change in Financial Assumptions, if all otherAssumptions remain the same.

Impact on Asset

Increase in Fair Value of Plan Asset wherever company needs toperform MTM valuation.

Insights

Actuarial Thinking for Business Brilliance

Our Insights blend analytical rigor with strategic foresight, helping businesses navigate uncertainty with confidence. By quantifying risk and modeling future outcomes, it empowers smarter decisions, sustainable growth, and long-term value creation.

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Volatility in the Interest Rate March 2017 v/s June 2017

Employee Benefit Obligations are to be valued based on G-Sec rate of estimated term as prevalent at the end of the reporting period.

Topic to be covered: Volatility in the Interest Rate March 2017 v/s September 2017

Employee Benefit Obligations are to be valued based on G-Sec rate of estimated term asprevalent at the end of the reporting period.

KAP’s Interest Rate Updates For Employee Benefits as on 30th June 2025

Summary of G-sec rates and par yields for employee benefits as of 30th June 2025.

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