[F32][Business] Adaptive solutions - Case: Deferred income / Large companies
Situation: The company had commitments to its employees regarding annuity pensions. The calculation of these annuities was linked to the workers' salaries, and therefore their increase linked to the CPI.
Problem: Since the CPI is not a fixed percentage over time; this meant it was a variable that could compromise future costs, despite the fact that the company adequately reserved amounts to ensure the required levels for the commitment.
Solution: After studying the situation, Vida Caixa Social Welfare devised a formula whereby the client could contract a CPI guarantee regarding the annuity growth.
An investment product was designed that guaranteed the evolution of the CPI independently of what it actually might be, and without supposing a premium increase for the assured.
"The solutions here described correspond to real cases presented to VidaCaixa, with certain details that have been altered to protect the confidentiality of our clients and their business. They are given merely as a general guide and are not necessarily applicable in similar cases."