For Kas Bank NV, we developed a user-friendly application that enables calculation – in varying conditions – of the market value of financial products that have already been issued and future interest received and paid. By performing calculations for a large number of simulated interest term structures and by analysing their outcomes, we can quantify (among other things) the interest risk of Kas Bank NV (not open to the general public).
The development of salary costs in education
Estimates of the ILC and BAPO development 2006-2015
Contact: Marike Knoef and Hendri Adriaens
The Education Ministry (OCW) needs to have a grasp of the development of salary costs in education, which involves the Incidental Wage Component (ILC), which are salary costs due to increments and promotions, and the regulation for Promoting Labour Participation by Senior Citizens (BAPO), a regulation that allows employees of 52 years or over to reduce their annual workload by sacrificing part of their salary. In 2007, the Ministry asked CentERdata to analyse ILC developments and BAPO use.
. ILC developments are closely related to work experience and, hence, the age structure of employees in Primary Education. Using forecasts of the age structure for the different groups of staff in education, we calculated the future salary costs for the 2006-2015 period. The starting-point in these prognoses was MIRROR. We also analysed the development of BAPO use and investigated and estimated the effect of BAPO use on ILC developments.
With the switch-over to the lump sum funding in education, school governors themselves now bear the risks of BAPO use. Individual school governing bodies wondered if they were able to defray these costs. Commissioned by the Ministry, we carried out individual scenario analyses of BAPO use and the costs involved for a number of school governing bodies.
