Institute of Social Security of the State of Guanajuato

Aligning strategic planning with actuarial requirements: Implementation of the Integrated Strategic Planning System with targets that align with the actuarial study

Implementation year

Over the past 20 years, Mexico’s Institute of Social Security of the State of Guanajuato (Instituto de Seguridad Social del Estado de Guanajuato – ISSEG) has successfully managed to consolidate its actuarial viability. Currently, projections suggest the viability of ISSEG activities is ensured until 2082, if the organization achieves a 4 per cent real rate of return per annum on its reserve. If this return is 100 basis points lower (3 per cent real rate of return), viability is projected to the year 2055, a difference of 27 years. With a real rate of return of 2 per cent, the organization’s viability would be ensured until 2048.

Given the above, it is of utmost importance to ensure that the ISSEG’s investments, which constitute the actuarial reserve (loans to members, financial, commercial, and real estate investments) generate a real rate of return of 4 per cent per annum to guarantee viability until 2082.

To achieve this, it was necessary to implement an Integrated Strategic Planning System (Sistema Integral de Planeación Estratégica – SIPE), with individual targets for each resource-generating department. These will come together to achieve the overall real rate of return of 4 per cent per annum. The system also includes targets for the supporting departments that will contribute to meeting this overall goal.

Governance and administration
Continuity and resilience