Excellence in administration

  • Guidelines:
  • Actuarial Work for Social Security

Excellence in administration

  • Guidelines:
  • Actuarial Work for Social Security

Actuarial Work for Social Security -
Guideline 24. Input into the valuation of assets and benefit calculations

The social security institution involves the actuary in the processes which determine an appropriate value to place on the scheme’s assets.

Placing an appropriate value on assets is important and may be required for a number of different reasons, including the need to assess the financial situation of a social security system and to determine benefit amounts.

In certain programmes, the value of benefits of current and/or future beneficiaries is directly or indirectly related to the value placed on assets.

The determination of assets value may also trigger the application of any automatic adjustment mechanism (see Guideline 20 on automatic adjustment mechanisms).

This guideline should be read in conjunction with Guideline 7 which covers issues related to the valuing of assets for valuation purposes.