Excellence in administration

  • Guidelines:
  • Actuarial Work for Social Security

Excellence in administration

  • Guidelines:
  • Actuarial Work for Social Security

Actuarial Work for Social Security -
Guideline 43. Designing a new or changing an existing social security scheme

While effectively involved with governmental bodies in the design and implementation of a new social security scheme or of changes to existing social security scheme, the social security institution advises all parties involved with respect to design features of the scheme and its actuarial and policy implications. The social security institution seeks the input of actuaries in this process.

In designing a new or adopting changes to an existing social security scheme, the involvement of all stakeholders, namely, representatives from the government, employers and workers, is essential. Members of society should be able to participate in the processes that will have a direct impact on their lives. The benefit design should be developed in line with the needs and rights of those intended to receive the benefits. Opportunities for stakeholders to be involved in the design process will contribute to enhancing their trust and support for the scheme through a sense of ownership, as well as increasing the likelihood that benefits are closely aligned with society’s needs.

The social security institution overseeing the design of a social security scheme plays a critical role in this process by providing policy and actuarial expertise to all stakeholders. Actuaries are essential in evaluating the various impacts of proposed designs of a social security scheme.