The social security institution decides whether internal or external expertise is to be used to carry out the actuarial work related to social security schemes. The social security institution seeks to develop the internal actuarial expertise to perform actuarial work for a social security scheme.

The choice of whether to use external or internal actuarial expertise should be made in the context of the particular social security institution and should take into account the environment in which the institution operates. In making this decision, the social security institution should consider the needs and characteristics of all social security schemes falling under the institution’s responsibilities. Given the different potential areas of actuarial involvement, the choice regarding internal or external actuarial input may depend on the type of work that needs to be undertaken.