Guideline 9. Reporting

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In preparing a report on the actuarial valuation of a social security scheme, an actuary considers legislative requirements and relevant professional standards and guidance, as well as the intended audience.

A report on the actuarial valuation of a social security programme could be considered as a final product of the actuarial valuation process. It is a tool that provides stakeholders with information necessary to make responsible decisions with respect to a social security scheme. As such, a social security institution as well as the actuary should make every effort to prepare a comprehensive, transparent and explicit report on the actuarial valuation. This guideline should be read in conjunction with Guidelines 11, 25, 26, 27 and 28.

Guideline code

ACT_01000

Mechanism

The actuary responsible for the analysis should comply with national and/or international actuarial standards of practice and/or other relevant guidance including IAA ISAP 1 and ISAP 2 that address the communication related to the actuarial valuation including the content of actuarial reports.
The social security institution should allocate resources for communication and translation, if applicable, to assist an actuary in the preparation of the actuarial report.
The social security institution and the actuary should discuss on a regular basis which areas of the actuarial valuation should be addressed through additional technical communication. As a result of such discussions, a schedule of additional reports (e.g. actuarial studies or educational notes) to be performed should be prepared.
The social security institution and the actuary should determine which additional communication should be prepared in order to enhance stakeholders’ understanding. Such communication may include, among others, glossaries, summaries of legislation, programme provisions and additional statistical information.

Parent

A. Valuation of Social Security Schemes

Structure

Principles

The report on the actuarial valuation should contain sufficient information to permit the conduct of the independent expert review (see Guideline 11) and to allow stakeholders to make sound decisions based on the results set out. It should be written in such language as to be understandable and unambiguous for all stakeholders, including those without an actuarial background.
The report on the actuarial valuation should contain an opinion describing the actuary’s views on the appropriateness of data, assumptions and methodology as well as other material elements of the performed work. This opinion should be signed by an actuary who fully meets the professional requirements for making such an opinion as set down by the national actuarial organization and recognized by the International Actuarial Association.
The social security institution should ensure that reports on the actuarial valuation as well as any supplemental information with respect to the actuarial valuation are available in all relevant languages.
Additional communication may be required in order to address needs of a more technical nature as well as to facilitate the understanding of the report by stakeholders.

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