The board (if any), management of the social security institution and the actuary communicate clearly and effectively. This exchange of information improves management but doesn’t negatively impact the independence of the actuary.
Guideline code
ACT_02900
Mechanism
Mechanism
- The actuary should present to the board and management preliminary as well as final results of any actuarial valuation. Presentations should cover the main elements of the actuarial review: data, assumptions, results and recommendations.
- The board and management of the social security institution should be provided with the opportunity to review the results of the actuarial work (e.g. actuarial reviews) and provide their feedback to the actuary. The actuary should consider this feedback and explain whether it was or was not taken into account and why.
- The actuary may be asked to provide additional information to board members by explaining different aspects of actuarial work including technical details.
- The actuary should submit the report summarizing the results of the actuarial valuation to the board and management of the social security institution.
- The frequency of such updates should be at least the same as the frequency of the full actuarial valuation. Additional updates on a more frequent basis should be encouraged to improve management processes and may be required if supplementary actuarial valuations are performed (see Guideline 1), or the stakeholders require more frequent communication (e.g. annual).
Structure
Principles
- In the exchange of information there should be complete transparency between the board, management and actuary.
- The actuary should provide the board and management of the social security institution with regular updates (unless there are exceptional circumstances, not less frequently than annual) with regard to the financial situation of the social security schemes administered by the institution. These updates may be based on a full or updated actuarial valuation or other appropriate mechanism which seeks to provide a realistic indication of the financial situation of the schemes at the reporting date.
- While respecting the independence of the actuary, the board and management of the social security institution should be able to provide their input into all aspects of the actuarial work undertaken.
Title HTML
Guideline 25. Communication between board members, management and the actuary
Type
Guideline_1
Weight
32