The social security institution provides stakeholders with regular, timely and comprehensive information on the actuarial status of the social security scheme. The social security institution informs stakeholders, in a timely manner, of any changes in the scheme’s provisions and their impact on the sustainability of the scheme and adequacy of benefits.
The regular and timely communication of the findings and recommendations of the actuarial valuation to programme stakeholders and decision-makers is a crucial step in maintaining the sustainability of social security arrangements and ensuring that the scheme meets its objectives.
Guideline code
ACT_03100
Mechanism
Mechanism
- The social security institution may submit actuarial reports to the appropriate minister for tabling with the legislative body. This process should be defined either by legislation or by an internal policy.
- The stakeholders should be informed about the release of the actuarial report as well as of the release of the report of an independent expert review. This may be accomplished though press releases, press conferences, social media, direct communication to stakeholders’ associations, etc.
- The social security institution should communicate the findings of the actuarial report and of the external expert review to stakeholders. This may be accomplished through a combination of web and hard copy publications.
Structure
Principles
- The social security institution should communicate to policy-makers in a timely manner (as set out in Guideline 26) the results of the actuarial review of the social security scheme. The best approach is to submit reports to the legislative body of the country (e.g. Parliament) for a transparent discussion and to make the actuarial report publicly available.
- The social security institution should share the information regarding the actuarial review with the scheme’s stakeholders including workers and their representatives, employers, pensioners, etc.
- The social security institution should develop and document a policy on communication with respect to the actuarial review and ensure that it is carried out in practice.
- Material changes to social security provisions such as contribution rate increases, changes in benefits or increases in eligibility age may be required over the long term. The actuary should conduct an actuarial valuation which determines the financial impacts of such changes. The results of such a valuation should be communicated to the stakeholders.
- The social security institution should inform stakeholders regarding possible changes well in advance of the effective date of such changes. This allows the population to understand the importance of future reforms and adjust behaviour, as well as providing for appropriate transition periods and sufficient time for supporting policy and administrative measures.
Title HTML
Guideline 27. The social security institution’s responsibilities with respect to actuarial reporting and communication of changes in scheme’s provisions
Type
Guideline_1
Weight
34