The social security institution communicates actuarial information in a way that is appropriate for the intended audience.
It is often difficult to communicate technical information to different stakeholders. These stakeholders include board members, parliamentarians and plan participants who will have different levels of skills, experience and expertise. The social security institution, with the assistance of actuaries, should work at preparing communications that address the needs of both technical and general audiences.
One particularly important area of actuarial involvement is the preparation of annual benefit statements sometimes provided to social security scheme participants. These should be accurate and provide comprehensive and clear information on a regular basis. Information should be determined using appropriate methodologies and assumptions. Since the annual statements often contain information of an actuarial nature, it is crucial for the actuary to be involved in the preparation of these statements.
This guideline should be read in conjuncture with Guideline 9.
- Actuaries should be able to present results of their work to different types of audiences. The social security institution should ensure that the actuaries it employs have an opportunity to develop strong oral and written communication skills.
- When presenting results of actuarial reviews or discussing other actuarial matters with the board and management of the social security institution, as well as with other stakeholders, the actuary should ensure that the information is presented in a way that enables stakeholders to make informed decisions.
- The actuary and the social security institution may issue several communications on a particular subject aimed at different audiences. These should be internally consistent.
- The social security institution should set up a procedure to assist members in understanding the annual statement of benefits. The actuary may be asked to assist the communication and administration departments in answering members’ questions and preparing explanatory materials.
- The publication of results of actuarial reviews may be accompanied by a communication (e.g. a press release or an executive summary) that summarizes in lay terms the main findings of the review. The actuary should assist in preparing such communications.
- Annual statements of benefit entitlements should be based on the provisions of the laws and regulations governing the scheme and individual historical records of contributions, earnings and credited service, as well as other pertinent individual information.
- Annual statements of benefit entitlement should describe applicable scheme provisions and provide benefit entitlements at the main eligibility ages.
- The actuary should work together with communication and administration departments of the social security institution to ensure the accuracy of the calculations and of the communication.
- The independent expert review should address the quality of the communication as a result of the actuarial work (Guideline 11). The social security institution and the actuary should carefully consider and implement, if practical, recommendations of the independent expert review on communication (Guideline 12).