The actuarial measures of the social security programme are well defined and documented to enhance accountability, transparency and predictability in the administration of each of the social security programmes established by the institution.
Guideline code
GG_07600
Mechanism
Mechanism
- The financial sustainability and actuarial measures of the social security programme should be well defined and documented. These measures may include policies or rules of thumb on the minimum actuarial life of the funds, a minimum funding ratio and/or benchmarks for returns on fund investments.
- A definition of what an “actuarially sustainable programme” means should be given.
- The setting authority should prescribe a time period for the board and the management to act on the findings and recommendations of the actuarial report.
- The actuarial measures of the programme should be published in easy-to-understand language for the information of all stakeholders, in particular, with reference to how benefit entitlements are determined vis-à-vis member contributions.
Structure
Structure
- Legislation, policy or decree should identify the competent authority to determine the design, the actuarial measures and the financial sustainability principles of the social security scheme, to decide on any changes in its features, and to ensure compliance with these measures or principles.
- Legislation, policy or decree should designate an authority to monitor compliance with these measures, and to deliberate and decide on any proposed changes to the measures.
Title HTML
Guideline 58. Actuarial measures of the social security programme
Type
Guideline_1
Weight
80