As a part of sound social security scheme governance, the social security institution continually monitors the sustainability of a social security scheme.

The notion of sustainability may encompass not only financial but social and political sustainability. Public trust and confidence in the design, implementation and operation of the scheme are a major factor contributing to the sustainability of the scheme.

In respect of the financing of a social security scheme, the social security institution establishes a formal written funding policy which takes into account factors relevant to the scheme as well as the socio-economic context of the country. An actuary takes into account the funding policy while preparing any actuarial valuation of the social security scheme.

At the inception of a scheme the social security institution carries out an actuarial valuation in order to address the level of protection that can be provided with a given level of financial resources and what financial resources are necessary to provide a given level of protection. The social security institution considers the factors affecting the analysis that are identified through the actuarial assessment of a new social security system.

While effectively involved with governmental bodies in the design and implementation of a new social security scheme, the social security institution advises all parties involved with respect to design features of the new scheme and its actuarial and policy implications. The social security institution seeks the input of actuaries in this process.

Actuaries play a key role in the design, implementation and operation of social security schemes. Their expertise is an important contribution to the decision-making process in this respect. Actuaries should be aware that their involvement will include areas with often conflicting objectives, and they will need to use their judgement in the formulation of recommendations. The areas of input are likely to include the costing of new schemes, funding, financing and sustainability considerations, as well as considerations of adequacy and coverage.

The actuary complies with professional standards of any professional organization of which he or she is a member. The actuary complies with internal standards and guidelines of the social security institution, and/or institution to which he or she provides services. The actuary also follows any other guidelines relevant to the work which he or she is performing.

The actuary, on behalf of the social security scheme, assists national authorities in complying with the national and international statistical reporting standards. When carrying out calculations required for the purpose of compiling national accounts, government financial statistics and/or any other national and international statistical reports, the actuary uses relevant methodology and assumptions.

The actuary assists the social security scheme in complying with the relevant accounting standards. The actuary uses the relevant methodology and assumptions when carrying out calculations to be used for accounting purposes.

The actuary follows the relevant actuarial standards applicable in the country in which he or she works or those set by the actuarial association(s) of which he or she is a member. If the actuary is a member of an actuarial association which has not set relevant standards, the social security institution ensures that the actuary follows the International Standards of Actuarial Practice (ISAP) recommended by the International Actuarial Association (IAA) as model standards.

The actuary and social security institution comply with national regulatory requirements established by the state and/or supervisory authorities. These regulations have an impact on a number of different areas of the social security institution such as management, financing and delivery of benefits. The social security institution with the assistance of the actuary assesses if the national laws and regulations of a country comply with ratified ILO Conventions and informs the national government of any divergence from the ILO Conventions.