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.
Guideline code
ACT_04100
Mechanism
Mechanism
- Regulations may include those describing methodology and assumptions to use in actuarial valuations and benefit calculations, reporting regulations, investment regulations, regulations governing risk, etc.
- The social security institution should ensure that the actuary is regularly updated on changes in national as well as international regulatory requirements related to the schemes to which he or she provides input.
- The actuary, to the extent possible given his or her professional responsibilities and experience, should provide recommendations on improvements to laws and regulations. This may be particularly relevant where regulations and laws are contrary to the stated aims of the social security institution (e.g. regarding adequacy of benefits, sustainability of the system, etc.). In this regard, the actuary should have protection from legal liability.
- Ceteris paribus, the actuary should use assumptions in actuarial valuations in accordance with regulatory requirements. In case there is a conflict between regulatory requirements and actuarial standards, accounting or other professional standards and/or guidelines, the actuary should disclose the nature of the conflict and assess and indicate the resulting financial impacts and other implications (e.g. risk, administrative).
- The actuary should assist the social security institution in the assessment of its compliance with ILO Conventions ratified by the country and, as necessary, make recommendations on what actions the country and/or the social security institution could take in order to align the national legislation with the ratified Conventions.
Structure
Principles
- The regulatory requirements include those at the national as well as international level.
- The actuary should be aware of national as well as international regulatory requirements affecting his or her area of work.
- The social security institution and the actuary should pay due attention to amendments and changes in national as well as international regulatory requirements and set up processes to monitor these changes.
- The actuary should assess, to the extent possible given his or her professional responsibilities, whether the social security institution complies with the relevant regulatory requirements.
- International labour standards are legal instruments adopted by the International Labour Conference composed of tripartite delegations including governments, employers and workers. These standards set out basic principles and rights at work and regulate other areas of the world of work. Countries are legally bound by ILO Conventions once they have been ratified. Recommendations serve as non-binding guidelines. In many cases, a Convention lays down basic principles to be implemented by ILO member countries once ratified, while related Recommendations supplement the Convention by providing more detailed guidelines on how it could be applied. Recommendations can also be autonomous, i.e. not linked to any Convention, such as the Recommendation concerning National Floors of Social Protection, 2012 (No. 202).
Title HTML
Guideline 35. Compliance with regulatory requirements
Type
Guideline_1
Weight
44