The social security institution should ensure that the skills and experience requirements of internal and external actuaries undertaking work for the organisation are well defined, adequate and monitored. The institution should support the efforts of actuaries in obtaining relevant qualifications and undertake training and continuing professional development activities as set out by national or international professional bodies.

Actuarial involvement is required when both parametric and structural changes to the social security scheme are considered.

The current legal and effective coverage situation are analysed both in the light of current legislation and scheme administration, as well as within the global context of employment trends and population changes which may trigger changes in both legal and effective coverage.

The social security institution regularly assesses the level of protection offered by the scheme through the actuary's analysis of the replacement rate and other relevant adequacy measures. When assessing benefit adequacy of a pension scheme, the social security institution considers retirement income from other sources, such as any universal non-contributory pension, mandatory or voluntary occupational or individual pension plans, and/or legislated end-of-service payments.

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.