IAA and IOPS Release Paper on the Role of Actuarial Calculations and Reviews in Pension Supervision
The International Actuarial Association (IAA) is pleased to announce the release of a paper produced in conjunction with the International Organisation of Pension Supervisors (IOPS): The Role of Actuarial Calculations and Reviews in Pension Supervision.
The paper is part of a series launched by the IOPS in 2007 to highlight challenges that have to be met in the development of national pension supervisory systems. It was produced by experts on the IAA’s Pensions and Employee Benefits Committee in co-operation with the IOPS, emphasizing the important role actuaries play in the pensions sphere.
Actuarial calculations and reviews are frequently an essential part of managing the risks facing pension funds; those responsible for ensuring such funds remain solvent often rely on actuaries’ long-term forecasts and mathematical expertise.
The new paper’s main finding is that actuaries’ work is also crucial when it comes to oversight, particularly the supervision of defined benefit and hybrid pension funds. It explains that actuaries’ primary function in the pension supervision process of such funds is to support supervisors in verifying that the pension managers are complying with legal requirements governing how the fund operates and how it is funded.
It also identifies challenges that might face supervisors who work with actuaries, such as managing effective technical communications, actuarial professionals’ independence, and the availability of timely information.
This activity contributes towards achieving the IAA’s strategic objective to facilitate the coordination, use and expansion of the scientific knowledge and skills of the actuarial profession, to help enhance the scope, availability, and quality of actuarial services offered by individual members of its member associations.
To learn more about the paper and the IAA’s work in this area, contact the Director of Technical Activities.
The paper, along with a comprehensive background document, is available on the IAA website under PUBLICATIONS/PAPERS.