The social security institution ensures that regular actuarial valuations are conducted to assess and monitor the financial situation of social security programmes. The social security institution further ensures that an actuarial valuation is conducted at the inception of a new programme, or whenever an existing programme is materially changed.
Actuarial valuations are primarily required to assess the sustainability of social security programmes but may also be required to assess system adequacy, financing and funding considerations. Findings of actuarial valuations also have an impact on investment decisions, benefit calculations and communication or disclosure. This guideline should be read together with Guidelines 27, 44, 46 and 49, and Guideline 41 of the ISSA Guidelines on Good Governance.