SOCSO - Eleventh actuarial valuation and capacity building project
This Workspace contains training resources, project management tools and other documents for sharing between SOCSO and ILO.
The Employees' Social Security Act 1969 (Act 4) stipulates an actuarial review should be carried out at intervals of at least every five years or at such other times as the Minister of Human Resources may consider necessary. The ILO carried out the last (tenth) actuarial valuation as of 31 December 2014 and the next eleventh actuarial valuation will take place as of 31 December 2019.
This project will deliver a number of outputs, the key one being the actuarial valuation report outlining the financial projections and the assets and liabilities under the current benefit, contribution and eligibility conditions.
The project will also include the assessment of the cost and other implications of proposed reform options and will formulate recommendations to ensure long-term financial sustainability, extend coverage and strengthen benefit adequacy by taking into account the financial impact of policy changes. It will therefore include significant analytical work on extending coverage to new groups of workers including the data issues and management implications. Another key element of the work will be analysis and recommendations on the investment governance structure and processes of the organization as well as financial reporting.
An important output over the duration of the project will be ongoing work to build actuarial capacity of SOCSO staff through technical and management support. The legacy of the project will therefore be that actuarial capacity and resources within the organization will be sufficient to carry out future actuarial valuations with limited external resources required.