WHAT WE DO
Enterprise Risk Management
Asset Management Consulting
Phone:+971 4 876 8530
Social security schemes are state-run programmes responsible for providing a range of social benefits and welfare, including retirement benefits, to a country’s citizens, workforce, and their dependants. These schemes can be funded, unfunded or PAYG (Pay-As-You-Go).
Darshan Ruparelia, Ruan van Rensburg and Susan Turner are our social security experts who have advised various social security schemes in the Middle East, Africa, the Indian Ocean Islands and Oceania. Together they lead a team of highly experienced consultants and professionals.
Lux’s Social Security Team has extensive experience in the following areas:
An actuarial valuation is a key monitoring tool for the successful management of a benefit-providing programme to its members. “Successful management” is especially vital for running of social security schemes as these provide benefits and welfare assistance at a national level to a large membership base – failure to have adequate funds in operating these schemes can be not only a financial burden but also a political incumbrance to the government
By performing a scheme valuation, our consultants will “answer“ the following key items to help the scheme trustees/management (who are ultimately responsible to the government) understand and appropriately act upon the financial health of their scheme:
Knowledge of the liabilities on a cashflow basis (that is, how much is expected to be paid each year in the form of benefits over, say, a generational period of the next 50-75 years)
An actuarial valuation also includes a comparative analysis to ascertain the differences between actual and assumed experience of the scheme since the previous actuarial valuation; such differences are defined as “actuarial gains/losses”.
Through continuous engagement with the client and key stakeholders, we will deliver an Actuarial Valuation Report which will include information on data used (membership and asset data); assumptions applied – both financial and demographic; methodology employed; our valuation results; reconciliation of results and experience of the scheme compared with the previous valuation report (if any); sensitivities; and our recommendations (e.g. a funding plan to reduce unfunded deficit, if any).
An ALM (asset-liability modelling) study allows decision makers to bring an assessment of risk to the quantification of value from an actuarial valuation. The results from an ALM study help to:
The output of an ALM will be a Fund Management Strategy Report which will provide results of the asset-liability modelling; proposed investment strategy; review of the current strategy; analysis of past performance; recommendation for funding and asset allocation policies; and analysis for other policy decisions.
It should be noted that an actuarial valuation provides the starting point and input for an ALM (ie through provision of liability cashflows) and as such we would recommend that, when undertaking a scheme actuarial valuation, we also perform an ALM study – both of which will be in the client’s best interest.
Our consultants work with governments to help identify a set of parametric, structural, and systemic reforms to enable their social security schemes achieve long-term sustainability and inter-generational fairness.
A good social security programme is one of the key indicators of the “quality of life” of a country’s population. Our team of social security experts are highly experienced in advising governments on the design and roll-out of state benefits and social welfare plans.
Our consultants will help with:
Sometimes a second professional opinion is needed; we are here to provide this where requested. Our consultants are experienced in conducting actuarial reviews and audits. For example, our audit on a previously conducted actuarial valuation will include:
Please contact Darshan Ruparelia or Susan Turner if you need any further information on our services, or if you would like to speak to one of our specialists to determine the scope of your work or an estimate of timescales and fees. We can provide client references on request.
Phone+971 4 876 8530
Kenya and East Africajoseph.firstname.lastname@example.org
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