SOCIAL SECURITY EDUCATION AS A SPECIALIST TRACK

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1 SOCIAL SECURITY EDUCATION AS A SPECIALIST TRACK Chris Daykin Faculty and Institute of Actuaries International Actuarial Association International Social Security Association

2 INTERNATIONAL ACTUARIAL ASSOCIATION (IAA) education core syllabus and guidelines applies for students starting from 2005 onwards requirement for Full Member Associations transitional arrangements permitted

3 NATURE OF GUIDELINES AND SYLLABUS not prescriptive for associations leaves structure of actuarial education open emphasis and packaging may differ additional requirements permitted

4 IAA CORE SYLLABUS - 1 financial mathematics probability and mathematical statistics economics accounting modelling statistical methods

5 IAA CORE SYLLABUS - 2 actuarial mathematics * life insurance * general insurance * pensions * health care investment and asset management principles of actuarial management professionalism

6 Social Security General Insurance International Life Country Specific Application Technical Pensions Research Analyst General Investment Business Leader Generalist - Traditional Applications Generalist - Modern Technical Banking Capital Projects Pre-entry Knowledge Health Core Core Super- Technician Risk Finance Compliance Government Education

7 FINANCIAL GOVERNANCE OF SOCIAL SECURITY monitoring of income and expenditure short, medium and long term projections investment advice and performance measurement operation of actuarial control cycle reporting within a professional framework public policy advice

8 EDUCATIONAL REQUIREMENTS financial mathematics demographic models multi-state models investment and asset management economics and public finance social policy framework professional responsibilities and reporting

9 Is IAA Core Syllabus appropriate? Less of a need for: probability and mathematical statistics statistical methods accounting general insurance mathematics life insurance products and financial management microeconomics and financial economics

10 Is IAA Core Syllabus appropriate? More of a need for: demography macroeconomics/economics of public finance social policy framework microsimulation

11 Differences from pensions specialisation public policy context less interest in funding techniques and solvency more concerned with macroeconomic impact breadth required to cover workers compensation, unemployment, sickness, health care financing corporate governance in public sector context

12 SOCIAL SECURITY ACTUARY demographic understanding ability to project income and expenditure economic impact investment policy and ALM design of pension and social security structures understanding of private insurance and pensions

13 QUALIFICATION LEVELS trustee/director of social security institution pension fund manager investment manager social security actuarial technician social security actuary

14 MECHANISM FOR IMPLEMENTATION IAA core syllabus requirement (by any route) recognition as fully IAA qualified actuary specialisation in social security international examination process leading to Fellow of various bodies What would be the demand? Who would examine? quality control and ownership

15 SPECIALIST APPLICATIONS social security policy and financing social security reform problem-solving in social security application of higher order skills

16 COVERAGE OF SPECIALISATION public policy macroeconomics and public finance structure of social security and complementary pension plans funded and unfunded plans demography social budgetting

17 CHALLENGES international nature of qualification low throughput small pool of potential examiners need to accept alternative prior routes acceptance of social security specialisation

18 CONTINUING PROFESSIONAL DEVELOPMENT (CPD) lifelong learning philosophy need to keep technical skills up-to-date need for personal development and challenge need to keep up with legislation and standards does it need to be a formal process?