Actuarial matters

Actuarial situation

ACTUARIAL MATTERS

Actuarial consulting services

79. The ICSC secretariat considered that such an approach would lead to creation of local benefit schemes and would require detailed actuarial studies.

III. ACTUARIAL MATTERS . 14 47 4

Actuarial value of accrued benefit entitlements

223. The Commission considered that the actuarial analysis had been carried out competently and in accordance with normal actuarial practices.

The result of the actuarial valuation as at 31 December 2003 was an actuarial surplus of 1.14 per cent of pensionable remuneration.

The result of the actuarial valuation as of 31 December 2003 was an actuarial surplus of 1.14 per cent of pensionable remuneration.

There would, of course, be no actuarial implications.

Actuarial sufficiency of the Fund as at 31 December 1997

Actuarial position of the Fund as at 31 December 1997

The remaining actuarial assumptions, which are of a demographic nature, were derived on the basis of the emerging experience of the Fund, in accordance with sound actuarial principles.

A. Actuarial valuation of the Fund as at 31 December 1997

(f) Actuarial implications of the proposed UN UNJSPF cost sharing arrangements

(a) Actuarial implications (considered not significant by the Committee of Actuaries)

Article 119 Insurance companies engaging in insurance of persons must appoint and employ actuarial professionals recognized by the financial supervision and regulation department and establish an actuarial reporting system.

D. Accounting standards for actuarial valuations of the Fund . 103 105 24

IV. STATEMENT OF ACTUARIAL SUFFICIENCY AS AT 31 DECEMBER 1997 OF THE

Statement of actuarial position of the Fund as at 31 December 1997

Come now, you've never read an actuarial table in your life, have you?

Figure 4 United Nations Joint Staff Pension Fund evolution of actuarial situation since 1990

V. STATEMENT OF ACTUARIAL POSITION OF THE FUND AS AT 31 DECEMBER 1997 113

quot the actuarial value of the assets exceeds the actuarial value of all accrued benefit entitlements under the Fund, based on our understanding of the Regulations of the Fund in effect on the valuation date.

The Commission considered that the actuarial analysis had been carried out competently and in accordance with normal actuarial practices, and has included its conclusions on that analysis in its report to the General Assembly.5

It was noted that retention of the current interest rate of 6.5 per cent, in lieu of the real rate of return assumption used in actuarial valuations, resulted in an actuarial gain to the Fund of approximately 1.23 per cent of pensionable remuneration therefore, lowering the interest rate would reduce or eliminate that actuarial benefit to the Fund.

(d) The actuarial analysis took into account the indexation provisions of UNJSPF and local plans.

In any event, the level of the inflation assumption was inconsequential in an actuarial analysis.

This would be preferable to actuarial projection techniques and would simplify the review of the calculations

The specific combinations included in the actuarial valuations as at 31 December 1997 were as follows

The actuarial report will show required contributions and imbalances, an analysis of gains and losses, calculations of the actuarial value of accrued benefits, hypothetical projection results over 30 years and the results of monitoring of the two track system.

As regards the actuarial implications, the Committee of Actuaries indicated that, since relatively few participants would, for financial reasons, defer receipt of a benefit for a period beyond 12 months, the actuarial implications of the proposed change would not be significant.

6. As indicated in the table above, the actuarial value of assets exceeds the actuarial value of all accrued benefit entitlements under the Fund, based on our understanding of the Regulations of the Fund in effect on the valuation date.

The United Nations Joint Staff Pension Board approved their statement on the actuarial position of the Fund.

4. All calculations were performed by the Consulting Actuary in accordance with established actuarial principles and practices.

3. The Advisory Committee notes from paragraph 18 of the current report that the Pension Board approved the actuarial assumptions recommended by the Committee of Actuaries to serve as the basis for the twenty fourth actuarial valuation, prepared as at 31 December 1997.

It shared some of the concerns expressed about the assumptions on which the Montreal actuarial study was based.

The Commission noted that the UNJSPF provisions resulted in an advantage to UNJSPF participants in the actuarial analysis.

Therefore, since 1985 the administrative costs assumed in actuarial valuations have been 0.18 per cent of pensionable remuneration.

The Administration secured a reduction of 106,800 in the cost of actuarial services for the biennium 1998 1999.

The current mortality table used in the Fund apos s actuarial valuations includes modest provision for improvements in longevity.

The Board of Auditors has repeatedly reported this issue, with no result so far other than an improved actuarial computation.

His delegation was pleased that the Fund's value had increased substantially and that actuarial valuations had shown surpluses since 1997.

UNODC has now received information on the actuarial valuation, which shows that the potential liability will substantially exceed available reserves.