Actuaries Actuarial Statement of Recommended Practice 1: Financial Analysis of Social Security Programmes

Actuarial Statement of Recommended Practice 1: Financial Analysis of Social Security Programmes

Actuarial Statement Of Recommended Practice 1 (ASORP 1) promotes high quality technical actuarial work where actuaries are performing a financial analysis (or analyses) of Social Security Programmes (SSPs), or reviewing, advising on, or opining on such analyses.

This ASORP supports the application of the principles and provisions of TAS 100 in respect of technical actuarial work related to the financial analysis of SSPs.
Members of the Institute and Faculty of Actuaries are required to comply with ASORP 1 for work in its scope. Wider adoption is encouraged.
This standard applies to technical actuarial work in the scope of ASORP 1 which is completed on or after 1 September 2019.

The current version of ASORP 1 can be found here


Consultation


The FRC published revised Technical Actuarial Standards (TASs) in December 2016, with an effective date of 1 July 2017. During the review supporting the revision, we identified that technical actuarial work related to Social Security Pensions represents a high level of risk to the public interest. We considered including this work in the scope of TAS 300 but considered that a more appropriate approach was to adopt the model standard, International Standard of Actuarial Practice 2: Financial analysis of social security programs (ISAP 2 (2017)) issued by the International Actuarial Association (IAA) to support the application of TAS 100 to this work.

The purpose of this public consultation was to seek views on:

  • the approach proposed for setting a standard for technical actuarial work supporting UK Social Security Programmes (SSPs);

  • the proposed scope of the standard; and

  • the changes proposed in the adoption of ISAP 2 (2017).

The consultation package comprised a covering consultation paper and four annexes.
 
Annex 1 is the Exposure Draft of Actuarial Statement of Recommended Practice 1 (ASORP1) together with a glossary of new terms and potential content for communications.
 
Annex 2 is ISAP 2 (2017) from which ASORP1 was derived.
 
Annex 3 provides a list of changes between ISAP 2 (2017) and ASORP1.
 
Annex 4 is a template for responding to the consultation.  The closing date for response is 31st January 2019.

Consultation Paper (PDF)
 
Annex 1 - Exposure Draft: Actuarial Statement of Recommended Practice 1: Financial Analysis of Social security Programmes (PDF)
 
Annex 2 – International Standard of Actuarial Practice 2 (2017) (PDF)
 
Annex 3 – List of changes between ISAP 2 (2017) and ASORP 1 (PDF)
 
Annex 4 – Consultation response form (PDF)

The consultation closed on 31st JANUARY 2019 and the responses can be found here
 

Feedback Statement


On 31st May 2019 the FRC published


In general the responses were supportive of the Exposure Draft. The two main issues raised by the responses to the consultation concerned:

  • Scope of ASORP1: That we had narrowed the scope from the definition in ISAP 2.
  • Whether it is right to introduce a new level of Actuarial standard which is intermediate betwee TASs (which consist of high level principles (that are mandatory) and Guidance (which is non-mandatory)


The Feedback Statement addresses our response to these questions as well as providing an analysis of the responses to each question in the consultation.

 

 

Share