Session: 59

Social Security

* * *

Summary

The main purpose of this investigation is to provide an actuarial model to evaluate Social Security plans considering the changes in population over time using a matritial presentation. With this model the population will be divided into different groups according to their status, taking into account their present age and their years of service and thus allowing the calculation of the different benefits of interest to be simplified. 

The results obtained will show the amount of recommended contributions to be made periodically to a fund that will enable the Institution to make the required payments to retired employees and their beneficiaries each year. Along with this, the model will provide the mechanisms to analyze the population behavior over time considering that the labor work is not ceased and that new employees are hired increasing the capacity. 

Besides all this, the model enables the calculation of different actuarial values important for evaluation and design of Social Security Plans - such as the Projected Benefit Obligation. 

By obtaining a matritial presentation for every retired population, the method allows not only to do the analysis over the recommended amounts and number of employees, but also by generation and by groups according to their main characteristics (age, years of service,…) and in this way be able to identify different opportunity areas in Social Security Plans, to obtain a design that will lead to optimum results. 

All of this allows also to have a general demographic vision on the behavior of employee population in order to front any extreme situation that could have important impacts over the decisions to be made by the Institution Directors to benefit the employee and the Institution itself. 

Finally, this method is highly recommended for obtaining financial overlooks on Social Security Plans in short and long terms and gives clear and comprehensible results enabling accurate analysis and optimum results for everyone.

* * *

* * *