Perspectives of Social Security in Latin America and the Role of the Actuary

Wednesday, April 2, 2014: 4:00 p.m.
Marriott Ballroom Salon 3 (Washington Marriott Wardman Park)
Latin America is in a process of aging with the sustained increase in the ratio of older above retirement age over adults at working stage, which implies the need to valuate and generate understanding of the present and future financial implications of this in the various social security programs especially on those with potential strong impact on the Public Budget and taking a growing share of the Gross Domestic Product. Aspects that are not necessarily in the public domain about social security entities.

So the actuary should participate in this process using his scientific and technical training presenting Actuarial Valuations and Financial and Demographic Projections in accordance with international accounting standards and assessments that comprise the entire horizon of Cash Flows and Investments, identifying aspects such as actuarial deficit and critical situations in advance and allow Governance to start rebalancing processes on  objective basis and interpreting the implications of present decisions .

The presentation will include an analysis of the evolution of the population of Latin America in general and in some specific countries, showing how has evolved and is projected  the relationship between adults above retirement age and adults at working ages, and its implication in Social Security Programs.

Public Interest and Professionalism become an important issue in this aging context and the actuary has to work in accordance to the previous Guidelines of Actuarial Practice for Social Security Programs  and the new International Standard of Actuarial Practice (ISAP -2) on "Financial Analysis of Social Security Programs"  of the International Actuarial Association, and has to take into account the recent issue of the  International  Social Security Association about "Guidelines ISSA for the good governance of social security institutions", giving great importance to the accounting and actuarial function.

*Awarded Professionalism/Education Track Prize

Presentation 1
Eduardo Melinsky, PROF. DR., Universidad de Buenos Aires
  • ICA 2014 Eduardo Melinsky FINAL 02 April2014.pdf (1.2 MB)