Actuaries and Retirement Provision
Within the DAV, the issue of retirement provision and occupational pensions in particular is covered by its subsidiary association, the IVS ("Institut der Versicherungsmathematischen Sachverständigen für Altersversorgung"). The scope of activity of IVS actuaries has expanded greatly in recent years. In addition to the traditional calculations using actuarial models and methods, the IVS's experts are now increasingly called upon to place the mathematical questions pertaining to retirement provision in an overall economic, fiscal and legal context and to communicate the results in a transparent and comprehensible manner. The IVS's "retirement actuaries" possess the necessary, broad-based specialist know-how, making them experts in consulting and service pertaining to all questions and types of retirement provision systems and vehicles. The work of the IVS experts concentrates mainly on valuing occupational pension obligations for all provision vehicles and pension institutions. Furthermore, personal retirement provision and pensions are important in the activities of the IVS's Members.
Calculating Pension and Actuarial Reserves
The IVS's experts calculate pension and actuarial reserves for pension schemes, pension funds and support / benevolent funds as well as for direct pension obligations and so-called direct insurance schemes (retirement provision funded by insurance) in accordance with regulatory and tax rules as well as with national (i.e., German commercial code) and international accounting principles. In addition, they produce analyses on the future performance of pension obligations as well as on their financial consequences for companies. They also calculate the funding of pension rights for the employees of companies.
(Responsible) Actuaries in Pension Schemes and Providers
In legally independent pension schemes and providers, IVS actuaries audit the funding of pension obligations and ensure that these can be met at all times, constantly monitor the development of existing scheme membership, check scheme assets, calculate the necessary actuarial reserve and develop proposals for participation in 'with-profits' surpluses or for adjustments to benefits payable under a scheme if they should ever be necessary. They are also involved in drafting benefit rules and guidelines as well as any amendments.
One particular responsibility that is incumbent on them is that of their function as the Responsible Actuary for pension schemes and providers (retirement and death funds, pension funds).
IVS Experts as Advisers
As advisers, they analyse, for example, offers for individual and group insurance policies for their clients and check that these are handled and managed correctly.
For some years now, actuarial experts have increasingly been dealing with the topics of risk and asset-liability management for insurers and pension providers. This requires them to draft investment strategies and answer questions concerning capital adequacy or equity base – the solvency of the pension provider. International accounting means that IVS actuaries are also responsible for valuations in accordance with international (IFRS) or foreign accounting rules and principles (e.g., US-GAAP, FRS).
DAV's and IVS's Retirement Provision Committee
The DAV's / IVS's specialist work in the field of retirement provision is done by the Retirement Provision Committee. The findings of this committee are published as technical principles or as reasoned opinions or statements and may also be used in public discussion.
Publications
Professional Standards of Practice
The following list provides an overview over the professional standards published by DAV's/IVS's Retirement Provision Committee. For every professional standard there is an abstract in English and the full version in German available.