Cape Joint Pension Fund Actuarial Valuation as at 30 June 2015 Sean - - PowerPoint PPT Presentation

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cape joint pension fund actuarial valuation as at 30 june
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Cape Joint Pension Fund Actuarial Valuation as at 30 June 2015 Sean - - PowerPoint PPT Presentation

Oct 02, 2022 104 likes •244 views

Cape Joint Pension Fund Actuarial Valuation as at 30 June 2015 Sean Neethling Actuary MMI Specialised Solutions 27 May 2016 Actuarial Control Cycle Financial condition? Feedback Enough money to meet Analysis of experience

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Cape Joint Pension Fund Actuarial Valuation as at 30 June 2015

Sean Neethling Actuary MMI Specialised Solutions 27 May 2016

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Actuarial Control Cycle

Specify the problem Develop the solution Monitor the experience

Professionalism General commercial and economic environment

  • Financial condition?
  • Enough money to meet

the benefits promised? Actuarial valuation

  • Analysis of experience
  • Funding level

Assumptions Modelling Recommendations Data validation Feedback

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Membership statistics

30 June 2015 30 June 2014 DB Section active members Number 29 959 Annual pensionable salaries (Rm) 4.9 175.8 Salary weighted average age (years) 51.8 48.0 Salary weighted average service (years) 22.2 22.4 DC Section active members Number 1 521 717 Annual pensionable salaries (Rm) 295.1 128.8 Salary weighted average age (years) 49.7 48.2 Salary weighted average service (years) 20.9 18.2 Non-contributory members 5 5 Pensioners and DB Deferred Members Number 4 218 4 467 Annual pension (Rm) 197.0 196.7 Average annual pension (R) 46 656 44 025 Pension weighted average age (years) 75.4 74.8

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Statistics

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Statistics – DB Section – year ending 30 June 2015

26.8% 9.0% 7.5% 6.4% 6.6% 8.4% 4.7% 5.0% 0% 5% 10% 15% 20% 25% 30% LA cont Member cont Contract cont Inv return

  • pens

Inv return

  • balance

Salary incr Inflation Pension incr

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Statistics – DC Section – year ending 30 June 2015

18.0% 9.0% 7.5% 9.1% 7.0% 12.0% 10.4% 6.2% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

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Funding level - DC Section

Financial Condition 30 June 2015 30 June 2014 DC Section Interest: 9.05% p.a. Interest: 17.48% p.a. R 000 R 000 Market value of assets 1 932 720 566 689 Members' Shares (1 924 363) (566 689) Contingency Reserve Account (8 864) Processing Error Reserve Account 507 DC Section surplus Funding level (DC Section) 100.0% 100.0%

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Financial condition – DB Actives

30 June 2015 30 June 2014 R 000 R 000 Value of assets 63 300 1 419 642 DC conversion members

  • (1 356 415)

Active DB member liabilities (41 352) (39 501) Non-contributory members

  • (383)

21 948 23 343 Surplus Funding level 153.1% 101.7%

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Financial condition – Pensioners

30 June 2015 30 June 2014 R 000 R 000 Pensioner Account Value of assets 2 072 712 2 172 447 Pensioner liabilities (1 984 926) (1 985 229) Solvency Reserve (59 771) (59 902) Surplus 28 015 127 316 Funding level 101.4% 106.2%

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Pensioner mortality - males

0.00 0.05 0.10 0.15 0.20 0.25 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90+ Age group

Pensioner mortality - males

PA(90)-2 Actual 2010-12 Actual 2013-15 Probability of death in one year

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Pensioner mortality - females

0.00 0.05 0.10 0.15 0.20 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85-89 90+ Age group

Pensioner mortality - females

PA(90)-2 Actual 2010-12 Actual 2013-15 Probability of death in one year

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Conclusions

  • Pensioner Account surplus of R28.0 million, funding level

101.4%.

  • Balance of the DB Section for DB active members has a

surplus of R21.9 million, funding level 153.1%.

  • DC Section funding level: 100.0%
  • Pension increase of 3% effective 1 January 2016. Bonus of

75% of monthly pension granted in Dec 2015.

  • Fund is in a sound financial condition.
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Thank You!