Objectives

The primary objective of this tender is to appoint a qualified service provider to perform actuarial valuations for the uMngeni Local Municipality. The valuations will focus on post-employment medical aid benefits and long service awards in accordance with GRAP 25 and IAS 19 standards. The successful provider will analyze changes in membership, liabilities, projected expenses, and conduct sensitivity analyses to assist management in understanding the liabilities and their variability.

Scope

The scope of work includes:

• Performing actuarial valuation of the post-retirement medical aid subsidies liability and long service awards liability in line with GRAP 25 and IAS 19 principles.
• Providing a comprehensive final report signed off by a member or associate member of the Actuarial Society of South Africa.
• The report must include:
  • Analysis of membership changes over the valuation period
  • Liability assessment regarding employee benefits
  • Projected expenses for employee benefits in the year following the valuation
  • Expected change in accrued liabilities
  • Sensitivity analysis demonstrating result variability
  • Interpretation of results to guide management focus
  • Reconciliation with previous valuations

Technical Requirements

The technical requirements specify that:

• The actuarial valuation must adhere to the principles outlined in GRAP 25 and IAS 19.
• The final report must be signed off by a qualified member of the Actuarial Society of South Africa.
• The report should include detailed analysis, projections, sensitivity testing, and reconciliation with prior valuations.

Skills Requirements

The service provider must demonstrate:

• Qualified expertise in actuarial valuations, specifically for post-employment medical aid benefits and long service awards.
• Membership or accreditation with the Actuarial Society of South Africa.
• Experience in applying GRAP 25 and IAS 19 standards.
• Ability to produce comprehensive, accurate, and signed-off actuarial reports.
• Proficiency in analyzing membership data, liabilities, and conducting sensitivity analyses.