Objectives

The primary objective of this tender is to appoint a qualified service provider to conduct actuarial services in accordance with GRAP 25 standards. The services encompass the assessment and reporting on:

• Post Employment Health Care Benefits
• Long Service Awards
• Ex Gratia Pensioners

The provider will be responsible for calculating liabilities, providing projections, sensitivity analyses, and ensuring compliance with relevant accounting standards and municipal policies.

Scope

The scope includes:

• Performing actuarial valuations for post-employment health care benefits, ex gratia pension benefits, and long service awards as at 30 June for the financial years 2025/2026.
• Providing projected unfunded liabilities and future accrual costs for the subsequent two years for budgeting.
• Calculating actuarial gains or losses in line with GRAP 25, including disclosures.
• Using the Projected Unit Credit Method for valuation and discount rate calculations based on GRAP 25.
• Addressing data interpretation, assumptions, and financial statement disclosures related to these benefits.
• Responding to audit queries and resolving findings from the Auditor-General of South Africa (AGSA).

Technical Requirements

The technical requirements specify that the service provider must:

• Conduct actuarial valuations in accordance with GRAP 25 and relevant accounting standards.
• Provide detailed calculations for liabilities, including sensitivity analyses on unfunded liabilities.
• Use the Projected Unit Credit Method for present value calculations.
• Estimate future costs and liabilities for the next two financial years.
• Disclose actuarial gains/losses separately in reports.
• Apply the appropriate discount rates based on GRAP 25 guidelines.
• Ensure data accuracy and interpret actuarial assumptions correctly.
• Prepare financial statement disclosures in line with municipal policies and standards.

Skills Requirements

The successful bidder must demonstrate:

• Qualified actuarial professionals, preferably members of the Actuarial Society of South Africa.
• Experience in performing similar valuations for municipalities or public sector entities.
• Ability to interpret complex actuarial assumptions and standards.
• Capacity to prepare comprehensive financial disclosures and reports.
• Expertise in data analysis, sensitivity testing, and projection modeling.
• Capability to address audit queries and resolve findings from the Auditor-General.
• Minimum of one full day (8 hours) allocated for data preparation and stakeholder engagement.