The Impact of Parametric Reforms on the Financing of Social Security organization's Long-Term Commitments Using Actuaries

Abstract

Subject and Purpose of the Article: The crisis of deficit financing of long-term liabilities in the Social Security has been one of the most important issues facing the organization in recent years. The present study deals with the effect of parametric corrections in financing long-term commitments with the aim of introducing the optimal model of parametric corrections.Research Method:In order to achieve the objectives of the research by changing the three main parameters including: premium rate, retirement age and premium payment history, their impact on the resources of the Social Security over a period of 70 years according to actuarial and related computing software ( ILO – PENS and PRAST) estimated. The research data were also analyzed based on statistical calculations and SPSS software. Finally, the findings of both methods are compared.Research Findings: A- According to the obtained results, in case of applying any of the above reforms, the end point in the resources of the will be postponed until 2035, 2036 and 2038, respectively, and the necessary resources will be provided to pay the long-term obligations. B- The priority of each parametric correction is introduced and managers can make decisions based.C- The results of the findings of both methods are compared.Conclusion, Originality and its Contribution to the Knowledge: By carrying out parametric reforms, the Social Security, in the short term, while resolving the current financing crisis, providing the necessary resources to meet long-term commitments, also has ample opportunity to plan structural and long-term reforms.,

Keywords

• actuary
• financing
• long-term
• commitments
• parametric reform
• social security organization