Both public pension funds and government health insurance funds carry significant, long-term financial burdens and obligations, while at the same time providing vital and socially sensitive public services.

There are many risks to which these funds are exposed, which significantly affect their funding levels and the generosity, adequacy and sustainability of the benefits they provide to the public. The most important of these risks are longevity, a deteriorating investment performance, and a weak national economy leading to a shrinking local labor market.

Therefore, conducting regular actuarial reviews on these funds provides information that is very crucial for risk management and governance of pension and healthcare insurance funds. As such, among other things, pension fund managers and/or board of directors and management customarily use actuarial calculations and reviews in making funding and investment decisions and in assessing risk exposures.

Therefore, calculations and reviews play an essential role in the operation and, ordinarily, in the supervision of pension funds.