SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and insight into the valuation of retirement funds 
SAQA US ID UNIT STANDARD TITLE
242600  Demonstrate knowledge and insight into the valuation of retirement funds 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 6  Level TBA: Pre-2009 was L6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who are involved in valuations of retirement funds or who need to understand the impact of retirement fund values on a company's financials. It will be useful for Actuaries, Senior Consultants, Professional Trustees, Managers and Management Consultants, Auditors and Financial Directors.

The qualifying learner is capable of:
  • Explaining the purpose and requirements for valuation of a retirement fund.
  • Critically analysing the basic principles that underpin the valuation of a retirement fund.
  • Evaluating the financial results of a valuation.
  • Discussing the main socio-economic factors that affect the valuation results of a retirement fund. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at NQF Level 4 and are working towards or have a Level 5 Financial Services Qualification or equivalent. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard includes but is not limited to:
  • Requirements for valuation based on current legislation and the accompanying regulations, professional guidance notes of the Actuarial Society of South Africa and Pension Fund Circulars.
  • Sources that are used in the compilation of the valuation include, but are not limited to, the rules of the fund, administrative data and financial statements.
  • Different types of funds include, but are not limited to, defined benefit, defined contribution, self-insured and reinsured funds.
  • Financial soundness includes, but is not limited to, adequacy of current contribution levels and future contributions required to maintain solvency.
  • Labour market includes, but is not limited to, job mobility. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the purpose and requirements for valuation of a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The purposes of valuing a retirement fund are explained with reference to current legislation and the requirements of professional bodies. 

    ASSESSMENT CRITERION 2 
    The rules of a specific fund are analysed to determine whether the fund can apply to be audit and/or valuation exempt and an indication is given of the risks associated with valuation-exempt status. 

    SPECIFIC OUTCOME 2 
    Critically analyse the basic principles that underpin the valuation of a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Sources of data used in the valuation of a retirement fund are identified and interrogated for consistency and integrity against the valuation. 

    ASSESSMENT CRITERION 2 
    The actuarial basis of a specific retirement fund is analysed to identify and evaluate the actuarial assumptions. 

    ASSESSMENT CRITERION 3 
    The effects of changes in the actuarial assumptions on the financial results of a fund are interpreted for a specific fund. 

    SPECIFIC OUTCOME 3 
    Evaluate the financial results of the valuation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The financial soundness of a fund is analysed against the funding level. 

    ASSESSMENT CRITERION 2 
    The adequacy of assets and liabilities of a fund are evaluated to assess their match and recommendations are made to rectify any mismatch. 

    ASSESSMENT CRITERION 3 
    The build up of surplus or unallocated amounts is evaluated for reasonableness. 

    ASSESSMENT CRITERION 4 
    Recommendations to manage the financial soundness of a fund are evaluated and substantiated based on the actuary's recommendation. 

    SPECIFIC OUTCOME 4 
    Discuss the main socio-economic factors that affect valuation results of a retirement fund. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The effect of longevity on the solvency of a retirement fund is discussed with reference to future contribution rates. 

    ASSESSMENT CRITERION 2 
    The effect of HIV/AIDS on the solvency of a retirement fund is discussed with reference to the current position of a fund and the valuation result. 

    ASSESSMENT CRITERION 3 
    The effects of changes in the labour market on solvency and contribution rates of a fund are discussed for different types of funds. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical and creative thinking have been made in suggesting ways to manage the financial soundness of a retirement fund. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in analysing the principles that underpin the valuation of a fund. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in discussing socio-economic factors that affect the valuation results of a retirement fund. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems explaining the effect of actuarial assumptions on the financial results of a fund. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Search words:
  • Actuarial assumptions, actuarial valuation, financial soundness, retirement fund, valuation. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    2. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Boland Public FET College - Central Office 
    4. CKP Development Agency (Pty) Ltd. 
    5. COLLEGE OF CAPE TOWN 
    6. College of Cape Town - Central Office 
    7. False Bay College 
    8. Intec College 
    9. Masifunde Training Centre (Pty) Ltd 
    10. North Link College 
    11. Old Mutual Life Assurance Company South Africa 
    12. Ray Strodl Consulting (Pty) Ltd 
    13. Ripple Effect 4 (Pty) Ltd 
    14. Sanlam Life Insurance Ltd 
    15. Sanlam Life Insurance Ltd. 
    16. South Cape College 
    17. South Cape Public FET College - Central Office 
    18. The Institute of Health Risk Managers (Pty) Ltd 
    19. Umfolozi FET College - Central Office 
    20. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.