🇦🇺Australia

Actuarial Reporting Errors

1 verified sources

Definition

Transitional issues and misalignment with AASB 1056 cause faulty funded status snapshots, leading to suboptimal funding strategies.

Key Findings

  • Financial Impact: AUD 50,000+ per fund in contribution errors (2-5% of liabilities misvalued)
  • Frequency: Annual actuarial investigations
  • Root Cause: Manual alignment of actuarial values with financial statements

Why This Matters

The Pitch: Defined Benefit Pension Funds in Australia 🇦🇺 incur AUD 50,000+ in over/under-funding due to Funded Status misreporting. Automation ensures accurate liability valuation.

Affected Stakeholders

Actuaries, CFOs

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Funded Status Reporting Penalties

AUD 10,000+ per breach (ATO administrative penalties up to AUD 18,000 for entities; typical 20-40 hours/month manual reporting)

TBAR Lodgement Delays

AUD 5,000-15,000/year in GIC (15.5% pa on shortfalls) + 20 hours/quarter manual delays

Fehlentscheidungen bei Asset-Allokation durch ungeeignete aktuariellen Annahmen

Estimated opportunity cost of 0.5–1.0% of assets per annum from suboptimal asset allocation in a AUD 100–500 million DB fund, i.e., AUD 0.5–5 million per year, cumulating to AUD 2.5–25 million over 5 years.

ALM Modeling Delays

20-40 hours per quarterly ALM review at AUD 500/hour = AUD 10,000-20,000

Poor ALM Decisions

AUD 25% excess contributions for underfunded plans (e.g., 80% funded requires 125% levered assets)

LDI Collateral Calls

AUD millions in collateral for swap MTM losses (no cash offset from liability gains)

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