1. Background The Employees' Social Security Act 1969 (Act 4) stipulates an actuarial review should be carried out at intervals of at least every five years or at such other times as the Minister of Human Resources may consider necessary. The ILO carried out the eleventh actuarial valuation as of 31 December 2019 and the next (twelfth) actuarial valuation will take place as of 31 December 2024. The project is focused around three key outcomes. Firstly, the undertaking and delivery of the actuarial valuations for four schemes. Full actuarial valuation reports including key results and recommendations, and reference to compliance with ILO Convention 102 will be completed. Secondly, a range of policy and technical support to PERKESO on extension of coverage (of existing schemes and proposed new schemes), policy and financing reform and management issues will be provided. Finally, there will be a strong focus on capacity building including the delivery of the actuarial models for the different benefit schemes to allow PERKESO to carry out actuarial analysis on their own plus tailored training on actuarial, financing, risk management and extension of coverage issues. These Terms of Reference refer to the work related to the actuarial valuation of two PERKESO schemes as well as related policy and financial analytical work and preparation for the valuation of the Employment Insurance (UI) Scheme (Act 800). The work is therefore split into four main elements: Actuarial valuation work: Actuarial valuation work related to ESSS (Act 4)  and SESSS (Act 789) Preparatory work related to the actuarial valuation of the Employment Insurance Scheme (Act 800) Analytical work related to ESSS (Act 4) Analytical work related to SESSS (Act 789) Preparatory work related to the actuarial valuation of the Employment Insurance scheme (Act 800) To carry out this work, the Senior Actuary will work with the Chief Technical Advisor (‘CTA’) and Head of the Regional Actuarial Services Unit in Bangkok as well as PERKESO staff. In respect of the preparatory work for the actuarial valuation of Act 800, the Senior Actuary will also work with the Modelling Actuary.  It is important to note that for the valuations of ESSS and SESSS, the Senior Actuary will work closely with the PERKESO actuarial valuation team on the existing valuation model already provided to PERKESO. This document therefore sets out the Terms of Reference for the Senior Actuary for this work. 2. Activities The Expert will carry out the following activities: In respect of the actuarial valuations of ESSS and SESSS: Carry out an analysis of the previous actuarial valuations, any other previously undertaken actuarial work, existing information on any recent reforms of the scheme and available demographic, economic, labour force and financial data and scheme specific data on insured persons, contributors, pensioners as well as past financial statements and other relevant information in collaboration with the CTA and PERKESO. Formulate and send a formal data collection request and coordinate with the CTA and the PERKESO actuarial valuation team to ensure appropriate data is collected. Assess the suitability of the data provided for the ILO actuarial model working with the PERKESO team. If necessary, the modelling expert will develop an additional data request. Compile and analyse the collected data with a view to use in other analysis and to support assumption setting. Propose appropriate scheme-related demographic and economic assumptions in consultation with the CTA and the PERKESO actuarial valuation team by taking into account historical trends, factors impacting future development and where relevant, experience of other countries. Analyse experiences of major parameters and indicators, compared to expected outcomes of the last actuarial valuation, including a review of investment and financial operations of the social security schemes, an assessment of coverage and its evolution since the last valuation, the development of the labour force, salary experience and benefits paid out.  Liaise with the CTA and draw up an overview presentation to propose and later validate the assumptions and potential parametric modifications to value and design options to assess in the valuation. Coordinate with the ILO CTA to sign off on the assumptions used after consultation with stakeholders Propose the model structure to the CTA and calibrate the model working with the PERKESO team. Produce the demographic and cash flow projections on the Base Scenario and different scenarios envisaged and ensure coordination with the CTA for peer review and finalisation. Carry out the appropriate sensitivity analysis and scenario testing working closely with the CTA and PERKESO. Draft the actuarial valuation reports covering the following elements: Description of data, the assumptions adopted and a summary of scheme provisions as of the valuation date. Results of the demographic and financial projections of the schemes on the baseline set of assumptions as well as under scenarios of parametric modifications (sensitivity analysis). A reconciliation with the previous actuarial valuation will be summarised. Cost as necessary the additional benefit changes required to meet the minimum requirements of ILO Convention 102 (which will be summarised in the relevant section of the report). Formulation and input into design, financing, administrative, management and policy recommendations in collaboration with the ILO CTA and PERKESO. This includes conclusions and recommendations based on the results on the current benefit structure and baseline assumptions and results of the appropriate sensitivity analyses, assessing the impact of proposed reform options and outline other possible measures to be considered to ensure the long-term financial viability of the scheme in line with legal requirements. Prepare a PowerPoint presentation on the results from the actuarial valuation of ESSS and SESSS schemes for presentation to the different stakeholders and PERKESO management. Take part in the relevant national consultations to present the results with the CTA and Project Manager and to seek and discuss comments from social partners and other interested parties. Modify the reports as necessary in order to reflect comments received and submit the final reports to the ILO. Preparation of relevant material for a final presentation of the report findings during a Mission to Kuala Lumpur (probably in Q4 2025 or Q1 2026 depending on the project progress). Preparation for other activities including related to the analysis of Act 4 and Act 789 and any additional support on training. Throughout the process, work closely with PERKESO actuarial staff in the use of the ILO model delivered to PERKESO including providing responses to specific questions. In respect of Act 4 analysis (ESSS) Collate the necessary data and information for the analysis summarised under ‘Output 2’ of the Terms of Reference. Discussion and agreement on any additional parameters and assumptions required for the analysis (in addition to those used for the actuarial valuation) with the CTA and PERKESO Undertaking of the following analysis in respect of Act 4: Assessment of impact of the following policy changes Inclusion of Domestic Workers Increase of maximum earnings Indexation of benefit payments Increase in funeral benefits Adjustment of commutation factors of PDBs Increase in maximum earnings from RM 5k to RM6k Provide recommendations on maximum earnings, definition of invalidity and Financing Policy Drafting of a word document setting out the results of the analysis and recommendations. Presentation of the key elements of the document, incorporating the comments and inputs, and peer review of the CTA and finalisation of the report. A PowerPoint presentation will be delivered summarising the key outcomes of the report     In respect of Act 789 analysis (SESSS)   Collate the necessary data and information for the analysis summarised under ‘Output 3’ of the Terms of Reference. Discussion and agreement on any additional parameters and assumptions required for the analysis (in addition to those used for the actuarial valuation) with the CTA and PERKESO Undertaking of the following analysis in respect of Act 789: Assessment of impact of the following policy changes Extension to 19 other sectors of Injury Scheme Coverage of transport and delivery workers (from 1.10.21) Increase in funeral benefits as at  1.6.24 (from RM 2000 to RM 3000) Adjustment of commutation factors Assess impact of increase in maximum earnings (RM4k -RM5k - RM6k) Provide recommendations on maximum earnings and Financing Policy Analysis of reforms to SESSS including new IS and UI benefits Flexibility of contribution rates for self employed New IS scheme for self-employed Feasibility of UI for self-employed Drafting of a word document setting out the results of the analysis and recommendations. Presentation of the key elements of the document, incorporating the comments and inputs, and peer review of the CTA and finalisation of the report. A PowerPoint presentation will be delivered summarising the key outcomes of the report   Preparatory work for the actuarial valuation of the Employment Insurance Scheme (Act 800) Together with the Modelling Actuary, manage and review the analysis of the previous actuarial valuations, any other previously undertaken actuarial work, existing information on any recent reforms of the scheme and available demographic, economic, labour force and financial data and scheme specific data on insured persons, contributors, pensioners as well as past financial statements and other relevant information in collaboration with the CTA and PERKESO. Support and review the formal data collection request drawn up by the Modelling Actuary and coordinate with the CTA and the PERKESO actuarial valuation team to ensure appropriate data is collected. Together with the Modelling Actuary, assess the suitability of the data provided for the ILO actuarial model working with the PERKESO team. If necessary, the modelling expert will develop an additional data request. Compile and analyse the collected data with a view to use in other analysis and to support assumption setting. Propose appropriate scheme-related demographic and economic assumptions in consultation with the Modelling Actuary, CTA and the PERKESO actuarial valuation team by taking into account historical trends, factors impacting future development and where relevant, experience of other countries. Analyse experiences of major parameters and indicators, compared to expected outcomes of the last actuarial valuation, including a review of investment and financial operations of the social security schemes, an assessment of coverage and its evolution since the last valuation, the development of the labour force, salary experience and benefits paid out.  Liaise with the CTA and working with the Modelling Actuary, draw up an overview presentation to propose and later validate the assumptions and potential parametric modifications to value and design options to assess in the valuation. Coordinate with the ILO CTA to sign off on the assumptions used after consultation with stakeholders Working with the Modelling Actuary, propose the model structure to the CTA and calibrate the model working with the PERKESO team. Review the demographic and cash flow projections on the Base Scenario and different scenarios envisaged produced by the Modelling Actuary and ensure coordination with the CTA for peer review and finalisation. Carry out the appropriate sensitivity analysis and scenario testing working closely with the Modelling Actuary, the CTA and PERKESO. 3. Key expected outputs Output 1 (by 1st December 2025) Submission of data request for the actuarial valuations of ESSS and SESSS, analysis of data received, follow up data request (if required) and signing off on data received as being appropriate for the valuation in collaboration with the CTA and PERKESO actuarial staff. Determine the assumptions to adopt, present recommendations and confirm final assumptions to be adopted. Calibration of the valuation model and carrying out of the demographic and cashflow projections (Activities A.1 to A.4 above). Output 2 (28th April 2026) Produce draft reports, incorporate comments and finalisation of actuarial valuation reports and presentation of key findings (activity A.7). Completing review of assumptions and submitting a draft presentation to validate assumptions for the valuation. Coordination with ILO CTA and counterparts to sign off on assumptions. Analysis of other experience, proposing the model structure and calibrating of the model. Submission of the draft actuarial report (Activities A.5 to A.9 above). Preparatory work for Mission to Kuala Lumpur and participation as set out in A.8 above. Analysis and reports related to the policy analysis of ESSS (Act 4) and SESSS (Act 789) respectively (activities B.1 to B.3 and C.1 to C.3 above) Output 3 (15th June 2025) Submission of data request for the actuarial valuations of the Employment Insurance scheme (Act 800), analysis of data received, follow up data request (if required) and signing off on data received as being appropriate for the valuation in collaboration with the Modelling Actuary, the CTA and PERKESO staff. Determine the assumptions to adopt, present recommendations and confirm final assumptions to be adopted. Calibration of the valuation  model and carrying out of the demographic and cashflow projections (Activities D.1 to D.4 above). 4. Time frame for payment Payment will be made on completion of the assignment to the satisfaction of the ILO and on submission of invoices. The external collaborator can combine several outputs for one payment but will have to combine travel allowances and related outputs including missions as follows.                First payment:           Output 1 : 40% by 1st December 2025                Second payment:     Output 2 : 40%  by 28th April 2026                Final payment:           Output 3: 20% by 15th June 2026 5. Qualification and experience required The Ex-Coll is required to have the following qualifications and experience: Qualified Actuary[1]; 15+ years of experience as an Actuary working in social security, including experience in Asia; Knowledge of social security provision in Malaysia through schemes managed by PERKESO; previous experience of working in Malaysia is a bonus Experience of calibrating, reviewing and using actuarial valuation models; Extensive experience of reviewing and undertaking the data collection and analysis process; Experience of writing and reviewing actuarial valuation reports Strong knowledge of international social security guidelines on actuarial work including IAA and ILO/ISSA publications; Ability to adapt to different working environments and to propose alternative options and recommendations to suit a specific country context. Strong critical analysis and presentation skills and report writing experience; Excellent English writing skills; Good team work and communication skills; 6. Application process Applicants must email the following information to Mr Simon Brimblecombe ([email protected]) with cc Ms Sissadee Ratsameet ([email protected] ) “Application: Malaysia Actuarial Work, Your Full Name” by 20 June 2025: Curriculum Vitae; Fee per day; and Fee in total (ie including the total number of days of work). The ILO will assess applicants’ ability, experience, and proposed fee for the selection. The ILO will contact a selected or shortlisted candidate only and will not provide any clarifications to those who are not selected.   [1] Fully qualified member (Fellow status) of the CIA, SOA, CAS or IFoA