How to Be Public Sector Actuary - Job Description, Skills, and Interview Questions

Jan 27, 2020 / 5 Minutes Read / By Albert

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The role of a Public Sector Actuary is to use their knowledge of mathematics, statistics, and economics to help government agencies and other public entities understand the financial implications of various decisions. This includes helping to assess the long-term cost of pension plans, health care, and other social welfare programs. The actuary's analysis can help identify potential risks, as well as potential savings, and provide guidance on how best to manage funds over time.

By doing this, they play an important role in the financial planning and management of public sector organizations and the public sector as a whole. This can lead to more effective budgeting, improved long-term fiscal health, and increased transparency in regards to public finances.

Steps How to Become

Obtain a Bachelors Degree. Most public sector actuaries have a minimum of a bachelors degree in mathematics, actuarial science, statistics, or a related field.
Gain Professional Experience. Most employers require at least 3-5 years of professional actuarial experience in the public sector, preferably in pensions or health care.
Join a Professional Association. Actuaries in the public sector should join a professional association such as the Society of Actuaries (SOA) or the American Academy of Actuaries (AAA). This will help keep you up-to-date on the latest developments in the industry and provide networking opportunities.
Obtain Certifications. Most employers require public sector actuaries to obtain certification from either the SOA or the AAA. To obtain certification, you must pass a series of exams and complete several years of professional experience.
Consider Specialization. Actuaries in the public sector may consider specializing in a specific area such as pensions, health care, or public finance. This will allow you to gain additional expertise in a particular area and help you stand out from other applicants in job searches.
Stay Up-to-Date. Public sector actuaries must stay current with industry news, regulations, and best practices. This will ensure that they remain competitive in the job market and are able to provide their employers with the most up-to-date advice and recommendations.

The implementation of a public sector actuary can lead to increased efficiency and cost savings for the government. An actuary helps to analyze and set rates for various public services, such as insurance plans or pension funds. Their expertise in understanding how risk works and how different factors, such as age and income, influence rates can help to save money for the government.

an actuary can help to identify areas where resources could be allocated more efficiently, providing long-term cost savings. In addition, they can also provide guidance on areas where policy changes could reduce costs and improve outcomes. By using their expertise and analytical capabilities, public sector actuaries can help to ensure that taxpayers money is being used as efficiently as possible.

You may want to check Consulting Actuary, Property and Casualty Actuary, and Actuarial Trainee for alternative.

Job Description

Pension Actuary: Responsible for managing pension funds, developing pension plans, and performing actuarial calculations.
Budget Analyst: Analyze government budgets and provide financial recommendations to government officials.
Risk Manager: Identify, evaluate, and manage risks to help organizations achieve their objectives.
Policy Analyst: Research and analyze public policy, laws, regulations, and economic trends to provide advice and recommendations to government agencies.
Health Care Cost Analyst: Examine health care costs and make recommendations to government officials on how to reduce costs and improve the quality of care.
Cost/Benefit Analyst: Evaluate the economic impact of public programs and projects, and provide financial advice to government agencies.
Data Analyst: Collect and analyze data to identify trends, inform decision-making, and provide solutions to government agencies.
Financial Examiner: Monitor government financial operations to ensure compliance with applicable laws, regulations, and standards.

Skills and Competencies to Have

Expertise in actuarial mathematics and statistics
Knowledge of public sector accounting and finance principles
Understanding of public sector risk management and control processes
Experience with public sector pension plan design and implementation
Ability to conduct actuarial valuations and develop cost/benefit models
In-depth knowledge of actuarial standards and regulatory requirements
Working knowledge of computer programming and software packages
Ability to develop meaningful actuarial reports and presentations
Strong analytical and problem-solving skills
Excellent communication and interpersonal skills

Being a Public Sector Actuary requires a wide range of skills, but perhaps the most important is the ability to think critically and analytically. This entails being able to take a large number of variables and factors into consideration, and then use statistics and mathematics to assess the likely outcomes. Critical and analytical thinking helps Public Sector Actuaries to identify trends and patterns, create financial models, and accurately calculate financial information such as future liabilities, investments, and benefits.

strong communication and presentation skills are essential in order to discuss complex topics with stakeholders, decision makers, and other professionals. the ability to understand legal and regulatory frameworks is important in order for Actuaries to ensure compliance with relevant laws and regulations. the combination of these skills allows Public Sector Actuaries to effectively advise government officials on how to best use public funds.

Actuarial Vice President, Actuarial Manager, and Pension Actuary are related jobs you may like.

Frequent Interview Questions

What experience do you have in public sector actuarial work?
How would you describe your understanding of public sector policy and procedure?
What have been your most successful actuarial projects within the public sector?
Describe a time when you had to make a difficult decision in a public sector actuarial context.
How do you approach problem-solving and decision-making in public sector settings?
What strategies do you use to ensure accuracy and precision in your work?
How do you stay up-to-date on changes to public sector policies and procedures?
What software programs have you used for public sector actuarial work?
Describe a time when you had to communicate complex actuarial concepts to non-actuaries.
How do you handle competing priorities between multiple public sector projects?

Common Tools in Industry

Microsoft Excel. A spreadsheet software used to store, organize, and calculate data. (eg: Create a graph to compare insurance rates over time)
Microsoft Access. A database management system used to store and manage large amounts of data. (eg: Set up a database to track customer claims)
Business Intelligence Software. A suite of tools used to analyze large amounts of data. (eg: Analyze actuarial data to determine the most cost-effective insurance solutions)
Tableau. A data visualization software used to create interactive visualizations of data. (eg: Create an interactive bar graph to compare insurance rates across different demographics)
Statistical Analysis Software. A set of tools used to conduct statistical tests on data. (eg: Perform a chi-square test to determine the correlation between two variables)
Actuarial Software. A specialized software used to calculate and analyze insurance policies and risk. (eg: Calculate the probability of a customer making a claim on their policy)

Professional Organizations to Know

American Academy of Actuaries
International Actuarial Association
Government Actuary's Department
Institute and Faculty of Actuaries
Casualty Actuarial Society
Society of Actuaries
Conference of Consulting Actuaries
Public Pension Analysts Association
The Actuarial Foundation
Canadian Institute of Actuaries

We also have Benefits Actuary, Actuarial Director, and Reinsurance Actuary jobs reports.

Common Important Terms

Actuarial Science. The application of mathematical and statistical methods to assess risk in insurance, finance, and other industries.
Actuarial Services. Services provided by an actuary to assess and manage risk in an organization.
Insurance Risk. The potential for a financial loss due to an event such as an accident or natural disaster.
Public Finance. The study of how governments raise and spend money, and how this affects public policy.
Pension Risk. The potential for a financial loss due to changes in pension plans or investments.
Investment Risk. The potential for a financial loss due to a bad investment or market fluctuations.
Mortality Risk. The potential for a financial loss due to the death of an insured individual.
Annuities. A financial product that pays out a fixed amount of money over a set period of time.
Risk Management. The practice of assessing and managing potential risks to an organization or individual.

Frequently Asked Questions

Q1: What is a Public Sector Actuary? A1: A Public Sector Actuary is a professional who provides advice and services related to the financial management of public sector organizations. They specialize in analyzing, modeling and forecasting financial risks and liabilities in order to inform decision-making. Q2: What type of organizations employ Public Sector Actuaries? A2: Public Sector Actuaries are employed by governments, local authorities, public sector agencies, health care organizations, universities and other non-profit organizations. Q3: What qualifications must a Public Sector Actuary have? A3: To become a Public Sector Actuary, one must obtain a bachelor's degree in actuarial science or a related field and become a member of the Institute and Faculty of Actuaries. Additionally, they must pass professional exams and have experience working in the public sector. Q4: What skills are necessary to be a successful Public Sector Actuary? A4: To be successful, Public Sector Actuaries must have strong analytical and problem-solving abilities, excellent communication and interpersonal skills and the ability to think strategically. They must also possess a thorough understanding of the public sector environment and be adept at using specialized software tools. Q5: What are some of the duties of a Public Sector Actuary? A5: The duties of a Public Sector Actuary include performing financial analysis, developing actuarial models, forecasting financial risks, advising on pension and insurance liabilities, assessing investment strategies, creating financial reports and providing expert testimony.