Kenston Services GmbH acts as the Actuarial Function (VM function) for regulated pension funds.
Since 13.01.2019, pension funds have also been required to appoint an Actuarial Function, as was generally established for life insurance companies with the introduction of Solvency II.
The tasks of the Actuarial Function include coordinating the calculation of technical provisions, assessing the quality of the underlying data and ensuring the appropriateness of the methods and assumptions used. In addition, the Actuarial Function reports to the Board of Management on the reliability and appropriateness of the calculation and contributes to the effective implementation of the risk management system.
Similar to the Responsible Actuary, the prerequisites for the Actuarial Function are both professional suitability (extensive knowledge of actuarial and financial mathematics is required, as well as relevant experience with authoritative professional and other standards) and reliability.
In terms of content, there is a proximity or overlap with the responsible actuary, who, however, will not always have the detailed knowledge, for example, of the quality of the underlying data. In addition to the above-mentioned requirements, knowledge of the specific IT landscape of the pension fund and all relevant special features is also necessary. It is therefore important that a person with the relevant experience in the Actuarial Function has an overview of the relevant processes and risks and thus provides real added value to risk management and also to the Board of Management.