Actuarial Valuation of Long Service Award Obligation

The South African Human Rights Commission (SAHRC) is seeking a suitably qualified actuarial firm to perform an actuarial valuation of its Long Service Award obligation, which is settled in the form of Kruger coins. The valuation must comply with GRAP 25: Employee Benefits and GRAP 3: Accounting Policies, Changes in Accounting Estimates and Errors. The assignment responds to an Auditor-General South Africa audit finding on this obligation. The successful firm will determine the liability as at 31 March 2026 (Part A) and 31 March 2027 (Part B), and as at 31 March 2025 where a prior period error requires restatement of the opening balance. The work covers data validation, assumption setting using the projected unit credit method, and calculation of current service cost, interest cost, remeasurements and the liability reconciliation. Because the benefit is delivered in kind, the valuation must also model the Kruger coin price and its escalation against gold price and Rand exchange rate movements. Sensitivity analyses on the discount rate, coin price escalation and withdrawal rates are required.

Deliverables include a validated employee database, documented assumptions for Commission approval, a detailed actuarial valuation report, GRAP 25 disclosure schedules, accounting journals, working papers, and a restatement schedule where a prior period error is confirmed. Timeframes run from 3 working days (inception meeting) to 25 working days (final Part A report). The Part B deliverable is stated ambiguously in the Terms of Reference and should be clarified through the enquiry process. The firm must also respond to Auditor-General queries within 3 working days until the 2026/27 audit is complete, revise valuations where material adjustments arise, and present results to management and, on request, the Audit Committee. Mandatory requirements include a Fellow of the Actuarial Society of South Africa (FASSA) in good standing who signs the valuation, a lead actuary with at least 10 years' post-qualification GRAP 25 or IAS 19 experience, at least three employee benefit valuations for organs of state, public entities or municipalities in the last five years (supported by reference letters), a valid CSD registration and tax compliance status, and a declaration of any conflicts of interest with the Auditor-General's engagement team. Desirable criteria include experience valuing benefits linked to commodity prices, an internal peer review by a second FASSA, and capacity to meet audit timeframes.

Quotations must be a fixed, all-inclusive fee (including VAT, travel and disbursements) set out in the Annexure A pricing schedule, with separate fees for Part A, Part B and audit support, plus hourly rates for pre-approved additional work. Evaluation follows three phases: administrative compliance, functionality (minimum 70 out of 100 points, with experience of the firm, experience of the lead actuary, methodology and project plan scored), and price and specific goals on an 80/20 preference point system. Submissions must be emailed to HOprocurement@sahrc.org.za by 11:00 (GMT+2) on 13 November 2026, with the RFQ number and assignment title in the subject line. The Annexure A pricing schedule must be sent as a separate attachment. Prospective bidders should review the full Terms of Reference, SBD forms and the preference point rules before submitting, as late, incomplete or non-compliant submissions may be disqualified.