For what purpose might an organization conduct ongoing actuarial valuations?

Organizations conduct ongoing actuarial valuations primarily to assess benefit liabilities over time. Actuarial valuations use statistical and mathematical models to estimate future obligations related to pension plans, health benefits, and other post-employment benefits. By regularly evaluating these liabilities, organizations can make informed decisions about their funding strategies, ensure they are setting aside adequate resources to meet future obligations, and adjust their financial planning accordingly.

This ongoing assessment is crucial for managing the financial health of a company, particularly in environments subject to regulatory scrutiny and market fluctuations. Actuarial valuations can also help organizations anticipate how changes in demographics, mortality rates, and interest rates might impact their obligations, enabling them to adapt their strategies proactively.

The other options, while relevant to various aspects of managing human resources and benefits, do not specifically relate to the primary purpose of ongoing actuarial valuations. For instance, minimizing employee turnover and evaluating employee satisfaction focus more on workforce engagement and retention strategies rather than financial obligations. Similarly, determining administrative costs pertains to operational efficiency rather than the evaluation of liabilities associated with employee benefits.