How frequently does GFOA recommend actuarial audits to be conducted?

The Government Finance Officers Association (GFOA) recommends conducting actuarial audits every five years. This recommendation is grounded in the need for adequate oversight of actuarial assumptions and methodologies used in pension and other post-employment benefit plans. Regular audits help to ensure that the calculations are accurate, reliable, and in alignment with current regulations and standards. By setting this timeframe, GFOA aims to strike a balance between ensuring that organizations have sufficient time to implement changes based on audit findings and maintaining a responsible oversight process that allows for timely interventions when necessary. Regular five-year reviews facilitate ongoing improvements and adjustments as demographic and economic conditions evolve, thereby helping organizations keep their financial reporting transparent and accurate.