Actuarial Science

Definitive Guide to SP4 – Pensions and other Benefits

sp4

You can use this study guide to get through Subject SA4 more easily. You can refer to it at any time during your studies because it has all the information you will need before beginning to study Subject SA4 for the 2023 tests.

The manual is divided into two sections:

  • The information in Part 1 is exclusive to Subject SA4.
  • General information about the Specialist Advanced (SA) subjects is provided in Part 2.

The major goal of Pensions and Other Benefits Specialist Principles (SP4) is to help students learn how to apply the key actuarial planning and control principles required for the financial management of pensions and other benefits in straightforward scenarios.

It builds on information from earlier courses and aims to give students the knowledge and practical experience in pensions that an accredited actuary might need to work in a consultancy, insurance company, government agency, or other similar financial institution.

SP4 - Pension and Other Benefits

The objective of Pensions and Other Benefits Specialist Advanced (SA4) is to raise a student’s level of skill to one that enables them to successfully apply their understanding of the benefits environment and the actuarial practice principles to challenging pension and other benefit-related circumstances.

It expands on the information provided in Subject SP4 and prior courses and aims to give students the knowledge and practical experience necessary to be a senior management in the consulting, insurance, or public sector industries, as well as in other related financial institutions.

Aim & Link to Other Subjects

The purpose of this course is to help applicants gain the skills necessary to apply their understanding of the benefits environment (in the UK and other jurisdictions) and the principles of actuarial practice to the financial management of pensions and other benefits under challenging circumstances.

 Link to Other Subjects 

  •  Subject SP4 – Pensions and Other Benefits Specialist Principles.
  •  Subject P4 – Pensions and Other Benefits UK Practice Module. 

Assessment & Core Reading

One exam will serve as the basis for this subject’s evaluation. The candidate will be required to integrate analysis, evaluation, and result interpretation in order to derive conclusions from challenges in the pensions and employee benefit context using actuarial practice and principles. According to the aforementioned syllabus topic weightings and skill levels, a variety of questions will be assigned with variable marks.

This three hours and twenty minute test is timed, online, and has a length.

Before taking any IFoA examination, please read the most recent versions of the IFoA Examinations Handbook and IFoA Examination Regulations posted on the IFoA website.

 Core Reading 

The Core Reading is fully incorporated throughout the Subject SA4 Course Notes.

The ActEd course materials will be the primary means of instruction for students, and the exam will be based on the pertinent Syllabus and Core Reading.

Exams administered by The Actuarial Education Company in 2023

The Institute and Faculty of Actuaries have compiled a list of compulsory reading for Subject SA4 and it is available in Chapter 1. Chapter 1 also includes a list of further reading material and sources that may be helpful in gaining additional knowledge. The introduction to each chapter also includes a list of the sources utilized to create the Core Reading content on the subjects discussed there.

Study Skills & Assessment 

The Core Reading is fully incorporated throughout the Subject SA4 Course Notes.

The ActEd course materials will be the primary means of instruction for students, and the exam will be based on the pertinent Syllabus and Core Reading.

Exams administered by The Actuarial Education Company in 2023

The Institute and Faculty of Actuaries have compiled a list of compulsory reading for Subject SA4 and it is available in Chapter 1. Chapter 1 also includes a list of further reading material and sources that may be helpful in gaining additional knowledge. The introduction to each chapter also includes a list of the sources utilized to create the Core Reading content on the subjects discussed there.

  •  analysis 
  • synthesis
  • critical judgement
  • communication. 

You must do more than just read the course notes and practice some questions if you want to become proficient in these skills.

The SA Subject exam is probably going to include fewer knowledge-based questions than the SP Subject exams did. The exam will involve more planning and thinking, which is challenging when you are pressed for time. Before taking the exam, you must be aware of this and take action.               

Study Skills 

We suggest that you develop a realistic study plan, building in time for relaxation and allowing some time for contingencies. Be aware of busy times at work, when you may not be able to take as much study leave as you would like. Once you have set your plan, be determined to stick to it. You don’t have to be too prescriptive at this stage about what precisely you do on each study day. The main thing is to be clear that you will cover all the important activities in an appropriate manner and leave plenty of time for revision and question practice

Aim to plan your study time so that you have enough time for the ideas you encounter in this course to “bed down” in your head. The majority of successful students will likely try to finish the course at least six weeks before the test to allow enough time for revision.

You will have a much deeper understanding of the big picture if you finish the course as soon as feasible. Additionally, it will enable you to organize your review so that you can focus on the crucial and challenging portions of the course.

SP4 SYLLABUS by IFOA

  1. Pension provision and general business environment (20%).
  2. Scheme design and financing (20%).
  3.  Managing schemes and risks (20%).
  4.  Models, valuations and setting assumptions (30%).
  5.  Monitoring experience and the Control Cycle (10%)

Actuarial Science SP4 Demo Lectures

SP4

11,000.0014,000.00

Exam Fees

SR. NO. SUBJECT FOR INDIA AND SAARC COUNTRIES (INR) FOR OTHER THAN SAARC COUNTRIES (INR)
Core Principles
1 CS1 – Actuarial Statistics 5000 Not Applicable
2 CS2 – Risk Modelling and Survival Analysis 5000 Not Applicable
3 CM1 – Actuarial Mathematics 5000 Not Applicable
4 CM2 – Financial Engineering and Loss Reserving 5000 Not Applicable
5 CB1 – Business Finance 3000 7500
6 CB2 – Business Economics 3000 7500
7 CB3 – Business Management 10000 10000
Core Practices
8 CP1 – Actuarial Practice 8000 20000
9 CP2 – Modelling Practice 10000 Not Applicable
10 CP3 – Communications Practice 8000 20000
Specialist Principles Stage (SP)
11 SP1 – Health and Care 6000 15000
12 SP2 – Life Insurance 6000 15000
13 SP4 – Pension and Other Benefits 6000 15000
14 SP5 – Investment and Finance  6000 15000
15 SP6 – Financial Derivatives 6000 15000
16 SP7 – General Insurance Reserving and Capital Modelling 6000 15000
17 SP8 – General Insurance – Pricing 6000 15000
Specialist Advanced Stage (SA)
18 SA1 – Health and Care 7500 18750
19 SA2 – Life Insurance 7500 18750
20 SA3 – General Insurance 7500 18750
21 SA4 – Pension and Other Benefits  7500 18750
22 SA7 – Investment and Finance 7500 18750

Examination Dates:

Timetable –November 2023 Examination

Tuesday 21st November – Thursday 30th November 2023

Day and Date Forenoon Afternoon
  Subject   From to   Subject   From to
21-11-2023  

T   Tuesday    

CB1 Business Finance

   SP1 Health and Care

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.

  CP1A Actuarial Practice 14.45 – 18.00 Hrs.
22-11-2023

Wednesday

  CB2 Business Economics

    SP2 Life Insurance

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.  

CP1B Actuarial Practice 14.45 – 18.00 Hrs.
23-11-2023

Thursday

  SP5 Investment and Finance 10.15 – 13.30 Hrs. SA1 Health and Care

SA2 Life Insurance

SA3 General Insurance  

SA4 Pensions and Other Benefits

   SA7 Investment and Finance

14.45 – 18.00 Hrs.
24-11-2023

Friday

  CS1A Actuarial Statistics

   SP4 Pensions and Other

   Benefits

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.

  CS2A Risk Modelling and Survival

Analysis

   SP7 General Insurance

Reserving and Capital Modelling

14.45 – 18.00 Hrs.

14.45 – 18.00 Hrs.

25-11-2023

Saturday

CM1A Actuarial Mathematics

SP6 Financial Derivatives

10.15 – 13.30 Hrs.

10.15 – 13.30 Hrs.  

CM2A Financial Engineering and Loss

   Reserving

   SP8 General Insurance :    Pricing

14.45 – 18.00 Hrs.

14.45 – 18.00 Hrs.

28-11-2023

Tuesday

  CS1B Actuarial Statistics

( Computer based-R)

 

10.15 – 12.00 Hrs.   CS2B Risk Modelling and Survival

  Analysis (Computer  based-R)

14.45 – 16.30 Hrs.
29-11-2023

Wednesday

  CM1B Actuarial             Mathematics

(   Computer based-Excel)

    CP3 Communication                         P    Practice

(Computer Based- Word)  

10.15 – 12.00 Hrs.

10.15 – 13.30 Hrs

  CM2B Financial   

  Engineering and Loss        Reserving (Computer     b ased-Excel)

14.45 – 16.30 Hrs.
30-11-2023

Thursday

  CP2A Actuarial Modelling

( Computer based-Excel)

10.15 – 13.30 Hrs.   CP2B Actuarial Modelling

(Computer based-Excel)

14.45 – 18.00 Hrs.

 

AM: PM:
9.30  Room Preparation 14.00  Room Preparations
10.00  Students enter room 14.30 Students enter room
10.15 – 13.30  Exam Duration 14.45 – 18.00  Exam Duration

Result Declaration Date: 30th January 2024, Tuesday

Exam Center :

Code Center Name Code Center Name
1 Mumbai 9 Jaipur
2 Delhi 10 Ahmedabad
3 Kolkata 11 Lucknow
4 Bangalore 12 Chandigarh
5 Gurgaon 13 Indore
6 Chennai 14 Kochi
7 Pune 15 Coimbatore
8 Hyderabad 16 Guwahati

Exam Format

3 hours and 15 minutes exam.

Scientific Calculator is allowed in exam. However, you can use only one of the models from the list below. This can also be used for future exams.
1. Casio FX82 (ES/MS) (with or without any suffix)
2. Casio FX83 (ES/MS) (with or without any suffix)
3. Casio FX85 (ES/MS) (with or without any suffix)
4. Sharp EL531 (with or without any prefix or suffix)
5. Texas Instruments BA II Plus (with or without any suffix)
6. Texas Instruments TI-30 (with or without any suffix)
7. Hewlett Packard HP12c (with or without any suffix).

Frequently Asked Questions

What is sp4 in actuarial science ?

SP4: Pensions – The actuarial planning and control principles, as well as the mathematical and economic methods required for the financial management of pension benefits.

What subjects in SP4?

Pension provision and general business environment (20%).
            Scheme design and financing (20%).
            Managing schemes and risks (20%).
            Models, valuations and setting assumptions (30%).
            Monitoring experience and the Control Cycle (10%)

What is sp4 Actuary?

SP4: Pensions – The actuarial planning and control principles, as well as the mathematical and economic methods required for the financial management of pension benefits.