October 13, 2009

Dear Academy Colleagues,

We are writing to you today to bring to your attention an unprecedented event and our response to it. Since its founding in 1965, the Academy has never had a proxy vote on any matter, either by the membership at large or by the Board of Directors. We are, however, aware that there is an effort underway by some members of the Academy to solicit proxies from members who will not be attending the annual meeting in Boston on Monday, October 26 to oppose the Nominating Committee's proposed slate of regular directors in the election.

Most nonprofit corporations prohibit proxy voting in their bylaws. The Academy's bylaws were established in 1966 and have been amended at various times since then. At no time have those bylaws prohibited or permitted proxy voting. We believe that proxy voting can easily be abused without proper processes to support it.

This year, the Academy's Annual Meeting is being held in conjunction with the Society of Actuaries' meeting in Boston. We are cognizant that there are many members of the profession, including members of the Casualty Actuarial Society who might not be attending the Society of Actuaries meeting, and could be excluded from this potentially contentious election process without this option. In order to facilitate fair participation in the election of regular directors by members who support the Nominating Committee's slate of candidates but cannot attend the annual meeting in person, we have prepared a form to be used by those members to vote by proxy.

We hope to ensure a fair process by asking members to print the proxy form attached to this message, date it and affix an original signature, and either (1) return a scanned version of the signed document to the Academy at this email address academyproxy@actuary.org, or (2) fax it to one of these numbers:

1. 202-872-8301
2. 202-872-1948
3. 202-223-1595
4. 202-223-1248

If you have difficulty printing the attachment, the proxy form can be printed from the Academy website at this link http://www.actuary.org/pdf/academy/proxy.pdf.

Members are enthusiastically encouraged to support the slate of regular directors recommended to you by the Nominating Committee, who engaged in an extensive process to present four of the most experienced and highly regarded actuaries in their fields: Mary D. Miller, Tom Wildsmith, Dave Neve, and Ron Gebhardtsbauer. They include members with expertise from each of the four practice areas: casualty, health, pension, and life; from traditional company, regulatory, consulting and academic backgrounds; and all with a wealth of experience in representing the profession in public policy work on behalf of the Academy for many years. Please see the nominees' specific qualifications and background in the following link http://www.actuary.org/email/2009/misc/nominations_2009.html.

We urge you to give your proxy to Steve Lehmann, Chairperson of the Nominating Committee, by using the attached proxy form. If you have any difficulty in downloading and returning your completed proxy please contact Andrew Simonelli (Simonelli@actuary.org) or Kasha Shelton (Shelton@actuary.org) or via telephone at 202 223-8196. Please send us your completed form by 5 pm ET on Saturday, October 24, 2009 so that verification of information can be made.

The Academy leadership agrees that there are governance issues that need to be addressed, and has created a task force to examine them. We believe that the task force should be given a chance to seriously and thoughtfully consider governance changes. In so doing, we hope to preserve what is best for the future of the Academy in a measured, planned way. That work will continue, as we make this transition.

Sincerely,

John Parks, President

Steve Lehmann, Chairperson, Nominating Committee

Attachment: Proxy form