Having trouble viewing this email? View it in your browser.
Recent Academy Activity, March 16-20, 2015

The Actuarial Standards Board recently adopted ASOP No. 49, Medicaid Managed Care Capitation Rate Development and Certification. The actuarial standard of practice was developed to establish guidance for actuaries preparing, reviewing, or giving actuarial advice on capitation rates for Medicaid programs, including those certified in accordance with 42 CFR 438.6(c). ASOP No. 49, which will be effective for opinions and certifications issued on or after Aug. 1, 2015, and can be viewed here.

Upcoming Events

  • Register now: The Academy Capitol Forum lunchtime webinar series returns March 25 with “How Did State & Local Pension Plans Become Underfunded?” Jean-Pierre Aubry of the Center for Retirement Research at Boston College will discuss the evolution of the unfunded liability in public plans and the impact of a few well-defined factors—such as poor investment returns, inadequate contributions, and benefit changes—on underfunding. Academy Senior Fellow Don Fuerst will moderate and discuss the work the Academy is undertaking on public plan issues.
  • Save the date: This year, as Social Security turns 80, both Medicare and the Older Americans Act turn 50, and the 6th White House Conference on Aging is convened, the issues of an aging population are in the spotlight. Join us on April 8 for an Academy Capitol Forum webinar on the topic. Leslie Fried, senior director for the National Council on Aging’s (NCOA) Center for Benefits Access, will offer an overview of the NCOA, discuss the importance of focusing on policy issues that have implications for an aging population, and highlight some of the work the NCOA is doing on issues ranging from long-term care to economic security to benefits access.

Public Policy Activities

  • The Life Capital Adequacy Committee submitted comments to the NAIC Life Risk-Based Capital (E) Working Group regarding the latest exposure drafts related to the XXX/AXXX reinsurance framework.

Newly Released

  • In the Spring 2015 issue of Retirement Account, read about Senior Pension Fellow Don Fuerst’s written testimony to a U.S. Senate Special Committee on Aging hearing, comments the Pension Committee sent to IRS on the use of mortality tables, comments sent to the ASB on modeling standards, and more.

Alerts

  • The Joint Economic Scenario Generator Project Oversight Group of the American Academy of Actuaries and the Society of Actuaries has updated the Academy’s Interest Rate Generator, used in regulatory reserve and capital calculations. This version includes updated U.S. Treasury yield curves through Dec. 31, 2014. Read the full alert here or in the member section under “Life Alerts.”
  • The Government Accountability Office released a report March 18 on crop insurance subsidies, recommending that Congress should “consider reducing premium subsidies for the highest income participants.” Read the full alert here or in the member section under “Casualty Alerts.”
  • The IRS on March 19 announced it will extend for one year the temporary nondiscrimination relief for certain closed defined benefit plans. Read the full alert here or in the member section under “Pension Alerts.”

Surprise an Exceptional Colleague or Mentor

  • As this is the Academy’s 50th anniversary, now is an exceptional time to recognize another Academy member who may have been a colleague or mentor for their service to our profession. Each year the Academy honors members who devote themselves to the actuarial profession through their public service and volunteer efforts with our Robert J. Myers Public Service Award and Jarvis Farley Service Award, respectively. The awards will be presented at the Academy’s 50th anniversary celebration in November.

    All members are invited to nominate Academy members for these, and also for our Outstanding Volunteerism Awards. Help us recognize those who have given so much to the profession today—learn more and submit your nomination(s) now.

Clarification on the Use of Copyrighted Academy Material in SOA Webinar

  • Because a number of actuaries have commented on the situation, we want to explain what happened with the Society of Actuaries’ March 18 webinar, in which copyrighted material from the Academy was used.

Academy in the News

  • Senior Pension Fellow Don Fuerst was quoted in two separate Bankrate.com stories examining retirement security. The article “Will Social Security be there when you need it?” examines options for addressing the program’s financial challenges, including increasing the program’s normal retirement age, which the Academy supports. “We’re working all the time to get Congress to make the changes sooner,” said Fuerst. The second piece, “Wake up! Your retirement is your problem” looks at retirement security risks relative to pensions and 401(k) plans. Fuerst commented on recent changes to the Employee Retirement Income Security Act and the Pension Protection Act.
  • Additionally, Benefitslink.com published written testimony Fuerst provided for a U.S. Senate Special Committee on Aging hearing, “Bridging the Gap: How Prepared are Americans for Retirement?”
  • An opinion piece in the Contra Costa (Calif.) Times and InlandPolitics.com on the underfunding of public employee pension plans cites the Academy issue brief “The 80% Pension Funding Standard Myth.” The columnist argues that the myth’s persistence has aggravated the state system’s long-term funding challenges.
  • A story in Risk Market News, “Insurers, Reinsurers Differ on Government Terrorism Timing,” discusses the government’s timetable for declaring an event an act of terrorism under the Terrorism Risk Insurance Program Reauthorization Act. It notes that the Academy’s Terrorism Risk Insurance Subcommittee recommended a timeline of less than 30 days for such a declaration in a March 6 comment letter to the Federal Insurance Office.
  • The “Smoke and Mirrors” cover story in March/April Contingencies about marijuana use and underwriting prompted a blog post by a Mother Jones reporter. He suggests that the story reflects a broader trend toward accepting legalization.
  • A (subscriber-only) Bloomberg BNA story on pension de-risking legislation introduced in two states cited a Pension Committee comment letter to the National Conference of Insurance Legislators and quoted committee Vice Chairperson Ellen Kleinstuber. The letter provided input to NCOIL as it considered a proposed Pension De-Risking Model Act. Kleinstuber provided perspective on an NCOIL resolution that is intended to help legislators as they consider de-risking legislation in their states, and especially on issues they could face in determining guaranty coverage.

Note: Some links in this email go to external websites and may require registration. The Academy is not responsible for the content of these websites. Links may expire.