This Week, February 17, 2012

News from the Actuarial Standards Board

• The ASB recently approved an exposure draft of the newly revised Introduction, now titled Introductory Actuarial Standard of Practice. Comments are due by May 31, 2012. Learn more [1].

Member Alerts

• Pension Alert: Information is available to pension actuaries interested in registering for the Feb. 23 Internal Revenue Service’s presentation on funding-based benefit restrictions for single-employer defined benefit plans. Log in [2] to read the full alert.

• Health Alert: President Obama’s 2013 Budget includes several provisions aimed at improving the sustainability of the Medicare program. The President’s blueprint often is not the basis of congressional action; but it does provide insights into the administration’s public policy priorities. Log in [3] [2]to read the full alert.

• General Insurance Alert: The North American Actuarial Council Collaborative Research Group released a research report, The Effect of Deflation or High Inflation on the Insurance Industry, which examines issues in measuring inflation, the effect of inflation or deflation on the insurance industry, and risk mitigation strategies. Log in [2] to read the full alert.

Website: New Postings

• The Pension Committee submitted a letter [4] to the Internal Revenue Service and Department of the Treasury addressing elections to reduce funding balances for defined benefit pension plans.

• The Academy’s Medical Professional Liability Insurance Committee published a fact sheet [5] on the Death, Disability, and Retirement Extended Reporting Endorsement.

• The Life Reserve Work Group submitted a proposed amendment [6] to the NAIC’s Life Actuarial Task Force regarding the simplified mortality approach to the proposed principle-based reserve (VM-20) requirements.

• The Contingent Annuity Work Group sent a letter and analysis [7] to the NAIC’s Contingent Deferred Annuity (A) Subgroup comparing market returns for contingent deferred annuities and self insurance.

Upcoming Events

• Registration is now open for the March 14 webinar: U.S. Qualification Standards—Key Aspects and your FAQs Answered. Join the Council on Professionalism on March 14 for a refresher on the U.S. Qualification Standards and an in-depth look into the more complicated aspects relating to qualifications and practicing U.S. actuaries, including changing practice areas and emerging practices. Panelists also will provide clarification about certain key provisions of the standards and take your questions live during this 90-minute webinar. Learn more [8].

• Actuaries from all practice areas are invited to attend the March 7 webinar, Lifetime Income—Risks and Solutions. Panelists will examine lifetime income risks, current options for addressing these risks, and how the actuarial profession can contribute to current policy solutions to help retirees better prepare for managing lifetime retirement needs. Learn more [9].

• The Academy will host a March 15 webinar to discuss the concepts underlying risk classification as it is applied in all actuarial practice areas. Based on the Academy Risk Classification Work Group’s monograph, On Risk Classification [10], the webinar will focus on the important role that risk classification can play in ensuring that such systems are successful. Of interest to all actuaries concerned with financial or personal security systems, this webinar is jointly sponsored by the Academy and the Society of Actuaries. Learn more [11].

Media Coverage

• The Future. Now that the CLASS Act program has died, what impact will that have on sales? [12]
  LifeHealthPro, Feb. 14, 2012
  Providing background on the HHS’ suspension of the CLASS Act in October 2011, this publication quoted Malcolm Cheung of Prudential Financial Inc., Newark, N.J., a member of an Academy group that reviewed an early version of the act, noting, “We had recognized as actuaries that there were some program design issues that would make the program itself very difficult to manage over the long term.”

• Don’t force DD Reform [13]
  Wichita Eagle, Feb. 16, 2012
  In an editorial, the largest circulation newspaper in Kansas cited a 1996 Academy monograph on Medicaid managed care.

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