Public Policy News

The C1 Work Group made a presentation to the NAIC Investment Risk-Based Capital Working Group on the benefits and uses of a representative portfolio for C1 factors in the Risk-Based Capital formula.   
(August 24, 2013)
Senior Life Fellow Nancy Bennett presented the Academy’s paper on lifetime income to the NAIC ERISA Retirement Income Working Group at the NAIC Summer National Meeting.  Her presentation examining the financial risks of increased lifespans and the needs for retirees to secure lifetime income was based upon the Lifetime Income Risk Joint Task Force’s “Risky Business: Living Longer Without Income for Life.” 
(August 24, 2013)

The Life Practice Council and its subgroups delivered several presentations, reports and amendment proposals to the Life Actuarial Task Force on various topics at the August 22 and 23 meeting.  They included:

 

·         Amendment proposals on letters of credit, due premiums, and VM-20 scope

·         Report and presentation proposing an aggregate margin approach for VM-20

·         Report and presentation on a potential reserve methodology for non-variable annuities in VM-22

·         Report on nonforfeiture treatment of certain fixed deferred annuities

·         Presentation of a recent survey conducted on modeling efficiency

·         Presentation updating the task force on progress made by the AOMR Communication Group

(August 23, 2013)
The Pension Committee published an issue brief addressing the Pension Benefit Guaranty Corporation’s deficit in its single-employer program.  The issue brief concludes that the agency’s methods and assumptions have produced a reasonable representation of the PBGC single-employer program’s current obligation and deficit.  The issue brief explains that while policymakers should explore new sources of income to address the deficit, immediate premium increases on plan sponsors are unnecessary and potentially counterproductive. Read the news release. (August 22, 2013)
The Life Practice Council sent its Legislation-In-Brief to the NAIC Principle-Based Reserving Implementation Task Force that outlines details of and support for the NAIC model Standard Valuation Law and PBR methodology.  The LPC plans to distribute the brief to state insurance regulators and legislators.  
(August 20, 2013)
The Minimum Value Practice Note Work Group released a practice note exposure draft related to determinations of minimum value (MV) and actuarial value (AV) under the Affordable Care Act for a 45-day exposure period. Comments on Minimum Value and Actuarial Value Determinations Under the Affordable Care Act should be submitted by September 30. (August 12, 2013)
The Social Security Committee updated its annual issue brief on the 2013 Social Security Trustees Report that outlined the trust fund’s current financial status, long-range estimates of the program’s solvency, and the need to reform the program to ensure sustainable solvency. (August 12, 2013)
Reforms introduced by the Affordable Care Act (ACA) may create uncertainty for health insurance issuers. What does this uncertainty mean for your future financial statements, especially given increased ACA requirements for actuarial estimates in financial reporting? Register for the Aug. 22 webinar to learn about the financial reporting implications of several key provisions of the ACA—premium stabilization programs, new taxes and fees, advanced payments, and existing actuarial liabilities. (August 7, 2013)
Large Group Medical Business Practice Note Work Group released an updated practice note on large group medical business. (August 7, 2013)
The Pension Committee submitted its views to the Department of Labor regarding the agency’s proposal to add lifetime-income information to pension benefit statements. The committee commended the DOL for requiring lifetime income disclosures under section 105 of the Employee Retirement Income Security Act of 1974 and offered comments on specific topics, including assumed rates of return, drawdown illustrations, and projected retirement ages. (August 7, 2013)
Senior Pension Fellow Don Fuerst responded by letter to additional questions asked by Chairman Johnson of the House Ways and Means Subcommittee on Social Security. The letter, related to Mr. Fuerst’s May 23 testimony to the subcommittee, provided further analysis on changing the benefit formula of Social Security, and modifying the program’s early and full retirement ages. (July 31, 2013)
The Enterprise Risk Management Committee released the final version of its practice note, “Insurance Enterprise Risk Management Practices,” which discusses ERM practices within the insurance industry and concepts such as risk culture, risk organization, and risk governance.
(July 25, 2013)
Life PBR—The New Valuation World (Sept. 24–25): Register now for this interactive seminar that will combine instructor-led training with small-group discussions on the practical application of the principle-based reserving mechanics as outlined in VM-20. Principle-based reserve experts will discuss the latest developments, including the new PBR Actuarial Standard of Practice and PBR practice note—both expected to be completed this year. (July 24, 2013)
The C1 Work Group submitted a comment letter to the NAIC Investment Risk-Based Capital Working Group on the Illinois’ common stock proposal for C1 Risk-based Capital.  
(July 24, 2013)
Senior Life Fellow Nancy Bennett presented on annuities regulation at the National Conference of Insurance Legislators Summer Meeting. (July 13, 2013)
The Academy hosted a briefing on the need for retirees to secure a lifetime income. The briefing, "Risky Business: Living Longer Without Income for Life," coincides with the June 19 release of the Lifetime Income Risk Joint Task Force’s discussion paper. The Academy briefed policy makers on how improved life expectancy affects planning for retirement; the challenges to ensuring lifetime income; and potential solutions to the risk of outliving one's income, including emphasizing financial literacy and education, refocusing retirement plan design, and developing policies that support lifetime income needs. (June 27, 2013)
The Health Practice Financial Reporting Committee released a new white paper providing an overview of provisions in the Affordable Care Act - the premium-stabilization programs, new taxes and fees, advanced payments, and existing actuarial liabilities - that may create a certain amount of volatility on future financial statements. (June 25, 2013)
The U.S. Government Accountability Office (GAO) is looking for credentialed actuaries from any practice area to fill two open Senior Actuary positions. The deadline for application is July 19, 2013. Click here to learn more and how you can apply. (June 24, 2013)
The Medicare Steering Committee submits written testimony to the House Ways and Means Subcommittee on Health regarding a hearing on the 2013 Medicare Trustees Report. (June 20, 2013)
The American Academy of Actuaries will host a June 27 Capitol Hill briefing that will examine the financial risks of increased lifespans, and the need for retirees to secure lifetime income. The Academy’s Lifetime Income Initiative is part of its continuing effort to provide objective, unbiased information to serve the public and the United States actuarial profession. (June 20, 2013)