CIA (e)Bulletin/(e)Bulletin de l'ICA

Canadian Institute of Actuaries/Institut canadien des actuaires

March 2011
Your Institute


By Micheline Dionne, FCIA
CIA President

Amendments to Rules 6 and 13 – Revision of the process

During the drafting of Rules 6 and 13, the task force conducted a survey to determine what the other actuarial associations and professional communities were doing and the importance they were attaching to their Rule 13. "Why?" came the response. "That rule affects so few people!"


Well, the CIA never does things like everyone else, and its treatment of – and recent debate on – Rule 13 are no exception: 455 members followed the debate on the amendments listserver, 163 signed up for the February 26 webcast and 386 voted on the question. Given the attendance at recent annual meetings, one could say that we’ve reached new heights in terms of participation. This approach, therefore, seems like the right way to go. Of course, we’d prefer to see 3,000 members participate, but that would be pie in the sky!


During the exchange period, we received a number of verbal comments claiming a lack of interest by the CIA in the opinions expressed by its members. To counter this perception, Daniel Pellerin, who was originally going to reply to comments only once a week, graciously agreed to reply more often. We were surprised, then, to read that the frequency of his replies could be construed as intimidation. So how do we go about communicating sufficiently without giving the impression of abusing the process? Judging by this first experience, it seems it would have been preferable to indicate right from day one that the CIA would weigh in only once a week. Knowing this in advance, we would have anticipated this perception of a lack of interest on the CIA’s part, while at the same time featuring divergent opinions more prominently. We apologize if some people saw what we were doing as intimidation. We’ll try to do better next time.


Enterprise Risk Management (ERM) Symposium, March 15 and 16


Thirty-eight members attended the networking breakfast held for Canadians. It’s nice to see the interest in this new area of practice and the vitality exhibited by its young (and not so young) practitioners. Keep up the good work, because much of what the future of the profession has to offer is in your hands!


Federal government budget lockup, March 22


The CIA received an invitation to study the federal budget during the lockup preceding its official unveiling. There was a definite buzz in the room as we pored over the documents made available to us in search of progress on the pension plan front, but sadly all we found were promises of studies on pension plans and employment insurance. In any event, the simultaneous announcement of potential elections took the spotlight away from the budget, and none of our interviews – of which there were too few to begin with – was broadcast. Be that as it may, we’ll have our chance, because the upcoming elections will certainly afford us the opportunity to question the parties on their policies concerning pension plans, employment insurance and health care, and to get our views across.

March 23 Board meeting

March 23 was quite a busy day. Agenda items included the University Accreditation Program, recognition of associateship and the Society of Actuaries’ (SOA) new strategy for Canada. More information about the first two items is on its way. As for the SOA’s Canadian strategy, we are in close discussions with them. While applauding their desire to better serve Canadians, we hope that the services they will be introducing complement those already being received by Canadians. Service duplication would be regrettable. More specifically, we could benefit from their research expertise in areas where the Americans have the lead over Canada, such as health care, for instance.


If you have any questions or comments, please feel free to write me at president@actuaires.ca.

Micheline Dionne, FCIA, is the President of the Canadian Institute of Actuaries.



 
Spotlight


By Dave Pelletier, FCIA

This article is an update of activity of the Actuarial Standards Board (ASB) since my first report as ASB Chair for the (e)Bulletin in October. A lot has been happening.
 

Approved final standards and promulgations

A significant result was approval of the revised final standard dealing with actuarial work in connection with public personal injury compensation plans (essentially workers’ compensation plans and the Société de l'assurance automobile du Québec—SAAQ). The effective date is March 15, but with a deferred effective date of December 31, 2014 for a couple of aspects to enable practitioners and entities to prepare for their implementation. Designated Group Chair Nick Bauer and his team are to be thanked for bringing this to a successful conclusion.

After many years of discussion, the ASB approved a revised standard for actuarial evidence work dealing with marriage breakdown. The story doesn’t end there, however, and I’ll return to this item later in this article.


Also approved as final were a minor revision to the portion of the Standards of Practice dealing with Margins for Adverse Deviation for property and casualty insurers as well as a promulgation on calibration criteria utilized with insurer stochastic modeling and segregated fund valuation. Updated guidance in this latter area is expected to be forthcoming over the next year based on work underway directed by the CIA’s Committee on Life Insurance Financial Reporting.

Exposure drafts

Just one exposure draft has been approved for publication since October. In February, at long last, we published the exposure draft of revisions to portions of the general standards dealing with the recognition of "events". This has proven to be a tricky area to get right (the notice of intent was published in April 2009!), and we look forward to comments on it by the deadline of May 31, 2011. ASB member Stephen Butterfield co-chairs this Designated Group along with Kevin Lee.

Notices of intent

Since October, we’ve issued one notice of intent, which is with regards to Bill C-57, federal legislation actually passed some time ago which comes into effect later this year now that final supporting regulations have been published. It provides for an insurer’s Appointed Actuary to opine on a number of matters involving participating and adjustable policies. Nick Bauer (in theory retired from the ASB) is Chair of the Designated Group, which has an ambitious timetable to publish an exposure draft by May and reach adoption of the final standard by October. The comment deadline on the notice of intent is March 31, 2011.

Other work underway

There is considerable work ongoing on several other areas, and the ASB will have a very full agenda at its upcoming meetings. The major areas are:
  • A revised exposure draft of a new standard dealing with ratemaking in P&C insurance, which is now expected for our June meeting;
  • An exposure draft dealing with amendments to the standards dealing with post-employment benefit plans, also expected for our June meeting;
  • Revisions to the life insurance standards to be submitted for final review at a special May meeting and approval at our June meeting, dealing with the use of mortality improvement in insurers’ valuations of life insurance and annuity products, as well as an associated promulgation of a scale of mortality improvement rates;
  • Revisions to the general Standards of Practice, being targeted for approval at our meeting later this month;
  • Revisions to the actuarial evidence standards, other than those dealing with marriage breakdown, for which we’ll be considering a draft notice of intent at our meeting later this month;
  • A revised exposure draft of the portion of the insurer standards dealing with dynamic capital adequacy testing (DCAT). Numerous comments were received on the original exposure draft, with changes significant enough to require a revised exposure draft, a preliminary draft of which we’ll be reviewing this month;
  • Ongoing monitoring of the developments at the International Accounting Standards Board with respect to the revisions it is making to its financial reporting standard dealing with insurance contracts (IFRS 4). This in turn has brought about increased activity on the part of the International Actuarial Association (IAA) as it looks to increase the degree of convergence of actuarial standards worldwide, develop "model" standards for consideration by member associations and standard-setters worldwide, and improve its own due process with respect to the development and adoption of such standards. Ultimately this work at the international level will have significant impact on certain of our Canadian standards. In the meantime, the Working Group established by the ASB to oversee our activity in this area has produced an outline of what standards it would consider desirable to support actuarial work in connection with the revised IFRS 4, but the end result will depend heavily on what comes from the IAA.
The request for review

There exists a process (it can be found at the Actuarial Standards Oversight Council (ASOC) website) for the review of the due process that led to a standard of practice adopted by the ASB. That process calls for a petition with a minimum of 50 signatures by FCIAs addressed to the Chair of ASOC within 90 days after adoption of a standard. Such a petition, signed by 83 members, has come forward with respect to the standard dealing with actuarial evidence work in connection with marriage breakdown. In accordance with that review process, the ASB will be preparing a report for ASOC regarding the steps taken over the years that led to the adoption of that standard. The normal timeline laid out in the review process could potentially extend over five months from the date of receipt of the petition; however, we feel that the practitioners in this area, the profession generally, and the public are better served if we’re able to assist ASOC in accelerating the process, while not sacrificing the thoroughness of the review. Whether the timeline can be beaten remains to be seen.

It’s important to note that such requests for a review with respect to a standard focus on whether due process was appropriately followed during the development and adoption of the standard, not on the standard itself. In the course of earlier public discussions about the development of the standard, the appropriateness of the due process itself was questioned. Prior to the request for the review coming forward, the ASB initiated an assessment of its due process, but we’ve now deferred any action pending the outcome of the review.


ASB membership

We were pleased to welcome an additional member, Marthe Lacroix, a property and casualty practitioner from Québec City, onto the Board effective January 1. The terms of several members expire in the next several months, and we plan to bring on three new members on July 1. A key consideration for ASOC as it appoints those new members will be balanced representation by practice area.

Dave Pelletier, FCIA, is Chair of the Actuarial Standards Board.
 
MOVERS AND SHAKERS

So you understand the importance of protecting the environment. How can you spread the word about reducing energy use and cutting carbon emissions?

One way is to give a green gift, passing on the message while making people happy. And there are numerous organizations offering environmentally-friendly presents to suit every budget:
  • Treehugger has compiled a gift guide of products divided by categories including Green Geek and Health and Wellness Guru. Its stock includes such items as an eMonitor, which tracks your energy usage and suggests possible savings; the Bobble self-filtering water bottle, and the handmade Bugabike, produced from beechwood grown in sustainable forests.
  • The Treehouse Green Gifts sells recycled, homemade and organic presents, from recycled wrapping paper to birdhouses constructed of reclaimed wood.
  • Gaiam, whose message is "good for them, good for you", can supply you with yoga clothing, personal development DVDs, shower filters and more.
  • Planetfriendly has an extensive list of green places to shop and ethical gift ideas in cities across Canada and the U.S.
  • Toronto-based Food Share sells its Good Food Box for between $12 and $32, enabling groups of eight to 10 people in an apartment building, office, daycare or similar site to obtain a box of  top-quality, fresh, Ontario-grown fruit and vegetables delivered to their neighbourhood.
  • Green Ostrich says some of the more unusual environmentally-friendly gifts could be among the most successful. With that in mind, it can sell you pencils made from tightly-rolled recycled newspaper, a four-piece set of children's toys produced from recycled milk containers, and utensil sets made from a single sheet of bamboo in a recycled plastic case.
  • Despite its name, Eco-Handbags of Québec also stocks tote bags, wallets, messenger bags and many other types, all produced from such varied recycled material as 35mm slides, truck tire inner tubes, zippers and even skateboards.
 
Institute News
By Chris Fievoli, FCIA

On March 1, the CIA was visited by Jane Curtis, President-elect of the Institute and Faculty of Actuaries in the United Kingdom. Speaking to CIA members in Toronto, she described the university accreditation system in the UK, which is of particular interest to the CIA as we embark upon our own accreditation process.

There are a number of parallels between the UK system and that used by the CIA. The UK system is essentially comprised of four stages: core technical, core applications, specialist technical, and specialist applications. Candidates can meet these requirements through the completion of exams and residential courses. As with the Canadian system, there is also a professionalism course and a practical work requirement.

The Institute and Faculty, though, also offers exemptions for successful completion of approved university courses. Exemptions are available for all the core technical subjects at the undergraduate level. In addition, postgraduate courses can generate exemptions for up to two core application and two specialist technical subjects. A total of 13 universities have been approved for exemptions. These include schools that have a program with a long history and a strong research record (University of Waterloo being one of them), top-end universities favoured by employers, and new providers seen to have a good reputation.

Prior to 2005, exemptions were granted on a subject by subject basis. That was before the Morris report, which investigated the actuarial profession in the UK in light of the near-collapse of Equitable Life. One of the report’s conclusions was that the profession should consider moving towards more of a university-based education, with individual universities given greater freedom to teach basic actuarial education. At the same time, the profession would be expected to focus its oversight more on the fellowship-level examinations. In response to that, the Faculty and Institute moved to what we would call a program accreditation model; in other words, exemptions would be granted for multiple exams upon successful completion of a university program, as opposed to mapping university courses to specific exams. The profession has maintained a strong oversight of the programs offered by universities, making extensive use of independent examiners. Universities are expected to maintain standards, and there is one example of an exemption agreement being withdrawn for a university failing to do so.

The experience in the UK has been positive. Candidates with exemptions have performed just as well in the upper-level exams as those who followed the traditional route. As well, employers have become more accepting of students with exemptions. It is apparent that the actuarial profession in the UK has very strongly embraced the concept of university accreditation.

As the CIA moves in the same direction, it will be essential for us to pay close attention to the UK’s experience. The course-by-course system that the CIA will be following has been used by the Institute and Faculty for several years. Their experience with independent examiners and their general oversight process will also provide valuable lessons for the profession in Canada. Ms. Curtis’ presentation demonstrated that a large, reputable actuarial organization can successfully integrate a university system into the qualification process.

Chris Fievoli, FCIA, is the resident actuary at the Canadian Institute of Actuaries.

 
Raymond Norman, FCIA (1975)
 
THIS MONTH'S PUBLICATIONS
Webcast – A Discussion on Education with Jane Curtis, President-elect of the UK Institute and Faculty of Actuaries

Tuesday, March 1, 2011
8:30–9:30 a.m. EST

Interested in the discussion on accreditation? In this live broadcast from the exclusive breakfast event in Toronto, Jane Curtis, President-elect of the UK Institute and Faculty of Actuaries’ (IFA) board of directors, will share the institute’s experience with university accreditation for actuarial exam exemptions. This is a unique opportunity for the CIA to learn from the IFA as we work towards the implementation of university accreditation in Canada.

There is no fee to participate in this webcast.

Link: http://www.actuaires.ca/webcasts/index_e.cfm

Contact with Questions: Alicia Rollo, CHRP, director, education and professional development, at alicia.rollo@actuaries.ca

CIA to Discontinue Providing Paper Publications to Members Effective June 1, 2011

At the December 7, 2010 meeting of the Member Services Council (MSC), a motion was passed to discontinue the distribution of paper publications to members, effective June 1, 2011.

Currently members can have paper versions of CIA publications mailed to them for a fee of $115 per year. Following a review of the actual costs, the MSC decided to withdraw this service as it is no longer economically viable.


Contact with Questions: Lynn Blackburn, director, member services and standards, at lynn.blackburn@actuaries.ca

Book a room now for the CIA Annual Meeting on June 29–30, 2011

Following the announcement that Prince William and Kate Middleton will visit Ottawa on July 1, the demand for accommodations in the city is escalating. Consequently, we encourage anybody who is planning to attend the CIA Annual Meeting on June 29–30 to book a room as soon as possible. The CIA has reserved a block of rooms at the Westin Ottawa—the meeting’s venue—at a special rate, but it may fill up quickly.

To make your reservation click here, or call Westin’s central reservations line on 1-800-228-3000 and be sure to mention that you are booking within the Canadian Institute of Actuaries Annual Meeting room block. Reservations may be cancelled without charge up until 4 p.m. on the day of your arrival.


Those interested in extending their stay to include the royal visit on Canada Day should check http://www.canadascapital.gc.ca/canadaday/ nearer July 1 for details of the day’s events.

See you in Ottawa!

Link: http://www.starwoodmeeting.com/StarGroupsWeb/res?id=1102161727&key=13E2D

Contact with Questions: Nancy Jenkinson at nancy.jenkinson@actuaries.ca; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

FINAL REMINDER
Continuing Professional Development (CPD) Annual Filing Deadline – February 28, 2011


Please be reminded that the deadline for filing your annual CPD compliance/exemption statement is February 28, 2011.

All Fellows, Affiliates and Associates of the Institute must submit a compliance or exemption statement (except members on a Category 1(a) waiver of dues). You may file your annual statement online on the My CPD page of the Members Site. Just click on the File my 2009–2010 Annual CPD Compliance Statement button and choose the appropriate category.

Important reminder: Following this filing period, the CPD Compliance Subcommittee will be performing further verification of compliance by conducting a review of a selection of member records from each filing category. For more information, please refer to the article in the June 2010 (e)Bulletin.

Link: http://www.actuaries.ca/members/professional/my_cpd_e.cfm (Please remember to log into the Members Site before using the link.)

Contact with Questions: cpd.comments@actuaries.ca

Notice of Intent to Revise Subsection 2460 – Report to the Directors of the Standards of Practice Part 2000 – Practice-Specific Standards for Insurance, Incorporation of Standard Wording for Fairness Opinions

The Parliament of Canada adopted Bill C-57, amending the Insurance Companies Act, in November 2005. Certain sections amended by Bill C-57 dealing with corporate governance were not proclaimed at that time because supporting regulations were not yet prepared. The regulations were necessary for compliance with and proper administration of those sections.

Since the fairness opinions would potentially be available to the public, the Actuarial Standards Board (ASB) considers it desirable to standardize the language of unqualified fairness opinions. The objective is to ensure that opinions are unequivocal and uniform, the interpretation by the public of such opinions of Appointed Actuaries is therefore consistent, and it obviates potential misinterpretation arising from minor differences in language among opinions intended to convey the same message.

The ASB is soliciting feedback on this notice of intent from members of the CIA and other interested parties. Those wishing to comment should direct those comments to Nicholas Bauer at nbauer@eckler.ca, with a copy to CIA resident actuary Chris Fievoli at chris.fievoli@actuaries.ca, by March 31, 2011.


Link: http://www.actuaries.ca/members/publications/2011/211023e.pdf

Contact with Questions: Nicholas Bauer, Chair, Designated Group, at nbauer@eckler.ca

Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates from December 31, 2010 to December 30, 2011 – February 2011

Introduction


The purpose of this memorandum is to provide preliminary guidance from the Committee on Pension Plan Financial Reporting (PPFRC) for estimating the cost of purchasing group annuities for purposes of hypothetical wind-up and solvency valuations with effective dates of December 31, 2010 and later (but no later than December 30, 2011). Since this guidance may have an effect on valuations currently in preparation with an effective date of December 31, 2010 or later, the guidance is being released on an expedited basis in advance of formal approval by the Practice Council of a planned educational note.

An educational note was published in April 2010 on Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates Between December 31, 2009 and December 30, 2010. Over the course of 2010, the PPFRC reviewed its guidance on the cost of purchasing group annuities on a quarterly basis. The most recent update to the guidance was contained in a November 2010 memorandum and was effective as of September 30, 2010.

Methodology

This guidance is partially based on quotes provided by six insurance companies on illustrative group annuity business using pricing conditions at December 31, 2010. These data were collected on the same basis as the illustrative quotes as of December 31, 2009 (as described in the April 2010 educational note) and are consistent with the methodology adopted as of each quarter end in 2010. The illustrative quote information was supplemented with a considerable amount of data on the pricing of actual group annuity purchases during the fourth quarter of 2010 and early 2011 provided by certain actuarial consulting firms.

Analysis

The results of the illustrative non-indexed quotations at December 31, 2010, based on the UP94@2020 mortality tables, are summarized below and compared to the previous illustrative quote information provided by the insurers as at September 30, 2010.

 AVERAGE OF THE THREE MOST COMPETITIVE QUOTES
(USING UP94@2020 MORTALITY TABLES)
   Large purchase
 Small purchase
   30/09/2010  31/12/2010  30/09/2010  31/12/2010
Retirees
       
Discount rate
 4.46%  4.27%  4.29% 4.09%
Spread over CANSIM V39062
 +1.19%  +0.79%  +1.02%  +0.61%
Deferred vesteds
       
Discount rate  4.59% 4.23%
4.29%
 3.90%
Spread over CANSIM V39062  +1.32%  +0.75%  +1.02%  +0.42%

If considered in isolation, the illustrative quotes suggest that it would be appropriate to propose that a discount rate for estimating the cost of purchasing a non-indexed group annuity for immediate pensions be determined as the unadjusted yield on Government of Canada (GoC) long-term bonds (CANSIM V39062) increased arithmetically by 60 to 80 basis points (bps), in conjunction with the UP94@2020 mortality tables. However, the pricing information for actual group annuity purchases for immediate pensions during the fourth quarter of 2010 and early 2011 varied considerably. For the data on 12 actual purchases for immediate non-indexed pensions during the fourth quarter of 2010 that was available to the PPFRC, the average spread was 104 bps above the prevailing unadjusted yield on GoC long-term bonds (CANSIM V39062), which is close to the most recent guidance of a 110 bps spread. The PPFRC concluded that it would be appropriate that some weight be given to both the illustrative data and to the actual purchase data and, therefore, that an appropriate discount rate for estimating the cost of purchasing a non-indexed group annuity would be determined as the unadjusted yield on GoC long-term bonds (CANSIM V39062) increased arithmetically by 100 bps, in conjunction with the UP94@2020 mortality tables.

It is recognized that, depending on market conditions, group annuity pricing may differ between immediate and deferred pensions or between small and large purchases. However, the PPFRC has concluded that, at this time, refinements to the discount rate to reflect immediate versus deferred pensions or large versus small purchases are not warranted.

Guidance for Non-Indexed Pensions

Based on the analysis described above, the PPFRC has concluded that an appropriate discount rate for estimating the cost of purchasing a non-indexed group annuity would be determined as the unadjusted yield on GoC long-term bonds (CANSIM V39062) increased arithmetically by 100 bps, in conjunction with the UP94@2020 mortality tables. This guidance applies to both immediate and deferred pensions and also applies regardless of the overall size of a group annuity purchase.

Guidance for Indexed Pensions

For indexed pensions, there continues to be insufficient data to provide credible guidance. The PPFRC has concluded that it would be appropriate, at this time, to follow guidance similar to that provided in 2010, without differentials between immediate versus deferred pensions or large versus small purchases.

Accordingly, an appropriate proxy for estimating the cost of purchasing a group annuity where pensions are fully indexed to the rate of change in the Consumer Price Index is the unadjusted yield on GoC real return long-term bonds (CANSIM V39057) in conjunction with the UP94@2020 mortality tables.

The PPFRC intends to conduct further analysis and research on the annuity proxy for indexed pensions, which may result in adjustments to future guidance.

Additional Comments

The PPFRC is preparing its annual educational note on this topic reflecting the above analysis. The note will address adjustments to the guidance to reflect the use of the UP94 mortality tables with generational projections.

The PPFRC intends to continue monitoring group annuity pricing on a quarterly basis. Actuaries may use the spreads indicated above for valuations with effective dates on and after December 31, 2010 up to December 30, 2011, pending any further guidance or other evidence of change in annuity pricing.

It should be noted that the spreads for group annuity pricing have been volatile during the past two to three years. Actuaries may wish to be mindful of this volatility when communicating advice related to future hypothetical wind-up and solvency valuations.

The PPFRC would like to express its gratitude to Desjardins Financial Security, Great-West Life, Industrial Alliance, Manulife, Standard Life and Sun Life Financial for providing the committee with the data required to issue this guidance.

Contact with Questions: Gavin Benjamin, Chair, Committee on Pension Plan Financial Reporting, at gavin.benjamin@towerswatson.com


Submission to OSFI – Discussion Paper on OSFI’s Proposed 2012 Changes to the Minimum Capital Test/Branch Adequacy of Assets Test for Federally-Regulated Property and Casualty Insurance Companies

The Canadian Institute of Actuaries presented its comments to the Office of the Superintendent of Financial Institutions’ (OSFI) discussion paper on proposed changes to the minimum capital test/branch adequacy of assets test (MCT/BAAT).


Link: http://www.actuaries.ca/members/publications/2011/211020e.pdf

Contact with Questions: Pierre Dionne, Chair, Committee on Property and Casualty Insurance Financial Reporting, at pdionne@ccr.fr

ERM Symposium Seminar to be Available as a Live Webcast

The ERM Symposium seminar Designing and Implementing ICAAP and ORSA: Challenges and Practices is being made available as a live webcast on Monday, March 14, from 8:30 a.m. to 4:30 p.m. CST.

This full-day seminar addresses challenges faced by banks and insurance companies in building a robust Internal Capital Adequacy Assessment Process (ICAAP) and Own Risk Solvency Assessment (ORSA). The ICAAP and ORSA are an integral part of the enterprise risk management system of every bank, insurance, and reinsurance undertaking.

The webcast is a convenient opportunity for continuing professional development for those unable to attend the symposium in Chicago, IL, in person. Registrants may invite colleagues to view it with them at no additional fee.

There is an early registration fee of $295 US before February 18. After that date, registration costs $395. Following the webcast, participants will have access to a recording of it for one year.


Link: http://www.ermsymposium.org/2011/webcast.php

Contact with Questions: David Core, director of professional education and research at the Casualty Actuarial Society, at dcore@casact.org or (703) 276-3100

Continuing Professional Development (CPD) Opportunities!

Mark your calendars with the following opportunities to network with your peers and accumulate structured CPD hours in 2011:
  • CIA Annual Meeting – June 29–30, 2011 at the Westin Hotel in Ottawa, Ontario;
  • CIA Actuarial Evidence Seminar – September 9–10, 2011 at the Institut de tourisme et d’hôtellerie du Québec (Québec Tourism and Hotel Institute) in Montréal, Québec;
  • CIA Seminar for the Appointed Actuary – September 22–23, 2011 at the Hilton Doubletree Hotel in Toronto, Ontario; and
  • CIA Pension Seminar – November 2, 2011 at the Hilton Doubletree Hotel in Toronto.

Contact with Questions: Nancy Jenkinson at nancy.jenkinson@actuaries.ca; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

Notice of Charges and Referral to a Disciplinary Tribunal

The Committee on Professional Conduct has filed charges against a member of the Canadian Institute of Actuaries (CIA). These charges have been referred to a disciplinary tribunal.

Pursuant to the new Bylaw 20.04(3.1) (in force since July 1, 2005), a notice of the filing of charges and their referral to a CIA disciplinary tribunal is hereby provided to inform Institute members and the public about a current disciplinary case involving a member.


In accordance with the bylaw, this notice includes the charges, the name and the principal practice address of the member in question, and the specialty area in which they practise, if any. The notice also includes a statement advising that the member has been charged, but that the disciplinary tribunal hearing has not yet been held and its decision not yet rendered.


To read the notice, please access the link below.


Link: http://www.actuaries.ca/members/publications/2011/211021.pdf

Contact with Questions: William T. Weiland, Chair, Committee on Professional Conduct, at bweiland@eckler.ca

Changes to the Rules of Professional Conduct and Special General Meeting of the Members on March 10, 2011

On November 29, 2010, the Board approved changes to Rule #6 and Rule #13 of the Rules of Professional Conduct. These changes will be put before the members for confirmation at a special General Meeting of the members, convened by the Board pursuant to Bylaw 10.01, that will be held in Ottawa and also via webcast, on March 10, 2011.

This announcement provides links to several documents that outline the changes and the rationale behind them, along with details regarding the process that will be followed leading up to members’ confirmation of the changes.

Also approved by the Board on November 29, 2010, pursuant to Bylaw 10.04, was the use of electronic proxy voting to confirm these rules changes. In accordance with the proxy voting procedures, a timetable has been established and it can be accessed from link #5 below.

As of the delivery of this announcement, the discussion of the proposed changes begins and the Amendments Listserver is now open to all members who would like to share their opinions and engage in thoughtful deliberations on the changes. To participate in the listserver discussions, members must opt in. (If you opted in to discuss the last set of Bylaw changes in 2007, you are likely still on the listserver.) Link #4 below will take you to the simple instructions for joining and leaving the Amendments Listserver.

Members wishing to attend the General Meeting, either in person or via webcast, must register for the event in advance. The links to the registration pages can be found in link #7 below. Note that there is no charge to attend these events.

Links:
1. Memorandum to Members: Changes to Rules of Professional Conduct #6 and #13
http://www.actuaries.ca/members/publications/2011/211013e.pdf

2. Amending Bylaw No. 2010-1: Changes to Rule #6
Amending Bylaw: http://www.actuaries.ca/members/publications/2011/211014e.pdf
Appendix A: http://www.actuaries.ca/members/publications/2011/211015.pdf

3. Amending Bylaw No. 2010-2: Changes to Rule#13
Amending Bylaw: http://www.actuaries.ca/members/publications/2011/211016e.pdf
Appendix A: http://www.actuaries.ca/members/publications/2011/211017.pdf

4. Instructions for opting in and out of the Amendments Listserver
http://www.actuaries.ca/members/publications/2011/211018e.pdf

5. Discussion, proxy and live voting process and timetable for the next 30 days
http://www.actuaries.ca/members/publications/2011/211019e.pdf

6. Current Rules of Professional Conduct
http://www.actuaries.ca/members/publications/2006/206091e.pdf

7. Webcast and General Meeting Registrations
General Meeting registration: http://www.actuaries.ca/meetings/meetings_e.cfm
Webcast registration: http://www.actuaries.ca/webcasts/index_e.cfm

Contact with Questions: Michel Simard, CIA Executive Director, at michel.simard@actuaries.ca

Final Standards of Practice – Part 5000 Practice-Specific Standards for Public Personal Injury Compensation Plans

These final Standards of Practice for Part 5000 were approved by the Actuarial Standards Board on February 1, 2011.

The final Standards of Practice are effective for calculation dates after March 15, 2011 in respect of financial reporting periods beginning after 2010, with one exception. The exception relates to parts of paragraphs 5410.02 and 5410.08, which are applicable to calculations dated as of December 31, 2014, or later, to enable practitioners to prepare for their implementation. The final Standards of Practice replace the existing Part 5000.

To read the final Standards of Practice, please access the links below.

Links:
Memorandum: http://www.actuaries.ca/members/publications/2011/211011e.pdf
Standards of Practice: http://www.actuaries.ca/members/publications/2011/211012e.pdf

Contact with Questions: Dave Pelletier, Chair, Actuarial Standards Board, at dave@davep.ca

2011 CIA Elections – Be a Candidate!

The CIA’s future is in your hands and it is the responsibility of each of us to make our mark. Please consider standing for election and when the time comes, please vote.

It’s that time of year again and the CIA Elections Committee is already working hard on the 2011 Elections. This year elections are required for four Director positions (three-year terms), Secretary-Treasurer (two-year term) and President-elect (one-year term, three-year commitment). Any member who wishes to run for office as a Director, as Secretary-Treasurer or as President-elect, and who meets the nomination requirements set out in the CIA Elections Rules of Procedure, will have their name appear on the ballot.

The Elections Committee is also actively identifying and encouraging potential candidates to run. The committee encourages proportional representation by region and practice area on the Board and would like to bring to your attention a particular need for members with P&C expertise to serve as Directors to achieve proportional representation. We are particularly urging those members to participate in the election process this year.

If you are interested in nominating an individual or submitting your own name for this year’s ballot, please contact Lynn Blackburn at the Secretariat prior to April 8, 2011, for the necessary forms. Further information regarding the nomination requirements can be found in the Elections Committee’s approved Rules of Procedure at http://www.actuaries.ca/members/publications/2011/211010e.pdf.

This is your opportunity to serve and support your profession!

Link: http://www.actuaries.ca/members/publications/2011/211010e.pdf

Contact with Questions: Lynn Blackburn, director, member services and standards development at (613) 236-8196 ext. 117 or lynn.blackburn@actuaries.ca
or any of the Elections Committee:
Karen Hall, Chair, at (604) 443-2590 or karen.hall@aonhewitt.ca
Larry Miller, Vice-chair, at (306) 585-4342 or miller@math.uregina.ca
Elizabeth Boulanger at (514) 985-5269 or eboulanger@rgare.ca
Claudette Cantin at (416) 359-2109 or ccantin@mroc.com
Marc Drouin at (418) 529-4536 or mdrouin@morneausobeco.com
Yves Girouard at (514) 673-4725 or yvesg@dion-durrell.com
Betty Ma at (416) 344-4482 or betty_ma@wsib.on.ca
Dennis Schettler at (416) 988-1429 or djschettler@rogers.com
Robert Stapleford at (416) 868-2127 or rob.stapleford@mercer.com
 
Calendar of Events
June 5-8, 2011
Practice Education Course
Delta Ottawa
Ottawa, ON
June 29-30, 2011 Annual Meeting The Westin Ottawa Ottawa, ON
September 9-10, 2011
Actuarial Evidence Seminar
ITHQ - Québec Tourism and Hotel Institute
Montréal, QC
September 22-23, 2011
Seminar for the Appointed Actuary
Doubletree by Hilton - Toronto Airport Hotel Toronto, ON
November 2, 2011
Pension Seminar
Doubletree by Hilton - Toronto Airport Hotel
Toronto, ON
November 3, 2011
Investment Seminar
Doubletree by Hilton - Toronto Airport Hotel
Toronto, ON

Additional information on all CIA meetings can be obtained at:
www.actuaries.ca/meetings/calendar_of_meetings_e.cfm, or by contacting Nancy Jenkinson at 613-236-8196, ext.104, or nancy.jenkinson@actuaries.ca.

For information on CIA webcasts, visit http://www.actuaries.ca/webcasts/index_e.cfm.
 
 
 
 
Board and Council Updates
Board

Denis Plouffe has been appointed the CIA representative to the IAA Pensions and Employee Benefits Committee.

An update in last month's (e)Bulletin concerning the Individual Savings and Financial Literacy Task Force should have stated that this is a new task force.


Kathryn Hyland, Diane Gosselin, Mariève Tétreault, Hélène Pouliot, Rheia Khalaf and Patrick De Roy have been appointed members of the Risk Management Committee, effective immediately.

Mike Lombardi (Chair), Jim Doherty (Vice-chair), Dave Pelletier, Denis Plouffe, Mo Chambers, Jacques Tremblay, Jean-Claude Ménard, Ben Marshall, Bruce Langstroth, Lesley Thomson, David Congram, Micheline Dionne, Bob Mackay and Réjean Besner have been appointed members of the Committee on International Relations, effective immediately.

Bill Chinery, Jim Christie, Sylvie Charest, Dave Dickson and Michel Simard have been appointed to the Board Orientation Session Task Force, effective immediately.


Eligibility and Education Council

Rachel Dutil, Fengru (April) Liu and Xavier Bénarosch have been appointed members of the Property and Casualty Insurance Subcommittee of the Committee on Continuing Education. Isabelle Bouchard, Rudra Maharaj, Evelyn Somer, Louise Lessard and Joe Di Tullio have been appointed to the committee’s Group Life and Health Subcommittee, and John Robert Kay to its Pension Subcommittee.

Rod Sproule (Chair) and André Sauvé of the 2009 Pension Review Task Force have been appointed members of the Committee on the Application of Rules and Standards (CARS). Louis-Georges Simard has resigned from the task force and therefore is no longer a member of CARS.

The Organizing Committee for the 2010 Pension Seminar and the Task Force to Enhance the Value Proposition of Associate Status in the Institute have been disbanded with thanks.

Andrew Kitchen has been appointed a member of the Committee on Eligibility.

Deborah McMillan has been appointed a member of the Committee on Continuing Education. Bill Osenton has resigned from the committee, while Maggie Chow and Frank Reynolds have been appointed members of its CPD newsletter subcommittee.

Claude Paré has resigned as Chair of the Bilingualism Subcommittee of the Committee on Co-sponsorship of Exams. Marc-André Belzil, Julie Martineau, Camil Lévesque and Mario Georgiev have also resigned from the subcommittee. The Society of Actuaries has been notified of these changes.

The Task Force on the Future of the Practice Education Course has been created with Anne Vincent appointed Chair and Amy Pun, Trevor Cartlidge, Dave Dickson, Paul Winokur, Angelita Graham, Thomas Hinton, Bruce Langstroth, and Julia Viinikka appointed members.

Myriam Roux and Alanna Rand have been appointed members of the ILA/Finance Subcommittee of the Committee on Education and Examinations for the 2011 Practice Education Course. Raymond Liu, Mike Schofield and Jill Buchanan have resigned from the subcommittee.

The Joint Committee on Academic Relations has been renamed the Committee on Academic Relations.

Jason Vary has been appointed Vice-chair of the Eligibility and Education Council, effective immediately.


Member Services Council

Marc-André Melançon has been appointed Vice-chair of the Member Services Council, effective immediately.


Practice Council

Jay Jeffery and Tom Schinbein have been appointed Vice-chairs, and Kelley McKeating a member, of the Committee on Actuarial Evidence.


The Joint CIA/CICA Task Force on Developing Non-authoritative Guidance has been disbanded with thanks.

For information only:

Mark Campbell has resigned from the Task Force on International Pension and Employment Benefits Standards, effective February 1, 2010.

Ana Cacoilo and Sophie Cournoyer have resigned from the Committee on Pension Plan Financial Reporting, effective July 1, 2010.

Maryse Larouche has resigned from the Committee on Actuarial Evidence, effective February 8, 2011.