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

Canadian Institute of Actuaries/Institut canadien des actuaires

June 2011
Your Institute


By Micheline Dionne, FCIA
CIA President

I am regularly asked whether I’ve enjoyed my experience as President. The answer is a resounding yes: I’ve had a great time. Of course, I plan on taking holidays this summer to wind down from a very busy two years and get some rest. I can already tell you that I won’t be going any further than the cottage, and that I won’t be bringing anything heavy to read. But I also know that I will miss the intensity that has marked this period in my life.

Is the presidency demanding? That depends on the objectives you set going in and the plans you make. In fact, that’s where the problems begin: there’s so much to do that it’s hard to limit yourself. But at the same time, this is exactly what makes the presidential mandate so interesting and worthwhile.

Action Report

Here are the commitments I made at the time of my election, and where things stand now:

Play an active role in public policy matters. We maintained and even increased our presence in the public policy arena on retirement issues, and we raised our profile as a social partner. We launched discussions on public health, but we have a lot of work ahead of us to familiarize ourselves with the issues in this area so that we can offer judicious advice.

Continue to work hard on the international scene. The importance of international affairs has skyrocketed over the past two years, primarily in the insurance sector. We’ve put a lot of effort and energy into it, but we have to redouble those efforts in the years to come in order to expand our influence on the international scene and prepare to integrate international requirements in Canada as they relate to our valuation and capital standards. The message has been made clear, but we need to be vigilant and more proactive.

Increase our understanding of the risks. We have kept a close eye on research programs and established a new life insurance mortality table. We will also, I hope, have a first pension mortality table by the end of the year. A number of studies are underway concerning the risks of segregated funds, the results of which are due out later this year or in 2012. We entered into a partnership with the Actuarial Foundation of Canada (AFC) to carry out public interest research projects, and an initial research proposal is going ahead. We also received authorization to confer the title of Chartered Enterprise Risk Analyst (CERA). Unfortunately, much of the research should have been carried out in years past, rather than recently. When it comes to research, the CIA will need to be vigilant and stay the course if it wants to remain relevant. We need to constantly get beyond ‘impressions’ and replace them with facts; this, in a nutshell, is our main reason for being.

Modernize our training system. Much progress has been made in this area. We plan to kick off the university accreditation program in September 2012. The accreditation terms and conditions have been finalized with the help of the feedback you’ve sent to us. Eleven universities have expressed an interest and are preparing their applications as this is being published. Accreditation panels will visit each of these universities during the summer and examine their applications. The list of accredited universities should be finalized by November.

Thank you

I am not so much proud of as grateful for what we have accomplished over the past two years. I am grateful to each of you for giving of your time by sitting on the Board, by contributing to the efforts of the three councils, or by participating in the various committees, subcommittees and task forces. More than 500 of you are making your mark in this way, with many of you active in more than one group. Without you, the profession would simply cease to exist. There is so much left to be done, of course, but it’s nice to pause a moment at least once a year to express our appreciation for the work you have done.

I know I am speaking for all of us in extending my sincere thanks to the dedicated staff working for the Secretariat. Heading into this year, I was more worried about avoiding cases of burnout than about seeing individual staff members without enough work to do. Knowing that volunteers often work during their off hours (i.e., evenings and weekends) adds to the pressure staff feel in responding to your needs as soon as possible. Believe you me, all of them work very hard to support your efforts.

I cannot thank all of you enough!

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

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


By Dave Dickson, FCIA

Before sitting down to write this article I just finished painting a hallway and laundry room in our house. I don’t do a lot of painting but enjoy it when I do. The best part is when it’s all over and I stand back and admire what I’ve done and how well the job turned out. Now the old floor stands out against the freshly-painted ceiling, walls and baseboards and replacing the floor will likely become my next home project.

My time as Chair of the Eligibility and Education Council (EEC) is about half over; in June 2012 I will turn it over to my vice-chair, Jason Vary. My painting project reminds me of my role as Chair of the EEC: we have accomplished a lot but there’s more to be done. I thought it would be a good time to provide an update on some of the initiatives the EEC is working on.

The project that has been going on the longest is our University Accreditation Program (UAP), whereby university students in Canada will be able to obtain credit for the earlier technical exams. This project is under the leadership of Rob Stapleford and the Accreditation Committee. We have made excellent progress and to date 11 Canadian universities are onboard and plan to apply to be part of this program. It will launch in accredited universities in September 2012, and regular updates have been and will continue to be provided to members about this program.


One of our most exciting projects is one involving CIA Associates. About a year ago we noticed a trend that we were having fewer people joining the CIA at the Associate level. Jason Vary led a task force to find out why and to make recommendations to improve the situation. The EEC approved most of the recommendations with a few changes. These modified recommendations were approved by the Board. Jason, who volunteered to lead another task force to implement the recommendations, has written two (e)Bulletin articles about the recommended changes and our plans to implement them so I won’t summarize them here. I feel that once these changes are put into place we will see more CIA Associates joining the Institute and this will only strengthen our organization.


Another interesting project deals with our continuing education. The program content for CIA continuing education was previously looked after by a number of groups and committees spread beyond the EEC. Technology had also enabled education to be more easily provided via webcasts, and maybe other ways in the future. The EEC felt that there might be a better way to provide continuing education to our members. A task force formed under the leadership of Amy Pun made recommendations, the major one being to combine all aspects of continuing education under the new Committee on Continuing Education (CE). Angelita Graham volunteered to head this new committee and great progress has been made. The committee is organized by practice area; each practice area develops an annual education plan which includes sessions at meetings, webcasts and specialty seminars.

We’ve also had a hard look at our meetings and we are improving them to better serve our members. As an example, one of the main reasons members tell us that they attend meetings is for networking opportunities. We made a change at our 2010 annual meeting to accommodate more networking time. Rather than a formal sit-down dinner, a networking cocktail reception with a variety of interesting and delicious food stations was implemented to great success.


The CE committee is planning over 20 webcasts this year. It is also starting to plan the annual meeting in 2015 which will celebrate the CIA’s fiftieth anniversary, with a task force set up under Gary Walters.


Most meetings I’ve attended at the EEC have invariably led to a discussion about the CIA’s Practice Education Course (PEC) in terms of the value that it offers new CIA members, and whether it should be continued. The PEC was originally introduced when the SOA removed all country-specific material from its exams. Since then, country-specific material has started to return. The PEC provides education for some practice areas but does not meet the needs of all aspiring actuaries in Canada. Some groups, such as those considering non-traditional areas of practice like enterprise risk management, feel the PEC does not provide much value to them; additionally, academics say they do not find the PEC useful, and as a result some become members of the SOA but not the CIA. A task force, led by Anne Vincent, is examining the PEC to see if it can be improved and whether a change to the format would be beneficial. One of the task force’s activities is to analyze how well Canadian material is being covered and tested on the SOA exams, and to make some recommendations as a result.


I am also happy to report that the Board of the Global Enterprise Risk Management Designation Recognition Treaty has designated the Institute as an Award Signatory under the Global CERA Treaty. The treaty, signed in November 2010 by 14 actuarial associations from around the world, including the CIA, established the Chartered Enterprise Risk Analyst (CERA) designation as the globally-recognized enterprise risk management credential. As a party to the treaty, the CIA became eligible to apply to be an Award Signatory. A small committee was formed to work on the Institute’s application, which was submitted to the CERA Global Review Panel in January 2011. Until now, the SOA has been the only organization granting the CERA credential in North America. Members will now be able to have CERA granted by the CIA upon completing the SOA CERA requirements. Once the Casualty Actuarial Society (CAS) is approved as an Award Signatory, members who have completed the CAS CERA requirements will also be able to have CERA granted by the CIA. The next task is to develop the Institute’s application process. Please watch for more information on this exciting new development.


We also have started other interesting initiatives such as examining the future supply and demand for actuaries in Canada and possibly introducing a mentoring program for Associates and younger actuaries, using experienced members as mentors.


I would like to thank the members of the EEC and recognize the great support that Alicia Rollo, director, education and professional development, provides to the EEC in developing and moving our initiatives forward. Since being added to the Secretariat staff, Alicia has been a valuable part of the EEC and is heavily involved in most of our projects.

If you have any questions or comments feel free to contact me at DicksonDave@hotmail.com.


Dave Dickson, FCIA, is Chair of the Eligibility and Education Council.
 
MOVERS AND SHAKERS

The average person takes about 14 breaths a minute, or enough air during a day to blow up 600 beach balls. With that in mind, Canada recently held Clean Air Day, a nationwide initiative designed to raise awareness and encourage action on clean air and climate change issues.
 

Environment Canada is urging Canadians to show their commitment by participating in activities that contribute to cleaner air, healthier communities and a better quality of life for all. For instance, the transportation sector is a major contributor of air pollutants and greenhouse gas emissions. Why not take some inspiration from Clean Air Day and renew or begin a commitment to sustainable transportation? When you use public transit, cycle, walk and rollerblade, you can reduce your personal emissions, save money used on fuel, contribute to your personal health and much more.

Environment Canada is a world leader in clean air science research, and its studies have helped create the Air Quality Health Index (AQHI). A number of pilot areas have been chosen for the AQHI, and anybody living in or visiting those cities can check the latest air quality online:

The index is a scale designed to help you understand what the air quality around you means and make decisions to protect your health by limiting short-term exposure to air pollution, and adjusting your activity levels during increased levels of such pollution. It also provides advice on how you can improve the quality of the air you breathe.

The AQHI communicates four primary things:
  1. A number from 1 and 10+ indicating the quality of the air. The higher the number, the greater the health risk associated with the air quality;
  2. A category that describes the level of health risk associated with the index reading (e.g., Low, Moderate, High, or Very High Health Risk);
  3. Health messages customized to each category for both the general population and the ‘at risk’ population; and
  4. Current hourly AQHI readings and maximum forecasted values for today, tonight and tomorrow.
It is calculated based on the relative risks of a combination of common air pollutants which are known to harm human health, including ozone, particulate matter and nitrogen dioxide. The results are measured on the following scale:

 1  2  3  4  5  6  7  8  9  10  +
Low Risk Moderate Risk High Risk Very High Risk

The messages conveyed by the results are:

Health Risk
Air Quality Health Index
Health Messages
  At Risk Population*
General Population
Low 1-3 Enjoy your usual outdoor activities. Ideal air quality for outdoor activities.
Moderate 4-6 Consider reducing or rescheduling strenuous activities outdoors if you are experiencing symptoms. No need to modify your usual outdoor activities unless you experience symptoms such as coughing and throat irritation.
High 7-10 Reduce or reschedule strenuous activities outdoors. Children and the elderly should also take it easy. Consider reducing or rescheduling strenuous activities outdoors if you experience symptoms such as coughing and throat irritation.
Very High
Above 10
Avoid strenuous activities outdoors. Children and the elderly should also avoid outdoor physical exertion. Reduce or reschedule strenuous activities outdoors, especially if you experience symptoms such as coughing and throat irritation.
* People with heart or breathing problems are at greater risk. Follow your doctor's usual advice about exercising and managing your condition.

For more information about the AQHI, visit http://www.ec.gc.ca/cas-aqhi/default.asp?Lang=En&n=065BE995-1.

 
Institute News
Following weeks of campaigning and debate on the CIA's special discussion forum, six members have been elected to the Board, and began their terms of office following the close of the Annual Meeting in Ottawa on June 30.

Congratulations to the following:


 
President-elect
Simon Curtis
 
Secretary-Treasurer
Martin Roy
   
 Director
Claude Ferguson
Director
Jacqueline Friedland
   
Director
Michel St-Germain
Director
Chris Townsend

The President-elect will serve a one-year term in that position, followed by a year as President and a further year as Immediate Past President. The Secretary-Treasurer will serve a two-year term. Directors are elected for three-year terms.

On behalf of all members, thank you to those candidates who let their names stand for election but were unsuccessful.

 

CIA President Micheline Dionne officially opens the new offices, watched by Board members and Secretariat staff.

The CIA Secretariat has settled into its new home—and now it’s official!


Just ahead of the 2011 Annual Meeting, the CIA Board plus invited guests visited the new home of the Secretariat at 360 Albert Street, Ottawa, for a tour of the offices before President Micheline Dionne cut the ceremonial ribbon marking the start of a new era for the CIA.

The Secretariat’s lease was up and it made financial and operational sense to move to more modern offices that better reflect the Institute’s professional image. This renovated space will allow staff to better serve the membership and help the Institute achieve the objectives of the strategic plan.

The CIA Board along with newly elected Directors, as well as Nicole Séguin, executive director of the International Actuarial Association, visited the new premises.

The CIA’s Executive Director, Michel Simard, said: "On behalf of the CIA Secretariat staff, I must say that we are extremely pleased and proud to welcome the Board and special guests who are here with us today to celebrate the official opening of our new office.

"In 2003, after 18 years in this exact building, the Secretariat was forced to move due to a significant increase in our rental costs. Like everything in life, things change and in our case, the commercial real estate market in Ottawa changed just as we were looking for alternatives to our space on Metcalfe Street.

"We are very excited to be coming back to this beautiful facility. The staff are thrilled with their new working environment, the Board (representing our members) is satisfied because we are going to spend no more on rental costs than on our previous location, and I am really happy to work with a staff and a Board that are both in high spirits!"

The Secretariat’s full address is:
Canadian Institute of Actuaries
360 Albert Street, Suite 1740
Ottawa, Ontario K1R 7X7

Please note that our e-mail addresses and telephone and fax numbers have not changed. As a reminder, the main telephone number is 613-236-8196; fax 613-233-4552.

 


By Denis Plouffe, FCIA

The International Accounting Standards Board (IASB) issued an exposure draft (ED) on proposed changes to International Accounting Standard 19 on Employee Benefits (IAS19) in April 2010. The Canadian Institute of Actuaries (CIA) submitted comments on the ED to the IASB in September 2010. An article published in the October 2010 (e)Bulletin summarized the proposals along with the CIA’s comments. In general, the CIA supported the proposals which promoted greater comparability and transparency among users of financial statements.
 

After receiving many comments from a substantial number of stakeholders, the IASB published the amendments to IAS 19 in June 2011. The amendments will come into effect for periods beginning on or after January 1, 2013. Earlier adoption is permitted.

Consistent with the ED, the amendments focus on three key areas promoting greater comparability and transparency in reporting:
  • Recognition—the elimination of the option to defer the recognition of gains or losses for defined benefit plans (the ‘corridor approach’). By eliminating the smoothing mechanisms, entities will need to recognize gains and losses as they occur in other comprehensive income (OCI), and recycling in profit and loss in subsequent periods will not be permitted.
  • Presentation—the amendments include:
    • Recognition of service cost and finance cost in profit or loss; and remeasurements in OCI (amendments to IAS 1 were also issued to improve the presentation of items in OCI);
    • The introduction of the ‘net interest’ approach to disaggregate the defined benefit cost. The expected return on assets and interest cost on the defined benefit obligation are replaced by a single ‘net interest’ component, determined based on the discount rate; and
    • Entities must report the effects of plan amendments, curtailments and settlements in profit or loss (as opposed to reporting the effect of settlements in OCI as proposed in the ED). 
  • Disclosure—the amendments increase the focus on a risk-based disclosure approach reflecting the characteristics and the risks inherent to the companies’ defined benefit plans. This moves away from exhaustive or prescriptive lists. The amended IAS 19 also requires that an entity participating in a defined benefit multi-employer plan provides a description of any agreed allocation of a deficit or surplus on withdrawal from or wind-up of the plan.
In addition, the amendments clarify some other areas of IAS 19, including:
  • Risk-sharing features—such as accounting for employee contributions and conditional indexation. For contributory defined benefit pension plans, the employee contributions are attributed to periods of service as a negative benefit (i.e., the net benefit should be attributed in the determination of the defined benefit obligation);
  • Taxes and administration costs—the administration costs should be recognised when the administrative service is provided, taking into account the nature of the costs. The cost of managing assets should be deducted from the return on assets. The amendments aimed to clarify the treatment of taxes but further guidance could be required in specific applications (e.g., refundable taxes on non-registered funded plans—RCAs); and
  • Termination benefits—amendments on termination benefits that were exposed for public comments in 2005 were incorporated into the new IAS 19. The amendments require an entity to recognise termination benefits when it can no longer withdraw that offer (such as, when the employee accepts the offer).
However, the following key areas were not addressed by the amendments. Some of the topics remain subject to a more comprehensive IAS 19 review:
  • The proposals did not address measurement items of the defined benefit obligations such as the discount rate assumption, nor did they incorporate prior proposals on contribution-based promises. These items may be part of a more fundamental review;
  • IFRIC 14 was not incorporated into IAS 19. IFRIC 14 remains as a separate interpretation of the standards; and
  • Some proposals on disclosure in the ED were not adopted and may be revisited within a future review.
In light of comments by respondents on the ED (including the CIA), the amendments did not combine post-employment and other long-term employee benefit categories as originally proposed.

Many respondents have urged the IASB to comprehensively review the accounting for employee benefit promises. The IASB has agreed with the need for such a review, but it will depend on the outcome of the current agenda consultations, which are still to be finalized due to recent changes of Board members.

This article has been prepared by the Task Force on International Pension and Employee Benefits Standards. Please do not hesitate to contact any members of the task force listed on the CIA website if you have any comments or questions on the above article.

 


This year the CIA Secretariat will again begin summer hours, meaning that the offices will close down on Friday afternoons during July and August. Staff will continue to be available Monday through Thursday from 8:30 a.m. to 5:00 p.m. (EDT), and on Friday from 8:30 a.m. to noon (EDT). Please note that the Secretariat is also closed on July 1 for Canada Day.


We wish all our members a wonderful summer.

 
Michael Hutchison, FCIA (1965)
 
THIS MONTH'S PUBLICATIONS
Changes to the Bylaws – Associate Membership

On May 11, 2011, the Board approved changes to the Bylaws required for the implementation of an ACIA designation for Associates, and for providing Associates with the additional privilege of acquiring voting rights after five years’ enrolment as an Associate. These changes will be put before the members for confirmation at the General Business Session of the Annual Meeting of the members that will be held in Ottawa on June 29, 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 May 9, 2011, pursuant to Bylaw 10.04, was the use of electronic proxy voting to confirm these Bylaw changes. In accordance with the proxy voting procedures, a timetable has been established and it can be accessed from link #3 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 changes to the Rules earlier this year (or previously), you are likely still on the listserver.) Please also note that to increase awareness of the proposed changes, all members currently on the General List have been added to the Amendments Listserver. Link #3 below will take you to the simple instructions for joining and leaving the Amendments Listserver. You may opt in/out at any time.


Links:

1. Memorandum to Members: Bylaw Changes Relating to the Enhancements to Associate Status in the Institute
http://www.actuaries.ca/members/publications/2011/211053e.pdf
2. Amending Bylaw No. 2011-1: Changes to Associate membership
Amending Bylaw: http://www.actuaries.ca/members/publications/2011/211054e.pdf
Appendix A: http://www.actuaries.ca/members/publications/2011/211055e.pdf
3. Instructions for Voting (Electronic Proxy and Live) and Use of the Amendments Listserver – Timetable for the Next 30 Days
http://www.actuaries.ca/members/publications/2011/211056e.pdf
4. Current Bylaws
http://www.actuaries.ca/members/publications/2007/207069e.pdf

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

Discipline Bulletin – Volume 17, No. 2

This Discipline Report has been prepared by the Committee on Professional Conduct to educate and inform all members of the CIA about the disciplinary process and current disciplinary activities.

Link: http://www.actuaries.ca/members/publications/2011/211052e.pdf

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

Discipline Notice – Notice of Disciplinary Tribunal Decision

On April 11, 2011 a CIA Disciplinary Tribunal dismissed a motion seeking an order for an interim suspension against Mr. Ashley B. Crozier, FCIA. For further information concerning the motion, we refer you to the Discipline Notice dated March 23, 2011. The Disciplinary Tribunal decision is available at the link below.


Link: http://www.actuaries.ca/members/publications/2011/211051.pdf

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

Revised Policy on Due Process for the Approval of Guidance Material Other than Standards of Practice

A revised version of the Policy on Due Process for the Approval of Guidance Material Other than Standards of Practice was approved by the Practice Council on April 14, 2011. This replaces the previous version published in 2007.


To read the revised policy, please access the link below.

Link: http://www.actuaries.ca/members/publications/2011/211046e.pdf

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

Final Standards of Practice Regarding Changes to the General Standards of Practice – Part 1000

These final Standards of Practice were approved by the Actuarial Standards Board on May 11, 2011. They include both a clean version and a highlighted version with the changes compared to the current Standards of Practice.

The effective date for the final Standards of Practice is July 1, 2011.

Early implementation is permitted, since the changes are not intended to change the meaning of the current Standards of Practice.


Exposure Draft 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

This exposure draft was approved by the Actuarial Standards Board (ASB) on May 11, 2011. Changes compared to the current Standards of Practice are highlighted.

Since the fairness opinions would potentially be available to the public, the 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.

Parties wishing to comment on this exposure draft should direct those comments to Nicholas Bauer at nbauer@eckler.ca by June 30, 2011. A copy should also be sent to CIA resident actuary Chris Fievoli at chris.fievoli@actuaries.ca.


Link: http://www.actuaries.ca/members/publications/2011/211047e.pdf

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

Submission to the Ontario Ministry of Finance – Draft Regulations – Ontario Bill 133

The CIA presented its comments to the Ontario Ministry of Finance on the recently released draft regulations for Bill 133.

Link: http://www.actuaries.ca/members/publications/2011/211043e.pdf

Contact with Questions: Tyrone Faulds, Chair, Practice Council, at ty.faulds@londonlife.com

Submission to FSCO – Consultation Document – Risk-Based Regulation Framework

The Canadian Institute of Actuaries presented its comments on the Financial Services Commission of Ontario’s (FSCO) recently released consultation document, Risk-Based Regulation Framework.

Link: http://www.actuaries.ca/members/publications/2011/211042e.pdf

Contact with Questions: Michel St-Germain, Chair, Member Services Council, at Michel.St-Germain@mercer.com

Educational Note: Financial Risks Inherent in Multi-Employer Pension Plans and Target Benefit Pension Plans

This note addresses the financial risks inherent in multi-employer pension plans and target benefit pension plans and provides actuaries with guidance in addressing these risks. The purpose of this educational note is to fill a gap in the actuarial literature regarding these types of plans in which plan experience can have a direct effect on the benefits to plan participants.

To read the educational note, please access the link below.

Link: http://www.actuaries.ca/members/publications/2011/211039e.pdf

Contact with Questions: Stephen Bonnar, Chair, Task Force on MEPP/TBPP Funding, at spbonnar@gmail.com

Notice of Intent to Revise the Standards of Practice Parts 1000 and 4000 – General Standards and Practice-Specific Standards for Actuarial Evidence (excluding Section 4300)

The Actuarial Standards Board (ASB) is initiating a review and revision of the current Actuarial Evidence Standards (except section 4300) and certain parts of the General Standards. The purposes of the review are to clarify, update and enhance consistency of the current standards with evolving practices related to actuarial evidence work. Further, it is intended that the review will improve the appropriateness of the Standards of Practice for the broader scope of actuarial evidence work. Revisions to the standards are important given the increasing judicial and legislative attention paid to the role of the expert in the courtroom, and the greater number of actuaries undertaking this type of work.


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 Nancy Yake at nancy.yake@sympatico.ca, with a copy to CIA resident actuary Chris Fievoli at chris.fievoli@actuaries.ca by July 15, 2011.

Link: http://www.actuaries.ca/members/publications/2011/211045e.pdf

Contact with Questions: Nancy Yake, Chair, Designated Group, at nancy.yake@sympatico.ca

Educational Note—Assumptions for Hypothetical Wind-up and Solvency Valuations with Effective Dates between December 31, 2010 and December 30, 2011

This educational note provides guidance on assumptions to be used for hypothetical wind-up and solvency valuations for 2011. It confirms the initial guidance for 2011 assumptions that was provided in an announcement issued on February 16, 2011.


In the educational note provided last year, the PPFRC included additional draft guidance on the assumptions to be used for hypothetical wind-up and solvency valuations for very large plans and plans with benefits indexed to the Consumer Price Index. Comments were invited from pension actuaries and other interested parties. Since last year, the Actuarial Standards Board has established a Designated Group to review and possibly revise the Practice-Specific Standards with respect to the selection of assumptions for hypothetical wind-up and solvency valuations. Due to the establishment of the Designated Group, the PPFRC has decided not to finalize the additional draft guidance at this time. Once the Designated Group has completed its review, the PPFRC will consider the need to finalize this draft guidance, including the need to update the guidance contained in this educational note.

Link: http://www.actuaries.ca/members/publications/2011/211044e.pdf

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

Webcast – Reinsurance 101

May 11, 2011

Concepts from risk pooling to individual insurance underwriting trends will be covered in this introductory look at reinsurance from Mark Lombardo, FSA, director of individual life pricing at Munich Re in Toronto.

Aimed at actuarial associates (ASAs and new FSAs) and designed to be at the basic/intermediate level, the webcast will look at fundamental reinsurance concepts such as the purpose of reinsurance, terminology, and treaties.

Mark will also address what he describes as slightly more complicated topics, including the reserve and capital impact of reinsurance, and trends in the individual reinsurance marketplace, including retentions and capacity.


To register, click on the link below.


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

Contact with Questions: Leona Campbell at leona.campbell@actuaries.ca; telephone: 613-236-8196 ext. 124; fax: 613-233-4552

Mike Smith, FCIA, Dies Suddenly



It is with great sadness that I inform you about the sudden passing of Mike Smith, FCIA(1989), a candidate for Director in this year’s CIA Elections. Mike passed away on Saturday, May 7 at his Bermuda home. He was CEO of Wilton Reinsurance Bermuda in Hamilton, Bermuda, and is survived by his wife and son.

Mike served the CIA, throughout his career, on committees and task forces, as a chair of the Eligibility and Education Council from 2003 to 2005 and as a member of the Board from 2007 to 2010. His contribution to the actuarial profession in Canada will be deeply missed.

Below is a link to his obituary in The Royal Gazette in Bermuda.

With regard to Mike’s candidacy in this year’s CIA Election, since the ballot has already been released, a note has been made on the electronic ballot, indicating that Mike has passed away. Votes that have already been cast cannot, unfortunately, be changed, and will be counted, per the normal CIA Election Rules of Procedure.

Karen J. Hall

Chair
2011 Elections Committee

Link: http://www.legacy.com/obituaries/theroyalgazette/obituary.aspx?n=michael-neil-smith&pid=150912015

Contact with Questions: Karen J. Hall, Chair, Elections Committee, at (604) 443-2590 or by e-mail at karen.hall@aonhewitt.com

Standards of Practice for Capitalized Value of Pension Plan Benefits for a Marriage Breakdown – Delay of Effective Date

On January 5, 2011, the Actuarial Standards Board (ASB) released the Final Standards of Practice for Capitalized Value of Pension Plan Benefits for a Marriage Breakdown (Section 4300), with an effective date of July 1, 2011.


On March 16, 2011, the Actuarial Standards Oversight Council (ASOC) received a formal request from several CIA members to initiate a review of the standard to determine if the ASB’s Policy on Due Process for the Adoption of Standards of Practice was indeed followed (see Policy on the Review of the Due Process Followed in the Adoption of a Standard of Practice). This review process is underway.

In light of this review, the ASB has deferred the effective date of the standard pending completion of the review. Until that review is complete and the outcome announced, the previous standard will remain in effect.


Link: The final standard: http://www.actuaries.ca/members/publications/2011/211001e.pdf

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

Now let’s focus on the long-term public interest, the Canadian Institute of Actuaries tells Parliament

In the wake of the federal election, the Canadian Institute of Actuaries reminded members of the next Parliament that there are many critical issues facing the health and well-being of Canadians.


To read the full text of the press release, please click on the link below.

Link: http://www.actuaries.ca/members/publications/2011/211041e.pdf

Contact with Questions: Josée Racette, project manager, public affairs, at josee.racette@actuaries.ca

Membership Dues Invoice for 2011–2012

This is a reminder that you will be receiving your membership renewal invoice via e-mail this week. Please ensure you remit your dues as soon as possible to avoid late payment fees. Don’t forget, members can pay online, through online banking, or by cheque or money order.

Should you have questions about dues or online payments, please contact the CIA staff at (613) 236-8196 extension 102 or e-mail dues@actuaries.ca.
 
Calendar of Events
July 21, 2011
Webcast - The PPFRC New Standards of Practice - Questions and Answers N/A N/A
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
June 21-22, 2012
Annual Meeting
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
Member Services Council

Patrice Martel has been appointed a member of the Segregated Fund Experience Subcommittee of the Research Committee, effective April 12, 2011.

Irawati Chen and Paul Gobeil (who are not enrolled in the CIA) have been appointed members of the Annuitant Experience Subcommittee of the Research Committee, effective April 1, 2011.

For Information Only:

Mariève Tétreault has resigned as a member of the Enterprise Risk Management Applications Committee, effective May 9, 2011.

Jérôme Lavoie-Pilote has resigned as a member of the Segregated Fund Experience Subcommittee of the Research Committee, effective April 1, 2011.

Practice Council


Natalie Thompson has been appointed Chair of the Task Force on the Contents of Pension Actuarial Reports.

Kelley McKeating has been appointed Chair, and Brian Burnell, Jamie Jocsak and Louis Martin have been appointed as members, of the Committee on Actuarial Evidence.

Jim Cole has been appointed a member of the Committee on Pension Plan Financial Reporting.

Jason Wiebe has been appointed Chair, and Michel Dionne (P&C) and Robert Berendsen (Life) have been appointed as Vice-chairs, of the Committee on Risk Management and Capital Requirements.

Phil Rivard, Bill Moore, Cam Hunter, Michel St-Germain and Geoffrey Melbourne have been appointed members of the Task Force on the Determination of Provisions for Adverse Deviations in Going Concern Valuations.

The Task Force on the Appropriate Treatment of Reinsurance, and the Task Force on MEPP/TBPP Funding, have been disbanded with thanks.

For information only:

Ian Baker, Bryan Belyea, Richard Bisson, Paul Conrad, Tian-Teck Go, Maryse Larouche and Louis Morissette have resigned from the Committee on Actuarial Evidence. Mike Kavanagh has resigned as chair of the committee, but will remain on it as a member.

Wally Bridel has resigned as Chair of the Committee on Risk Management and Capital Requirements. Richard Houde, Altaf Rahim and Chris Townsend have also resigned from the committee.

Leonard Pressey has resigned from the Standards of Practice Editing Committee, effective March 29, 2011.