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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.


Contact with Questions: Alicia Rollo, CHRP, director, education and professional development, at

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

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 nearer July 1 for details of the day’s events.

See you in Ottawa!


Contact with Questions: Nancy Jenkinson at; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

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: (Please remember to log into the Members Site before using the link.)

Contact with Questions:

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, with a copy to CIA resident actuary Chris Fievoli at, by March 31, 2011.


Contact with Questions: Nicholas Bauer, Chair, Designated Group, at

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


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.


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.


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.

   Large purchase
 Small purchase
   30/09/2010  31/12/2010  30/09/2010  31/12/2010
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%
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

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).


Contact with Questions: Pierre Dionne, Chair, Committee on Property and Casualty Insurance Financial Reporting, at

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.


Contact with Questions: David Core, director of professional education and research at the Casualty Actuarial Society, at 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; 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.


Contact with Questions: William T. Weiland, Chair, Committee on Professional Conduct, at

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.

1. Memorandum to Members: Changes to Rules of Professional Conduct #6 and #13

2. Amending Bylaw No. 2010-1: Changes to Rule #6
Amending Bylaw:
Appendix A:

3. Amending Bylaw No. 2010-2: Changes to Rule#13
Amending Bylaw:
Appendix A:

4. Instructions for opting in and out of the Amendments Listserver

5. Discussion, proxy and live voting process and timetable for the next 30 days

6. Current Rules of Professional Conduct

7. Webcast and General Meeting Registrations
General Meeting registration:
Webcast registration:

Contact with Questions: Michel Simard, CIA Executive Director, at

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.

Standards of Practice:

Contact with Questions: Dave Pelletier, Chair, Actuarial Standards Board, at

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

This is your opportunity to serve and support your profession!


Contact with Questions: Lynn Blackburn, director, member services and standards development at (613) 236-8196 ext. 117 or
or any of the Elections Committee:
Karen Hall, Chair, at (604) 443-2590 or
Larry Miller, Vice-chair, at (306) 585-4342 or
Elizabeth Boulanger at (514) 985-5269 or
Claudette Cantin at (416) 359-2109 or
Marc Drouin at (418) 529-4536 or
Yves Girouard at (514) 673-4725 or
Betty Ma at (416) 344-4482 or
Dennis Schettler at (416) 988-1429 or
Robert Stapleford at (416) 868-2127 or

360 Albert Street, Suite 1740, Ottawa, ON K1R 7X7
Tel.: 613.236.8196 Fax: 613.233.4552