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Exposure Draft for Standards of Practice – Reporting of Incremental Cost and Sensitivity Information on a Hypothetical Wind-up or Solvency Basis

The exposure draft for Standards of Practice – Revisions to the Practice-Specific Standards for Pension Plans – Reporting of Incremental Cost and Sensitivity Information on a Hypothetical Wind-up or Solvency Basis was approved for distribution by the Actuarial Standards Board (ASB) on May 31, 2012. The proposed revisions from the requirements of paragraph 3260.06 of the Standards of Practice would exempt reports that are based on valuation results extrapolated from an earlier report.

The ASB is soliciting comments on the exposure draft from members of the CIA and other stakeholders by June 30, 2012. Please send your comments, preferably in an electronic format, to Michael Banks at michael.banks@mercer.com, with a copy to Chris Fievoli at chris.fievoli@actuaries.ca.

Link: click here.

Contact with Questions: Michael Banks, Chair, Designated Group, at michael.banks@mercer.com

Member Listening Group Launched Today

Today, May 31, is launch day for the CIA Member Listening Group (MLG). The group of volunteers, designed to be a representative pool of members, will be expected to deliver its opinions and thinking on topics of importance to the CIA Board, Secretariat, councils, and committees through the timely completion (within 24 hours of survey distribution) of short online surveys.

It represents a real opportunity to have your opinion heard on issues of vital importance to the profession, and CIA members who are interested in joining this new communications facility can do so easily by simply clicking on the link below and answering a few questions.

Over the course of the summer, the Communications Committee will be analyzing the MLG’s composition and recruiting in specific groups to ensure that any major gaps are filled. As soon as these issues are ironed out, the first survey will be distributed.

We encourage you to take the plunge, click on the link, and sign up today.

Link: click here.

Contact with Questions: Les Dandridge, director, communications and public affairs, at les.dandridge@actuaries.ca

Major Developments for Associates Tomorrow

From tomorrow, June 1, CIA Associates who have met the new eligibility requirements can use the letters ACIA after their names. Also, voting rights are now extended to Associates five full years after they obtain Associate status with the Institute, acknowledging that they have been an active part of the CIA for a significant amount of time and should therefore have a say in decisions that are made by a vote of the membership.

The CIA is proud to recognize the achievement of Associate status in the Institute and the hard work and dedication it represents.

Associates are reminded of the special offer they received from CIA President Jim Christie to attend a portion of this year’s annual meeting at a very special price. Be sure to register by the June 8 deadline!

Congratulations to all newly-minted ACIAs and future bearers of this contemporary Canadian designation!

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

CPD Compliance Reviews – Are Your Records Up to Date?

The annual CPD Compliance review process begins on Friday, June 1. A stratified sample of 1 percent of each CPD filing category will be selected. If a member is selected for a CPD Compliance Review, the individual will be notified by e-mail no later than June 6. CPD records will be due from the member within four weeks of the notification date. The review will be conducted by the Secretariat and the chair of the Committee on Eligibility, who will report to the Eligibility and Education Council (EEC).

In 2008, the Policy on Monitoring Compliance with the Continuing Professional Development (CPD) Qualification Standard was approved, requiring that the EEC establish a formal process to monitor and verify compliance and outline the nature of review or audit that would be performed. The process was established and conducted for the first time in 2011.

As indicated in the CIA Qualification Standard in sections 2.2 and 2.4, members are required to retain personal records of their CPD activities for a period of five years and should be able to support claims that the activities are relevant and appropriate.

The June 2010 (e)bulletin article by Roger Allen contains further information on the topic.

Link: click here.

Contact with Questions: Leona Campbell, coordinator, education and professional conduct, at leona.campbell@actuaries.ca

Changes to the Bylaws: Removal of a Board Member from Office

On May 28, 2012, the Board approved changes to the Bylaws which will allow the removal of a Board member from office under certain circumstances. The membership was consulted on these changes in November 2011, prior to Board approval. These changes will now be put before the members for confirmation at the Annual Meeting that will be held in Toronto on June 21–22, 2012.

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, 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 #6 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 2011, you are likely still on the listserver.) Link #6 below will take you to the simple instructions for joining and leaving the Amendments Listserver.

Members wishing to attend the Annual Meeting must register for the event in advance. The links to the registration pages can be found in link #7 below.

A reminder: as of June 1, 2012, those who have been Associates for over five years have voting rights and will be permitted to vote on these proposed bylaw amendments.

1. Memorandum to Members: Proposed Bylaw Amendments—Removal of a Board Member from Office

2. Amending Bylaw No. 2012-1: Removal of a Board Member from Office
Amending Bylaw
Appendix A

3. Code of Conduct for Members of the Board (Member confirmation not required—for information only)

4. Procedure for Review of Board Member Conduct (Member confirmation not required—for information only)

5. Report of the Task Force on Governance (September 2010)

6. Instructions for Voting (Electronic Proxy and Live) and Use of the Amendments Listserver—Timetable for the Next 25 Days

7. Annual Meeting Registration

Contact with Questions: Michel Simard, CIA Executive Director, at executive.director@actuaries.ca

Educational Note: Health Care Trend Rate

This educational note is intended to assist actuaries in determining assumptions for health care trend rates, which are required under current actuarial Standards of Practice, when providing advice on the financial condition of a post-retirement benefit plan. The note starts with a definition of a health care trend rate, discusses its development, considerations and limitations for use in performing a valuation, and provides more specific information on the types of claims trend rates that apply in health care benefits.

Link:
click here.

Contact with Questions: Jeremy Bell, Chair, Committee on Post-Employment Benefit Plans, at jeremy@bellactuarial.com

Educational Note: Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates Between December 31, 2011, and December 30, 2012

This document has been prepared by the Committee on Pension Plan Financial Reporting (PPFRC) and is intended to provide actuaries with guidance in selecting appropriate assumptions for hypothetical wind-up and solvency valuations in respect of benefit entitlements that are assumed to be settled by purchase of annuities or by lump sum transfer with effective dates on or after December 31, 2011, and prior to or on December 30, 2012. For greater clarity, this document does not provide detailed guidance on selecting appropriate assumptions for hypothetical wind-up and solvency valuations in respect of benefit entitlements that are assumed to be settled in a manner other than the purchase of annuities or lump sum transfer.

Link: click here.

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

Submission to the Financial Services Commission of Ontario

The Canadian Institute of Actuaries has offered a response to the Pension Consultation draft of Actuarial Guidance Note #2—Determination of the Solvency Liability Adjustment.

To read the submission, please click here.

Contact with Questions: Phil Rivard, Chair, Practice Council at privard@segalco.com

PRMIA Event Sponsored by the CIA

The CIA is pleased to sponsor an upcoming event of the Professional Risk Managers’ International Association (PRMIA):

Edmonton Chapter (September 26, 2012)

This half-day event on Asset & Risk Allocation is organized in collaboration with CFA Edmonton and the Canadian Pension Benefits Institute (CPBI) and co-sponsored by the CIA.

PRMIA members can register here. Non-members can join PRMIA for free by clicking here.

For more information click here.

Contact with Questions: PRMIA at 612-605-5370 or support@prmia.org

Webinar: Creating and Delivering Effective PowerPoint Presentations

Wednesday, May 30, 2012
Noon to 1:30 p.m. (EDT)

Speaker: Dave Paradi, author, The Visual Slide Revolution and 102 Tips to Communicate More Effectively Using PowerPoint

"Death by PowerPoint" is a term that has been used to describe too many financial presentations. It doesn’t have to be this way; you can create displays that are engaging and informative. In this 90-minute webinar, PowerPoint presentation expert Dave Paradi will show you how to create a clear plan for your presentation that focuses you and your information. You will also learn how to select colors, fonts, and layouts to enhance your slides even if your organization has a template you must use. And Dave will show you ways to present financial information more effectively, using graphs and summary tables instead of copying Excel spreadsheets onto your slides.

When you register, you have an opportunity to send Dave some of your slides and he will select examples for slide makeovers that we can all learn from.

Note: The link to the webinar will be sent directly from the presenter.

Link: click here.

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

New E-Book: Risk Metrics for Decision Making and ORSA

The Joint Risk Management Section of the Canadian Institute of Actuaries, Society of Actuaries, and Casualty Actuarial Society, in collaboration with the International Network of Actuaries in Risk Management, is pleased to release its third essay e-book, entitled Risk Metrics for Decision Making and ORSA.

The insurance regulatory framework is evolving around the world, and the intent of these 18 essays is to generate discussion and debate surrounding the principles and ideas underpinning the Own Risk Solvency Assessment initiative and the risk metrics used for decision making. Different points of view are presented, and the organizers hope the essays will provide thought-provoking discussion and commentary in the months and years to come.

The English version of the essays is available now, and the process of translating them into French has begun. A further announcement will be made when the French version is available.

For more details and to read the English e-book, click here.

Contact with Questions: Les Dandridge, director, communications and public affairs, at les.dandridge@actuaries.ca

IAA Colloquia in Mexico City: Registration Underway

Registration is now underway for the forthcoming colloquia in Mexico City organised by three sections of the International Actuarial Association (IAA): Actuarial Studies in Non-life Insurance (ASTIN), Actuarial Approach for Financial Risks/Enterprise Risk Management (AFIR/ERM), and Life (IAALS).

The event will run from October 1–4, 2012, and its objective is to promote the publication of papers that contribute to the betterment and enhancement of the actuarial profession.

The early-bird registration period is now open until July 31, 2012. CIA members are invited to attend and to present papers (abstracts will be accepted until July 31), and for more details, visit the colloquia website.

Contact with Questions
: Emma Izquierdo at eiviajes@prodigy.net.mx

Educational Note: Reflection of Hedging in Segregated Fund Valuation

The educational note entitled Reflection of Hedging in Segregated Fund Valuation was recently published. Its objective is to provide guidance for the use of approximation methods to account for hedging in the calculation of insurance contract liabilities, and provide guidance with respect to potential hedging weaknesses that would be reflected in insurance contract liabilities.

To read the note, please click here.

Contact with Questions: Mike Schofield, Chair, Working Group on the Reflection of Hedging in Segregated Fund Valuation, at Mike.Schofield@sunlife.com

Promote Your Business by Supporting Canadian Actuaries

Four key events for 2012 will bring together hundreds of actuaries eager to develop their careers through informative seminars, experts’ presentations, and networking. The Canadian Institute of Actuaries is presenting its Annual Meeting, Seminar for the Appointed Actuary, Pension Seminar, and Investment Seminar, and would like to invite you to consider a range of valuable sponsorship opportunities.

As our sponsorship program demonstrates, sponsors can enjoy various benefits while supporting the continued success of actuaries across North America. These landmark occasions involve professionals from some of Canada’s most successful companies, all interested in learning more about their profession and the organizations that play such an important role in the country’s economy.

In addition, for the very first time and on a limited basis, the 2012 Annual Meeting in Toronto provides you with the opportunity to exhibit your company’s products and services for the low fee of $750. These spaces will be sold on a first-come, first-served basis. Don’t delay!

Sponsorship helps fund high-quality professional development while giving businesses a chance to demonstrate their commitment to the profession plus an unparalleled opportunity to meet numerous Canadian actuaries. Programs for the meeting and seminars feature a broad variety of topics and special events, all designed to promote new ideas and approaches in the field of actuarial science and capitalize on CIA members’ experience, initiative and creativity.

Sponsorship opportunities are available for all budgets, starting at just $500, with extra benefits for those willing to become Benefactors, Patrons, or Grand Patrons. For example, Grand Patrons (a sponsorship level of $15,000+) enjoy:
  • Recognition of their name or logo on signage and screens throughout all four events;
  • Acknowledgement as a sponsor in the Meeting Programs (4) distributed to every delegate, during the CIA President’s address in the Annual Meeting, and on the CIA website before, during, and after the meetings;
  • Two complimentary delegate registrations;
  • Two Meeting Supporter Recognition ribbons; and
  • A complimentary full-page advertisement in the final program of each event (4).
Proposals for sponsorship are negotiated on a first-come, first-served basis, and demand is already strong. So please take a look at what is on offer in the program, and consider a level of support appropriate for your organization.

These outstanding opportunities to align your business with key industry figures should not be missed. We hope we can count on your support to make them even more successful. We look forward to discussing these opportunities with you.

For details about sponsorship, please see the program. If you have any questions regarding sponsorship, please contact Jacques Leduc at the CIA Secretariat at 613-236-8196 ext. 103 or at jacques.leduc@actuaries.ca.

Contact with Questions: Jacques Leduc at 613-236-8196 ext. 103 or jacques.leduc@actuaries.ca

2012 ERM Symposium: Recordings Now Online

The organizers of the 2012 Enterprise Risk Management Symposium, which took place in Washington, DC, last month and was co-presented by the CIA, have released downloadable recordings of numerous sessions from the event. They are in MP3 format, and can be heard via iTunes or other audio players.

To listen to them online or download them, click here.

Contact with Questions: The Casualty Actuarial Society at meetings@casact.org

Join Us on Twitter!

The CIA’s Twitter accounts have almost doubled in size in little more than a month, with close to 200 people now receiving our updates of Institute events and activities, links to articles of value, and news of people in the actuarial profession and beyond. Many of your peers and industry leaders have already signed up, and we encourage anybody not already following us on Twitter to do so in order to stay as up to date as possible.

While it may be some time before we overtake the likes of Lady Gaga (23,921,673 followers) or, closer to home, Stephen Harper (218,387), our Twitter feed is already proving a highly effective way of promoting the Institute and Canadian actuaries. Our followers are passing on our updates to their own followers, helping to distribute news of our members to a diverse range of people and organizations, and we are attracting interest from around the world.

However, the strength of any social media initiative depends on the size of its network, and so we urge all CIA members to sign up to follow our English or French Twitter accounts. You can click on the appropriate button on the CIA’s website, or directly at our Twitter page: English or French. By following the CIA, and retweeting any posts you feel would be of interest, you help ensure that the work of the Institute and its members can reach the widest possible audience, constantly raising the profile of the Canadian actuarial profession.

Link
: click here.

Contact with Questions: Les Dandridge, director, communications and public affairs, at les.dandridge@actuaries.ca

Highlights from the March 27, 2012 Board Meeting

The highlights from the most recent Board meeting, held on March 27, are now available. To view the document, please access the link below.

Link: click here.

Contact with Questions: Michel Simard, CIA Executive Director, at executive.director@actuaries.ca

Report on Canadian Economic Statistics 1924–2011: Final Release

The final version of the Report on Canadian Economic Statistics 1924–2011 is available on the CIA website.

This document is only available to CIA members. It can be found in the Members Site on the webpage of the Committee on Investment Practice (Organization>>Committees and Task Forces>>Committee on Investment Practice>> Reports and Documents).

Link: click here.


Contact with Questions:
Tony Williams, Chair, Committee on Investment Practice, at: tony.williams@pbiactuarial.ca

Ross Dunlop, Vice-chair, Committee on Investment Practice, at: rdunlop@cardinal.ca

Submission to the Casualty Actuarial Society: Objectives for Preliminary Education Content and Process

The Canadian Institute of Actuaries (CIA) responded to the Casualty Actuarial Society’s invitation to comment on objectives for preliminary education content and process.

To read the submission, please click here.

Contact with Questions: Dave Dickson, Chair, Eligibility and Education Council, at DicksonDave@hotmail.com

Request for Proposal—Liabilities for Long-Latency Occupational Diseases

Recent changes to part 5000 of the Standards of Practice require members valuing public personal injury compensation plans to include an allowance for all occupational disease claims with a long latency period expected to arise after the calculation date, effective December 31, 2014. To assist members in implementing this requirement, the Practice Council (through the Committee on Workers’ Compensation) wishes to produce guidance on this topic. A research project will be conducted to develop guidance around methodology and assumptions, and to produce a list of occupational diseases which may be considered long-latency diseases.

Link: click here.


Contact with Questions: Thane MacKay (tmackay@morneaushepell.com) or Paul Duxbury (pduxbury@rogers.com)


 

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