PPC Releases Issue Brief on Challenges Facing PBGC Multiemployer Program
The Pension Practice Council (PPC) released an issue brief that examines the Pension Benefit Guaranty Corp.’s (PBGC) multiemployer pension program. Honoring the PBGC Guarantee for Multiemployer Plans Requires Difficult Choices notes that unless significant changes are made, the program is projected to become insolvent in about eight years.
“Recent changes aimed at bolstering the multiemployer program’s financial condition may have improved its position going forward, but not nearly enough to support existing guarantees,” said Academy Senior Pension Fellow Ted Goldman. “None of the remaining choices available to ensure the guarantees is without disadvantages, and all of them require sacrifices.”
Regular registration rates for the Academy’s Annual Meeting and Public Policy Forum are available through the end of today, Oct. 21. With more than 40 experts on hand, meeting attendees will get the latest news on today’s top public policy and professionalism issues, and hear from a high-profile roster of keynote and plenary speakers including former Sen. Chris Dodd. The agenda offers up to 12 organized-activity continuing education (CE) credits, and up to 1.8 professionalism CE credits. The Academy believes in good faith that Enrolled Actuaries attending the pension breakouts also can earn up to 5.4 “non-core” CPD under the JBEA rules for attending all three sessions. Register today, and join us in Washington Nov. 3-4 for the meeting and forum.
Upcoming Events
Only a Few Spaces Remain for LHQ Seminar: Just a few spaces remain for the 2016 Life and Health Qualifications Seminar, to be held Nov. 13-17 in Arlington, Va. (Washington, D.C., metro area). This annual seminar is the primary source of instruction for actuaries who wish to be qualified to issue statements of actuarial opinion for either the NAIC Life and A&H Annual Statement or the NAIC Health Annual Statement. Register now to reserve your spot for this highly regarded seminar.
Newly Announced Webinar on Alternative Pension Cost: The Academy announced this week it will host a webinar, “Alternative Pension Cost—An Update and Review of Implementation Issues,” on Wednesday, Nov. 16, from noon to 1:15 p.m. EST. Presenters will review expense methodologies presented in the 2015 issue brief, Alternatives for Pension Cost Recognition, which were also discussed in a webinar last November. This webinar will feature leaders from the Academy’s Pension Committee and PPC, and the Academy believes in good faith that Enrolled Actuaries may earn 1.5 CPD non-core non-ethics credits under the JBEA rules for attending this webinar. Register today.
Agenda at a Glance Available for P/C Loss Seminar: An agenda at a glance is available for the 2016 Seminar on Effective P/C Loss Reserve Opinions, to be held in Chicago on Dec. 6-7. This two-day seminar will enhance your expertise on the latest regulations and standards with reviews of actuarial qualification standards and interactive case studies. Register today.
See our website for a listing of all Academy events.
Professionalism Webinar on Cross-Practice Issues
Wednesday’s professionalism webinar, “An Overview of Cross-Practice Standards,” attracted close to 2,000 participants and focused on the cross-practice standards that provide guidance on fundamental issues facing actuaries in every practice area. Actuarial Standards Board (ASB) Chairperson Maryellen Coggins, along with ASB Vice Chairpersons Beth Fitzgerald and Frank Todisco, covered existing standards on actuarial communications, data quality, and credibility procedures, as well as several concepts laid out in the introductory standard of practice. They also discussed issues raised in the draft standard on modeling, now exposed for comment, and a proposed standard on assumptions. Slides and audio are available for members free of charge.
Professionalism Outreach
Academy President Tom Wildsmith addressed students in Temple University’s actuarial science program on Friday. His presentation, “Professionalism and the Aspiring Actuary,” provided students with a compelling account of the broad societal impact of the U.S. actuarial profession’s work and how the Academy historically has articulated, and continues to articulate, the consequent professional responsibilities of actuaries with regard to the public, employers, clients, and others.
Public Policy Activities
The Solvency Committeesubmitted comments to the International Association of Insurance Supervisors on the Risk-based Global Insurance Capital Standard Version 1.0 public consultation document dated July 19, 2016.
The C1 Work Groupsubmitted comments to the NAIC’s Investment Risk Based Capital (RBC) Working Group on proposed RBC factors for fixed income securities for the NAIC’s life RBC formula.
The Pension Committeesubmitted comments to the ASB on the third exposure draft of a proposed actuarial standard of practice (ASOP) on modeling.
In the News
Senior Health Fellow Cori Uccello provided an actuarial perspective on the impact of loosening the age-rating band ratio from 3:1 to 5:1 under the Affordable Care Act in a subscriber-only Inside Health Insurance Exchanges story.
A story in Life & Health Advisor featured the Academy’s new pension risk transfer issue brief, which provides a discussion of risk transfer from the perspectives of plan sponsors, beneficiaries, and policymakers.
Fidelity published a CNN Money story on retirement planning that cited the Actuaries Longevity Illustrator, developed by the Academy and the Society of Actuaries, as a useful tool to help people understand longevity risk.
The syndicated radio show “Indy’s Morning News” cited the Academy’s analysis of longevity risk in a report on the challenges and possible solutions for current and future retirees in securing and managing their lifetime income needs. The program aired on WIBC-FM (Indianapolis) on Oct. 17.
The Morning Journal (Lorain, Ohio) published a MoneyTips story that cited recommendations from the ASB’s Pension Task Force report. The article, which was also published by News-Herald (Willoughby, Ohio), looks at retirement challenges, including funding of state and local pension plans.
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