The Academy’s April 4 Capitol Hill briefing on retirement risks was cited. The Academy provided a hypothetical example to demonstrate “timing risk.” In the example, a worker who retired on Jan. 1, 2009 as opposed to Jan. 1, 2008 would have his or her annuity reduced by 26 percent because of declining investment account values and higher annuity purchase rates resulting from declining interest rates.

The Academy's Public Plans Subcommittee Chairperson Bill Hallmark discussed early retirement incentives' affect on public pension financing. Hallmark said that most early retirement incentives are unlikely to have a "significant impact" on pension systems' fiscal health because costs tend to be spread over time.

The Academy was mentioned for its efforts to design a standards framework to provide all stakeholders with a clear understanding of the long-term costs of public pension benefits. The Academy's board asked the Actuarial Standards Board in October 2008 to develop standards for consistently measuring the economic value of pension plan assets and liabilities.

The Academy said that the cost of living for single retirees is about 40 percent higher than for couples on a per person basis because of economies of scale.

The Academy's Pension Assistance List program was mentioned for providing free actuarial expertise to workers who need help checking pension calculations.

Academy Pension Accounting Committee Chairperson Steve Alpert discussed how public pension plan funding would be affected by a move to a fair-value accounting approach.

In a preview of the 2011 Social Security and Medicare trustees' reports, Academy Social Insurance Committee Chairperson Janet Barr discussed the 2010 Social Security report's projection that the Disability Insurance trust fund would be exhausted by 2018.

American Academy of Actuaries Senior Health Fellow Cori Uccello discussed the 2011 Medicare Trustees Report. Uccello said that the trustees determined that for Medicare to stay solvent for the next 75 years, it would have to immediately raise payroll taxes by 24 percent, or cut current benefit payments by 17 percent.

American Academy of Actuaries Senior Health Fellow Cori Uccello discussed the 2011 Medicare Trustees Report. Uccello said that the trustees determined that for Medicare to stay solvent for the next 75 years, it would have to immediately raise payroll taxes by 24 percent, or cut current benefit payments by 17 percent.

Reuters
The Academy's Pension Assistance List program was mentioned for providing free actuarial expertise to workers who need help checking pension calculations.