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CIA Annual Meeting

CIA Annual Meeting. LOOKING BACK…focused on the future. Moderator: David A. Short Speakers: Randall J. Dutka Patrick F. Flanagan. Mandate of Task Force Focus on professional integrity in work of the pension actuary in light of Enron, Morris Review, regulatory concerns etc.

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CIA Annual Meeting

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  1. CIA Annual Meeting LOOKING BACK…focused on the future

  2. Moderator: David A. Short • Speakers: Randall J. Dutka Patrick F. Flanagan

  3. Mandate of Task Force • Focus on professional integrity in work of the pension actuary in light of Enron, Morris Review, regulatory concerns etc. • Independent of CIA initiatives related to funding standards • Times have changed – what was good enough in 1995 is not good enough today

  4. Recommendation 2-1 • Amend or annotate Rule 7 of Professional Conduct to clarify authorization required for disclosure of confidential information.

  5. Recommendation 2-2 • Strengthen Rule 5 of Professional Conduct to improve disclosure of conflicts of interest to indirect users of reports.

  6. Recommendation 2-3 • Amend Rules or SOP to require disclosure in report if the actuary or actuary’s firm is not financially or organizationally independent of the client or plan.

  7. Recommendation 3-1 Amend SOP to require disclosure in report of: - client’s involvement in selection of assumptions/methods- relevant investment/benefit/funding policies - justification for each assumption.

  8. Recommendation 3-2 • Develop SOP for conversion values including guidance on assumptions concerning future employment and wage increases.

  9. Recommendation 3-3 • Develop SOP for surplus attribution on plan wind-up

  10. Recommendation 3-4 • CIA to adopt recommendations in report of Task Force on Public Policy Principles of Pension Plan Funding concerning: - report’s reflecting the Funder’s funding objectives - guidance on measurement and reporting in relation to funding objectives - guidance on selection of assumptions – best estimate and PfADs.

  11. Recommendation 3-5 • CIA to consult with CICA to clarify their expectations re. actuary’s involvement in pension expense calculations, in particular: - clarify actuary’s role re. actuarial cost methods and other technical rules - strengthen requirement for dialogue between actuary and auditor

  12. Recommendation 4-1 • Amend SOP to introduce concept of Independent Review reporting and establish criteria for such reporting.

  13. Recommendation 4-2 • Amend SOP to require disclosure of whether an external report of a review actuary is an Independent Review.

  14. Recommendation 4-3 • Amend SOP (or educational note) to provide more guidance for review work including: - minimum standards for external peer review - items to be included in terms of reference - disclosure if terms of reference don’t meet minimum standards.

  15. Recommendation 6-1 • PPFR Committee to review Insurance Financial Reporting SOPs with a view to developing parallel standards with respect to: - reporting justification for each assumption - use of best estimate assumptions and reporting of margins and PfADs - conducting and reporting tests of adequacy of funding

  16. Your feedback please!

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