by Anthony 1. Spano

t’s always enlightening to view things from a historic perspec- tive. I’ve just had this opportu-

nity after completing a six-year stretch on the Society of Actuaries Board of

vemors. In the lifetime of the Soci- ai let alone the actuarial profession,

six years is certainly a brief span. But you don’t get that impression if you make “before and after” comparisons of some key measures of Society activity. Consider the following:

Percentage 1984 1990 Increase

FSAs 5.208 6.453 24% ASAs 4.052 6.005 48 Total members 9.260 12.458 35 Exam candidates

(Nov.) 9.517 17.380 83 Society budget

(‘000s) $3.609 $10.076 179 Staff employees 36 69 92

Clearly, these figures point to remarkable growth. Going beyond sheer numbers. the overall picture is equally impressive. Just to mention a few highlights, these six years saw the birth of FESIFEM. an entirely new and ambitious research program, and a quantum increase in the services provided by the Society staff. The last development has been especially welcomed by Society volunteers like me, who have seen a significant

e ing of our administrative burdens. is has enabled us to focus more on

the policy and professional aspects of our assignments.

Now that we have looked at a piece of history, let’s look ahead a bit. This brings me to the principal theme

Continued on page 3 column I

ave m you ever issued a Public Statement of Actuarial Opinion? Odd question,

isn’t it? Sounds a little pretentious, in fact. However, the concept of such an opinion is at the core of the thinking of the American Academy of Actuaries about how to guide members and the public as to whether an actuary is qualified to do the work that he or she does.

A Public Statement of Actuarial Opinion is any opinion that is called for by law or regulation, or by an Actu- arial Standard of Practice issued by the Actuarial Standards Board. Exam- ples abound in various areas of actu- arial practice: Schedule B certifications, loss ratio and rate filing opinions, nonforfeiture law compliance demon- strations, and opinions as to insurance

company statutory reserves. These and similar opinions form the official public work of actuaries, whether they are performed by an actuary in public practice or by one who does actuarial work solely for his or her employer. CE subject of debate We distinguish three aspects of an actuary’s qualifications: basic or initial education, experience, and continuing education. Continuing education has been the focus of a lot of activity. No serious arguments are made against the concept that continuing education is important for actuaries. The issue that has been debated in various con- texts since the early 1980s is whether actuaries should be subject to specific, quantitative minimum continuing

Continued on page 12 column I

h-a uhis issue: Edltortal: Toward a unified professlon Book revlew: Essays offer vision

Anthony T. Spano 1 of teaching math

Continuin P

educatton a part of being a John A. Beekman 8 public pro esslon

Daniel McCarthy Satlsfy your appetlte at

1 Spring 1991 Meetlng 8

The Actuarial Board for Counsehng and Dlsclphne

The complete actuary: Mentor@ - Is lt all it’s cracked up to be?

Gary D. Slmms 2 Cindy Forbes 9

SOA research efforts On the lighter side 10 encourage cooperation

Warren Luckner 4 What Is ANEAIASNA?

Tips for submitting to The Actuary Stephane Corrlveau and Davld Vanasse 44

Ceclha Green 5 Letters to Editor 12 Brldglng education and pubhc relatlons

Stephen G. KeElson 6 Actucrossword. Actucrostic - 15,16

Report of Board of Governors meetlng David M. Holland 7

The Actuary-- March 1991 2

~ , ?~,~r ~ w ~ p ~ l ~ . ~ !

The Newsletter of t h ~ Society of Actuaries

VOLUME 25, NO. 3 MARCH 1991

Editor responsible for this issue Tony Spano

Editor Linda B. Emory, FSA Associate Editors

Mary Hardiman Adams, ASA Robin B. Leckie, FSA

R. Stephen Radcliffe, FSA Anthony T. Spano, FSA

Irwin T. Vanderhoof, FSA Competition Editor

Charles G. GroeschelL FSA Features Editor

Deborah Adler Poppel, FSA Assistant Editors

Stephen H. Frankel, FSA Charles Habeck, FSA

Curtis E, Huntington, FSA David S. Lee, FSA

Society Staff Contacts {708) 706-3500 Cecilia Green Staff Editor

Judith Bluder Assistant Staff Editor Linda M. Delgadillo

Director of Communications Correspondence should be addressed

Tile Actuary P.O. Box 105006

Atlanta, GA 30348-5006 Copyright© 1991, Society of Actuaries

Tile Actuary is published monthly (except July and August) by the SOCIETY OF ACTUARIES, 475 North Martingale Road, Suite 800, Schaumburg. IL 60173-2226. Daphne D. Bartlett, President: David M. HoUand, Vice President and Secretary: Michael R. W|nn, Vice President and Treasurer: Kenneth A. IvicFarquhar, Director of Publications. Non-member subscriptions: students, $6.00; others. $15.00. Send subscriptions to: Society of Actuaries, P.O. Box 95668, Chicago, IL 60694.

The Society is not responsible for statements made or opinions expressed herein. All contributions are subject to editing. Submissions must be signed,

Ellm~ ~ ~ Printed on recycled paper

The Actuarial Board for Counseling and Discipline

by Gary D. Simms

he Actuarial Board for Coun ° seling and Discipline (ABCD) is a concept under develop-

ment that may radically alter the way members of the actuarial profession in North America are held accountable for their ethical and professional behavior when engaged in United States practice. A counterpart for Cana- dian practice also may be developed.

Growing out of recommendations made by the Task Force on Strength- ening the Actuarial Profession in 1989, the ABCD would be an independent body charged with providing the U.S. actuarial profession with a new source of advice and counseling on standards of practice and issues of ethical concern. It also would have responsi- bility for investigating allegations of impropriety raised against members of the profession and for recom- mending disciplinary action to the boards of the organizations to which the individual belongs, Benefits to the profession The actuarial profession, which is often accused of lacking any effective disciplinary enforcement mechanism, would be well served by the creation of effective machinery designed to help actuaries cope with the growing complexity of their field. By helping disseminate an understanding of emerging standards of actuarial prac- tice through its counseling role, and by recommending disciplinary action where action is needed, the ABCD would provide an important service to the profession. Our publics, including regulators, would be more confident in the ability of the profes- sion to police itself, and to enforce compliance of the highest standards of ethical conduct and actuarial prac- tice. Duplication of disciplinary effort could be avoided while a new func- tion, counseling, would be initiated, Need for central body The recommendation for a central counseling and disciplinary body is based on two concerns: that the current discipline system does not deal effectively with issues that call more for remediation and assistance than for punishment, and that effec-

tive discipline is hampered by the lack of coordination among organiza- tions representing U.S. actuaries.

The current disciplinary systems of the organizations in North America are totally independent, yet they share many basic elements. Each includes a requirement for an investigation of a complaint of ethical impropriety by an investigative committee, which may recommend either a private or public sanction, and action by the board to effect discipline. In the case of some organizations, remedial advice may take the form of private admonishments or reprimands, which remain disciplinary in nature.

The requirements for confiden- tiality contained in bylaw provisions of each organization representing actuaries prevent these organizations from cooperating in virtually any phase of the process. The Task Force on Strengthening the Profession has suggested the creation of a new, central body charged with providing non-disciplinary, advisory assistance to actuaries who have questions regarding either ethical or practice matters. Such counseling could take place in an atmosphere removed from the inherent coercion of a disciplinary context. Responsibilities of ABCD The ABCD would investigate com- plaints raised against any actuary who is a member of an organization that delegates authority to the ABCD to conduct an investigation on that organization's behalf. Following inves- tigation, the independent ABCD would determine whether disciplinary action should be recommended to the boards of each participating organization of which the individual is a member. The decision to implement any disciplinary action would remain with each organi o zation, since the ABCD's role in discipline would be solely one of investigation and recommendation.

In the course of investigating a complaint, the ABCD could, however, determine that informal counseling is more appropriate than any disciplinary proceeding, In that case, the matter would remain confidential within the

The Actuary-March 1991 3

ABCD. Naturally confidentiality and all due process rights would apply to

e (15

investigation and recommendation ocesses of the ABCD.

It is critical to reiterate that no organization would be asked to dele- gate its disciplinary authority to the ABCD. The ABCD may investigate, counsel, and recommend action to the organizations of which the individual is a member; it would not be empow- ered to take any disciplinary action. Organization of ABCD From an organizational perspective, the ABCD would be modeled upon the successful precedent of the Actu- arial Standards Board (ASB). The ABCD and its activities would be over- seen by a group of individuals selected by those organizations that delegate authority to the ABCD. For adminis- trative purposes, the ABCD would receive the staff support of the Academy, as does the ASB. Additional financing arrangements would be determined by mutual consent of participating organizations.

Discussions are under way within the Academy to fine-tune the proposal,

and it is anticipated that the ABCD will be created during 1991. The Academy, of course, wffl delegate appropriate investigative authority over its own members to the ABCD. and it is hoped that the Society of Actuaries, the Casualty Actuarial Soci- ety, the Conference of Actuaries in Public Practice, the Canadian Institute of Actuaries, and the American Society of Pension Actuaries will carefully consider a similar delegation of authority, and join the effort.

As this structure develops, efforts also are under way to create a uniform code of conduct to which all organiza- tions could subscribe. Such a code would make the enforcement of ethical requirements of the profession uniform and reduce confusion which may exist between the codes of the various organizations. Keystones of such a uniform system of conduct would be the obligation of the actuary to abide by the standards of practice promulgated by the ASB for United States practice, or CIA standards for Canadian practice. This would give the ABCD authority to counsel indi- viduals regarding their noncompliance

with standards and to investigate alle- gations that standards have been disregarded. In egregious cases, the ABCD could recommend disciplinary action to the board of the organiza- tion(s) to which the individual belongs for failure to follow ASB or CIA stan- dards. Also under discussion would be a requirement that individuals follow the qualification standards of the Academy and the CIA when making public statements of actuarial opinion in the respective nations.

Some aspects of these proposals may be perceived as revolutionary or somehow threatening to the integrity of actuaries or the organizations to which they belong. In fact, the ABCD proposal is a shining example of how the actuarial profession can work together. while retaining final authority with the individual organiza- tion. By retaining ultimate disciplinary authority, each organization safeguards the interests of its members. By dele- gating limited counseling and inves- tigative authority, each organization helps the profession as a whole. Gary D. Simms is General Counsel, American Academy of Actuaries.

Edf torial con t ‘d

of this editorial and of this issue of The Actuary A significant topic that was on center stage during my term on the Board was that of “strength- ening the actuarial profession.” A task force was appointed to consider whether restructuring the organiza- tion of the profession would help achieve this goal. The task force issued its report in June 1988. Some of its recommendations have been adopted: others have not. Understand- ably, some are disappointed that the results have fallen short of what the task force recommended.

But more important than a score- card of which recommendations have moved forward and which have not is the general atmosphere that has been created by the task force’s work. In the period since the task force’s report

a s issued, I have sensed an increased r-it and effort toward cooperation

and coordination among the organiza- tions that were represented on the task force. In this issue of The Actuary

we discuss some of the products of these efforts. The proposed actuarial board for counseling and discipline, described in Gary Simms’ article, would implement one of the task force’s principal recommendations. Included in Warren Luckner’s article are examples of how some of the Society’s research efforts support the activities of other actuarial bodies, and Dan McCarthy discusses the develop- ment by the Academy of a continuing education recognition program supported by the other organizations.

Another important effort we’ll be hearing more about in the coming months involves a Working Agree- ment among the organizations. In the words of its preamble, this agreement “has been created to record how actuaries in Canada and the United States will, through cooperative efforts of their organizations. more effectively achieve their common interests and thus make the actuarial profession more vital.” While recognizing the

independence of the various organiza- tions, the Working Agreement attempts to clarify the responsibilities of each of them. It seeks to achieve improved working relations among the volunteers and staffs of the organt- zations. promote internal communica- tion and external public interface for the profession, and minimize duplica- tion of efforts.

Some say that more dramatic and ambitious steps are necessary, such as reducing the number of organizations. Progress along these lines may indeed be possible. But inability to go further at this time should not deter us from strengthening the collaboration that has started bringing us closer together. This will indeed enable us to speak and act consistently, and to provide maximum service to the actuarial community. It will move us toward a unified profession and enhance our influence and stature. I’m confident we’ll all want to contribute toward these efforts.

The Actuary-March 1991 4

SOA research efforts encourage by Warren Luckner

SOA Research Actuary

I‘ he Society of Actuaries (SOA) research management process that was enacted in late I988

has resulted in 13 projects currently in various stages of the process. These projects, along with ongoing experi- ence studies, reflect the Society’s responsibility to promote research in actuarial science. An important benefit that has resulted from the process of developing these research projects and experience studies is the opportunity to work with and support other pro- fessional organizations. non-actuarial as well as actuarial. Interaction with governmental agencies Because the Casualty Actuarial Society (CAS) and the Society of Actuaries are the two primary professional actuarial research organizations in the United States, CAS and SOA research projects and experience studies are of partic- ular interest to the National Associa- tion of Insurance Commissioners (NAIC). Over the past few years the NAIC has made a number of requests to the SOA for special studies that would be of value to the NAIC as it fulfills its regulatory responsibilities. Similarly the SOA has had requests for special studies from other govern- mental agencies such as the Internal Revenue Service (IRS), which has regu- lations that identify the SOA as the body responsible for collecting data and proposing mortality rates for group life insurance. The IRS also depends on SOA studies for annuity and pension experience.

In Canada. the CAS and SOA have a somewhat lesser research role because the Canadian Institute of Actuaries (CIA) also sponsors research projects and experience studies. Recently the SOA and CIA have begun efforts to coordinate activities on research projects and experience studies. Value in public interface and setting standards As in the past, much of the current research completed by the SOA will be of value to the American Academy of Actuaries (AAA) and the Actuarial Standards Board (ASB) in fulfilling their responsibilities of public inter-

face and setting actuarial standards. respectively. It is anticipated that the results of the Effect of Duration on Small Group Medical Claims project and the Credit Risk project will be of particular value to the Academy and the ASB. The Small Groups project will provide valuable information on healthcare costs and coverages. The Credit Risk Project will provide valu- able information on the quality of the assets held by the insurance industry. Cooperation in various ways In the development of SOA research projects, cooperation with other professional organizations has taken many forms. The Actuarial Aspects of Continuing Care Retirement Communities project has been jointly funded by the SOA and CAS. and the Project Oversight Group includes a representative from the CAS. The Single Premium Deferred Annuity pilot study part of the Interest Sensi- tive Cash Flow Research project. is an example of a cooperative effort at the researcher level. Staff members from the Life Insurance Marketing and Research Association are an important part of the research team and have taken the lead in developing and distributing the data request and in developing an approach for analyzing the results. The Credit Risk project involves cooperation with the Amer- ican Council of Life Insurance and investment professionals with respect to project management, research design, and analysis of results. Also. interaction has begun with the Mortgage Bankers Association, with state regulators, and with the NAIC.

The Association of Life Insurance Medical Directors of America (ALIMDA) also has been involved with various aspects of SOA research projects and experience studies. The 1983 Impairment Study and the new kfedical E&s book are examples of cooperative efforts between the SOA and ALIMDA. The extent of ALIMDA’s involvement in SOA research activities is reflected by the existence of the ALIMDA and SOA Joint Liaison Committee. One thrust of this committee is to encourage companies to participate in the labora- tory test study, which is an extension

cooperation-..

of the individual life mortallty work. The purpose is to obtain normal values from medical tests performed on ostensibly healthy people, i.e.. those accepted for insurance coverage. and to monitor their mortality

The list of organizations to which the SOA has liaison representatives (page 44, 1991 SOA Yearbook) also gives an indication of the level of SOA interaction and cooperation with other professional organizations. Many of these liaisons have developed primarily because of research interests. Some of the liaison relationships have resulted in the development of sepa- rate committees. For example, the SOA Committee on Relations with Statistical Organizations has as one of its primary responsibilities the mainte- nance of active liaison with those statistical associations in Canada and the United States whose members have interests which coincide with o.-’ complement those of SOA members. Benefits of IARSG and AERF Another indication of the recogni- tion of the mutual benefit of cooperative efforts is the existence of the InterAssociation Research and Statistical Group (IARSG). Mark Doherty, SOA Director of Research, served as chair of this group during 1988 and 1989. The IARSG’s purpose is to prevent duplication of research activities and data collec- tion among insurance industry related associations. Similarly, the existence of the Actuarial Education and Research Fund (AERF). as a cooperative effort of the AAA. the CIA. the CAS. the Conference of Actuaries in Public Practice, and the SOA, illustrates recognition of the value of cooperation among the actuarial organizations in the areas of education and research. The fact that the AERF is directed by repre- sentatives of five actuarial organiza- tions enhances its ability to bring together significant research n projects. qualified researchers. and adequate funding for the benefit of the entire actuarial profession. Expansion of coalitions The SOA Research Department continues to look for ways to work

Continued on page 7 column 3

The Actuary-March 1991

by Cecilia Green SOA Staff Editor

S o you think you have an article for The Actuary but you’re not sure how to

proceed-Here are some simple do’s and don’t’s to increase your chances of seeing your byline in The Actuary Take note of the editorial focus and policies The purpose stated in the first issue of The Actuary (March 1967) still holds true:

“...to bring to our readers actu- arial and allied professional news while such news is fresh, to draw attention to items of general or particular interest to actuaries and to help bring the members of the Society in close touch with Society affairs.”

@

Anyone may submit material. ether or not they’re a member of

e Society of Actuaries. Solicited material and editorials by associate editors responsible for assigned issues. of course, have top priority. Space available - after Society committee or officer reports, Actucrossword and Actucrostic puzzles, and letters to the editor - is then filled with unsolicited articles. The new column, “On the lighter side,” offers an opportunity to submit cartoons. puzzles, and humorous essays. Give us a call first The sooner we know your material is coming, the better. We may know of an upcoming issue with a focus that fits your article. We also may tell you that another article on that same subject already has been submitted. You can call Editor Linda Emory at her Barbook phone number, or Cecilia Green or Judy Bluder. SOA staff editors, at 708-706-3500. You also could talk to an associate editor listed in the masthead of The Actuary Submit your article on a disk

$ e prefer, if possible, that you submit

our article on a 5%” or 3%” floppy diskette, low density, in ASCII or WordPerfect 5.1. along with a printed copy of the article. This eliminates

errors that may occur during input and saves staff time.

Your submission can be mailed either to The Actuary F!O. Box 105006. Atlanta, GA 30348-5006, or to Cecilia Green, The Society of Actuaries, 475 N. Martingale Road, Suite 800. Schaumburg, IL 60173-2226. Think graphically Readership studies show articles are three times more likely to be read if they contain graphics - artwork, photographs, charts, or some design element. So, as you prepare an article, try to visualize, or ask someone you know with graphic training. what might help communicate your message. We can take your idea and develop the graphic, or you can supply it with your article. Meet our deadlines The deadline to receive material for The Actuary is the 15th of the month, six weeks in advance of the issue month: for example, the deadline for the March issue is January IS. Please don’t assume that all submitted material is printed Primary responsibility for selecting contents of each issue of The Actuary lies with actuaries on the editorial board, which include the editor and the associate editor assigned to an issue.

The most common reason for not printing an article or a letter is exces- sive length. Since The Actuary is a newsletter and not a technical journal, articles generally should be no more than 75O-lOOO words (a double-spaced typed page is about 250 words). Occa- sionally a longer article featuring a topic needing thorough discussion may be printed. Letters should be no longer than 500 words.

Keep two more points in mind When submitting material for The Actuary:

Please don’t expect your article to be printed exactly as written. SOA staff editors edit all material for grammar, journalistic style, and compliance with standards estab- lished for Society publications. As part of that process, we frequently consult with Society staff actuaries on technical questions. Our editing is then reviewed by the associate editor responsible for that issue. An article will be returned to the author for approval if substantial editorial changes have been made. Most likely, your submission will not appear in the next issue. If you submit an article. you should receive a letter or a phone call from an SOA staff editor letting you know its status as soon as a decision has been made. Since the production process takes several weeks, it may be some time before your article is printed. Authors of letters to the,editor generally are not contacted, since nearly all letters eventually are printed. Occasionally, a letter may be held for a response to be drafted if a concern or question needs a printed reply

The Actuary is your publication The Actuary is the Society’s primary communication vehicle and you are encouraged to use it both as a news source and as a means of creating dialogue and expressing opinions. The editorial board and Society staff are committed to maintaining its quality and we appreciate your strong support and interest in The Actuary

The Actuary-March 1991

by Stephen C. Kellison

M ost actuaries probably think of education and public relations as two

distinct andunrelated areas. Some might go even further and think of the two as antithetical. On one hand, education seems professional, altruis- tic, and public-spirited. On the other hand, to some people public relations conjures up images of slanted messages, salesmanship, and self- serving behavior.

However, this view of public rela- tions is much too harsh and unfairly negative. Education and public rela- tions should not only peacefully coexist, they should strengthen and reinforce each other. In fact, it is not an exaggeration to say that the two are closely interrelated. Mission of public relations Let me pose a fundamental proposi- tion of this article - isn’t the best and only truly successful public relations program one that is soundly based in education? We must consider the mission of public relations for a profession such as ours. Isn’t our mission to educate those outside the profession about the contributions the profession is making which help solve human problems and thereby benefit society as a whole? Only if the profession also educates those within the profession will these efforts succeed. Realization of their contributions to society will help actuaries maintain high quality and integrity as they perform their profes- sional responsibilities, and help them appreciate the importance of achieving public relations goals for the profession.

The actuarial profession is both blessed and cursed in its public rela- tions mission. We are blessed because we deal with financial security programs that touch the lives of virtu- ally everyone by protecting them against future economic loss. Our work is clearly in the public interest, since our primary mission is to main- tain the financial integrity of these programs so they can pay the prom- ised benefits when due.

We are cursed, as well, because the work we do is complex and difficult for the average citizen to comprehend. When the public does hear of us, we seem to bear bad news more often than good news. This presents formidable challenges in achieving our public relations goals. Need for commitment The need for a major public relations commitment by the actuarial profes- sion is evident everywhere we look. Does the public really understand the necessary role that risk classification systems play in the insurance mecha- nism, or have they been led to believe that all “discrimination” in insurance pricing is suspect? Does the public comprehend the enormous magnitude of potential future tax increases needed to pay for the cost increases in public programs, such as Social Security and Medicare, arising from the aging of the population? Why is the insurance industry the only industry confronting rate roll- backs mandated by voter initiative or legislation? Addressing the challenges To address the public relations chal- lenges before us, we must learn first to communicate in simple, understand- able terms. In the commendable attempt to be accurate and precise. too many actuaries forget that simplicity is essential for a message to be widely received. Our mission is to communicate a message that can be understood, not to overload the audience with technical detail.

Second, we must offer solutions or partial solutions to important prob- lems. Many actuaries are expert in finding something wrong - and some- thing right - with every option. We all honed the skill to analyze the pros and

cons of virtually anything when we wrote the actuarial examinations. However, major “real world” problems need to be addressed with action. For example. with healthcare costs spiraling out of control, aren’t imper- fect solutions that can be implemented quickly better than no solutions at all?

Third, our best strategy is to offer substantive high-quality studies and other professional work productsr to the public policy debate. Profes- sional insight and integrity is the strength of our profession. After all. we are not large enough to be politi- cally effective in terms of money and votes. Our greatest strength is to offer independent useful analysis that has value in the public policy arena. The excellent work that has been done on AIDS within the Society of Actuaries and by individual actuaries is exemplary of what needs to be done in many areas.

Fourth, we need to find ways to be effective as a profession even when total consensus does not prevail within our ranks. Actuaries have a tendency to be almost phobic about achieving consensus. Unanimity of opinion on major public policy issues rarely exists. but we cannot let that cause paralysis and inaction. In no way am I advocating suppression of minority views. Achieving a balance between the need to address major issues and the need to respect the views of all members is not easy, but it must be done. Other professions /I have found a way, and so must we.

Fifth and perhaps most impor- tantly, we must remain firmly committed to professionalism. High standards of entry into the profession must be maintained, and actuaries need to remain up-to-date in their

professional skills through continuing ducation. Adherence to the Guides

* Professional Conduct and the stan-

ards of practice being promulgated by the Actuarial Standards Board must be backed up with an effective disci- plinary mechanism. In this regard, the new Fellowship Admissions Course created by the Society of Actuaries is a welcome development. The public perception of high competence and integrity among actuaries must never be compromised if we are to succeed in our public relations mission.

Tools to achieve goals The staffs of both the Society of Actuaries and the American Academy of Actuaries include public relations professionals. In addition, both organi- zations have used outside professional firms. What is needed for greater success are an understanding from the membership on why such activities are vitally important and greater participation by the membership in such activities.

The recent action taken by the Society’s Board of Governors in supporting collegiate programs in actu- rial science will be beneficial in the

Q g run in achieving public relations

als for the profession. This was not the primary reason the action was taken, but it should prove to be a desirable secondary benefit. A higher profile for the actuarial profession within the academic community and among students who will be tomor- row’s leaders is certain to yield substantial public relations dividends for the profession in the future.

Education (both internal and external) and public relations (the right kind) go hand in hand. Stephen C. Kellison, an SOA Board member, is Chairman-Department of Risk Management & Insurance, Georgia State University.

,

Summary of OASDI and Medicare programs Robert J. Myers, former Chief Actuary of the Social Security Administration, has just completed a revision of his Summary of the OASDI and Medicare

a grams. This 47-page document

scribes the program as it exists as of January 1991, Copies may be obtained by writing to him at 9610 Wire Avenue, Silver Spring, MD 20901, and enclosing $1 for postage (and. if possible. a self-addressed mailing label).

The Actuary-March 1991

Report of Board of Governors meeting

T he SOA Board of Governors discussed extensively the work of the Joint Committee

on the Valuation Actuary at its last meeting held January 22, 1991. in Atlanta. Last December, the National Association of Insurance Commis- sioners approved changes to the Stan- dard Valuation Law and will soon be considering regulations necessary to implement the new model law. SOA President Daphne Bartlett called this a significant step forward for the actuarial profession and the Board passed a resolution thanking the Joint Committee for its outstanding accomplishments.

The Board agreed to a targeted surplus level for the Society ranging from 25% to 30% of anticipated expenses. On one hand, this may be viewed as strengthening surplus since the previous target had been 25% of anticipated expenses with no maximum. On the other hand, the upper limit of 30% will discourage accumulating an inordinate amount of surplus. Many complex issues were involved in this decision: sources of surplus by type of operation (e.g.. exams, meetings, and research). inter- generational equity dues level, exam fees. and change in number of students taking exams.

Two meetings-related topics were discussed but are still subject to further consideration. One is whether to consider locations such as Hawaii or Las Vegas for a spring meeting. The other is whether the Society should waive meeting fees for members who speak at a meeting but do not attend sessions other than their own. Some SOA members who fly in. speak, and fly out object to paying the meeting fee: however, any change would mean increasing meeting fees to cover lost revenue and could result in fewer speakers being available for follow-up sessions or networking:

The Board discussed the concept of a newsletter specifically addressed to actuarial students and concerns about the selection of papers for the ~ansacflons and communications with authors. These matters will be studied further.

The Board decided not to pursue an in-depth review of the SOAs computer operations, Current opera- tions were judged satisfactory in meeting user needs, and sufficient

capacity for expansion IS readily avail- able. After reviewing proposals, the Board concluded there was little to be gained by such a study at this time.

A statement outlining the SOA’s “International Strategies and Operating Principles” was approved by the Board. This is available on request from the Society office. Other business included reports by the SOA President, President-Elect, Executive Director, Elections Committee, and discussion of developments relating to Sections, research, education and examination, and publications.

The SOA Board of Governors is striving to improve communications with the members: this means listening as well as speaking. Please feel free to discuss these above matters with any Board member, or if you write me, I’ll see that your comments are circulated to the Board. Remember, we want your input. David M. Holland, Vice President and Secretary

Cooperation con t ‘d cooperatively with other organizations. For example, the department has sent a representative to the last two annual meetings of the National Association of Health Data Organizations. This interaction should prove beneficial as we continue to consider ways to best meet the need for health data.

The motivations for these cooperative efforts are varied. The SOA is committed to the spirit of the Working Agreement among the actu- arial organizations, discussed in Tony Spano’s editorial in this issue. Another motivation is a greater recognition that the work of actuaries relates to a variety of other professions and cannot be done in isolation. Finally. as professionals, actuaries recognize the need to involve other profes- sionals in areas outside the scope of their expertise. Such cooperation allows actuaries to learn about other fields and should advance the profes- sion’s research efforts.

8 The Actuary--March 1991

Book review

Essays offer vision of teaching math

by [ohn A. Beekman

On the Shoulders of Giants (New Approaches to Numeracy), Lynn Arthur Steen, Editor. Published by National Academy Press, Washington, D.C. (202-334-3180), 1990, 232 pages, $17.95.

he actuarial profession is dependent on a good supply of young people interested in

mathematics, and on the abihties of our school systems in providing them with solid educations, which include exposures to new ideas and tech- niques in mathematics. Because of this dependence, we should be interested in this collection of essays which shows how the concepts of change, dimension, quantity, shape, and uncer- tainty can be incorporated in exciting ways into the curricula for young chil- dren through college-age people.

The title of the book comes from Isaac Newton's comment "If I have

seen farther than others, it is because I have stood on the shoulders of giants." He made this statement in crediting his developing calculus to the earlier efforts of his predecessors.

The book consists of six chapters. The first one is entitled "Pattern," and was authored by Lynn Arthur Steen, editor for the volume. The successive chapters are "Dimension," by Thomas E Banchoff; "Quantity," by James T. Fey; "Uncertainty," by David S. Moore; "Shape," by Marjorie Senechal; and "Change," by lan Stewart. The authors are mathematics professors at St. Olaf College, Brown University, University of Maryland (College Park), Purdue University, Smith College, and Univer- sity of Warwick, respectively.

One of the early readers of this book was Johnnetta Cole, President of Spelman College. She states: "'On the Shoulders of Giants presents a fascinating vision of the teaching of deep, rich mathematical ideas from

early childhood through college. Its wealth of beautiful examples of important mathematics forecasts an exciting change in the teaching of this crucial discipline."

I agree completely with Dr. Cole's assessment. These six essays offer much potential for helping to increast the supply of mathematically inter- ested students, and to enhance their intellectual breadth and depth. John A. Beekman is Professor of Actuarial Science, Mathematics Department, at Ball State University.

Satisfy your appetite at Spring 1991 Meeting New Orleans never lets anyone go away hungry. When the Society of Actuaries arrives in New Orleans for the 1991 Spring Meeting on April 18- 19, participants will choose from a rich menu of speakers, workshops, and seminars and still have time to sample the best of a town famous for its history and native cooking. All sessions will be held at the Sheraton New Orleans Hotel, which overlooks the famous French Quarter and Missis- sippi River.

Workshop and seminar topics offer the freshest information in product development, financial reporting, and investments. Keynote speaker John T. Baily, general practice partner for Coopers & Lybrand

specializing in insurance, whets appetites at the opening session on Thursday with "Outlook for the '90s - Increased Responsibility and Increased Liabilities." His overview includes the current tone of regula- tion in the insurance industry and the multitude of initiatives designed to prevent a "savings and loan type" crisis. Humorist Hope Mihalap serves a "light lunch" Thursday with how she learned through attentive listening to "Play it by Ear: The Surest Path to Good Communications."

For early arrivals, the Society has arranged a Wednesday night dinner cruise on the mighty Mississippi aboard a triple-decker riverboat, complete with jazz band, buffet of

Cajun and Creole food, and view of the N'Awlins night hghts. Spouse tours include a river road journey back to the graceful time of plantations and a visit to the historic Vieux Carre. Pre-meeting seminars If you're a recent FSA, a nonactuary, or an individual new to the product development area, you may want to enlist in a special product develop- ment "boot camp," for two days of training, April 16-17, at a moderate level of difficulty. In addition, those involved in development of variou,, accelerated death benefit products attend an all-day Living Benefits seminar on April 17. For more informa- tion, call the SOA Meetings Depart- ment, 708-706-3540,

The Actuary-March 1991

The complete actuary

Wentoring: Is ,it all it’s cracked up to be?

by Cindy Forbes

0 ver the past several years, mentoring has become a hot topic in management

literature. Having a mentor during the early part of a person’s career has been heralded by some authors as one of the keys to becoming a success. Many companies, in an attempt to develop future managers as well as to integrate an increasingly diverse work force into their corporate culture, have adopted formal mentoring programs. Mentoring - a key to success? Research has found that mentored people are more successful in organi- zations. However, it is not clear whether the mentoring causes the success or whether successful people ttract mentors.

s A mentor means different things

o different people. A mentor can be seen as a sponsor, guru, counselor, teacher, advisor, guide, tutor, or coach. The role the mentor plays depends on the mentor’s style, the goal of the mentoring program (if a formal program is in place) and the needs or desires of the person being mentored. The mentor may serve as an added source of information, encouragement, career counseling, and as someone with whom to discuss problems.

On the surface, it appears that in such a relationship all the benefits flow to the one being mentored. Research shows, however, that mentors derive many benefits as well. The mentor gains access to the protege’s energy and creativity. In addition, the protege can offer the mentor vital information about other parts of the company, serve as a sounding board for ideas, or help the mentor finish a project. Mentors also may experience a sense of completion from sharing their knowledge and

perience to help others get started the company.

Companies recognize that mentoring is beneficial to the organiza- tion as well. Mentoring often contrib- utes to the development of managers, increases productivity, reduces

turnover, and enhances communica- tions between all levels and sectors of the organization. Additionally, mentors help integrate new employees into the organization and build a sense of belonging for their proteges. More corporations are using formal mentoring programs to help them deal with emerging social and economic trends. Specifically, they expect mentoring programs to: 0 Help attract and retain workers

during the coming labor shortage 0 Help integrate the growing

percentage of females, blacks, and other minorities into their corpo- rate culture

0 After an acquisition, integrate the managers of the acquired company into its culture

Potentid problem Corporate-sponsored mentoring programs are Increasing. But are mentoring programs and relationships a panacea? Problems can develop that diminish their effectiveness. First, mentoring relationships, like any others, can go sour, leaving proteges exposed if they haven’t developed other ties in the organization. second. they can lead to a continuation of the “old boy” network and to over- protection. Finally, in an ad hoc mentoring system, mentors tend to adopt proteges who seem most like- able and similar to themselves, which may lead to discriminatory behavior.

Of course, one of the biggest obstacles to mentoring. unless you’re part of a formal mentoring program, is developing these relationships.

Mentoring experiences ManuLife Financial began a formal mentoring program for actuarial

students and new Fellows about a year ago. The mentors are senior actuaries and each has a group of about four individuals. The group approach allowed every student and new Fellow to be included in the program. The goal was to foster our historically strong actuarial commu- nity within the company

Without the structure of a formal program, I’m not sure if I would have volunteered to be a mentor. I’ve given advice when asked and I had consid- ered mentoring students and staff with whom I felt a natural affinity Given the press of daily demands, however, these altruistic ideas usually were placed on the back burner. Also, I always experience some trepidation at the idea of giving other people advice, asking myself, ‘Who am I?” and “Do I really know what IS best for this individual?” After all, I live or die by the advice I give myself, but not the advice I give to others.

While a formal program ensures commitment, it creates other areas of concern for a new mentor: Will I get along with the individuals in my group? Will they have the same interest and commitment that I must have?

After a year as a mentor, I have discovered that my fears were unfounded and that I have experi- enced many of the benefits cited by the research. My group has discussed diverse subjects. such as career development, strategic planning. and stress management. We’ve also had guests who discussed operations-in other parts of the company I believe I’m much more in touch with the

Continued on page IO column I

10

Menturing con t’d concerns and issues facing our actu- arial students than I was before.

A few months ago, we surveyed the students and new Fellows in the program to find out whether they believed the program was beneficial. With the exception of a couple of participants, the program was viewed as worthwhile and something they wanted to continue.

On reflection, I realize I have had “friends” over my years at ManuLife to whom I could turn for advice and counsel. Until now, I had never thought of them as mentors. From this perspective, I offer the following advice to those of you in the early part of your careers: 0 Having a “friend” or mentor who

knows the company and has years of experience is very helpful.

0 Don’t be afraid to seek advice from senior employees whom you know and trust. They’ll be flattered rather than offended.

Q If you have mentoring-type relation- ships with individuals at your company, remember that the bene- fits will be proportionate with the effort you make in developing and sustaining them.

Cindy Forbes is Pension Marketing Vice President, ManuLife Financial.

RecycIled papu unsed hou me /0cucuiwy We are pleased to announce that this issue of The Actuary has been printed on recycled paper. Prompted by two recent letters from SOA members, we asked our printer to investigate paper options currently available from the mills. The printer located a recycled paper which is similar to our previous paper and comparably priced. AU future issues of The Actuary wiU be printed on recycled paper with no increase in production costs. The Society is looking into using recycled paper for other Society publications as well, including Section newsletters.

The Actuary-March 1991

‘Let’s Make a Deal’ revisited James Broffitt. professor of statistics and actuarial science at the University of Iowa, submits a probability problem that has been discussed recently in a Parade magazine column written by Marilyn vos Savant, who is listed in the Gufnness Book of World Records Hall of Fame for “highest IQ”:

There are three doors, behind one of which is a prize. A game show contestant picks a door, hoping it is the one with the prize. The host, who knows where the prize is. then opens a door other than the one selected by the contestant, which does not have the prize. The contes- tant then knows that the prize is behind the door he selected or the other unopened door, and is given the opportunity to change his decision to the other unopened door. Should the contestant make the switch?

Broffitt’s answer is “yes,” agreeing with vos Savant’s answer. Three letters to Parade (all written by university Ph.D.s) dispute this answer. Stats. a

magazine intended for students of statistics. also disputes her answer. Broffitt says that those who pointed the finger, accusing vos Savant of mathematical illiteracy are the guilty ones. Whom do you agree with, and why? (The April issue will carry Broffitt’s explanation.)

h

couuecuiaDun This graph, “Total Credits - 6 Sessions instead of the “Total Credits - 4 after Part 2.” should have been Graph 4 in the February 1991 Special Report

Sessions after Part 2” printed in the

on “Exam Performance under FES” report. We apologize for any confusion this may have caused.

Total Credits - 6 Sessions After Part 2 20% Samples of Part 2 Pass Lists

109% 90%

80%

70%

60%

50%

40%

30%

20%

m% 11182 part 2

D%(,,,,,,,,,,,,,,,,,,,,,,,,,,,, 11186Part2 \

60 75 100 125 150 175 200

Total A5A Credits Earned

The Actuary-March 1991 11

@What is ANEAlASNA7 by Stephane Corriveau

and David Vanasse

T he Association Nationale des etudiants en Actuariati Actuarial Students’ National

Association was formed just one year ago. In the first year, ASNA repre- sented only the students from Concordia University, Lava1 University, and Montreal University. At the begin- ning of the second year. University of Toronto, University of Waterloo, and Western Ontario University joined. ASNA now represents more than 2.000 students, and has received official approval from the Society of Actuaries and the Canadian Institute of Actuaries.

During the first year, ASNA obtained federal incorporation as a non-profit organization and defined its linguistic policy (It was agreed that services would be provided in both official languages, French and

nglish. in proportion with

6 ember representation.)

The goals of ASNA are: l To represent the population of

actuarial students before the Canadian Institute of Actuaries, the Society of Actuaries, and the Casualty Actuarial Society

l To serve as a forum for inter- university interactions and developments

l To serve as a medium to promote and demystify actuarial sciences

The board of directors decides the main projects of the associa- tion. This year, three committees were formed: l An international committee to estab-

lish a line of communication with the professional organizations throughout the world

l A committee that wffl gather information on graduate studies

l A committee for summer jobs in the United States and Western Canada

A committee that was formed last year for the exchange program

tween universities will continue.

* e students will be able to benefit

rom an exchange between Waterloo and Lava1 in September 1991.

Our most important project is our annual congress. This year, the congress took place in Quebec City on January 25.26, and 27. The

congress included conferences, actu- arial games (university feud. stratego. giant chess) and a few sports (volley- ball, hockey football). ASNA also adopted an official position about the recognition of university credits as an alternative to certain courses on the actuarial syllabus.

Another priority is distributing information to members about the latest developments in the profession, It is from this perspective that we created our semi-annual publication, the ANEAIASNA Magazine.

The organization is located in Quebec at this address: ANEA/ASNA, Local 3622, Ecole d’Actuariat. Univer- site Laval. Cite Universitaire. Quebec, Canada G 1 K 7P4. Stephane Corriveau is President and David Vanasse is Vice President of ANEA/ASNA.

Students available for summer jobs The Actuarial Students’ National Association (ANEA/ASNA) now has an actuarial student place- ment program for its members. Members are from Canadian universities, but some are inter- ested in working in the United States. The ASNA acts as the intermediary between your company and the students. Although ASNA’s focus is on summer jobs, some students may be available for permanent jobs.

If you are looking for a hard worker with a strong foundation in actuarial science or someone who is bilingual with some SOA credits, please mail us your job

” requirements. ASNA will pass on this information to our university members. Require- ments for a work permit are easily fulfilled.

For more information, contact ANEA/ASNA. Local 3622, Ecole d’Actuariat. Univer- site Laval. Cite Universitaire. Quebec. Canada GlK 7P4. Telephone: 418-656-3690.

Alice T. Schafer Mathematics Prize The Association for Women in Mathematics calls for nominations for the Alice T. Schafer Mathematics Prize of $1,000 to be awarded to an under- graduate woman for excellence in mathematics. All members of the mathematical community are invited to submit nominations for the prize, to be awarded in April 1991. The nominee may be at any level in her undergraduate career. The letter of nomination should include, but not be limited to, an evaluation of the nominee on the following criteria: quality of performance in mathe- matics, exhibition of real interest in mathematics, ability for independent work, and performance in mathe- matical competitions at the local or national level if any Supporting materials. if any should be enclosed with the nominations. Nominations must be postmarked no later than March 29, 1991, and sent to: Patricia N. Cross, Executive Director, Associa- tion for Women in Mathematics, Box 178. Wellesley College, Wellesley, MA 02181. or call 617-237-7517.

Review seminars offered

The Casualty Actuarial Mid-Atlantic Region (CAMAR) will offer intensive review seminars for Course 100. April 3-6: Course 110. April 8-11: Course 120. April 3-4: and Course 135. April 5-6. All courses will be conducted from 9 a.m. to 4 p.m. each day For further information, write to Bonnie Averbach. Program in Actuarial Science. Ritter Annex 475. Temple University, Phila- delphia, PA 19122, or call 215-787-8153.

* * * ARS will conduct review seminars in the Chicago area from April 25- 27 for the EA- 1 (Segment A) examinations and April 28 and 29 for the EA-1 (Segment Bl exams.

For more information, write to Albert0 R. Campos. the seminar lecturer, at: ARS. 5411 Burr Oak Road, Lisle, IL 60532-2180.

12

Cofltfnufng educatfon cont’d education requirements and, if so. whether some form of specific recogni- tion should be given to those who meet such requirements. A variant of this thought, reflected in the programs of some organizations, is that quantita- tive standards should be voluntary but still recognition-related.

In the view of an Academy task force that included representation from all organizations that represent American actuaries, the responses to this issue are both “yes.” and “no,” at least as far as the purposes of the Academy are concerned. Yes, we have suggested such requirements should exist, and they should apply to members who issue any Public State- ments of Actuarial Opinion. (Require- ments already exist, by virtue of Joint Board action, for enrolled actuaries in their statutory function: and by virtue of Academy action two years ago, for members signing statutory reserve opinions for insurance organizations.) No. we have concluded. the issue - at least for the Academy as a profes- sional standards organization - is not recognition, it is qualification. CE required of many professions Let’s go back to the “yes” response. In a way it turns on the answers to two questions. First, are we a public profes- sion? If we are not, then arguably our qualifications are our own business as individuals, and not the business of anyone else except those by whom we are employed or retained. I firmly believe that we are, and should view ourselves as being, a public profession. Any other conclusion is not only contrary to the facts, but also contrary to our individual and collective economic self-interest. Second, if we really are a public profession, do we want to be perceived as one? I believe that if we are a public profession, we surely want the benefits that flow from public acceptance of that fact. Unlike many other professions in the United States, we do not have a single licensing structure applicable to all of our activities. but we do have a framework of statutory, regulatory, and other structures that enable us to be perceived as a public profession. If we want to retain and expand on that franchise, then we must ask, “What does the American public expect of a public profession?” The answer is that one of the expectations, reflected in law or regulation for many profes- sions, is a set of mandatory minimum continuing education requirements.

The Actuary-March 1991

This assures the public that, at least to some degree, the continuing educa- tion that is necessary in concept is happening in practice.

The details of the task force proposal are in an exposure draft the Academy’s Board of Directors has authorized to be distributed to Academy members in March, with adequate time allowed for comment. Inevitably some wffl believe that it goes too far. while others will look for still more. This range of views emerged in the course of informal discussions with the Boards of the various actuarial organizations.

There is. however, one other point. Actuaries are a fiercely indepen- dent lot: we do not like being told what we must do. Neither, I imagine, do doctors, lawyers, accountants, and other professionals. They however, have accepted continuing education requirements as the price of licensure. In some aspects of the medical profes- sion, even re-examination require- ments have been accepted: does that strike fear in your heart as it does in mine? Like a well-known saying about ducks, if we want to be seen as a profession, we have to act like one. The idea of continuing education requirements, reinforcing what we should be doing anyway is reasonable by that standard. Daniel McCarthy, an SOA Board member, is a Consulting Actuary with Milliman & Robertson Inc.

pay it for you.

Dear Editor: n ASPA’s vigor applauded Larry D. Keys in the October 1990 Actuary asks if we should feel queazy about the recognition of ASPA as an actuarial society and suggests a public relations campaign to expose impostor actuarial societies who include non- actuarial members. I wonder that such a campaign would not also include those members of the American Academy of Actuaries with no other qualification for being called actuaries. I believe that his campaign is in the wrong direction.

If impostors are to be found, we need only look at the local yellow pages for so-called actuaries or actu- arial firms. It is these yellow page actuaries, whether members of any society or not, that pose a danger to the recognition of actuaries as an expert and ethical group.

In addition, I want to applaud the activities of ASPA. The preemi- nence of ASPA in public relations and governmental activities is not only due to its own vigor, but also to the lack /? of vigor by the Society and its members. We need only look to the current IRS program of actuarial audits of small pension plans for an example. It is ASPA that has taken legal action and has prepared published positions, while we only hear rumors of the Society’s activities and contradictory reports about the Academy’s These actions and positions are of great aid to Society members as well as all actuaries. In addition, I believe the public has a right to expect such a vigorous reaction from any body under attack and representing itself as exer- cising a public responsibility in any matter. I’m not surprised if the public may think that the most reaction comes from the most actuarial.

The study and examinations of the Society have prepared our member- ship to render the opinions that the IRS is now contesting. I hope that others feel likewise and that the Society comes forth with its own positive arguments to support that position. The proposed campaign of exposure of impostors is not only

-

negative but futile. William S. Wright

Response from Daphne Bartlett, QA President:

4 illiam Wright’s letter makes it clear at the leadership of the actuarial

profession in the United States hasn’t done a very good job of communi- cating to the membership about the roles of each of the organizations.

While he is certainly correct in suggesting that the actuarial profession should have a strong public relations and government interface presence, it’s not the business of the Society of Actuaries to be that presence. The American Academy of Actuaries is responsible for public interface activities in the United States. That’s why Society members are encouraged to support the Academy.

The Society is somewhat like a university - we educate, we grant “degrees,” and we perform research. If we were to get involved in U.S. public interface along with the Academy and ASPA. one sure result would be increased confusion among the audi- ences the profession is trying to reach. It’s to minimize this confusion that the various organizations, through the Working Agreement signed in 1990.

ve Q

committed to define the roles of ch. and to cooperate with each other

rather than to compete.

Comments on the “Year in Review”: It seems to me in view of the ever- rising dues of the Society, the financial difficulties of life insurance companies and consultants, and the vast amount of material already emanating from the Society office, a special year-end issue is not really called for, especially in such a glossy format, Are you trying to impress someone?

Think of all the trees that had to be cut down to produce this issue, and such heavy glossy paper is not easily recycled!

May I suggest that Parkinson’s Law IS operating within the Society’s publications staff?

Gordon Leavitt

* * 8

On rare occasions we actuaries have been able to overcome the stereo- typical notion that all actuaries are bland, dull, neutral if not neutered,

@ ‘thout personalities and surely ople which society will only just

barely put up with because we like to pursue trains of thought and numer- ical extravaganzas that few other sensible living beings wffl go at. The

The Actuary-March 1991

means used to accomplish this rectifi- cation of our insignificance has been The Actuary the newsletter of the Society of Actuaries.

Imagine my chagrin when the December issue arrived last week. It IS surely the dullest, most bone- shatteringly goshawful issue I have ever seen! Shame on the pedagogues who thought that we would be delighted to have another illustration of our ability to be insipid. Where are the glorious puzzles? Where are ideas of significance? Don’t we have enough examples of organizational stuff at the business sessions at Society meetings?

Last point: why isn’t your magazine recyclable?

James t? Larkin

* * *

In its own quiet and competent way, the special 1989-90 report on the Society of Actuaries (December 1990 Actuary) expresses a strength. flexibil- ity confidence, sparkle, pride in the profession, and a willingness to reach out to the future. to adjust with the flow of economic and social changes, and to create opportunities from rapidly evolving international events.

“These were the children of race divine” wrote a poet of the ancient Greek thinkers at the time of the flow- ering of their civilization. As I read this special issue of The Actuary these words, written 2.000 years ago. coursed through my mind. This is a profession in full flower. I am very proud to have been associated with it.

Very deep and fundamental changes are pending in the world, and much that we take for granted today will not survive in its present form. Much of our work, implicitly reaching far into the future. may not be relevant to the world of 2050. Will our researchers and the adjustments to the scope of our profession keep us in tune with or anticipate these deeper, long-term changes?

This is the real challenge that faces us now. Geoffrey N. Calvect

Reply from David M. Holland Chairperson, Publications Poky Committee: The leadership of the SOA feels a strong sense of stewardship for the profession. The annual report issue of The Actuary was conceived as an accounting to the membership of both deeds and finances.

13

of course, we are pleased with the kind words by Geoffrey Calvert and concerned that this review of “family business” was so uninteresting to James Larkin. With respect to Gordon Leavitt’s comments, it should be noted that the introduction of the annual report actually resulted in a cost savings for the Society of about $18,000. These savings were the result of eliminating the Committee and Section Reports which were annually sent to the membership and by using The Actuary’s December publication slot. rather than creating another publication for the annual report.

The point about recyclability was well taken. As a result, this issue and all subsequent issues of The Actuary are being printed on recycled paper.

Receiving only three responses from a readership of about 13.000 leaves a fairly significant sampling error. What do you think - should the annual report be continued or not?

Name calling is unnecessary Many of our leaders work hard to establish good working relationships between our profession and the Internal Revenue Service. Treasury Department, Department of Labor, and Pension Benefit Guaranty Corporation.

It is unfortunate that, at some of our meetings, derogatory comments are made about these organizations and their members.

While we often disagree with what is done and with the rules we have to work with and live under, name calling is unnecessary It is in particularly bad taste at an annual meeting of any of the actuarial organi- zations where many members of the government are in attendance.

I sincerely hope that all planning committee members will instruct their speakers that comments and discus- sions should be limited to facts. and to avoid chastisement or name calling.

Irwin I. Kent

More problems to solve In the October 1990 issue of The Actuaq Gregory S. Strong mentions a problem involving nine dots, which is prone to trip up the narrow-minded. Here are a few more problems that require a little bit of creativity to solve. A proper perspective also is needed, as well as a proper definition of the problem.

Continued on page 14 column 1

14

Dear Editor cont’d 1. The usual way of arranging nine

dots in a square involves eight rows of three. What is the fewest number of dots required to form eight rows of three?

2. In a similar vein, what is the fewest number of dots required to form five rows of four?

3. In a completely different vein, what is f[f(x)l if f(x)-x=pi/2 + sin [f(x)+ xl?

Thomas hi. Zavist

0% interest rate assumption questioned The general approach used by Robert Myers in his article in the October 1990 Actuary to deal with the ques- tion of normal retirement age for a public pension plan is very interesting, and the results are well presented.

Unfortunately I do not feel very comfortable with the 0% interest rate assumption underlying construction of column (2) of Table 2. More specifi- cally, it is not obvious that “the method adopted should produce reasonable results because the derived figures are the relative increases, and both the numerator and denominator are similarly affected.”

Consider this extreme example: Year 2002 - Probability of death is 0% for ages 65 to 83. and 100% at age 84. Year 2015 - Probability of death is 0% for ages 65 to 87, and 100% at age 88. Also assume that pension is payable yearly. in advance.

Under this example the last figure in column (2) (21.8 for year 20 15) is replaced by 20% under a 0% interest rate assumption, by 15.6% under a 2% assumption, and by 13.7% under a 3% assumption.

Although this example does not fairly represent the underlying reality, I suspect that the difference in results would be noticeable if we introduce the time value of money. This is especially true if we use a 3% “real” interest assumption.

Serge Hamelin

Comparing actuarial skills to the roadways To augment Steve Radcliffe’s excellent automobile analogy (November 1990 Actuary “Being strategically healthy”), I would like to offer the following: l Speed bumps representing regulators l Toll booths representing financial

rating agencies

The Actuary-March 1991

l Tacks (or its homonym “tax”) strewn on the road surface to represent the IRS

l A diamond lane representing surplus relief sandwiched between (and somewhat narrower than) the Fast Lane and the Leverage Ditch

I. of course, agree with Radcliffe’s conclusion that we must use our tech- nical skills (and strategic skills) to maintain the direction and speed of our respective companies’ growth.

Howard H. Kayton

Public policy participation I recently attended a meeting of a group called “The Chicago Assembly,” a not-for-profit group funded by several foundations which address broad issues, one per year. The topic of the meeting was “Paying for Healthcare in Illinois.” The represen- tation in the group was broad, with heavy academic and community group representation, and some representatives from business, health- care, and insurance. Government offi- cials also participated. The purpose of the session was largely to identify issues for a public policy agenda, wide publicity and presentation to the legislature. The process was designed to produce a report which could be used to represent a broad spectrum of community views.

Three major topics discussed were the private sector role in health care, Medicaid and public programs in Illinois, and overall health policy.

As far as I know, there were no other actuaries present. There was a lot of discussion on risk classification and its influence on buyers, primarily by those representing consumers who felt that underwriting was hurting them. By and large. the delegates at the meeting were very appreciative of my explanations of how these issues worked.

Copies of the report from this meeting can be obtained through the Metropolitan Planning Council, 220 South State St., Chicago, IL 60604.

I believe there are probably similar groups throughout the United States, and that individual actuaries might be well served to contact these groups within their own communities, letting them know who actuaries are, what they do, and with what issues we might be helpful.

Anna Rappaporl

Deparcieux early contributor to actuarial science / I came across this advertisement in ’ the catalogue of an antiquarian book dealer. Although I have a good knowl- edge of actuarial history, I have never come across a reference to Antoine Deparcieux before.

The Essaf is a classic of actuarial science, much appreciated by later writers who drew heavily upon it. Antoine Deparcieux (1705- 1768) was one of several mathematicians who became prominent in the flourishing of the science after Newton. His Tables Astronomiques, 1740, the first to contain B-figure tables of logarithms, firmly established his reputation. The Essai was the first statistical work of its kind and the first to define expectation of life which Depar- cieux termed “la vie moyenne.” He observed that women live longer than men but that they are fewer in number, and was the first to construct life tables for males and females separately

The Objections are extremely scarce: occasionally p they are bound up with the Essal, but more often with the Additions. which were not published until 1760. The Objec- tions are by a Jesuit priest, Father Thomas, but of greater importance are Deparcieux’s replies, which are not only a defense of the Essal but also a clarification of it.

For a detailed assessment of the life and work of Depar- cieux. see Pearson, HIstory of Statfstfcs fn the 17th and 18th Centurfes. pp. 197-207.

J. Bruce MacDonald

In memoriam J. Gordon Beatty FSA 1923 Joseph H. Brett FSA 1932

Loffle Lisle ASA 1969 Daniel Malament ASA 1958 Gordon G. Myer FSA 1936 Davis A. Pollock FSA 1973 /r

Eugene E Porter FSA 1966, FFA Charles F.B. Richardson FSA 1934

The Actuary-March 1991 15

ACTUCROSSWORD Across Down

1. One who presided - with 3 down a man of letters (10) 6. Committee sometimes without means (4)

10. Make Eva roll completely but no more (3,4) 11. Sportsman has mix-up with 27 in a car (7) 12. Kind of fellow clothed in color (6) 13. Connecticut prince confused by boundary (8) 15. City caterers for disaffected union members (4) 16. Sort of punt or grid sticking out (10) 19. Means of admission to championship, South East unaltered (4,6) 21. Be awkward to graduate in decline (4) 24. Led wrongly but right about it. Beware! (3,5) 26. Revolutionary historian and painter (6) 28. Put it in any way-it is absurd (7) 29. Retrain suitably on military grounds (7) 30. Chattanooga spider source of uneven breath (4) 31. Good sort of heist - pinch leads to rich rewards (2,3,5)

1. Waterproof covering a bad grow therein (7,8) 2. For source of wisdom Scot follows song (7) 3. English actor knight of former days (6) 4. Clothes that become worthless with age (4) 5. Hammerstein or Wilde for Thespian merit (5) 7. African town of gold sounds badly built (7) 8. Girl with old cloak appears suddenly in N.Y. (8,7) 9. Remain on high with felonious intent (5,2)

14. Love of Mother Osmanli (4) 17. Attempt duration or moment (4) 18. A sin about 3.14. Right drug? (7) 20. Object to 6 lengthwise (7) 22. Indian-perhaps Belgian (7) 23. Religious form - half game, half riches (6) 25. Handy man about the concert hall (5) 27. Design on metal and the rest an aspirate (4)

Februaw’s Solution

Send solutions to: Competition Editor, 8820 N. Port Washington Rd (312), Milwaukee, WI 53217

A. Squandered; gone to waste. (3 wds)

6. Like snow, a p&tern that disappears fl ignored tong enough.

I 1 1 1 1 1 1 I 175 158 71 232 113 197 95

I I 1 1 1 I 147 166 6 216 45

I I 1 I ’ I I I

43 115 176 151 72 a2 167

I 1 1 1 I 216 101 1 125

N. Technician; grease nwnkq!

0. In the sack

P. Erudite; ware; expert; perceptive.

16 The Actuary-March 1991

ACTUCROiTlC

c. Disappear; eamsce.

D. At issue; pending; uncertain. (2 wds)

E. A theory of evolution based on survival of the tittest.

F. Edict; decree; mandate.

G. Conservatfw diehard.

H. Convulsions during partuition.

I. Etalance; stability; poise.

J. What agents do not want from Underwriting.

K. Husband or wife, eg.

L. Overwhelming; appalling.

M. Often used when rerinishing wood furniture. (2 wds)

I 1 ’ ’ ’ ’ I 12 237145104 31 160

II 11 ' 11 "'I 73 176 138 200 214 22 17 231 46 117

II 11 11 1 “I 98 16 77 163 52 127204128105

I I I 1 I 173 93 210 19

I 1 1 1 1 1 1 ' I 109146 78 163238 25 212123

11 11 ““‘I 38 67 15 136 161 50 229 114 96

I 1 1 1 1 1 1 I 4 199139 66 165228111

I 1 1 1 I 215 33 97 164

I I I I ’ I I I 195 161 157 49 91 58 21

I 1 1 1 I 116 68 146 211

I 1 1 1 I

24 00 219 140

I I I I ’ ’ ’ I 234 55 76 141 107 227 13

I 1 1 1 ’ 1 1 ’ I 34 2012202301371M 59 74

Ct. Property; assets; belongings.

I?. The golden years.

S. All-pcwrful; supreme.

T. Sitting still unttl flu don’t catch anything.

U. Unquestionably (2 wds)

v. Vvhiitxtop; jumpingoff place. (hyph, 2 VW

W. IJminLshed state; crudely formed.

X. Goldbrfcker; donothing.

Y. System for forecasting common stwk values. (typh, 2 wds)

z. Foolproof way to hi all the QnBl lights. (3 wds)

I 1 I 1 1 190235130 14

I1 I I1 1 “I I

11992 401291522320923354

L I 1 1 I 0 159 75 10

I ’ 1 1 ’ ’ I 236164 62 27 79 155

II 11 11 11 “I 10 la3179221 28 166 86 42 163196

11 11 1 ’ I”’ I 133 37 120163 62 66 142 46 26 222

I ’ 1 1 ’ ’ ’ 1 174143106167 36 X6 61

II 11 fi 11 I

154 11 192 63 20 225 39

I I I I 1 1 217 05 112 47 134

11 I II 11 1 I

2 51 160 94 224 131 191 193

1 1 1 1 I 35 03 122170

I I I I I I “‘I

44 153 30 171 124 223 67 177 60

II I1 I I I I I I

3 126531101491532ce90 64 /

I 1 1 I I 1 1 1 I

156 121 213 29 144 7 166 65

II 11 11 I 203 41 100172106 61

I 1 1 1 ’ ’ ’ ’ l 79 226162 51 132 93 205116

I 1 1 1 1 I

150165 9 194 &I

FESRUARYS SOLUTlON - (Sob) W9fk?y, Mosquito, Yeah That’s It: throughout his career Gayford Perry denied he doctored pitches v&h vasekne. Once one of his pitches was fouled off and the ban hi the press box wfndw and left a greasy blotch on the glass. A reporter later asked him to wplain. Well,’ Perry do&d, ‘must have ha a mosquito on the w up:” The MILWAUKEE JOURNAL. June 10. 1930.

by Gary Corbett

ate in 1989, President Allan Affleck established a Task Force to Review and Recom-

mend Changes in the Society’s Elec- tion Procedures. Task force members were then President-Elect Daphne Bartlett and Committee on Elections members Nick Bauer, Harper Garrett and Bill Tozer. with myself as Chair. Ian Rolland. the incoming Chair of the

a ommittee on Elections, was also dded to the Task Force.

You may recall that several changes were initiated in the elections procedures for 1990: 1. Random selection of candidates to

appear at the top of each slate. 2. Statements from all second-ballot

candidates and from first-ballot officer candidates.

3. Interviews with second-ballot Presi- dential candidates in The Actuary

Many of you commented during the past few months on the 1990 elec- tions process through letters and phone calls, but our main source of membership feedback came from a survey mailed to all Fellows in August. We received 1,838 responses, a 29% percent return rate. This rate compared to 43% of the Fellows who voted on the second ballot and 37% who voted on the first ballot in 1990. The results of that survey are included in this supplement. Recommendations ollowing the survey, as well as other

a ember&p input. the task force recommended to the Executive Com- mittee and the Board the following: 1. Retain the three changes instituted

in 1990.

2. Revise the Commlttee on Elections procedures to provide that any Fellow who volunteers to run for the Board should be included on the first ballot. (This change would conform the procedures to the prac- tice of the past few years.)

The task force also reported to the Executive Committee and the Board that a majority of Fellows responding to the survey supported Associates of 10 or more years voting in elections. However, we made no specific recommendation on this matter. We recognized that it must be considered within the broader context of the Associates’ role and status within the Society in general and that any change in the voting rights would require a constitutional amendment. We did recommend that this issue be studied more comprehensively. Stmey PestlIPs 1. In general I am satisfied with the

Society’s election process, including the modifications for the 1990 elec- tion just completed.

Number Percent

Strongly agree 475 26.3 Tend to agree 1188 65.7 Tend to disagree 74 4.1 Strongly disagree 20 1.1 No o$nion - 52 2.9 --

1809 100.0 No response 29

1838 Strong support for the current

election process was indicated by all subgroups tabulated (Year of Fellow- ship, Current Employment, Area of Specialty and Country).

2. The current two-ballot election system is preferable to a one-ballot system with a competitive roster (i.e.. only two or three candidates for each position) nominated by the Committee on Elections.

Number Percent

Strongly agree 710 39.1 Tend to agree 851 46.9 Tend to disagree 130 7.2 Strongly disagree 22 No opinion 101 2

1814 1oo.o No response 24

1838 Strong support for the two-ballot

system was indicated by all subgroups.

3. The degree of discretion exercised by the Committee on Elections should be:

Number Percent

Increased 621 34.7 Same as at present 1058 59.0

- Decreased

No response

113 6.3 1792 100.0

46 1838

Since the Committee on Elections exercises limited discretion at the present time, it’s not surprising that few respondents wanted that discre- tion decreased. We were aware of some member views calling for a decrease in the committee’s discretion, but were somewhat surprised that 35% of the respondents wanted that discretion increased (a significant silent minority). Again, strong support for not decreasing discretion was shown by all subgroups. 4. The election process should

continue to be handled by the Society staff and the Commtttee

Special Report-March 1991

on Elections without an tndepen- dent audit.

Number Percent

Strongly agree 696 38.2 Tend to agree 824 45.2 Tend to disagree 190 10.4 Strongly disagree 2.8 No opinion 4 35

1824 1oo.o No response 14

1838 Respondents seemed to recognize

the independence of the Committee on Elections. Support was above 75% for all subgroups except for govern- ment actuaries, where only 68% agree with the statement.

5. The candidates’ statements on the I990 ballots enabled me to cast a more informed vote.

Number Percent

Strongly agree 689 37.7 Tend to agree 926 50.7 Tend to disagree 110 6.0 Strongly disagree 36 2.0 No opinion 67 3.7

1828 100.0 No response 10

1838 AU subgroups indicated strong

suuport for this 1990 enhancement.

6. I like the current practice of including statements from poten- tial Board members only on the second ballot.

Number Percent

Strongly agree 853 46.8 Tend to agree 765 42.0 Tend to disagree 114 6.3 Strongly disagree 39 2.1 No o$ilon - 50 2.7

1821 100.0 No response 17

1838 This was supported by all sub-

groups. The very strong endorsement was a little surprising, since a few members had written letters requesting some form of statement on the first ballot for all candidates, including elected Board members.

7. I like the present system, which allows the candidate, rather than the Committee in Elections, to select the topics to be addressed.

Number Percent

Strongly agree 615 33.8 Tend to agree 767 42.1 Tend to disagree 299 16.4 Strongly disagree 86 4.7 No opinion

Again, the current practice was endorsed by all subgroups. The strong endorsement was somewhat surprising since, just as for Question 6. a few members had suggested that candidates be required to address specific issues. 8. The interviews with the second

ballot President-Elect candidates published in The Actuary helped me cast a more informed vote.

Number Percent

Strongly agree 518 28.4 Tend to agree 895 49.0 Tend to disagree 141 7.7 Strongly disagree 44 2.4 No opinion - 228 12.5 - -

1826 100.0 No response 12

1838 Overall support was strong, but

it was lowest (60%) among academics. The Task Force and Committee on Elections recognize the desire of members to learn the views of Presi- dential candidates. However, such interviews may not always be practi- cal, and so alternative methods of accomplishing this objective should be explored. e.g.. written answers to interview auestions.

9. I believe the order in which the candidates are listed on the ballot could affect the voting.

Number Percent

Strongly agree 345 19.0 Tend to agree 649 35.8 Tend to disagree 503 27.7 Strongly disagree 227 12.5 No opinion 90 5.0

1814 100.0 No response 24

1838 The almost even split of this

’ question is not surprising. A similar split occurred on the Board of Governors when this change was first discussed. The task force believes the procedure initiated in 19911 (i.e., the random selection of candidates to appear at the top of each slate) is workable and does overcome any perceived alphabetical bias. Thus we have recommended the randomization process be continued. Comments on Questions 10 through 18 Questions 10 through 18. which

: focused on the issue of Board represen- tation were undoubtedly the most important in the survey - and prob- ably the most difficult to answer.

10. I feel that representative distribu- tion of some type is important on the Board of Governors.

Number Percent’

Strongly agree 581 32.1 Tend to agree 938 51.8 Tend to disagree 178 9.8 Strongly disagree 87 4.8 No opinion 28 1.5 - -

1812 100.0 No response 26

1838 Representative distribution is

strongly endorsed by all subgroups. How such distribution is to be accomplished has long been a problem for the Committee on Elec- tions and the Society’s governing bodies. We interpret the answers to Questions 8 and 10 as supporting the Committee on Elections and the Board doing whatever is possible, within the guidelines, to accomplish a reasonable distribution.

11. I feel my area of interest or country of residence has been underrepresented on the Board of Governors in the past.

Number Percent

Strongly agree 68 3.8 Tend to agree 199 Tend to disagree 694

11.1 , 38.6

Strongly disagree 409 22.8 No opinion 427 23.8 --

1797 100.0 No response 41

1838 Government actuaries, at 32%.

and pension actuaries, at 29%. consid- ered themselves the most under- represented. Even in these groups, however, a substantial majority disagreed that past underrepresenta- tion had been a problem.

Questions 12- 15 address Board distribution regarding several areas. 12. Board distribution to Society

membership regarding: Type of employment.

Number Percent

Strongly agree 420 23.2 Tend to agree 957 52.8 Tend to disagree 299 16.5 Strongly disagree 93 5.1

- No o$nion 43 2.4 -- 1812 100.0

No response 26 1838 /

There was generally strong support for this statement among all groups. The task force’s comments on the responses to Questions 12 through 15 are given following Question 15. No response 18

1838

Special Report -March 1991

13. Board distribution to Society mem- bership regarding: Area of interest.

Number Percent

Strongly agree 517 28.5 Tend to agree 964 53.2 Tend to disagree 213 11.8 Strongly disagree 82 4.5

- No o$rion 35 1.9 1811 100.0

No response 27 1838

There was generally strong support for this statement among all groups.

14. Board distribution to Society membership regarding: Canada vs. U.S. residency.

Number Percent

Strongly agree 22.2 Tend to agree zi: 54.4 Tend to disagree 274 15.1 Strongly disagree 90 No opinion

No response 29 1838

Again, strong support was indi- cated for this statement. Canadians (86%) supported it more strongly than Americans (74%).

9 15. Board distribution to Society

membership regarding: Years since Fellowship.

Number Percent

Strongly agree 55 3.0 Tend to agree 274 15.2 Tend to disagree 830 45.9 Strongly disagree 500 27.7 No opinion 149 8.2 --

1808 100.0 No response 30

1838 There was little overall support

for this suggestion. It is interesting that the strongest support was among older Fellows, government actuaries and academics - but it was never greater than 26%. Comments on Questions 12 through 15 The Committee on Elections tries to assure reasonable representation by area of interest and residence. and the Board may also designate up to three seats to assure such representation. There appears to be significant support for the committee to attempt some balance by type of employment (primarily insurance versus consulting. since these groups make up 82% of the Society membership). There is a prac- tical limit, however, to the number of representation factors the committee can take into account with only six

non-officer members of the Board elected each year. At this time, the task force has not recommended that the Boards right to designate seats be extended to type of employment. However, if a substantial imbalance were to arise in this area, such a recommendation may be warranted.

16. Representation of different groups on the Board should be accom- plished by the Committee on Elec- tions recommending appropriate proportional distribution and ensuring the second ballot contains at least the number of the candidates necessary to provide such distribution.

Number Percent

Strongly agree Tend to agree z-i

16.1 51.9

Tend to disagree 330 18.5 Strongly disagree 125 7.0 No opinion 117 6.5 --

1788 100.0 No response 50

1838 There was more than 60%

support for this position among most subgroups.

17. Representation of different groups on the Board should be accom- plished by the Board designating Board seats for specific subgroups, as it presently does, in addition to the steps in (16).

Number Percent

Strongly agree 157 8.8 Tend to agree 783 43.7 Tend to disagree 446 24.9 Strongly disagree 268 15.0 No opinion 136 7.6 --

1790 100.0 No response 48

1838 Support among subgroups was in

the 40s and 50s. In both Questions 16 and 17. support from academics was less than from the other subgroups.

A split in opinion similar to that exhibited by the membership has been experienced on the committee and the Board regarding designated Board seats. However, the same strong support exists for approximate repre- sentational distribution (at least by area of interest and country). We hope to achieve such distribution through recommendations and selection of candidates for the second ballot, but this does not always work. Since we cannot afford substantial under- representation of certain groups (e.g.. Canadians and pension actuaries), the task force has recommended that the

Board not only retain the right to designate seats, but also that both the Committee on Elections and the Board remain open to alternatives which could accomplish the same distribu- tion objective. 18. Representation of different

groups on the Board should be accomplished by having major groups of members by area of interest or residence elect their own representatives.

Number Percent

Strongly agree 126 7.1 Tend to agree 397 22.2 Tend to disagree 627 35.1 Strongly disagree 512 28.7 No opinion

No response 52 1838

This method, which would assure proportional representation, had the greatest support among our newest FSAs (38%). health (37%). and pension (33%) actuaries. However, it was opposed by a significant majority of all subgroups. Therefore, the task force is recommending that we continue with committee recommen- dations and, as necessary, designate Board seats to accomplish the distri- bution objective.

Of course, the designation of Board seats does not necessarily mean the top six vote-getters aren’t elected to the Board. In 1990, although the Board did designate two Board seats for pension actuaries, there were two pension actuaries in the top six. Thus the designation did not come into play, except as it may have influenced voters. 19. Any Fellow who volunteers to run

for the Board should be included on the first ballot.

Number Percent

Strongly agree 468 25.8 Tend to agree 758 41.8 Tend to disagree 435 24.0 Strongly disagree 81 4.5 No opinion

No response 24 1838

All subgroups except academics supported this statement. Although the current elections procedures require the Election Committee’s approval for a candidate to appear on the first ballot, the practice for the past few years has been to include any Fellow who volunteers. The task force

Special Report-March 1991

is recommending that the elections procedures be changed to conform to the current practice. 20. The reference list of possible

Board candidates provided for the first ballot is helpful.

Number Percent

Strongly agree 478 26.4 Tend to agree 1088 60.1 Tend to disagree 122 6.7 Strongly disagree 12 No opinion 110 it:

1810 1oo.o No response 28

1838 There was strong support from

all subnrouos.

21. The 1990 ballot had 109 members on the reference list for the Board of Governors. 1 believe this list:

Number Percent

Should be shortened 556 33.4

Is about the right length 1013 60.8

should be expanded

No response

98 5.9 1667 100.0

171 1838

There were no significant differ- ences by subgroups. We interpret the responses as saying that the lOOname list is acceptable, but should not be much longer.

22. The restriction that only Fellows who have gained experience with the issues and operations of the Society through service as an elected Board member, Secre- tary, or Treasurer are eligible to serve as Vice-President should be retained.

Number Percent

Strongly agree 463 25.5 Tend to agree 841 46.3 Tend to disagree 344 19.0 Strongly disagree 126 6.9 No opinion 41 2.3 - -

1815 100.0 No response 23

1838 Support among subgroups was

generally in the 60s and 70s.

23. The restriction that only Fellows who have served a term as Vice- President. Secretary or Treasurer are eligible to serve as President- Elect should be retained.

Number Percent

Strongly agree 573 31.4 Tend to agree 775 42.5 Tend to disagree 340 18.7 Strongly disagree 98 5.4 No opinion 37 2.0

1823 100.0 No response 15

1838 Support among subgroups was

generally in the 60s and 70s.

24. I prefer to have the Vice- Presidents elected by the Board and not the Fellows.

Number Percent

Strongly agree 51 Tend to agree 155 ii:; Tend to disagree 682 37.4 Strongly disagree 894 49.0 No opinion

No response 15 1838

All subgroups opposed this statement bv at least 82%.

25. Associates of 10 or more years should become eligible to vote in elections.

3 Number Percent

Strongly agree Tend to agree ;iY

15.4 37.7

Tend to disagree 362 19.8 Strongly disagree 438 24.0 No opinion - 57 3.1

1824 100.0 No response 14

1838 There was considerable difference

of opinion by subgroup. Sixty percent of 1983 or later FSAs supported this statement. At the other extreme, only 39% of the Canadians agreed.

Associates were not given an opportunity to respond to this survey However, we received several letters from long-term Associates questioning why they could not vote when they paid the same dues as Fellows. Granting any Associates the right to vote would require a constitutional amendment needfng the approval of 67% of the Fellows voting.

26. Associates of 10 or more years should become eligible to run for office.

Number Percent

Strongly agree 187 10.3 Tend to agree 476 26.1 Tend to disagree 495 27.2 Strongly disagree 598 32.8 No opinion

This proposal was generally not supported by any subgroup (50% of government and academic actuaries supported it). If the Constitution were amended to permit voting by long- term Associates, it is questionable whether they should or could be prohibited from running for office. This could be considered as part of the comprehensive study the task force has recommended. 27. Members of the Committee on

Elections should continue to be eligible to run for office.

Number Percent

Strongly agree 283 15.6 Tend to agree 937 51.5 Tend to disagree 323 17.8 Strongly disagree 139 7.6 No opinion 136 7.5

1818 100.0 No response 20

1838 At least 60% of all major sub-

groups agreed with this statement. Respondents appreciated the differ- ence between a Nominating Commit- tee. which should not nominate one of its own members. and the Society’s Committee on Elections, which does not nominate, but rather administers a set of procedures. Any time a deci- sion of the committee could affect a member of the committee, that member refrains from participation. Conclusion The Task Force and the Committee on Elections thank all members who took the time to answer the survey We appreciate the general vote of confi- dence displayed in our procedures and in the committee’s administration of these procedures in recent years. However, we must remain open to change. Without your thoughtful comments, we might not have made the generally well-received changes for the 1990 elections.

If you have any questions or comments about the survey itself, please address them to me. Sugges- tions about changes to the election procedures or to their admtnistratton should be directed to Ian Rolland. Chairperson of the Committee on Elec- tions. Both of us can be contacted at our Yearbook addresses.

No response

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