THE ACTUARIAL

AM ERICAN ,JCABEMY OF I CTUARIES

Focusing on the Increasing Costof Prescription Drugs

Tomczyk (right) answers a question

T he cost of providing pre-scription drug benefits is in-creasing more than 20 per-

cent a year for some employers, aprominent actuary told report-ers and congressional staff at aNovember 16 luncheon.The eventlaunched the Academy's new Cap-itol Hill health education series .

Academy member ThomasTomczyk, a senior consultant andactuary with William M. MercerInc., told attendees that prescrip-tion drug coverage accounts far 12

percent to 20 percent of an employer's health care costs . The rapid in-creases rescription drug costs result mostly from increased use, he said .Infladd the replacement of older, less expensive drugs with new-er, more costly versions are also factors, he added .

Tomczyk said consumers can reduce their drug costs by usingthe least expensive source (such as mail order) to fill their prescrip-tions . Employers, he noted, can use health care plan design, includingbenefit design and formularies, to better control their prescription drugcosts .

He also said costs are higher for plans that cover both retireesand current workers than for plans covering current workers alone .Only about 30 percent of large employers (those with 500 or moreworkers) provide health care coverage, including prescription drug cov-erage, to Medicare-eligible participants, he estimated, and increasingnumbers of employers are "getting out of the business"

Appearing before a standing-room-only audience, Tomczykspoke along with Academy member Gordon Trapnell, president ofActuarial Research Corp., and Dwight Bartlett, the Academy's seniorhealth policy fellow.

The November Capitol Hill briefing on the cost of prescriptiondrug benefits will be followed by a December session on the cost im-plications of patient protection legislation .The health education serieswill continue with other briefings in coming months .

'The series is among a number of health-related public policyinitiatives the Academy is now conducting. Medicare reform proposalswill be addressed in three monographs scheduled to be published inJanuary. The monographs will cover options for prescription drug cov-erage, structural issues involving Medicare's long-term solvency, andoptions for improving Medicare's efficiency by using private-sectorcompetition techniques and market forces.

The Academy will also present a Capitol Hill forum sponsored bymembers of Congress on February 10 that will include a panel discus-sion on Medicare reform issues . Panelists will include leading actuariesand policy-makers, including prominent health policy expert DeborahSteelman, a presidential adviser in the Bush and Reagan administra-tions .

For information or an invitation to an upcoming event in theseries, contact Health Policy Analyst Angela Heim at 202-785-6921(heimj eter@actuary. org) .

Kern Takes Presidencyat San Francisco Meeting

iting professionalism education and expanded mem-

bership among his chief goals, Stephen R . Kern as-

sumed the Academy presidency October 18 at the

Academy's annual meeting in San Francisco . "The

Academy has a special responsibility for actuarial professionalism,"

Kern said in his inaugural address, "and education on the im-

port e of professional standards is a key priorityKern, an enrolled actuary and a former pres- to leaders in business and goveRent ."

ident of the American Society of Pension Actuaries,will carry a personalized recruitment message to hispractice area. Membershipin the my is a hall-mark professionalactuary, he noted, addingthat he would emphasizethat conviction to non-member EAs and otherqualified actuaries duringhis presidency.

Public Policy WorkPublic policy will also re-main an important part ofthe Academy mission ."The actuarial professionhas an important niche tofill in our nation's publicpolicy debates;' Kern re-minded members, "TheAcademy's public pol-icy work benefits thepublic and benefits theprofession as well by

In his valedictory speech, 1999 PresidentRichard S. Robertson called for expanded Academy

involvement at the state and lo-cal levels. @~i r success at thefederal le s an importantachievement ;" Robertson said."Increasingly in our country,however, the public policy ini-tiative is passing to state and lo-cal governments . . . . Developingeffective state and local programswill be a major task. Substantialvolunteer and staff resources willbe required . We might consid-er establishing two or three pro-totype chapters in the states .These chapters would serve asthe eyes and ears of theAcademy, alerting the professionto proposed laws and regulations

that would affect actuarialpractice."

Robertson praised thework of the Society ofActuaries/Casualty Actuarial

1999Academy President Richard S. Robertson and 2000Academy President Stephen A Kern sharing the podiumafter Kem gave Robertson a pair of mandarin figurines,the traditional giftfor the outgoing Academy president

demonstrating that actuarial expertise can solve manyproblems beyond the traditional role of the actuary.The Academy will continue to look for new op-portunities to bring actuarial expertise to public pol-icy-makers and to present the skills of our members

Society Joint Committee on Minority Recruitment,and he urged Academy members to support thecommittee by buying books and CDs from ama-zon.com through the Contingencies Web site,www contingencies .org.

continued on page 3

• Noniutate 1disti gu1shed col-league for next yea;' Robert J. MyersPublic Service AwatA Get informationand the e-mail; addreo for nominationsdiii. the "What's New'' 4eetion of the, Web

Standard of Pr~aetic~. ASOP 34, Actuarial

site (wwwactuary.org/wl ataiewhtm) .• Read the 'rlewe'st Actuarial

Concerning Retirement Plan Be,hefits inDomestic Relrttions Actions, is dbline :: atw ww actuaryors/standa rd/htm !Find out about the Academy's newest

health policy initiative . For informationon the Capitol Hill e ucatio4 i series,take a' look at the: "What's New" sec-w actuary ors/.whaCnew ht m) ,

Public ServiceNominees SoughtThe Academy invites members tosuggest nominees for the 2000Robert J . Myers Public ServiceAward. Every year, the Academypresents the award to an actuarywho has made an outstandingcontribution to the public good.

Nominationsshould include theactuary's name, abrief explanationof how the actu-ary's practice hascontributed to thepublic good, and

1999 HonoreeRobert Bailey

your name and telephone num-ber so you can be reached for ad-ditional information if needed.

This month's Update mailingcontains a nomination card for the2000 award that you may fillin and mail to the Academy. Alter-natively, you may e-mail a nomi-nation to Academy staff memberTom Griffin at griffin@actuaryorg.The deadline for nominations isMarch 1, 2000 .

Named for mer chief ac-tuary of the ooial SecurityAdministration, the Myers awardmay recognize a single noteworthypublic service acareer of public

evement or aIce contribu-

tions. It has honored five distin-guished practitioners since 1995 .

Nominees can be current orformer government employees,employees of entities that exist pri-marily to support the mission ofgovernment, or unpaid volunteerswho serve philanthropic organi--zations.Actuarial work performedby paid consultants, members ofactuarial committees or officers ofactuarial organizations is not eli-gible for consideration.

The 1999 recipient of theMyers Award is Robert A. Bailey,who served as Michigan's firstdeputy insurance conunisioner.

For further information, con-tact Griffin at 202-785-7860 orgriffin@actuaryorg.

Grants for SSResearchersThe Center for RetirementResearch at Boston College is so-

liciting proposals for the StevenH. Sandell Grant Program forJunior Scholars in RetirementResearch.The program promotesresearch on retirement issues byjunior scholars in a wide varietyof academic disciplines, includingactuarial science .

The program is funded by a

grant from the Social SecurityAdministration (SSA) . Successfulapplicants will be eligible to ap-ply for access to restricted data setsand will present their results to theSSA .

Each grant awarded will be upto $25,000.The deadline for pro-posals is January 31, 2000 .Awardswill be made in March and finalprojects are required to be com-pleted by March 31, 2001 .

The program gives priority toprojects on:

• the impact of Social Securityprogram rules on individuals' workand retirement decisions.

• the macroecononvc and fi-nancial effects of changes in SocialSecurity policy on national sav-ing, investment, and economicgrowth .

• the implications of trends inSocial Security, private pensions,and private saving for future re-tirement income security .

• the interactions of SocialSecurity with other public andprivate programs .

• international research on pen-sion and Social Security issues.

• distributional effects of pro-posed Social Security reforms .

• the impact of demographic and'social change on Social Security.

Grants are not intended to funddissertation research . A principalinvestigator must have completeda doctorate in a related discipline,or a comparable professional cer-tification, and must be either anontenured (or junior) scholar ora senior scholar working in a newarea.

More information is availablefrom Annika Sunden (617-552-1459, sundena@bc.edu) .

Concerns AboutDisaster BillThe Academy stands ready to re-sume efforts to make Congressaware of the potential conflict be-tween "affordability" considera-tions and actuarial soundness in aproposed federal disaster-reinsur-ance program, says Wayne Fisher,chairperson of the Academy'sCatastrophe Insurance WorkingGroup.

In a November 2 letter writ-ten on the Academy's behalf,Fisher urged the House BankingCommittee to make a distinctionbetween "affordability" and actu-arial soundness in the Home--owner's Insurance Availability Actof 1999 (H.R. 21).The bill wouldset up a program in which theTreasury Department would sellreinsurance directly to state disas-

ter insurance programs and wouldauction reinsurance contracts toprivate carriers and others . Acommission would be created toanalyze loss costs and pricing.

The legislation's goal is to im-prove the ability of eligible statefunds and the property insuranceindustry to absorb a massive cata-strophe (such as 1992's HurricaneAndrew) without excessive fed-eral involvement in the market . Itaims to create a federal reinsur-ance program founded on "actu-arially sound principles"; theseprinciples would apply to rate-making, reflecting the bill's intentto minimize the impact on theTreasury and the marketplace .However, it also makes several ref-erences to the "affordability" of

underlying coverage ."Introduction of an affordabil-

ity consideration may potentiallybe at odds with the stated intentof the bill to have actuariallysound rates," the Academy's lettersaid. It suggested that the com-mittee consider eliminating thereferences to affordability.Alternatively, the letter said, Con-gress could clarify the legislation'sintent and, if a subsidy would berequired to cover the differencebetween actuarially sound and af-fordable rates, the amount andsource of the subsidy should bemade explicit .

The legislation, sponsored byRep. Rick Lazio (R-N.Y.), wasapproved by the Banking Com-mittee November 10 in a biparti-

san vote of 34-18 . Congress ad-journed before the full Housecould vote on the bill . But if nec-essary, Fisher promised, theAcademy will renew its efforts toeducate policy-makers about theactuarial issues involved.

In addition to addressing theaffordability issue, the Academyurged that the proposed. commis-sion include several professionalactuaries, with "professional ac-tuary" defined as an Academymember.

"The Academy represents ac-tuaries in the public arena, andmembership in the Academy isindicative of professionalism andhigh standards for all U.S . actuar-ies," said Gordon Hay, a memberof the working group.

Opportunities for the Professionn October 18, r had the honor to ac-

cept the gavel that symbolizes the

Academy presidency.The actuarial pro-

fession has an important niche to fill

in our nation's public policy debates, and over

the past fe years the Academy has ensured that

our voice heard with increasing resonance .

The Academy's public policy work clearly benefits the public-by-making sure-thatpolicy-makers receiveclear and impartial actuarial analysis of public issues. Our work benefits the profession as well, by demonstratingthat actuarial se can solve many problems beyond the traditional role of the actuary :The ademy willcontinue to lo new opportunities to bring actuarial expertise to public policy-makers an ent theskills of our members to leaders in business and government .

The Academy also has a special responsibility for actuarial professionalism . Education on the importanceof professional standards is a key priority. Over the next year, the Academy will take on the new challenge oforganizing an educational seminar on US. life and health insurance laws, regulations, and accounting re-quirements for life and health annual statement opinions covered by the specific qualification standards of theQualification Standards for Prescribed Statements ofActuarial Opinion .

The seminar will permit fellows educated under the Society of Actuaries' new, more international syllabusto demonstrate by examination their qualifications to sign life and health annual statement opinions .The sem-inar may also be useful to actuaries who wish to move into life and health annual statement practice and toforeign actuaries wishing to begin life and health practice in the United States. Information about the sem-inar, including location, curriculum and cost, will be made available to all actuaries as soon as plans are finalized .

Other opportunities for the Academy to inform our members about actuarial professionalism may also beon the horizon. The Academy is exploring new ways to work with our sister organizations to offer ourmembers information on current developments in law and regulation and to help members learn moreabout their obligations under the actuarial profession's Code of Professional Conduct, Actuarial Standards ofPractice and qualification standards .The desired end result would be improved quality of practice and serviceto members of the profession .

In the same vein, I would like to see the Academy serve our members by forging a closer relationship withactuarial clubs and regional affiliates around the country. As the Academy explores how to better meet pub-lic policy challenges at the state and local levels, we plan to use the educational forums offered by the clubsto bring our message to actuaries who have not yet participated in our work . And even more important, weintend to seek the input of those actuaries about our activities and listen to their advice.

As we move into the new century, I would like to see every actuary in the United States be a part of theAcademy. I believe that membership in the Academy is one of the true hallmarks of a professional actuary and,as an enrolled actuary, this is a message that I will take to my fellow EAs over the year of my presidency.

Under my direction, the staff has already began a campaign encouraging nonmember EAs to consider thebenefits of Academy membership . Each targeted individual will receive a series of mailings, includingContingencies magazine, the Enrolled Actuaries Report and Actuarial Update newsletters, a membership applica-tion and a personal follow-up from me or another Academy member. In addition, the Membership Committeewill reach out to other nonmember actuaries and encourage them to join the Academy. As a result of this pro-gram, we hope to see a substantial number of actuaries join our ranks .

Over the past four years as secretary-treasurer and president-elect, I have gained enormous respect for theAcademy its staff and its accomplishments . All actuaries owe thanks to the more than 400 volunteers who makeour success possible. Let me invite each actuary to join in the effort to strengthen our profession by contributingyour talents to the work of the Academy .

STEPHEN R. KERN IS PRESIDENT OF THE ACADEMY

The 1999-2000 Academy Board of Directors

Stephen R. KernPresident

Robert A. AnkerVice President

Linda L Bell

Patrick J . Grannen

Robert J. Rlort

Lawrence A.JohansenPresident-Elect

Richard S. Robertsonimmediate Past President

Barbara J. Laatzanheiser Daniel d McCartiryVice President Vice President

Robert L Brown

Larry M. Gorsid

George J. Taylor

Cecil D. Bykerk

Curds E Huntington

Patricia A. Toulel

Allan M . KsaimanPast President

James J. MurphyVice President

A. Noncan Crowder ID

Jan A. Lammele

Michael L Tcathman

James F. RolskytlSe"et"-Trere r

Benne C. NavakVice President

Richard S. Foster

John P. Parks

Stmaley B . Tulin

James E TenpinVice President

Alice H . Cannon

Peter L Perldns

William C. Weiler

Former Char. . of ABGD Flooredenlty K. Knowlton "deserves the profession's w hearted thanks" for

aking the Actuarial Board for Counseling O ad Discipline better

established and better understood, according to former Academy

President Richard S . Robertson.And as a token of the profession's grati-

tude, Robertson presented Knowlton withthe 1999 Jarvis Farley Service Award at theAcademy's October meeting.The Academybestows the award every year to recognizesomeone who hae made a significant volun-teer contribution to the actuarial profession .

Knowlton is leaving theABCD at the endof this year after devoting 6 years to it, in-cluding 3 years (1996-1998) as chairperson.During the award ceremony, Robertsonthanked Knowlton for working "virtually

full time" on behalf of the ABCD duringthose years and praised him for helping putthe ABCD "on a sound footing:'

Robertson noted that Knowlton has alsoserved as a member of the Society ofActu-aries Education and Examination Comm-ittee, as a director of the Conference ofConsulting Actuaries, and as president of theSoutheastern Actuaries Club. But his workwith the ABCD was the principal reasonKnowlton was chosen to receive the JarvisFarley award, Robertson said .

`It Was a Studebaker World'

H enry K. Knowlton, the recipientof the Academy's 1999 JarvisFarley Service Award, has seen ac-tuarial professionalism make dra-

matic advances during his four-decade career.Knowlton was a practicing actuary from

1953 until 1992, working during many ofthose years for Tillinghast/Towers Perrin inAtlanta and Jacksonville, Fla . During the last 6years, lie has contributed much of his time tothe Actuarial Board for Counseling andDiscipline (ABCD), with his ABCD serviceincluding a 3-year term as chairperson.

During the late 1950s, Knowlton recalledin a recent interview with the Update, "therewasn't a code of conduct, there were no actu-arial standards of practice, and there were noqualification guidelines."

"Anybody could do anything,' he said ."It

was a different world. It was a Studebakerworld:'

However, Knowlton added, "the things ac-tuaries were doing were by and large muchless complex than they are now. So I thinkprofessionalism has grown as the complexityhas grown."

Asked to look back at his term as ABCDchairperson, Knowlton said the board's mostsignificant accomplishment during that timewas its work to "make the rules and proce-dures less legalistic :"

A major part of that effort, he said, waschanging the rules so that actuaries appear-ing before the board for disciplinary hearingswere required to speak for themselves ratherthan allowing attorneys to speak for them ifthey chose-The change was also made for theboard itself: On both sides, attorneys can now

Robertson cited the mockABCD hearings institutedunder Knowltorfs leadershipthat have been held at actu-arial meetings and have "gonea long way to improve un-

Kern, continuedfrom page 1

Robertson also saluted two former SocialSecurity Administration chief actuaries for their recentad in Contingencies magazine. "Robert J. Myers andHaeworth Robertson put aside longstanding differ-ences to promote actuaries ' contributions to publicpolicy in an advertisement for the Academy;" he said ."Bob and Haeworth each deserve our thanks fortheir achievements , as well as for their good humor inposing for this ad ."

New Directors ElectedThe Academy's 1999 annual meeting was held inconjunction with the SOA's 50th anniversary cele-bration. The Academy meeting marked the officialbeginning of the terms of office of 2000 President-Elect Larry Johansen and Vice Presidents BarbaraLautzenheiser, Donna Novak, and James Turpin .Also,Academy members in attendance approved thenominations of Cecil Bykerk and Larry Gorski toserve three-year terms on the Board of Directors .(Accompanying this article are the names and photosof the entire board .)

The meeting concluded with the luncheonaddress of political commentator Fred Barnes, exec-utive editor of the Weekly Standard. He said that the1994 elections marked the beginning of a new era ofconservative political dominance, following the liberalera of 1932--80 and the transition period of 1980-94 .The United States, he said, is once again becoming asociety based on individual responsibility, resemblingthe frontier nation described by Alexis de Toquevillein the 1830s .

Henry Knowlton, left; receives FarleyAward from Richard Robertson

derstanding of the ABCD's role." He praisedKnowlton for improving communications,and he noted a number of other efforts, in-cluding Knowlton's supervising the revisionof rules of procedure that "have further im-proved the ABCD's reputation for fairness ."

give legal advice but cannot act as spokes-persons.

The reasoning behind the change was thatactuaries are the best ones to understand andexplain their work.

"I would no more expect a lawyer to beable to explain an actuary's work than I wouldexpect the architect next door to be able to,"Knowlton said. "If an actuary wants to speakfor himself and is willing to, he can do a muchbetter job than anybody else :'

Also, Knowlton said, "there's every advan-tage to cooperating" with the board during adisciplinary hearing .

As an example, he cited the case of one ac-tuary who came before the ABCD and quick-ly admitted that he had made a mistake. Theactuary also said he had taken steps to addressthe problem, and the ABCD determined that

Robertson also compared Knowlton toFarley, saying both had "worked long hours tostrengthen actuarial professionalism:' Farley,for whom the award is named, in the 1970swas an early leader in the development ofactuarial standards of practice .

he had indeed taken those steps. "We votedto counsel him rather than recommend pub-lic discipline - which could very easily havegone the other way had he not cooperatedwith the ABCD," Knowlton said .

Looking to the future, Knowlton predict-ed that finding ways to handle disciplinaryquestions involving large firms will be one ofthe biggest challenges the ABCD faces in com-ing years .

"We have very large firms that are run asvery large businesses, and yet our disciplinaryrules and procedures are written as if we'redealing with individuals one at a time," hesaid."There's no procedure for us to investigatea firm or a firm's practices instead of oneperson's actions -- but there are going to bethings that happen that involve a number ofactuaries at a single firm ."

0

NAFTA Application Moves Forwardt -I r- nder a proposed amendment to the North American Free

Trade Agreement (NAFTA) that is nearing final approvalfrom federal trade officials , it will be easier for actuariesto cross national borders to perform professional services in

Canada, Mexico and the United States .The Academy, in conjunction with the leadership of the American

Society of Pension Actuaries , the Casualty Actuarial Society, theConference of Consulting Actuaries, and the Society of Actuaries,has applied to the United States trade representative for inclusion

Pension `Wear-Away' Letter SentIn a letter sent to Sen . Edward Kennedy (D-Mass,) on November 8,jthe Pensiout l'rxctce C-nmcil'exptessed ncern M r' a pension 1provision in Kennedy s amendment to Senate bankmpt,,~_ reformillation' S; 625 _

e I ent,w e t iirainv , t creasing the mininaunu wage, ituchuded a provision tat would prohibit "wear-away"(benefit pl ateau).The impetis' for that provision is the recent contraversy over wear-away situations that can occur when a traditional

pension plan is converted to a cash balance plan .'The Academy noted that the provision could have urtintende

consegiieilces or edhenefit p~~usion system . In prrticu-t~lg ~''-IC~FSl3'Ct'CHl-F'6Otl~(1Ld~1C'~Gt <Tt1t1Tr1T?eI't3~J

nations beyond cash balance coneersiam -- such as mergers andacquisitions - in which employers use wear-away for adniinis .=trative simplicity, not to reduce benefits .

`.l he Kennedy amendment was defeated in a 50-48 voce . Similarwear-4M, le~iorl ispected n resurfnc~ ,n C cIngr nPYr Par

under Schedule 16 of NAFTA.The application, when granted, is "tended to create better cross-border access for actuaries betweenNorth American countries.The Canadian Institute ofActuaries andthe Colegio Nac Tonal de Actuarios (in conjunction with the leader-ship of the Associacion Mexicana de Actuarios Associacion and theMexicana de Actuaries Consultores) have also worked with the traderepresentatives of their countries to win approval of the NorthAmerican actuarial profession's application .

Under the proposal, temporary entry in the three NAFTA coun-tries would be easier for actuaries who meet one of two criteria .A per-son with a bachelor's or licenciatura degree in actuarial science wouldbe eligible for temporary entry, as would a person who had satisfied"the necessary requirements to be recognized by a professional actu-arial association or society" in one of the NAFTA countries . UnderNAFTA, the Academy and its sister organizations in Canada, Mexicoand the United States would be identified as "professional actuarial or-ganizations or societies."

The application, which has been in the works for some time, re-cently received a major boost when it was approved by a temporaryworking group of trade representatives from the three countries .

"I'm very pleased that the trade representatives have reachedagreement,"said Academy President Steve Kern ."'I'bis represents a sig-nificant step forward ." Kern noted, however, that the proposal muststill make its way through the regulatory adoption process in eachof the NAFTA countries. In the United States, that process will inclpublication in the Federal Register.

Final approval of the profession's application is anticipated in2000, said Rick Lawson, the Academy's executive director. But headded that the regulatory approval process can be unpredictable, es-pecially when three governments are involved,

The ABCD's Commitment to High StandardsNote: An edited version of the following letter was published November 26 bythe Wall Street journal . The letter, from Henry K. Knowlton, vice chair-person of the Actuarial Boardfor Counseling and Discipline (ABC))),responded to the newspaper's October 29 article reporting that the LaborDepartment planned to examine actuarial frtnrs' role in helping employersconvert to cash balance pension plansfrom traditional plans. The articlereported thatfrnrn its 1992 inception through 1998, theABCD had disciplined"only "seven actuaries.

n her October 29 article in the Wall StreetJournal, Ellen Schultzmade reference to the Actuarial Board for Counseling andDiscipline. As a member and former chairperson of the ABCD,I was more than disappointed by the dismissive tone of Ms .

Schultz's comments.The ABCD is a volunteer board that takes its responsibilities to

the actuarial profession and the public very seriously.The number ofactuaries who have been disciplined may seem relatively small in theabstract, but it must be remembered that the actuarial profession itself

is minuscule compared to other professions . There are fewer than18,000 actuaries in the entire United States . By contrast , there aremore than 40,000 lawyers admitted to practice law in the District ofColumbia alone.Ms. Schultz's article fails to report that , from its inception, the

ABCD has considered more than 150 cases that could have resulted indisciplinary action. Where the complaints were without merit, theABCD dismissed them. In many cases, however, the ABCD offered spe-cific guidance directing actuaries to improve their practices . Ms. Schultzalso ignores the more than 100 instances where conscientious actuar-ies have voluntarily contacted the ABCD requesting guidance on howto deal with thorny professional issues .

The ABCD is committed to maintaining the high standardsconduct, practice and qualification of the actuarial profession . I wourge Ms. Schultz not to be so quick to dismiss the valuable service thatthe ABCD provides to the actuarial profession and the public.

HENRY K. KNOWLTON,VICB C A1RPURSONACTUARIAL BOARD FOR COUNSELING AND DISCIPLINE

1

ENTStep en R..Kern

• PItrsmnNP-EtlecrLawrence A . Johansen

SEciu_.TARY-TReAS ERJames E Reiskytl

VICE PRESIDENTSRobert A. AnkerBarbara J. LautzenheiserDaniel J. McCarthyJames J. MurphyDonna C. NovakJames E:'Ihrpin

EXECUTIVE DutECTORRichardQ.X.awson-

Dmscroti OFCOMxtmnCA'noNsKen 1Grehbiel

ASSISTANT DIRECTOR

FOR PUBLICATLONS

Steven E Sullivan

rEDITORIAL. ADVISORY BomwWilliam Carroll

Rade Musulin

MANAGING EDITORAnne Richardsoneditor@actuaryorg2027857864

- =£ fNSUn nNGETh1 DIt -Jeffrey Speicher

PROAUcrION ASSISTANT"Shawn Taylor

EXECUTIVE OFFICE'The American Academy ofActuaries1100 Seventeenth Street NWSeventh ,FloorWashington, DC 20036102=Facsimile 202 872 1948wwwactuaryorg

Statements of fact and opinion in this publication,cktdinged rials and le nto Jlreeditor,aremade

on_tr~ab~g-srfti~~iir~al~Ieanctt~a rrot=-essaril -imply or represent the position of-the 'icanAcademy of Actuaries, the editors or ryeers of the Academy.

.O1999he AAtfCtiCanAWdmy dfAct-W±W

All Rights ,Reserved.

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ra7redhle t i 6r1 1ai sIff gas= ' Iuc ,pul Draft s ASR -No . 1134, Actmial Prime 9IIR2rmngR rer :NO Ill iomesfr"c t at urn s ActiOAS- way

Kernlna a incto ademy P 11-sV fli

Pursuing Oppartunities for t Profession

Service Award Honors Knowlton

Crossinthe Border_ ---