CIA Annual Meeting

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CIA Annual Meeting

• LOOKING BACKfocused on the future

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

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

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

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

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

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• Recommendation 3-1
• Amend SOP to require disclosure in report of
• - clients involvement in selection of
  assumptions/methods- relevant
  investment/benefit/funding policies
• - justification for each assumption.

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

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

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

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

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

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

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• Recommendation 4-3
• Amend SOP (or educational note) to provide more
  guidance for review work including
• - minimum standards for external peer review
• - items to be included in terms of reference
• - disclosure if terms of reference dont meet
  minimum standards.

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

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• Your feedback please!