Updated: 
  October 10, 2006

October 22-25, 2006   |   Westin Mission Hills   |   Rancho Mirage, California
Return to the 2006 Annual Meeting Index

5:00 PM - 7:05 PM
SUNDAY SESSION

Experienced practitioners lead a review of government responses to the Gray Book questions. The panelists discuss the practical implications of the answers and any new information developed since the 2006 EA meeting.

7:00 – 8:00 AM
CONTINENTAL BREAKFAST

8:00 – 10:15 AM
GENERAL SESSION

Dr. Jay Olshansky, noted aging and demographic expert, discusses the idea that forecasts of life expectancy are an important component of public policy that influence the funding for, and solvency of, age-entitlement programs like Social Security and Medicare. The Social Security Administration (SSA) recently raised their estimates of how long Americans are going to live in the 21st century – a decision that will influence current and future tax rates. Current trends in obesity in the U.S., especially at younger ages, suggest that the SSA is overestimating the future life expectancy of the American population. In his recent manuscript he calculates how much life expectancy would rise if obesity was eliminated in the United States. He has found that life expectancy at birth would be higher by about one-half to three-fourths of a year in the absence of obesity. This is greater than the longevity gain that would occur with the elimination of all accidental mortality (encompassing mostly accidents, homicide, and suicide). The importance of this finding is that it is based on past trends in obesity, not on current trends. The latest data on obesity in the U.S. indicate that for children it is growing worse at a faster pace than in previous decades. If effective interventions are not developed soon, the negative effect of obesity on life expectancy is expected to rise to between 2-5 years or more in the next few decades. Dr. Olshansky explores the health and social consequences of individual and population aging and obesity, while examining the demographic and health implications on the population.

10:15 – 10:35 AM
REFRESHMENT BREAK

10:35 – 11:50 AM
SESSIONS – TRACK #1

With the first of the baby boomers retiring and the growing fiscal pressures on employers, the U.S. healthcare system is at a crossroad. What are the contributors to this crisis, and, left untouched, where will it go?

Consistent and proper claims handling practices can be difficult to implement in a fluid legal and regulatory environment. Learn how TPAs modify claims handling practices in response to law changes.

In advance of the release of the movie with the same name, come and learn about the rapidly increasing relevance of the international actuarial landscape. Actuarial practice is changing rapidly around the globe in both developed and developing nations. The panelist at this session explores the maturing world-wide actuarial community and identifies the key trends that matter most to actuaries practicing in North America. Past President of the International Actuarial Association, Jim MacGinnitie, leads this panel discussion and makes the case for why we all should be watching the world scene.

A panel of diversified professionals discuss the latest developments affecting retirement plans on the legislative, regulatory and legal fronts. Among the topics that may be covered are: 2006 Legislation, Guidance from the IRS, DOL, Treasury, and court decisions.

With new opportunities and new threats to the actuarial profession on several fronts, many of us are uncertain about what the future holds. We will discuss trends that are optimistic in nature, as well as some that are not, and also how to position your career to make the most of the trends. Come, hear, and participate in a discussion about the future of the profession and alternative career opportunities for actuaries, encompassing the life, health, P&C, and pension disciplines.

Speakers at this session acquaint you with the basics of this emerging practice area. Panelists provide a summary of the new FAS 123R, an introduction to options pricing models, and an overview of the critical actuarial aspects of this valuation process.

The winds of change are blowing with retirement in this country. Demographic changes, an increasing emphasis on DC plans, and potential changes to Social Security will undoubtedly change the meaning of “retirement.” This is the first of a series of sessions on the future of retirement. The speakers explore the socioeconomic impact of these trends in this session.

Larry Sher and Cecil Bykerk both members of the ASB present:

• Mr. Bykerk gives a presentation explaining the composition and the workings of that Board. The processes that the ASB uses is discussed along with critical issues that are currently facing the Board.
   

• Mr. Sher reviews the current ASOPs pointing out those that while not specifically pension related nonetheless have applicability to members in the pension field.
   

• Mr. Sher leads a discussion about the pension ASOPs currently being written or revised. During this discussion the template that is used for ASOPs is reviewed and he shows the use of ASOP 4 extensively during this part of the presentation.
   

• The session ends with a question and answer period during which individuals are encouraged to give their impressions of the ASOP process.
   

Luncheon – 12:05 - 2:00 PM
Guest Speaker: Jean Kilbourne, Ed.D.

Jean Kilbourne is internationally recognized for her pioneering work on alcohol and tobacco advertising and the image of women in advertising. Her films, slide lectures, and television appearances have been seen by millions of people throughout the world.

Her book, Can’t Buy My Love: How Advertising Changes the Way We Think and Feel, was called by Publishers Weekly, “a profound work that is required reading for informed consumers.” It won the Distinguished Publication Award from the Association for Women in Psychology. Award-winning films based on her lectures include Killing Us Softly, Spin the Bottle, and Slim Hopes.

She has been interviewed by many magazines and newspapers, and is a frequent guest on radio and television programs, including The Today Show, On the Record with Bob Costas, and The Oprah Winfrey Show.

Dr. Kilbourne has served as an advisor to the Surgeon General and has testified for the U.S. Congress. She is a Visiting Research Scholar at the Wellesley Centers for Women.

2:15 – 3:30 PM
SESSIONS – TRACK #2

Collateral requirements placed on self-insured clients often constrain the client’s growth. Learn why collateral is required, how its value is calculated and what options are available that affect the amount of collateral required.

Various efforts are underway by the government and the private sector in response to the evolving healthcare crisis. The President has laid groundwork for the government response and various employer and insurer initiatives are addressing the issue from a different perspective.

Pressures toward greater accounting volatility (mark-to-market, eliminating smoothing) may also drive plan design. Whether those designs are good for plan sponsors and participants is an important question. The panelists provide a survey of current methods (IAS, GASB, and FASB, including “Phase 1” of the current project) and discuss the ways that plans may be pressured to change.

The times are changing. In the old days your client had one DB plan and one DC plan covering all of their employees; you set up the DB plan so it would be a safe-harbor, the DC plan just had to pass the ADP/ACP test – no worries for nondiscrimination testing. Now they announced a “soft” freeze on the DB side and increased the match in the DC plan – what could be wrong about that?

Join in the discussion as two consulting actuaries present:

• Testing mechanics;

• Issues surrounding the testing;

• The added importance of nondiscrimination testing as our clients are changing their benefit platform; and

• Opportunities available within the regulations.

Alternative dispute resolution in general and arbitration in particular is becoming increasingly important. Disputes concerning pensions, healthcare, and other accounts reflecting actuarial estimates will create new demands for actuarial services in these areas. The speakers will provide background on the arbitration process, how arbitrations are organized, different professional roles that actuaries might be asked to fill in an arbitration setting, and other background on arbitrations.

Relative value regulations, retroactive annuity starting dates, and rethinking optional forms (i.e., 411(d)(6)). How do these relatively recent rules relate (or not relate)? What are responsible retirement consultants advising their clients to do? Speakers in this session examine alternatives and perhaps provide some reasonable recommendations or routes to consider to reach rational results.

The IRS has indicated that there will be a significant increase in the number of plan audits. EPTA is a broad-scope examination of tax-qualified retirement plans with 2,500 or more plan participants. What has been the experience to date under this format?

The recent low return world and changing views of risk and return have fueled a huge demand for alternative assets. The speaker in this session reviews alternative assets. What are the major classes? What are the risk/return profiles? What does the future hold for these asset classes?

3:30 – 3:50 PM
REFRESHMENT BREAK

3:50 – 5:05 PM
SESSIONS – TRACK #3

Accounting requirements and cost pressures continue to force employers to scale back or terminate their retiree medical programs, making certain workforce planning issues (e.g., mid-career hiring, retirement windows) more problematic. The speakers look at the products and services arising from Medicare Reform and the ways that employers are using them to keep their retiree medical programs alive.

How efficient have our catastrophe models proved in predicting recent catastrophes? Are the models flawed? Are they applied incorrectly? Or, are the models working well, but the actuaries using them applying faulty assumptions?

Multinational companies face numerous challenges from changing legislation, regulation and accounting rules around the world that affect their pension and benefit programs. This session reviews these changes and trends and discusses how actuaries and consultants can help these companies manage these changes.

This is an open forum to exchange information and ideas on topics of interest to actuaries who work with multiemployer pension plans. Topics of discussion may include underfunding issues, creative plan design, collective bargaining and withdrawal liability issues.

This session will build on Session 15 by reviewing different client relationships and different forms of client support that can arise in an arbitration.

Come and hear a company representative and their consulting actuary discuss the M&A life cycles, including differences for strategic and financial buyers.

FAS accounting for pension plans can become complex due to constant retirement plan changes. At this session, there is a discussion of situations that require further analysis of the accounting literature to identify a supportable accounting position.

In the ERISA compliance system, the plans are represented by two separate yet equally important groups: the IRS, who write the rules, and the actuaries, who have to deal with them. These are their stories. DA-DOINK! Come join us for the latest edition of this popular session that brings out the fine details in the rules that we deal with on a daily basis.

6:30 – 9:30 PM
MONDAY EVENING EVENT

This year the Monday Evening Event takes place on-site at the Westin Mission Hills Resort & Spa. Meeting attendees and their registered guests are treated to a casual event. You can meander around the grounds, dance, or just sit back, relax, and listen to music while enjoying the local cuisine.

This is a great opportunity to relax away from the meeting and spend social time with your peers. It will be an evening to remember!

Name Badges Required

7:00 – 8:00 AM
CONTINENTAL BREAKFAST

8:00 – 9:40 AM
SESSIONS – TRACK #4

The speakers discuss a case study where various HR and Finance objectives were analyzed based on currently available research and survey information. An actuary who is now on the corporate side of things gives a unique viewpoint on retirement plan design. The panelists review a business case which was made to prove that a combined DB/DC approach to retirement plan design makes sense. The 2005 Watson Wyatt Retirement Attitude Survey is reviewed and speakers analyze how the information was collected and then discuss the interesting results.

Recent scandals and litigation shine a bright light on the dark shadows of our profession. Can actuaries overcome the scandals? What steps is our profession taking to regain the public’s trust?

Does financial economics seem like a foreign language to you? Join us to see if our speakers have found a Rosetta Stone to translate the current regulatory definitions of liabilities into the language of financial economics. Our speakers discuss the principles of financial economics and how these principles can be integrated into your actuarial practice. Experienced practitioners discuss:

• How they have applied the concepts to practical problems;

• How traditional actuarial principles are affected;

• Practical limitations of these principles; and,

• How their clients have reacted to these concepts.

This is an open forum to exchange ideas, information and experiences on current topics of interest to actuaries who work with public employer retirement systems. Topics for discussion may include actuarial assumptions, plan design trends, and funding ratios.

Healthcare costs continues to increase more rapidly than salary and other employer costs. What can be done to control cost and mitigate future trends? Come and learn how one Fortune 500 retailer is successfully controlling costs in a high turnover retail environment by combining health promotions and disease management programs. Come and listen to a disease management specialist discuss recent programs that have been most successful. Also presenting is a PhD researcher on state of the art approaches to measuring savings and ROI – both from individual programs and for various combinations of programs.

There are many similarities between the U.S. and the U.K. in terms of the challenges faced by their respective pension systems. Both the U.S. and the U.K. face the problems of demographic change, declining DB plans, increasing reliance on DC arrangements, funding shortfalls in DB plans, calls for reforms of Social Security, and a need to address the issue of providing adequate old-age income through a combination of Social Security, DB and DC plans, and individual savings. The British government has recently published its white paper on Pension Reform; it sets out a new structure for the U.K. pensions system and establishes the foundation for a new and lasting consensus on a sustainable long-term pensions system that includes important reforms involving retirement age and mandatory savings arrangements.

The presenters discuss the recently issued draft report from CRUSAP and the implications for consulting actuaries. Come prepared to discuss, challenge, or even debate the report findings.

9:40 – 10:00 AM
REFRESHMENT BREAK

10:00 – 11:40 AM
SESSIONS – TRACK #5

Your client has decided to freeze their DB plan and adopt a DC only approach. Is it as simple as that? Come and hear the lessons learned by our speakers as they worked with their clients to analyze the alternatives and make the right decision on transition; communicate the change to employees; and manage the unique financial issues that result with a frozen plan.

Eager to comply with SOX requirements, clients identify their controls and subject those controls to independent audits. Learn from a risk manager and an actuary on how to identify, document, and test those controls.

A continuing discussion of the topics that did not fit into the earlier workshop on public employee retirement systems. Topics may include setting actuarial assumptions, DROP, GASB, and OPEB.

How do employee reactions to employer efforts to introduce consumerism mesh with carrier reported results? Carrier representatives and employers present what works and what doesn’t.

If you would like to enhance the quality of your work by discussing current professionalism topics with your learned peers, this session is for you. Come prepared to ask questions and share your opinions and ideas.

Forget U.S. GAAP, IFRS is becoming the standard in valuing and accounting for employee benefits in America and abroad. IAS 19 covers all benefit plans (but stock options), while U.S. GAAP includes as many as a dozen statements and opinions. From a stable P&L objection, the objective is full accrual/transparency globally.

Companies are placing increased importance on defined contribution plans and there’s been considerable activity on the DC front in recent months. Speakers at this session cover the hot topics impacting the design of plans including automation, Roth(k), the role of company stock, annuitization, disability protection, advice, and an update on recent legislative and regulatory activity. In addition, we’ll discuss several case studies of employers modifying their retirement program to focus on DC plans, including determining objectives, design alternatives, final design, and implications for the company and its employees.

NOON – 2:05 PM
TUESDAY AFTERNOON SESSION

In this session, the panel discusses how to apply the Code of Conduct to everyday activities. How can we better meet the needs of our publics? Case studies and possible responses are discussed.

2:30 – 3:45 PM
SPECIAL SESSION

Panelists discuss the new legislation and its implications for pension consultants, plan participants, and plan sponsors. Gray areas needing guidance from the IRS are also discussed.  This session is repeated on Wednesday at Session 49.

3:00 – 6:00 PM
TUESDAY AFTERNOON

SMALL FIRMS NETWORKING FORUM

There is a networking meeting hosted by the Conference’s Small Firms Networking Group from 3:00 to 6:00 PM. Anyone interested is invited to stop by, meet and discuss small firm issues, news, and outlooks.

7:00 – 7:30 AM
CONTINENTAL BREAKFAST

7:30 – 8:45 AM
SESSIONS – TRACK #6

Ensuring that attorneys, accountants and other tax professionals, including Enrolled Actuaries, adhere to professional standards and follow the law is one of the IRS’ top enforcement goals. Circular 230 provides Standards of Practice for written tax advice. Final regulations reflect current best practices for tax professionals. Speakers in this session explore Circular 230 and its applicability to actuaries.

For the first time, public employers will need to disclose retiree medical costs on an accrual basis. Nationwide liabilities for state and local governments are estimated to exceed a trillion dollars. In this session the panel explores the following issues:

• Differences in methodology between FAS 106, and GASB 43/45;

• Differences in public and private sector circumstances;

• Potential impact on plan design;

• Potential impact on credit ratings;

• Practical considerations regarding the timing of actuarial valuation results; and

• Disclosure issues, SEC issues, “draft” reports.

How are medical plans evolving to incorporate consumerism? How are account-based CDHPs changing? What do new players bring to the market?

Learn what changes actuaries must implement for 2007 when rendering loss reserve opinions.

Small employers have different goals and needs. These differences impact design, funding and communication of plans. IRC sections produce unique situations. Come and share your experiences with others who have a client, who is the employer and the primary participant.

Despite the movement away from defined benefit plans that we’ve seen this year, a DC only approach is not the answer for every company. Alternative defined benefit plan designs can mitigate many of the risks that employers are looking to eliminate. Our speakers share recent design success stories and they address the future, if any, of hybrid plan designs and what plan designs might take their place.

8:45 – 9:05 AM
REFRESHMENT BREAK

9:05 – 10:20 AM
SESSIONS – TRACK #7

Improvement of quality and reduction of waste is crucial to the control of health care costs. Listen to an actuary, a doctor, and a health information company executive discuss efforts to define, measure, promote, and incent quality in health care. Topics covered include: pay-for-performance, the challenges associated with quality measurement, and the impact of incentive programs on quality, practitioner behavior, and cost.

Panelists discuss the new legislation and its implications for pension consultants, plan participants, and plan sponsors. Gray areas needing guidance from the IRS are also discussed. This session is a repeat of the Tuesday Special Session.

Now that we have done some stock option valuations, what are the lessons learned? What do we wish we had thought of sooner? What is emerging experience? Presumes familiarity with “Stock Options for Dummies.”

IRIS tests can be used as early warning systems to identify potentially weak insurers. IRIS tests per se do not work well assessing solvency for pools. Are there other reasonable financial ratios applicable to pools to assess a pool’s financial condition?

Retirement obligations continue to impact corporate financial statements and are emerging as significant issues for many public entities. An equity and bond rating analyst discuss how retirement obligations impact their analysis.

The IRS has released the much anticipated, consolidated 415 guidance. The rules have been both liberalized and restricted. Speakers explore how to navigate the new rules.

10:20 – 10:40 AM
REFRESHMENT BREAK

10:40 – 11:55 AM
SESSIONS – TRACK #8

Participate in this roundtable discussion to identify challenges we face in serving clients today. This session also allows us to learn from one another and how to address those challenges.

We have been trying to manage Rx costs for years and trends have been moderating recently. What programs have worked and offer the best ROI? What will emerge in the next five years? Speakers in this session review programs that have been successful in reducing drug costs and look at upcoming problems and future initiatives.

Discussion of the practical issues and fairness and the impact of changing demographics on acceptance of phased retirement are the main topics for this session. The speakers at this session also review the regulatory issues arising from phased retirement and the experience to date of those organizations using phased retirement.

This is an excellent opportunity for attendees to ask questions and discuss important developments with IRS representatives. This is your chance to (possibly) get answers to the questions that have been troubling you.

The recent low return world and pension crisis have increased the focus on better matching assets and liabilities. Speakers in this session review the evolving role of asset liability management for pension funds.

The speakers shall attempt to answer the following:

• What are the latest ALM tools and techniques?

• Will companies radically alter asset liability mix over the next few years?

• What are the implications for capital markets?

Impact of final 409A regulations on deferred compensation and discussion of SEC limitations and reporting requirement regarding executive compensation are the main focus by the speakers in this session.

Return to the 2006 Annual Meeting Index

 
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