NAAC Policy Manual
North American Actuarial Council Working Agreement
Effective Date: February 18, 2006
This Working Agreement sets forth the cooperative goals of the American Academy of Actuaries
(Academy), the American Society of Pension Professionals and Actuaries (ASPPA), the Asociacion
Mexicana de Actuarios (AMA), the Asociacion Mexicana de Actuarios Consultores (AMAC), the Canadian
Institute of Actuaries (CIA), the Casualty Actuarial Society (CAS), the Colegio Nacional de Actuarios
(CONAC), the Conference of Consulting Actuaries (CCA), and the Society of Actuaries (SOA),
collectively referred to as the Participating Organizations.
In order to: foster cooperation among the Participating Organizations consistent with their individual
missions as described below; eliminate unnecessary duplication of effort and activity among the
Participating Organizations (thereby maximizing the efficient use of the Participating Organizations'
resources); encourage mutual recognition and cross-border discipline; and enhance the image, growth
and reputation of the actuarial profession in North America, the Participating Organizations agree to
participate in the North American Actuarial Council ("NAAC") as described in this Working Agreement.
The Participating Organizations agree to broadly publicize this Agreement (e.g., publish it in their
Yearbooks and on their web sites).
I. Missions of the Participating Organizations
Each of the Participating Organizations operates to further its self-identified mission. The
missions of the Participating Organizations may be broadly summarized as follows:
Academy: nationally and internationally, to represent the entire U.S. actuarial profession in the
formulation of public policy and support U.S. actuaries in fulfilling their related responsibilities; to
encourage the professionalism of U.S. actuaries by fostering the establishment, communication,
maintenance and enforcement of high professional standards; and to represent and advance the
U.S. actuarial profession and increase the public's recognition of the U.S. actuarial profession's
value.
ASPPA: to educate all retirement plan professionals and to preserve and enhance the employerbased
retirement system as an essential part of a national retirement income policy in the United
States.
AMA: to support the Mexican actuarial profession in maintaining high standards of professional
integrity and technical expertise and, thereby, promote the dignity of the profession and enhance
the public's recognition of the profession's value.
AMAC: to advance the quality of actuarial consulting practice in Mexico by providing continuing
education and business support services to Mexican actuaries in consulting practice.
CIA: as the national organization of the Canadian actuarial profession, to serve the public through
the provision by the profession of actuarial services and advice of the highest quality by:
representing the Canadian actuarial profession in the formulation of public policy; promoting the
advancement of actuarial science and sponsoring programs for the education and qualification of
CIA members and prospective members; ensuring that actuarial services provided by its
members meet accepted professional standards; and assisting actuaries in Canada in the
discharge of their professional responsibilities.
CAS: to advance the body of knowledge of actuarial science applied to property, casualty, and
similar risk exposures by: providing basic and continuing education; conducting research;
establishing and maintaining high standards of conduct and competence for its members;
communicating with the publics affected by insurance; and increasing the awareness of actuarial
science.
CONAC: to serve as the professional membership organization for all the actuaries licensed to
practice in Mexico, regardless of their specialty area; to advise the Mexican government
concerning public policy matters with actuarial implications; and to foster actuarial education and
research in Mexico.
CONFERENCE: to advance the quality of actuarial consulting practice, support the needs of
consulting actuaries, and represent their interests.
SoA: The Society of Actuaries is an educational, research, and professional organization
dedicated to serving the public and Society members. Its mission is to advance actuarial
knowledge and to enhance the ability of actuaries to provide expert advice and relevant solutions
for financial, business, and societal problems involving uncertain future events. The vision of the
Society of Actuaries is for actuaries to be recognized as the leading professionals in the modeling
and management of financial risk and contingent events. The Society also works to anticipate
future member needs through environmental scanning, strategic planning, and dynamic strategy
management.
Each of the Participating Organizations takes whatever measures it deems necessary,
appropriate, or desirable to attract, recruit and serve its individual members. This agreement is
not intended, nor should it be construed, to restrict in any way the independent business
decisions of the Participating Organizations but, rather, to document the Participating
Organizations' desire to cooperate in the service of the North American actuarial profession
consistent with their own missions and purposes.
II. The North American Actuarial Council
A. Purpose of NAAC
The Participating Organizations jointly acknowledge that:
- The operating environments in the three North American countries are very different,
- The Participating Organizations' members expect the organizations to leverage resources and take appropriate advantage of synergies, and
- Increased information sharing and dialogue among the Participating Organizations has the potential to yield collective insights valuable to each organization.
Accordingly, the Participating Organizations define NAAC's purpose as follows:
- NAAC is to be a catalyst for dialogue on key issues facing the North American actuarial profession.
- NAAC is to be a facilitator of opportunities for leveraging of resources across organizations.
- NAAC is to be a source of knowledge in identifying conditions, trends, assumptions, and key issues affecting the North American actuarial profession and benchmarking best practices among member organizations.
- NAAC is to be a forum for information sharing on current and potential activities among the North American actuarial organizations.
- NAAC is to be a forum where networking occurs and camaraderie is built among the eaders of the North American actuarial organizations.
In fulfilling its purpose, NAAC shall abide by the following guiding principles:
- The conditions, cultures and perspectives of each individual country and their member organizations will be respected and valued.
- The autonomy of each member organization to pursue its mission and purpose will be preserved.
- The public interest will always be a primary consideration.
- The best interests of the profession will always be considered.
B. Members
The North American Actuarial Council (NAAC) is comprised of up to two officers of each
Participating Organization. One of the two officers shall be the President of the Participating
Organization. The other officer shall be the President-Elect of the Participating Organization
unless the Participating Organization appoints another officer it deems more appropriate. If a
designated officer of a Participating Organization is unable to attend a meeting of NAAC, the
Participating Organization may designate another appropriate representative to attend the
meeting in that officer's stead. The Executive Directors of the Participating Organizations attend
and participate in NAAC meetings, but are not members of NAAC and do not vote.
Additional organizations may participate in NAAC at the invitation of the Participating
Organizations.
C. Meetings
NAAC will meet in person up to three times a year. Arrangements for the in-person meetings
(e.g., location and chairing the local meeting) shall be the responsibility of the host country. The
Participating Organizations shall decide how to coordinate the agenda and provide meeting
materials for the following year no later than at their Fall meeting each year. The Participating
Organizations agree to share equally the costs to perform this support function, with the Mexican
organizations counting as one organization.
D. Legal
When appropriate, the Academy also agrees to make its legal counsel available to NAAC; and to
coordinate, upon request, with counsel for the CIA and the Mexican organizations.
III. Communications Among the Participating Organizations
- Each Participating Organization shall share items of mutual interest, including items distributed
to the Participating Organization's board members (subject to board approval), with the other
members of NAAC as soon as feasible after the items are available (electronically through the
NAAC list server if appropriate). This sharing includes the Participating Organization's
yearbook, newsletters, and board minutes, in addition to other important documents or
significant studies that would be of value to the wider audience. This sharing does not apply to
any item that a Participating Organization considers to be confidential.
- Each Participating Organization shall endeavor to inform each of the other Participating
Organizations on a timely basis of any of its actions that are expected to have a significant
effect on one or more of the other Participating Organizations or their members.
- Each Participating Organization shall invite the Members of NAAC to all general membership
meetings, with the registration fee waived.
By our signatures below, we represent that our organizations, by resolution of their governing boards,
agree to the above goals and to cooperate consistent with the principles set forth in this Working
Agreement.
Signed By Direction of:
American Academy of Actuaries (Academy)
February 18, 2006
American Society of Pension Professionals and Actuaries (ASPPA)
February 18, 2006
Asociación Mexicana de Actuarios (AMA)
February 18, 2006
Asociación Mexicana de Actuarios Consultores (AMAC)
February 18, 2006
Canadian Institute of Actuaries (CIA)
March 8, 2006
Casualty Actuarial Society (CAS)
February 18, 2006
Colegio Nacional de Actuarios (CONAC)
February 18, 2006
Conference of Consulting Actuaries
February 18, 2006
Society of Actuaries (SOA)
February 18, 2006