society of actuaries 1995-96 year in review...cindy l. forbes peter hepokoski anne m. katcher w....

ActuaryActuaryThe

S O C I E T Y O F A C T U A R I E S 1 9 9 5 - 9 6 Y E A R I N R E V I E W

2 The Actuary • December 1996

Editor

William C. Cutlip, [email protected]

Associate EditorsRobert H. Dobson, FSA

[email protected] A. Collins, FSA

[email protected] J. McKay, FSA

Robert D. Shapiro, [email protected]

Marc Twinney, FSAAssistant EditorsSelig Ehrlich, FSA

Craig S. Kalman, [email protected]

J. Bruce MacDonald, [email protected]

Ken A. McCullum, [email protected]

Puzzle EditorsLouise Thiessen, FSA

[email protected] Reichert

Society Staff Contacts847/706-3500

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The Actuary is published monthly (except July and August).

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Nonmember subscriptions: Students, $6; others,$15. Send subscriptions to: Society of Actuaries,P.O. Box 95668, Chicago, IL 60694.

The Newsletter of the Society of Actuaries

Vol. 30, No. 10 • December 1996

ActuaryThe

Bill CutlipEditor responsiblefor this issue

Copyright © 1996, Society of Actuaries.The Society of Actuaries is notresponsible for statements made oropinions expressed herein. Allcontributions are subject to editing.Submissions must be signed.

Printed on recycled paper in the U.S.A.

January Boardmeeting open to members

Interested Society of Actuariesmembers are welcome to attend theBoard of Governors meeting

January 17, 1997, at the Four SeasonsLas Colinas in Dallas, Texas. Minutesof Board meetings are available onrequest and on Actuaries Online. For more information on the meeting,call the SOA office at 847/706-3500.

1995-96 Board ofGovernors

OfficersPresidentSam Gutterman

President-ElectDavid M. Holland

Vice PresidentsHoward J. Bolnick

(Health Benefit Systems Practice)William Carroll

(Secretary, Treasurer)Yuan Chang

(Financial and Investment Management Practice)

John J. Palmer (Life Insurance Practice)

Patricia L. Scahill (Retirement Systems Practice)

Robert W. Stein (Research, Membership Service)

Past PresidentsImmediate Past PresidentBarnet N. Berin

Penultimate Past PresidentR. Stephen Radcliffe

ElectedNancy A. BehrensWilliam F. BluhmMorris W. ChambersDonna R. ClaireSue Ann CollinsDouglas C. DollCindy L. ForbesPeter HepokoskiAnne M. KatcherW. Paul McCrossanEsther H. MilnesPhilip K. PolkinghornAnna M. RappaportAlice RosenblattRichard G. SchreitmuellerArnold F. ShapiroMichael M.C. SzeMark A. Tullis

Inside this issuePresidential address: Redesign of the actuary....................3Sam Gutterman

Annual treasurer’s report ................8William Carroll

Spring meetings ..............................9

Annual meeting..............................10

1995-96 year in review .................12

Foundation progress ......................17

Membership StatisticsNovember 1, 1996

Membership, Nov. 1, 1995Fellows .......................................7,716Associates ...................................9,068Total ........................................16,784

Increase through:Examination ......................................5*Election .........................................35Reinstatement..................................34

Decrease through:Death ..............................................47Withdrawal ....................................253

Membership, Nov. 1, 1996Fellows .......................................7,987Associates ...................................8,571Total ........................................16,558

*Fellows of the Institute of Actuaries (England),the Faculty of Actuaries (Scotland), and theInstitute of Actuaries of Australia may beelected Associate members of the Society ofActuaries upon review of their applications.

3The Actuary • December 1996

EDITORIALPRESIDENTIAL ADDRESS

The redesign of the actuary

by Sam GuttermanAddress at the Annual MeetingOctober 28, 1996Orlando, Florida

Change. Sometimes mild. Some-times radical. One thing is certain.Change characterizes our world.

In fact, we will live with change the restof our lives. Dealing with it, as profes-sionals and individuals, will challenge us.My focus today is how current andfuture actuaries will have to react to it.Updating the definition of an actuaryDuring the past year, I have beenfrequently asked what an actuary is.The dictionary answer defines us by the type of technical work weperformed in the insurance industrymany years ago. For a general audi-ence, I think the following definitiondescribes us well:

An actuary is a professional trained inmathematics who applies a knowl-edge of probabilities and statistics infinancial matters related to individu-als or organizations. For instance,actuaries use their skills and knowl-edge to determine the cost ofinsurance and employee benefits and to measure the economic consequences of uncertain events.

For actuarial consumption, I prefera more complete, more subtle version:

An actuary is a professional whoidentifies and analyzes the implica-tion of future possibilities, especiallywith respect to risk. In conducting

this analysis, the actuary developsone or more models to estimate thefinancial impact of future uncertainevents. The models may reflect thedecision-maker’s objectives and risktolerances, reflecting explicitassumptions based on:• Historical experience from similar

types of exposures or relatedphenomena, and

• In-depth knowledge of the envi-ronment in which the futureexperience will occur, which maydiffer from the environment fromwhich the data were obtained.This knowledge enables an actuary to assess:• The relevance, reliability, and

credibility of available histori-cal or related data

• The sensitivity of the models to changes in assumptions andmodel specifications, resultingin an assessment of a range ofmodel results over asingle or multi-ple potentialscenarios.

To enable thedecision-maker toeffectivelyoperate inan envi-ronmentof riskanduncer-tainty, anactuaryinterprets the results of these models sothat practical alterna-tive approaches can bedeveloped to manage futureoutcomes. Because of the difficultyof predicting future contingentevents and their consequences, these approaches are often dynamic.

Periodic evaluations of emergingexperience and prospects for futurechange are required to enable anactuary to appropriately modify his or her estimates or to moreappropriately manage the risksundertaken.

Profession’s scope needs to be marketedWhatever definition you prefer, theprofession’s scope is much broaderthan is generally recognized. Twoimportant strategic issues for theprofession are related to this:

1) Marketing this enhanced scopeoutside of the profession

2) Preparing the actuary to satisfythis “job description”

Those who have heard of ourprofession assume that actuaries arehighly quantitative and deal withnumbers all day. In my experience,actuaries are more involved in businessissues that happen to benefit from

logical and mathematicalmethods. Such work

does require a soundquantitative base.

But today, that’snot enough.Actuariesneed asoundapproach to financialmodel building,the ability

to manage a project

and the people working on it, the

ability to communi-cate results, and the

ability to work jointly withtechnical and non-technical profes-sionals from other disciplines.

As A.H. Bailey, a British actuary, saidin his 1880 Presidential Address to theInstitute of Actuaries in London: “An

(continued on page 4)


actuary must be a mathematician, but amere mathematician will be a veryincompetent actuary.”

One thing is certain. Our profes-sion’s scope is much broader than isgenerally recognized. But how do weprepare the actuary to satisfy this bigger“job description?” How do we commu-nicate this enhanced scope outside theprofession? These are strategic issues for the profession to tackle.

Several actuarial organizations arepursuing the strategic issue of market-ing, but those efforts are looselyfocused. Now is the time for theprofession and the Society of Actuariesto take action and commit significantresources for programs that promote apositive, clear, and broader image. Wemust ensure that actuaries can respondto the “Ask an Actuary” campaignWalt Rugland spearheaded a few yearsago. How we accomplish this — orrather, how we prepare the actuary to meet this new job description —requires a “redesign” of the actuary.What do I mean?

In general, actuaries have a set ofsound skills and approaches to prob-lem-solving, including our ability torigorously pursue all implications of anissue. This is partly developed bysurviving our rigorous education andexamination system. I refer to theseskills as the actuarial platform. Most ofus share this platform, regardless of ourpractice area. How we apply it todaydefines us as actuaries. This is true evenif we no longer consider ourselvesinvolved in technical actuarial work.

How we apply it tomorrow willdetermine how the profession evolves.I am referring to a redesign that willallow us to change, but also to retainour existing strengths.Dramatic changes in businessmake redesign necessaryLet me describe some of the majorchanges we are experiencing, becausethey are the reasons for the need forour redesign. They affect all areas ofactuarial practice.

Technology has provided moreopportunities than disadvantages. Ithas given us improved access to dataand research, the ability to provide abetter service or product, and thepotential to expand beyond ourcurrent professional scope. A year ago,an article in The Wall Street Journalasserted that technology would elimi-nate the need for actuaries because thecomputer would do much of our work,which it characterized as numbercrunching. Don’t believe it! In fact,technology really should allow us to doour work better and expand our scope.

The broadened scope ourprofession aspires to isalready populated byothers. They understandtheir turf, and this won’tmake our expansion — or our response to change— easy.

We constantly hear about the consoli-dation of the industries we work in andwith. This may hurt some in the shortterm, but at the same time, it presentsopportunities as the need for soundbusiness advice increases even more.

A greater long-term threat, Ibelieve, comes from increased regula-tion. The need to comply with newrules may boost our short-termemployment. However, if we arecontent to serve our clients by simplysatisfying regulatory or legal compli-ance requirements, our customers willperceive us as necessary evils ratherthan as value added professionals. Suchan environment also diminishes ourincentive to provide creative, proactivevalue. Ultimately, the vitality of ourprofession, our influence, and ourscope will diminish if we concentratetoo much on compliance work.

Today, we are not the only professionto address business risk. This is even true in the insurance industry, where

we once monopolized risk assessmentactivities. Others now also rigorouslyaddress risk. The new so-called finan-cial engineers are just one example,although they have taken a relativelynarrow approach of solving risk-relatedproblems only through the use ofderivatives.

The reality is that the broadenedscope our profession aspires to isalready populated by others. Theyunderstand their turf, and this won’tmake our expansion — or our responseto change — easy. However, if ourideas remain unmodified and if we do not apply and expand our actuarialplatform, others will overtake us, evenin our traditional domain.

It will not matter that our solutionsare “right” if they aren’t well commu-nicated. In other words, we cannotassume that our actuarial black boxsolutions will not be challenged. In thepast, ivory tower solutions were toler-ated; now, they are a turn-off. Othervoices will recommend practical solu-tions or, alternatively, develop moretechnologically advanced ones if wedon’t do it first.

Business is now global. This trendwill not affect every actuary’s work.However, think for a moment. Thefuture public we serve may be inanother country. Our employer or client may be from another culture. Our fellow team member may havegrown up in another country. Knowl-edge of your own practice may besufficient today, but not necessarilytomorrow. I have learned in myinternational travels for the Society that,even though other countries havedifferent techniques and approaches toproblem solving, the issues are similarthroughout the world. We must beknowledgeable about the internationalenvironment, because our competitionmay not be whom we now expect.

Our business environment is chang-ing. Company consolidations havereduced the number of organizations,while opportunities for new clientshave increased. Dividing lines betweenindustries are blurring, whether theyinclude hospitals for health actuaries or

Presidential address(continued from page 3)


other financial institutions for life orfinance actuaries. Management fadssuch as strategic business units, re-engineering, and quality managementalso impact the size, shape, and struc-ture of actuarial areas. Peer supportgroups may not be as available as theyonce were, and the ability to hire more actuaries may be changed.

More frequently than ever, actuariesare working in multi-disciplinary situa-tions where seeing the big picture andidentifying problems are essential.New attributes for a new eraAll of these changes are here today,and they must be addressed by aredesign of the actuary. What shouldthis redesign consist of? It shouldencompass attributes that will allowactuaries to address change and over-come challenges.

Let me describe these attributes.

1) An ability to identify risks. Thefirst step in risk assessment is the iden-tification of significant risks.

2) An ability to identify opportuni-ties. Too often we focus only on risks.We must also focus on opportunitiesand how to take advantage of them. Istill see actuaries who either don’taddress the significant underlyingissues of a problem or treat these issues as if they were someone else’sproblems. Perhaps they feel the issue is outside their job description. Theredesigned actuary, however, willrewrite this job description.

Though we are alwaysasked for unique answers,we must educate others tothe fact there is more thanone probable future.

3) An ability to apply unstructuredproblem solving skills and to be intel-lectually curious. After identifying a riskor opportunity, we must adapt newtechniques and approaches to addressthem. We can’t just extrapolate; wemust anticipate change. In addition, andpossibly more important, it isn’t enoughto ask how — we must also ask why, andwhat other alternatives exist.

4) Maintenance of both a long-termand short-term perspective. Historically,this has been one of our strengths; wecan’t lose it in the midst of our redesign.

5) An ability to construct realisticactuarial models and apply them toderive practical answers to businessproblems. The wisdom to learn frompast experience is an actuarial strength,but we must realize that the futurerarely replicates itself. We are experts in the use of discounted cash flowtechniques; we need to expand andfurther improve their applications. This realization will result in the use of more dynamic models and followwhat the Australian actuaries describeas the actuarial control cycle.

6) A willingness to examine alter-native scenarios. We cannot predict thefuture. Although we are always askedfor unique answers, we must educateothers to the fact that there is morethan one probable future. In order toassess the financial implications of risksand opportunities effectively, it is desirable for us to develop multiplescenarios, to demonstrate their impacts,and what can be done about them.

7) Recognition that most problemsdon’t have black and white solutions. Infact, most problems usually involve vari-ous shades of gray. We have been taughtto weigh both the advantages and dis-advantages of alternative solutions.While we cannot lose this approach toproblem solving, at the same time wecan’t freeze and not make any recom-mendations or decisions at all.

8) Need to take advantage of tech-nology, but not be controlled by it. Wemust use technology to help createnew opportunities and insights, butnot be driven by it. Technology is atool, and not an end all by itself.

9) Application of known models tonew problems and identification ofnew methods for application to existingproblems. For example, we mustbecome more familiar with applicationsof financial economics. The new finan-cial textbook the Foundation willpublish and distribute to actuaries will serve us well.

The new Presidential Award program,instituted by Sam Gutterman at theannual meeting, honored four individualsat the Board of Governors dinner atEPCOT Center in Orlando. Two honoredwere Bob Myers (left), former chief actuaryof the Social Security Administration, for his public service; and Bern Bartels,(right) SOA exam registrar for 25 years,and bell ringer at 100 SOA meetings.Other honorees were Paul McCrossan, forhis work to establish the InternationalForum of Actuarial Associations, and thelate Edward A. Lew, for his contributionto actuarial research and modeling.



10) Sound research skills. We will increasingly access both actuarialand non-actuarial data and studies.Although the Society will continue to enhance our own strong researchprogram, we will also have to learn tolook to the results of others as well; wedon’t have a monopoly on knowledge.

11) Need to go beyond what isrequired. We will have to performmore than just a compliance functionto be of long-term value to ouremployer or client. We have to addbusiness value.

12) Communication to the users ofour services in their language. Wereally need to substitute facts forimpressions. Facts in this context donot necessarily mean a single answer toa problem, but rather more completeinformation and analysis to help othersmake informed decisions in languagethey understand. Focus on significantmacro issues, rather than refined solu-tions to micro issues, should highlightour contributions.

13) Confidence in our ideas andproactive pursuit of them. In additionto our fundamentally sound quantita-tive approach, I believe actuaries havebeen successful because of an in-depthunderstanding of our environment. Weknow more about our current practice

areas than anyone else. The emphasisin our new education process will beon more generalized problem-solvingapproaches that use a wider scope ofmethods and techniques. At the sametime, we must combine this with an in-depth knowledge of our environment.This means we must continue to be onour toes.

The results of our educationredesign project will further the workof the actuary and the worth of theactuary, as well as the public perceptionof the actuary.

14) Professionalism. But most of all, it is very important to be a profes-sional, by acting with personal integrityin the public interest. For those whohave gone through a FellowshipAdmissions Course, you need tocontinue to practice what you learnedthere throughout your career. Forthose like myself who have not, Iencourage you to think long and hardabout what it means to be a profes-sional, and to act accordingly.The SOA’s role: Help usmanage changeHere is what the Society of Actuariesshould do. Let’s start with our investment in aspiring actuaries. Thisyear marks the Society of Actuaries’100th anniversary of offering profes-sional education and examinations.

Our educational redesign structure,which the Board of Governors

approved on October 27, is all aboutrenewal and commitment to, andinvestment in, our profession’s future.

If implemented according to plan, itshould increase the value of future actu-aries and broaden our profession’sscope. It will be a significant milestone.This redesign should continue our tradi-tion of excellence that we are known for around the world. I broadened mypersonal scope by studying both life andcasualty actuarial examinations. That hasbetter prepared me to tackle differentbusiness problems. Although mypersonal education formula is not foreveryone, it is an example of a continu-ing education plan current and futureFSAs should develop.

We need to do everythingwe can to help actuariesbreak out of theircubbyholes.

In fact, in a recent telephone surveyof randomly selected SOA members, asignificant percentage favored compul-sory continuing education for theprofession. I think we should explorethis issue further. This responsesuggests that actuaries recognize theimportance of continuing education intimes of change. How high should thebar be set to keep actuaries up to date?

At the same time, we need toexpand our continuing education offer-ings considerably in the future, both intraditional areas of interest and inothers. We need to do everything wecan to help actuaries break out of theircubbyholes.

With respect to our research, I alsobelieve we should expand our invitedpapers program and encourage moresubmissions on a variety of significanttopics. We should focus on developingnew techniques, broadening our set ofapplications, and adapting those devel-oped in other fields, such as financialeconomics, biostatistics, and investmentmodeling. We must also market ourknowledge and our research better.

President SamGutterman (seatedon floor) celebrateswith new Fellows at the DallasFellowshipAdmissions Coursein March. The 1996spring crop attend-ing this FAC andthe one in Atlantayielded 170 newFellows; the fallFACs in McLean,Va., and Torontoadded 165.

Presidential address(continued from page 5)


We have begun this process with thepublication of our new journal, theNorth American Actuarial Journal, andour visibility on the World Wide Web.

We also have to make sure we stayoutward focused on a proactive basis,and not just inward looking. If we don’tpay attention to our customer, we mayfind we are just talking to ourselves.

We have talked a lot about expand-ing our profession’s scope. I’ve seenearly signs that our efforts are succeed-ing. For example, our new finance and investment education tracks areexcellent. Now, we must help findopportunities for our graduates inthese areas. We must work with univer-sity professors and recruiters, amongothers, to increase and broaden theplacement of actuaries. We mustpromote our positive image. We needto broaden our employment opportu-nities, so the redesigned actuaries cando their thing. We can only keep theirloyalty if we prove that we can helpand actuaries become recognized asvalue-added professionals. Too manyqualified young actuarial candidatesleave the profession. The professionneeds to keep them. We can only dothis by relevant and valuable educationand research. They need to be proud ofbecoming an actuary.

Create your own plan,making it flexible enoughto respond to yourchanging needs.

Our role: Growth is up to usNow the remaining question is, “Whatshould you do?” The Society ofActuaries can only contribute so muchtoward helping to redesign the actuary.Ultimately, it is your responsibility toimprove your skills. Take a long, hardlook at yourself. What attributes doyou need to better satisfy the real needsof your employer, boss, or client? Howcan you keep up with changes affectingyou and your practice area? What addi-tional knowledge will you need? What

type of continuing education shouldyou pursue?

I challenge you to take this initia-tive. Create your own plan, making itflexible enough to respond to yourchanging needs. Reach out and spreadyour wings! Go for it — redesign! Closing remarksI would like to conclude by sayingthanks to those who helped me surviveand enjoy this past year as your presi-dent. First on my list is my family —Peggy, my wife; Jordan, my eight-year-old son; and Zoe, my six-and-threequarters-year-old daughter. I wouldalso like to recognize my parents. I amfortunate to have them both here withme today.

Second on my list is the SOA staff and our many volunteers. JohnO’Connor assisted me tremendously,as he has for 16 previous presidents.His loyal and hardworking staff havebeen a pleasure to work with. TheSociety is involved in an amazingnumber of activities, and the quality of their performance has not beencompromised. Together with our many volunteers, they clearly makethings work.

In my first speech as your president-elect, my major theme was the need formore actuarial champions. I have metmany these past two years. Theycertainly know who they are. I sincerelythank you for your service, your passion, and your contribution. In many cases, it

is a labor of love. I can only urge youand others to continue to expand yourefforts as champions.

I would also like to thank myemployer, Price Waterhouse, forputting up with my “high priority”SOA projects.

But most of all, I would like to thankyou, the members, for giving me theopportunity to be able to experiencesuch a challenging and rewarding periodof my life. I hope that I have fulfilled asmall part of your faith in me.

Thank you.

Sam Gutterman transfers the Presidential Medal to the 1996-97 President DavidHolland (left), sealing the pass-off with a high-five.

Past President Steve Radcliffe (kneeling)asks Jordan Gutterman, son of PresidentSam Gutterman, how he felt when he sawhis dad in front of all these people. Hisresponse, “I felt good,” brought smilesfrom mother Peggy and sister Zoe.


by William CarrollSOA Vice President/Secretary/Treasurer

T

he Society of Actuaries continuesto be in a sound financial posi-tion. Member equity remains

significantly above target, and netoperating income is again very close toa break-even budget, indicating finan-cial strength and sound financialmanagement. The results on ourmanagement basis of accounting forthe fiscal year ended July 31, 1996 (FY 1996), are as follows:

Amounts(In $1000’s)

Income $ 14,828Operating Expenses 14,835

Net Operating Income $ (7)

Non-operating Expense 288Increase (Decrease) in Member Equity $ (295)

Member Equity as of July 31, 1996 $ 5,688

The operating loss of $7,000 iswithin a budgeted loss of $49,500.The non-operating loss of $288,000 isthe net of a $355,000 matching contri-bution to the SOA Foundation and arelease of $67,000 of liability forIllinois sales taxes, reflecting a favor-able settlement of that audit issue. Thecontribution to the SOA Foundationcompletes our $500,000 matchingcontribution commitment. This is inaddition to the $500,000 contributedin 1995 as seed money.

The Board of Governors has estab-lished a target for year-end memberequity of 25-30% of budgeted expensesfor the following year. The memberequity of $5.688 million represents37.3% of the budgeted expenses for the1997 fiscal year. Not included in thisamount is $1.080 million of surplus ofspecial interest Sections and otherrestricted funds. We are fortunate tohave such a strong financial position as

we enter a period of fundamentalchange in our basic education andexamination system and unprecedentedgrowth in research.

This report is based on our manage-ment basis of accounting. It differsfrom our GAAP basis in only oneregard. We account for researchprojects on an “as committed” ratherthan an “as paid” basis, a practice moreconservative than GAAP. The completeGAAP Financial Statements and theIndependent Auditor’s Report ofSelden, Fox and Associates, Ltd., willbe published in the Transactions of theSociety of Actuaries. They have beenreviewed by the Finance and AuditCommittees and approved by the Board of Governors.4 service segments For financial management and budget-ing purposes, the operations of theSOA are broken down into four servicesegments:

1) Basic education2) Continuing education (meetings

and seminars)

3) Research (basic research, experi-ence studies, and SOAFoundation support)

4) Member services, general over-head, and other activities

This is our second year operatingunder a revenue-sharing plan. In determining the net contribution to operating income from each of the four segments, research receives 25% of dues and 10% of basic educa-tion income, and member services andother activities receive 75% of dues and5% of all education income. On thisbasis, the net operating loss of $7,000was the result of $382,000 and$47,000 contributions from basic andcontinuing education, and $167,000 and $269,000 losses from research andmember services and other activities.These results are not untypical and illustrate the challenges in managing the financial affairs of the SOA.The futureOur five-year fiscal plan reaffirms ourcommitment to continue our currentlevel of program activities and memberservices, to make a major change in oureducation and examination system, andto continue to provide the operationexpenses for the SOA Foundation. Italso recognizes that we cannot expectcontinued growth in the number ofindividuals taking examinations.Consequently, regularly scheduled feesand dues increases are forecasted.Because of our solid financial position,no dues increase was adopted for 1997.For fiscal 1997, we have a budget with expected revenue of nearly $15.5 million, a net operating incomeof $186,300, an ambitious goal.

The five-year outlook is also good.Even allowing for substantial losses as we introduce our new examinationsystem, projections indicate thatmembership equity will remain slightlyabove our 25-30% target by the end ofour 2001 fiscal year.

Annual treasurer’s report

Treasurer Bill Carroll shows characteristic“Yankee” frugality when he announcesat the Orlando annual meeting thatSOA surplus is above target, operatingresults are within budget, and there willbe no dues increase for 1997.


Spring meetings blend resort fun with CE

Continuing Education attendance

Spring meetings:May 29-31 Marco Island, Fla 916June 26-28 Colorado Springs 1,167

Annual meetings:October 27-30 Orlando 1,642

Valuation Actuary SymposiumSeptember 5-6 Reno 719

22 seminars (including 1 teleconference and 1 symposium) 1,205

Speaker M. JamesBensen, president ofBemidji State U. inMinnesota, takes overthe stage at the ColoradoSprings meeting, speak-ing on “Change Is OurBread and Butter;Doing It Better Is Our Job Security.”

Keynote speaker Daniel Burrus (right) relaxes with the Sectionluncheon speaker, Dale Irvin (center), and Academy PresidentJack Turnquist after the May meeting’s opening session at MarcoIsland. Burrus, author of Technotrends, and Irvin, a futurist,both addressed technology’s impact on the business world.

The Rocky Mountains and the beautiful surroundings of TheBroadmoor make a nice spot for a break between continuingeducation sessions.

Richard Lamm (left),former Colorado gover-nor, finishes a toughQ&A session with SOAmembers and PresidentSam Gutterman (right)at the June ColoradoSprings meeting. Speakingon the some of the difficultchoices ahead in healthcare, he outlined his viewson “Infinite Needs, FiniteResources: Running aNation of 50 Floridas.”

For the first time at a spring meeting, one afternoonwas left completely free to enjoy all the Marco Islandarea has to offer. Special networking activities tookattendees to shelling tours, a visit to the Everglades,and golf and tennis tournaments.


What better place to recognize the importance ofmembers’ families and the Society of Actuariescommitment to the future than at the annual

meeting in the Disney World Dolphin Hotel. A charmingassortment of Disney characters, a children’s choir, and 200 children of members made the 1996 annual meetingopening session a memorable one for 1,700 participants.Following were three days of choosing from among 150 continuing education sessions, Section breakfasts, receptions, and committee meetings.

Children lead the way at annual meeting

Keynote speakerJames Baker, havingserved in senior positions under threeU.S. presidents, waswell qualified toaddress “What theWorld Needs Now...”

Mickey Mouse leads the color guard with Zoe (left) and Jordan(right) Gutterman, children of President Sam Gutterman,bringing in the U.S. and Canadian flags. Almost 200 childrenof other SOA members followed.

Minnie Mouse signs autographs for some of her smallest fans at the Disney breakfast for 500 SOA members’ children andfamily members.


The 1996-97 President David Holland and President-ElectAnna Rappaport face the new SOA program year togetherfollowing the President’s Luncheon.

Entertainer Andy Taylor, backed by the Southwest MiddleSchool choir, sings favorite Disney tunes while Sam Guttermanjoins 200 children seated on the floor.

It’s not often an SOA President gets such an enthusiasticwelcome onto the annual meeting stage.

After the choir’sinspiring song,“When You Wishupon a Star,” SOAFoundation TrusteeWalt Rugland getsencouragement fromJiminy Cricket beforehe outlines accom-plishments and his“wish list” for theFoundation.


1995-96 year in reviewWhat is an actuary?Redesigning for an enhanced identity

L ast October, when 1995-96President Sam Guttermanpresented the goals he would

strive for during the next year, hefocused on three areas:

1) The actuary as an individual— To become individuallystronger through improved basiceducation, continuing educationand communication.

2) Actuarial science — To expandand increase the impact ofresearch and actuarial literature.

3) The actuarial profession — To focus outward into new practice areas, and on moreinternational communications,and to become more visible tothe public.

To make great strides in these areas,Gutterman said he would rely on ourvolunteers, the practice areas, theSections, and staff to “run along withhim.” That said, he began his leader-ship role in a year he believed held“great promise for each actuary, actuarial science, and the profession.”

He was not wrong. Much was accomplished this year toward those ambitious goals through the efforts of all these groups.

Part of the work, however, includedredesigning the basics — what is anactuary and how can an actuarybecome prepared to take on new roles into the next century?Redesigning basic educationAt its October 1996 meeting, the SOABoard of Governors unanimouslyapproved the Board Task Force onEducation’s overall design of the newbasic education system. This system isbeing developed to provide a newFellow of the Society of Actuaries withknowledge and application skills to beable to respond and add value to arapidly changing business environment.The Task Force — chaired by CecilBykerk, with Jeff Beckley (chair of theDesign Team), Rob Brown, PeterHepokoski, John Kollar from the CAS,Godfrey Perrott, Bob Shapiro, and staffmembers Jeff Allen and MartaHolmberg — was given the green light

for the Design Team to proceed in thedirection outlined in the August reportto members.

A survey sent with the report wasreturned by about 800 members.Responses showed strong agreementwith statements like “The proposededucation system is an improvementover the current system” and “Actuarieseducated under the proposed systemwill be well-equipped to serve theirpublics and fulfill their professionalresponsibilities.” With member inputsought throughout the process, includ-ing presentations at local clubs, fivespring meetings and two annual meet-ing sessions, it is not surprising themembers generally support the direc-tion being taken. An article on theE&E redesign membership survey willappear in the January 1997 issue of The Actuary.

The Board directed the DesignTeam to proceed with detailed devel-opment of the specifications of theBasic Courses (1-6) leading toAssociateship and the Advanced

The Foundation booth was a popular location to check out the latest additions to Charter Investors and to pick up information.


Courses. Courses 1 and 2form the foundation of actu-arial education and Courses3-6 cover the fundamentals of actuarial practice. TheAdvanced Courses (7-8) arean intensive seminar onmodeling and an exam onadvanced topics in a specificpractice area. These coursesshould be ready to implementby January 1, 2000.

Requirements for the FSAdesignation also include theProfessional Developmentcomponent — 50 hours ofeducation, completed within atwo-year period — 25 ofwhich must come from SOA-approvedactivities like seminars. Up to 25 hoursmay be earned from an additionalCourse 8, the Chartered FinancialAnalyst (CFA) designation, the EA-2exam, or a research paper. Issues stillbeing discussed are needs of candidatesoutside North America and validationrequirements. As it is now, theFellowship Admissions Course will bethe final step to FSA after all othereducational requirements are met.

Transition rules are an area ofconcern for those who will still besitting for exams when the new systemgoes into effect. The important princi-ples guiding those developing transitionrules are fairness to the candidates andmaintenance of SOA standards. Generalconcepts include:

• New and old courses will not beconcurrently administered.

• Credit will be given for new coursesthat generally correspond withsome combination of current ones.

• Required courses will correspond.• Elective courses generally won’t

correspond with the new courses,but they may be used to satisfythe professional developmentrequirement or to complete thecredit needed for the new courses.

• Candidates will have at least threesittings for each current course.

Because candidates are to have threeyears’ notice on transition rules, theintent is to publish them early in 1997.

Challenges still remain, but the finalresult will be a redesigned actuarywhose core competencies clearly distinguish him or her from profession-als in related areas and whose skills willenhance his or her value in both tradi-tional and nontraditional roles.Looking at continuing education redesign Along with redesigning the futureactuary, the Board evaluated efforts toprovide current actuaries with informa-tion beyond basic education to helpthem in day-to-day, on-the-job perfor-mance. A Continuing Education TaskForce, chaired by Rick Bergstrom,studied the SOA’s CE structure indetail — seminars, meetings, technol-ogy, CE requirements, promotion/marketing, fees, speakers, and deliverymethods. Their October report to theBoard brought to light a key issue: thecurrent CE system lacks a coordinatedeffort at long-term strategic planning.“In fact, it is not really a system, butmany independent events, such asmeetings, seminars, publications, andActuaries Online,” the report noted.The task force recommended a CECoordinating Committee be estab-lished to ensure members have accessto enriching educational programs.

Interestingly, a July 1996 telephonesurvey, conducted with a randomsample of 500 members, revealed that90% of the members surveyed favored amandatory continuing education

requirement for the profes-sion. The ContinuingEducation CoordinatingCommittee will investigatethis issue further and reportback at the March and May1997 Board Meetings.

In addition to a variety ofpractice area seminars, signifi-cant events in continuingeducation this year were twoseminars on Social Security in Canada and Washington,D.C., a healthcare sympo-

sium on risk adjusters, and the development of three CD-ROM modules to provide alternative delivery

of CE material.Framing new Mission andVision StatementAgain, internal contemplation of whatis an actuary and why does the SOAexist? — so necessary before communi-cating with outside audiences —resulted in this year’s new Mission andVision Statement. The final draft,developed by President-Elect DavidHolland and approved at the May1996 Board meeting, reads:

The Society of Actuaries is an educa-tional, research, and professionalorganization dedicated to servingthe public and Society members. Its mission is to advance actuarialknowledge and to enhance the ability of actuaries to provide expertadvice and relevant solutions forfinancial, business, and societal problems involving uncertain futureevents. The vision of the Society ofActuaries is for actuaries to be recog-nized as the leading professionals inthe modeling and management offinancial risk and contingent events.

Each of the terms and concepts used in the statement was further amplified,and they will be published in the 1997Yearbook. Revising governance structureA new mission statement was one ofthe strategic directives accomplished inthe 1995-96 program year. Anotherwas revising the governance structure.

Chris Daykin (left), president of the International Forum ofActuarial Associations, visits at an annual meeting receptionwith SOA Ambassador Xiufang Li and guest Joy Ke from China.



For two years, under the leadership ofHarry Garber, the Task Force onGovernance and Governing Issues had been reviewing the SOA’s opera-tions and effectiveness. Its actions have already led to improved internalcontrols, creation of a separate auditcommittee, and refocusing the Boardon its governance role instead of thatof management.

At the October 1996 meeting, theBoard dismissed the task force withthanks and approved these recommen-dations for implementation:

• Changing the ExecutiveCommittee with its substantiveBoard functions to an OperationsCommittee with management andoversight responsibilities. Thismore clearly assigns the Board ofGovernors the governance role andavoids a “mini-Board” pre-digest-ing issues before the Board meets.

• The six SOA vice presidents willnot automatically sit as membersof the Operations Committee.They will instead serve on theCommittee on Planning (to be

renamed Committee on StrategicPlanning). The task force believesthat by focusing the vice presi-dents on strategic issues, the SOAcan attract vice presidential candi-dates who may have previouslyhesitated to take on the heavymanagement and governancedemands currently required.

The transition will take carefulmanagement, and some changes willrequire bylaws changes. These repre-sent the most important changes instructure and processes since the SOAwas formed almost 50 years ago. New actuarial literatureAnother 1995-96 strategic directivewas to expand actuarial literaturethrough the new Scientific PublishingPlan, which was outlined in theOctober issue of The Actuary. The plan includes a new monograph seriesof research reports, of which five havealready been published. Mike Cowell is the editor.

The plan also calls for replacing theTransactions with a new quarterly jour-nal, The North American ActuarialJournal. Sam Cox, editor, and the staffare gearing up to launch the new jour-nal in January 1997. The first issuepromises to show the wide range ofviews and interests of today’s actuarialprofession. A November 1996 articlein The Actuary announced the firstissue’s contents — everything fromfinancial derivatives to the actuarialaspects of Jane Austen’s novels.

The TSA Reports, with DouglasEckley as editor, will continue topublish annually with experience stud-ies, committee reports, obituaries, andother standard items previously inTransactions.

The Record, previously a boundbook, will be available electronically onActuaries Online beginning with the1996 meetings, giving members fasteraccess to meeting session content andsaving money in printing and postage.Volume 21 covering 1995 meetings willbe the last book; however, those with-out electronic services can request hardcopy from the SOA Books Department.

Redesigning communicationsthrough technologyBesides The Record, much informationuseful to actuaries is now online, eitherthrough the SOA CompuServe forum,Actuaries Online, or the SOA’s newInternet home page — or both.

Actuaries Online, with more than1,000 files, continues to be a popularchoice for its 2,000 subscribers. TheResearch Library, for example, containscalls for research proposals and statusreports of current projects. TheSoftware and Worksheets Library has a table manager program with morethan 500 mortality tables built in. The Opportunities Library provides a place for companies to list open positions. Typically, dozens of down-loads are noted within the first day ofposting a job.

1995-96 year in review(continued from page 13)

Pat Brockett (left) and Sam Cox(center) accept the last Annual Prizeaward for the best paper published in Transactions in the past year.Transactions is being replaced in 1997 bythe North American Actuarial Journal.Other authors of this paper, “ActuarialUsage of Grouped Data: An Approach toIncorporating Secondary Data,” not ableto be at the annual meeting were BoazGolany, Fred Phillips, and Yun Song.

Anna Rappaport, incoming president-elect, tells members of the challenges theprofession will face from the aging soci-ety. She will pursue joint cooperationwith other organizations who work onsimilar issues.


The SOA web site (www.soa.org) went live in July. In the first month, the home page was accessed almost7,500 times, with nearly 97,000 hits.The most active day to this point waswhen passing candidates numbers were posted — 19,183 hits on July 19. The top five countries for users are theUnited States, with 68%, then Canada,Hong Kong, Singapore, andSwitzerland.

Site visitors will see the SOA homepage is under permanent constructionto keep information fresh and useful.Plans include adding an internationalcontinuing education calendar andexpanding hot links to other web sitesof actuarial interest. Expand alliances with otherorganizationsInternationally, efforts to shareresources through cooperation withother organizations was a focus thisyear. The International Forum ofActuarial Associations (IFAA) hasalready begun to strengthen relation-ships to the benefit of the worldwideprofession. It had hardly been formedwhen the International AccountingStandards Committee asked for theIFAA’s input on internationally recog-nized standards for employee benefits.The IFAA will continue to exploreglobal actuarial education to truly real-ize its mission “to develop a globalprofession of technically competentand professionally reliable actuarieswho are recognized as such.”

In other international ventures, adelegation of North American actuariestraveled to Brazil in August to opendiscussions with South American actu-aries. In addition, members of othercountries’ actuarial organizations arebeginning to come to the SOA toapply for Correspondent status. Thisallows them to participate in SOAmeetings and receive publications.

The September issue of The Actuarywas devoted to discussions of the IFAAand other international issues.

In the United States, the HealthPractice Area, in particular, had severaloutreach successes. The AAA/SOAJoint Task Force on Communications

for Health Issues began work topromote awareness of health issues andactivities. It developed a web page toreach actuaries and those outside theprofession in academia, government,and the public. The Joint AAA/SOAHealth Financial Issues Committee hasformed several task forces to addresshealth insurance issues. Alice Rosenblattand Dan Dunn (Harvard University)presented findings of the SOA RiskAdjustment study at an SOA seminarand at the annual meeting of theAssociation of Health Services Research.

The work of the SOA LifeNonforfeiture Task Force and anAcademy Working Group also washelpful in providing regulators with anactuarial framework for nonforfeitureto replace the current U.S. statutoryformula. The Academy took the SOAtask force framework and developedpractical examples to help regulatorsdevelop a draft of a proposed law. TheSOA and the AAA also spent time inmeetings educating the industry andregulatory actuaries. They madepresentations to the ActuarialStandards Board and the NAIC, andthey were the first nonregulators asked to addressto the NAICCommissionersRound Table. The SOA alsoprovided researchhelpful to theNAIC in develop-ing regulations for the sales illus-trations andvaluation of indi-vidual annuitycontracts.

In response tothe Mexican actu-arial organization,CONAC, SOAactuaries are help-ing set up life,annuity, anddisability experi-ence studies.

The RetirementSystems Practice

Area’s study this year into the feasibilityof developing a macrodemographicmodel for retirement also advancedtheir goal of improving relations withother organizations and professions,including economists and demogra-phers. Other research links this practicearea with the Actuarial StandardBoard’s pension committee to developa standard on asset valuation methodsand the PBGC to analyze the effect ofthe Department of Labor’s “safestannuity” rule.

The Finance Practice Area alsoexpanded its activities to include severalcooperative ventures. It exploredemerging practice areas — banking andfinancial institutions and capital projects— to consider ways to expand actuarialopportunities. Its successful seminar onthe Market Valuation of InsuranceLiabilities at New York University inDecember 1995 included a presenta-tion by a representative of the FinancialAccounting Standards Board staff.

Communications between the SOAInvestment Section and the Associationfor Investment Management andResearch resulted in actuarial work


(L-R) Elias Shiu and Hans Gerber are awarded the HalmstadPrize, administered by AERF, for their papers “MartingaleApproach to Pricing Perpetual American Options” and“Option Pricing by Esscher Transforms.” Klaus Shigley won theL. Ronald Hill Memorial Prize, established by William M.Mercer for employee benefit plan papers. His “Pension MaxElection” paper was published in the October 1995 PensionForum and will be in the last volume of Transactions.


becoming acceptable experience towork toward the CFA designation. In addition, the SOA was accepted asan affiliate of the American Associationfor the Advancement of Science, whichis formal recognition of the actuary’srole as a scientist.

The SOA Committee on ActuarialPrinciples is working with the CasualtyActuarial Society to articulate a set ofgeneral principles that will apply to bothlife and casualty. In a separate initiative,the Finance Practice area is developingasset/liability management principles. Redefining experience studiesand expanding researchA comprehensive report by theExperience Studies Task Force inOctober 1995 recommended improvements needed to ensure effi-cient management, funding, timeliness,and usefulness of experience studies. InMay, the Experience Studies OversightSubcommittee received surveyresponses regarding the value of vari-ous studies to users. Recommendationswere approved, and since then severalexperience studies have been issued orare being prepared for the next Reportsvolume. These include: • 1988-89 and 1989-90 Individual

Life• 1985-89 Group Life• 1992 Private Settlement• 1993 Structured Settlement• 1991-92 Group Annuity• 1983-88 Cause of Death

Significant strides have been madethis year in research of topics as timelyas today’s headlines. Some recent stud-ies appearing this year as SOAmonographs cover these topics:• Valuation of interest-sensitive finan-

cial instruments• Public employee retirement systems• Public financial guarantee programs• Catastrophic claims health data base• Health risk assessment

The catastrophic claims research hasbecome one of the Society’s most-requested reports in recent history andhas been of great interest to the media.

It has been reported on by The WallStreet Journal, Worth Magazine,Reuters News Service, and AmericanHospital News.SOA staff redesignThe Society of Actuaries is an extremelycomplex organization. A staff reportthis year to the Board outlined in detailthe scope of existing programs, level of staff support, and approximate costs. Under the Board’s leadership,116 committees comprised of 1,300 volunteers and 13 special interest Sections governed by SectionCouncils provide 84 programs andservices. This work is supported by afull-time staff of 75 in the Schaumburgoffice, and according to members, isbeing done well. In a July survey, 60%of the 500 members randomly selectedto be surveyed said that SOA staff is“effective in implementing programs,services, and policies” and 61% said it is“responsive to my requests and needs.”

Although staff support to officers andvolunteers continues to increase, a shift in responsibilities gave present staff increased opportunities and avoidedadding more employees. Building onstrengths already in place and focusingon efficiencies gained through experi-ence helped make staff adjustments tohandle increased work load.

At the top level, two departmentswere merged when Director ofOperations Chelle Brody moved toFlorida. Communications andOperations were combined under thedirection of Linda Delgadillo, CAE(Certified Association Executive). Thisincludes all the publications, publicrelations, human resources, and generaloffice operations, including Sectionsand elections.

New levels of responsibility weregiven to several staff members in thistransition. Dana Mikula, a two-yearemployee, is now manager of humanresources and office operations. CeciliaGreen, APR (Accredited by the PublicRelations Society of America), hired sixyears ago as editor of The Actuary, wasnamed director of public relations. Shewill be involved in promoting researchand publication content, recruiting for

and marketing of the profession, mediarelations for the Society, managementof Foundation consumer educationprograms, and contacts with Forecast2000, the profession’s public interfaceprogram managed by the AmericanAcademy of Actuaries. BarbaraSimmons, Associate Fellow in theSociety for Technical Communications,an eight-year employee and publica-tions manager at the SOA for threeyears, has increased responsibilities inediting and design of the new mono-graph series, the North AmericanActuarial Journal, and electronic deliv-ery of The Record, as well as 13 specialinterest Section newsletters.

With the retirement of registrarBern Bartels, Martha Abel, manager ofexaminations, and Phil Turk, regis-trar/E&E analyst, have assumedadditional responsibilities to maintainmanagement of the exams process.

Karen Baymiller, who is leaving the SOA, will work on a contract basisto manage the SOA annual meetingexhibit trade show and arrangingBoard meetings. Colleen Fiore, whohas been in the Continuing Educationdepartment for seven years, will assumeresponsibilities for annual and springmeeting logistical arrangements asmeetings manager.

Incoming President David Hollandoutlines the SOA’s new Mission andVision Statement that aims for actuaries“to be recognized as the leading professionals in the modeling andmanagement of financial risk and contingent events.”

1995-96 year in review(continued from page 15)


The Society of Actuaries Foundationis now a precocious two-year-old.Out of its infancy, well-developed

into a “toddler,” the Foundation is nowbeing guided by its “parents” towardlifetime goals. The 17 Trustees knowthat heading the young organization inthe right direction, with firm principlesas a guide, will ensure the success of theFoundation’s mission: to contribute to society by investing in research,communication, and education to help understand and resolve social and economic problems.Fund raisingInvesting in the future of any “child,” of course, takes money. By theannual meeting in October 1996, theFoundation was more than halfway toits three-year fundraising goal: to raise$1 million from individual donationsby the end of 1997. It had more than$690,000 and 251 Charter Investors:individuals who had pledged orcontributed $1,000 or more. Becausethe SOA funds staff support and over-head, 100% of all donations go toprojects and are tax-deductible.

Individual Contributions (as of Oct. 30, 1996)

Level Number of Contributors

Principal — $25,000 6

Partner — $10,000–24,999 10

Pinnacle Leader — $5,000–9,999 8

Leader — $1,000–4,999 227

Corporate Investors have alsodonated significant funds to theFoundation, including project partner-ships, unrestricted gifts, and specialevents income. They are:• Lincoln National $125,000• Nationwide Insurance $ 50,000 • Ward Howell International $98,000• Andover Research $10,000• D.W. Simpson

and Company $10,000• Aid Association for

Lutherans $1,500The matching gifts program has

been an important part of the individ-ual contributions program. Thefollowing companies match theiremployees’ gifts:• American Express Financial

Advisors, Inc.• American Life Insurance Co.

of New York• Aon Corporation• Great-West Life Assurance Co• John Hancock Mutual Life

Assurance• Lutheran Brotherhood• Mutual of America Life Insurance

Company• Pacific Mutual Life Insurance

Company• Principal Financial Group

Foundation• Security Mutual Life Insurance Co.

of New YorkProjectsThe grant-making role of theFoundation is an important one to itsmission. The Trustees set a strategicdirection early on — to allocate fundsto a few, large-scale projects that couldhave a significant impact. Currently,the Foundation is supporting threelarge projects:• $250,000 to write and publish a

textbook, Actuarial Aspects ofFinancial Theory, by a team of 10 international finance experts, co-funded by Lincoln NationalCorp, to be published in 1997 andoffered free to all SOA members

• A $150,000 grant to develop andimplement a consumer educationproject, “On the Edge of Change;Putting Social Security Back inBalance,” to provide workers withan unbiased look at the future ofSocial Security. The SOACommunications Department hasdistributed about 70,000 brochuresto more than 300 companies andindividuals. The program has been

Foundation celebrates progress

Foundation Chair Jim Tilley tellsTrustees and Charter Investors of theFoundation’s impressive accomplish-ments in just two years of existence.


(L-R) Past SOA President BarbaraLautzenheiser and President-Elect AnnaRappaport get the ear of annual meet-ing keynote speaker James Baker at theFoundation dinner.


Foundation celebrates progress(continued from page 17)

extended into 1997 to solicit morecompany partners and to distribute75,000 more brochures.

• $120,000 in “Advancing StudentAchievement” grants to six programsfrom among the 38 proposalsreceived from the United States and Canada to involve actuaries in tutoring and mentoring publicelementary school students in math

• $20,000 to develop a plan foranother consumer education initia-tive on the status and future ofMedicare, directed by the SOACommunications Department

The futureThe Casualty Actuarial Society, throughthe Actuarial Education and ResearchFund, has elected to become affiliatedwith the Foundation. The Foundationis now seeking a new name to betterreflect its expanded scope.

In addition, the Foundation has aworking agreement with the AmericanAcademy of Actuaries to maximize theresources of the profession in servingour publics.

With a grants policy and process inplace, the Foundation will continue toconsider other initiatives that will havean impact on society’s problems andenhance the public perception of theactuarial profession.

Pete Hepokoski, a Charter Investor, is taped at the Foundation dinner fora testimonial video shown the next morning at the SOA opening session.

With the PENCIL (Public Education:Nashville Citizens in Leadership)Foundation, the Nashville Actuaries Clubwas awarded a Foundation math tutoringgrant. It involves five schools, including onemade up principally of economically deprivedchildren and slated for closing in two years ifit does not improve its academic achievement.Nancy Tirril and Bob Johnston (pictured)from the PENCIL Foundation will assist inproject design and management.

Harry Ballantyne, chief actuary of theSocial Security Administration, speaksat a Chicago meeting of WEB (Workersin Employee Benefits) where the SocialSecurity brochures were distributed.

On the edge of changePutting SocialSecurity back in balance

With 70,000 brochures already distributed and 450 partner packages now in the hands of potential corporatepartners, the Foundation’s “On the Edge of Change” Social Security consumer education program has beenextended into 1997.


One of the six Foundation grants went to the Newman Elementary School in Chino,Calif., for a pilot math-across-the-curriculum approach and a math club. Actuariesat Blue Cross/Blue Shield of California and Cigna Health will become telementors tothe students. On the site visit, Joe Abel, Ph.D., Foundation program manager, is“knighted” by Student Council President Amy Cota.

Students at Liberty School in Springfield, Mass., will benefit from a grant to increasestudents’ critical thinking for real-world problem solving in math education. Its TitleI funding was cut this year, with no other grant to take its place. MassachusettsMutual Life Insurance has about 20% of its workforce already volunteering in theschool district. Mass Mutual actuaries Rick Breen and Bob Bartholomew will overseetutors for this pilot program.

$120,00 in grantmoney goes a longway in providingmath tutoring at six locationsacross the countrythrough thevolunteerinvolvement ofactuaries. Inaddition to theones pictured onthese pages,schools receivinggrants areWarren T.Jackson School inAtlanta, from a

proposal written by Teresa Winer, FSA,involving the Atlanta Actuaries Club;and the Benjamin Franklin School,Binghamton, N.Y., with actuaries fromSecurity Mutual Life working withstudents to develop a math-based project for the annual science fair.

Mark Newton, FSA, who works at JohnHancock in Boston, is known as “Mr.Financial Wizard” among these SamuelW. Mason Elementary School second-graders. The grant will be used to refinethe Hancock employee volunteer programalready at the school.

SOCIETY OF ACTUARIES

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