I am just returning from the ARA Board meeting in Key West. We had 9 inches of snow on the day that I left home. The trip was a great early winter get away!
During the meeting, each sister organization provided an update. Most of the ACOPA update related to Academy actions and subsequent vote. My impression from our presentation was that ARA and the sister organizations are in full support of our actions.
ACOPA members may have heard ACOPA leadership objecting when the Academy removed ACOPA and CCA from the Selection Committee. Then the Academy coordinated a member vote on multiple initiatives, and ACOPA leadership provided recommendations on votes that would support the pension actuarial community. The Academy vote closed Nov. 9 and on Nov. 12, ACOPA leadership communicated the results of the vote. Now, it is time for analysis!
My personal concern is that Enrolled Actuaries, especially ACOPA actuaries, are adequately represented in many aspects, including the qualification and discipline process in the actuarial community. ACOPA actuaries sign approximately 75% of the Schedule SBs and ACOPA is the only actuarial organization that solely represents the interests of Enrolled Actuaries.
As the Academy votes were being tabulated, the Casualty Actuarial Society (CAS) Board voted against the proposed merger with the SOA. It is not clear what the impact of a merger (or not) might have had on the Enrolled Actuary, but it is clear that actuarial organizations are in a state of flux and the interests of Enrolled Actuaries must be served.
The week of Nov. 5 included the much anticipated mid-term elections and for actuaries, there was more! The results of the Academy membership vote would be revealed.
The first initiative would have greatly expanded the authority of the Academy Board. For example, the number of signatures needed to bring a member-proposed initiative to a vote of membership would have increased from 3% to 15% of the total Academy membership voting and would also have allowed the Board to institute amendments to bylaws without member votes. Although the this proposal was not directly related to removing ACOPA and CCA from the Selection Committee, it might have allowed the Board to remove CCA and ACOPA from the Selection Committee without a membership vote. ACOPA leadership voiced their disapproval of the initiative.
Academy bylaws require a two-thirds vote to amend the current bylaws. Fifty-one percent voted in favor of the initiative, so it did not pass. There were more than 3,000 “no” votes. Certainly, ACOPA and CCA actuaries would have reason to oppose this amendment. The combination of the membership of CCA and ACOPA does not add up to 3,000, so there is clearly opposition to the expansion of Academy Board authority beyond CCA and ACOPA. Although I do not anticipate further action by the Academy Board, a clear message has been sent. Membership of the Academy does not support increased authority of the Board!
The second initiative was the "Sunshine Amendment,” which would have required Committee and Board meetings of the Academy to be open even to non-members. Karen Smith provided a Herculean effort to bring this issue to the forefront and secure 3% of Academy members to sign a petition to require an Academy membership vote. Quite candidly, input by Academy members such as Karen would improve the actions of the Academy Pension Committee!
The vote on the Sunshine amendment did not receive the needed two-thirds vote and will not become part of the bylaws. There were 2,700 votes in favor of the Sunshine Amendment. Again, this is a substantial number of votes against the recommendation of the Academy Board. In fact, the recommendation of the Academy Board was actually on the ballot. The Academy Board was clear on their position, and still a substantial number of Academy members voted against the Board’s recommendation.
As previously announced, ACOPA leadership formed the Standards Task Force to determine how to respond to Academy actions. The task force has already started to meet by conference call. All alternatives are on the table. Will the Academy change course so that significant action by ACOPA is not necessary? I do not expect so, but only time will tell. Alternatively, the Standards Task Force may need to act so that ACOPA has its own standards and disciplinary process.
Many of you have questioned whether to resign your Academy membership. It’s a personal choice, and ACOPA leadership has intentionally declined to make a recommendation. The deadline for paying Academy dues is Dec. 31, and they reflect a 6.3% increase from last year. You might consider waiting until close to the deadline to see what develops between now and the end of 2018.
Be sure to pay your ACOPA dues by Dec. 31!
Thank you for all your support, and please continue to let me or the leadership team know of questions you may have.
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