2007 Gray Book

[Guest Carol the Writer]

I wrote a seven-page paper, and I am planning to add a set of numerical examples, entitled "Theories of Dynamic Actuarial Optimization." It includes everything from Social Security, other entitlements, and long-term care insurance, to a specific Dynamic Programming mathematical model for optimal retirement (DB as well as DC) plan design.

I would like to submit this for the 2007 Gray Book for the 2007 EA meeting, as well as possibly get Core Credit for having done all of this. Does anyone out there know how I can go about doing this, and to whom I ought to send it for review and approval? Thanks! Carol Caruthers, MSPA, EA

[david rigby]

You might try contacting one or more of these individuals, from the introduction to the 2006 Gary Book:

The following representatives of the Enrolled Actuaries Program Committee attended the meeting:

Bruce A. Cadenhead, Mercer Human Resource Consulting

Curtis M. Cartolano, Hewitt Associates LLC

Marjorie R. Martin, Aon Consulting

John H. Moore, CCA Strategies LLC

Jay P. Rosenberg, Buck Consultants LLC

Donald J. Segal, CCA Strategies LLC

Kenneth A. Steiner, Watson Wyatt Worldwide

James Stinchcomb, Towers Perrin

[Guest Carol the Writer]

Thank you very much. Carol Caruthers

[Guest Texas_Acty]

I wrote a seven-page paper, and I am planning to add a set of numerical examples, entitled "Theories of Dynamic Actuarial Optimization." It includes everything from Social Security, other entitlements, and long-term care insurance, to a specific Dynamic Programming mathematical model for optimal retirement (DB as well as DC) plan design.

I would like to submit this for the 2007 Gray Book for the 2007 EA meeting, as well as possibly get Core Credit for having done all of this. Does anyone out there know how I can go about doing this, and to whom I ought to send it for review and approval? Thanks! Carol Caruthers, MSPA, EA

Don't mean to throw water on your plan for submitting your idea to a publication, but... your submission as described above is not likely to make it into the Gray Book. Not because of your topic, but for at least a couple of other reasons: (1) the Gray Book submissions that are published are mostly questions about a specific practical situation where the pension law or regulation is ambiguous or unresolved; your paper sounds like it is a broad theoretical treatise, which is outside the normal scope of the Gray Book, (2) the Gray Book Q & As are concise, generally only one page (I cannot recall ever seeing a Q & A of more than two pages.) Your paper is somewhat longer.

You should submit your paper to the SOA Transactions (Are these still published?) or the North American Actuarial Journal, or even The Actuary (the SOA newsletter). Good luck in any event!

[SoCalActuary]

Your concept sounds interesting. You could also publish to the Journal of Pension Benefits,

or to ASPPA, or other actuarial journals.

Your premise is interesting, in that the "Optimal" strategy is dependent on the "optimal" result.

What values are behind your premise? Please tell more.

[Guest FLMaster]

I think this would be better as an article- not really grey book material.

[Guest Carol the Writer]

The paper is divided into three parts. First is the history of pension plan regulatory since ERISA (yes, I go back that far!). The split personality of the Congress and various administrations since ERTA of 1981, first encouraging and next punishing the formation and accumulation of retirement savings. It discusses governmental, financial markets, and accounting instability as the reasons that - in my opinion - so many healthy plan sponsors are freezing or terminating their DB plans. Also, the first part discusses Social Security, the role of long-term care insurance as a part of limiting governmental exposure to the support of the dependent elderly. The new "partnership" long-term policies encourage individuals to purchase those policies by increasing the Medicaid "spend down" limit to the amount of the maximum long-term care benefits. Although Medicaid will pick up more benefits than it would under the prior spend down rules, the partnership provisions will help an elderly person to pay for a dignified old age.

Second, there is a theoretical model for looking at the range of possible pension plan alternatives - DB and DC - that are available when an employer considers sponsoring a retirement plan, given the employee census and the employer's budgetary concerns. There is a discussion of the interplay between the actuarial and the sales roles. This is all theory.

Finally, and this is almost finished, I am working on something I am calling "ANATOMY OF A PENSION SALE." This looks at an actual numerical example of an 18-life group for which I developed alternatives, costs and benefits. This is not quite finished, but it is nearly so.

It's all common sense to an actuary who has done this for a while, but I would still like to see if it is publishable. Thanks! Carol Caruthers, MSPA, EA

[david rigby]

I agree with others. Publishable? Yes. GrayBook? No.

[Guest FLMaster]

I can help you get it published. I wrote for Panel/Aspen and other publishers, although I am much more boring then on these boards.

[Guest Carol the Writer]

Please contact me at

Carol Caruthers, MSPA, EA

Consulting Actuary

Firmani Pension Services, Inc.

18 Grove Street

Haddonfield, NJ 08033

856-354-1300 (ph)

856-354-0038 (fax)

e-mail: ccaruthers@firmanibenefits.com

If you give me your full name and phone no or e-mail address, I will contact you. Also, I need a few more days to add a fourth section, "In Conclusion." Thanks! Carol Caruthers, MSPA, EA

[AndyH]

Why not ask Dave Baker if you can publish it here and we can disect and debate it?. That could get liively, i'n sure.