From the Readers

The ABCD's Commitment to High Standards

Note: An edited version of the following letter was published November 26, 1999 by The Wall Street Journal. The letter, from Henry K. Knowlton, vice chairperson of the Actuarial Board of Counseling and Discipline (ABCD), responded to the newspaper's October 29 article reporting that the Labor Department planned to examine actuarial firms' role in helping employers convert to cash balance pension plans from traditional plans. The article reported that from its 1992 inception through 1998, the ABCD had disciplined "only" seven actuaries.

Dear Sir:

In her October 29 article in The Wall Street Journal, Ellen Schultz made reference to the Actuarial Board for Counseling and Discipline. As a member and former chairperson of the ABCD, I was more than disappointed by the dismissive tone of Ms. Schultz's comments.

The ABCD is a volunteer board that takes its responsibilities to the actuarial profession and the public very seriously. The number of actuaries who have been disciplined may seem relatively small in the abstract, but it must be remembered that the actuarial profession itself is minuscule compared to other professions. There are fewer than 18,000 actuaries in the entire United States. By contrast, there are more than 40,000 lawyers admitted to practice law in the District of Columbia alone.

Ms. Schultz's article fails to report that, from its inception, the ABCD has considered more than 150 cases that could have resulted in disciplinary action. Where the complaints were without merit, the ABCD dismissed them. In many cases, however, the ABCD offered specific guidance directing actuaries to improve their practices. Ms. Schultz also ignores the more than 100 instances where conscientious actuaries have voluntarily contacted the ABCD requesting guidance on how to deal with thorny professional issues.

The ABCD is committed to maintaining the high standards of conduct, practice, and qualification of the actuarial profession. I would urge Ms. Schultz not to be so quick to dismiss the valuable service that the ABCD provides to the actuarial profession and the public.

Sincerely,
Henry K. Knowlton
Vice Chairperson, Actuarial Board for Counseling and Discipline

Election Headline is Inaccurate

Dear Editor:

I'm sorry to be the one to tell you that your lead headline for this issue (The Actuarial Review, November 1999) is just plain wrong. The president of the CAS is not elected but assumes the office at the end of the term of his/her predecessor (see page 226 of the 1999 Yearbook-Article IV, Section 2). The last president of the CAS to be elected was LeRoy Simon in 1971. As Alice Gannon now knows I was the president-elect during his term and succeeded him without being elected. You can verify this by reference to page 46 of the 1974 Yearbook, which is contained in Volume LX (1973) of the Proceedings.

You may be unaware that I have recently called this to the attention of Alice Gannon and she has informed me that the next Yearbook will set this matter straight. You can help by printing a black-letter retraction in a prominent place in your next issue. Please!

Charles C. Hewitt Jr., FCAS

Editor's Note: The Actuarial Review staff thanks Mr. Hewitt for his input. We stand corrected.

And Finally....

Dear Editor:

I received my copies of the August and November Actuarial Review just a couple days ago, and there were at least two items in the August issue that I feel I can comment on.

The piece on Bob Bailey's receiving the Robert J. Myers Public Service award from the American Academy of Actuaries did not mention, in the list of all his other accomplishments, that in 1993 the CAS awarded Bob the Matthew Rodermund service award. The creation of this award by the CAS preceded the Academy award by some years, and Bob got the award for the same reasons that he got the Academy award. He deserved it and it should not be overlooked.

Also in the August issue was a portion of Paul Liscord's column in the October 1974 issue, with a note that there were only three issues of The Actuarial Review in 1974. The reason why there were only three issues in 1974 is that The Actuarial Review was founded in 1974, and there was simply not enough time for four issues.

The August issue contains an article headed "What Is an Actuary?" It reminded me that when I first came to Medford Leas, a retirement community, in 1982, I was identified as an actuary, and other residents were curious about what an actuary is. So I wrote something for the Medford Leas newsletter, and a copy of it is enclosed. Do with it what you will.

Matthew Rodermund, FCAS
Actuarial Review Editor Emeritus

Editor's Note: See Mr. Rodermund's article.