1. 2006 CAS Ballot Issues Jim Christie, Vice President-Admissions OCCA Meeting

2. Purpose of Presentation 1. Alert you that several Constitutional changes will be on the 2006 ballot 2. Let you know how to learn about these issues 3. Explain why the Board wants you to vote in favor of these initiatives

3. 2006 Ballot Questions Governance Initiatives Governance Initiatives ACAS Rights ACAS Rights

4. Governance Initiatives Add up to three appointed Board members Add up to three appointed Board members These appointments can include non actuaries These appointments can include non actuaries Adding the Executive Director to the Executive Council Adding the Executive Director to the Executive Council

5. ACAS Rights 1. Granting the right to vote upon the earlier of: Fellowship or five years after obtaining ACAS 2. Allowing five year associates to stand for election to the Board of Directors 3. Allowing five year associates to serve as officers (with some exceptions)

6. How to Learn More Task Force on Governance Report Task Force on Governance Report Chaired by Allan Kaufman Chaired by Allan Kaufman http://www.casact.org/members/reports/tfgovernance.htm Minutes of Board meetings – March 2006 Report on the Task Force on the ACAS Vote Report on the Task Force on the ACAS Vote Chaired by Amy Bouska Chaired by Amy Bouska http://www.casact.org/members/reports/TFACASVote.htm Minutes of Board meetings – May 2004, November 2005, January 2006, March 2006 “ Meet the Issues” section will be on our website “ Meet the Issues” section will be on our website

7. The Board’s Positions New class of Board members New class of Board members Executive Director on Executive Council Executive Director on Executive Council ACAS voting rights ACAS voting rights

8. The Board’s Position – New Class of Board Members (1) New Environment for Boards New Environment for Boards Sarbanes Oxley Act Sarbanes Oxley Act Penrose Report and Morris Review of Profession Penrose Report and Morris Review of Profession Increased responsibility for Board Increased responsibility for Board May need expertise beyond those elected May need expertise beyond those elected Better Decision-Making Better Decision-Making Broader input Broader input Change in dynamics of Board Change in dynamics of Board Move away from inward thinking Move away from inward thinking Focus on key issues Focus on key issues

9. The Board’s Position – New Class of Board Members (2) Perception Perception Change reflects prevailing opinion on governance Change reflects prevailing opinion on governance Positions CAS as outward looking and forward thinking Positions CAS as outward looking and forward thinking Other actuarial organizations have been forced to involve non-actuaries in governance Other actuarial organizations have been forced to involve non-actuaries in governance Act Now Act Now Current system is not broken Current system is not broken If it does break, another group may take over to fix it If it does break, another group may take over to fix it Intention of Board to Add Intention of Board to Add VP Casualty Practice Council VP Casualty Practice Council One non actuary One non actuary

10. The Board’s Position – Executive Director on Executive Council The Constitution established the membership of the Executive Council when we did not have an Executive Director (chief staff executive) The Constitution established the membership of the Executive Council when we did not have an Executive Director (chief staff executive) The change reflects our new organizational structure The change reflects our new organizational structure Needed to attract and retain qualified candidates Needed to attract and retain qualified candidates

11. The Board’s Position – ACAS Voting Rights Voting rights unchanged since 1914; reflect a time when there was a greater difference between classes. Voting rights unchanged since 1914; reflect a time when there was a greater difference between classes. Associates are an important part of the Society: Associates are an important part of the Society: Many Associates contribute extensively to the profession as volunteers, on committees, as speakers and authors, etc. Many Associates contribute extensively to the profession as volunteers, on committees, as speakers and authors, etc. Associates have equal practice rights. Associates have equal practice rights. Associates cannot vote even though they pay dues. Associates cannot vote even though they pay dues. Many associates are suggested for positions on the preferential ballot each year, but not eligible to serve. Many associates are suggested for positions on the preferential ballot each year, but not eligible to serve. 25-30% of Associates no longer take exams. 25-30% of Associates no longer take exams. Ought an ACAS have the same rights as a CAS member by Mutual Recognition? Ought an ACAS have the same rights as a CAS member by Mutual Recognition?

12. Conclusion Please take the time to learn about these important issues on the 2006 ballot Please take the time to learn about these important issues on the 2006 ballot Discuss these with other members Discuss these with other members Vote this summer Vote this summer Thank you!