The Future Actuary Volume 13, Number 3, Fall 2004

COVER story
   Your questions answered on the education redesign

A CANDIDATE's perspective
   Transitioning from Course 1 to Course 2

GLOBAL view
   So you want to work overseas...

CAREER focus
   Now you're the boss: Balancing the fine line of managing your former peers
   What is an arithmeter?

IN THE news
   ASNA offers opportunities for students worldwide
   Give your career a boost by mentoring

Be An Actuary web site
   Other Issues of the Future Actuary

Your questions answered on the education redesign

Fall exams are coming up, and before you know it, 2005 will be here, which is why we’re including some of the most frequently asked questions on the exam redesign. For more information, click on the Education & Jobs tab on the SOA Web site.

What alternatives do I have if I didn’t take applied statistics (or one of the other VEE subjects: economics, corporate finance) in college?
The VEE component does not require working candidates to go back to school to achieve the needed credits. It may be possible for candidates to use a distance learning option from another university or educational provider. CLEP (College Level Examination Program) and AP (Advanced Placement) credit will be accepted for economics. The Casualty Actuarial Society (CAS) is planning on offering optional examinations for these three subjects for a minimum of two years following the transition. The SOA will accept a passing score on those examinations as one means of satisfying the VEE requirement. The CAS and SOA are committed to ensuring that candidates will have a number of options available to them. We hope to make lists of other possible alternatives available later this year.

If I can demonstrate that I satisfy the VEE requirement, do I still have to take the new Exams P, MF, M and C?
Yes, the VEE requirement is separate from the requirement of passing all four preliminary education examinations.
If I already have credit for Courses 1-4, do I still have to document that I meet the new VEE requirement?
No. Credit for Course 2 will satisfy the VEE requirement for economics and corporate finance as well as grant you credit for the new Exam MF. Credit for Course 4 will satisfy the VEE requirement for applied statistics and will also grant you credit for the new exam C.

The CAS and SOA will only approve coursework from “recognized” colleges and universities. Does this mean that only courses from schools with actuarial science programs will be approved?
An actuarial science program is not required. The CAS and SOA intend to broadly review all course descriptions submitted and will approve courses that meet the defined learning objectives and criteria.

I have PD credit from the last conversion. How can I use that credit?
Candidates with PD credit from the last conversion will be able to submit a completed PD plan, starting on January 1, 2006 even if they have not met the normal PD filing requirements.

I’ve got lots of questions on the Fundamentals of Actuarial Practice (FAP) Course.
a. How much will each module cost? Pricing has not been determined.
b. How often will each module be available? We expect that each module will be available on demand. The eight modules must be completed in sequence. Candidates will be able to start and stop a module at their own pace until the module and its associated exercises are completed.
c. Can I take the modules even if I haven’t passed all of the preliminary exams? Yes, you may start on the modules prior to passing all four of the preliminary exams.
d. How much time will each module take to complete? Every candidate will complete the program at his or her own pace but on average we expect each module to take the typical candidate 30-50 hours to finish.
e. How often will the FAP examinations be offered? The schedule has not yet been determined. However, we anticipate three administrations per year at a minimum and are exploring ways to offer the two FAP exams more frequently.
f. Will the modules be available before 2006? No, we do not anticipate rolling out this element before 2006.
g. Do I have to complete the modules before taking the corresponding exam? Candidates will need to finish Modules 1-5 before taking the first examination and then they will finish Modules 6-8 before taking the second examination.
h. My Course 5 credit gives me credit for FAP Modules 1-5 and the first FAP exam. I don’t have credit for the current Course 7. Will the second examination cover material from the first five modules? While the modules do build on one another, anyone with the background provided in the syllabus readings for Course 5 (or the comparable Course 200 and 210) and successful completion of Modules 6-8 will be prepared to take the second FAP exam.

When can I submit for VEE?
We are not taking applications for VEE yet. Administrative plans will be announced later this year. We will require that candidates have credit for at least two of the four Preliminary Education exams prior to submitting transcripts in support of their VEE application. However, candidates and faculty will be able to submit information on courses so that candidates will know in advance if the courses they have taken will be eligible for VEE credit.

I took Course 120 in the previous system but didn’t earn enough credits to earn credit for one of the current preliminary exams (1-4), so my 15 units for Course 120 were converted to PD credit. I also didn’t take applied statistics in college. Can I use my Course 120 credit to satisfy the VEE requirement for applied statistics?
You will be able to choose to apply your 15 units of PD conversion credit, earned due to passing Course 120 in the pre-2000 system toward the validation of applied statistics. If you elect this option, 15 units of PD will be deducted from your conversion record.

I took Course 220 in the previous system but didn’t pass Course 230 so I didn’t receive credit for Course 6 via conversion. Is that credit worth anything?
You will be able to choose to apply your 30 units of PD conversion credit, earned due to passing Course 220 in the pre-2000 system, toward the validation of economics and corporate finance. If you elect this option, 30 units of PD will be deducted from your conversion record.

I have credit for Courses 1-6. If I pass Course 7 in late 2006, can I use the FSA level modules in combination for credit for Course 7 to get my FSA?
Requirements cannot be mixed between the two systems. If you do not pass Course 8 and complete PD, you will need to take both of the new FSA level exams to become eligible for the FAC.

Right now, I have several possible exam choices to make to earn my ASA. If I have credit for Courses 1-4, can I take the FSA modules and an FSA-level exam to finish my ASA?
If you have not completed your ASA under the current requirements by 2006, you will be subject to the new ASA requirements, which are namely three VEE subjects (economics, corporate finance and applied statistics); the four new Preliminary Education exams (P, MF, M and C) and the Fundamentals of Actuarial Practice (FAP) Course and the Associateship Professionalism Course (APC).

What credit do I receive from my E.A. (Enrolled Actuary) designation?
The volunteers working on the FSA component have not reached a point in their work to design a fair arrangement. We expect to have this information later this year. You can however, expect that the EA-2 exams will map to FSA-level components.

I have credit for Course 8P but not Course 8R. Do I qualify for conversion credit for the new Exam DP?
No, candidates in the Retirement Benefits specialty track must have credit for both 8R and 8P, or credit for PD to qualify for credit for the new Exam DP. Candidates must have credit for PD and both 8P and 8R to get credit for Exams DP and CSP. Candidates with only one of 8P or 8R will receive credit in the conversion but, as with the EA exams, the details have not been determined as yet.

I’m currently an ASA. What happens if I have credit for Courses 1-7 going into 2006 and I take and pass Course 8 in November 2006?
How can I get my Fellowship if you are discontinuing the PD requirement? You will have until June 30, 2007 to file your completed PD plan and earn your FSA designation under the current requirements.

I used PD as a component to fulfill my ASA designation. I do not have any conversion credit. If I don’t pass Course 8 by 2007, what conversion credit do I get?
We have made no distinction between ASA and FSA Professional Development credit. If you have fulfilled it at the ASA level and do not have credit for Course 8, you will still receive conversion credit for the new Exam DP.

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Transitioning from Course 1 to Course 2
by Erik Summers

Sooner or later, there comes a time in every aspiring actuary’s life, when he or she must undergo a rite of passage. Passing the Course 1 actuarial exam and transitioning to Course 2 is one of those times.

Arguably, every exam is just as important as the next, because all are necessary to receive the FSA designation. Yet, the path to fellow is not undifferentiated.

Course 1 is the only on-ramp to the actuarial exam highway, and consequently traffic is heavy. Students at any university taking Course 1, comprised of calculus and probability, are often able to enroll in classes that thoroughly cover the material. Also, many students sit for the first exam to learn about the profession, experience the exam process or secure an internship that pays well. As a result, the pass rate is often lowest for Course 1, though intrinsically it is not the most difficult exam.

On the other hand, only those who had the combination of skill, determination and luck to pass Course 1 take Course 2. The second exam’s greatest challenge is mastery of a variety of disciplines—theory of interest, economics and corporate finance. One moment the candidate must calculate the present value of an annuity due with monthly payments, and the next he or she must apply the effects of a particular IS-LM model on employment. Additionally, course work for the exam has a tendency to have less focus because finance and economics courses are often taught by professors who wonder why actuarial science majors are studying business rather than botany.

How can one tame the Course 2 beast? Learn the material and work problems from old exams—it’s that simple (and difficult). Unless you’re an unscrupulous computer whiz who can access the SOA supercomputer, there’s really no way around it. There are ways, however, to prepare more effectively.

Plan ahead
Several months before the exam, create a study plan. Undeniably, there will always be something more fun than studying. Without a schedule, it’s far too easy to delay until tomorrow, until tomorrow becomes exam day. Nevertheless, life happens. Therefore, leave some wiggle room, and don’t inflict physical harm upon yourself if you get off track. Realign if necessary and carry out the rest of the plan. After all, exams don’t require perfection; they require a “6”.

Aim high
Though only a “6” is necessary, preparing for an exam with the intention of squeaking by is a recipe for failure. As Course 3 teaches, contingencies always arise. Study for the exam as if an “8” or “9” were required, and don’t sweat when you come to the question that you could swear was written in Greek. Also, exam day pressure and sweaty palms can be minimized with confidence in your exam preparations.

Get tools
Turning to page 7 of this issue offers several vendors of exam study manuals. While these manuals are not sanctioned by the SOA, they can be quite useful. Whereas textbooks, with their dense text, involved proofs and extraneous material, are great for academia, study manuals make it their business to present material in a clear, condensed way that encourages passing scores on the exam day. Since there are many options, use your network to garner recommendations and determine which is best for you. Seminars, videos, flash cards and other accessories are also on the market. Although these materials aren’t free (unless your company is paying), there’s no shame in using the best tools available to pass the exam.

Link arms
One is the loneliest number. The same goes for actuarial exams scores and study habits. While individual study time is necessary, there will be occasions in which you’re looking for the corner in a circular room, or when you’d rather be undergoing a root canal than studying. At times such as these, the perspective and support of others is an invaluable asset.

Want it?
While you may become a more effective at studying and test taking as you progress through the exams, the material itself will not become any simpler. The series of eight actuarial exams en route to an FSA designation is a rigorous course of study. Nonetheless, the rewards are as great as the challenges. An FSA designation is the key to a well-compensated profession offering leadership opportunities, job security, the chance to live and work around the world, and the daily challenge of creating dynamic mathematical predictions in an increasingly complex world.

As an aspiring actuary, I believe the initial sacrifice to be well worth the future opportunities. Yet the important question is: What do you think? Whatever your answer, pursue it fervently. Because as President Teddy Roosevelt understood over a century ago, “Far and away the best prize that life offers is the chance to work hard at work worth doing.”

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So you want to work overseas...
by Susan Robertson

Editor's note: This article originally appeared in the July 2004 issue of The Actuary U.K. Reprinted with permission.

Actuarial skills do travel well—there is no doubt about it. However, the current job market is tight in many countries around the world and it is no longer as easy to sell your actuarial skills overseas. So, where do you start and what do you need to know?

Research your chosen destination carefully
You cannot start this too early, because you need to know how to improve your marketability to that location. The demand for type of work experience varies from place to place. For example, insurance actuaries are in higher demand than pension actuaries in most of the Asia-Pacific region. The level of qualification demand also varies. Employers will nearly always source junior candidates locally, so it is vital to progress well with the exams. Companies tend to look at overseas candidates mostly in the nearly qualified to 10 years post-qualification range.

Nontechnical skills are important too. In the current tight global markets, employers are looking for actuaries who are dynamic, commercially orientated business people, and to find these actuaries, they may need to look overseas. You must be able to demonstrate the successful development and use of these skills through your working experience. The earlier you start creating opportunities in your current role to develop and hone
these skills, the better. Gaining local language skills will definitely count in your favor!

Formulate an application strategy
At this stage, you need to keep a broad strategy in mind, whether this is mass marketing or selective targeting or a bit of both. A recruitment agency should help you think through your decisions on overall strategy and effective marketing to potential employers. They should have a good knowledge of, and access to, your chosen market. Select an agency that will provide you with honest advice, even if it is not what you want to hear!

The interview
International interviews can pose some difficulties. Telephone and video conferencing can be used for initial interviews, but are of limited use. Companies like to meet with candidates face to face. Thus, to increase the number of opportunities open to you, and also to demonstrate your commitment to relocating, you should visit the country at your own expense for interviews. At the more senior levels, companies may fund your travel expenses, but do not rely on this and remember the benefits of funding your own trip.

A plethora of offers
Hopefully, you will need to negotiate your way though one or more offers. Your agency will advise and assist you on this, but there are key points to remember. Generally, the best policy is to be open and upfront with any potential employers, rather than indulging in any power plays. Remember that in the current market, there is not a lot of room to maneuver in negotiating higher salaries. Companies are keen to see candidates who are more interested in the position than the salary. However, it is important to know when you should request the company to come to the table with a higher offer.

New experiences
For most considering an overseas move, new experiences are more important than salaries. The initial salary may not be what you had hoped, but cost of living and different taxation regimes may well leave you in a better position. Once you have gained region-specific knowledge and language skills, you are likely to command a higher salary. Do not expect your new employer to fund your relocation or provide an expatriate package—it is your choice to relocate, so think of a relocation benefit as an unexpected bonus.

From the moment you first conceive of the idea of working overseas, you will be excited. However, once the reality of accepting an offer overseas dawns on you, your excitement may start becoming overshadowed with a little healthy fear at the unknown. Stepping out of the comfort zone is never easy, but rest assured, the rewards will far outweigh the difficulties.

The most important advice we can give is that you keep an open mind in everything that you do. Think carefully before dismissing potential opportunities at an early stage. Get rid of all your preconceived ideas before you even start. Once you arrive in your new country, continue to keep an open mind. There will always be difficult times in the first few months. At times you will feel that you have done the wrong thing. Yes, things are done quite differently; some things you will find better than at home and some things you will find worse, but only you can ensure that the whole experience has a positive effect on your life and your career!

Susan Robertson is a recruitment consultant at Quantum Selection in the United Kingdom.

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Now you're the boss: Balancing the fine line of managing your former peers
by Glenda Maki

Remember the boss that you and your co-workers used to gripe about? Well, that person could be you someday!

Managing your friends or former peers is a tough business. Not only do you get to deal with your new day-to-day responsibilities, you also have to deal with people who may envy your new position—or may not agree that you were the candidate most worthy of promotion. Here are some pointers on how to assume your new position with the style and grace befitting a professional actuary.

Maintain your professional side
Your professionalism is probably one of the reasons you got promoted in the first place—and people don’t usually associate gossip with professionalism. This means no talking behind the backs of others on the team or in management, however tempting it may be. Your peers will have more respect for you as a manager and everyone else will appreciate your overall discretion.

However, just because you’re now a manager doesn’t mean that you have to exclude yourself from social situations with your peers. Once you’ve set the standard through your conduct, your team will know what to expect—and what not to expect—from you.

Be fair
In addition, it is important to treat everyone on the team equally, which means not always handing the plum projects to your close friends. In fact, it comes back to respect—if you distribute the work equally, you may win over team members who didn’t start out on your side.

Heather Majewski, 29, associate actuary at Hartford Life Insurance Company, has in several instances managed her peers. In one instance, she says, she had previously been very social with one of her team members, but found that in order to be fair as a manager she had to, “put those social feelings aside and focus solely on being a manager.”

Promote professional growth
Encourage your team members to take classes that will make them more well-rounded or enhance a particular skill. Or establish a mentoring program to help your team members develop. Majewski tries to make sure that she has plenty to offer her team. “If they do outgrow me, I hope that they’ll move on to be continually challenged.”

Earn their trust
Hold regular meetings to let team members discuss their concerns—and listen to them! Address problems immediately to help earn your team members’ trust. Your new position also gives you the opportunity to act as an advocate for your team and “talk them up” to upper management—as well as defend them when it’s necessary.

Realize that you’re not going to win everyone over in every situation
Devote your energies to being the best manager you can be and realize that you can’t be a best friend to everyone. You’re going to have to make difficult decisions at times, and sometimes you just have to live with the fact that others may talk about you behind your back. Majewski relates to an episode of Friends in which Chandler becomes a manager and is no longer part of the group. “Once you become a manager, it’s like you’re in a different world,” she says.

In the end, though, there definitely are benefits to working with your former peers. “When you are working with your former peers, it can be a lot easier to relate to them,” says Majewski. “You know when you’re getting through to them and when you’re not. And going to work is more fun because you’re working with people you like.”

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What is an arithmeter?
by Society of Actuaries

A tool of the trade? It was at one time. Elizur Wright, known as the “father of life insurance,” invented the arithmeter, patenting it in 1869. On display in the SOA office in Schaumburg, Ill., this arithmeter is one of four in the United States. According to the profile of Elizur Wright in the book Cambridge Sketches:

This machine was simply a Gunther rule 30 feet in length wrapped on a cylinder and turned by a crank. Gunther’s rule is a measure on which logarithms are represented by spaces, so that by adding and subtracting spaces on this cylinder Mr. Wright could perform the longest sums in multiplication and division in two or three minutes of time.

Built mainly of wood with brass slides, the arithmeter is not exactly your typical portable calculator.

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ASNA offers opportunities for students worldwide
by Donna Chiu, ASNA representative to The Future Actuary

Founded in 1989 by several students at Université Laval, the Actuarial Students' National Association (ASNA) represents actuarial students across Canada by maintaining relationships with the Society of Actuaries, the Casualty Actuarial Society and the Canadian Institute of Actuaries. We bring together students from various universities through an annual convention where students can interact with employers and other actuarial students. The convention keeps students up to date with the current job market and various topics in the actuarial field and helps them establish a rapport with the employers.

ASNA strives to prepare students for the challenges of the actuarial world outside of the classroom. We have expanded to western Canada and have more than 10 universities that collaborate on making the annual ASNA convention a success. In addition to the convention, we publish an accompanying magazine that deals with the topics presented at the convention in greater detail. This year we have established two expansion committees: one that focuses on developing relationships with actuarial students and one that focuses on relationships with employers around the world. As a result, we hope to reach a larger audience with the most relevant topics.

We welcome existing actuarial student organizations across North America to join us in enhancing actuarial students’ understanding of the field outside of an academic setting. Together, students all over North America can establish connections with other students and employers north or south of the border. Our goal is to promote communication throughout the actuarial profession at an early stage, and the convention is a great place to start. We encourage you to contact us at info@anea-asna.ca or visit www.anea-asna.ca for more information on joining ASNA and how you can get the most out of the actuarial field.

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Give your career a boost by mentoring
The most rewarding volunteer opportunity of your career?
by Debbie Scanlon, Actuarial Foundation project administrator

In the past, you may have been approached to volunteer for industry activities. And some of them may have interested you more than others. However, today you have the opportunity to get involved with a program that could be the most rewarding volunteer opportunity of your career. The Actuarial Foundation is actively seeking actuarial volunteer-mentors for ongoing school programs in Schaumburg, Ill.; St. Louis, Mo.; New York, N.Y.; Pittsburgh, Pa. and Milwaukee, Wis.

The Foundation’s Advancing Student Achievement program brings actuaries and educators together in voluntary partnerships to enhance student mathematics achievement. This program combines actuaries’ expertise in math with a sense of community spirit, creating a vehicle to work as volunteer math mentors in public and private schools. When business professionals and educators work together in voluntary partnerships that increase student achievement in math, everybody wins. More information can be found at: http://www.actuarialfoundation.org/grant/index.html.

If you can spare a relatively small amount of time to assist in an established math-mentoring school program, please contact Debbie Scanlon, project administrator at the Actuarial Foundation at asa@actfnd.org or call her at 847.706.3600. We hope you will consider mentoring a student today and making a difference in his or her future.

The Actuarial Foundation is a 501(c)(3) organization established in 1994 to help facilitate and broaden the actuarial profession’s contribution to society. The Foundation’s youth education program, Advancing Student Achievement, is one of our most successful initiatives serving our mission.

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From The Future Actuary, Vol. 13, No. 3, Fall 2004
Copyright 2004 Society of Actuaries
and Casualty Actuarial Society

Your questions answered on the education redesign Fall exams are coming up, and before you know it, 2005 will be here, which is why we’re including some of the most frequently asked questions on the exam redesign. For more information, click on the Education & Jobs tab on the SOA Web site. What alternatives do I have if I didn’t take applied statistics (or one of the other VEE subjects: economics, corporate finance) in college? The VEE component does not require working candidates to go back to school to achieve the needed credits. It may be possible for candidates to use a distance learning option from another university or educational provider. CLEP (College Level Examination Program) and AP (Advanced Placement) credit will be accepted for economics. The Casualty Actuarial Society (CAS) is planning on offering optional examinations for these three subjects for a minimum of two years following the transition. The SOA will accept a passing score on those examinations as one means of satisfying the VEE requirement. The CAS and SOA are committed to ensuring that candidates will have a number of options available to them. We hope to make lists of other possible alternatives available later this year. If I can demonstrate that I satisfy the VEE requirement, do I still have to take the new Exams P, MF, M and C? Yes, the VEE requirement is separate from the requirement of passing all four preliminary education examinations. If I already have credit for Courses 1-4, do I still have to document that I meet the new VEE requirement? No. Credit for Course 2 will satisfy the VEE requirement for economics and corporate finance as well as grant you credit for the new Exam MF. Credit for Course 4 will satisfy the VEE requirement for applied statistics and will also grant you credit for the new exam C. The CAS and SOA will only approve coursework from “recognized” colleges and universities. Does this mean that only courses from schools with actuarial science programs will be approved? An actuarial science program is not required. The CAS and SOA intend to broadly review all course descriptions submitted and will approve courses that meet the defined learning objectives and criteria. I have PD credit from the last conversion. How can I use that credit? Candidates with PD credit from the last conversion will be able to submit a completed PD plan, starting on January 1, 2006 even if they have not met the normal PD filing requirements. I’ve got lots of questions on the Fundamentals of Actuarial Practice (FAP) Course. a. How much will each module cost? Pricing has not been determined. b. How often will each module be available? We expect that each module will be available on demand. The eight modules must be completed in sequence. Candidates will be able to start and stop a module at their own pace until the module and its associated exercises are completed. c. Can I take the modules even if I haven’t passed all of the preliminary exams? Yes, you may start on the modules prior to passing all four of the preliminary exams. d. How much time will each module take to complete? Every candidate will complete the program at his or her own pace but on average we expect each module to take the typical candidate 30-50 hours to finish. e. How often will the FAP examinations be offered? The schedule has not yet been determined. However, we anticipate three administrations per year at a minimum and are exploring ways to offer the two FAP exams more frequently. f. Will the modules be available before 2006? No, we do not anticipate rolling out this element before 2006. g. Do I have to complete the modules before taking the corresponding exam? Candidates will need to finish Modules 1-5 before taking the first examination and then they will finish Modules 6-8 before taking the second examination. h. My Course 5 credit gives me credit for FAP Modules 1-5 and the first FAP exam. I don’t have credit for the current Course 7. Will the second examination cover material from the first five modules? While the modules do build on one another, anyone with the background provided in the syllabus readings for Course 5 (or the comparable Course 200 and 210) and successful completion of Modules 6-8 will be prepared to take the second FAP exam. When can I submit for VEE? We are not taking applications for VEE yet. Administrative plans will be announced later this year. We will require that candidates have credit for at least two of the four Preliminary Education exams prior to submitting transcripts in support of their VEE application. However, candidates and faculty will be able to submit information on courses so that candidates will know in advance if the courses they have taken will be eligible for VEE credit. I took Course 120 in the previous system but didn’t earn enough credits to earn credit for one of the current preliminary exams (1-4), so my 15 units for Course 120 were converted to PD credit. I also didn’t take applied statistics in college. Can I use my Course 120 credit to satisfy the VEE requirement for applied statistics? You will be able to choose to apply your 15 units of PD conversion credit, earned due to passing Course 120 in the pre-2000 system toward the validation of applied statistics. If you elect this option, 15 units of PD will be deducted from your conversion record. I took Course 220 in the previous system but didn’t pass Course 230 so I didn’t receive credit for Course 6 via conversion. Is that credit worth anything? You will be able to choose to apply your 30 units of PD conversion credit, earned due to passing Course 220 in the pre-2000 system, toward the validation of economics and corporate finance. If you elect this option, 30 units of PD will be deducted from your conversion record. I have credit for Courses 1-6. If I pass Course 7 in late 2006, can I use the FSA level modules in combination for credit for Course 7 to get my FSA? Requirements cannot be mixed between the two systems. If you do not pass Course 8 and complete PD, you will need to take both of the new FSA level exams to become eligible for the FAC. Right now, I have several possible exam choices to make to earn my ASA. If I have credit for Courses 1-4, can I take the FSA modules and an FSA-level exam to finish my ASA? If you have not completed your ASA under the current requirements by 2006, you will be subject to the new ASA requirements, which are namely three VEE subjects (economics, corporate finance and applied statistics); the four new Preliminary Education exams (P, MF, M and C) and the Fundamentals of Actuarial Practice (FAP) Course and the Associateship Professionalism Course (APC). What credit do I receive from my E.A. (Enrolled Actuary) designation? The volunteers working on the FSA component have not reached a point in their work to design a fair arrangement. We expect to have this information later this year. You can however, expect that the EA-2 exams will map to FSA-level components. I have credit for Course 8P but not Course 8R. Do I qualify for conversion credit for the new Exam DP? No, candidates in the Retirement Benefits specialty track must have credit for both 8R and 8P, or credit for PD to qualify for credit for the new Exam DP. Candidates must have credit for PD and both 8P and 8R to get credit for Exams DP and CSP. Candidates with only one of 8P or 8R will receive credit in the conversion but, as with the EA exams, the details have not been determined as yet. I’m currently an ASA. What happens if I have credit for Courses 1-7 going into 2006 and I take and pass Course 8 in November 2006? How can I get my Fellowship if you are discontinuing the PD requirement? You will have until June 30, 2007 to file your completed PD plan and earn your FSA designation under the current requirements. I used PD as a component to fulfill my ASA designation. I do not have any conversion credit. If I don’t pass Course 8 by 2007, what conversion credit do I get? We have made no distinction between ASA and FSA Professional Development credit. If you have fulfilled it at the ASA level and do not have credit for Course 8, you will still receive conversion credit for the new Exam DP.

Now you're the boss: Balancing the fine line of managing your former peers by Glenda Maki Remember the boss that you and your co-workers used to gripe about? Well, that person could be you someday! Managing your friends or former peers is a tough business. Not only do you get to deal with your new day-to-day responsibilities, you also have to deal with people who may envy your new position—or may not agree that you were the candidate most worthy of promotion. Here are some pointers on how to assume your new position with the style and grace befitting a professional actuary. Maintain your professional side Your professionalism is probably one of the reasons you got promoted in the first place—and people don’t usually associate gossip with professionalism. This means no talking behind the backs of others on the team or in management, however tempting it may be. Your peers will have more respect for you as a manager and everyone else will appreciate your overall discretion. However, just because you’re now a manager doesn’t mean that you have to exclude yourself from social situations with your peers. Once you’ve set the standard through your conduct, your team will know what to expect—and what not to expect—from you. Be fair In addition, it is important to treat everyone on the team equally, which means not always handing the plum projects to your close friends. In fact, it comes back to respect—if you distribute the work equally, you may win over team members who didn’t start out on your side. Heather Majewski, 29, associate actuary at Hartford Life Insurance Company, has in several instances managed her peers. In one instance, she says, she had previously been very social with one of her team members, but found that in order to be fair as a manager she had to, “put those social feelings aside and focus solely on being a manager.” Promote professional growth Encourage your team members to take classes that will make them more well-rounded or enhance a particular skill. Or establish a mentoring program to help your team members develop. Majewski tries to make sure that she has plenty to offer her team. “If they do outgrow me, I hope that they’ll move on to be continually challenged.” Earn their trust Hold regular meetings to let team members discuss their concerns—and listen to them! Address problems immediately to help earn your team members’ trust. Your new position also gives you the opportunity to act as an advocate for your team and “talk them up” to upper management—as well as defend them when it’s necessary. Realize that you’re not going to win everyone over in every situation Devote your energies to being the best manager you can be and realize that you can’t be a best friend to everyone. You’re going to have to make difficult decisions at times, and sometimes you just have to live with the fact that others may talk about you behind your back. Majewski relates to an episode of Friends in which Chandler becomes a manager and is no longer part of the group. “Once you become a manager, it’s like you’re in a different world,” she says. In the end, though, there definitely are benefits to working with your former peers. “When you are working with your former peers, it can be a lot easier to relate to them,” says Majewski. “You know when you’re getting through to them and when you’re not. And going to work is more fun because you’re working with people you like.”

What is an arithmeter? by Society of Actuaries A tool of the trade? It was at one time. Elizur Wright, known as the “father of life insurance,” invented the arithmeter, patenting it in 1869. On display in the SOA office in Schaumburg, Ill., this arithmeter is one of four in the United States. According to the profile of Elizur Wright in the book Cambridge Sketches: This machine was simply a Gunther rule 30 feet in length wrapped on a cylinder and turned by a crank. Gunther’s rule is a measure on which logarithms are represented by spaces, so that by adding and subtracting spaces on this cylinder Mr. Wright could perform the longest sums in multiplication and division in two or three minutes of time. Built mainly of wood with brass slides, the arithmeter is not exactly your typical portable calculator.

Give your career a boost by mentoring The most rewarding volunteer opportunity of your career? by Debbie Scanlon, Actuarial Foundation project administrator In the past, you may have been approached to volunteer for industry activities. And some of them may have interested you more than others. However, today you have the opportunity to get involved with a program that could be the most rewarding volunteer opportunity of your career. The Actuarial Foundation is actively seeking actuarial volunteer-mentors for ongoing school programs in Schaumburg, Ill.; St. Louis, Mo.; New York, N.Y.; Pittsburgh, Pa. and Milwaukee, Wis. The Foundation’s Advancing Student Achievement program brings actuaries and educators together in voluntary partnerships to enhance student mathematics achievement. This program combines actuaries’ expertise in math with a sense of community spirit, creating a vehicle to work as volunteer math mentors in public and private schools. When business professionals and educators work together in voluntary partnerships that increase student achievement in math, everybody wins. More information can be found at: http://www.actuarialfoundation.org/grant/index.html. If you can spare a relatively small amount of time to assist in an established math-mentoring school program, please contact Debbie Scanlon, project administrator at the Actuarial Foundation at asa@actfnd.org or call her at 847.706.3600. We hope you will consider mentoring a student today and making a difference in his or her future. The Actuarial Foundation is a 501(c)(3) organization established in 1994 to help facilitate and broaden the actuarial profession’s contribution to society. The Foundation’s youth education program, Advancing Student Achievement, is one of our most successful initiatives serving our mission.