SOA BOARD OF DIRECTORS October 16-17, 2010 Business Report Packet 2010.pdf · SOA BOARD OF...

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SOA BOARD OF DIRECTORS October 16-17, 2010

Business Report

FROM: Finance Committee DISCUSSION Mark Freedman, Secretary/Treasurer LEADER(S): Stacy Lin, Deputy Executive Director/CFO TAB #: B6 SUBJECT: Draft Budget 2011 MOTION: The Board of Directors approves the 2011 budget The 2011 budget reflects an expansion of services to our non-U.S. members. We will provide three seminars and six webcasts in Mandarin for our Chinese members, and two seminars and four webcasts on Canadian-specific topics for our Canadian members. The budget also includes a significant investment in research activities on current actuarial issues. Additional operational commitments and strategic initiatives included in the 2011 budget are highlighted below. The operational commitments include: • Transition of exam MFE to computer-based testing in 2011 • Continue to offer two fellowship exams per year • Continue to support and update the Learning Management System (LMS) and e-Learning platform • Market research; i.e., FSA exam candidate survey, actuarial salary survey, bi-annual member and

candidate survey, employer attitudes and awareness study, and focus groups • Research initiatives related to retirement and healthcare • Investment in a content management system to structure content and provide better search results • Continue to support the PD Committee and the competency framework with new PD-related

modules and a new learning management system • Membership database improvements visible to the members The 8 strategic initiatives reviewed by the IAC include: • Intellectual Capital Framework - Research • International Membership Strategy • Opportunities for Actuaries in Business Analytics • Reputational Risk (Phase 1 – Public Pension Plans) • Canadian Member Engagement • Branding Enhancement • Membership & Candidate Engagement • Interorganizational Synergy

The strategic initiatives will be discussed during the Board meeting under item DISC4. The Finance Committee serves as a Board of Directors oversight group for the financial affairs of the organization under the direction of the Secretary/Treasurer. The Finance Committee reviews the monthly financial statements and other financial information at each Finance Committee meeting. The most recent financial information and dashboard analysis is included in the consent agenda at each Board meeting. If issues arise, programs are modified to protect reserves while providing member services and furthering the mission.

Society of Actuaries 2011 Draft Budget-Management Basis

Submitted by: Mark FreedmanVice-President Secretary/Treasurer

B6 2011 Draft Budget 1 of 26

Page 1

Overview of the 2011 Draft Budget September 15, 2010

Summary Revenues for 2011 are budgeted to be $40,342,160 and expenses are budgeted at $40,148,780 with a change in net assets before investments of $193,380. The budgeted membership equity percentage at year-end 2011 is 67%. The table below shows the comparison from projection 2010 to budget 2011:

Projection 2010

Budget 2011

Revenues $37,860,500 $40,342,160Expenses $34,882,340 $40,148,780Change in Net Assets before Investment Income $2,978,160 $193,380Membership Equity – End of Year 66% 67%

Given this strong financial position, very few fee or registration fee increases have been proposed for the 2011 budget. We’ve also been able to provide significant funding for strategic and operational initiatives.

This summary is intended to give members of the Board a good sense of what the budget proposal intends to accomplish. Additional details are provided by departments beginning on page 7, following the summary.

The Budget Process Each year, budget proposals are created by individual department managers and discussed with the Executive Team. Subsequent discussions resolve open items, coordinate resources and finalize the draft budget. Once complete, the draft budget is reviewed by the Secretary/Treasurer and Finance Committee. The first draft of the 2011 budget was presented to the Board at the June meeting for input and comments. The second (and final) draft of the budget is presented to the Board for approval at the October meeting.

Dues and Fees

• Member Dues: The 2011 member dues rates are held at the 2010 level of $575 for FSAs and career ASAs, and $290 for ASAs. This will be the fifth year the SOA has not increased its member dues.


Page 2 • Basic Education: We are continuing to align exam fees with the changing format and frequency of exams — a process begun last year.

- The draft budget proposes a $50 per exam increase (from $975 to $1,025) for FSA exams. This increase is intended to offset expenses related to the SOA’s decision to offer all Fellowship exams twice annually. The anticipated increased expenses, budgeted at $500,000, include longer question writing and exam grading sessions (and, thus, more expensive) for volunteers at Central Review and Grading, and more volunteers. Details on activities needed for the FSA 2X project were provided to the Board last October. The increased fee does not cover all expenses, but is expected to generate about $177,000.

- The budget proposes a $75 increase (from $200 to $275) for the MFE exam and is intended to address the added cost of moving this exam from pencil/paper to computer-based testing and the added length of the exam. The per-candidate cost is $64 for US, $106 for Europe, and $117 for Asia. The $75 increase is a blending of the per candidate cost. The fee increase aligns the cost of this exam with MLC and C, which are similar in length and content. The impact is $520,000 in additional revenue versus an estimated cost of $675,000 ($115,000 for set-up and development fees, and $555,000 budgeted for the per-candidate fees).

• Professional Development –There are no proposed fee increases for PD in the 2011 budget. The 2011 budget for all PD events reflects an anticipated

increase in the number of attendees over 2009 actual attendance, consistent with our 2010 year-to-date results.1

Expenses of Interest In addition to ongoing program funding, the draft 2011 budget funds a number of important new and continuing initiatives. Several major planned initiative expenditures are highlighted below to give members of the Board a good idea of what the budget seeks to accomplish.

• Research – We are continuing to add resources to our research activities, in line with our research mission. This budget includes the Board’s approved funding of $430,000 for the Rapid Retirement Research pilot project. We have hired a new research actuary for this initiative (with an employment end date set for the conclusion of the pilot) and IT-related expenses. There is several additional research projects proposed for 2011, as the SOA has been increasing its focus on research, and if the initiatives below are approved by the Board, will continue to do so.

- Reputational Risk (Phase 1 – Public Pension Plans) – To address issues that present significant reputational risk to the actuarial profession. In light of the current public issues surrounding public pensions the SOA is looking to provide analysis of public pension data. This research will inform the Board of the issues and provide options for response. The amount included in the budget is $100,000 for a research project.

1 Virtual sessions - We are planning a total of 17 virtual sessions offered at the Annual Meeting, Spring Meetings, and Valuation Actuary Symposium. The pricing structure planned is the same as 2010 for virtual sessions; $139 for 1-2 people, $299 for 3-6 people and $539 for 7 or more. Webcasts - The budget reflects 60 planned webcasts for 2011, including 10 devoted to our China region members and to Canadian-specific issues. The total of 60 webcasts represents an expected increase over 2010 by 10 webcasts. The draft budget continues the 2010 tiered pricing structure as follows; $99 for 1 person; $175 for two people at one site; 250 for 3-5 people; $375 for 6-8 people; $500 for over 9 people. Staff will be prepared to address questions about this structure, including pricing used by other actuarial organizations.


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- Health Actuarial Research Post-Reform Opportunities – With the passage of the Patient Protection and Affordable Care Act, now is the time to research actuarial opportunities beyond their traditional scope and audience. This research will supplement our existing research capabilities to involve a quicker process and wider scope for health actuaries. The budget includes $300,000 for a research project.

- Opportunities for Actuaries in Business Analytics - This initiative is intended to determine whether significant new opportunities exist for actuaries in the field of business analytics and, if so, what initiatives the SOA should undertake to exploit and develop these opportunities. A market research study will be conducted for $200,000.

- CAE Research grants – Two grants were awarded in 2010 and will be supported through 2013 with two new grants being awarded annually. The budget includes $490,000 in 2011 for four research/educational grants.

- Intellectual Capital Framework - Research – This would be phase III of the Intellectual Capital Framework initiative, with a focus on the SOA’s research strategy. The focus would set priorities for research with regards to target audiences, type of research produced, oversight structure and source and allocation of resources. The budget includes $30,000 for travel related expenses for the Develop Knowledge Team (DKT).

• Professional Development Redesign – We’re continuing work on the PD Redesign through the creation of additional PD modules centered on the

competency framework. Anticipated expenses for these new modules are approximately $175,000. The modules are a capital expenditure and will be depreciated over two years. Another major capital expense associated with the PD Redesign is the identification and purchase of a new learning management system (LMS) — the system that will hold PD e-learning content. The capital expense for this system is anticipated to be approximately $100,000, capitalized over five years. The total cost (including capital expenditures) for this initiative is budgeted at $336,250, which also includes consulting services and travel related costs for the committee.

• Knowledge Blueprint – As a result of ongoing work by the DKT, we anticipate an important project to better analyze and structure the SOA’s “intellectual capital” or “content”, making it much easier to find and access. Expected activities include developing a content taxonomy, tagging content, looking at all the research activities of the SOA, and selecting a Content Management System (CMS) to support the large library of information. The CMS will integrate with the SOA’s membership system (Personify), and the LMS for education, and the LMS professional development. The amount included in the budget is $447,500, of which $220,000 will be capitalized over five years.

• Brand Enhancement and Member and Candidate Engagement – The Issues Advisory Council developed a recommendation for the Board that work under the Marketing and Market Development Plan (MMDP) be split into two separate initiatives. Brand Enhancement would focus on the actuarial brand, primarily by raising visibility of actuaries through the media, with $700,000 allocated in the budget for this initiative. Member and Candidate Engagement would broaden the SOA’s channels for engaging members and candidates. Examples include broader acceptance of social media, ongoing member communications and increasing focus on engagement at local venues due to increasing financial, geographic and time constraints. Our student outreach activities would also be included in the initiative scope of work. The amount included in the budget is $400,000 primarily for outside consulting services.

• CERA marketing efforts will continue to be designed around a dual supply and demand approach. We will target employers and recruiters on the demand side and current actuaries, candidates and students on the supply side. We have budgeted $919,000 for marketing the CERA.


Page 4 • International Membership Strategy – in order to provide greater service to our international members and provide programs that will help our members

fulfill their CPD requirements, we have added three seminars and six webcasts (Mandarin language) in the China region. We have added funding for support staff, focused on the China region, to assist with the creation and support of the seminars and webcasts specific to the China region. Also, included is international travel to allow for a Presidential officer to accept invitations to speak in the China region. Total funding for these efforts is budgeted at approximately $180,250. This is exclusive of ongoing commitments to the International Actuarial Association for membership dues and delegate travel.

• Canadian Member Engagement– Approximately 18% of our membership resides in Canada. This initiative intends to increase engagement with and services to Canadian members with the objective of increasing the SOA’s value to those members and their satisfaction with the SOA. We are planning for two seminars and four webcasts dedicated to Canada-specific topics. A staff actuary would be employed to establish a partnership with the CIA and provide a local presence as a representative to Canadian members. The budget is approximately $311,650, which includes travel expense in addition to salary and benefits.

• Personify II – The SOA has completed a major upgrade of its membership database in 2010, to Personify. Personify II will take advantage of new system functionality such as enhancements to the Online Directory, providing better e-commerce options to members, supporting downloadable online publication purchases, member publication customization options, and other member services. The amount included in the budget for this effort is $170,000, capitalized over five years.

• Staff Positions - Four new staff positions are included in the draft budget to support various initiatives, while three positions were eliminated (one HR, one professional development and one administration). The new positions include:

- Research analyst (market research) to assist with current and emerging research needs including actuarial salary survey, member and candidate survey analysis and cohort study.

- Business Analyst to assist with fluctuation and business process analysis for exam and professional development, benchmarking with other organizations, margins, and financial projections for new member services.

- Retirement Actuary for the “Rapid Retirement Research” initiative

- A staff actuary to coordinate and assist with activities in direct support of our Canadian members.

The following three pages are the numeric summary of the 2011 draft budget. Following the summary level information is the department level assumptions and budget detail that support this summary.


Draft 9/28/2010

Page 5

Actual Actual Budget Projection Budget Forecast Forecast Forecast2008 2009 2010 2010 2011 2012 2013 2014

Revenues:Membership Dues 9,550,622 9,876,678 10,200,000 10,159,000 10,450,000 10,554,500 10,660,045 10,766,645Basic Education 19,033,335 18,345,907 19,770,800 20,002,750 21,181,200 21,604,800 22,036,900 22,477,600Professional Development 5,708,266 4,876,845 5,813,500 5,236,000 5,766,360 5,888,500 6,088,300 6,408,000Actuarial Research 1,155,484 1,197,957 1,400,250 1,400,250 1,450,100 1,479,100 1,508,700 1,538,900Sales of Publications 240,490 194,268 200,000 163,300 213,000 217,300 221,700 226,200Web Revenue 184,929 134,107 200,000 121,200 110,000 112,200 114,400 116,700Other Revenue 630,346 944,088 896,400 778,000 1,171,500 1,194,700 1,218,300 1,242,300Total Revenues 36,503,472 35,569,850 38,480,950 37,860,500 40,342,160 41,051,100 41,848,345 42,776,345

Expenses:Basic Education 11,574,570 12,903,355 14,523,400 13,719,200 15,428,700 15,723,660 16,006,800 16,375,600Professional Development 4,902,037 5,089,830 5,264,350 4,915,300 5,310,950 5,405,300 5,531,000 5,659,800Actuarial Research 2,909,049 2,967,513 3,352,400 3,215,250 3,540,390 3,616,100 3,693,900 3,773,600Membership Services 4,461,245 4,738,202 5,857,260 5,013,790 6,818,130 6,505,180 6,666,870 6,832,570Marketing 2,981,094 3,316,901 3,838,550 2,805,100 3,419,480 3,507,200 3,597,200 3,689,700Administrative 5,644,323 4,100,759 4,052,790 3,817,000 3,931,010 4,357,500 4,472,500 4,590,400International 563,231 645,358 900,000 952,200 1,025,120 1,046,200 1,068,000 1,090,100Foundation Support 320,600 325,000 325,000 325,000 325,000 325,000 325,000 325,000Strategic Pool 89,500 152,211 350,000 119,500 350,000 350,000 350,000 350,000Total Operational Expenses 33,445,649 34,239,129 38,463,750 34,882,340 40,148,780 40,836,140 41,711,270 42,686,770

Change in Net Assets before Investment Income 3,057,823 1,330,721 17,200 2,978,160 193,380 214,960 137,075 89,575Write Off of Equipment (14,787) 0 0 (8,470) 0 0 0 0Net Investment Income (774,332) 637,986 356,900 591,480 390,000 429,000 471,900 519,100Change in Net Assets 2,268,704 1,968,707 374,100 3,561,170 583,380 643,960 608,975 608,675

Membership Equity-Beginning of Year 18,817,197 21,085,901 23,054,608 23,054,608 26,615,778 27,199,158 27,843,118 28,452,094Membership Equity-End of Year 21,085,901 23,054,608 23,428,708 26,615,778 27,199,158 27,843,118 28,452,094 29,060,769

Membership Equity as a % of Expenses 62% 66% 58% 66% 67% 67% 67% 67%


Statement of Activities


Draft 9/28/2010

Page 6

Actual Actual Budget Budget Forecast Forecast Forecast2008 2009 2010 2011 2012 2013 2014

Expenses:Salaries 8,466,840 9,248,398 9,618,400 10,567,300 11,210,800 11,549,200 11,897,800Travel 2,358,779 2,711,068 2,985,085 3,207,840 3,271,800 3,337,400 3,404,200Printing 1,102,542 1,036,939 1,233,900 1,102,350 1,124,400 1,146,800 1,169,700Retirement & Employee Benefits 2,367,897 2,393,713 2,587,500 2,859,600 2,948,100 3,031,000 3,124,900Postage & Mailing 734,863 621,290 753,480 521,750 532,200 542,800 553,600Rent & Utilities 1,044,722 1,012,158 1,046,500 1,168,100 1,191,600 1,215,300 1,239,600Cost of Experience Studies 827,972 844,891 1,000,000 1,050,000 1,071,000 1,092,400 1,114,200CBT, Grading & Analysis 2,322,502 2,776,340 3,209,900 3,727,300 3,801,800 3,877,800 3,955,400CAS/Actuarial Org. Payments 282,361 253,612 265,100 270,000 275,000 280,100 285,300Special Supplies & Services 611,428 1,108,247 1,578,300 1,615,800 1,648,200 1,681,100 1,714,800Market and Member Research Studies 163,725 104,625 207,000 275,000 280,500 286,100 291,800Audio Visual Expense 798,525 768,283 785,700 783,800 799,400 815,300 831,600Hotel & Related Costs -Annual Meeting 405,525 503,043 478,100 440,890 449,700 458,700 467,900Hotel & Related Costs - Spring Meetings 348,226 302,224 308,600 348,200 355,200 362,300 369,500Seminars & Other Room Rentals 2,497,694 2,346,458 2,331,900 2,539,100 2,589,900 2,641,800 2,694,700Research Projects 491,291 489,425 575,000 1,255,000 860,000 860,000 860,000Computer Expenses 1,275,306 1,252,452 1,716,100 1,407,650 1,340,480 1,361,070 1,382,070Telephone 156,920 160,855 155,100 165,400 168,700 172,100 175,500Miscellaneous 110,652 127,122 93,550 92,050 94,000 95,900 97,800Honoraria 321,653 319,317 306,900 352,300 359,400 366,500 373,800Exam Center Costs 158,496 138,650 129,700 126,800 129,300 131,900 134,500Professional Fees 3,104,379 1,865,276 1,972,000 1,806,880 1,851,200 1,896,600 1,943,200ABCD/ASB (SOA Portion) 106,392 134,226 217,330 145,100 148,000 151,000 154,000Stationery & Supplies 114,248 94,838 131,300 100,900 102,800 104,700 106,700Exhibit & Special Promotions 64,270 76,337 91,600 77,380 79,000 80,600 82,300Insurance 225,919 295,374 295,700 283,530 289,200 294,900 301,000


Statement of Expenses by Account Type


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Statement of Expenses by Account Type (cont):Staff Education and Training 88,609 163,948 151,770 108,310 107,800 110,100 112,400Human Resource Expense 164,226 146,962 67,985 116,000 121,200 123,700 126,200Pres., Pres. Elect Discretionary 18,672 44,114 20,000 25,000 25,500 26,000 26,500PhD/CAE Grants 72,500 103,357 345,000 740,500 765,660 721,600 767,400Depreciation 1,683,783 1,920,641 2,508,250 1,576,500 1,524,100 1,557,100 1,570,000Library Acquisitions/Subscriptions 36,249 44,777 35,000 40,000 50,800 51,800 52,800Academic/Government Travel 11,971 8,867 27,600 15,000 15,400 15,800 16,200Public/External Relations & Sponsorships 33,413 33,068 28,500 38,500 39,300 40,100 40,900Temporary Help 281,216 138,562 140,300 52,700 53,700 54,800 55,900Equipment Maintenance 10,502 14,601 11,900 15,200 15,000 15,600 15,800SoA portion of Asian Joint Office 74,459 78,138 81,000 82,000 83,600 85,300 87,000Waivers Not Related to Meetings 175,545 206,102 213,200 215,800 220,100 224,500 229,000International Waivers & Discounts 28,964 23,103 32,000 25,000 25,500 26,000 26,500Taxes 29,569 1,486 40,000 35,000 35,700 36,400 37,100Strategic Pool Expense 89,500 152,211 350,000 350,000 350,000 350,000 350,000Total Expenses 33,445,649 34,239,129 38,463,750 40,148,780 40,836,140 41,711,270 42,686,770


Statement of Expenses by Account Type (continued)


Tom Bakos

Highlight

Draft 9/28/2010 Page 8

The following is a summary of significant assumptions for each area of the SOA 2011 budget.Basic Education (page 15)

Actual Actual Budget Projected Budget2008 2009 2010 2010 2011

Number of Exam Registrations* 54,201 58,747 67,176 64,267 66,474*It is difficult to compare the number of candidates administered over the years reflected above due to variations in the number of exam sittings.

Preliminary Education (PE)

Society of Actuaries

Budget Assumptions & Information by Department 2011 Draft Budget-Management Basis

For the second year a staff actuary has extensively reviewed the budgeted exam candidates. A robust model was created that considered probabilities of a candidate progressing through the exam system. Trending analysis was used from 2006 - mid 2010. Three different approaches were reviewed; pessimistic, realistic, and optimistic. The budget reflects the pessimistic approach; which assumes a 1% decrease from 2010 budget's pessimistic approach. This year the budget includes $50 increase for the FSA exam fees due to offering the FSA exams twice per year. The increased revenue of $177,000, will help cover the costs for longer question and grading sessions as noted below. MFE is increased by $75, resulting in additional revenue of $520,000, due to the additional per candidate cost for computer based testing (CBT). In addition to the per candidate cost, the development costs relating to the development of a bank of exam questions is high for the first few years. The fee increase aligns the cost of this exam with MLC and C, which are similar in length and content.

The fixed cost for computer based testing for exam P, FM, C, and MFE is $114,000, $250,000, $83,000, and $115,000 respectively. In addition, the SOA pays FAP consists of eight web-based education modules and two assessments. The fellowship level modules (FSA) consist of multiple modules with exercises. Modifications and enhancements such as audio casts and excel capabilities continue to improve the candidate experience. These modifications and enhancemento the modules are budgeted at $320,000, which will be capitalized and depreciated over three years.

At the October 2009 Board meeting, $500,000 was approved to host FSA exams twice per year. The costs are primarily for travel, hotel and staff support for a part-time staff member to attend committee meetings, longer question writing and exam grading sessions, and a longer overall format. The budget includes an expenditure of $20,000 for a consultant to provide a comprehensive case study and e-learning design that will follow the exam material for the AFE and FETE course. This will be a pilot program and if successful similar courseware will be developed for the other FSA exams. Additional travel expense of $16,000 was budgeted for restructuring of the retirement exams.




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PhD/Fellow Stipends 2011 2011 40,000 290,500 70,000 200,000 100,000 TOTAL 490,500

TOTAL 210,000

Professional Development summary on page 16, further details on pages 17-19

I. Annual Meeting Fees and Attendance (page 17)

Pd. Attend. Fee Pd. Attend. Fee Pd. Attend. Fee Pd. Attend. Fee

Member 1,233 $995 1,463 $995 1,200 $995 1,225 $995Speaker 122 $650 184 $650 125 $700 162 $700

Exhibitor 0 $0 136 $0 75 $700 150 $700Guest/Academic/Gov 69 $150 110 $150 50 $150 50 $150

II. Spring Meetings (page 18)


Member 656 $995 435 $995 540 $995 236 $995Speaker 87 $600 61 $600 100 $600 60 $600

Guest/Academic/Gov 25 $125 14 $125 32 $150 12 $150

Boston

Actual 2008

Orlando

Registration fees remain at the same level as 2010. Revenue includes $28,300 from the sponsorship program. Revenue from virtual attendees is budgeted at $60,000 with $29,500 in expense for the live audio visual feed at the meeting. The 2011 annual meeting is held in Chicago which reduces the need for staff travel expense. Food and beverage costs were reviewed closely and reduced.

New York

Budget 2010 Budget 2011Chicago

Actual 2009Toronto (3 days)Quebec (2 days +1 CIA/CAS)LA (3 days)

Actual 2009

Denver (2 days)

Additional items include: $45,000 for a one day meeting in Chicago for each CAE school to share best practices, discuss potential joint activities and brainstorm ways to connect to the profession; and $36,000 for a reception for the Hickman Scholars, to be held in conjunction with the annual meeting.

Actual 2008

2011 stipends - 5 new stipends

The budget provides for the continuation of PhD/Fellow stipends and CAE grants from previous years along with new Ph/D/Fellow stipends and CAE grants for 2011. Each Ph/D/Fellow stipend is an annual commitment for five years. CAE grants may be supported up to four years. The chart below outlines the award payments for 2011.

2010 grants - year 22011 - 2 new grants

CAE Grants2009 stipends - year 32010 stipends - year 2




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Member 534 $995 373 $945 550 $995 380 $995Speaker 103 $600 58 $600 110 $600 60 $600

Guest/Academic/Gov 30 $150 8 $150 12 $150 10 $150

III. PD Seminars (page 19)1.5 days Valuation Invest. Sym. ReFocus Living to Equity

Seminars 1 day & 2 days Actuary 1.5 days Symposium 100 Based# of Sessions - US 14 6 1 1 1 1 2# of Sessions - Canada 0 2 0 0 0 0 0# of Sessions - China 0 3 0 0 0 0 0Budgeted Attendance 50 20 759 173 263 214 100Early Bird Fee $800 $850 $875 $1,275 $895 $995 $0Total Net Revenues* $303,200 $178,000 $572,256 $212,400 $423,400 $223,500 $298,200*includes sponsorship revenue and less payouts to sections or partners

Webcasts Virtual e-CoursesArchived Webcasts

Archived Virtual

Sessions# of Sessions - US 50 17 18 300 100# of Sessions - Canada 4 0 0 0 0# of Sessions - China 6 0 0 0 0Total # of Sessions 60 17 18 300 100Total Net Revenues $540,600 $107,620 $67,500 $29,700 $13,900

Orlando (3 days)

Actual 2010

Tampa (2 days + PD Symposium) Boston (3 days)

Budget 2011New Orleans (Life & Annuity

Symposium)

Existing sponsorship agreements continue to support Val Act, Investment Symposium, ReFocus, Living to 100, Equity Based Insurance and webcasts.

Externally-sponsored events include the Equity Based Insurance, the Life Insurance Conference, Reserve Week, Critical Illness Insurance Conference, Disability Income/Long Term Care Insurers' Forum and the Retirement Industry Conference. The 2011 budget reflects a net payment from Limra/Loma rather than registration fees and full expenses for the Life Insurance Conference and Critical Illness Insurance Conference, because the SOA is not hosting the seminars. ReFocus is being hosted by the SOA for 2011 and net profits will be shared with ALCI. The ERM conference for 2011 and 2012 will be handled by CAS. A lump sum payment is budgeted at $50,000 for 2011.

With the success of the 2010 Life and Annuity Symposium the 2011 budget continues with the combined format (Life and Product Symposium) to be most cost effective. Revenue includes $28,300 for the sponsorship program. Revenue from virtual attendees is budgeted at $35,860, with $23,000 in expense for the live feed at the meeting. Food and beverage costs are high due to the Boston location.




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Actuarial Research (page 20)

DuesActual Actual Actual Budget Projection Budget Forecast Forecast Forecast

2007 2008 2009 2010 2010 2011 2012 2013 2014

FSAs & ASAs > 5 years 575$ 575$ 575$ 575$ 575$ 575$ 592$ 610$ 628$ ASAs < 5 years 290$ 290$ 290$ 290$ 290$ 290$ 299$ 308$ 317$ Net Number ofMembers Billed 18,639 19,214 19,735 20,500 21,600 22,200 22,866 23,552 24,259

Membership Services: this includes the sub departments of Communications, Publications, Actuarial Marketing Solutions (staff actuaries), Strategic Management and Web support (page 21)

The budget includes $161,250 for the "Professional Development Redesign" strategic initiative. The purpose of the initiative is to maintain the value of the credential through leading-edge and relevant post credential educational programs. A full array of professional development programs will be developed around the competency framework which will be assessable to all members. The budget provides for travel, marketing and promotional campaigns, hosting, consultants and depreciation for the learning management system (LMS) for the professional development modules.

Experience studies billings are based on vendor costs of $1,050,000 for the regular assessment. The 2011 salaries built into the experience studies are $540,000.

The research projects include $560,000 that is managed by research committees. This includes $70,000 for pension, health, life, finance, CKER, enterprise risk management research, $50,000 for aging issues research and $90,000 for a special research project. The initiative "Intellectual Capital Research Framework" includes $30,000 for travel related expenses to provide a strategic look at all of the research activities of the SOA. This review will provide the basis for additional research.

The 2011 dues rates are the same as the lasts four years. In the forecasted years 2012-2014 the dues level is increased to reflect a cost of living increase.

As a result of our international membership strategy, we are expanding our international offerings with five new seminars and ten new webcasts for our international members; three seminars and six webcasts in China and two seminars and four webcasts in Canada. The China webcasts will be translated and broadcasted in Mandarin.




Page 12

Research projects for 2011 include: $55,000 for the continuation of Retirement 20/20 and Untapped Opportunities for Health. $4,000 in travel expense is included to evaluate the role of the SOA relative to the actuarial clubs. This would include up to four trips to actuarial clubs for potential presentations or supporting sections that are trying to get connected to clubs. Professional fees includes $78,000 for a Staff Fellow - Life to assist the AMS department and $14,000 for speakers at the Council of Section Chair and Leadership meetings. Travel for the Strategic Management System includes three IAC face to face meetings, and one meeting for each Strategic Team. A staff actuary is budgeted to coordinate professional development activities in Canada.

At the direction of the Issues Advisory Council, the Marketing and Market Development Plan (MMDP) has been separated into two initiatives, one focused on members and candidates and another focused on branding (budgeted under marketing). "Member and Candidate Engagement" will focus on engaging SOA's members and candidates through social media, ongoing member communications and increasing focus on engagement at local venues due to increasing financial, geographic and time constraints. The student outreach and candidate communication activities would also be included in the scope of this initiative. The budget includes $400,000 mainly for consultants and travel related expenses. The budget provides $49,000 for travel and support for the Employers Council meetings. Additional SOA communication opportunities have been identified that will require staff and committee members to travel to sponsored events for education, visibility and on-going promotion of the SOA in the amount of $17,500. Marketing for the Beanactuary.org website has been included in the amount of $30,000, which would include funding for a new video and advertising/marketing buys.

Communications/Publications

Actuarial Marketing Solutions (AMS)

There are three additional strategic initiatives identified, "Reputational Risk - Public Pension Issues", "Health Actuarial Research Initiative", and "Opportunities for Actuaries in Business Analytics" for a total of $615,000 mainly for research projects. "Reputational Risk - Public Pension Issues" will begin with a background paper that will inform the Board of issues and options for response ($100,000). "Health Actuarial Research Initiative" will look at a new approach to quickly respond to the evolving needs in the health care area. The SOA will work with other organizations to expand our health research footprint ($300,000). "Opportunities for Actuaries in Business Analytics" will research new opportunities for actuaries in the field of business analytics and work to develop how the SOA can support these opportunities ($215,000).

The budget for "Knowledge Blueprint" includes $220,000 for content management software (CMS), taxonomy consultant, meeting and travel related expenses. The content management software will be depreciated over five years. The CMS will help structure and analyze the SOA's intellectual capital, which will make finding content easier and more accessible.

The "Rapid Retirement Research" initiative consists of a pilot program that will seek to strengthen the SOA's ability to provide timely, focused and relevant research to the public. The budget includes $400,000, which was approved at the February 2010 Board meeting, for hiring a staff actuary, travel, research projects, computer expense and an outside consultant to support this initiative.




Page 13

Marketing Department (page 22)

Administrative Expenses; this includes the sub departments of Executive, Governance, Human Resources and Finance (page 23)

International (page 24)

Foundation (page 25)

Investment IncomeInvestment income for 2011 is budgeted at 3.0% for equities and .50% for money market accounts. The market impact on investment values is uncertain, therefore a conservative estimate is included.

General Assumptions:

The Foundation budget reflects the SOA's portion of the US actuarial organizations support for The Actuarial Foundation. The SOA Board approved continuing support to the Foundation through 2011. The 2011 budget includes a net contribution of $305,000 for the Foundation, a placeholder is included in forecasted years 2012-2014. The Foundation reimburses SOA for the staff time spent on Foundation programs relating to their mission and philanthropic efforts. Support to the Canadian Actuarial Foundation in the amount of $20,000 is included in the budget.

Also included is funding for market research; $120,000 for an Employer Attitudes & Awareness Study; $85,000 for a comprehensive Salary Survey of members to understand current employment roles and related salaries; $60,000 to conduct focus groups on the Perceptions of the SOA Education Process to be held in four markets; $5,000 for the Member & Candidate survey; and $5,000 for the FSA Exam Candidate survey.

International travel is budgeted at $250,000 in 2011 for travel to Sydney and Zagreb for the IAA meetings. The IAA dues have continued to increase from $15.00 to $15.50 per FSA, ASA and CERA members for a total of $333,250. $39,250 is included for the strategic initiative, "International - Membership Strategy" for translation of professional development materials and travel related expenses. Assistance with the seminars and webcasts scheduled in the China region is budgeted at $55,000, which could include and event management firm or staff support. Additional travel is budgeted at $76,000 to allow for a presidential officer to accept invitations to speak in Japan, Korea, and other regions in China.

Budgeted professional fees for legal services are lower due to the addition of a General Counsel. The staff training budget includes $108,310 for general staff continuing education. The 2010 budget includes $35,000 for recruiting fees.

As noted under Communications/Publications, "Brand Enhancement" is an initiative that was previously part of MMDP. The focus of this initiative is on the enhancement of the actuarial brand, primarily by raising visibility of actuaries through the media. The amount budgeted for this initiative is $700,000. The budget also includes $1,000,000 for marketing of the CERA credential. There is $919,250 budgeted under special supplies and services for advertising in CFO, Best Review, HER, Risk Management and other business publications. Additional expenses include: staff travel to promote the credential, exhibitor fees, printing, postage and public relations. A refresh of the SOA booth is budgeted at $25,000 under special supplies and services.




Page 14Salaries/FTE's

Rent and Utilities

Allocated Departments

Depreciation

Strategic Pool

General cost of living increase 2.0% (source - CPI Bureau of Labor)Payroll inflation 3.1% (source - SHRM, World at Work 2010-2011 Salary Survey, Towers Watson Salary Survey)

The 2011 budget includes eight strategic initiatives: intellectual capital framework - research; international membership strategy; reputation risk - public pension issues; brand enhancement; member and candidate engagement; interorgazational synergies; Canadian member engagement; and opportunities for actuaries in business analytics. The costs of the above initiatives are budgeted in the respective department.

Strategic Initiatives

The “strategic pool” budget line was established to provide the SOA with financial resources to assess and plan for additional programs and initiatives that emerge from the strategic management system subsequent to the budgeting process. Any additional programs or initiatives will be approved by the Board of Directors for the purpose of advancing the SOA strategic plan. The pool is budgeted at $350,000.

The total FTE's for 2011 net increased by one. A Research Analyst under market research was added to assist with current and emerging research needs including membership salary survey, and member and candidate survey analysis. A business analyst was added to assist with fluctuation analysis for exam candidates and professional development attendees, as well as, margins and financial variances. Two staff actuaries were added, one for the Rapid Retirement Research initiative and to coordinate and assist with international activities in Canada. Three positions were eliminated, one in HR, one in Professional Development, and one in Administration. Total FTE's excluding the Foundation staff is 111. A salary utilization is included at 96% to compensate for open positions throughout the year.

The depreciation expense increases from 2008 through 2014 due to the e-learning modules and the membership database (Personify). The 2011 capital budget includes member facing enhancements to the membership database, new content management system (CMS), new learning management system (LMS) for professional development and cyclical rotation of computer equipment.

Under GAAP accounting rules we are required to impute rent expense over the term of the lease, expiring May 31, 2018. Therefore, the rent expense reflected the income statement is higher than the rent that will actually be paid.

Expenses related to IT and Customer Service are allocated out to all supporting departments.


Draft 9/28/2010

Page 15


Revenues:Examination Fees 18,202,441 17,716,052 19,070,800 20,631,200 21,043,800 21,464,700 21,894,000Sales of Study Notes 830,894 629,855 700,000 550,000 561,000 572,200 583,600Total Education & Examinations 19,033,335 18,345,907 19,770,800 21,181,200 21,604,800 22,036,900 22,477,600Sales of Publications 224,647 177,913 180,000 195,000 198,900 202,900 207,000Other - CAE site visits 0 22,500 0 6,000 6,000 6,000 6,000Total Revenues 19,257,982 18,546,320 19,950,800 21,382,200 21,809,700 22,245,800 22,690,600

Expenses:Salaries 1,821,956 2,423,268 2,740,600 2,758,400 2,843,900 2,932,100 3,023,000Travel 1,453,611 1,753,424 1,821,200 2,051,600 2,092,600 2,134,500 2,177,200Printing & Royalties 654,406 624,304 719,400 625,700 638,200 651,000 664,000Retirement & Employee Benefits 491,991 646,493 737,200 744,800 767,900 783,300 807,600Postage & Mailing 405,012 297,942 401,300 228,600 233,200 237,900 242,700Rent & Utilities 259,389 265,185 273,600 305,700 311,800 318,000 324,400CBT, Grading & Analysis 2,322,502 2,776,340 3,209,900 3,727,300 3,801,800 3,877,800 3,955,400CAS's portion of Courses 1 to 4 profit 232,598 219,731 240,000 250,000 255,000 260,100 265,300Special Supplies & Services 174,997 108,487 166,200 108,800 111,000 113,200 115,500Audio Visual Expense 213,384 189,396 191,200 172,600 176,100 179,600 183,200Hotel & Related Costs 1,378,088 1,237,098 1,167,600 1,474,900 1,504,400 1,534,500 1,565,200Computer Expenses 425,603 429,576 638,200 557,200 557,200 561,700 566,200Telephone 23,789 21,118 25,000 23,800 24,300 24,800 25,300Miscellaneous 8,202 17,751 12,000 14,000 14,300 14,600 14,900Honoraria 97,463 94,767 104,400 97,800 99,800 101,800 103,800Exam Center Costs 158,496 138,650 129,700 126,800 129,300 131,900 134,500Professional Fees 295,671 279,497 145,000 211,500 215,700 220,000 224,400Stationery & Supplies 43,529 35,194 57,900 36,500 37,200 37,900 38,700Staff Education and Training 3,085 10,136 11,900 13,400 13,700 14,000 14,300Insurance 50,888 73,285 76,800 73,300 74,700 76,200 77,800CERA Admin Fee for Verein 0 0 0 60,000 61,200 62,400 63,600PhD/CAE Grants 32,500 98,632 345,000 700,500 724,860 680,000 725,000Depreciation 918,488 1,117,589 1,267,200 1,041,100 1,010,600 1,034,000 1,037,500Academic/Government Travel 5,450 0 4,000 2,500 2,600 2,700 2,800Temporary Help 100,768 41,667 35,000 18,000 18,400 18,800 19,200Equipment Maintenance 2,704 3,825 3,100 3,900 3,900 4,000 4,100 Total Expenses 11,574,570 12,903,355 14,523,400 15,428,700 15,723,660 16,006,800 16,375,600Excess Revenue Over/(Under) Expenses 7,683,412 5,642,965 5,427,400 5,953,500 6,086,040 6,239,000 6,315,000


Basic Education Statement


Draft 9/28/2010

Page 16


Revenues:Meetings and Events Revenue 5,708,266 4,876,845 5,813,500 5,766,360 5,888,500 6,088,300 6,408,000Meetings and Events Sponsorship 209,490 498,590 413,800 650,500 663,600 676,900 690,400Total Revenue 5,917,756 5,375,435 6,227,300 6,416,860 6,552,100 6,765,200 7,098,400

Expenses:Salaries 1,076,229 1,155,333 1,246,900 1,290,600 1,330,600 1,371,900 1,414,400Travel 235,805 237,740 298,800 259,500 264,700 270,000 275,300Printing 137,971 104,615 144,300 130,950 133,600 136,200 138,900Retirement & Employee Benefits 292,508 310,162 335,400 348,500 359,200 370,300 381,800Postage & Mailing 80,211 67,965 69,100 63,700 65,000 66,300 67,600Rent & Utilities 127,636 115,386 118,900 132,800 135,500 138,100 140,900Special Supplies & Services 162,223 223,193 118,200 248,100 253,100 258,100 263,200Audio Visual Expense 418,060 480,693 468,100 497,100 507,000 517,100 527,500Hotel & Related Costs 1,672,533 1,724,628 1,614,400 1,610,190 1,642,400 1,675,300 1,708,800Computer Expenses 166,481 171,589 287,500 178,850 175,100 178,600 182,200Telephone 20,402 12,122 20,500 12,400 12,600 12,800 13,000Miscellaneous 7,493 5,983 3,000 6,100 6,200 6,300 6,400Honoraria 223,190 224,550 199,000 253,500 258,600 263,700 269,000Professional Fees 33,920 9,158 0 26,000 26,500 27,000 27,500Stationery & Supplies 14,316 10,553 14,500 12,300 12,500 12,700 12,900Exhibit & Special Promotions 22,464 7,615 30,600 31,430 32,100 32,700 33,400Insurance 45,723 47,550 36,400 39,530 40,400 41,200 42,100Depreciation 122,740 143,370 217,250 138,000 118,100 119,700 121,100Academic/Government Travel 2,337 5,834 10,600 8,500 8,700 8,900 9,100Temporary Help 33,066 9,523 21,700 12,000 12,200 12,500 12,800Equipment Maintenance 1,250 1,663 1,400 1,700 1,700 1,800 1,800Staff Education and Training 5,479 9,937 7,800 9,200 9,500 9,800 10,100Total Expenses 4,902,037 5,089,831 5,264,350 5,310,950 5,405,300 5,531,000 5,659,800Excess Revenue Over/(Under) Expenses 1,015,719 285,604 962,950 1,105,910 1,146,800 1,234,200 1,438,600


Summary Professional Development Statement


Draft 9/28/2010

Page 17


Revenues:Registration Fees 1,302,092 1,389,343 1,287,800 1,408,700 1,436,900 1,465,600 1,494,900Distance Learning Fees 0 0 29,700 59,820 61,000 62,200 63,400Exhibit Fees 215,300 280,000 210,000 280,000 285,600 291,300 297,100Revenue- Waivers not Related to Meeting 102,105 159,472 124,400 129,350 131,900 134,500 137,200Corporate Sponsorships 30,000 71,700 65,000 93,300 95,200 97,100 99,000Total Revenues 1,649,497 1,900,515 1,716,900 1,971,170 2,010,600 2,050,700 2,091,600

Expenses:Salaries 387,272 260,709 280,600 279,400 288,100 297,000 306,200Travel 36,962 60,947 55,000 45,600 46,500 47,400 48,300Printing 26,528 27,606 36,500 36,150 36,900 37,600 38,400Retirement & Employee Benefits 106,516 70,224 75,500 75,400 77,700 80,100 82,600Postage & Mailing 15,453 13,443 12,000 13,900 14,200 14,500 14,800Rent & Utilities 50,437 49,596 51,000 56,900 58,100 59,200 60,400Special Supplies & Services 23,534 34,672 12,900 13,450 13,700 14,000 14,300Audio Visual Expense 170,450 201,269 223,300 239,800 244,600 249,500 254,500Hotel & Related Costs 405,525 503,043 478,100 440,890 449,700 458,700 467,900Computer Expenses 47,467 46,381 69,800 51,300 51,300 52,400 53,400Telephone 7,065 3,876 4,500 4,000 4,100 4,200 4,300Miscellaneous 2,171 1,715 1,000 1,800 1,800 1,800 1,800Honoraria 59,690 75,000 80,000 80,000 81,600 83,200 84,900Stationery & Supplies 4,221 2,961 5,500 3,500 3,600 3,700 3,800Exhibit & Special Promotions 22,464 7,615 30,600 31,430 32,100 32,700 33,400Insurance 22,078 22,094 14,300 18,330 18,700 19,100 19,500Staff Education and Training 1,040 2,135 2,600 3,000 3,100 3,200 3,300Depreciation 48,502 51,802 72,300 31,800 32,400 33,100 33,700Academic/Government Travel 0 1,234 3,600 2,500 2,600 2,700 2,800Temporary Help 12,812 962 9,300 4,350 4,400 4,500 4,600Equipment Maintenance 494 714 600 700 700 800 800Total Expenses 1,450,681 1,437,998 1,519,000 1,434,200 1,465,900 1,499,400 1,533,700Excess Revenue Over/(Under) Expenses 198,816 462,517 197,900 536,970 544,700 551,300 557,900


I. Annual Meeting Statement


Draft 9/28/2010

Page 18


Revenues:Registration Fees 982,646 850,723 981,500 1,004,900 1,025,000 1,045,500 1,066,400Distance Learning Fees 42,900 35,600 36,300 37,000 37,700Revenue- Waivers not Related to Meeting 63,565 38,380 79,600 57,700 58,900 60,100 61,300Sponsorships 0 20,000 45,000 68,300 69,700 71,100 72,500Total Revenues 1,046,211 909,103 1,149,000 1,166,500 1,189,900 1,213,700 1,237,900

Expenses:Salaries 222,816 212,631 240,900 255,400 263,300 271,500 279,900Travel 57,871 34,955 48,500 48,400 49,400 50,400 51,400Printing 25,226 17,084 39,100 35,000 35,700 36,400 37,100Retirement & Employee Benefits 59,789 56,740 64,800 69,000 71,100 73,300 75,600Postage & Mailing 11,975 10,338 9,300 10,000 10,200 10,400 10,600Rent & Utilities 50,437 39,474 40,500 45,300 46,200 47,100 48,000Special Supplies & Services 25,003 9,522 29,900 11,750 12,000 12,200 12,400Audio Visual Expense 98,099 85,713 60,000 100,300 102,300 104,300 106,400Hotel & Related Costs 348,226 302,224 308,600 348,200 355,200 362,300 369,500Computer Expenses 37,641 29,690 50,800 37,300 38,100 38,800 39,600Telephone 4,404 2,053 6,000 2,200 2,200 2,200 2,200Miscellaneous 1,716 1,095 1,000 1,300 1,300 1,300 1,300Honoraria 32,000 72,840 40,000 45,000 45,900 46,800 47,700Professional Fees 431 1,615 0 1,000 1,000 1,000 1,000Stationery & Supplies 2,673 1,481 2,000 2,000 2,000 2,000 2,000Insurance 16,395 14,995 11,400 13,900 14,200 14,500 14,800Staff Education and Training 2,986 3,564 2,600 3,000 3,100 3,200 3,300Depreciation 48,502 41,230 57,400 25,300 25,800 26,300 26,800Academic/Government Travel 2,337 3,906 5,000 4,000 4,100 4,200 4,300Temporary Help 11,536 5,569 8,000 4,850 4,900 5,000 5,100Equipment Maintenance 494 571 500 600 600 600 600Total Expenses 1,060,557 947,290 1,026,300 1,063,800 1,088,600 1,113,800 1,139,600Excess Revenue Over/(Under) Expenses (14,346) (38,187) 122,700 102,700 101,300 99,900 98,300


II. Spring Meetings Statement


Draft 9/28/2010

Page 19


Revenues:Registration Fees 3,032,683 2,150,677 2,285,830 2,071,699 2,113,100 2,155,400 2,293,500Distance Learning Fees 0 0 768,270 689,841 710,500 806,800 926,000Revenue- Waivers not due to CE 9,875 8,250 3,500 28,750 29,300 29,900 30,500Corporate Sponsorships 179,490 406,890 303,800 488,900 498,700 508,700 518,900Total Revenues 3,222,048 2,565,817 3,361,400 3,279,190 3,351,600 3,500,800 3,768,900

Expenses:Salaries 466,141 681,993 725,400 755,800 779,200 803,400 828,300Travel 140,972 141,838 195,300 165,500 168,800 172,200 175,600Printing 86,217 59,925 68,700 59,800 61,000 62,200 63,400Retirement & Employee Benefits 126,203 183,198 195,100 204,100 210,400 216,900 223,600Postage & Mailing 52,783 44,184 47,800 39,800 40,600 41,400 42,200Rent & Utilities 26,762 26,316 27,400 30,600 31,200 31,800 32,500Special Supplies & Services 113,686 178,999 75,400 222,900 227,400 231,900 236,500Audio Visual Expense 149,511 193,711 184,800 157,000 160,100 163,300 166,600Hotel & Related Costs 918,782 919,361 827,700 821,100 837,500 854,300 871,400Computer Expenses 81,373 95,518 166,900 90,250 85,700 87,400 89,200Telephone 8,933 6,193 10,000 6,200 6,300 6,400 6,500Miscellaneous 3,606 3,173 1,000 3,000 3,100 3,200 3,300Honoraria 131,500 76,710 79,000 128,500 131,100 133,700 136,400Professional Fees 33,489 7,543 0 25,000 25,500 26,000 26,500Stationery & Supplies 7,422 6,111 7,000 6,800 6,900 7,000 7,100Insurance 7,250 10,461 10,700 7,300 7,500 7,600 7,800Staff Education and Training 1,453 4,238 2,600 3,200 3,300 3,400 3,500Human Resource Expense 0 10,668 0 0 0 0 0Depreciation 25,736 50,338 87,550 80,900 59,900 60,300 60,600Academic/Government Travel 0 694 2,000 2,000 2,000 2,000 2,000Temporary Help 8,718 2,992 4,400 2,800 2,900 3,000 3,100Equipment Maintenance 262 378 300 400 400 400 400Total Expenses 2,390,799 2,704,542 2,719,050 2,812,950 2,850,800 2,917,800 2,986,500Excess Revenue Over/(Under) Expenses 831,249 (138,725) 642,350 466,240 500,800 583,000 782,400


III. PD Seminars Statement


Draft 9/28/2010

Page 20


Revenues:Experience Study Revenue 1,155,249 1,197,847 1,400,000 1,450,000 1,479,000 1,508,600 1,538,800Other Research Income 235 110 250 100 100 100 100Total Revenues 1,155,484 1,197,957 1,400,250 1,450,100 1,479,100 1,508,700 1,538,900

Expenses:Salaries 890,592 916,704 999,500 1,144,100 1,179,600 1,216,200 1,253,900Travel 12,464 11,080 19,000 34,000 34,700 35,400 36,100Printing 5,656 7,226 5,000 5,700 5,800 5,900 6,000Retirement & Employee Benefits 249,577 245,435 268,900 308,900 318,500 328,400 338,600Postage & Mailing 12,871 11,792 15,000 13,000 13,300 13,600 13,900Rent & Utilities 123,519 121,459 125,900 140,600 143,400 146,300 149,200Cost of Experience Studies 827,972 844,891 1,000,000 1,050,000 1,071,000 1,092,400 1,114,200Special Supplies & Services 108 845 4,000 1,000 1,000 1,000 1,000Audio Visual Expense 0 0 0 400 400 400 400Hotel & Related Costs 2,624 428 4,000 18,000 18,400 18,800 19,200Total Research Projects 470,000 439,425 520,000 560,000 560,000 560,000 560,000Computer Expenses 76,637 100,664 126,900 93,300 95,200 97,100 99,100Telephone 11,526 13,257 10,500 13,500 13,800 14,100 14,400Miscellaneous 4,091 3,723 2,500 3,000 3,100 3,200 3,300Professional Fees 1,329 1,123 0 5,000 5,100 5,200 5,300Stationery & Supplies 4,557 5,472 5,000 5,500 5,600 5,700 5,800Staff Education and Training 3,756 3,470 14,000 15,890 16,200 16,500 16,800Insurance 24,232 33,565 35,300 33,700 34,400 35,100 35,800Depreciation 118,780 126,862 178,400 78,500 80,000 81,600 83,300Library Acquisitions/Subscriptions 36,249 44,777 0 0 0 0 0Academic/Government Travel 3,805 3,033 5,000 3,500 3,600 3,700 3,800External/Public Relations & Sponsorships 9,125 9,900 8,500 9,000 9,200 9,400 9,600Temporary Help 18,371 20,632 3,600 2,000 2,000 2,000 2,000Equipment Maintenance 1,210 1,750 1,400 1,800 1,800 1,900 1,900Total Expenses 2,909,049 2,967,513 3,352,400 3,540,390 3,616,100 3,693,900 3,773,600Excess Revenue Over/(Under) Expenses (1,753,565) (1,769,556) (1,952,150) (2,090,290) (2,137,000) (2,185,200) (2,234,700)


Actuarial Research Statement


Draft 9/28/2010

Page 21


Revenues:Membership Dues 9,550,622 9,876,678 10,200,000 10,450,000 10,554,500 10,660,045 10,766,645Sales of Publications 15,843 16,355 20,000 18,000 18,400 18,800 19,200Web Revenues 184,929 134,107 200,000 110,000 112,200 114,400 116,700Other 420,856 422,998 482,600 430,000 438,400 447,000 455,700Total Revenues 10,172,250 10,450,138 10,902,600 11,008,000 11,123,500 11,240,245 11,358,245

Expenses:Salaries 1,970,052 2,130,131 2,092,400 2,595,400 2,675,900 2,758,900 2,844,400Travel 104,360 124,480 265,880 225,390 229,700 234,300 239,000Printing 225,571 266,232 263,750 299,500 305,400 311,500 317,800Retirement & Employee Benefits 540,529 568,106 562,900 700,700 722,400 744,700 767,800Postage & Mailing 170,921 172,817 182,580 162,500 165,700 168,900 172,200Rent & Utilities 307,728 287,453 297,700 350,000 357,100 364,200 371,500Special Supplies & Services 45,339 68,205 168,500 59,000 60,200 61,500 62,800Audio Visual Expense 929 21,509 30,400 45,300 46,200 47,100 48,000Hotel & Related Costs 11,617 22,988 127,000 62,200 63,400 64,700 66,000Research Projects 21,291 50,000 55,000 695,000 300,000 300,000 300,000Computer Expenses 330,834 225,133 359,700 339,200 269,480 274,870 280,370Telephone 45,629 63,853 51,400 67,500 68,900 70,400 71,900Miscellaneous 7,784 9,553 13,100 9,950 10,200 10,400 10,600Professional Fees 47,567 83,645 379,000 541,700 552,600 563,700 575,000ABCD/ASB (SOA Portion) 106,392 134,226 217,330 145,100 148,000 151,000 154,000Stationery & Supplies 19,113 18,308 24,500 19,600 20,000 20,400 20,800Exhibit & Special Promotions 6,106 6,495 12,500 8,200 8,400 8,600 8,800Insurance 60,650 79,438 83,600 83,900 85,600 87,300 89,000President & Practice Area Discretionary Exp 3,750 0 0 0 0 0 0Staff Education and Training 42,178 49,745 29,835 40,490 38,400 39,100 39,800Human Resource Expense 33,000 10,873 2,485 49,500 53,400 54,500 55,600University Grants 0 0 0 40,000 40,800 41,600 42,400Depreciation 306,012 300,239 522,000 195,300 189,300 193,100 196,900Library Acquisitions/Subscriptions 0 0 35,000 40,000 50,800 51,800 52,800Academic/Government Travel 0 0 5,000 0 0 0 0External/Public Relations & Sponsorships 24,288 23,168 20,000 29,500 30,100 30,700 31,300Temporary Help 26,540 17,457 52,300 8,500 8,700 8,900 9,100Equipment Maintenance 3,065 4,148 3,400 4,700 4,500 4,700 4,700Total Expenses 4,461,245 4,738,202 5,857,260 6,818,130 6,505,180 6,666,870 6,832,570Excess Revenue Over/(Under) Expenses 5,711,005 5,711,936 5,045,340 4,189,870 4,618,320 4,573,375 4,525,675


Membership Services Statement


Draft 9/28/2010

Page 22


Revenues:Other - sales of salary survey 0 0 0 85,000 86,700 88,400 90,200Total Revenues 0 0 0 85,000 86,700 88,400 90,200

Expenses:Salaries 630,881 621,802 689,900 791,100 815,600 840,900 867,000Travel 50,872 87,109 55,925 56,050 57,200 58,400 59,600Printing 63,021 20,176 89,850 27,950 28,600 29,200 29,800Retirement & Employee Benefits 171,164 166,679 185,600 213,600 220,200 227,000 234,000Postage & Mailing 27,068 34,053 56,500 27,950 28,500 29,100 29,700Rent & Utilities 51,466 50,608 52,300 58,400 59,500 60,800 62,000Special Supplies & Services 192,122 643,883 1,038,250 1,018,000 1,038,400 1,059,200 1,080,400Market and Member Research Studies 163,725 104,625 207,000 275,000 280,500 286,100 291,800Audio Visual Expense 107,148 12,648 46,000 26,400 26,900 27,400 27,900Hotel & Related Costs 11,577 8,002 39,500 9,200 9,400 9,600 9,800Computer Expenses 122,526 140,927 159,700 107,300 109,500 111,700 114,000Telephone 11,193 7,595 8,000 7,700 7,800 7,900 8,000Miscellaneous 5,077 4,709 5,500 5,500 5,600 5,700 5,800Professional Fees 1,224,769 1,218,121 1,037,000 682,550 704,400 726,900 750,200Stationery & Supplies 13,651 9,088 11,000 10,000 10,200 10,400 10,600Exhibits & Promotions 35,700 62,227 48,500 37,750 38,500 39,300 40,100Insurance 10,097 13,985 14,700 14,000 14,300 14,500 14,800Staff Education and Training 7,573 8,064 6,825 7,630 7,800 8,000 8,200Depreciation 49,492 52,859 74,100 32,600 33,300 33,900 34,600Temporary Help 31,468 49,011 11,800 10,000 10,200 10,400 10,600Equipment Maintenance 504 730 600 800 800 800 800Total Expenses 2,981,094 3,316,901 3,838,550 3,419,480 3,507,200 3,597,200 3,689,700Excess Revenue Over/(Under) Expenses (2,981,094) (3,316,901) (3,838,550) (3,334,480) (3,420,500) (3,508,800) (3,599,500)


Marketing Statement


Draft 9/28/2010

Page 23


Expenses:Salaries 1,860,175 1,735,792 1,569,000 1,686,800 2,063,600 2,127,600 2,193,600Travel 332,657 276,349 254,280 245,300 250,200 255,200 260,400Printing 14,090 11,810 11,300 12,100 12,300 12,500 12,700Retirement & Employee Benefits 560,968 384,762 422,100 455,400 469,500 484,100 499,000Postage & Mailing 27,868 24,324 27,500 25,000 25,500 26,000 26,500Rent & Utilities 149,252 146,763 152,400 150,300 153,300 156,300 159,400Special Supplies & Services 36,442 63,634 72,450 125,400 127,900 130,400 133,000Audio Visual Expense 59,003 64,037 49,500 42,000 42,800 43,700 44,600Hotel & Related Costs 174,208 157,346 165,500 153,000 156,100 159,200 162,400Computer Expenses 133,916 166,785 110,600 103,200 105,300 107,500 109,600Telephone 37,616 33,918 34,700 35,500 36,200 36,900 37,600Miscellaneous 76,437 84,126 57,250 53,300 54,400 55,500 56,600Honoraria 1,000 0 1,000 1,000 1,000 1,000 1,000Professional Fees 1,501,124 273,732 411,000 340,130 346,900 353,800 360,800Stationery & Supplies 17,574 14,395 17,000 16,700 17,000 17,300 17,600Insurance 29,615 42,861 42,800 36,000 36,700 37,400 38,200Pres., Pres. Elect & V.P. Discretionary Exp. 14,922 44,114 20,000 25,000 25,500 26,000 26,500Staff Education and Training 24,691 82,596 79,210 19,180 19,600 20,000 20,400Human Resource Expense 131,226 125,421 65,500 66,500 67,800 69,200 70,600University Grants 40,000 4,725 0 0 0 0 0Depreciation 143,526 153,292 215,900 83,800 85,500 87,300 89,000Academic/Government Travel 380 0 3,000 500 500 500 500Temporary Help 71,003 272 15,900 2,200 2,200 2,200 2,200Equipment Maintenance 1,517 2,117 1,700 1,900 1,900 2,000 2,100Waivers Not Related to Meetings 175,545 206,102 213,200 215,800 220,100 224,500 229,000Taxes 29,569 1,486 40,000 35,000 35,700 36,400 37,100Total Expenses 5,644,323 4,100,759 4,052,790 3,931,010 4,357,500 4,472,500 4,590,400


Administrative Expenses Statement


Tom Bakos

Highlight

Draft 9/28/2010

Page 24


Expenses:Salaries 62,374 90,131 95,100 97,900 100,900 104,000 107,200Travel (including IAA reimbursements) 163,638 217,296 270,000 336,000 342,700 349,600 356,600Printing 430 612 300 450 500 500 500Retirement & Employee Benefits 17,235 24,965 25,600 26,400 27,200 28,000 28,900Postage & Mailing 523 829 1,500 1,000 1,000 1,000 1,000Rent & Utilities 10,293 10,122 10,000 12,800 13,100 13,400 13,600Special Supplies and Services 197 0 10,700 55,500 56,600 57,700 58,900Audio Visual Expense 0 0 500 0 0 0Hotel & Related Costs 798 0 600 700 700 700 700Computer Expenses 3,793 4,938 7,600 5,600 5,700 5,800 5,900Telephone 4,517 7,249 5,000 5,000 5,100 5,200 5,300Miscellaneous 175 183 200 200 200 200 200Honoraria 0 0 2,500 0 0 0 0Professional Fees 0 0 0 0 0 0 0Stationery & Supplies 209 244 600 300 300 300 300Insurance 2,019 2,797 2,800 3,100 3,100 3,200 3,300Staff Education and Training 265 0 2,200 2,520 2,600 2,700 2,800IAA International Dues 158,343 144,132 307,500 333,250 339,900 346,700 353,600International Relations & IPEF Funding 25,000 29,899 30,000 30,000 30,000 30,000 30,000Depreciation 9,898 10,572 14,200 7,200 7,300 7,500 7,600Academic/Government Travel 0 0 0 0 0 0 0Equipment Maintenance 101 148 100 200 200 200 200SoA portion of Asian Joint Office 74,459 78,138 81,000 82,000 83,600 85,300 87,000Dues Waivers 28,964 23,103 32,000 25,000 25,500 26,000 26,500Total Expenses 563,231 645,358 900,000 1,025,120 1,046,200 1,068,000 1,090,100


International Expenses Statement


Draft 9/28/2010

Page 25


Expenses:Salaries 154,581 175,237 185,000 203,000 200,700 197,600 194,300Travel Staff 5,372 3,590 0 0 0 0 0Printing and Publishing 1,396 1,964 0 0 0 0 0Retirement & Employee Benefits 43,926 47,111 49,800 61,300 63,200 65,200 67,200Postage & Mailing 10,390 11,568 0 0 0 0 0Rent & Utilities 15,440 15,182 15,700 17,500 17,900 18,200 18,600Special Supplies & Services 0 0 0 0 0 0 0Hotel & Related Costs 0 1,235 0 0 0 0 0Computer Expenses 15,516 12,840 25,900 23,000 23,000 23,800 24,700Telephone 2,248 1,743 0 0 0 0 0Miscellaneous 1,393 1,094 0 0 0 0 0Stationery & Supplies 1,299 1,584 800 0 0 0 0Insurance 2,695 1,893 3,300 0 0 0 0Staff Education and Training 1,583 0 0 0 0 0 0CAS/Actuarial Org Payments 49,763 33,881 25,100 20,000 20,000 20,000 20,000Depreciation 14,847 15,858 19,200 0 0 0 0Equipment Maintenance 151 220 200 200 200 200 200Total Expenses 320,600 325,000 325,000 325,000 325,000 325,000 325,000Excess Revenue Over/(Under) Expenses (320,600) (325,000) (325,000) (325,000) (325,000) (325,000) (325,000)


Actuarial Foundation Expenses Statement


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