The Annual General Meeting of the Society Tuesday 28th November 2017 at 5.00pm

Venue: Novotel Hotel, Paataka Room 2, Auckland Airport

AGENDA

1. Apologies

2. Minutes of the 2016 Annual General Meeting

3. Matters arising from the previous Minutes

4. President's report

5. Treasurer's report

a) Financial Report for 2016/17b) Subscription levels for 2017/18c) Appointment of the Auditor for 2017/18d) Budget for 2017/18

6. Committee Reports

7. Proposed Rule Changes

a) Summaryb) Guidelinesc) Marked up Proposed Rule Changes

8. Announcement of Election of Officers

9. General Business

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New Zealand Society of Actuaries (Inc)

Minutes of the Annual General Meeting of the New Zealand Society of Actuaries, held at 5.15pm on Sunday 20 November 2016 at Tauranga Trinity Wharf Hotel

Voting Fellows Present: Richard Beauchamp (President – Chair of the meeting), John Smeed (Secretary), Anne Lord (Treasurer), Paul Rhodes (Past President), Andrea Gluyas, Adam Follington, Ross Simmonds Adrian Allott, Catherine Edgar, Catherine Johnston, Charmaine Green, Christine Ormrod, Craig Lough, Daniel Mussett, Daniel Wong, Darren Fleming, David Chamberlain, Fraser Kerr, Graeme Lewis, Herwig Raubal, Ian New, Jenn Dobinson, Jessie McCreary, Joe Benbow, John Smith, Johnathan Turner, Klaas Stijnen, Leslie Lohmann, Linda Caradus, Mark Sim, Nick Smart, Nina Herries, Peter Brown, Peter Cosseboom, Richard Johnson, Richard McPherson, Robert Cole, William White.

Overseas Fellows present: NA Other members in attendance: James Roscoe, Farhaad Kachwalla, Johnathan Lowe, Sandra Chapman Others in Attendance: Susan Wells (Secretariat) Apologies: Anthony Ma, Brian Lenehan, Greg Bird, Heather McLeod, John Feyter, Kate Dron, Margaret Cantwell, Murray Hilder and Richard Korte. 1. Minutes of the 2015 Annual General Meeting The minutes of the Annual General Meeting held on 16 November 2015 were confirmed as a true and correct record of the proceedings. Proposed: Christine Ormrod; Seconded: Robert Cole. Motion carried without dissent. 2. Matters Arising from previous minutes There were no matters arising from last year’s minutes that members wished to discuss.

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3. President’s Report The President presented his report. The list of new and retiring Committee Convenors was noted. The President thanked members of the Council for their hard work. It has been a very busy year with valuable input from over 80 volunteers. He is very proud of the work done by the Committees, the Council and the Secretariat. The President highlighted the year’s successes, including the strategic focus (the 4 pillars: influence, communication, collaboration and capability), the future pathways events, engagement with NZSA’s Australian counterparts and launching the new website. Looking ahead the focus will be on identifying and quantifying the:

• key risks • threats • opportunities

facing the Society. 4. Membership Survey Andrea Gluyas provided a summary of the membership survey results. 5. Treasurer’s Report The Secretary tabled the Treasurer’s report, which was noted. The members received and adopted the financial report for the 2015/16 interim Annual Accounts. The Secretary noted that the financials are unaudited at this stage, but they are very close to final. Proposed: John Smith; Seconded: Ross Simmonds. Motion carried without dissent. The budget for 2016/17 was outlined and noted. 6. Subscription level for 2016/17 The meeting resolved to approve the new subscriptions for 2016/17. Proposed: Ian New; Seconded: Nick Smart. Motion carried without dissent. The annual subscriptions for the year ended 30 September 2017 to be invoiced in December 2016 will be:

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These fees exclude GST. 7. Committee Reports The Committee reports included in the meeting papers were noted. There were no other matters arising from any of the reports that members wished to discuss. Accordingly the reports were noted and adopted. 8. Announcement of Election of Officers The Secretary announced the result of the recent uncontested elections. Andrea Gluyas was appointed as the new President for a period of office from 21 November 2016 to 30 November 2017. Nick Smart, Adam Follington and Ross Simmonds were elected unopposed as members of the Council for a period of two-years, from 21 November 2016 to 30 November 2018. It was noted that Anne Lord, John Smeed and Richard Beauchamp will remain on Council for one more year. 9. General Business A member suggested the concept of a joining fee be reviewed.

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10. Closure of meeting There being no further business to discuss, the President declared the meeting closed at 5.05pm.

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President’s Report Annual General Meeting 28 November 2017 Dear Members

It has been my very great privilege and pleasure to be President of the Society over the last year. We have been a busy and active Council over this time, working hard to progress the profession and support our members.

By the time of the AGM, Council will have met 13 times this year - our usual monthly meetings and an additional strategy and planning session immediately following the conference in Tauranga last November. The planning session set us up well, both in the way we organise ourselves - with each member of Council taking responsibility for a portfolio of activities – and in providing a strong start to developing our strategic plan for 2017-19.

The four pillars of Communication, Collaboration, Capability and Influence have continued to feature in our strategy and actions. We started the New Year with a combined Convenors and Council meeting in Auckland in February, working on our goals and planning. There was wide agreement of the value of Communication and Collaboration in person – hearing in person what each arm of the Society’s activities was working on – and this was followed with Council and Convenors meetings by video conference mid-year and coming up again in December.

Another early step in Communication was meeting with students in both Auckland and Wellington to hear about how the Society can assist our younger members better. As a result, a Students Committee has been formed and has already organised several events.

We have continued to increase our Communication through our newsletter, now publishing it at least every second month, depending on what’s on. A great deal of work by a number of people goes into putting the newsletter together, and it often includes important information for the profession, so I do encourage all members to at least open it and flick through it. Feedback on the newsletter, new ideas and submissions are very welcome.

Our efforts in Collaboration this year have also had a strong focus on the international scene, in particular with the Australian Actuaries Institute. I’ve spoken monthly to Institute President, Jenny Lyon, and attended an Actuaries Institute Council meeting in March. We were delighted to host Jenny and CEO, David Bell here in New Zealand in August, when they met with Council, as well as the Reserve Bank and the Actuarial Science programme at Victoria University (which now has provisional accreditation). These interactions have borne fruit, with New Zealand members now participating on certain Actuaries Institute committees and New Zealand now featuring on the Institute’s strategic plan, alongside Asia. With an increasing percentage of our membership qualifying through the Australian system, it makes sense for us to share resources and take advantage of the scale the Actuaries Institute can offer, whilst not losing any of our own identity or what makes our New Zealand profession special.

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Our Influence this year reached new heights, with the launch at Parliament of the Retirement Income Interest Group’s (RIIG) paper ‘Decumulation Rules of Thumb’, with support from MBIE, the FMA and the Commission for Financial Capability. The paper attracted a reasonable amount of media attention, and also attention from the international actuarial community. It is testament to the concept behind the interest groups – of harnessing the passion of our members to contribute for the good of the profession and in the public interest, in spite of our small size and lack of paid resources – that this paper has received such widespread applause. I particularly liked the comment of one attendee at the launch “Someone needed to step up into this space”.

Influence is not always cheap to achieve and there was a dollar cost associated with both the publishing of the paper and its short form report, and paying for the launch. Council has put significant effort into determining prudently how much of our retained earnings we should prudently hold, and how much could be considered as surplus and available for other uses. While we retain the view that each year’s subscriptions should be budgeted to break even over the year’s projected expenses, we believe that there are funds available to use for projects that are considered suitable long term investments for the good of the profession and/or the public. We deemed the RIIG paper to be of suitable importance and profile building to be funded in this way.

This year Council instigated the NZSA Awards to celebrate those who have been a positive Influence in or who have made exemplary contributions to the profession. The inaugural awards were presented at the Winter Dinners in Auckland and Wellington and a list of awardees is set out later in this report. Congratulations to the winners! And please, everyone, think about who to nominate next time.

Capability is at the heart of what we do as a profession – both in terms of our skills as actuaries and also our capability as a professional body. Council has looked at how the Society delivers services and is working through a plan to change the roles and focus of several of our committees. Council believes that doing so will mean a stronger focus on CPD as a core service to the profession in particular (but other aspects as well). A CPD task force has recently been set up, under the Convenorship of Past President Peter Brown, to consider what skills are needed now and will be needed in the future, what the Society’s role is in providing them, and how best to do access and deliver them. The task force’s findings will play into the refreshed committee structure and a revised CPD professional standard.

As well as our volunteer members, the Capability of the Society has continued to benefit from the support and range of services we can access through ONZL, our Secretariat provider. These include secretary to Council, general membership administration, mailbox management, newsletter production, website support, and project management for our working groups. Without these services, the time of our volunteers would not be so wisely used, and I’d like to record Council’s grateful thanks to Susan Wells, Sarah Tuohy and the rest of the ONZL team.

Here are some of our details, achievements and highlights from the past year.

COUNCIL MEMBERSHIP

Council Membership for the year consisted of:

Andrea Gluyas (President)

John Smeed (Vice President)

Ross Simmonds (Secretary)

Anne Lord (Treasurer)

Richard Beauchamp (Immediate Past President)

Adam Follington

Nick Smart

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COMMITTEE CONVENOR APPOINTMENTS

The following Committee Convenor appointments were made since the last annual report:

Committee Convenor appointment

Climate Change Interest Group Richard Beauchamp

CPD Task Force Peter Brown

Education & Entrants Lyndon Jones

Professional Conduct Doune Connett

Professionalism Course Charmaine Green

Student Farhaad Kachwalla and Matt Clere

OFFICIAL MEETINGS

Month Body

December 2016 Reserve Bank

February 2017 FMA and MBIE re Decumulation Rules of Thumb

March 2017 Actuaries Institute Council

Reserve Bank

May 2017 Launch of Decumulation Rules of Thumb paper (hosted by the Ministerof Commerce and Consumer Affairs)

August 2017 Actuaries Institute President and CEO

Reserve Bank (with Actuaries Institute)

Victoria University of Wellington Actuarial Science Programme (withActuaries Institute)

October 2017 IAA Council and Committee meetings

Reserve Bank of New Zealand

SUBMISSIONS

Month Submission

July 2017 Submission to the Reserve Bank of New Zealandon the review of the Insurance Prudential Supervision Act (IPSA)

PUBLICATIONS

Month Publication

May 2017 Decumulation Options in the New Zealand Market:How Rules of Thumb can help

PRESS RELEASES

Month Press release

November 2016 Actuaries appoint first woman president

May 2017 Decumulation Options in the New Zealand Market:How Rules of Thumb can help

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MEMBERSHIP

Total Fellow Associate

Ordinary

Student Retired

Members on 1 October 2016 347 189 18 121 19

Members on 1 October 2017 349 196 21 112 20

Resident in New Zealand 268 122 20 109 17

Non Resident 81 74 1 3 3

NEW QUALIFIERS

Four members qualified as fellows during the year. Congratulations to:

Kevin Chou James Roscoe Chris Sissons Leck Tham

IN MEMORIUM

Members were deeply saddened to learn of the passing of two past presidents, Mark Weaver and Murray Hilder, during the year.

AWARDS AND HONOURS

A number of members were announced as winners of honours, awards and prizes during the year. Congratulations to the following:

Month Awarding body Award

William White Institute and Faculty of Actuaries

Charles M Stern Award for the best overseas candidate completing the exams

Keith Taylor NZ New Year’s Honours

Officer and Member of the New Zealand Order of Merit

Sam Stewart Actuaries Institute Andrew Prescott Memorial Prize Subject 2A Life Insurance (Semester 2, 2016)

Elton Chan Actuaries Institute Andrew Prescott Memorial Prize Subject 2B Life Insurance (Semester 1 2016)

Ben Coulter NZSA 2016 Richard Bruynel Research Prize

Jenn Dobinson NZSA Young Volunteer Achievement Award

Christine Ormrod NZSA Gold Award

Linda Caradus NZSA Distinguished Service Award

Murray Hilder NZSA Distinguished Service Award

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EVENTS

Our Events committee continues to manage an excellent schedule of activities. Over the year, members were able to enjoy the following functions and other get-togethers. See the Events Committee’s report for more details.

Month Name of Event

December 2016 Christmas Lunches

March 2017 Student Lunches

Future Pathways

Focus On: Earthquakes – Engineer’s perspective

Earthquake Claims Pattern

May 2017 Pub Quiz

June 2017 Focus On: Earthquakes – The Claims Process

July 2017 Study Tips Session

August 2017 Mid Winter dinners

Career Development Session with Jenny Lyon

Actuaries Institute CPD Tour

Student and Associate Lunches

October 2017 Student and Associate post exam drinks

Volunteers cocktail party

GI Seminar

November 2017 Future Careers Seminar

Financial Services Forum

LOOKING FORWARD

These are exciting times to be an actuary. The growth of actuarial work in the public sector, helping some of New Zealand’s most vulnerable people, is wonderful for our profession. It is a chance to show our skills and prove the value we add. It is a great example of why it is important for us to learn new skills and ways of working to add to our spheres of influence.

‘Lifelong learning’ is now a catchphrase across education and human resources. We must all continue to learn new techniques and develop and enhance our skills to maintain our employability and to cope in a fast changing world. The Society has recognised this by setting up a CPD Task Force to rethink how and what the profession can provide to members in this space, and I look forward to their report and findings next year.

Increasing our involvement in the international actuarial arena and taking an interest in international developments is also creating opportunities for our members to learn and our profession to develop. One example of this is IFRS17, where New Zealand members are sitting on the Australian Actuaries Institute working group to share and gain knowledge with New Zealand based working group.

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Engaging with our stakeholders as the professional body for New Zealand actuaries remains one of our most important roles. The IPSA Review is one example of an area where members of the profession, and the Society, have much to offer. We expect to engage with the Reserve Bank and industry bodies as this develops over the coming year. The Society has engaged with the Reserve Bank for some time, and it remains one of our key relationships. The Reserve Bank readily acknowledges the important role Appointed Actuaries have in the regulatory regime for insurers and therefore the special nature of their relationship with the profession. Both Council and the Reserve Bank are working to ensure the relationship is strong and useful for both parties, and this will continue to be a key focus in 2018.

The Society is a volunteer based organisation and will remain so for the foreseeable future. As a profession we are incredibly lucky for the huge support shown by our employers in providing time, funding and encouragement for our volunteers and event attendees. The support of our employers remains incredibly strong for the attendance and participation of our members at our events. Thank you to all of you who are or who positively influence employers to support the Society. We are incredibly privileged to have your support.

Inevitably, however, our costs are rising as we seek to provide more value to our members and increase in professionalism. Examples of this are increasing travel costs for volunteers (which may have previously been paid for employers though not directly work related) and greater use of the Secretariat to provide support to our committees. The decision to raise subscriptions is always made by Council in order to facilitate the services we believe make the most difference to achieving the aims of the Society whilst remaining realistic about our size and what we can accomplish. We will continue working to refine and enhance the services we provide and I encourage you all to engage and make the most of what the profession offers.

IN CLOSING

He aha te mea nui o te ao

What is the most important thing in the world? He tāngata, he tāngata, he tāngata

It is the people, it is the people, it is the people

People are key to our success. With each interaction with clients and colleagues, each of us represents and defines our profession. We want people who are creative and thoughtful and keen to engage – both to work with and to represent us. I am incredibly grateful to all our volunteers for the marvellous work they have put in during the year, which makes serving the profession such a pleasure. I would like to especially mention the Council – my vice-president, John Smeed, secretary Ross Simmonds, treasurer Anne Lord, immediate past president Richard Beauchamp and general Council members Adam Follington and Nick Smart. Each of them has given willingly of their time and energy and I am incredibly grateful to them all for their support.

Andrea Gluyas President

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NZSA – Treasurer’s Report Page 1 of 4

Treasurers Report Annual General Meeting 28 November 2017

FINANCIAL REPORT FOR 2016/17

As at the date this report was being prepared the statutory accounts were in the process of being audited. The accounts are expected to be available for the AGM.

SUBSCRIPTION FEES FOR 2017/18

Below are the proposed subscription fees for the period 1 October 2017 to 30 September 2018. These equate to a 10% increase, rounded to the nearest dollar:

Our financial objective is that the starting point should be that subscriptions and other income should cover normal operating expenditure for that year. Where there is a surplus brought forward money can be allocated to additional initiatives that further the Society’s objectives. We are currently in a position where our funds exceed our target level. We have therefore set aside an allowance of $12,000 for initiatives above our BAU activities.

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NZSA – Treasurer’s Report Page 2 of 4

Over the past few years the Society has increased the level of services provided to members, and ensure that the goals of the Society are maintained. This includes:

An improved website

Additional events

Recognition of volunteers

Greater secretariat support for council and committees, to offer a more professional level of service, and free up volunteer’s time for more value added activities.

Council has also implemented other measures to manage the increase in subscriptions including:

New arrangements for conference calls

More active management of liquidity and investments in term deposits

Guidelines around travel cost reimbursement The annual membership subscription for a fellow of the Australian Institute is currently $A1,470 for Australian residents and $A882 for fellows resident overseas. The difference of $A558 is still significantly greater than the subscription cost for a fellow of the NZ Society.

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NZSA – Treasurer’s Report Page 3 of 4

PROPOSED BUDGET 2017/18

Below is the proposed budget for the period 1 October 2017 to 30 September 2018.

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NZSA – Treasurer’s Report Page 4 of 4

RESOLUTIONS

The Voting Members are asked to:

1. Receive the financial report 2. Approve the subscription fees for 2017/18 3. Note the budget for 2017/18.

Anne Lord Treasurer

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Committee: Professional Conduct

Meeting: Report for 2017 From: Doune Connett, Committee Convenor

MEMBERS Brian Lenehan John Errington

PURPOSE OF THE COMMITTEE Professional Conduct matters.

2017 ACTIVITY 2017 saw the sudden passing of Murray Hilder who had been Convenor of this Committee since 2004. The Committee would like to acknowledge Murray’s years of service to our profession in a role that can at times be challenging. Over these years, Murray gave wise and considered counsel to many members of the Society and will be sadly missed. Doune Connett has taken on the role of Convenor. One complaint has been received in 2017 and the Committee is currently working through the appropriate process.

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Committee: Conference Committee

Meeting: Report for 2017 From: Catherine Edgar, Committee Convenor

MEMBERS Catherine Edgar (Convenor) Leanne Reynolds Leck Tham Nick Warren

PURPOSE OF THE COMMITTEE To organise the NZSA biennial conference.

2017 ACTIVITY

• Convenor appointed in January 2017 and volunteers for the Committee sought and appointed soon after.

• Terms of Reference and conference timetable prepared and approved by Council.

Committee roles assigned.

• Seeding funds of $25,000 requested by the Committee, approved by Council and paid into the Conference account.

• Event organisers, Conference Innovators, engaged and contracted for the 2018 Conference.

• Shortlist of conference venues developed and potential dates investigated, taking into

consideration suitability for both NZ members and potential overseas attendees.

• Conference venue and date confirmed as Queenstown from 28 to 31 October 2018.

• Contract for conference venue signed and deposit paid.

• NZSA members and overseas actuarial bodies informed of conference dates, and conference dates added to IAA calendar of events.

• Shortlist of conference themes developed. Final theme to be determined imminently,

subsequent to which the conference logo and website development will follow. I would like to thank all of the committee members for their hard work on the Conference Committee over 2017. The committee is looking forward to the busy coming year as we prepare for the 2018 conference. Near-term actions include finalisation of the conference theme, development of the logo, website and programme, VIP invitations and a venue visit in late 2017.

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Committee: Professional Standards Committee

Meeting Report for 2017 From: Herwig Raubal, Committee Convenor

MEMBERS Herwig Raubal (Convenor) Charlie Cahn Ian New Ross Simmonds

PURPOSE OF THE COMMITTEE To ensure that the Society has professional standards covering practice areas and that these standards support the maintenance of the highest standard of advice from the Society’s members.

2017 ACTIVITY The major activity of the year has been continuing the process of reviewing standards in order to ensure they remain current. We have implemented specific timeframes for reviews to occur in order to ensure that standards are regularly reviewed as a matter of course. This involves a short desk top review 2 years following a standard’s adoption, and a fuller review 5 years after adoption. The International Actuarial Association has recently issued a number of standards covering an array of matters, including things like model governance and enterprise risk management. We have considered how to best incorporate these within our standards, noting that it is expected, although not required, that member bodies of the IAA will adopt international standards. We have proposed to Council a regime whereby depending on materiality, we will either incorporate international standards directly or simply refer members to the IAA website for guidance (model governance is a good example of the latter). Sessional meetings were held earlier in the year with respect to the exposure draft of a new PS90, entitled “General Actuarial Practice”. This draft Standard combines the requirements of the previous PS90 (Communication of Actuarial Advice) and PS91 (Economic Valuations) into one standard that is consistent with ISAP1 (General Actuarial Practice) issued by the International Actuarial Association. We expect to be in a position to recommend a final standard to Council early in New Year. Incorporating the requirements of ISAP 3 (Actuarial Practice under IAS19 Employee Benefits) within our suite of professional standards has yet to be considered. This will be progressed once some of the existing standard work is completed. A draft non-mandatory professional standard covering Human Rights (PS92) has, post consultation with Membership last year, been issued to the Human Rights Commission for feedback pending Council adoption. Once adopted, PS92 will replace the existing GN3. The life and general committees will shortly hold joint sessional meetings to discuss PS 21 and PS 31 (FCR for life and general insurance respectively). The committees have worked hard to align the

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requirements of the two standards, it being considered that many of the previous differences did not reflect any fundamentals of business risk. The Life committee will soon be ready to recommend a final PS20 (Valuation of Life Insurance Liabilities) for adoption by Council, following sessional meetings held late last year. A draft of PS40 (Actuarial Reporting for Superannuation Schemes) was recently distributed to members for comment. At time of writing feedback is being reviewed for the purpose of finalizing the standard. Earlier in the year Members were given the opportunity to provide some input into certain aspects of PS 10 (Continuing Professional Development). This feedback has been collated. Unfortunately the working group has since disbanded. Council are currently seeking to establish a task force to progress this work. The working group reviewing PS50 (Investment Advice) has also sought Members’ views on the standard. This has been a challenging area, with investments being core to many of our professional responsibilities but only in a few cases do our Members specialise in this area. Again the working group has disbanded. We are seeking members to form a new working group to progress this work. The General Insurance Committee undertook the first desktop review of a standard (PS 30 – Valuation of General Insurance claims) under the timetable for reviews noted above. This identified a small number of minor changes to ensure the standard is accurate, which is the intention of the desktop review. We noted last year that it had come to our attention that our standards do not have a common approach to dealing with situations where a Member departs from requirements. Whilst it is imaginable that different standards might have different specific requirements depending on purpose, on review we considered that the current varied approaches have not been the result of conscious consideration. A working group has been formed to consider the matter. To date the group has reviewed various approaches, both in NZ and overseas, and considered different circumstances where an actuary might need to depart from a standard’s requirements. Progress on standards has been relatively slow in recent years. The PSC has been concerned that drafting groups, in particular convenors, require support to remove some of the administrative burden of standard development. Council has agreed with a proposal to provide project management resource to drafting groups. We are grateful for the Council’s support on this matter. Over the year John Smeed stepped down from the committee following a number of years of service. I would like to thank John for his contribution during his long tenure. Ross Simmonds has replaced John. I would like to thank the Committee members and members of drafting groups for their efforts over the year. It is a non-trivial undertaking to develop a professional standard and I trust that all members appreciate the efforts of the individuals involved. Herwig Raubal Convenor, Professional Standards Committee October 2017.

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Committee: Communications Committee

Meeting: Report for 2017 From: Jessie McCreary, Committee Convenor

MEMBERS Jessie McCreary Adam Follington Andrea Gluyas Jenn Dobinson

PURPOSE OF THE COMMITTEE The production of the NZSA’s bi-monthly digital newsletter and editorial oversight of the website.

2017 ACTIVITY The Communications committee was newly established late 2016 so many of the activities in 2017 relate to setting processes in place. Newsletter

• Established a regular schedule publishing a newsletter every two months • Replacing the PDF newsletter with a new digital format

Website

• Developed a template for making changes to the website and the Delegations of Authority of who can update the website

• Assigned each page on the website to a Committee or Council to be responsible for • Drafted the annual timetable for review of the website. The intention is that the web-editor

will send out a request to the relevant committees to review the pages assigned to them. • A review of information about actuaries on the government careers website was completed

and a request has been sent to make changes on this website. • A review of the International Actuarial Association branding toolkit was carried out to

identify sections which might be relevant to the NZSA website. • The following changes were made to the website

o Updating the Role of the NZSA o Minor change to what appears in the search results o Add a link to conference presentations o Updated case studies about what it is like to be an actuary. The cases studies were

provided by the students committee o Update photos which had expired licences o Council have completed reviews on pages related to employing or engaging an

actuary

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Committee: Entrants and Education

Meeting: Report for 2017 From: Lyndon Jones, Committee Convenor

MEMBERS Lyndon Jones (Convenor) Melissa Sutjipto Peter Davies Sam Segal

PURPOSE OF THE COMMITTEE To handle new member applications and facilitate the exam process.

2017 ACTIVITY • Future Pathways: The 2017 Future Pathways sessions was organised by Kevin Chou and held

on 8th March in Auckland and 9th March in Wellington. About 105 people attended the two sessions. Many thanks to Kevin Chou for organising the sessions, and Henry Chueh and James Dawson for hosting.

• PS10 (CPD) review: The Committee continues to progress its review of PS10. During the year, member’s views were surveyed on some of the key considerations, and the results of this survey are being assessed.

• Study Conditions survey: The Committee surveyed employers to compare study terms and

conditions. The results of this survey are being compiled and will shortly be returned to participating employers.

• Study tips session: Study tips sessions were organised for Auckland and Wellington on 13th

July. Thanks to Kevin Chou, Mat Jensen, Jenn Dobinson and Sam Segal for organising and hosting these sessions.

• Student support o Exam intentions: The Committee continued to use the exam intention survey to

assist students to make contact with other students taking the same exams.

o Exam organisation: Peter Davies and Lyndon Jones continue to organise the Auckland exams, while the Secretariat help organise the Wellington exams.

• New members and qualifications: There were 22 new members in the year to 30 September

2017. In addition 4 members qualified as Fellows during the year.

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Committee: Events

Meeting: Report for 2017 From: Jenn Dobinson, Committee Convenor

MEMBERS Jenn Dobinson (Convenor) Richard Korte Catherine Edgar Ian Collins Clinton Freeman Kevin Chou

PURPOSE OF THE COMMITTEE Purpose

• Oversight of NZSA’s events other than the Biennial Conference

Scope • Manage the Society’s calendar of events • Liaise with Council and other committees regarding the instigation, timing and

planning of relevant events • Ensure there is a spread of events over the year and that they cater to a variety of

members • Manage the Society’s event budget • Make use of the Secretariat for administrative tasks • Report on events in the Society newsletter or similar communications.

2017 ACTIVITY The Events Committee has been involved in the organisation of 11 events in 2017, including organising a soft skills session at the 2016 Biennial Conference. In the first half of the year we were proud to bring a mini-series of events focused on earthquakes. This mini-series included three presentations on:

• a structural engineer’s perspective of the Kaikoura and Christchurch earthquakes • an update on the claims experience of the Canterbury Earthquakes by Robert Cole of

the Reserve Bank of New Zealand; and • claims management of earthquake claims and how they differ from normal business-

as-usual claims.

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Other events directly organised by the Events Committee have been:

• A wine and cheese tasting evening to thank volunteers for their contributions in 2017 • Christmas lunch • The annual pub quiz • A study tips session • Winter dinners • Career development session • Two social drinks evenings

Events overseen by the Events Committee have been:

• Future pathways The committee has also been involved in the supporting the organisation of the General Insurance Seminar and Financial Services Forum in October and November this year.

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Committee: Climate Change Interest Group

Meeting: Report for 2017 From: Margaret Cantwell, Committee Convenor

MEMBERS Margaret Cantwell (Convenor) Richard Beauchamp Andrew Curtin Les Lohmann Nicola Thompson

PURPOSE OF THE COMMITTEE Provide a forum for discussion of Society members' concerns and ideas relating to climate change and related issues.

2017 ACTIVITY The committee have continued to meet over 2017 and to circulate papers of interest among the group. We have established relationships with the Victoria University Mathematics and Geography, Environment and Earth Science Schools. This resulted in Dave Frame joining the panel discussion on Adapting to Climate Change Risk at the General Insurance Seminar. In addition we have a representative on the Australian Institute Climate Change Working Group and we continue to seek opportunities to work more closely with both these connections. Upcoming work includes investigating the feasibility of an Actuarial Climate Change Index for NZ and developing a strategy around how this would be used to increase awareness of the importance of changes in the climate in the financial sector and wider NZ economy. I have stood down as convenor of the Interest Group, with Richard Beauchamp assuming this role from 1 November 2017. I remain an active part of the Interest Group. We are keen to extend the membership of the group so if you have an interest please contact either Richard or myself.

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Committee: Health Committee

Meeting: Report for 2017 From: John Feyter, Committee Convenor

MEMBERS John Feyter (Convenor) Heather McLeod Huaning Yang John Smeed Len Elikhis Peter Davies Premita Ajodha Sandra Chapman Xiao Zhong

PURPOSE OF THE COMMITTEE Main objectives are:

• To maintain a forum for health-related issues within the Society • Contribute to public debate • Promote the skills and work of members of the Society through a network of contacts

with Government and other health-related organisations.

2017 ACTIVITY

1. Objectives of the Committee’s business plan for 2016/17 were:

• to build on the network of contacts that is in place with Government and other health-related organisations.

• Maintain a forum for discussion of health-related issues within the Society, and • Contribute to public debate.

2. During the year we published several health newsletters to members and considered

several issues related to actuarial standards related to health insurance.

3. Members of the committee were involved with two health related papers at the NZSA conference in 2016 and members of the Health Committee arranged three presentations at the GI seminar in October.

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4. The Committee provided input during the public consultation for the Ministry of Health

strategy for older people, which was published as the Healthy Ageing Strategy in December 2016. This issue is one where the actuarial profession and individual actuaries could play a more active role, especially in relation to long-term funding issues.

5. Committee membership has been stable during the year. There is a diverse range of

membership including actuarial consultants as well as representatives from health insurers, ACC, and the public health sector.

6. Heather McLeod continues to represent the New Zealand Society of Actuaries on the

International Actuarial Association Health Committee. The committee met twice during the year, in Budapest in April and Chicago in October. Heather is not able to fund attendance at the meetings but participates telephonically when the time difference makes it feasible. The Chicago meeting reviewed a draft of a note on medical inflation and the role of health actuaries worldwide. The committee has on-going regular meetings with the World Health Organization (WHO), the International Labour Organization (ILO) and the International Social Security Association (ISSA) on health issues.

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Committee: Student

Meeting: Report for 2017 From: Farhaad Kachwalla & Matt Clere, Committee Convenors

MEMBERS Andrew Curtin Caroline Moy John Park Michelle Porter Evan Cooper Riley Power Lea Tran James Pearson An Le

PURPOSE OF THE COMMITTEE • Provide a forum for discussion of Society members’ concerns and ideas relating to

students of the Society

• Organise events tailored towards student members of the society, including the annual NZSA Future Pathways event.

2017 ACTIVITY • Established as a new committee in May 2017, with 11 volunteers from a wide range of

industry and experience. • Defined a purpose and scope of the committee in a terms of reference

• Hosted both lunch and drinks events in Wellington and Auckland for student and

associate members

• Organised student profiles for the NZSA website

• Website query handling – responding on behalf of the NZSA to all website questions from prospective students/members

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Committee: Public Sector Interest Group

Meeting:

Report for 2017

From: Charles Hett, Group Convenor

MEMBERS Charles Hett (Convenor) Andrea Gluyas Adrian Allot Dan Stoner Eric Judd Jinning Zhao Linda Page Paul Rhodes Richard Johnson With support from James Dawson

PURPOSE OF THE COMMITTEE • Provide a forum for discussion of interests, ideas and concerns as actuaries relating to

the wider public sector; • Support the use of longer-term, statistical, and financial perspectives and methodologies

that add value in the public sector; • Support the Society’s external relations objectives, as they relate to the public sector; • Increase Members’ awareness of the New Zealand public sector and opportunities for

actuaries in the New Zealand public sector; • Support the educational and professional development needs of actuaries, working or

interested in the public sector, including through CPD.

2017 ACTIVITY The Public Sector Interest Group (PSIG) continued to meet during 2017, though resource availability has to an extent constrained our activity. The group has focused on:

• Development of a sessional paper that will provide a useful introduction to the areas of New Zealand public sector relevant to actuaries, alongside some current developments and issues of interest. (We aim to present the paper to a sessional meeting early in 2018).

• Initial support to the Health Committee regarding an IAA paper on Long Term Care. • Consideration and noting of various relevant issues during the year.

I would like to thank all members of the group for their participation and support during the year. Thank you.

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Committee: Retirement Income Interest Group

Meeting: Report for 2017

From: Christine Ormrod

MEMBERS

Joe Benbow (resigned 4 October 2017) Catherine Edgar Anne Lord (on temporary absence for the year; resigned 16 October 2017) Daniel Mussett Alison O’Connell Christine Ormrod (convenor) Kelvin Prisk

PURPOSE OF THE COMMITTEE

Provide a forum for discussion of Society members' concerns and ideas relating to retirement income, longevity and related issues.

• Maintain a calendar of important dates relating to retirement income on which commentary may be appropriate.

• Co-ordinate the NZSA’s response on matters relating to retirement income and related issues.

2017 ACTIVITY

I would like to thank each member of the committee for the hard work they have put in this year and their individual contribution. Joe has decided he no longer has the capacity to make a meaningful contribution and will be greatly missed. Launch of the Rule of Thumb paper The main activity for the year has been the finalisation and launch of the Rules of Thumb paper by Hon Jacqui Dean at Parliament on 4 May. This was a highly successful event and fitted closely with both the core purposes of the NZSA and the NZSA strategic plan. Lessons learned through the process and media exposure are commented on later. The key successes have been: Increased profile and respect for NZSA with key governmental bodies: This was achieved by filling a need for the Commission for Financial Capability (CFFC), which has included references to our work on the sorted.org.nz web-site, as well as the Financial Markets Authority (FMA) and MBIE, through providing the “how” to include income projections on

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KiwiSaver statements. All three organisations were involved in the launch (MBIE through the Minister’s office) and we have maintained contact since with FMA and CFFC. Increased the profile and respect for NZSA within both the local and international actuarial communities. This was a high-profile launch (for NZSA) and has received a very positive response and international attention. A key factor is that it is relevant to the public and is not just a case of actuaries talking among themselves. It also fitted the objectives of the Society, current strategies and the main issues members identified in the latest membership survey.

OBJECTIVES OF THE NZSA AS LISTED IN THE RULES

b) To develop and maintain New Zealand actuarial Professional Standards and liaise with Government, regulators, officials and interested bodies on standards and regulation

While the Rules of Thumb have not resulted in standards or regulations, the launch has enhanced the profile of the Society with the relevant entities.

c) To make submissions in the public interest and provide a source of reference on actuarial matters for Government and various official and interested bodies.

Our Rules of Thumb are on the Sorted website (as part of a Guide to Stretching Retirement Savings). It has links to our short form paper and media release on the NZSA website. It also says it uses a Life Expectancy Rule (one of our Four Rules of Thumb) in its Retirement Planning tool which calculates someone’s potential retirement income from individual inputs on savings and their life expectancy. https://sorted.org.nz/guides/stretching-our-retirement-savings.

In June the Minister announced the planned introduction of retirement savings and income projections in all KiwiSaver annual statements.

It has also led to contact with Massey University (Dr Pushpa Wood, director of the Westpac Massey Fin-Ed Centre) and a discussion about keeping our research agendas complementary.

We also had several other interested parties involved in the subject contacting us to express interest/support.

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d) To provide a formal link with actuarial bodes elsewhere in the world.

While it has not provided a formal link:

the Singapore Actuarial Association invited the RIIG to present as key note speaker at their conference this year. Daniel Mussett presented on behalf of the RIIG.

world-wide publication through an article on the Rules of Thumb being included in the on-line magazine of the International Actuarial Association.

an article has been submitted to The Actuary, the magazine of the Institute and Faculty of Actuaries.Our work has been shared with an IFOA working group on a similar subject

GOALS FROM THE STRATEGIC PLAN 2017 - 2019

Capability: Support actuaries working in the Public Sector

This has been achieved by increasing the profile of actuaries through constructive engagement with CFFC, FMA and the high-profile launch by Hon Jacqui Dean, which has led to an increased awareness that actuaries can provide practical advice.

Communication: Refresh approach to external relations

International actuarial community

It has increased the presence of NZSA internationally through the articles mentioned above. The issue of decumulation is one that is relevant in many parts of the world. Our work is notable for its practical use for those with modest levels of retirement savings whereas actuarial work tends to focus on financial institutions, high net worth individuals and/or tools for full financial advice.

Communication: develop social media presence

It has added an item which is relevant to the public which can and has been referenced in social media

Influence: help build members’ self-awareness and in turn grow external awareness and profile

These three have been achieved through the increased awareness that the Society is able to contribute to and influence the public good and the enhancement of the brand of the Society with key stakeholders through the increased

Influence: strengthen the Society’s connection with key stakeholders and our wider community

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Influence: work to build connections and grow our brand

publicity achieved through the public launch of the Rules of Thumb.

SURVEY OF MEMBERS

In the latest survey of members, items 2 – 4 on the list of priorities for the Society were: 2 External Relations – building profile, specific relationship and working in the public good 3 Relevance – rising to upcoming challenges, changes in role, the rise of data scientist and data analytics 4. Membership – attractiveness to new prospects and those in non-traditional fields The launch, for the reason above, has clearly enhanced all of these.

Lessons learned

(Most of these actions were taken or taken in part and some could have been done better.) Importance of identifying where challenge is likely to come from and who may seek to derail our proposition. Actions: identify likely sources of negative comment and consider approach and responses in advance and be available to respond quickly. Anticipate a negative spin from journalists. Actions: Proactively approach key commentators beforehand to discuss and explain key messages so that articles are well thought through, have an article suitable for publication, rather than only a press release, so that we can deliver our message without the filter of the journalists. Maintain good relationships with columnists who are prepared to use other people’s work, for example Mary Holm. Quality public relations consultant. Actions: ensure there is a clear understanding of scope, strengths, reporting lines, timelines and who will do what. Buy –in from key stakeholders in advance. Actions: ensure key stakeholders are supportive of key messages prior to launch. The time and effort to polish publications and prepare for a public event is much greater than what one might expect. Actions: ensure the launch is at a time when key NZSA members can commit a significant amount of time and attention Have a follow-up plan. Action: ensure there is a plan to follow through over the next 6-12 months to ensure the desired outcome, remembering there is only so much volunteers can do. Wellington presence and engagement. Actions: ensure there is a Wellington-based person to follow up with Wellington-based government agencies. Diverse membership. Actions: a wide range of experience and thought amongst the members of the committee is vital to broad-ranging and particularly public relevance.

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Media mentions

http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11850564 Short factual article referring to actuaries as “New Zealand's best number crunchers”. http://business.scoop.co.nz/2017/05/04/new-rules-of-thumb-to-help-kiwis-spend-retirement-savings/ Copied our Media release. http://www.interest.co.nz/personal-finance/87516/four-approaches-society-actuaries-suggests-you-could-adopt-you-convert-your by Jenée Tibshraeny. Fairly long article with graphs, positive comments. http://www.goodreturns.co.nz/article/976505396/retirees-told-6-drawdown-rule-an-option.html by Susan Edmunds. Subsequently amended to include comments by Christine Ormrod refuting criticism that we did not consider longevity and volatility risks. Few comments below the line, mostly positive. http://www.stuff.co.nz/business/money/92243665/four-ways-to-turn-100000-into-regular-income by Susan Edmunds Also contained some criticism, and response from Christine. http://www.lifetimeincome.co.nz/news/news/2017/may/retirement-advice-cautioned/ News page on Lifetime Retirement Income’s website gives more the same criticism but also recognizes that our paper clarified it used an “idealized retiree” and that we recommended “Whatever your circumstances, you may wish to speak to a financial adviser.” http://www.stuff.co.nz/business/92450228/janine-starks-you-cant-afford-to-miscalculate-retirement-savings Janine Starks agreed with RoT as a broad steer “no one will die in its application and it's a fabulous way to get people saving more” but also warned that people should get financial advice. http://investmentnews.co.nz/investment-news/no-opposing-thumbs-needed-four-retirement-income-rules-to-rule-them-all/ Factual, no quotes, positive, led with picture of Jacqui Dean and launch in Parliament. Mary Holm has been referring to our RoT in her weekend NZ Herald columns for example, 5 Aug 17, 3 June 17. She calls the NZSA “experts on money and statistics” and uses www.tinyurl.com/RulesOfThumbNZ as a link to our short paper. http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11899094; http://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=11868869

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Future activities The next project is a position paper on what makes for good retirement income policy in New Zealand. Such a paper would be a ready reference for the Society spokespersons should our views be requested by or actively offered to the media, policymakers or other third parties. It could also inform or spur debate within the Profession and serve as a launching point for further research or analysis. We expect retirement income policy to attract increasing interest over the next couple of years, but there are few sources of evidence-based analysis on the subject. We envisage a concise position paper that highlights not “what we believe to be the right answer on retirement income policy”, but rather “what we believe are the most pertinent questions to be considered in order to ensure policy making is robust. This would suggest where individuals, providers and policymakers should focus their attention. The intent is to cover all aspects of retirement income policy, favouring those with an actuarial flavour, including longevity, health, superannuation and KiwiSaver. We will prioritise the most important themes for New Zealand and seek ideas from other members of the profession, similar work done abroad, including by the Actuaries Institute.

Any members of the Society who would be interested in being involved with this project are most welcome to join the Group.

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Committee: Enterprise Risk Management

Meeting Report for 2017 From: Anagha Pasche, Committee Convenor

MEMBERS Anagha Pasche (Convenor) Scott Lewis Charmaine Green Andrea Gluyas (resigned in February 2017) Richard Johnson (joined in September 2017)

PURPOSE OF THE COMMITTEE To raise ERM awareness and support amongst actuarial profession

2017 ACTIVITY • Scott Lewis presented at the Biennial conference in Tauranga a paper titled: Enterprise

Risk Management – Do Actuaries really get it? • Anagha Pasche and Scott Lewis attended a risk/strategy workshop with Council on 23

November. • Anagha Pasche presented the risk assessment work to Council and Convenors at the

Strategy Day. • Reviewed TOR for the committee

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Committee: General Insurance

Meeting: Report for 2017 From: Christian Barrington, Committee Convenor

MEMBERS Wayne Anderson Margaret Cantwell Robert Cole Peter Davies Mathew Jensen Marcelo Lardies Craig Lough Win-Li Toh Simon Young. Anita Samu and Ben McLeod resigned and Simon Young joined the Committee during the year.

PURPOSE OF THE COMMITTEE • Provide a forum for discussion of Society members' concerns and ideas relating to

general insurance. • Comment on issues relating to general insurance. • Foster good relations with regulators of general insurance companies.

17 ACTIVITY Professional Standards Review • Work contributed to align PS31 (General Insurance Financial Condition Report) to PS21

(Life Insurance Financial Condition Report). There has been general alignment in the standards but a sessional meeting is being arranged with the aim of obtaining agreement from the membership on the remaining difference, being a member’s responsibility in the event that a member doesn’t receive the information necessary to complete the FCR.

• A review of PS 30 (General Insurance Valuations) was carried out during the year with some minor changes.

• The Committee reviewed the draft professional standard following the Human Rights Act 1993 from a general insurance perspective and provided feedback.

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Kaikoura Earthquakes • The Committee discussed a number of issues that developed following the November

2016 earthquakes including the assessment of reinsurance reinstatement premiums and the impact of the Memorandum of Understanding on insurers’ solvency position.

IFRS 17 • The Committee began discussing the impact of IFRS 17 on insurers. GI Seminar 30 October 2017 • The Committee formed a working group to arrange the 2017 GI seminar.

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Committee: Life Insurance

Meeting: Report for 2017 From: David Chamberlain, Committee Convenor

MEMBERS David Chamberlain (Convenor) Catherine Johnston Michael Bartram Darren Fleming Doune Connett Hamish Farrar Mark Sim Richard Johnson

PURPOSE OF THE COMMITTEE • Provide a forum for discussion of Society members' concerns and ideas relating to life

insurance. • Comment on issues relating to life insurance. • Foster good relations with regulators of life insurance companies.

2017 ACTIVITY Review PS 20 Review PS 21 Follow IFRS 17 development Consider status of NZSA HRA Guidance Note Assist in NZSA submission on the RBNZ IPSA review

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New Zealand Society of Actuaries Rules

The covering note included with the meeting papers contains a high level summary of the changes proposed to the NZ Society of Actuaries Rules (“the Rules”). This paper sets out the proposed changes in more detail, along with the resolution Members are being asked to approve.

Resolution

NZ Society of Actuaries Voting Members are asked to:

1. resolve that with effect from the date they are accepted by the Companies Office the Rules be amended as set out in the attached marked up version of the Rules, described as the Rules of the New Zealand Society of Actuaries (Incorporated), dated 28 November 2017; and

2. authorise three members of the Council to sign the required documentation notifying the Companies Office of the changes to the Rules.

Summary of Key Changes

Clause Reference Description of Change

Clause 5 - Membership

Clause 5(b)(ii) is amended to enable Council to approve the transfer of membership status from Associate class to Fellow class for fully qualified members from non-recognised actuarial bodies.

There is currently no ability for fully qualified members from non-recognised actuarial bodies to transfer to Fellow status with the NZSA. Instead they would have to attain Fellow status through a recognised actuarial body and so would need three memberships (their home body, a recognised body and the NZSA) to achieve Fellow status with the NZSA.

Applications to transfer from Associate to Fellow under this rule would be considered by Council on a case by case basis.

In addition to this rule change we propose a set of guidelines, that outlines the criteria Council would consider for such applications, are adopted. These guidelines have been based on the guidelines used by the Institute of Actuaries of Australia for Accredited Members who wish to transfer Fellow. These guidelines will be published on the NZSA website.

Clause 11(b) Amended to refer to the President in a gender neutral way, consistent with other clauses within the rules.

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Guidelines for qualified members from non-recognised actuarial bodies to transfer from Associate to Fellow.

Associate members, who are fully qualified through actuarial associations which are not recognised under rule 5 (a) (i) of the Society’s rules, may apply for special consideration for Fellow membership. Such applications will be considered on a case-by-case basis by Council, on the recommendation of a Fellow of the Society. These guidelines are intended to assist applicants in preparing their application. Generally, an applicant would have:

• been residing and working in New Zealand and have done so for at least three years to gain suitable experience in local actuarial practice;

• completed a recognised Professionalism course within the previous 36 months; and • maintained the currency of their membership of the relevant overseas actuarial

association. However, applications from persons without such qualification are still welcomed as applications are considered on a case-by-case basis. Whilst not mandated, the following types of supporting documentation would be of assistance to the Council in considering an application. Please note these are examples only:

• a letter to Council illustrating work experience and any other achievements; evidence of actuarial education qualification; and

• references from one or more senior Fellows of the Society (for example, a Fellow who is an Appointed Actuary or working in a senior actuarial role), in support of the application. It would be useful if the referees were able to comment on the applicant’s actuarial experience and knowledge of New Zealand conditions.

If an application is unsuccessful it may be resubmitted in 12 months’ time, provided that any requirements stipulated by Council have been met. The Council may request further information from an applicant.

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RULES OF THE NEW ZEALAND SOCIETY OF ACTUARIES (INCORPORATED) 1. NAME

The name of the Society is the New Zealand Society of Actuaries (Incorporated) hereinafter called the Society.

2. STRUCTURE

The affairs of the Society will be conducted by the President, the Council, the Secretariat and the various committees, as described in these Rules.

3. OBJECTS

The objects of the Society are:

a) To establish, promote and maintain high standards of competence and conduct within the actuarial profession.

b) To develop and maintain New Zealand actuarial professional standards and liaise with government, regulators, officials and interested bodies on standards and regulations.

c) To make submissions in the public interest and provide a source of reference on actuarial matters for Government and various official and interested bodies.

d) To provide a formal link with actuarial bodies elsewhere in the world. e) To assist student actuaries in their studies, assist members with continuing professional

development and help familiarise new members with New Zealand conditions. f) To facilitate taking such action as the Society may agree in respect of any matter that is

relevant to the actuarial profession. g) To afford members the opportunity of discussing actuarial and other matters of interest to

members. h) To promote fellowship amongst the actuarial profession.

4. POWERS

i) The Society may invest and deal with its property and borrow or raise or secure the payment of money charged upon all or any of the Society's property and may purchase, redeem or pay off such securities.

b) The Society may appoint, dismiss or retire salaried officers and remunerate any persons for

services rendered or to be rendered.

c) In addition to the express powers set out in these Rules, the Society shall have the power to do all things which are incidental or conducive to the attainment of the objects of the Society.

5. MEMBERSHIP

a) Application for membership of the Society may be made by:

i) Any member of the Actuarial Society of South Africa, Canadian Institute of Actuaries, Casualty Actuarial Society, Institute and Faculty of Actuaries, Institute of Actuaries of

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Australia, Institute of Actuaries of India, Society of Actuaries and Society of Actuaries in Ireland.

ii) Any other person with appropriate expertise as determined by the Council from

time to time.

b) i) There shall be three classes of membership, Fellows, Associates and Ordinary members.

ii) Admission to the class of Fellow shall be given to any member who is: a Fellow of any of the actuarial bodies listed in (a) (i) above; and who is ordinarily resident in New Zealand or Australia or is in the view of the Council, familiar with New Zealand conditions (“Fellows”). Admission to the class of Fellow may also be granted by the Council to a fully qualified member of an actuarial body that is a full member of the International Actuarial Association, but is not listed in (a) (i) above, who is ordinarily resident in New Zealand, upon application and subject to meeting, in the view of the Council, the requirements of guidelines that Council shall publish from time to time.

iii) Admission to the class of Associate shall be given to any member who is: an

Associate of any of the actuarial bodies listed in (a) (i) above or a Fellow of another actuarial body that is a full member of the International Actuarial Association; and who is ordinarily resident in New Zealand or Australia or is in the view of the Council, familiar with New Zealand conditions (“Associates”).

iv) All other members shall be Ordinary members (“Ordinary Members”). v) Only Fellows shall be entitled to use the designation FNZSA. However, retired

Fellows shall be entitled to use the designation FNZSA (rtd). vi) Only Associates shall be entitled to use the designation ANZSA. However, retired

Associates shall be entitled to use the designation ANZSA (rtd).

vii) Voting members shall be Fellows who are ordinarily resident in New Zealand (“Voting Members”).

c) On acceptance of an application by the Council, membership of the appropriate class

commences on payment of the annual subscription.

d) A member of the Society may, upon the recommendation of the Council, be elected an honorary life member at a General Meeting.

e) Members, except for honorary life members and retired members as approved by Council,

must pay the annual subscription fixed at the Annual General Meeting. f) Membership of the Society will terminate:

i) If the member's subscription to the Society is unpaid four months after an Annual

General Meeting, excepting if the member is an honorary life member pursuant to paragraph (d) above.

ii) If so determined by the Council as a result of disciplinary action.

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iii) If a member is convicted of any offence punishable by imprisonment which, in the opinion of the Council, reflects on that member's ability to practice as an actuary or brings the actuarial profession into disrepute.

iv) If the member resigns membership.

v) If the member ceases to satisfy the requirements of membership detailed in 5(a)

above, except that continuing membership of at least one of the associations listed in 5(a)(i) above will not apply to retired Fellows and retired Associates.

g) Readmission of a member whose membership has been terminated shall be considered on

application to the Council, at the discretion of the Council whose decision will be final. The Council will not be obliged to give reasons for such decision and may impose conditions as it sees fit.

h) All members must agree in writing to be bound by the Rules.

i) All members will be expected to undertake continuing professional development as

identified by the Council. 6. OFFICERS

a) The Society shall be managed by a Council (the "Council"). The Council shall consist of a President, Immediate Past President, and five other members of the Society (the "General Council Members"). The Council may from time to time appoint a Secretariat to manage the affairs of the Society on behalf of the Council. Subject to Rule 6(c), Voting Members shall each year elect the President and the General Council Members of the Council for the following year. A Vice-President shall be appointed by the Council each year from amongst its members.

b) The President shall hold office for one year and shall be eligible for re-election for a further

period of one year. Any member who has been President shall be eligible for re-election after two years out of that office.

c) The General Council Members shall hold office for two years. Each year the General Council

Members who were elected to the Council two years previously shall retire from the Council and may stand for re-election. The General Council Members who were elected in the previous year shall automatically remain on the Council for another year.

d) The Council shall elect one of its members as Secretary and one of its members as

Treasurer.

e) Nominations for the election of the President and the General Council Members shall close four weeks prior to the Annual General Meeting. The Society shall conduct a ballot for the election of the President and the General Council Members in accordance with Rule 8 and the results shall be announced at the Annual General Meeting. In the event of a tied vote for the General Council Members, the President shall have a casting vote. In the event of a tied vote for the position of President, another ballot will be held for the tied position for those candidates with the highest number of votes. Such vote shall be held within three weeks of the Annual General Meeting. In the event that the second ballot is tied, the President shall be elected by the drawing of lots by the Immediate Past President.

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f) If a vacancy arises amongst the elected members of the Council, then any Voting Member may be co-opted by the Council to fill the vacancy for the remainder of the term for which the position exists, if there are less than four elected members of Council, including the President, the Society must call for nominations for the vacant positions from the members within 3 weeks of the most recent vacancy. The Society shall conduct a ballot in accordance with Rule 8.

g) If a vacancy arises because the immediate past president is unable to attend Council, then

any Voting Member may be co-opted by the Council as an additional General Council Member for the remainder of the term of the Immediate Past President.

7. MEETINGS

a) The Society shall hold an Annual General Meeting not later than 30 November in each year at which the President shall make a report of the proceedings of the Society for the preceding year.

b) Ordinary Meetings of the Society may be arranged by the Council at such times and places

as it may decide. No formal motions affecting the conduct of the Society or pertaining to the Rules of the Society shall be considered at an Ordinary Meeting.

c) Upon receiving a requisition to do so, signed by at least seven Voting Members of the

Society, the Council shall call a Special General Meeting to be held within 28 days of the receipt of the requisition.

d) Members shall be advised in advance of all meetings and in the case of an Annual General

Meeting and a Special General Meeting ("General Meeting") such advice shall be dispatched to members at least 14 days prior to the meeting together with an agenda setting out the business to be conducted at the meeting. Advice shall be in the form determined by the Council which may include electronic communication.

e) At a General Meeting no formal motions affecting the conduct of the Society or pertaining

to the Rules of the Society shall be considered unless a quorum is present. In the case of a General Meeting the attendance of ten Voting Members shall constitute a quorum.

f) The President shall preside over meetings and in his/her absence the Vice-President shall so

preside. In the absence of both the President and Vice-President a chairman shall be elected from the floor.

g) Except as otherwise provided in these Rules, voting at a meeting shall be by voice, show of

hands or ballot at the discretion of the Chairman.

h) A Voting Member shall be entitled to appoint another Voting Member as a proxy and in all cases the instrument of appointment shall be lodged with the Chairman prior to the General Meeting for which the proxy is appointed.

i) The Secretary shall ensure minutes are kept for all meetings.

j) Each Voting Member is entitled to one vote.

k) Unless otherwise specified in these Rules, a power or right reserved to Voting Members

may be exercised by a simple majority of votes.

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8. BALLOT

a) Where a ballot is held under Rules 6, 12, 16 or 18 or otherwise, the following procedure shall apply:

(i) Voting may be done by such means as determined by the Secretary, which may be

by electronic means, using a ballot form. The ballot form shall be sent to Voting Members at their email address notified by them to the Society. The ballot form shall set out the period within which the Voting Members must respond with their vote. Such period must not be less than two weeks..

(ii) A Voting Member may cast a vote on all or any of the matters specified in the notice

given under Rule 8(a)(i) by sending a notice of the way in which that Voting Member's votes are to be cast to the Society by 5.00 pm on or before the date specified in the notice as the closing date for voting. Such vote must be in the formadvised by the Society at the time the vote was requested.

(iii) The Secretariat will count the votes and notify members of the result, which shall be

binding on the members. 9. COUNCIL MEETINGS

a) The Council shall meet at such times and at such places as the President or his/her nominee shall decide and he/she shall determine the procedure at such meetings. No business may be transacted by the Council unless a quorum is present. Attendance of the President or his/her nominee and two other members of the Council shall constitute a quorum. Each Council member shall have one vote. All decisions of the Council will be decided by a majority of votes. In the event of a tie the President shall have the casting vote.

b) Without limiting Rule 9(a), a meeting of the Council may be held by the contemporaneous

linking together by means of audio, or audio and visual, communication by which all members of the Council participating and contributing to a quorum can simultaneously hear each other throughout the meeting.

c) The Secretary shall ensure minutes are kept for all meetings of the Council.

d) The Council may exercise any power of the Society unless otherwise specified in these

Rules. 10. FINANCE

a) The Council shall ensure proper accounting records of the Society are kept. b) The financial year of the Society shall end on 30 September each year.

c) The amounts of the annual subscriptions shall be fixed at the Annual General Meeting.

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d) The Council shall have power, for the purposes of holding any funds of the Society, to open and operate bank accounts or any account of a similar nature, and to invest funds in any manner that is authorised by the Trustee Act 1956 for trustees.

e) The Council shall have the power to raise an overdraft from a bank and to grant security

over the Society's assets. f) The accounts of the Society shall be audited annually by an auditor appointed by the

Council from time to time. The auditor shall not hold any other office in the Society.

g) A statement, audited by the auditor, showing the financial position of the Society shall be presented by the Treasurer at each Annual General Meeting.

11. COMMON SEAL

a) The Society shall have a Common Seal in the form approved by the Council. The Secretary shall have custody of the Seal.

b) Whenever any document which is required to be executed by the Society under Seal, is

executed by the Society, the Seal shall be affixed by the President or his/her nominee and witnessed by one other Council member.

12. ALTERATION OF RULES

Subject to Rule 13(b) these rules may be altered, added to or rescinded if no less than 75% of valid votes are cast in favour of such alteration, addition or rescission. Voting on the proposed alteration, addition or rescission may be by ballot conducted by the Council amongst Voting Members in accordance with Rules or at a General Meeting at the discretion of the Council. Three weeks prior notice of any proposed change to these Rules shall be given to members.

13. WINDING UP

a) Should a majority of Voting Members elect to dissolve the Society at a General Meeting, the assets of the Society shall be realised and the proceeds remaining after paying outstanding liabilities of the Society and the costs of winding up shall be disposed of in the manner determined by Voting Members at that General Meeting. Three weeks prior notice of the intention to dissolve shall be given to members.

b) Notwithstanding any other rule, no distribution may be made of the assets or income of the

Society to any present or past member of the Society otherwise than in consideration, for fair market value, of the provision of goods and services to the Society. This rule may not be amended or deleted without the prior approval of the Commissioner of Inland Revenue.

14. POWERS OF THE PRESIDENT

a) The President is empowered to make written statements concerning actuarial and related matters, on behalf of the Society. Such statements shall be discussed with and circulated to the Council and /or to the Voting Members where practicable prior to publication and where circumstances dictate such statements shall indicate that the views expressed are those generally held by the Society, and that individual members may have other valid views which the Society does not seek to override.

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b) The President shall, if called upon to make verbal statements or comments concerning actuarial or related matters, first seek wherever practicable the views and guidance of the Council.

c) The President, with the approval of the Council, may delegate the powers under this Rule

14 to the Vice-President or the chairperson of a committee when the subject relates to a practice area of that committee. In exceptional circumstances or with the approval of the Council, the President may delegate the powers under this Rule 14 to another Voting Member of the Society.

15. COMMITTEES

a) The Council of the Society can establish committees to help in the management of the affairs of the Society and to conduct research and other work on behalf of the Society.

b) The Council shall appoint the chairperson of each committee and may replace such a

chairperson from time to time. The method and terms of appointment of other members of each committee will be decided by the chairperson of the committee with the approval of the Council. The terms of reference for each committee shall be decided by the chairperson of the committee with the approval of the Council and shall be advised to all members of the Society.

c) Each committee, with the exception of the Professional Conduct Committee, shall report to

each scheduled meeting of the Council in writing and at least once a year to the members of the Society on its activities.

d) Subject to Rule 14(c), the Chairperson of each committee is empowered to communicate on

behalf of the Society in relation to the practice area of that committee. The Chairperson shall endeavour if at all possible to consult with the President or failing that with a Council Member in advance of any public communication.

e) The Council shall appoint working groups or temporary committees as it deems necessary

to fulfil its tasks. f) Each committee shall maintain links with overseas equivalent committees where

appropriate. 16. CODE OF PROFESSIONAL CONDUCT

The Society shall adopt a Code of Professional Conduct by ballot conducted by the Council amongst Voting Members in accordance with Rule 8. The Code shall be adopted if no less than 75% of the valid votes are in favour of its adoption. Amendments shall be adopted in the same manner. The Code of Professional Conduct shall be deemed to be part of these Rules.

17. PROFESSIONAL CONDUCT

The Council of the Society must maintain a Professional Conduct Committee at all times. The Committee will be responsible for the oversight of the professional conduct of members of the Society, including the provision of guidance on professional conduct to members. The Committee shall also initiate any necessary enquiries into complaints of unprofessional conduct and if appropriate institute the disciplinary procedures of the Society. Members agree to be bound by

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the decision of any tribunal or other body established under Disciplinary Procedures promulgated under Rule 18.

18. DISCIPLINARY PROCEDURES

To give effect to Rule 17 the Council shall develop and promulgate Disciplinary Procedures. The Society shall adopt such Disciplinary Procedures by postal ballot conducted by the Council in the same manner as for alterations, additions or rescissions to the Rules under Rule 12. Amendments shall be adopted in the same manner. The Disciplinary Procedures shall be deemed to be part of these Rules.

19. PROFESSIONAL STANDARDS

a) The Society may from time to time issue Professional Standards and Guidance Notes. The Council shall be responsible for the issue and amendment from time to time of all Professional Standards and Guidance Notes.

b) The Council will promulgate the due process necessary for the creation and any subsequent

amendment of such Professional Standards and Guidance Notes. 20. INDEMNIFICATION OF OFFICERS Every officer of the Society and every member of any body or committee, including any committee

(howsoever described) appointed under Disciplinary Procedures promulgated under Rule 18 of the Rules of the Society shall be entitled to be indemnified by the Society against all costs, charges, losses, expenses and liabilities incurred by him or her in good faith in the execution and discharge of his or her duties on behalf of the Society or in relation thereto including (without limitation) any liability incurred by him or her in defending any proceedings which relate to anything done or omitted by him or her in pursuance or purported pursuance of such duties or Disciplinary Procedures.

The society may purchase and maintain insurance for any and every officer and member of such

body or committee (howsoever described) against any liability which by virtue of any rule of law would otherwise attach to him or her in respect of any act or omission on behalf of the Society, including any such act or omission under or relating to such Disciplinary Procedures.

November 2014

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