andyclang's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/2175681/comments http://seekingalpha.com/currents/post/574431?source=feed#comment-10283711 10283711
And soon too.]]> Mon, 08 Oct 2012 10:41:23 -0400
And soon too.]]> http://seekingalpha.com/article/513881/comments?source=feed#comment-4747681 4747681
Do this by (a) changing the way they are financed from PayGo to Actuarial Advance Funding (AAF) and (b) passing strong laws with teeth to protect the assets and to define correctly how benefits accrue, so that for Social Security you can pas a law that prevents any cutbacks in past service accrued benefits, and for both systems to determine the 'ownership rights', that is voting rights of each participant.

You do AAF by doing an annual actuarial valuation--similar to but still very different from the way both chief actuaries do it for Social Security and Medicare in the US.

PayGo gets far too little investment reruns to help pay the benefits, thus making it very expensive, while it is also inherently unstable--whereas doing annual actuarial valuations will provide lots of investment returns compounded over time to help pay the benefits, thus making these vital systems very inexpensive, while also making them highly stable and financially sound in the long term.

You must use an Actuarial Cost Method called, the Entry Age Normal Cost Method, which does ten different things, all at once each necessary for the system to work.

This methodology is always in 100% Actuarial Balance—in fact the term is never used by pension consulting actuaries at all. The assets plus the Present Value of future contributions is always equal to the present value of prospective benefits, both past and future. The contributions are determined to make it so.

If this is the first time you have heard these terms that is not an accident--my fellow actuaries have been hiding this secret for nearly a century now. They have conflicts of interest galore and have never successfully come to grips with them, and doubtless never will. They are also responsible for taking advantage of poor pension laws and pension accounting rule on behalf of corporate pension plan sponsors, screwing millions of participants out of more than a trillion dollars and causing the near total collapse of the entire pension system.

Oh, I almost forgot---fixing these systems will also fix the global economy and do it quickly and big time and in the very long term grow capitalism while also fixing it--making the Goose That Laid The Golden Eggs lay even more of them, but distributing them a lot more evenly.

I have been saying this beginning 47 years ago.

Andy Lang]]> Tue, 24 Apr 2012 18:27:43 -0400
Do this by (a) changing the way they are financed from PayGo to Actuarial Advance Funding (AAF) and (b) passing strong laws with teeth to protect the assets and to define correctly how benefits accrue, so that for Social Security you can pas a law that prevents any cutbacks in past service accrued benefits, and for both systems to determine the 'ownership rights', that is voting rights of each participant.

You do AAF by doing an annual actuarial valuation--similar to but still very different from the way both chief actuaries do it for Social Security and Medicare in the US.

PayGo gets far too little investment reruns to help pay the benefits, thus making it very expensive, while it is also inherently unstable--whereas doing annual actuarial valuations will provide lots of investment returns compounded over time to help pay the benefits, thus making these vital systems very inexpensive, while also making them highly stable and financially sound in the long term.

You must use an Actuarial Cost Method called, the Entry Age Normal Cost Method, which does ten different things, all at once each necessary for the system to work.

This methodology is always in 100% Actuarial Balance—in fact the term is never used by pension consulting actuaries at all. The assets plus the Present Value of future contributions is always equal to the present value of prospective benefits, both past and future. The contributions are determined to make it so.

If this is the first time you have heard these terms that is not an accident--my fellow actuaries have been hiding this secret for nearly a century now. They have conflicts of interest galore and have never successfully come to grips with them, and doubtless never will. They are also responsible for taking advantage of poor pension laws and pension accounting rule on behalf of corporate pension plan sponsors, screwing millions of participants out of more than a trillion dollars and causing the near total collapse of the entire pension system.

Oh, I almost forgot---fixing these systems will also fix the global economy and do it quickly and big time and in the very long term grow capitalism while also fixing it--making the Goose That Laid The Golden Eggs lay even more of them, but distributing them a lot more evenly.

I have been saying this beginning 47 years ago.

Andy Lang]]>