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Ken
March 27th 2005, 03:06 PM
I was wondering if anyone has considered whether the number of pension consulting actuaries would decrease if defined contribution plans replace all existing defined benefit plans or slowly phase them out.

Also, what would happen to consultants in the health industry if the government takes control of the health care industry as prices of health insurance get out of hand?

Irish Blues
April 3rd 2005, 12:39 PM
I'll answer the first part of this....taken from a pension actuary who told me this on a recent interview.

He says that companies are moving away in large numbers from defined benefit plans, and either replacing them with defined contribution plans or doing nothing. He told me that the role of pension actuaries was "changing" but didn't get into details. He saw a looming reduction in the number of pension actuaries needed but that if Congress passed a sweeping Social Security reform bill as has been pushed by the President, then actuaries would be needed in large numbers by the government and that some companies might drop their plans (depending on what the final bill looks like).

In the end, he indicated that short-term the pension field was in a pinch, but not a tight squeeze. Long-term, he thought the field could be in for either a major shakeout or a major boom - there wouldn't be much of an in-between.