1. Annual Statutory Statement of Actuarial Opinion (SAO) for the Workers’ Compensation Fund and for the Disability Benefits Fund The consultant must provide an annual “Statement of Actuarial Opinion” relating to the losses and Loss Adjustment Expenses (LAE) of NYSIF for each year ending December 31 within the scope of this contract. The opinion shall be in the format of and contain the information required by the NAIC Annual Statement Instructions as well as by the New York State Department of Financial Services and must be submitted prior to March 1 of the following year. The consultant must also provide the “Actuarial Opinion Summary” and any other items required to be submitted by their due dates. In addition, the consultant shall prepare a comprehensive actuarial report of their review of the loss and LAE reserves of NYSIF annually for each of the years ending December 31. 2. Quarterly Reserve Reviews of the Workers’ Compensation Fund The consultant will recommend quarterly loss and LAE reserves that may be used in the interim statutory financial statements filed with the New York State Department of Financial Services due May 15, August 15, and November 15. The quarterly reserve estimates must be provided and presented to NYSIF management at least 3 business days prior to the end of the quarter. The consultant should point out any trends in claims or premium levels that might materially impact the Fund’s current or future financial status due to reserve uncertainties. 3. Review and Confirmation of Loss Reserves for Aggregate Trust Fund (ATF) NYSIF’s Actuarial Department computes loss reserves for the ATF in accordance with the requirements specified by Section 27 of the New York State Workers’ Compensation Laws (WCL). These computations use survival and remarriage tables and a 5% interest rate for discounting as required by law. The consultant will provide an annual estimate of the ATF’s loss and LAE liabilities using alternate interest rates and more current mortality table and remarriage assumptions. The consultant will evaluate the loss liabilities of the ATF independently, compare them to the reserves calculated by NYSIF, and comment as to the deficiency or redundancy of these reserves. The consultant will produce an annual actuarial report containing its calculations of the loss and LAE liabilities under different scenarios and the expected future payout of those liabilities.
