Retired Members at Risk?

1. What “Retired” Means in AIC

Under the AIC Consolidated Regulations (2020), a retired member “shall not provide professional service or Professional Assistance of any kind as set out in CUSPAP” (Consolidated Regulations 2020, p. 12).

CUSPAP defines “professional services” broadly to include appraisal, review, consulting, and related functions. This prohibition is intended to protect both retired members and the public.

2. Professional Liability Insurance vs. Extended Reporting Coverage

• Active Members: All practicing members must carry coverage under the AIC Professional Liability Insurance Program. This protects both the member and the public for professional services performed while the member is active.
• Retired Members: Retired members are removed from the insurance program. They may purchase Extended Reporting Insurance Coverage (“run-off” or “tail” coverage), which only applies to work performed before retirement.
• Gap: If a retired member provides new professional services after retirement — such as chairing or adjudicating a discipline panel — that activity falls outside insurance coverage.

This means a retired member acting as a panel chair may unknowingly expose themselves to personal liability.

3. What’s Not Disclosed

While members are notified of panelists and see the “(Retired)” designation, certain facts are not disclosed:

• Retired panelists do not complete mandatory CPD and may not be current on the latest CUSPAP or regulatory amendments.
• Retired panelists lack Professional Liability Insurance coverage for any new services.
• Retired panelists are formally prohibited from performing professional services under CUSPAP and AIC regulations.

4. Impact on Active Members

• Fairness: Active members are judged by individuals not required to maintain CPD or current practice competence.
• Legitimacy: Decisions involving retired panelists risk being challenged as improperly constituted because retired members are barred from providing professional services.
• Bias & Confidence: A system that appoints ineligible panelists undermines trust in the fairness of discipline.
• Systemic Risk: If courts rule such panels were unlawful, many past disciplinary cases could be invalidated.

5. Why This Matters to Retired Members

This is not only an active member issue. Retired members themselves may be placed at risk:

• They are invited to roles that may fall outside their permitted scope.
• They may inadvertently act without insurance protection.
• They could become personally exposed to claims or challenges.

6. Next Steps for Members

Members should ask:

1. Why is AIC appointing retired members to roles explicitly prohibited under its own rules?
2. Who will protect retired members from personal liability if they are sued?
3. How can members ensure fair and lawful panels in future?

Conclusion:

This is a governance issue. Both active and retired members deserve protection from risk, and all members deserve fair and lawful processes. AIC should end the practice of appointing retired members to adjudicating panels, reinstate compliance with CUSPAP and the Consolidated Regulations, and fully disclose risks to all members.