Description: In the absence of a generally accepted guide to actuarial principles and practices for pension plans, a new professional firm offering actuarial consulting services has both the freedom to establish and the burden of establishing the professional policies by which it will be guided. Our thinking about the practical and professional necessity of annual valuations is reflected in this paper. From Transactions of Society of Actuaries 1972, Vol. 24, Pt. 1, No. 69 AB.