The Ratings Committee (RC) was involved in a number of tasks throughout the year. After nearly a year of the USCF testbed server being inoperable, the RC was able to continue testing changes to the system that had been charged by the Executive Board in 2010. Additionally, the RC was involved in various minor activities, some of which have led to issues that will need to be discussed in the coming year. We describe our accomplishments below. The most important task of the committee was the testing of several potential changes to the rating system that affected the K-factor in the established rating formulas. We tested two aspects of the formulas simultaneously, and examined them through a simulation analysis which we describe briefly below. The first aspect we examined was the formula for the .effective N. based on the player's rating that ultimately determines the value of K in the established rating formula. We considered two alternatives to the current system formula, both of which were designed to increase the value of K by as much as 45% in the 2000-2200 rating range, but keep K relatively unchanged at low and high rating levels. The other aspect was to revise the impact on K for games played under time controls of G/60 . G/30 among strong players. The two alternatives to the current system we considered involved variations of lowering the value of K the higher one's rating. Along with these two types of changes, we also investigated the simultaneous effect of varying the bonus factor. In total, we considered a total of 18 different rating formula changes to explore, coming from 3 formulas for .effective N. (including the current system), 3 formulas for the value of K for fast time controls in established events (including the current system formula), and two different bonus thresholds (3x3x2=18). For each of the 18 systems, all USCF-rated events were retroactively re-rated starting in 2004, and two types of information were recorded. The first was the final 2012 ratings of all players based on each of the 18 different systems. To summarize this information, these final ratings will be compared to the ratings of the current system to check for increases or decreases in particular rating ranges, and among scholastic and adult players separately. Also, Top 50 rating lists will be produced according to these different systems. The second was a measure of the predictability of ratings on a game-by-game basis, and this measure was summed for all games from 2010 onward. The reason for only including games starting in 2010 was that the changes to the system were implemented starting in 2004, so that games played in 2010 and after would likely have evidenced the effects of rating system changes noticeably six years after implementation. These predictability measures will be summarized overall, and by rating ranges. Summaries of these results are planned to be presented at the May 2012 EB meeting. Over the past year, the RC began testing and optimizing the Glicko-2 rating system. Initially, a system was being tested that was an approximation to the Glicko-2 formulas, but the properties of the approximating system appeared to be worse than the actual Glicko-2 system. The Glicko-2 system is being analyzed for possible adoption by the USCF to address many of the ongoing problems with the current system. Currently, the system has been successfully implemented and applied to a set of USCF game results, though certain parameters of the system need to be optimized for predictability. While thorough testing is necessary and essential, the advantages of such a system include the following: (1) Each player would have not only a rating, but a measure of its reliability . players with reliable ratings will typically not change by large amounts, and players with unreliable ratings could undergo larger rating swings before stabilizing; (2) results against opponents with unreliable ratings would have very little impact on one's own rating; and (3) if a player had an unusually strong performance relative to his/her rating, the player's rating would be estimated to be less reliable, and the player's rating would increase by larger-than-normal amounts . in effect, a bonus-type mechanism would be an essential feature of the system. We anticipate presenting the results of the testing and optimizing to the EB in the coming year. The RC was involved in a number of issues on a smaller scale. One issue involved whether extra games from a player re-entering a tournament could be counted towards norms and titles. The issue arose based on tournaments that were submitted earlier this year in which extra games were initially being counted towards norm/title eligibility. After discussions, it was felt that the intention of the norm/title system was to count only games that were anticipated to be played at the start of a tournament, and any additional games that were .tacked on. would not count towards norm/title eligibility. Enforcing such a rule would prevent situations where players may give themselves extra opportunities to earn norms beyond the number of games advertised for an event. Another issue in which the RC participates from time to time is in the evaluation of research proposals, and making recommendations to the USCF office about whether to provide requesters with data in such situations. In one particular instance, a proposal was made to the USCF to acquire ratings data, along with age and gender, from an identified set of players, as part of a research proposal. While the RC is generally favorable about using ratings data for research, this particular instance involved the researcher having access to information that would compromise the privacy of certain USCF members, a clear violation of the USCF privacy policy. The discussion helped the RC frame a basis by which to evaluate proposals to obtain USCF ratings data by researchers. The current rules for having a match rated require both players in the match having established and published ratings when the match is held. A situation arose this year in which players who were not both established began a match, but by the time the match ended both players had established ratings. It was argued that the spirit of the rules was meant to discourage starting a match unless the match prerequisites were met. To that end, the RC will work with the USCF office to work on a clarification of the match rules so that players would not begin matches unless they both had published ratings that indicated they were established. During the year, an incident came up in which a player gained 200 points over many 1-2 game events by defeating low-rated players. It was discovered that the player had taken advantage of a ratings rule that says that a player must gain at least one rating point per event, even if the player is almost certain to win every game according to the winning expectancy formula. The RC chair suggested that ratings be computed and stored in decimal form, rather than as integers as is currently carried out, and publish ratings rounded to the nearest integer. Such as approach would ensure that fractional gains in rating points would be much slower to accumulate in instances where a player constantly defeats only much weaker players. The USCF office will examine this possibility over the coming year. In another unusual ratings-related occurrence, a player who recently started tournament competition ended up with an established rating that was clearly much higher than the player's ability. It was noted that the player had won all his games in rated events. While determining ratings based on all wins or all losses has the potential to produce unreliable results, the RC chair suggested two approaches going forward. First, if there is some prior information that the player is not at a very high or very low playing strength, then the formulas could be revised to take that into account. One way to do this is to add a fictitious drawn game against a player with a rating that might estimate the player's strength, and use this result in the provisional rating formulas. Second, when a player has all wins or all losses, we should reconsider using the resulting rating from the provisional rating formulas as the starting point for the established rating (the source of the problem). Instead, the formulas could be revised by saving all the game outcomes and begin using the established rating formula once a provisional rating was no longer based on all wins or all losses. This procedure would not use the fictitious drawn game described above. The RC will work with the USCF office and the EB liaison over the coming year to address this issue further. Each year the RC performs a set of diagnostic analyses to monitor trends in the rating pool. Overall rating levels have deflated from the mid-1990s through 2000 when rating floors were decreased by 100 points without a counteracting inflationary mechanism. With the new rating system implemented in 2001, ratings started to re-inflate. The RC has the goal of restoring rating levels back roughly to where they were at the end of 1997. The focus of RC work has been on players with established ratings who have been active over the current and previous three years and who are aged 35-45 years old in the current year. Based on the continued decline in ratings for this group, the RC recommended four years ago lowering the bonus point threshold from B=10 to B=6 to accelerate the re-inflation of the rating pool. This change was applied retroactively to the beginning of 2008. Over the past three years, the average rating for this group has increased by about 20 points in 2009, only about 3 points in 2010, and by 16 points in 2011. The average rating is currently about 23 points lower than the average rating at the end of 1997. Based on the continued increase in ratings for this group, the RC would recommend increasing the bonus threshold to B=8 to slow down the rating increases, and continuing to monitor rating movement in this subset of players, but our recommendation depends on the EB's reactions to the K-factor analyses described at the start of this report.