Enrolled actuary

Enrolled Actuary is a professional designation in the United States for actuaries involved in the evaluation, management, and certification of pension and welfare plans. The designation is granted by the Joint Board for the Enrollment of Actuaries, which operates under the jurisdiction of the Department of the Treasury and the Department of Labor. Enrolled Actuaries are authorized to perform a variety of tasks related to pension plans, including certifying the financial status of these plans to the federal government.

Overview

An Enrolled Actuary (EA) specializes in the field of pension actuarial science and is required to pass a series of examinations administered by the Joint Board for the Enrollment of Actuaries. The role of an EA is critical in ensuring the financial health and compliance of pension plans with various regulatory requirements, including those outlined in the Employee Retirement Income Security Act (ERISA) of 1974.

Qualifications

To become an Enrolled Actuary, candidates must meet specific education and examination requirements. These include passing a set of exams that cover pension actuarial science and related laws. Additionally, candidates must have sufficient experience working with pension plans. The Joint Board for the Enrollment of Actuaries maintains the standards and qualifications for the profession.

Responsibilities

Enrolled Actuaries are responsible for calculating, reporting, and certifying the funding status of pension and other welfare benefit plans. Their work includes determining minimum funding requirements, performing actuarial valuations, and ensuring compliance with federal regulations. EAs play a crucial role in advising plan sponsors on the financial implications of plan design, funding strategies, and regulatory compliance.

Regulatory Environment

The regulatory environment for pension plans in the United States is complex, with oversight from both the Department of the Treasury and the Department of Labor. Enrolled Actuaries must be well-versed in the laws and regulations governing pension plans, including ERISA, the Pension Protection Act of 2006, and other relevant legislation. Their expertise is essential in navigating the regulatory landscape and ensuring that pension plans meet all legal requirements.

Professional Development

Continuing professional development is essential for Enrolled Actuaries to stay current with changes in laws, regulations, and actuarial practices. Professional organizations, such as the American Academy of Actuaries and the Society of Actuaries, offer educational programs, seminars, and resources to support the ongoing education of EAs.

Ethical Standards

Enrolled Actuaries are bound by a code of professional conduct that emphasizes integrity, objectivity, and competence. They must adhere to ethical standards that ensure the confidentiality and accuracy of the actuarial work performed for pension plans. The Joint Board for the Enrollment of Actuaries and professional actuarial organizations enforce these standards to maintain public trust in the profession.

See Also

• Actuary
• Employee Retirement Income Security Act (ERISA)
• Pension
• American Academy of Actuaries
• Society of Actuaries

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