Enrolled Actuary Certification and Administration

To become an Enrolled Actuary, you'll need to meet the certification requirements set by the Joint Board for the Enrollment of Actuaries. The Joint Board is a collaborative effort between the U.S. Department of the Treasury and the Social Security Administration.

The certification process involves passing a series of exams that test your knowledge of actuarial science and its applications. These exams are designed to ensure that Enrolled Actuaries have the necessary skills and expertise to perform their duties accurately.

To stay certified, Enrolled Actuaries must meet ongoing education requirements, which include completing continuing professional education (CPE) courses and maintaining a certain level of professional development. This ensures that their skills stay up-to-date and relevant in the ever-changing field of actuarial science.

Broaden your view: Credit Risk Management Certification

Actuarial science is a field that deals with the measurement and management of risk in finance, insurance, and other industries. It's a specialized field that requires a deep understanding of mathematics, statistics, and economics.

An Enrolled Actuary is a professional who has satisfied the standards and qualifications set forth in the regulations of the Joint Board for the Enrollment of Actuaries.

Actuarial science involves using mathematical models to analyze and predict future events, such as the likelihood of an insurance claim or the growth of a pension fund.

The Employee Retirement Income Security Act of 1974 (ERISA) requires that certain actuarial services be performed by approved professionals.

Actuaries use their expertise to help organizations make informed decisions about investments, benefits, and risk management.

For your interest: American Society of Pension Professionals & Actuaries

To become an enrolled actuary, you'll need to satisfy the standards and qualifications set forth by the Joint Board for the Enrollment of Actuaries.

The Joint Board administers two examinations to prospective enrolled actuaries, which you'll need to pass to become an enrolled actuary.

The first exam, EA-1, tests your basic knowledge of mathematics related to compound interest, life contingencies, and demographic analysis.

Broaden your view: Enrolled Agent Insurance

Once you've passed the EA-1 exam, you'll need to obtain sufficient relevant professional experience.

The second exam, EA-2, consists of two segments: F and L.

Segment F covers actuarial assumptions, actuarial cost methods, and pension plan contributions.

Segment L tests your knowledge of federal pension laws, specifically ERISA, as they affect pension actuarial practice.

Readers also liked: Pension Fund Asset Allocation

Enrolled actuaries are subject to the Joint Board Regulations and Treasury Department Circular Number 230.

These regulations are a must-know for enrolled actuaries, and they can be viewed in the Joint Board Regulations PDF.

Not all enrolled actuaries are required to complete the Qualification Standards' CE requirements. In fact, only those whose practice is limited to certifications on government forms are exempt.

This exemption is quite specific and doesn't apply to the vast majority of enrolled actuaries, as it requires avoiding many services that enrolled actuaries typically offer.

Here are some examples of services that, if performed, would subject an enrolled actuary to the annual 30 hours of CE required by the Qualification Standards:

The Joint Board is responsible for enrolling individuals who wish to perform actuarial services under ERISA. It's composed of five members, with three appointed by the Secretary of the Treasury and two by the Secretary of Labor. The Pension Benefit Guaranty Corporation also has a representative with no voting power.

The Joint Board's Executive Director is in charge of administering the Enrolled Actuary program and conducting disciplinary proceedings.

Enrolled Actuaries are subject to the Joint Board Regulations and Treasury Department Circular Number 230.

Enrolled Actuaries must view the Joint Board Regulations PDF to understand their governing regulations.

The Joint Board Regulations and Treasury Department Circular Number 230 are the primary governing documents for Enrolled Actuaries.

You can access the Joint Board Regulations PDF to learn more about the regulations that apply to Enrolled Actuaries.

Enrolled Actuary – Frequently Asked Questions provides additional information about the regulations and requirements for Enrolled Actuaries.

Worth a look: Bcbs Provider Enrollment Phone Number

Not all enrolled actuaries have to complete the 30 hours of CE required by the Qualification Standards. Only those who have a limited practice, specifically focusing on government forms and certifications, are exempt.

This exemption doesn't apply to the majority of enrolled actuaries, as it's very restrictive. To qualify for this exemption, an enrolled actuary would have to steer clear of many common services they provide.

Here are some examples of services that would disqualify an actuary from the exemption:

Organizations that employ enrolled actuaries include insurance companies, pension funds, and government agencies. Many of these organizations require actuaries to have a strong understanding of financial mathematics and statistics.

Actuaries working in these organizations use their skills to analyze data and develop models that help inform business decisions. This can include assessing the risks and potential costs associated with various business ventures.

Some organizations also employ actuaries to work in consulting roles, where they help other companies develop and implement actuarial models. This can be a valuable resource for companies looking to improve their financial management and risk assessment.

Curious to learn more? Check out: How Do Insurance Companies Reduce the Risk of Moral Hazard

Enrolled actuaries can also work in academia, teaching and conducting research in actuarial science. This can be a rewarding career path for those who enjoy sharing their knowledge with others.

These organizations value the expertise and skills that enrolled actuaries bring to the table, and they often provide opportunities for professional growth and development.

The Joint Board for the Enrollment of Actuaries has temporarily waived the physical presence requirement for enrolled actuaries to earn continuing professional education (CPE) credits.

This waiver applies to formal programs held between January 1, 2020, and December 31, 2022. The waiver is in response to the challenges posed by the COVID-19 pandemic, particularly those related to traveling and participating in gatherings that require close contact with others.

Enrolled actuaries still need to earn the same number of CPE credits as required otherwise. The waiver only waives the physical location requirement, not the overall CPE credit requirement.

The waiver does not reduce the number of CPE credits required, and other requirements for CPE credits still apply. Enrolled actuaries must still earn credit hours for formal programs that meet specific criteria, including allowing interaction with the instructor and having at least three participants engaged in substantive pension service.

The certificate of completion issued by the program's sponsor must indicate that the program is a formal program. This ensures that the CPE credits earned are legitimate and meet the necessary standards.

Enrolled actuaries who did not receive a notice of the waiver by email should contact the Joint Board at [email protected].

Recommended read: Incurred but Not Reported

Meeting the CE requirements of both the JBEA and the Qualification Standards is not that difficult, just 12 hours of formal core programs and 18 hours of study groups or online forums per year will do.

An enrolled actuary must have a certain number of qualifying hours of CE to respond to client requests, for instance, determining the cost impact of a retirement plan's benefit structure.

Declining to answer or enlisting the services of another actuary who has the required hours of CE is the right thing to do if you don't meet the CE requirements.

Responding to a request despite not having enough qualifying CE hours is a violation of the Code of Professional Conduct and can lead to discipline.

Attending 12 hours of formal core programs, of which three hours are programs dedicated to professionalism/ethics, and reading regulations or other books and articles on relevant technical topics will meet both CE standards.

As an actuary, you need to do a little soul-searching before taking on an assignment: do you truly believe you're qualified to tackle this task?

For another approach, see: Best Actuarial Science Programs