Enrolled Actuary
Encyclopedia
An Enrolled Actuary is an actuary
who has been licensed by a Joint Board of the Department of the Treasury
and the Department of Labor
to perform a variety of actuarial tasks required of pension plans in the United States
by the Employee Retirement Income Security Act
of 1974 (ERISA). As of November 2007, there were approximately 4,600 Enrolled Actuaries.
administers two examinations to prospective Enrolled Actuaries. Once the two examinations have been passed, and an individual has also obtained sufficient relevant professional experience, that individual becomes an Enrolled Actuary.
The first exam (EA-1) tests basic knowledge of the mathematics of compound interest, the mathematics of life contingencies, and practical demographic analysis.
The second (EA-2) examination consists of two segments. Segment A covers the selection of actuarial assumptions, actuarial cost methods, and the calculation of minimum (required) and maximum (tax-deductible) contributions to pension plans. Segment B tests knowledge of relevant federal pension laws (in particular, the provisions of ERISA) as they affect pension actuarial practice.
More detailed information about these examinations can be found on the websites of the Joint Board or the Society of Actuaries.
firms, investment and insurance brokers, accounting firms, government organizations, and law firms. Some firms that employ Enrolled Actuaries combine two or more of these practice specialties.
, the American Academy of Actuaries
. the Conference of Consulting Actuaries
or the American Society of Pension Professionals and Actuaries
.
Actuary
An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms ....
who has been licensed by a Joint Board of the Department of the Treasury
United States Department of the Treasury
The Department of the Treasury is an executive department and the treasury of the United States federal government. It was established by an Act of Congress in 1789 to manage government revenue...
and the Department of Labor
United States Department of Labor
The United States Department of Labor is a Cabinet department of the United States government responsible for occupational safety, wage and hour standards, unemployment insurance benefits, re-employment services, and some economic statistics. Many U.S. states also have such departments. The...
to perform a variety of actuarial tasks required of pension plans in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
by the Employee Retirement Income Security Act
Employee Retirement Income Security Act
The Employee Retirement Income Security Act of 1974 is an American federal statute that establishes minimum standards for pension plans in private industry and provides for extensive rules on the federal income tax effects of transactions associated with employee benefit plans...
of 1974 (ERISA). As of November 2007, there were approximately 4,600 Enrolled Actuaries.
Qualifications
The Joint Board for the Enrollment of ActuariesJoint Board for the Enrollment of Actuaries
The Joint Board for the Enrollment of Actuaries licenses actuaries to perform a variety of actuarial tasks required of pension plans in the United States by the Employee Retirement Income Security Act of 1974...
administers two examinations to prospective Enrolled Actuaries. Once the two examinations have been passed, and an individual has also obtained sufficient relevant professional experience, that individual becomes an Enrolled Actuary.
The first exam (EA-1) tests basic knowledge of the mathematics of compound interest, the mathematics of life contingencies, and practical demographic analysis.
The second (EA-2) examination consists of two segments. Segment A covers the selection of actuarial assumptions, actuarial cost methods, and the calculation of minimum (required) and maximum (tax-deductible) contributions to pension plans. Segment B tests knowledge of relevant federal pension laws (in particular, the provisions of ERISA) as they affect pension actuarial practice.
More detailed information about these examinations can be found on the websites of the Joint Board or the Society of Actuaries.
Employers
Enrolled Actuaries generally work for human resource consultingHuman resource consulting
Human resource consulting is an $18.4 billion industry that has emerged from management consulting, asclients' needs have become more complex and specialized, widening the gap between HR needs and work force capabilities, and thus accentuating the ability of HR management consulting firms to fill...
firms, investment and insurance brokers, accounting firms, government organizations, and law firms. Some firms that employ Enrolled Actuaries combine two or more of these practice specialties.
Organizations
Many Enrolled Actuaries belong to one or more of the following organizations: the Society of ActuariesSociety of Actuaries
The Society of Actuaries is a professional organization for actuaries based in North America. It was founded in 1949 as the merger of two major actuarial organizations in the United States: the Actuarial Society of America and the American Institute of Actuaries...
, the American Academy of Actuaries
American Academy of Actuaries
The American Academy of Actuaries, also known as the “Academy” or the AAA, is the body that represents and unites United States actuaries in all practice areas...
. the Conference of Consulting Actuaries
Conference of Consulting Actuaries
The Conference of Consulting Actuaries, also known as the Conference or the CCA, is a professional society of actuaries engaged in consulting in the United States and Canada, as opposed to those employed by insurance companies...
or the American Society of Pension Professionals and Actuaries
American Society of Pension Professionals and Actuaries
The American Society of Pension Professionals & Actuaries or ASPPA is a national organization for career retirement plan professionals. The membership consists of the many disciplines supporting retirement income management and benefits policy. Its members are part of the diversified, technical,...
.