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JOINT BOARD FOR THE
ENROLLMENT OF ACTUARIES
20 CFR Part 901
[TD 9517]
RIN 1545–BC82

Regulations Governing the
Performance of Actuarial Services
Under the Employee Retirement
Income Security Act of 1974
Joint Board for the Enrollment
of Actuaries.
ACTION: Final regulations.
AGENCY:

This document contains final
regulations under section 3042 of the
Employee Retirement Income Security
Act of 1974 (ERISA) relating to the
enrollment of actuaries. These
regulations update the eligibility
requirements for performing actuarial
services for ERISA-covered employee
pension benefit plans, including the
continuing professional education
requirements, and the standards for
performing such actuarial services.
These regulations will affect employee
pension benefit plans and the actuaries
providing actuarial services to those
plans.
DATES: Effective date: These regulations
are effective on May 2, 2011.
FOR FURTHER INFORMATION CONTACT:
Patrick McDonough, Executive Director,
Joint Board for the Enrollment of
Actuaries, at (202) 622–8229 (not a tollfree number).
SUPPLEMENTARY INFORMATION:

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SUMMARY:

Paperwork Reduction Act
The collections of information
contained in these final regulations have
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
3507(d)) under control number 1545–
0951.
The collections of information in the
regulations are in sections 901.1(i),
901.1(j), 901.10, 901.11(d),
901.11(f)(2)(D), 901.11(f)(2)(G) and (H),
901.11(f)(3)(ii), 901.11(g)(3), 901.11(j)(1),
901.11(j)(2), 901.11(k), 901.11(l)(4)(v),
901.12(e), and 901.54. These collections
of information are required in order for
the Joint Board to carry out its function
under section 3042 of ERISA, which
provides that the Joint Board shall, by
regulations, establish reasonable
standards and qualifications for persons
performing actuarial services with
respect to plans subject to ERISA and,
upon application by any individual,
shall enroll such individual if the Joint
Board finds that such individual

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satisfies such standards and
qualifications, and also provides that
the Joint Board may, after notice and an
opportunity for a hearing, suspend or
terminate the enrollment of an
individual who fails to discharge his
duties under ERISA or who does not
satisfy the requirements for enrollment.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number.
Background
This document contains final
regulations under section 3042 of the
Employee Retirement Income Security
Act of 1974 (88 Stat. 829), Public Law
93–406 (ERISA). Section 3042 of ERISA
provides that the Joint Board for the
Enrollment of Actuaries (Joint Board)
shall, by regulations, establish
reasonable standards and qualifications
for persons performing actuarial
services with respect to plans subject to
ERISA and, upon application by any
individual, shall enroll such individual
if the Joint Board finds that such
individual satisfies such standards and
qualifications. Section 3042 also
provides that the Joint Board may, after
notice and an opportunity for a hearing,
suspend or terminate the enrollment of
an individual who fails to discharge his
duties under ERISA or who does not
satisfy the requirements for enrollment.
Consistent with section 3042, the
Joint Board has promulgated regulations
at 20 CFR part 901, addressing
eligibility for enrollment, requirements
for continuing professional education of
enrolled actuaries, professional
standards for performance of actuarial
services under ERISA, bases for
disciplinary actions and the procedures
to be followed in taking those actions.
The Joint Board last issued
comprehensive amendments to the
regulations regarding section 3042 in
1988 (53 FR 34484). In anticipation of
amending the Joint Board regulations,
the Joint Board issued a Request for
Information (RFI) which was published
in the Federal Register on June 30, 2004
(69 FR 39376). On December 21, 2007,
the Joint Board issued final regulations
relating to user fees for the initial
enrollment and reenrollment as an
enrolled actuary in the Federal Register
(72 FR 72606). On September 21, 2009,
the Joint Board issued proposed
regulations under section 3042 (74 FR
48030). Written public comments were
received on the proposed regulations,
and a public hearing was held on
February 25, 2010.

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Explanation of Provisions
I. Overview
These regulations finalize the rules
proposed in REG–159704–03 (published
September 21, 2009), with certain
modifications highlighted in this
preamble.
II. Eligibility for Initial Enrollment
These regulations provide that an
individual applying to be an enrolled
actuary must fulfill (1) an experience
requirement, (2) a basic actuarial
knowledge requirement, and (3) a
pension actuarial knowledge
requirement. All applicants for
enrollment must agree to comply with
these regulations and with any other
guidance as required by the Joint Board.
These regulations provide two
alternative ways of satisfying the
experience requirement. Within the
10-year period immediately preceding
the date of the application, the applicant
must have completed either (1) at least
36 months of certified responsible
pension actuarial experience, or (2) at
least 18 months of certified responsible
pension actuarial experience if the
applicant has a total of 60 months of
certified responsible actuarial
experience.
These regulations retain the
definitions of responsible actuarial
experience and responsible pension
actuarial experience. Responsible
actuarial experience means actuarial
experience (1) involving participation in
making determinations that the methods
and assumptions adopted in the
procedures followed in actuarial
services are appropriate in the light of
all pertinent circumstances, and (2)
demonstrating a thorough
understanding of the principles and
alternatives involved in such actuarial
services. Responsible pension actuarial
experience means responsible actuarial
experience involving valuations of the
liabilities of pension plans, wherein the
performance of such valuations requires
the application of principles of life
contingencies and compound interest in
the determination, under one or more
standard actuarial cost methods, of such
of the following as may be appropriate
in the particular case: (1) Normal cost;
(2) accrued liability; (3) payment
required to amortize a liability or other
amount over a period of time; and (4)
actuarial gain or loss.
These regulations define certified
responsible actuarial experience to
mean responsible actuarial experience
of an individual that has been certified
in writing by the individual’s
supervisor. These regulations define
certified responsible pension actuarial

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Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / Rules and Regulations
experience to mean responsible pension
actuarial experience of an individual
that has been certified in writing by the
individual’s supervisor if the supervisor
is an enrolled actuary. If the
individual’s supervisor is not an
enrolled actuary, these regulations
provide that the pension actuarial
experience must be certified in writing
by both the supervisor and an enrolled
actuary with knowledge of the
individual’s pension actuarial
experience.
One commenter requested greater
flexibility in satisfying the experience
requirements for enrollment based on
experience in more specialized pension
areas of practice. These regulations
retain the requirement that enrolled
actuaries have certified responsible
pension actuarial experience as
previously defined because the Joint
Board believes that a broad base of
pension knowledge is necessary to
recognize issues that may arise even in
a specialized area of practice.
Nonetheless, the Joint Board recognizes
that the broad base of experience
needed to become an enrolled actuary
does not qualify an enrolled actuary to
do every type of work for which an
enrolled actuary is required.
In response to the proposed
regulation, one commenter suggested
that, given the pace of change and for
consistency with the experience
requirement for return from inactive
status, all of an applicant’s responsible
pension experience should be
completed within 5 years preceding
enrollment (rather than 10 years). The
commenter pointed out that for
reenrollment under the proposed
regulations, an inactive enrolled actuary
would need more recent experience.
These regulations retain the rule in the
current regulations that requires the
experience for initial enrollment to have
been completed within the previous 10
years, and, as explained in more detail
in section IV of this preamble (Inactive
Enrolled Actuaries), they retain the
requirements in the proposed
regulations for an enrolled actuary who
wishes to return to active status from
inactive status that depends on how
long the actuary has been on the
inactive roster. The difference in the
timing of the required experience for
initial enrollment and for returning from
inactive status reflects the different
purposes served by the two
requirements. The Joint Board requires
enrolled actuaries who let their
enrollment lapse into inactive status to
demonstrate their return to active
practice with more recent experience. It
can be expected that, in general, such
actuaries are farther along in their

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careers and are more likely to quickly
build up, or return to, an active
independent practice. For such
actuaries, the Joint Board believes that
recent pension experience is paramount.
In contrast, it can be expected that
newly enrolled actuaries will take
longer to develop active independent
practices. For these actuaries, the Joint
Board believes that a longer look-back
period is reasonable.
In response to the proposed
regulations, one commenter suggested
that, in order to make sure that an
actuary does not lose the opportunity to
get credit for responsible actuarial and
responsible pension actuarial
experience, enrolled actuaries should be
required to certify the experience of
potential candidates annually and when
the potential candidate changes
supervisor or employer. The Joint Board
feels it is not necessary to add this
additional paperwork requirement for
enrolled actuaries who supervise and
train actuaries who are not yet enrolled.
The Joint Board will address on a caseby-case basis situations involving the
inability of the Executive Director to
obtain certification of an applicant’s
experience.
These regulations do not amend the
definition of basic actuarial knowledge
required for initial enrollment. Basic
actuarial knowledge may be obtained in
one of three ways—successful
completion of a Joint Board basic
examination; successful completion of
one or more proctored examinations
which are given by an actuarial
organization and which the Joint Board
has determined cover substantially the
same subject areas, have at least
comparable levels of difficulty, and
require at least the same competence as
the Joint Board basic examination; or
receipt of a bachelor’s or higher degree
in either actuarial mathematics or
another area which include at least as
many semester hours or quarter hours as
required by the Joint Board in
mathematics, statistics, actuarial
mathematics, and other areas
determined by the Joint Board.
These regulations provide that an
applicant may demonstrate pension
actuarial knowledge through successful
completion, within the 10-year period
immediately preceding the date of the
application for enrollment, of either the
Joint Board pension examination
(currently administered as the EA–2A
and EA–2B), or an approved pension
examination, or examinations, given by
an actuarial organization which the
Joint Board has determined cover
substantially the same subject areas,
have at least comparable levels of
difficulty, and require at least the same

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competence as the Joint Board pension
examination. For this purpose, these
regulations provide that the date of
successful completion of an
examination is generally the date a
candidate sits for the examination,
provided that the candidate receives a
passing grade on that examination.
However, an applicant who sat for a
given examination prior to the effective
date of these regulations will be deemed
to have sat for such examination on the
effective date.
III. Eligibility for Re-Enrollment
A. Requirement To File an Application
for Renewal
These regulations do not change the
requirement that an enrolled actuary
seeking to renew his or her enrollment
must file an application for renewal of
enrollment between October 1, 2010 and
March 1, 2011, and between October 1
and March 1 of every third year
thereafter. An enrolled actuary seeking
renewal must complete the required
continuing professional education hours
prior to submitting an application for
renewal, but in no event later than the
December 31 immediately preceding the
March 1 due date for the application for
renewal. These regulations continue to
provide that the effective date for
renewal of enrollment for individuals
who are currently enrolled (and in
active status) and who file complete
renewal applications by the March 1
due date shall be the April 1
immediately following the March 1 due
date. The effective date of renewal of
enrollment for an individual who files
a complete renewal application after the
March 1 due date is the later of the April
1 immediately following the due date of
application and the date of the notice of
renewal.
B. Continuing Professional Education
Requirement
1. Number of Hours Required
These regulations retain the general
requirement that an enrolled actuary
earn 36 hours of continuing professional
education during each full enrollment
cycle. These regulations define the
enrollment cycle to mean the three-year
period from January 1, 2011, to
December 31, 2013, and every three-year
period thereafter.
Several commenters suggested that
the time period for earning continuing
professional education credit should
extend beyond the end of the
enrollment cycle. The Joint Board
decided that it is reasonable to expect
enrolled actuaries to make time for
satisfying their continuing professional
education requirement during the

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enrollment cycle and that extending the
end of each enrollment cycle so that it
overlaps with the beginning of the next
enrollment cycle would create an
unnecessary complication. However, an
enrolled actuary who does not complete
the required hours by December 31 of
the enrollment cycle may submit an
application to return to active status
after completing the required hours.
Such an individual’s reenrollment will
be effective on the later of (1) the April
1 immediately following the end of the
enrollment cycle or (2) the date that the
Joint Board grants the application.
These regulations include examples that
illustrate when an enrolled actuary’s
reenrollment will be effective.
These regulations make no change to
the rule that newly enrolled actuaries
who are initially enrolled during the
first year of an enrollment cycle must
complete 24 hours of continuing
professional education hours in the
enrollment cycle during which they are
enrolled. Newly enrolled actuaries who
are initially enrolled during the second
year of an enrollment cycle must
complete 12 hours of continuing
professional education hours in the
enrollment cycle during which they are
enrolled. Newly enrolled actuaries who
are initially enrolled during the last year
of an enrollment cycle are exempt from
the continuing education requirements
until the next enrollment cycle, but
must file a timely application for
renewal.
These regulations require at least 18
hours of continuing professional
education in core subject matter during
the enrollment cycle that ends
December 31, 2010, for all enrolled
actuaries enrolled during the entire
cycle. Thereafter, for actuaries who have
already been enrolled for at least one
full enrollment cycle before the start of
a new enrollment cycle, these
regulations provide that only 12 of the
36 hours of required continuing
professional education during the new
enrollment cycle must consist of core
subject matter.
These regulations provide that the
required continuing professional
education hours must be earned after
January 1 of the year the enrolled
actuary becomes enrolled. Half of the
required hours for newly enrolled
actuaries must be comprised of core
subject matter.
The Joint Board received comments
both in favor of and against the
proposed two-tiered requirement that
18 hours of continuing professional
education be core subject matter for
enrolled actuaries during their first full
enrollment cycle but only 12 hours be
core subject matter for each subsequent

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enrollment cycle. In light of the
complexity and rapid changes in core
subject matter, the Joint Board feels that
some ongoing education in core subject
matter is always necessary. On the other
hand, the Joint Board wishes to
encourage enrolled actuaries at every
level of experience to satisfy a portion
of their continuing professional
education requirement through
participation in non-core programs that
are designed to enhance their
knowledge in matters related to the
performance of pension actuarial
services. The Joint Board feels that the
two-tiered approach is the best way to
achieve that result. Accordingly, these
regulations adopt the two-tiered
requirement as proposed.
For each full enrollment cycle
beginning after December 31, 2010,
these regulations require at least 2 of the
required core hours of continuing
professional education to relate to
ethical standards. Some commenters
suggested either not treating continuing
professional education on ethical
standards as core subject matter or
increasing the number of hours required
to consist of core subject matter by
2 hours to account for the ethics
requirement. The Joint Board feels that
fidelity to the high ethical standards of
practice is as essential for enrolled
actuaries as is knowledge of the
technical rules studied in other core
areas. Ethics have always been
considered to be core subject matter,
and an enrolled actuary who wishes to
increase the number of hours spent
studying the core technical rules may
always undertake more than the
minimum number of core hours.
Accordingly, the Joint Board feels that
including ethical standards as part of
the required hours of core subject matter
is appropriate.
In response to comments, these
regulations clarify that when core
subject matter hours are required
(including when an individual seeks to
return to active status from inactive
status), an individual must complete a
minimum of two hours of continuing
professional education credit relating to
ethical standards, regardless of the total
number of core hours required.
The regulations require an enrolled
actuary to retain certain records
evidencing completion of continuing
professional education for three years
after the end of the enrollment cycle for
which the enrolled actuary claims the
credit. To receive credit based on
participation in a qualifying program,
the regulations require the enrolled
actuary to retain the certificate of
completion or certificate of instruction,
as applicable. To receive credit for

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publications, these regulations require
the enrolled actuary to retain the name
of the publisher, the title and author of
the publication, a copy of the
publication, the date of publication, the
total credit hours earned, and the total
core and non-core credit hours earned.
To receive credit for service on a Joint
Board advisory committee, for
preparation of Joint Board examinations,
for passing examinations sponsored by
professional organizations or societies,
or for passing the Joint Board pension
examination, these regulations require
the enrolled actuary to retain sufficient
documentation to establish completion
of such hours.
2. Subject Matter of Continuing
Professional Education—Core and NonCore Subject Matter
All continuing professional education
must be in either core or non-core
subject matter. The Joint Board received
a number of comments requesting
expansion and clarification of the
content that would be classified as core
or non-core credit. These regulations
adopt the same definition of core and
non-core continuing professional
education material as proposed. The
Joint Board recognizes that more
specific rules proscribing the required
content could provide greater certainty
for qualifying sponsors and enrolled
actuaries regarding the designation of
credits as core and non-core. However,
given the frequent changes in pension
law, the impact of new court decisions,
and other changing factors that affect an
enrolled actuary’s practice, it is
important to keep the definition of the
content requirement somewhat flexible.
The Joint Board relies on the integrity
and judgment of the qualifying sponsors
to provide appropriate material and to
appropriately categorize the material as
core or non-core.
Similarly, a number of commenters
requested a more specific definition of
ethical standards for purposes of
meeting the ethics requirement of the
continuing education requirement.
Although the Joint Board has not
amended the regulation, it notes that
courses that include discussion of
actuarial codes of conduct, actuarial
responsibilities and any actions
discussed in section 901.20 of the
regulations would comply with this
requirement.
These regulations redefine core
subject matter as program content and
knowledge that is integral and necessary
to the satisfactory performance of
pension actuarial services and actuarial
certification under ERISA and the
Internal Revenue Code. Such core
subject matter includes the

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characteristics of actuarial cost methods
under ERISA, actuarial assumptions,
minimum funding standards, titles I, II,
and IV of ERISA, requirements with
respect to the valuation of plan assets,
requirements for qualification of
pension plans, maximum deductible
contributions, tax treatment of
distributions from qualified pension
plans, excise taxes related to the
funding of qualified pension plans and
standards of performance (including
ethical standards) for actuarial services.
These regulations further specify that
core subject matter includes all
materials included on the syllabi of any
of the pension actuarial examinations
offered by the Joint Board during the
current enrollment cycle and the
enrollment cycle immediately preceding
the current enrollment cycle.
These regulations retain the definition
of non-core subject matter as program
content designed to enhance the
knowledge of an enrolled actuary in
matters related to the performance of
pension actuarial services. These
regulations provide that examples of
non-core subject matter include
economics, computer programming,
pension accounting, investment and
finance, risk theory, communication
skills, and business and general tax law.
3. Qualifying Program Requirement
These regulations do not change the
requirement that a program used to earn
continuing professional education credit
must be a qualifying program. These
regulations modify the definition of
qualifying program to be a course of
learning that—(A) Is conducted by a
qualifying sponsor who identifies the
program as a qualifying program; (B) is
developed by individual(s) qualified in
the subject matter; (C) covers current
subject matter; (D) includes written
outlines or textbooks; (E) is taught by
instructors, discussion leaders, and
speakers qualified with respect to the
course content; (F) includes means for
evaluation by the Joint Board of
technical content and presentation; (G)
provides a certificate of completion to
those who have successfully completed
the program; and (H) provides a
certificate of instruction to those who
have served as instructors, discussion
leaders, or speakers.
These regulations provide that
qualifying sponsors are sponsors
recognized as such by the Executive
Director and whose programs offer
opportunities for continuing
professional education in subject matter
within the scope of the continuing
professional education requirement. In
response to comments, these regulations
have been changed so that they do not

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prohibit a sole proprietor from being a
qualifying sponsor. These regulations
provide that those seeking recognition
as a qualifying sponsor must file a
request with the Executive Director and
must provide all information deemed
necessary for approval by the Executive
Director, including information to
establish that all programs identified as
qualifying programs by the qualifying
sponsor will satisfy the requirements for
qualifying programs. These regulations
provide that recognition as a qualifying
sponsor by the Executive Director shall
be effective when approved unless the
Executive Director provides that it shall
be effective on a different date, and shall
terminate at the end of the sponsor
enrollment cycle. The sponsor
enrollment cycles are three-year periods
that begin one-year later than the
enrollment cycles, starting with the
sponsor enrollment cycle beginning on
January 1, 2012. For qualifying sponsors
approved on or after January 1, 2008,
and before January 1, 2012, the
applicable sponsor enrollment cycle
will end December 31, 2011.
These regulations provide that a
program’s qualifying sponsor shall
furnish each individual who
successfully completed the qualifying
program with a certificate listing the
name of the participant, the name of the
qualifying sponsor, the title, location,
and speaker(s) of each session, the
date(s) of participation, the total credit
hours earned, how many of those hours
consisted of core and non-core subject
matter, how many of those hours relate
to ethics, and how many of the hours
were earned for a formal program with
respect to the participant. In response to
comments, these regulations clarify that
it is only the qualifying sponsor of a
program that may issue a certificate of
participation.
These regulations provide that
qualifying sponsors shall provide each
instructor, discussion leader, or speaker
with a certificate of instruction that lists
the name of the instructor, discussion
leader, or speaker, the name of the
qualifying sponsor, the title and location
of each session at which the individual
was an instructor, discussion leader, or
speaker, the date(s) of the program, the
total credit hours earned, how many of
those hours consisted of core and noncore subject matter, how many of those
hours relate to ethics, and whether the
program is a formal program with
respect to the instructor.
The proposed regulations would have
defined separate types of qualifying
programs for formal programs,
correspondence and individual study
programs, and teleconferencing
programs. These regulations do not

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segregate qualifying programs into these
types. Instead, these regulations provide
that certain qualifying programs qualify
as formal programs. Each type of
program that would have been
separately defined under the proposed
regulations may still satisfy the
requirements of a qualifying program.
In response to comments, the Joint
Board notes that the qualifying sponsor
must take reasonable steps to verify
participation. The nature of the program
will affect the means by which the
qualifying sponsor verifies
participation. Under this approach, a
qualifying program that is either a
teleconference or a program attended in
person may be a formal program but the
manner in which the qualifying sponsor
verifies participation will be different
depending on the manner of
participation. In contrast, a
correspondence or individual study
program would never be a formal
program but could nonetheless be a
qualifying program if the qualifying
sponsor verifies participation (for
example, with a written examination).
In response to comments, these
regulations clarify that a qualifying
sponsor must maintain records to verify
that each program it sponsors is a
qualifying program, including the
certificates of completion, certificates of
instruction, and outlines and course
material. In the case of programs with
more than one session, the qualifying
sponsor must keep records to verify
which session(s) each participant
completed. These regulations clarify
that all of these records are required to
be maintained for six years after the end
of the sponsor enrollment cycle in
which the program was held.
Several commenters asked for
clarification on the ability to use
emerging technologies for record
retention and transmission. The
regulations do not specify the format in
which records must be maintained or
provided but merely require that copies
be provided and produced upon
request. Accordingly, records may be
maintained electronically so long as a
copy can be produced upon request.
4. Formal Programs
These regulations require at least onethird of the required hours to consist of
participation in a formal program. In
response to comments on the proposed
regulations, these regulations expand
the definition of a formal program to
take into account modern technologies
that permit participation and interaction
among participants who are in different
locations.
Under these regulations, whether a
program qualifies as a formal program is

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determined on a participant-byparticipant basis. These regulations
provide that a qualifying program
qualifies as a formal program with
respect to a participant only if the
participant simultaneously participates
in the program in the same physical
location with at least two other
participants engaged in substantive
pension service. The participants with
respect to whom the program is a formal
program must also have the opportunity
to interact with another individual
qualified with respect to the course
content who serves as an instructor,
whether or not the instructor is in the
same physical location as the
participants. Groups of three or more
participants who are in the same
physical location may participate in a
formal program in person, via the
Internet, videoconferencing, or
teleconferencing. If the qualifying
program is pre-recorded, to qualify as a
formal program there must be a
qualified individual who serves as the
instructor and is available to answer
questions immediately following the
pre-recorded program.
Under these regulations, a qualifying
program is a formal program with
respect to the instructor only if the
instructor is in the physical presence of
at least three other individuals engaged
in substantive pension service.
5. Alternate Ways of Earning Continuing
Professional Education Credit
These regulations provide six ways to
satisfy the continuing professional
education requirement other than
through participation in a qualifying
program. First, up to half of the required
hours may be satisfied by serving as an
instructor, discussion leader, or speaker
at a qualifying program. For this
purpose the instructor, discussion
leader, or speaker is credited with 4
hours of continuing professional
education credit for each 50 minutes
completed during a qualifying program.
In response to a comment, these
regulations clarify that if the program is
a formal program with respect to the
instructor, only the time spent during
the actual program is counted toward
satisfaction of the formal program
requirement. The nature of the subject
matter will determine whether the
credit hours consist of core or non-core
subject matter. These regulations
expressly provide that panelists,
moderators, and others who are not
required to prepare substantive subject
matter for their portion of the program
are not entitled to credit as an
instructor, discussion leader, or speaker,
but they may qualify for participation in
the program.

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Second, up to 25 percent of the
required hours may be awarded to the
author, co-author, or a person listed as
a major contributor for each hour spent
on the creation of peer-reviewed
material for publication or distribution
on matters directly related to core or
non-core subject matter. To qualify, the
material must be available on reasonable
terms for acquisition and use by all
enrolled actuaries.
If the material is re-published or redistributed, credit will be awarded only
for time spent revising a substantial
portion of the material; for example, to
reflect changes in law or practices
relative to the performance of pension
actuarial services.
Third, these regulations permit the
Joint Board to award continuing
professional education credit for service
on (any of) its advisory committee(s), to
the extent that the Joint Board considers
awarding such credit is warranted by
the service rendered. This provision
recognizes the fact that the work done
by the members of the advisory
committee involves detailed review of
materials that constitute core subject
matter.
Fourth, these regulations permit the
Joint Board to award education credit
for participation in drafting questions
for use on Joint Board examinations or
in pretesting its examinations, to the
extent that the Joint Board considers
awarding such credit appropriate. These
regulations limit the education credit for
preparation of Joint Board examinations
to 50 percent of the continuing
professional education requirement for
the applicable enrollment cycle.
One commenter suggested that the
regulations should specify the number
of continuing professional education
credits that may be granted for service
on an Advisory Committee to the Joint
Board and other committees involved in
the preparation of enrollment
examinations, and to eliminate the 50
percent limit on continuing professional
education requirements that can be
satisfied by service on an examination
writing committee. The regulations
retain the Joint Board’s authority to
determine how many credits are granted
for service rendered.
In the Board’s experience, most
actuaries who serve on an examination
writing committee tend to work on only
one of the examinations; the Board
believes that the scope of the material
covered on a given examination is not
broad enough for service on a writing
committee to count toward more than
50% of the continuing professional
education requirements for a given
enrollment cycle. Therefore, although
the Board appreciatively acknowledges

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the substantial time and effort expended
by members of the writing committees,
the final regulations retain the 50%
limit.
The commenter also suggested that
service on an Advisory Committee to
the Joint Board throughout an entire
enrollment cycle fulfill all the
continuing professional education
requirements for that cycle, including
the requirement to earn credits related
to ethical standards. However, the Board
does not believe that the exam syllabus
or other work typically done by an
Advisory Committee includes enough
material directly related to ethical
standards to fulfill the requirement for
this type of credit. Therefore, the Board
does not anticipate that credits related
to ethical standards would be granted
on the basis of service on an Advisory
Committee.
Fifth, these regulations provide that
individuals may earn continuing
professional education credit for
achieving a passing grade on proctored
examinations sponsored by a
professional organization or society
recognized by the Joint Board. Separate
provisions, described in the next
paragraph, apply to the Joint Board’s
examinations. These regulations further
provide that such credit is limited to the
number of hours scheduled for the
examination that are attributable to
content that qualifies as either core or
non-core subject matter and that,
regardless of the nature of the content,
none of the credit counts toward the
core credit requirement. All of an
enrolled actuary’s non-core credit
requirement may be satisfied with this
type of credit.
Sixth, these regulations provide that
enrolled actuaries who are enrolled
prior to the beginning of an enrollment
cycle may satisfy the entire continuing
professional education requirement for
the enrollment cycle by both
(1) achieving a passing score on the
Joint Board pension examination
administered during the enrollment
cycle and (2) completing a minimum of
12 hours of continuing professional
education through participation in
formal programs during the enrollment
cycle.
6. Waivers
These regulations permit the
Executive Director to waive all or part
of an enrolled actuary’s continuing
professional education requirement. An
enrolled actuary seeking such a waiver
must submit a request for a waiver to
the Executive Director. This request
must contain evidence sufficient to
demonstrate that the enrolled actuary
made every effort throughout the

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enrollment cycle to participate in one or
more qualifying programs that would
have satisfied the continuing
professional education requirements.
The enrolled actuary is required to
submit supporting documentation with
the waiver application as well as any
additional documentation or
explanation deemed necessary by the
Executive Director. The proposed
regulations would have imposed a
deadline on the waiver application.
Instead, these regulations provide that
the enrolled actuary seeking to rely on
a waiver must receive the waiver from
the Executive Director before filing an
application for renewal of enrollment.
IV. Inactive Enrolled Actuaries
These regulations provide that the
Executive Director shall maintain a
roster of individuals who are in inactive
status, in addition to rosters of
individuals who are duly enrolled and
those whose enrollment has been
suspended or terminated. These
regulations also give the Executive
Director explicit permission to publish
any or all of the rosters, including
display on the Joint Board’s Web site, to
the extent permitted by law.
These regulations extend the period of
time that an individual may remain on
the roster of inactive enrolled actuaries
from three years to up to three
enrollment cycles. Under these
regulations, a person who is on the
roster of inactive enrolled actuaries for
three enrollment cycles without
returning to active status must satisfy
the requirements for initial enrollment
to become an active enrolled actuary.
For this purpose, these regulations
provide a transition rule that treats
enrolled actuaries who are inactive or
retired as of April 1, 2010 as if they
were placed on the roster of inactive
enrolled actuaries on that date.
To remain on the roster of active
enrolled actuaries, an enrolled actuary
must submit a timely application for
renewal showing satisfaction of the
requirements for reenrollment,
including completion of the required
continuing professional education hours
within the appropriate time frame.
The Executive Director will
automatically move enrolled actuaries
who do not submit a timely application
for reenrollment and enrolled actuaries
who submit an application that on its
face does not show information
sufficient to satisfy the requirements for
renewal (for example, an application
that does not show sufficient continuing
professional education credits). Such
enrolled actuaries will be placed on the
roster of inactive enrolled actuaries as of
April 1 following the March 1 due date

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for the application. Enrolled actuaries
who submit an application that on its
face does not show information
sufficient to satisfy the requirements for
renewal will not be entitled to a refund
of the application fee. Enrolled actuaries
who submit an application that on its
face does not show information
sufficient to satisfy the requirements for
renewal will be considered inactive as
of the April 1 immediately following the
March 1 due date for the application
even if the Executive Director does not
become aware of the insufficiency of the
application until after April 1.
In addition, the Executive Director
may audit renewal applications to verify
the information submitted. If the
Executive Director determines that the
information on the application is
inaccurate, the Executive Director will
move the enrolled actuary to the roster
of inactive enrolled actuaries only after
notifying the enrolled actuary of the
Executive Director’s intent to do so and
giving the enrolled actuary 60 days to
respond. The Executive Director will
consider any written response in
making a final determination as to
eligibility for renewal of enrollment.
The Executive Director will notify the
enrolled actuary by mail of the final
determination as to whether or not to
place the enrolled actuary on the
inactive roster at that time. If the
Executive Director makes a final
determination to place an individual on
the roster of inactive enrolled actuaries,
the individual may seek review of the
determination from the Joint Board by
submitting a request to the Joint Board
within 30 days of the notice of final
determination.
These regulations provide that while
an individual remains on the roster of
inactive enrolled actuaries, such person
may not indicate to others that he or she
is an enrolled actuary and is not eligible
to perform actuarial services as an
enrolled actuary under ERISA or the
Internal Revenue Code. These
regulations provide that an individual
still on the roster of inactive enrolled
actuaries who wishes to return to active
status may file an application for
renewal of enrollment, but the
requirements for reenrollment are
different depending on whether the
applicant is in the first, second, or third
enrollment cycle on the roster of
inactive enrolled actuaries.
These regulations provide that
individuals who apply for renewal of
enrollment during their first enrollment
cycle on the inactive roster must
complete 36 hours of continuing
professional education between the
beginning of the prior enrollment cycle

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and the date of the application for
renewal.
These regulations provide that
individuals who apply for renewal of
enrollment during their second
enrollment cycle on the inactive roster
must complete 48 hours of continuing
professional education credit plus
demonstrate 18 months of certified
responsible pension actuarial
experience. These regulations provide
that the continuing professional
education credit must have been earned
since the beginning of the applicant’s
first enrollment cycle on the inactive
roster. The qualifying responsible
pension actuarial experience must have
occurred after the beginning of the
applicant’s first enrollment cycle on the
inactive list.
These regulations provide that
individuals who apply for renewal of
enrollment during their third
enrollment cycle on the inactive roster
must complete 60 hours of continuing
professional education credit plus
demonstrate 18 months of certified
responsible pension actuarial
experience. For this purpose, these
regulations provide that the continuing
professional education credit must have
been earned since the beginning of the
applicant’s second enrollment cycle and
the qualifying actuarial experience must
have occurred after the beginning of the
applicant’s second enrollment cycle on
the inactive list.
Regardless of when the inactive
enrolled actuary applies for renewal,
these regulations provide that any
continuing professional education credit
used to qualify for reenrollment may not
also be used to satisfy the continuing
professional education requirement
during the applicant’s first enrollment
cycle back on the active roster.
V. Standards of Performance
These regulations also expand upon
the standards of performance of
actuarial services. These regulations add
a requirement that an enrolled actuary
shall perform actuarial services only in
accordance with all of the duties and
requirements for such persons under
applicable law and consistent with
relevant generally accepted standards
for professional responsibility and
ethics.
Several comments were received with
respect to the standards of practice
provisions that were modeled on the
obligations set forth in Circular 230 of
all persons practicing before the IRS.
The Joint Board believes that the rules
in Circular 230 pertaining to due
diligence, solicitations, prompt
disposition of pending matters, and the
return of client records are equally

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pertinent to practice before the PBGC
and DOL, as well as the IRS. These
provisions have been retained
unchanged from the proposal, except
that with respect to the return of client
records. With respect to the return of
client records, a commenter asked that
the provision be clarified to provide the
ability to retain records that implicate
intellectual property rights. The Board
believes that the duty to return or make
available records to the client should
not be made narrower than the scope of
the provision in Circular 230.
Nonetheless, to conform more
specifically to the concept of Circular
230 and the purpose of incorporating
the provisions into these regulations,
the provision regarding ‘‘Records of the
client’’ for this purpose has been
modified to provide only for the return
of documents necessary to comply with
legal obligations under ERISA and the
Internal Revenue Code.
These final regulations modify the
rules regarding conflicts of interest. The
Joint Board received several comments
on the proposed rule to require that
disclosure of conflicts of interest be
made in writing to all affected parties
and that the affected parties agree in
writing to the enrolled actuary
performing the services. After
consideration of these comments, the
Joint Board has determined that it will
adopt rules that are similar to the
conflict of interest rules that apply to
those practicing before the Internal
Revenue Service. See Treasury
Department Circular No. 230, 31 CFR
10.29. Accordingly, the regulations
provide that, unless an exception
applies, an enrolled actuary shall not
perform actuarial services for a client if
the representation involves a conflict of
interest. A conflict of interest exists if
either (1) the representation of one
client will be directly adverse to another
client; or (2) there is a significant risk
that the representation of one or more
clients will be materially limited by the
enrolled actuary’s responsibilities to
another client, a former client, or by a
personal interest of the enrolled actuary.
Notwithstanding the existence of a
conflict of interest, the enrolled actuary
may represent a client if (1) the enrolled
actuary reasonably believes that the
enrolled actuary will be able to provide
competent and diligent representation
to each affected client, (2) the
representation is not prohibited by law,
and (3) each affected client waives the
conflict of interest and gives informed
consent, at the time the existence of the
conflict of interest is known by the
enrolled actuary.
Nothing in these final regulations is
intended to alter the rules for practice

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before the Internal Revenue Service
under Treasury Department Circular No.
230.
The proposed regulations would have
imposed a requirement that, upon
learning of another enrolled actuary’s
material violation of the standards of
performance of actuarial services, an
enrolled actuary report the violation to
the Executive Director. The Joint Board
received many comments in response to
this proposal. Several commenters
suggested the elimination of the
proposed reporting requirement. In the
alternative, commenters asked that the
requirement be significantly modified.
Commenters were concerned that the
reporting requirement would discourage
cooperation and sharing of information
among enrolled actuaries and that it
would conflict with other rules that
require enrolled actuaries not to
disclose confidential or privileged
information. Commenters also suggested
that an enrolled actuary should not be
required to report violations that are
resolved through discussion with the
other enrolled actuary. Finally,
commenters asked for a clarification of
the term material violation.
In light of the comments received, the
Joint Board decided not to include the
proposed reporting requirement as part
of the standards of performance for
enrolled actuaries. Without amendment,
the regulations already include a rule
that if an officer or employee of the
Department of Treasury, the Department
of Labor, the Pension Benefit Guaranty
Corporation, or a member of the Joint
Board has reason to believe that an
enrolled actuary has violated any
provision of the regulations, or if such
person receives information to that
effect, he or she may inform the
Executive Director. Without
amendment, the regulations already
provide that others may make such a
report to the Executive Director, an
officer or employee of the Department of
Treasury, the Department of Labor, the
Pension Benefit Guaranty Corporation,
or a member of the Joint Board. These
regulations amend that provision only
to provide that the optional report
should be made directly to the
Executive Director. Self-policing is an
important part of maintaining the high
standards of the profession, and the
Joint Board encourages enrolled
actuaries to report violations of the
regulations to the Executive Director.
However, in light of the concerns raised
by commenters, the Joint Board decided
not to change the existing rule except to
provide that any report should be made
directly only to the Executive Director.
In response to comments, these
regulations clarify that the requirement

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for an enrolled actuary to ensure that
the actuarial assumptions are reasonable
individually and in combination, and
the actuarial cost method and the
actuarial method of valuation of assets
are appropriate applies unless the
actuarial assumptions or methods are
mandated by law.
Special Analyses
Executive Orders 13563 and 12866
direct agencies to assess all costs and
benefits of available regulatory
alternatives and, if regulation is
necessary, to select regulatory
approaches that maximize net benefits
(including potential economic,
environmental, public health and safety
effects, distributive impacts, and
equity). Executive Order 13563
emphasizes the importance of
quantifying both costs and benefits, of
reducing costs, of harmonizing rules,
and of promoting flexibility. This rule
has been designated a ‘‘significant
regulatory action’’ although not
economically significant, under section
3(f) of Executive Order 12866.
Accordingly, the rule has been reviewed
by the Office of Management and
Budget.
It also has been determined that
section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations. It is
hereby certified that the collection of
information imposed by these
regulations will not have a significant
economic impact on a substantial
number of small entities. There are
presently only about 4000 enrolled
actuaries and the changes made by the
final regulations will reduce the overall
collection of information burden by
removing the requirement for
participants in continuing education
courses to keep course materials.
Qualified sponsors of continuing
education courses, a few of which are
small entities, have a paperwork burden
under these regulations that is
substantially the same as the preexisting burden. Therefore, the
economic impact of the collection of
information requirement will not be
significant and the number of small
entities affected by the collection of
information requirement will not be
substantial. Accordingly, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does
not apply. The notice of proposed
rulemaking was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Drafting Information
The principal author of these
regulations is Michael P. Brewer, IRS

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Office of Division Counsel/Associate
Chief Counsel (Tax Exempt and
Government Entities). However, other
personnel from the Joint Board and the
IRS participated in their development.
List of Subjects in 20 CFR Part 901
Regulations governing the
performance of actuarial services under
the Employee Retirement Income
Security Act of 1974.
Adoption of Amendments to the
Regulations
Accordingly, 20 CFR part 901 is
amended as follows:
PART 901—REGULATIONS
GOVERNING THE PERFORMANCE OF
ACTUARIAL SERVICES UNDER THE
EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974
Paragraph 1. The authority citation
for part 901 continues to read in part as
follows:

■

Authority: These rules are issued under
authority of 88 Stat. 1002; 29 U.S.C. 1241,
1242. See also 5 U.S.C. 301; 31 U.S.C. 330;
and 31 U.S.C. 321.
§ 901.0

[Amended]

Par. 2. Section 901.0 is amended by
removing the phrase ‘‘subpart D of this
part is reserved and will set forth’’ and
adding in its place the phrase ‘‘subpart
D sets forth’’ in the second sentence.

■

Par. 3. Section 901.1 is amended by:
A. Amending paragraph (g) by
removing the phrase ‘‘approved by the
Joint Board (or its designee) to perform’’
and adding in its place the phrase
‘‘approved by the Joint Board for the
Enrollment of Actuaries (the Joint
Board), or its designee, to perform’’.
■ B. Adding new paragraphs (i), (j) and
(k) to read as follows:
■
■

§ 901.1

Definitions.

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*

*
*
*
*
(i) Certified responsible actuarial
experience means responsible actuarial
experience of an individual that has
been certified in writing by the
individual’s supervisor.
(j) Certified responsible pension
actuarial experience means responsible
pension actuarial experience of an
individual that has been certified in
writing by the individual’s supervisor if
the supervisor is an enrolled actuary. If
the individual’s supervisor is not an
enrolled actuary, the pension actuarial
experience must be certified in writing
by both the supervisor and an enrolled
actuary with knowledge of the
individual’s pension actuarial
experience.

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(k) Enrollment cycle means the threeyear period from January 1, 2011, to
December 31, 2013, and every three-year
period thereafter.
§ 901.10

[Amended]

Par. 4. Section 901.10 is amended by:
A. Amending paragraph (a) by
removing the phrase ‘‘shall agree to
comply with the regulations of the Joint
Board’’ and adding in its place the
phrase ‘‘shall agree to comply with these
regulations and any other guidance as
required by the Joint Board’’.
■ B. Adding a second sentence to
paragraph (a) to read ‘‘A reasonable nonrefundable fee may be charged for each
application for enrollment filed.’’
■
■

Par. 5. Section 901.11 is amended by:
A. Revising the first sentence of
paragraph (a).
■ B. Revising paragraphs (c) and (d).
■ C. Revising paragraphs (e)
introductory text, (e)(1) and (e)(2)(i).
■ D. Revising the last sentence of
paragraph (e)(2)(ii).
■ E. Adding new paragraphs (e)(2)(iv),
(v), and (vi).
■ F. Removing paragraph (e)(3).
■ G. Revising paragraphs (f)(1) and
(f)(1)(i).
■ H. Revising the second sentence of
paragraph (f)(1)(ii), and paragraph
(f)(1)(iv).
■ I. Revising paragraph (f)(2).
■ J. Adding paragraph (f)(3).
■ K. Revising paragraph (g).
■ L. Removing the last two sentences of
paragraph (h)(2).
■ M. Removing paragraph (l).
■ N. Redesignating paragraphs (i), (j),
and (k) as paragraphs (j), (k), and (l),
respectively.
■ O. Adding and reserving new
paragraph (i).
■ P. Revising newly redesignated
paragraphs (j) and (k).
■ Q. Revising the first sentences of
newly redesignated paragraphs (l)(1)
and (l)(2), and the second sentence of
newly redesignated paragraph (l)(3).
■ R. Revising newly redesignated
paragraphs (l)(4), (l)(5), (l)(6), and (l)(7),
and the first sentence of newly
redesignated paragraph (l)(9).
■ S. Revising paragraph (n).
■ T. Adding new paragraphs (o) and (p).
The revisions and additions read as
follows:
■
■

§ 901.11

Enrollment procedures.

(a) Enrollment. The Joint Board shall
enroll each applicant it determines has
met the requirements of these
regulations, and any other guidance as
required by the Joint Board, and shall so
notify the applicant. * * *
*
*
*
*
*

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(c) Rosters—(1) Maintenance of
rosters. The Executive Director shall
maintain rosters of—
(i) All actuaries who are duly enrolled
under this part;
(ii) All individuals whose enrollment
has been suspended or terminated; and
(iii) All individuals who are in
inactive status.
(2) Publication of Rosters. The
Executive Director may publish any or
all of the rosters, including display on
the Joint Board’s Web site, to the extent
permitted by law.
(d) Renewal of enrollment. To
maintain active enrollment to perform
actuarial services under ERISA, each
enrolled actuary is required to have his/
her enrollment renewed as set forth
herein.
(1) Each enrolled actuary must file an
application for renewal of enrollment on
the prescribed form no earlier than
October 1, 2010, and no later than
March 1, 2011, and no earlier than
October 1 and no later than March 1 of
every third year thereafter. If March 1 is
a Saturday, Sunday, or holiday, the due
date shall be the next day that is not a
Saturday, Sunday, or holiday.
(2) The effective date of renewal of
enrollment for an individual who files
a complete renewal application within
the time period described in paragraph
(d)(1) of this section is the April 1
immediately following the date of
application. The effective date of
renewal of enrollment for an individual
who files a complete renewal
application after the due date described
in paragraph (d)(1) of this section is the
later of the April 1 immediately
following the due date of application
and the date of the notice of renewal.
(3) Forms required for renewal may be
obtained from the Executive Director.
(4) A reasonable non-refundable fee
may be charged for each application for
renewal of enrollment filed.
(e) Condition for renewal: Continuing
professional education. To qualify for
renewal of enrollment, an enrolled
actuary must certify, on the form
prescribed by the Executive Director,
that he/she has completed the
applicable minimum number of hours of
continuing professional education credit
required by this paragraph (e) and
satisfied the recordkeeping
requirements of paragraph (j) of this
section.
(1) Transition rule for renewal of
enrollment effective April 1, 2011. (i) A
minimum of 36 hours of continuing
professional education credit must be
completed between January 1, 2008 and
December 31, 2010. Of the 36 hours, at
least 18 must consist of core subject

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matter; the remainder may be non-core
subject matter.
(ii) An individual who received initial
enrollment in 2008 must complete 24
hours of continuing professional
education by December 31, 2010. An
individual who received initial
enrollment in 2009 must complete 12
hours of continuing professional
education by December 31, 2010. In
either case, at least one-half of the
applicable hours must consist of core
subject matter; the remainder may
consist of non-core subject matter. For
purposes of this paragraph (e)(1)(ii),
credit will be awarded for continuing
professional education completed after
January 1 of the year in which initial
enrollment was received.
(iii) An individual who receives
initial enrollment during 2010 is exempt
from the continuing professional
education requirements during 2010,
but must file a timely application for
renewal during the time period
described in paragraph (d)(1) of this
section.
(2) For renewal of enrollment effective
April 1, 2014, and every third year
thereafter. (i) A minimum of 36 hours of
continuing professional education credit
must be completed between January 1,
2011 and December 31, 2013, and
between January 1 and December 31 for
each three-year period subsequent
thereto.
(ii) * * * For purposes of this
paragraph (e)(2)(ii), credit will be
awarded for continuing professional
education completed after January 1 of
the year in which initial enrollment was
received.
*
*
*
*
*
(iv) For an individual who was
initially enrolled before January 1, 2008
(and who has therefore completed at
least one full enrollment cycle as of
January 1, 2011), at least 12 hours of the
36 hours of continuing professional
education required for each enrollment
cycle must consist of core subject
matter; the remainder may consist of
non-core subject matter.
(v) For an individual who was
initially enrolled on or after January 1,
2008, at least 18 hours of his or her 36
hours of continuing professional
education required for the first full
enrollment cycle must consist of core
subject matter. Thereafter, for such
individuals, for each subsequent
enrollment cycle at least 12 hours of the
36 hours must consist of core subject
matter. In each instance, the remainder
may consist of non-core subject matter.
(vi) When core subject matter hours
are required (including when an
individual seeks to return to active

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status from inactive status), an
individual must complete a minimum of
two hours of continuing professional
education credit relating to ethical
standards, regardless of the total number
of core hours required.
(f) Qualifying continuing professional
education—(1) In general. To qualify for
continuing professional education credit
an enrolled actuary must complete his/
her hours of continuing professional
education credit under a qualifying
program, within the meaning of
paragraph (f)(2) of this section,
consisting of core and/or non-core
subject matter. In addition, a portion of
the continuing professional education
credit may be earned under the
provisions of paragraph (g) of this
section. In any event, no less than 1⁄3 of
the total hours of continuing
professional education credit required
for an enrollment cycle must be
obtained by participation in a formal
program or programs, within the
meaning of paragraph (f)(2)(ii)(A) of this
section.
(i) Core subject matter is program
content and knowledge that is integral
and necessary to the satisfactory
performance of pension actuarial
services and actuarial certification
under ERISA and the Internal Revenue
Code. Such core subject matter includes
the characteristics of actuarial cost
methods under ERISA, actuarial
assumptions, minimum funding
standards, titles I, II, and IV of ERISA,
requirements with respect to the
valuation of plan assets, requirements
for qualification of pension plans,
maximum deductible contributions, tax
treatment of distributions from qualified
pension plans, excise taxes related to
the funding of qualified pension plans
and standards of performance
(including ethical standards) for
actuarial services. Core subject matter
includes all materials included on the
syllabi of any of the pension actuarial
examinations offered by the Joint Board
during the current enrollment cycle and
the enrollment cycle immediately
preceding the current enrollment cycle.
(ii) * * * Examples include
economics, computer programming,
pension accounting, investment and
finance, risk theory, communication
skills, and business and general tax law.
*
*
*
*
*
(iv) The same course of study cannot
be used more than once within a given
36-month period to satisfy the
continuing professional education
requirements of these regulations. A
program or session bearing the same or
a similar title to a previous one may be
used to satisfy the requirements of these

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regulations if the major content of the
program or session differs substantively
from the previous one.
(2) Qualifying Program—(i) In general.
A qualifying program is a course of
learning that—
(A) Is conducted by a qualifying
sponsor, within the meaning of
paragraph (f)(3) of this section, who
identifies the program as a qualifying
program;
(B) Is developed by individual(s)
qualified in the subject matter;
(C) Covers current subject matter;
(D) Includes written outlines or
textbooks;
(E) Is taught by instructors, discussion
leaders, and speakers qualified with
respect to the course content;
(F) Includes means for evaluation by
the Joint Board of technical content and
presentation;
(G) Provides a certificate of
completion, within the meaning of
paragraph (f)(3)(iv) of this section, to
each person who successfully
completed the program; and
(H) Provides a certificate of
instruction, within the meaning of
paragraph (f)(3)(v) of this section, to
each person who served an instructor,
discussion leader, or speaker.
(ii) Formal programs—(A)
Participants. Formal programs are
programs that meet all of the
requirements of this paragraph (f)(2)(ii)
and paragraph (f)(2)(i) of this section.
Whether a program qualifies as a formal
program is determined on a participantby-participant basis. A qualifying
program qualifies as a formal program
with respect to a participant if the
participant simultaneously participates
in the program in the same physical
location with at least two other
participants engaged in substantive
pension service, and the participants
have the opportunity to interact with
another individual qualified with
respect to the course content who serves
as an instructor, whether or not the
instructor is in the same physical
location. Groups of three or more
participants who are in the same
physical location may participate in a
formal program in person or via the
Internet, videoconferencing, or
teleconferencing. If the qualifying
program is pre-recorded, to qualify as a
formal program, there must be a
qualified individual who serves as the
instructor and is available to answer
questions immediately following the
pre-recorded program.
(B) Instructor. A qualifying program is
a formal program with respect to the
instructor only if the program is a
formal program under paragraph
(f)(2)(ii)(A) of this section with respect

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to at least three participants and the
instructor is in the physical presence of
at least three other individuals engaged
in substantive pension service.
(3) Qualifying sponsors—(i) In
general. Qualifying sponsors are
organizations recognized by the
Executive Director whose programs offer
opportunities for continuing
professional education in subject matter
within the scope of this section.
(ii) Recognition by the Executive
Director. An organization requesting
qualifying sponsor status shall file a
sponsor agreement request with the
Executive Director and furnish
information in support of such request
as deemed necessary for approval by the
Executive Director. Such information
shall include sufficient information to
establish that all programs designated as
qualifying programs offered by the
qualifying sponsor will satisfy the
requirements of paragraph (f)(2) of this
section. Recognition as a qualifying
sponsor by the Executive Director shall
be effective when approved, unless the
Executive Director provides that it shall
be effective on a different date, and shall
terminate at the end of the sponsor
enrollment cycle. The Executive
Director may publish the names of such
sponsors on a periodic basis.
(iii) Sponsor enrollment cycle—(A)
Transition sponsor enrollment cycle.
The transition sponsor enrollment cycle
is the period beginning on January 1,
2008 and ending December 31, 2011.
(B) Subsequent sponsor enrollment
cycles. After the transition sponsor
enrollment cycle, the sponsor
enrollment cycle means the three-year
period from January 1, 2012, to
December 31, 2014, and every three-year
period thereafter.
(iv) Certificates of completion. Upon
verification of successful completion of
a qualifying program, the program’s
qualifying sponsor shall furnish each
individual who successfully completed
the qualifying program with a certificate
listing the following information:
(A) The name of the participant.
(B) The name of the qualifying
sponsor.
(C) The title, location, and speaker(s)
of each session attended.
(D) The dates of the program.
(E) The total credit hours earned, the
total core and non-core credit hours
earned, and how many of those hours
relate to ethics.
(F) Whether or not the program is a
formal program with respect to the
participant.
(v) Certificates of instruction. The
program’s qualifying sponsor shall
furnish to each instructor, discussion

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leader, or speaker, a certificate listing
the following information:
(A) The name of the instructor,
discussion leader, or speaker.
(B) The name of the qualifying
sponsor.
(C) The title and location of the
program.
(D) The dates of the program.
(E) The total credit hours earned and
the total core and non-core credit hours
earned for the program, and how many
of those hours relate to ethics.
(F) Whether or not the program is a
formal program with respect to the
instructor.
(g) Alternative means for completion
of credit hours—(1) In general. In
addition to credit hours completed
under paragraph (f) of this section, an
enrolled actuary may be awarded
continuing professional education credit
under the provisions of this paragraph
(g).
(2) Serving as an instructor,
discussion leader or speaker. (i) Four
credit hours (that is, 200 minutes) of
continuing professional education credit
will be awarded for each 50 minutes
completed as an instructor, discussion
leader, or speaker at a qualifying
program which meets the continuing
professional education requirements of
paragraph (f) of this section. If the
qualifying program is a formal program
with respect to the instructor, only the
time spent during the actual program is
counted toward satisfaction of the
formal program requirement.
(ii) The credit for instruction and
preparation may not exceed 50 percent
of the continuing professional education
requirement for an enrollment cycle.
(iii) Presentation of the same material
as an instructor, discussion leader, or
speaker more than one time in any 36month period will not qualify for
continuing professional education
credit. A program will not be considered
to consist of the same material if a
substantial portion of the content has
been revised to reflect changes in the
law or practices relative to the
performance of pension actuarial
service.
(iv) Credit as an instructor, discussion
leader, or speaker will not be awarded
to panelists, moderators, or others who
are not required to prepare substantive
subject matter for their portion of the
program. However, such individuals
may be awarded credit for attendance,
provided the other provisions of this
section are met.
(v) The nature of the subject matter
will determine if credit will be of a core
or non-core nature.
(3) Credit for publications. (i)
Continuing professional education

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17771

credit will be awarded for the creation
of peer-reviewed materials for
publication or distribution with respect
to matters directly related to the
continuing professional education
requirements of this section. Credit will
be awarded to the author, co-author, or
a person listed as a major contributor.
(ii) One hour of credit will be allowed
for each hour of preparation time of the
material. It will be the responsibility of
the person claiming the credit to
maintain records to verify preparation
time.
(iii) Publication or distribution may
utilize any available technology for the
dissemination of written, visual or
auditory materials.
(iv) The materials must be available
on reasonable terms for acquisition and
use by all enrolled actuaries.
(v) The credit for the creation of
materials may not exceed 25 percent of
the continuing professional education
requirement of any enrollment cycle.
(vi) The nature of the subject matter
will determine if credit will be of a core
or non-core nature.
(vii) Publication of the same material
more than one time will not qualify for
continuing professional education
credit. A publication will not be
considered to consist of the same
material if a substantial portion has
been revised to reflect changes in the
law or practices relative to the
performance of pension actuarial
service.
(4) Service on Joint Board advisory
committee(s). Continuing professional
education credit may be awarded by the
Joint Board for service on (any of) its
advisory committee(s), to the extent that
the Joint Board considers warranted by
the service rendered.
(5) Preparation of Joint Board
examinations. Continuing professional
education credit may be awarded by the
Joint Board for participation in drafting
questions for use on Joint Board
examinations or in pretesting its
examinations, to the extent the Joint
Board determines suitable. Such credit
may not exceed 50 percent of the
continuing professional education
requirement for the applicable
enrollment cycle.
(6) Examinations sponsored by
professional organizations or societies.
Individuals may earn continuing
professional education credit for
achieving a passing grade on proctored
examinations sponsored by a
professional organization or society
recognized by the Joint Board. Such
credit is limited to the number of hours
scheduled for each examination and
may be applied only as non-core credit
provided the content of the examination

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is core or non-core. No credit may be
earned for hours attributable to any
content that is neither core nor noncore.
(7) Joint Board pension examination.
Individuals may establish eligibility for
renewal of enrollment for any
enrollment cycle by—
(i) Achieving a passing score on the
Joint Board pension examination, as
described in § 901.12(d)(1)(i),
administered under this part during the
applicable enrollment cycle; and
(ii) Completing a minimum of 12
hours of qualifying continuing
professional education by attending
formal program(s) during the same
applicable enrollment cycle. This option
of satisfying the continuing professional
education requirements is not available
to those who receive initial enrollment
during the enrollment cycle.
*
*
*
*
*
(i) [Reserved].
(j) Recordkeeping requirements—(1)
Qualifying sponsors. A qualifying
sponsor must maintain records to verify
that each program it sponsors is a
qualifying program within the meaning
of paragraph (f)(2) of this section,
including the certificates of completion,
certificates of instruction, and outlines
and course material. In the case of
programs of more than one session,
records must be maintained to verify
each session of the program that is
completed by each participant. Records
required to be maintained under this
paragraph must be retained by the
qualifying sponsor for a period of six
years following the end of the sponsor
enrollment cycle in which the program
is held.
(2) Enrolled actuaries—(i) Qualifying
program credits as a participant. To
receive continuing professional
education credit for completion of hours
of continuing professional education
under paragraph (f) of this section, an
enrolled actuary must retain all
certificates of completion evidencing
completion of such hours for the threeyear period following the end of the
enrollment cycle in which the credits
are earned.
(ii) Qualifying program credits as an
instructor, discussion leader, or speaker.
To receive continuing professional
education credit for completion of hours
earned under paragraph (g)(2) of this
section, an enrolled actuary must retain
all certificates of instruction evidencing
completion of such hours for the threeyear period following the end of the
enrollment cycle in which the credits
are earned.
(iii) Credit for publications. To receive
continuing professional education credit

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for a publication under paragraph (g)(3)
of this section, the following
information must be maintained by the
enrolled actuary for the three-year
period following the end of the
enrollment cycle in which the credits
are earned:
(A) The name of the publisher.
(B) The title and author of the
publication.
(C) A copy of the publication.
(D) The date of the publication.
(E) The total credit hours earned, and
the total core and non-core credit hours
earned, and how many of those hours
relate to ethics.
(iv) Other credits. To receive
continuing professional education credit
for hours earned under paragraphs (g)(4)
through (g)(7) of this section, an
enrolled actuary must retain sufficient
documentation to establish completion
of such hours for the three-year period
following the end of the enrollment
cycle in which the credits are earned.
(k) Waivers. (1) Waiver from the
continuing professional education
requirements for a given period may be
granted by the Executive Director only
under extraordinary circumstances, and
upon submission of sufficient evidence
that every effort was made throughout
the enrollment cycle to participate in
one or more qualifying programs that
would have satisfied the continuing
professional education requirements.
(2) A request for waiver must be
accompanied by appropriate
documentation. The individual will be
required to furnish any additional
documentation or explanation deemed
necessary by the Executive Director.
(3) The individual will be notified by
the Executive Director of the disposition
of the request for waiver. If the waiver
is not approved, and the individual does
not otherwise satisfy the continuing
professional education requirements
within the allotted time, the individual
will be placed on the roster of inactive
enrolled individuals.
(4) Individuals seeking to rely on a
waiver of the continuing professional
education requirements must receive
the waiver from the Executive Director
before filing an application for renewal
of enrollment.
(l) Failure to comply. (1) Compliance
by an individual with the requirements
of this part shall be determined by the
Executive Director. * * *
(2) The Executive Director may
require any individual, by first class
mail sent to his/her mailing address of
record with the Joint Board, to provide
copies of any records required to be
maintained under this section. * * *
(3) * * * A request for review and the
reasons in support of the request must

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be filed with the Joint Board within 30
days of the date of the notice of failure
to comply.
(4) Inactive status—(i) Automatic
placement on the inactive roster. To
remain on the roster of active enrolled
actuaries, an enrolled actuary must
submit a timely application for renewal
showing satisfaction of the requirements
for reenrollment, including completion
of the required continuing professional
education hours, within the appropriate
time frame. The Executive Director will
move an enrolled actuary who does not
submit such an application for
reenrollment from the roster of enrolled
actuaries to the roster of inactive
enrolled actuaries as of April 1
following the March 1 due date for the
application. However, if an enrolled
actuary completes the required number
of continuing professional education
hours after the close of the enrollment
cycle, submits an application for
reenrollment, and is informed by the
Executive Director before April 1st that
the enrollment has been renewed, then
the Executive Director will not move
such individual to the roster of inactive
enrolled actuaries at that time.
(ii) Placement on the inactive roster
after notice and right to respond. The
Executive Director will move an
enrolled actuary who does submit a
timely application of renewal that
shows timely completion of the required
continuing professional education to the
inactive roster only after giving the
enrolled actuary 60 days to respond as
described in paragraph (l)(1) of this
section.
(iii) Length on time on inactive roster.
An individual may remain on the roster
of inactive enrolled actuaries for a
period up to three enrollment cycles
from the date renewal would have been
effective.
(iv) Consequence of being on the
inactive roster. An individual in
inactive status will be ineligible to
perform pension actuarial services as an
enrolled actuary under ERISA and the
Internal Revenue Code. During such
time in inactive status or at any other
time an individual is ineligible to
perform pension actuarial services as an
enrolled actuary, the individual shall
not in any manner, directly or
indirectly, indicate he or she is so
enrolled, or use the term ‘‘enrolled
actuary,’’ the designation ‘‘E.A.,’’ or other
form of reference to eligibility to
perform pension actuarial services as an
enrolled actuary.
(v) Returning to active status. An
individual placed in inactive status may
return to active status by filing an
application for renewal of enrollment
(with the appropriate fee) and providing

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evidence of the completion of all
required continuing professional
education hours and of satisfaction of
any applicable requirements for
qualifying experience under paragraph
(l)(7) of this section. If an application for
return to active status is approved, the
individual will be eligible to perform
services as an enrolled actuary effective
with the date the notice of approval is
mailed to that individual by the
Executive Director.
(5) Time for return to active
enrollment. (i) An individual placed in
inactive status must file an application
for return to active enrollment, and
satisfy the requirements for return to
active enrollment as set forth in this
section, within three enrollment cycles
of being placed in inactive status.
Otherwise, the name of such individual
will be removed from the inactive
enrollment roster and his/her
enrollment will terminate.
(ii) For purposes of paragraph (l)(5)(i)
of this section, an individual who is in
inactive or retired status as of April 1,
2010, will be deemed to have been
placed in inactive status on April 1,
2010.
(6) An individual in inactive status
may satisfy the requirements for return
to active enrollment at any time during
his/her period of inactive enrollment. If
only completion of the continuing
professional education requirement is
necessary, the application for return to
active enrollment may be filed
immediately upon such completion. If
qualifying experience is also required,
the application for return to active
enrollment may not be filed until the
completion of both the continuing
professional education and qualifying
experience requirements set forth in this
subsection. Continuing professional
education credits applied to meet the
requirements for reenrollment under
this paragraph (l)(6) may not be used to
satisfy the requirements of the
enrollment cycle in which the
individual has been placed back on the
active roster.
(7) Continuing professional education
requirements for return to active
enrollment from inactive status. (i)
During the first inactive enrollment
cycle; 36 hours of qualifying continuing
professional education as set forth in
paragraph (e)(2) of this section, without
regard to paragraph (e)(2)(ii) or (e)(2)(iii)
of this section, must be completed. Any
hours of continuing professional
education credit earned during the
immediately prior enrollment cycle may
be applied in satisfying this
requirement.
(ii) During the second inactive
enrollment cycle; four-thirds of the

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qualifying continuing professional
education requirements as set forth in
paragraph (e)(2) of this section (that is,
48 hours), without regard to paragraph
(e)(2)(ii) or (e)(2)(iii) of this section, plus
eighteen months of certified responsible
pension actuarial experience, must be
completed since the start of the first
inactive enrollment cycle. Any hours of
continuing professional education credit
earned during the first inactive
enrollment cycle may be applied in
satisfying this requirement.
(iii) During the third inactive
enrollment cycle: Five-thirds of the
qualifying continuing professional
education requirements as set forth in
paragraph (e)(2) of this section, (that is,
60 hours), without regard to paragraph
(e)(2)(ii) or (e)(2)(iii) of this section plus
eighteen months of certified responsible
pension actuarial experience, must be
completed since the start of the second
inactive enrollment cycle. Any hours of
continuing professional education credit
earned during the second inactive
enrollment cycle may be applied in
satisfying this requirement. No hours
earned during the first inactive
enrollment cycle may be applied in
satisfying this requirement.
*
*
*
*
*
(9) An individual who has certified in
good faith that he/she has satisfied the
continuing professional education
requirements of this section will not be
considered to be in non-compliance
with such requirements on the basis of
a program he/she has attended later
being found inadequate or not in
compliance with the requirements for
continuing professional education.
* * *
*
*
*
*
*
(n) Verification. The Executive
Director or his/her designee may request
and review the continuing professional
education records of an enrolled
actuary, including programs attended,
in a manner deemed appropriate to
determine compliance with the
requirements and standards for the
renewal of enrollment as provided in
this section. The Executive Director may
also request and review the records of
any qualifying sponsor in a manner
deemed appropriate to determine
compliance with the requirements of
paragraphs (f)(3) and (j)(1) of this
section.
(o) Examples. The following examples
illustrate the application of the rules of
paragraph (l)(7) of this section and the
effective date of an enrolled actuary’s
renewal:
Example 1. Individual E, who was initially
enrolled before January 1, 2008, completes 12
hours of core continuing professional

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17773

education credit and 24 hours of non-core
continuing professional education credit
between January 1, 2011, and December 31,
2013. E files a complete application for
reenrollment on February 28, 2014. E’s
reenrollment is effective as of April 1, 2014.
Example 2. Individual F, who was initially
enrolled before January 1, 2008, also
completes 12 hours of core continuing
professional education credit and 24 hours of
non-core continuing professional education
credit between January 1, 2011, and
December 31, 2013. However, F does not file
an application for reenrollment until March
20, 2014. The Joint Board notifies F that it
has granted F’s application on June 25, 2014.
Accordingly, effective April 1, 2014, F is
placed on the roster of inactive enrolled
actuaries. F returns to active status as of June
25, 2014. F is ineligible to perform pension
actuarial services as an enrolled actuary
under ERISA and the Internal Revenue Code
from April 1 through June 24, 2014.
Example 3. Individual G, who was
initially enrolled before January 1, 2008,
completes only 8 hours of core continuing
professional education credit and 24 hours of
non-core continuing professional education
credit between January 1, 2011, and
December 31, 2013. G completes another 6
hours of core continuing professional
education on January 15, 2014, and files an
application for return to active status on
January 20, 2014. G’s application shows the
timely completion of 32 hours of continuing
professional education plus the additional 4
hours of continuing professional education
earned after the end of the enrollment cycle.
The Joint Board notifies G that it has granted
the application on April 20, 2014.
Accordingly, effective April 1, 2014, G is
placed on the roster of inactive enrolled
actuaries. G returns to active status as of
April 20, 2014. G is ineligible to perform
pension actuarial services as an enrolled
actuary under ERISA and the Internal
Revenue Code from April 1 through April 19,
2014. Of the 6 hours of continuing
professional education earned by G on
January 15, 2014, only 2 hours may be
applied to the enrollment cycle that ends
December 31, 2016.
Example 4. (i) Individual H, who was
initially enrolled before January 1, 2008,
completes 5 hours of core continuing
professional education credit and 10 hours of
non-core continuing professional education
credit between January 1, 2011, and
December 31, 2013. Accordingly, effective
April 1, 2014, E is placed on the roster of
inactive enrolled actuaries and is ineligible to
perform pension actuarial services as an
enrolled actuary under ERISA and the
Internal Revenue Code.
(ii) H completes 7 hours of core continuing
professional education credit and 14 hours of
noncore continuing professional education
credit between January 1, 2014, and May 24,
2016. Because H has completed 12 hours of
core continuing professional education and
24 hours of non-core continuing professional
education during the last active enrollment
period and the initial period when on
inactive status, H has satisfied the
requirements for reenrollment during the first
inactive cycle. Accordingly, H may file an

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application for return to active enrollment on
May 24, 2016. If this application is approved,
H will be eligible to perform pension
actuarial services as an enrolled actuary
under ERISA and the Internal Revenue Code,
effective with the date of such approval.
(iii) Because H used the 21 hours of
continuing professional education credit
earned after January 1, 2014, for return from
inactive status, H may not apply any of these
21 hours of core and non-core continuing
professional education credits towards the
requirements for renewed enrollment
effective April 1, 2017. Accordingly, H must
complete an additional 36 hours of
continuing professional education (12 core
and 24 non-core) prior to December 31, 2016,
to be eligible for renewed enrollment
effective April 1, 2017.
Example 5. (i) The facts are the same as
in Example 4 except H completes 2 hours of
core continuing professional education credit
and 8 hours of non-core continuing
professional education credit between
January 1, 2014, and December 31, 2016.
Thus, because H did not fulfill the
requirements for return to active status
during his first inactive cycle, H must satisfy
the requirements of paragraph (l)(7)(ii) of this
section in order to return to active status.
(ii) Accordingly, in order to be eligible to
file an application for return to active status
on or before December 31, 2019, H must
complete an additional 38 hours of
continuing professional education credit (of
which at least 14 hours must consist of core
subject matter) between January 1, 2017, and
December 31, 2019, and have 18 months of
certified responsible pension actuarial
experience during the period beginning on
January 1, 2014.
(iii) Note that the 5 hours of core
continuing professional education credit and
the 10 hours of non-core continuing
professional education credit that H
completes between January 1, 2011, and
December 31, 2013, are not counted toward
H’s return to active status and are also not
taken into account toward the additional
hours of continuing professional education
credit that H must complete between January
1, 2017, and December 31, 2019, in order to
apply for renewal of enrollment effective
April 1, 2020.
Example 6. (i) The facts are the same as
in Example 4 except H completes 2 hours of
core continuing professional education credit
and 8 hours of non-core continuing
professional education credit between
January 1, 2014, and December 31, 2016, and
12 hours of core continuing professional
education credit and 24 hours of non-core
continuing professional education credit
between January 1, 2017, and December 31,
2019. Thus, because H did not fulfill the
requirements for return to active status
during his first or second inactive cycles, H
must satisfy the requirements of paragraph
(l)(7)(iii) of this section in order to return to
active status.
(ii) Accordingly, in order to be eligible to
file an application for return to active status
on or before December 31, 2022, H must
complete an additional 24 hours of
continuing professional education credit (of
which, at least 8 hours must consist of core

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subject matter) between January 1, 2020 and
December 31, 2022, and have at least 18
months of certified responsible pension
actuarial experience during the period
beginning on January 1, 2017.
(iii) Note that the total of 15 hours of
continuing professional education credit that
E completes between January 1, 2011, and
December 31, 2013, as well as the 10 hours
of continuing professional education credit
between January 1, 2014, and December 31,
2016, are not counted toward H’s return to
active status and are not taken into account
toward the additional hours of continuing
professional education credit that H must
complete between January 1, 2020, and
December 31, 2022, in order to be eligible to
file an application for renewal of enrollment
active status effective April 1, 2023.
Example 7. (i) Individual J, who was
initially enrolled July 1, 2012, completes 1
hour of core continuing professional
education credit and 2 hours of non-core
continuing professional education credit
between January 1, 2012, and December 31,
2013. Accordingly, effective April 1, 2014, J
is placed on the roster of inactive enrolled
actuaries and is ineligible to perform pension
actuarial services as an enrolled actuary
under ERISA and the Internal Revenue Code.
(ii) F completes 5 hours of core continuing
professional education credit and 4 hours of
non-core continuing professional education
credit between January 1, 2014, and October
6, 2014. Because J did not complete the
required 12 hours of continuing professional
education (of which at least 6 hours must
consist of core subject matter) during F’s
initial enrollment cycle, J is not eligible to
file an application for a return to active
enrollment on October 6, 2014,
notwithstanding the fact that had J completed
such hours between January 1, 2012, and
December 31, 2013, J would have satisfied
the requirements for renewed enrollment
effective April 1, 2014.
(iii) Accordingly, J must complete an
additional 24 hours of continuing
professional education (of which at least 12
hours must consist of core subject matter)
during his/her first inactive enrollment cycle
before applying for renewal of enrollment.
Example 8. The facts are the same as in
Example 7 except that J completes 17 hours
of core continuing professional education
credit and 16 hours of non-core continuing
professional education credit between
January 1, 2014, and February 12, 2015.
Accordingly, because as of February 12,
2015, J satisfied the continuing professional
education requirements as set forth in
paragraph (e)(2) of this section without
regard to paragraph (e)(2)(ii) thereof, J may
file an application for return to active
enrollment status on February 12, 2015.

(p) With the exception of paragraphs
(e)(1) and (f)(3)(iii) of this section, this
section applies to the enrollment cycle
beginning January 1, 2011, and all
subsequent enrollment cycles.
§ 901.12
■

[Removed]

Par. 6. Section 901.12 is removed.

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§ 901.13

[Redesignated as § 901.12]

Par. 7. Section 901.13 is redesignated
as § 901.12.
■ Par. 8. Newly redesignated § 901.12 is
amended by revising the section
heading and paragraphs (a), (b), (d), and
(e) to read as follows:
■

§ 901.12

Eligibility for enrollment.

(a) In general. An individual applying
to be an enrolled actuary must fulfill the
experience requirement of paragraph (b)
of this section, the basic actuarial
knowledge requirement of paragraph (c)
of this section, and the pension actuarial
knowledge requirement of paragraph (d)
of this section.
(b) Qualifying experience. Within the
10-year period immediately preceding
the date of application, the applicant
shall have completed either—
(1) A minimum of 36 months of
certified responsible pension actuarial
experience; or
(2) A minimum of 60 months of
certified responsible actuarial
experience, including at least 18 months
of certified responsible pension
actuarial experience.
*
*
*
*
*
(d) Pension actuarial knowledge.
(1) The applicant shall demonstrate
pension actuarial knowledge by one of
the following:
(i) Joint Board pension examination.
Successful completion, within the 10year period immediately preceding the
date of the application, to a score
satisfactory to the Joint Board, of an
examination prescribed by the Joint
Board in actuarial mathematics and
methodology relating to pension plans,
including the provisions of ERISA
relating to the minimum funding
requirements and allocation of assets on
plan termination.
(ii) Organization pension
examinations. Successful completion,
within the 10-year period immediately
preceding the date of the application, to
a score satisfactory to the Joint Board, of
one or more proctored examinations
which are given by an actuarial
organization and which the Joint Board
has determined cover substantially the
same subject areas, have at least a
comparable level of difficulty, and
require at least the same competence as
the Joint Board pension examination
referred to in paragraph (d)(1)(i) of this
section.
(2) For purposes of this section, the
date of successful completion of an
examination is generally the date a
candidate sits for the examination,
provided that the candidate receives a
passing grade on that examination.
However, an applicant who sat for an

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Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / Rules and Regulations
examination prior to the effective date
of these regulations will be deemed to
have sat for such examination on the
effective date.
(e) Form; fee. An applicant who
wishes to take an examination
administered by the Joint Board under
paragraph (c)(1) or (d)(1) of this section
shall file an application on a form
prescribed by the Joint Board. Such
application shall be accompanied by
payment in the amount set forth on the
application form. The amount
represents a fee charged to each
applicant for examination and is
designed to cover the costs for the
administration of the examination. The
fee shall be retained whether or not the
applicant successfully completes the
examination or is enrolled.
*
*
*
*
*
■ Par. 9. Section 901.20 is amended as
follows:
■ A. Revising paragraphs (b), (d), (e), (f),
and (g).
■ B. Redesignating paragraph (h) as
paragraph (k), and adding new
paragraph (h).
■ C. Adding and reserving paragraph (i).
■ D. Adding new paragraphs (j) and (l).
The revisions and additions read as
follows:
§ 901.20 Standards of performance of
actuarial services.

jdjones on DSK8KYBLC1PROD with RULES_2

*

*
*
*
*
(b) Professional duty. (1) An enrolled
actuary shall perform actuarial services
only in a manner that is fully in
accordance with all of the duties and
requirements for such persons under
applicable law and consistent with
relevant generally accepted standards
for professional responsibility and
ethics.
(2) An enrolled actuary shall not
perform actuarial services for any
person or organization which he/she
believes, or has reasonable grounds to
believe, may utilize his/her services in
a fraudulent manner or in a manner
inconsistent with law.
*
*
*
*
*
(d) Conflicts of interest. (1) Except as
provided in paragraph (d)(2) of this
section, an enrolled actuary shall not
perform actuarial services for a client if
the representation involves a conflict of
interest. A conflict of interest exists if—
(i) The representation of one client
will be directly adverse to another
client; or
(ii) There is a significant risk that the
representation of one or more clients
will be materially limited by the
enrolled actuary’s responsibilities to
another client, a former client, or by a
personal interest of the enrolled actuary.

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(2) Notwithstanding the existence of a
conflict of interest under paragraph
(d)(1) of this section, the enrolled
actuary may represent a client if—
(i) The enrolled actuary reasonably
believes that he or she will be able to
provide competent and diligent
representation to each affected client;
(ii) The representation is not
prohibited by law; and
(iii) Each affected client waives the
conflict of interest and gives informed
consent at the time the existence of the
conflict of interest is known by the
enrolled actuary.
(e) Assumptions, calculations and
recommendations. (1) The enrolled
actuary shall exercise due care, skill,
prudence and diligence when
performing actuarial services under
ERISA and the Internal Revenue Code.
In particular, in the course of preparing
a report or certificate stating actuarial
costs or liabilities, the enrolled actuary
shall ensure that—
(i) Except as mandated by law, the
actuarial assumptions are reasonable
individually and in combination, and
the actuarial cost method and the
actuarial method of valuation of assets
are appropriate;
(ii) The calculations are accurately
carried out and properly documented;
and
(iii) The report, any
recommendations, and any
supplemental advice or explanation
relative to the report reflect the results
of the calculations.
(2) An enrolled actuary shall include
in any report or certificate stating
actuarial costs or liabilities, a statement
or reference describing or clearly
identifying the data, any material
inadequacies therein and the
implications thereof, and the actuarial
methods and assumptions employed.
(f) Due diligence. (1) An enrolled
actuary must exercise due diligence—
(i) In preparing or assisting in the
preparation of, approving, and filing tax
returns, documents, affidavits, and other
papers relating to the Department of the
Treasury, the Department of Labor, the
Pension Benefit Guaranty Corporation,
or any other applicable Federal or State
entity;
(ii) In determining the correctness of
oral or written representations made by
the enrolled actuary to the Department
of the Treasury, the Department of
Labor, the Pension Benefit Guaranty
Corporation, or any other applicable
Federal or State entity; and
(iii) In determining the correctness of
oral or written representations made by
the enrolled actuary to clients.
(2) An enrolled actuary advising a
client to take a position on any

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17775

document to be filed with the
Department of the Treasury, the
Department of Labor, the Pension
Benefit Guaranty Corporation, or any
other applicable Federal or State entity
(or preparing or signing such a return or
document) generally may rely in good
faith without verification upon
information furnished by the client. The
enrolled actuary may not, however,
ignore the implications of information
furnished to, or actually known by, the
enrolled actuary, and must make
reasonable inquiries if the information
as furnished appears to be incorrect,
inconsistent with an important fact or
another factual assumption, or
incomplete.
(g) Solicitations regarding actuarial
services. An enrolled actuary may not in
any way use or participate in the use of
any form of public communication or
private solicitation related to the
performance of actuarial services
containing a false, fraudulent, or
coercive statement or claim, or a
misleading or deceptive statement or
claim. An enrolled actuary may not
make, directly or indirectly, an
uninvited written or oral solicitation of
employment related to actuarial services
if the solicitation violates Federal or
State law, nor may such person employ,
accept employment in partnership form,
corporate form, or any other form, or
share fees with, any individual or entity
who so solicits. Any lawful solicitation
related to the performance of actuarial
services made by or on behalf of an
enrolled actuary must clearly identify
the solicitation as such and, if
applicable, identify the source of the
information used in choosing the
recipient.
(h) Prompt disposition of pending
matters. An enrolled actuary may not
unreasonably delay the prompt
disposition of any matter before the
Internal Revenue Service, the
Department of Labor, the Pension
Benefit Guaranty Corporation, or any
other applicable Federal or State entity.
(i) [Reserved].
(j) Return of client’s records. (1) In
general, an enrolled actuary must, at the
request of a client, promptly return any
and all records of the client that are
necessary for the client to comply with
his or her legal obligations. The enrolled
actuary may retain copies of the records
returned to a client. The existence of a
dispute over fees generally does not
relieve the enrolled actuary of his or her
responsibility under this section.
Nevertheless, if applicable State law
allows or permits the retention of a
client’s records by an enrolled actuary
in the case of a dispute over fees for
services rendered, the enrolled actuary

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jdjones on DSK8KYBLC1PROD with RULES_2

need only return those records that must
be attached to the client’s required
forms under ERISA and the Internal
Revenue Code. The enrolled actuary,
however, must provide the client with
reasonable access to review and copy
any additional records of the client
retained by the enrolled actuary under
State law that are necessary for the
client to comply with his or her
obligations under ERISA and the
Internal Revenue Code.
(2) For purposes of this section,
records of the client include all
documents or written or electronic
materials provided to the enrolled
actuary, or obtained by the enrolled
actuary in the course of the enrolled
actuary’s representation of the client,
that preexisted the retention of the
enrolled actuary by the client. The term
‘‘records of the client’’ also includes
materials that were prepared by the
client or a third party (not including an
employee or agent of the enrolled
actuary) at any time and provided to the
enrolled actuary with respect to the
subject matter of the representation. The
term ‘‘records of the client’’ also includes
any return, claim for refund, schedule,
affidavit, appraisal or any other
document prepared by the enrolled
actuary, or his or her employee or agent,
that was presented to the client with
respect to a prior representation if such
document is necessary for the taxpayer
to comply with his or her current
obligations under ERISA and the
Internal Revenue Code. The term
‘‘records of the client’’ does not include
any return, claim for refund, schedule,
affidavit, appraisal or any other
document prepared by the enrolled
actuary or the enrolled actuary’s firm,
employees or agents if the enrolled
actuary is withholding such document
pending the client’s performance of its
contractual obligation to pay fees with
respect to such document.
*
*
*
*
*
(l) The rules of this section apply to
all actuarial services and related acts
performed on or after May 2, 2011.

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Par. 10. Section 901.31 is amended by
revising paragraphs (a) and (c) to read as
follows:

■

§ 901.31 Grounds for suspension or
termination of enrollment.

(a) Failure to satisfy requirements for
enrollment. The enrollment of an
actuary may be terminated if it is found
that the actuary did not satisfy the
eligibility requirements set forth in
§ 901.11 or § 901.12.
*
*
*
*
*
(c) Disreputable conduct. The
enrollment of an actuary may be
suspended or terminated if it is found
that the actuary has, at any time after
he/she applied for enrollment, engaged
in any conduct set forth in § 901.12(f) or
other conduct evidencing fraud,
dishonesty, or breach of trust. Such
other conduct includes, but is not
limited to, the following:
*
*
*
*
*
Par. 11. Section 901.32 is amended by
revising the last sentence to read as
follows:

■

Approved: March 2, 2011.
Carolyn Zimmerman,
Chairman, Joint Board for the Enrollment of
Actuaries.
[FR Doc. 2011–7573 Filed 3–29–11; 11:15 am]
BILLING CODE 4810–25–P

DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Food and Drug Administration
21 CFR Parts 510, 520, 522, 524, and
558
[Docket No. FDA–2011–N–0160]

Animal Drugs, Feeds, and Related
Products; Withdrawal of Approval of
New Animal Drug Applications;
Chorionic Gonadotropin; Cuprimyxin;
Diethylcarbamazine; Levamisole;
Nitrofurazone; Phenylbutazone;
Pyrantel; Tylosin; Tylosin and
Sulfamethazine
AGENCY:

Food and Drug Administration,

HHS.
Final rule; technical
amendment.

§ 901.32 Receipt of information
concerning enrolled actuaries.

ACTION:

* * * If any other person has
information of any such violation, he/
she may make a report thereof to the
Executive Director.

SUMMARY:

Par. 12. Section 901.47 is amended by
revising the last sentence to read as
follows:

■

§ 901.47

Transcript.

* * * Copies of exhibits introduced
at the hearing or at the taking of
depositions will be supplied to parties
upon the payment of a reasonable fee
(31 U.S.C. 9701).
Par. 13. Section 901.72 is added to
read as follows:

■

§ 901.72

Additional rules.

The Joint Board may, in notice or
other guidance of general applicability,
provide additional rules regarding the
enrollment of actuaries.

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The Food and Drug
Administration (FDA) is amending the
animal drug regulations by removing
those portions that reflect approval of 13
new animal drug applications (NADAs).
In a notice published elsewhere in this
issue of the Federal Register, FDA is
withdrawing approval of these NADAs.
DATES: This rule is effective April 11,
2011.
John
Bartkowiak, Center for Veterinary
Medicine (HFV–212), Food and Drug
Administration, 7519 Standish Pl.,
Rockville, MD 20855, 240–276–9079,
e-mail: [email protected].
SUPPLEMENTARY INFORMATION: The
sponsors of the 13 approved NADAs
listed in table 1 have requested that
FDA withdraw approval because the
products are no longer manufactured or
marketed.
FOR FURTHER INFORMATION CONTACT:

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