17762 Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / Rules and Regulations 

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 

AGENCY: Joint Board for the Enrollment 

of Actuaries. 

ACTION: Final regulations. 

SUMMARY: 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: 

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 

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. 

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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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 

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 

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 

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 

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 

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 

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. 

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 

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 

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 

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 

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 

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. 

* * * * * 

(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. 

(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. * * * 

* * * * * 

(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 

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 

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 

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 36- 

month 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 

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 

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 

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 

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 

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 

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. 

§ 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 10- 

year 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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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. 

* * * * * 

(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. 

(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 

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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17776 Federal Register / Vol. 76, No. 62 / Thursday, March 31, 2011 / Rules and Regulations 

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. 

■ 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: 

§ 901.32 Receipt of information 

concerning enrolled actuaries. 

* * * If any other person has 

information of any such violation, he/ 

she may make a report thereof to the 

Executive Director. 

■ 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. 

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. 

ACTION: Final rule; technical 

amendment. 

SUMMARY: 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. 

FOR FURTHER INFORMATION CONTACT: John 

Bartkowiak, Center for Veterinary 

Medicine (HFV–212), Food and Drug 

Administration, 7519 Standish Pl., 

Rockville, MD 20855, 240–276–9079, 

e-mail: john.bartkowiak@fda.hhs.gov. 

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. 


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