Understanding Enrolled Actuary [Employee Retirement]: Definition and Importance

Definition & Meaning

An enrolled actuary is a professional who has met specific standards and qualifications set by the Joint Board for the Enrollment of Actuaries. This designation allows them to provide actuarial services required under the Employee Retirement Income Security Act of 1974 (ERISA). Essentially, enrolled actuaries play a critical role in ensuring that pension plans are properly managed and compliant with federal regulations.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A company hires an enrolled actuary to evaluate its pension plan's funding status and ensure compliance with ERISA regulations.

Example 2: An enrolled actuary prepares actuarial reports that help a retirement plan sponsor understand the plan's liabilities and funding requirements (hypothetical example).

Comparison with related terms

Term Definition Key Differences
Actuary A professional who analyzes financial risks using mathematics, statistics, and financial theory. All enrolled actuaries are actuaries, but not all actuaries are enrolled actuaries.
Certified Actuary An actuary who has obtained certification from a professional body. Certification may not include the specific qualifications required to be an enrolled actuary under ERISA.

What to do if this term applies to you

If you need actuarial services for a retirement plan, consider consulting with an enrolled actuary to ensure compliance with ERISA. You can also explore US Legal Forms for templates that can assist you in managing your retirement plan documentation. If your situation is complex, seeking professional legal assistance may be necessary.

Quick facts

Attribute Details
Typical Fees Varies depending on the complexity of services required.
Jurisdiction Federal regulations under ERISA.
Possible Penalties Non-compliance with ERISA can lead to significant fines and penalties.

Key takeaways

Frequently asked questions

An enrolled actuary evaluates and provides actuarial services for pension plans to ensure compliance with ERISA.