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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
Legal Use & context
The term "enrolled actuary" is primarily used in the context of employee retirement plans and pension management. Enrolled actuaries are often involved in the following legal areas:
Retirement plan compliance
Pension funding and valuation
Regulatory reporting under ERISA
Users can manage some aspects of retirement plan compliance and actuarial services using legal templates provided by US Legal Forms, which are drafted by licensed attorneys.
Key legal elements
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).
Relevant laws & statutes
The primary law governing enrolled actuaries is the Employee Retirement Income Security Act of 1974 (ERISA). This act sets the standards for pension plans in the private sector and outlines the responsibilities of enrolled actuaries in ensuring compliance.
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.
Common misunderstandings
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.
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