Understanding the Joint Board for the Enrollment of Actuaries and Its Functions

Definition & Meaning

The Joint Board for the Enrollment of Actuaries (JBEA) is a regulatory body responsible for overseeing the process by which individuals become enrolled actuaries. Established under the Employee Retirement Income Security Act of 1974, the JBEA administers two examinations that candidates must pass to earn the title of enrolled actuary. This designation allows individuals to provide actuarial services in the context of pension plans and other retirement benefits.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: An individual who has passed the JBEA examinations and has accumulated the required professional experience can apply to become an enrolled actuary, allowing them to provide actuarial services for pension plans.

Example 2: A firm may require the services of an enrolled actuary to ensure compliance with federal pension regulations, thereby safeguarding the retirement benefits of its employees. (hypothetical example)

Comparison with related terms

Term Description Difference
Actuary A professional who analyzes financial risks using mathematics, statistics, and financial theory. An actuary may or may not be enrolled with the JBEA; only those who pass the JBEA exams are considered enrolled actuaries.
Enrolled Actuary An actuary who has met the qualifications set by the JBEA and is authorized to perform actuarial services for pension plans. All enrolled actuaries are actuaries, but not all actuaries are enrolled actuaries.

What to do if this term applies to you

If you are pursuing a career as an enrolled actuary, start by preparing for the JBEA examinations. Ensure you also gain the required professional experience in actuarial work. Consider using US Legal Forms to access templates that can assist you in your application process. If you have questions or need guidance, consulting a legal professional may be beneficial.

Quick facts

  • Governing Body: Joint Board for the Enrollment of Actuaries
  • Established: 1974 under ERISA
  • Examinations: Two required for enrollment
  • Composition: Five members (three from Treasury, two from Labor)

Key takeaways

Frequently asked questions

The JBEA oversees the enrollment process for actuaries and ensures that only qualified individuals provide actuarial services for pension plans.