[Federal Register Volume 74, Number 181 (Monday, September 21, 2009)]
[Proposed Rules]
[Pages 48030-48043]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-22454]
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JOINT BOARD FOR THE ENROLLMENT OF ACTUARIES
20 CFR Part 901
[REG-159704-03]
RIN 1545-BC82
Performance of Actuarial Services Under the Employee Retirement
Income Security Act of 1974
AGENCY: Joint Board for the Enrollment of Actuaries.
ACTION: Notice of proposed rulemaking.
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SUMMARY: This document contains proposed amendments to 20 CFR part 901
relating to the enrollment of actuaries under section 3042 of the
Employee Retirement Income Security Act of 1974 (ERISA). The proposed
amendments would update the eligibility requirements for performing
actuarial services for ERISA-covered employee pension benefit plans,
including the continuing education requirements, and the standards for
performing such actuarial services. The proposed amendments would
affect employee pension benefit plans and the actuaries providing
actuarial services to those plans.
DATES: Written or electronic comments must be received by November 20,
2009.
ADDRESSES: Send written comments to: CC:PA:LPD:PR (REG-159704-03), Room
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
159704-03), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC or sent electronically via the Federal
eRulemaking Portal at http://www.regulations.gov (IRS REG-159704-03).
FOR FURTHER INFORMATION CONTACT: Patrick McDonough, Executive Director,
Joint Board for the Enrollment of Actuaries, (202) 622-8229 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information referenced in this notice of
proposed rulemaking were previously 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, relating to
Enrolled Actuaries under Employee Retirement Income Security Act of
1974, published on September 7, 1988, in the Federal Register (53 FR
34484). There are no proposals for substantive changes to this
collection of information.
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 assigned by the Office of Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
This document contains proposed amendments to 20 CFR Part 901 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 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. Comprehensive regulations regarding section
3042 were last issued in 1988 (53 FR 34484). The Joint Board has
determined that the regulations need to be updated to reflect changes
in the law and in industry practice. In addition to these proposed
regulations, final regulations relating to user fees for the initial
enrollment and reenrollment as an enrolled actuary were published in
the Federal Register on December 21, 2007 (72 FR 72606).
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). The RFI specifically
requested comments as to whether, and to what extent, changes should be
made to the regulations in the following five areas:
1. Procedures and conditions for enrollment and reenrollments;
2. Continuing professional education (CPE) requirements;
3. Waivers of the CPE requirements;
4. Types of enrollment statuses (active, inactive, and retired);
and
5. Standards of conduct.
Eight comments were received.
The current regulations prescribe various rules regarding the
enrollment and reenrollment of actuaries. Section 901.13 of the
regulations provides that an individual applying for enrollment must
satisfy requirements for: (1) Qualifying experience; (2) basic
actuarial knowledge; and (3) pension actuarial knowledge. Basic
actuarial knowledge may be demonstrated by passing a Joint Board
examination (or an examination acceptable to the Joint Board) regarding
basic actuarial mathematics and methodology, or by earning a degree
pertaining to actuarial mathematics from an accredited college. Pension
actuarial knowledge must be demonstrated by passing a Joint Board
examination (or an examination acceptable to the Joint Board) in
actuarial mathematics related to pension plans.
Under section 901.11, an enrolled actuary must reenroll once every
three years. To qualify for reenrollment an actuary must complete a
minimum of 36
[[Page 48031]]
hours of continuing education credit within the preceding three year
period.\1\ Of these 36 hours, at least one-half must consist of core
subject matter, which is subject matter directly related to the
performance of actuarial services under ERISA or the Internal Revenue
Code (Code). The remaining hours may consist of non-core subject
matter. The regulations provide examples of both core and non-core
subject matter. The regulations provide that the Executive Director of
the Joint Board may review the CPE records of an enrolled actuary to
verify compliance with these rules.
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\1\ The regulations also include transitional rules for
reenrollment cycles prior to 1993. This summary refers to the rules
currently applicable.
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The regulations also provide that the continuing education must be
provided as part of a ``qualifying program'' conducted by a
``qualifying sponsor.'' A qualifying program is (1) a ``formal
program'' (which requires the attendance of at least three individuals
engaged in substantive pension service), (2) a correspondence or
individual study program, or (3) a program utilizing teleconferencing.
A qualifying sponsor is an accredited educational institution, an
organization recognized by a State licensing body, or an organization
recognized by the Joint Board under a sponsor agreement in effect for a
given enrollment cycle. A qualifying sponsor must ensure that the CPE
program satisfies various requirements regarding subject matter and
administration, including recordkeeping. A separate provision applies
to the recordkeeping requirements for the enrolled actuary.
In addition to attending CPE programs, an enrolled actuary may earn
CPE credits by serving as an instructor or speaker at a CPE program,
publishing articles on topics directly related to the CPE requirements,
serving on a Joint Board advisory committee, participating in the
preparation of Joint Board examinations, passing examinations sponsored
by recognized organizations, or by passing a Joint Board pension law
actuarial examination. These alternative means for earning CPE credits
are subject to various requirements and limitations.
In the event an enrolled actuary applies for renewal but fails to
comply with the applicable requirements, the regulations provide that
the enrolled actuary shall be notified of his or her failure and given
an opportunity to provide additional information. If the enrolled
actuary fails to provide any additional information (or fails to apply
for reenrollment) the actuary will be placed in inactive status for a
period of three years (beginning on the date that renewal would have
been effective) and will be ineligible to perform services as an
enrolled actuary during this time. An individual placed in inactive
status must file an application for renewal and satisfy the
requirements for renewal within three years or his enrollment will
terminate. If an individual's enrollment is terminated, it can only be
reestablished by satisfying the requirements for initial enrollment.
The regulations also provide that an individual may request
placement in an inactive retirement status during which time the
actuary will be ineligible to perform services as an enrolled actuary.
An individual placed in this status may be reinstated by completing the
required CPE credits for the applicable period.
Section 901.20 of the regulations prohibits an enrolled actuary
from performing actuarial services under various circumstances
including when the actuary is not qualified to perform the service,
where the actuary has reasonable grounds to believe his or her services
will be used in a fraudulent manner, or where there is a conflict of
interest. The section also requires that an enrolled actuary must
exercise due care, skill, and diligence in providing his or her pension
actuarial services and proper utilization of the enrolled actuary
designation.
Explanation of Provisions
The submitted comments and the related proposed changes to the
regulations may be divided into the five categories of the RFI.
A. Procedures for Enrollment and Reenrollment
Various comments were received regarding the materials covered by
the enrolled actuary examinations. Several comments supported
broadening the scope of the material to include matters unrelated to
defined benefit plans, such as the funding of post-retirement medical
and life insurance benefits within the meaning of Code sections 419 and
419A. To the extent that an enrolled actuary may need to practice
before the IRS in these areas, one comment suggested that an enrolled
actuary should be permitted to work together with a qualified health
actuary. In contrast, another comment suggested focusing the
examinations exclusively on pension actuarial issues under ERISA and
the Code. Some comments called for a stronger emphasis on the selection
of actuarial assumptions. One such comment acknowledged that the
subject is not easily tested, but made suggestions as to how this could
be done.
Another comment proposed eliminating requirements for the
examinations to cover specific materials and instead have the
regulations grant the Joint Board the authority and flexibility to
prescribe relevant and current topics.
There were also suggestions regarding the process and form of
testing. One comment suggested that focusing each examination question
on a single concept (instead of multiple concepts as is done currently)
would enable a candidate to avoid losing credit for an entire question
if he/she responds correctly to all but one of the concepts being
tested. It was also suggested that the regulations allow more
flexibility in the number of exams and that they clarify any time limit
for their completion.
One comment recommended the use of computer-based testing and other
emerging alternative testing procedures, and coordination of changes in
the Joint Board examinations with related examinations offered by
recognized organizations.
There was general agreement among the comments in keeping the
current qualifying experience requirement unchanged although one
comment suggested that the regulations require that an applicant's
actuarial experience be certified by an enrolled actuary.
No changes are made under the proposed regulations to the materials
covered by either the basic actuarial examination or to the examination
for pension actuarial knowledge. The Joint Board believes that the
provisions of the current regulations regarding the general form and
structure of the examinations, as updated from time to time, are
adequate.
The proposed regulations, however, would require that the pension
actuarial examination must be completed within the ten-year period
immediately preceding the date of application for initial enrollment.
The Joint Board believes such a requirement is needed because of the
frequent changes in pension law and a need for an enrolled actuary to
have current knowledge of pension requirements.\2\ On the other hand,
because the material in the basic actuarial examination is generally
mathematical in nature and is not affected by changes in pension law, a
similar rule for the basic actuarial examination would not apply.
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\2\ This rule would be applied prospectively. Accordingly, the
successful completion of a pension actuarial examination prior to
the effective date of this regulation will be recognized for ten
years after such effective date.
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With respect to computer-based testing, the Joint Board
acknowledges
[[Page 48032]]
that new technologies can serve many uses. The Joint Board believes,
however, that the language in the current regulations would not
preclude the use of computer-based testing and does not believe it is
necessary to amend the regulations to specify the format for taking
examinations.
With respect to qualifying experience, the proposed regulations
would require that all actuarial and pension actuarial experience be
certified in writing by individuals with knowledge of the individual's
experience. If the individual's supervisor is not an enrolled actuary,
the pension actuarial experience must be certified by both the
supervisor and an enrolled actuary with knowledge of the individual's
pension experience. As in the current regulations, the qualifying
experience must have been completed within the last 10 years before the
application for enrollment.
B. CPE Requirements
Several comments were received regarding the distinction between
core and non-core subject matter. One comment suggested that the
distinction between core and non-core subject matter be eliminated for
purposes of meeting CPE requirements as the distinction does not serve
a useful purpose in a rapidly evolving financial marketplace and
regulatory environment. The comment added that, assuming these core/
non-core categories were kept, additional guidance should be provided
as to what constitutes core and non-core credit subject matter.
Other comments suggested that the list of core subject matter be
expanded to include such topics as pension accounting, Code sections
419, 419A and 420, risk theory, and finance. Another comment
specifically supported adding pension accounting, but objected to
counting investment topics as core topics. Another comment recommended
including various additional topics in an expanded list of acceptable
non-core topics such as defined contribution plans, Social Security and
Medicare benefits, pension valuation software programming, other
accounting, risk management and new emerging topics in actuarial
practice. Another comment recommended replacing the core/non-core
classification with three new categories: (1) Retirement plan rules
under ERISA and the Code (including, but not limited to, sections 401
through 420), (2) funding issues in relation to defined benefit plans,
and (3) actuarial ethics. This comment also suggested requiring at
least 45 hours of CPE credit (with a minimum of three hours in funding
issues and in actuarial ethics) and granting the Joint Board the
authority to designate additional mandatory areas of CPE. One comment
recommended that the definition of ``core'' subject matter should
continue to be focused on pension actuarial services under ERISA and
the Code and opposed any expansion of the definition of core subject
matter.
Some comments suggested distinguishing between CPE credits required
early in an actuary's career, where core courses may be necessary to
help cement the actuary's understanding of actuarial principles, and
credits needed later in an actuary's career. One comment suggested, for
example, that 18 hours of core CPE credit be required for the first two
enrollment cycles and that 12 hours of core credit be required in
subsequent enrollment cycles. It was also suggested that a minimum of
three hours of ethics be required.
Many comments, particularly from sponsors of CPE programs,
requested flexibility in the use of the web and other alternatives to
formal meetings. For example, some suggested that computer-based self-
study or distance learning programs and webcasts should be included as
qualifying CPE programs. A number of comments sought additional
guidance from the Joint Board regarding the use of webcasts and self-
study programs to earn CPE credits. The issues raised in this regard
included the need for appropriate safeguards and mechanisms to validate
participation by the actuary. In recognition that future technological
advances are almost certain to occur, another comment recommended that
the regulations be revised to allow a qualifying sponsor to apply to
the Joint Board for approval to use those technologies. The comment
also suggested that the regulations specifically give the Joint Board
the authority to permit the use of those emerging technologies, with
acceptance of the technology being communicated via a public
announcement without requiring the Joint Board to further update the
regulations.
One comment recommended permitting actuaries to attest in their
professional capacities to their completion of continuing education
credit, and the establishment of an appropriate audit process to
oversee compliance with the rules. The comment further recommended that
the Joint Board undertake random audits of CPE records to ensure
compliance with the attestation requirement. Similarly, another comment
recommended an enrolled actuary should be required to certify that he/
she has satisfied certain CPE requirements and to provide information
regarding whether or not he/she has been disciplined or is under
disciplinary review by any professional body.
One comment suggested that the requirement that a formal program be
attended by at least three individuals engaged in substantive pension
service may be satisfied, in the case of programs viewed simultaneously
at multiple locations via teleconference, web cast, conference call or
other similar technology, if the total combined audience at all
locations contains at least three such individuals.
Several comments recommended various electronic means to retain
records and to streamline the application process. One comment
recommended that a qualifying sponsor be required to keep electronic
copies of the session materials, but make them accessible to the Joint
Board should they need to be reviewed or audited for content. Another
comment recommended that the Joint Board provide for on-line renewal of
enrollment and an on-line process for an actuary to respond to an audit
of his/her CPE credits. A third comment recommended that all records be
maintained electronically and that CPE credit hours be provided and
stored electronically, enabling the Joint Board to have access to the
credit hours earned by actuaries at all times and reducing the volume
of hard copy recordkeeping.
One comment recommended extending the enrollment cycle to 5 years
with an increase in the required CPE credits to 60 hours, including a
minimum of 8 hours in each year of the cycle. Another comment suggested
that the current CPE requirement (36 credit hours over a three year
cycle) is appropriate, with some possible refinements such as either
reducing the credits that could be earned for each hour as a presenter
and increasing the current limit on such credits as a portion of total
CPE; allowing CPE credits as a co-author (if not the primary author);
or withholding session credit to an attendee for inattentive or
disruptive conduct.
One comment suggested that the regulations should provide guidance
on renewal of approval for qualifying sponsors. There were a few
comments that suggested changing the enrollment cycle for qualifying
sponsors so as not to be coterminous with the enrolled actuary
enrollment cycle or to increase the number of years in the sponsor
enrollment cycle. Another comment suggested the regulations be amended
to allow the Joint Board to periodically publish a list of qualifying
sponsors in
[[Page 48033]]
order to facilitate a search for programs that are eligible for CPE
credits.
The Joint Board continues to believe that an important thrust of
CPE should be core subject matter that is directly related to pension
actuarial services under ERISA and the Code, an area in which an
enrolled actuary must maintain minimum competencies at all times. The
Joint Board also believes that there are other relevant non-core topics
that enhance the knowledge of enrolled actuaries and keep them current
in matters related to the performance of pension actuarial services.
The proposed regulations would provide a revised definition of ``core''
subject matter which the Joint Board believes will be helpful in
distinguishing between core and non-core subject matter. The lists of
core and non-core subject matter are generally unchanged, but the
proposed regulations would provide that all materials included on the
syllabi of any of the pension actuarial examinations offered by the
Joint Board during the current and immediately preceding enrollment
cycles would constitute core subject matter. The Joint Board also
invites further comments in this area.
With respect to CPE programs, the proposed regulations would
clarify the permissible forms of qualifying programs. The regulations
would also retain the use of alternative means for completion of CPE,
but continue to limit the portion of total CPE that may be earned under
these alternative approaches. The regulations would also add a
provision that awards CPE credits to a co-author of a publication or a
person listed as a major contributor to a publication.
The proposed regulations would also clarify the responsibilities of
program sponsors by requiring that those who submit requests to the
Executive Director to be recognized as qualifying sponsors include
sufficient information in their requests to establish that their
programs would satisfy the applicable requirements for qualifying
programs.
The Joint Board agrees that new technologies allow enrolled
actuaries and qualifying sponsors more flexibility in their choices of
form and delivery of CPE programs and should be reflected when granting
CPE credits. However, new technologies also raise new challenges
regarding verification of attendance and completion of CPE under
certain programs. Therefore, the proposed regulations would allow
qualifying programs to include both formal programs as well as
correspondence or individual study programs (including audio and/or
video taped programs) and teleconferencing (including web casts)
provided that the qualifying program meets certain requirements with
regard to verification of attendance and measurement of completion.
The Joint Board also agrees that recordkeeping provisions under the
current regulations should be updated. The proposed regulations would
amend the recordkeeping requirements to place more reliance on
qualifying sponsors to maintain records of the course content since
they generally maintain records of that content in any event. The
enrolled actuaries will now be required only to retain certificates of
completion and/or instruction as evidence of satisfaction of CPE
requirements. In addition, the proposed regulations would expressly
allow the Joint Board to request CPE records from the enrolled actuary
and the qualifying sponsor. The regulations do not reflect any changes
in the method used to provide information to the office of the
Executive Director. However, the Board is willing to consider web-based
applications or other technology for this information in the future.
With respect to the renewal cycle and required CPE credits, the
Joint Board continues to believe that the current three-year renewal
period is appropriate. The Board, however, proposes to delay the start
date for the renewal cycle for qualifying sponsors by one year after
the renewal cycle for enrolled actuaries in order to ease the
administrative demands on the Executive Director and his staff, and to
facilitate renewals by qualifying sponsors.
The proposed regulations would also retain the current requirement
for a total of 36 hours of CPE (half of which must be core subject
matter) for the initial three-year enrollment renewal cycle, for
individuals who renew on a timely basis. Recognizing, however, that
experienced actuaries generally do not need to focus on core topics as
much as newly enrolled actuaries, the proposed regulations would reduce
the number of core CPE credits required after the enrolled actuary's
initial enrollment renewal from 18 required core hours to 12 required
core hours. The Joint Board also believes that enrolled actuaries
should maintain high professional standards and thus proposes a new
requirement that a minimum of two hours of core CPE be allocated to
ethical standards in each enrollment cycle. Topics that would meet this
requirement include (but are not limited to) discussions of
professional codes of conduct, professional responsibilities, and any
of the topics addressed in section 901.20 of these proposed
regulations.
The Joint Board believes that formal programs should continue to
play a prominent role in fulfilling CPE requirements because of the
additional learning opportunities that occur in face-to-face
interactions with other enrolled actuaries. Therefore, no change is
proposed to the current requirement that a formal program must have at
least three individuals in attendance who are engaged in substantive
pension service. Furthermore, the proposed regulations would add a new
requirement that a minimum of one-third of the required total CPE
credits must be in the form of formal programs.
The proposed regulations would also retain current limits on the
maximum number of CPE credits that can be obtained under alternative
CPE programs, such as authoring published articles (25 percent), as a
percentage of total CPE per enrollment cycle. Under the proposed
regulations, however, college courses will no longer be available as an
alternative program for purposes of fulfilling CPE requirements (unless
they meet the requirements of a qualifying program) due to the
practical difficulties in evaluating course curricula and the
qualifications of the instructors. Despite the elimination of the
specific list of conditions that would support a waiver, circumstances
such as extended active military duty will continue to constitute
strong evidence of the type of extraordinary circumstances that would
justify a waiver.
C. Waivers of the CPE Requirements
One comment suggested expanding the list of conditions for which a
waiver from CPE requirements may be granted to include parental leave.
Another comment recommended that applications for a waiver of the CPE
requirements be accepted during the normal enrollment renewal process,
subject to the Joint Board's discretion to accept late filings. A third
comment did not perceive problems with the current waiver process and
standards. There were no other specific recommendations regarding this
issue except in conjunction with proposals regarding changes in
enrollment status.
The Joint Board believes that it is essential for practicing
actuaries to keep their knowledge current, particularly given the
frequent changes in pension law, court decisions, and other factors
that affect an enrolled actuary's practice. Accordingly, and in light
of the expanded varieties of acceptable CPE programs, the proposed
regulations would eliminate the list of reasons for
[[Page 48034]]
which a CPE waiver may be granted and provide instead that a waiver
from the CPE requirements may be granted only under extraordinary
circumstances and only upon submission of evidence that every effort
was made during the entire renewal cycle to complete such requirements.
Despite the elimination of the specific list of conditions that would
support a waiver, circumstances such as extended active military duty
will continue to constitute strong evidence of the type of
extraordinary circumstances that would justify a waiver.
D. Enrollment Status
Several comments were directed to the status for ``inactive
retirement'' which may be elected by an actuary. One comment suggested
that the Joint Board allow for some flexibility in the renewal process
in order to reduce the need for individuals to request inactive
retirement status and to ensure a minimal period of disruption of
actuarial services to plans and employers. For example, it was
recommended that any CPE credit hours completed between December 31 (or
the end of the enrollment period by which CPE credits must be earned
for that period) and the date the application for renewal is filed be
permitted to be used to satisfy the CPE requirement for renewal of
enrollment effective April 1. Thus, the comment stated that an enrolled
actuary who files an application for renewal after March 1 due to
delayed completion of the CPE requirement should be eligible to perform
services as an enrolled actuary 30 days after the application filing
date unless notified otherwise by the Joint Board. However, these
delayed CPE credits would not be permitted to be applied to another
enrollment cycle.
Under the current regulations, an actuary in inactive retirement
status is ineligible to perform services as an enrolled actuary, but
the actuary may be reinstated by completing the ``required continuing
professional education credits for the applicable enrollment cycle''
regardless of how long the actuary was inactive. Several comments
stated that this status, and the requirements for reinstatement, were
unclear. Some comments suggested that inactive retirement status be
available for no more than three consecutive three-year enrollment
cycles, but that if the individual has been retired for less than three
three-year enrollment cycles, the actuary would be allowed to ``back
fill'' any missing CPE requirements.
One comment recommended that the regulations be revised to extend
inactive status to six years (or a maximum of two three-year enrollment
cycles). The comment stated that three years is too short since an
enrolled actuary often leaves the workforce for child-rearing or other
reasons, and should not be discouraged from resuming his/her career.
Another comment recommended that the regulations be clarified to
specify more clearly the CPE requirements for reinstatement as of
various points of time during the following three-year cycle, and the
relationship of those CPE requirements with the requirements for
ongoing renewal after reinstatement. One comment suggested special
catch-up requirements where an individual would have to ``back fill''
any missing CPE requirements (for example, 108 hours of CPE credits
would be required for an actuary who had missed two enrollment renewal
cycles, with 36 credits required for each inactive enrollment cycle
plus 36 credits required for the enrollment cycle immediately preceding
the date on which the individual returns to active status). The comment
suggested that any individual who fails to complete the necessary back
fill would need to follow current reenrollment procedures. The comment
further stated that, depending on the circumstances, a waiver of some
CPE requirements may be permitted for an enrolled actuary going from
inactive to active status.
The Joint Board agrees that the current rules relative to the
different inactive statuses warrant simplification. The proposed
regulations would limit enrollment statuses to only two categories,
``active'' or ``inactive,'' with special provisions for reinstatement
depending on the length of the period during which an enrolled actuary
is in inactive status and for those situations where an actuary's
status is terminated for cause. An enrolled actuary who timely renews
his/her enrollment would be in active status. An enrolled actuary who
fails to meet requirements for timely renewal of enrollment would be in
inactive status. While in inactive status, an enrolled actuary would be
prohibited from performing pension actuarial services under ERISA and
the Code.
The Joint Board also believes that the longer an actuary has been
in inactive status, the less likely it is that he/she has kept up with
current developments or had the current work experience necessary to
competently function as an enrolled actuary. The proposed regulations
would increase the CPE requirements and/or add experience requirements
for reenrollment for actuaries in inactive status, with more stringent
requirements applying to those who have been inactive for a longer
period of time. Under the proposed regulations, an individual who
applies for reenrollment during his or her first inactive enrollment
cycle would need to complete 36 hours of CPE (including CPE credits
from the immediately preceding enrollment cycle) in order to qualify
for reenrollment. An individual who applies during the second inactive
enrollment cycle would need to complete 48 hours of CPE (counting only
those credits earned during the first and second inactive enrollment
cycles) and must also have 18 months of certified responsible pension
actuarial experience since the start of the first inactive cycle. An
individual who applies during the third active enrollment cycle would
need to complete 60 hours of CPE (counting only those credits earned
during the second and third inactive enrollment cycles) and have 18
months of certified responsible pension actuarial experience since the
start of the second inactive cycle. The proposed regulations present
some examples to illustrate these changes.
Furthermore, the proposed regulations would limit the time that an
enrolled actuary can be in inactive status and remain eligible to apply
for reenrollment. If the enrolled actuary does not qualify and apply
for reenrollment after being in inactive status for three enrollment
cycles, he or she would be placed in terminated status and would have
to meet the requirements for initial enrollment (including the
applicable examination requirements) in order to be reinstated as an
enrolled actuary.
Notwithstanding these general rules for reenrollment from inactive
status, any application for reenrollment from termination status due to
disciplinary reasons would be subject to special consideration by the
Executive Director. An individual placed in inactive status prior to
the effective date of the final regulations would be deemed to have
been placed in inactive status on that date and thus considered to be
in his/her first inactive enrollment cycle on that date for purposes of
determining the requirements for a return to active status.
E. Standards of Conduct
One comment states that the Joint Board has not been very active in
investigating and disciplining enrolled actuaries whose performance
does not meet applicable standards. One comment suggested that the
Joint Board consider utilizing the Actuarial Board for Counseling and
Discipline as an independent contractor to investigate
[[Page 48035]]
complaints. Alternatively, it was recommended that the Joint Board
either require an enrolled actuary to become a member of a professional
actuarial organization as a condition of enrollment (thereby subjecting
the member to the Actuarial Code of Professional Conduct (Code of
Conduct) to which all the major actuarial organizations in the U.S. and
Canada subscribe), or incorporate the Code of Conduct into the
regulations.
Another comment stated that, unlike other professionals, an
enrolled actuary is not compelled to operate within certain standards
by the underlying threat that failure to do so will result in the loss
of his/her license to practice in the profession. Even if an enrolled
actuary is a member of an actuarial organization and subject to that
organization's disciplinary procedures, this comment suggested that the
Joint Board not rely on these organizations in this area, but rather
that the Joint Board more actively utilize its current authority under
ERISA to supervise and evaluate the provision of actuarial services and
to discipline enrolled actuaries. This comment also suggested that the
Joint Board periodically publish information regarding the nature and
types of complaints received, the number of actuaries disciplined and
the nature of the discipline. This comment indicated that publicizing
such information would reassure the public that complaints are being
acted upon and encourage compliance with the applicable standards.
Another comment recommended that the Board coordinate with other
actuarial or governmental bodies, for example, the IRS or PBGC, so that
if any other body finds that an enrolled actuary has violated the
standards of conduct, performance or practice relating to the
performance of actuarial services, including all applicable regulations
and revenue rulings, the respective body will refer the offending
individual to the Joint Board for possible suspension or termination of
his/her enrollment.
One comment reiterated a concern that actuaries who do not have
significant credentials in the health tax area should not be encouraged
to engage in unqualified practice under the Code, or in an area where
they do not meet the qualification standards in accordance with the
Code of Conduct. The commentator recommended that the Joint Board
outline those areas where the enrolled actuary may rely on the
expertise of another actuary and any qualifications needed for those
other actuaries as appropriate.
One comment stated that the standards of performance of actuarial
services set forth in current regulations are adequate. The comment
suggested, however, in the event the Board were to decide that these
standards need to be expanded, that any differences from the Code of
Conduct be kept to a minimum or, wherever possible, any expanded
regulatory standards should incorporate the applicable parts of the
Code of Conduct.
In light of the responses to the RFI regarding actuarial standards
of performance, the proposed regulations would clarify existing
provisions in this area and add some new provisions. Specifically, the
proposed regulations would add a new general standard that would
require enrolled actuaries to perform actuarial services in accordance
with all applicable laws and the relevant standards of professional
responsibility and, as under the current regulations, require that
enrolled actuaries not perform any actuarial services where those
services may be used in a fraudulent manner. The proposed regulations
would also provide that an enrolled actuary must report any material
violation of this section by another enrolled actuary to the Executive
Director of the Joint Board. For example, an enrolled actuary that
replaces another enrolled actuary as a plan's actuary and discovers
that the previous actuary had signed a Schedule B that listed plan
contributions that the previous actuary knew had not been made would be
required to report this violation to the Executive Director.
The proposed regulations would also modify the rules regarding
conflicts of interest. The regulations currently provide that in any
situation in which an enrolled actuary has a conflict of interest with
respect to the performance of actuarial services, the actuary shall not
perform such services until full disclosure of the conflict has been
made to the affected parties. The proposed regulations would add that
such disclosure must be made in writing and that the affected parties
must agree in writing to the enrolled actuary performing the services.
The proposed regulations would also provide that the actuary must
reasonably conclude that his or her ability to act impartially is not
impaired by the conflict and the performance of such services is not
prohibited by law.
The current regulations also provide that an enrolled actuary must
exercise due care, skill, prudence, and diligence to ensure that all
actuarial assumptions are reasonable in the aggregate and that all
calculations are accurately carried out. To reflect changes made in the
law made by the Pension Protection Act of 2006, Public Law 109-280, the
proposed regulations would provide that an enrolled actuary must
exercise sufficient due care, diligence, skill, and prudence as is
required to ensure that all actuarial assumptions are reasonable
individually and in combination. The proposed regulations would also
require that all calculations not only be accurately carried out but
also properly documented.
The proposed regulations would also expressly expand the due
diligence requirement into other areas. For example, the proposed
regulations would require that an enrolled actuary must exercise due
diligence in preparing documents to be filed with Federal and State
entities and in determining the correctness of oral and written
representations to those entities and to clients. This section of the
proposed regulations follows section 10.22(a) of the regulations
governing practice before the IRS (Circular 230) except to include
other agencies where enrolled actuaries typically file documents or
make representations in connection with the performance of pension
actuarial services.
The proposed regulations would also include other provisions
similar to those in Circular 230 regarding solicitations of employment.
For example, the current regulations provide that an enrolled actuary
shall not advertise his or her status as an enrolled actuary in any
solicitation related to the performance of actuarial services and shall
not employ or share fees with any individual who so solicits. The
proposed regulations would modify this prohibition by adding a rule
similar to that in section 10.30(a)(1) of Circular 230 by providing
that an enrolled actuary may not use any form of public or private
solicitation containing a false, fraudulent, or misleading claim. Also,
as provided in section 10.30(a)(2) of Circular 230, the proposed
regulations would provide that an enrolled actuary may not make
uninvited solicitations of employment if the solicitation violates
Federal or State law and any lawful solicitations must clearly identify
the solicitation as such and, if applicable, identify the source of the
information used in choosing the recipient of the solicitation.
The proposed regulations would also include provisions similar to
those in Circular 230 regarding the prompt disposition of pending
matters and the return of client records, except the Circular 230 rules
would be modified for purposes of these regulations to reflect the fact
that enrolled actuaries deal with government entities in
[[Page 48036]]
addition to the IRS. Thus, as under section 10.23 of Circular 230, the
proposed regulations would provide that an enrolled actuary may not
unreasonably delay the prompt disposition of any matter before the IRS,
but the proposed regulations would extend the rule for these purposes
to matters before the Department of Labor, the PBGC and other
applicable Federal and State entities. Similarly, the proposed
regulations would adopt provisions similar to those in section 10.27 of
Circular 230 regarding the return and retention of client's records,
but they would define ``records of the client'' for these purposes to
include documents related to legal obligations in addition to Federal
tax obligations. The provisions of these proposed regulations would not
modify the Circular 230 regulations but would apply rules to enrolled
actuaries in addition to those already applicable under Circular 230.
The Joint Board believes that the current structure and procedures
for the disciplining of enrolled actuaries are adequate and consistent
with Federal statutes and so is not proposing any changes to the
existing regulations in this regard. The Joint Board emphasizes that
anyone, including other members of the profession and plan officials
and participants, can make referrals to the Executive Director
regarding any suspicious activity or conduct that may warrant further
investigation or discipline. The Joint Board is also considering in a
separate action amending the application forms for enrollment and
renewal to require additional information that may be relevant to
standards of performance, including any record of violations of the law
or prior misconduct, and requests comments in that regard.
Proposed Effective/Applicability Date
These regulations are proposed to generally apply 30 days after the
date these regulations are published as final regulations in the
Federal Register. However, section 901.11 regarding the enrollment of
actuaries would apply to the enrollment cycle beginning January 1,
2011, and ending December 31, 2013, and to all subsequent enrollment
cycles.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866. Therefore, a regulatory assessment is not required. 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, and therefore
the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply.
This notice of proposed rulemaking will be submitted to the Chief
Counsel for Advocacy of the Small Business Administration for comment
on its impact on small business.
Comments and Requests for Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any written (a signed original and eight
(8) copies) or electronic comments that are submitted timely to the
IRS. The Joint Board specifically requests comments on the clarity of
the proposed regulations and how they may be made easier to understand.
All comments will be available for public inspection and copying. A
public hearing will be scheduled if requested in writing by any person
that timely submits written comments. If a public hearing is scheduled,
notice of the date, time, and place for the public hearing will be
published in the Federal Register.
Drafting Information
The principal author of these regulations is Carolyn Zimmerman, IRS
Employee Plans, Tax Exempt and Government Entities Division. 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.
Proposed Amendments to the Regulations
Accordingly, 20 CFR part 901 is proposed to be 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.
Par. 2. Section 901.0 is amended by revising the second sentence to
read as follows:
Sec. 901.0 Scope.
* * * Subpart A of this part sets forth definitions and eligibility
to perform actuarial services; subpart B of this part sets forth rules
governing the enrollment of actuaries; subpart C of this part sets
forth standards of performance to which enrolled actuaries must adhere;
subpart D of this part sets forth rules applicable to suspension and
termination of enrollment; and subpart E of this part sets forth
general provisions.
Par. 3. Section 901.1 is amended by:
A. Adding new paragraph (d)(5).
B. Revising paragraph (g).
C. Adding new paragraphs (i), (j) and (k).
The revisions and additions read as follows:
Sec. 901.1 Definitions.
* * * * *
(d) * * *
(5) Selection of assumptions.
* * * * *
(g) Enrolled actuary means an individual who has satisfied the
standards and qualifications set forth in this part and who has been
approved by the Joint Board for the Enrollment of Actuaries (the Joint
Board), or its designee, to perform actuarial services required under
ERISA or the regulations.
* * * * *
(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 is
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 three year period from January 1,
2011, to December 31, 2013, and every three-year period thereafter.
Par. 4. Section 901.10 is amended by revising paragraph (a) to read
as follows:
Sec. 901.10 Application for enrollment.
(a) Form. As a requirement for enrollment, an applicant shall file
with the Executive Director of the Joint Board (the Executive Director)
a properly executed application on a form or forms specified by the
Joint Board, and shall agree to comply with these regulations and any
other guidance as required by the Joint Board. A reasonable non-
refundable fee may be charged for each application for enrollment
filed.
* * * * *
[[Page 48037]]
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) introductory text, 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:
Sec. 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. The Executive Director shall maintain rosters of all
actuaries who are duly enrolled under this part and of all individuals
whose enrollment has been suspended or terminated, or who are in
inactive status. The Executive Director may publish any or all of these
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) All enrolled actuaries must file an application for renewal of
enrollment on the prescribed form between October 1, 2010, and March 1,
2011, and between October 1 and March 1 of every third year thereafter.
(2) The effective date of renewal of enrollment for individuals who
file complete renewal applications by March 1 is the April 1
immediately following the date of application. The effective date of
renewal of enrollment for individuals who file complete renewal
applications after March 1 is the date the notice of renewal is mailed
to that individual by the Joint Board.
(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
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 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 matter; the remainder
may be non-core subject matter.
(ii) An individual who receives initial enrollment in 2008 or 2009
must satisfy the following requirements by December 31, 2010: Those
enrolled during 2008 must complete 24 hours of continuing education;
those enrolled during 2009 must complete 12 hours of continuing
education. 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), credit will be awarded for
continuing 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 education requirements until the next
enrollment cycle, but must file a timely application for renewal.
(2) For renewal of enrollment effective April 1, 2014, and every
third year thereafter. (i) A minimum of 36 hours of continuing
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), credit will be
awarded for continuing 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 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
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) As part of the core subject matter required for each
enrollment cycle, an individual must complete a minimum of two hours of
continuing education credit relating to ethical standards.
(f) Qualifying continuing education--(1) In general. To qualify for
continuing education credit an enrolled actuary must complete his/her
hours of continuing 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 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 education credit required for an enrollment
cycle must be obtained by attending in person 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
[[Page 48038]]
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 applicable enrollment cycles. For this
purpose, the applicable enrollment cycles are 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 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 qualified sponsor, within the meaning of
paragraph (f)(3) of this section;
(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 those who have successfully
completed the program; and
(H) Provides a certificate of instruction, within the meaning of
paragraph (f)(3)(v) of this section, to those who have served as
instructors, discussion leaders, or speakers.
(ii) Types of qualifying programs. Qualifying programs may be
formal programs, correspondence or individual study programs, and
teleconferencing:
(A) Formal programs. Formal programs are programs that meet all of
the requirements of paragraph (f)(2)(i) of this section and also
require physical attendance by at least three individuals engaged in
substantive pension service in addition to the instructor, discussion
leader, or speaker.
(B) Correspondence or individual study programs (including audio
and/or video taped programs). Correspondence or individual study
programs are programs completed on an individual basis by the enrolled
actuary. Such programs are qualifying programs if they meet all of the
requirements of paragraph (f)(2)(i) of this section and also provide a
means for measuring completion by the participants (for example, a
written examination).
(C) Teleconferencing. Teleconferencing or other communications
technologies (including webcasting) are qualifying programs if they
meet all of the requirements under paragraph (f)(2)(i) of this section
and either--
(1) Include a sign-on/sign-off capacity or similar technique to
verify attendance; or
(2) Provide a means for measuring completion by the participants
(for example, a written examination).
(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. A sole proprietor shall not be
treated as a qualifying sponsor for purposes of this section.
(ii) Sponsor agreements. Organizations requesting qualifying
sponsor status shall file sponsor agreement requests with the Executive
Director and furnish information in support of such requests 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.
(iii) Sponsor enrollment cycle. Qualifying sponsor agreements will
remain in effect for no more than one sponsor enrollment cycle. The
Executive Director shall publish the names of such sponsors on a
periodic basis.
(A) For sponsor agreements effective on or after January 1, 2008,
and before January 1, 2012, the applicable sponsor enrollment cycle
will end December 31, 2011.
(B) For sponsor agreements effective on or after January 1, 2012,
the applicable sponsor enrollment cycle will be three years and will
begin on January 1 and end on December 31 at the end of the three year
period. Each such three year period is a ``sponsor enrollment cycle.''
The sponsor enrollment cycle is not affected by when during the
enrollment cycle the sponsor agreement became effective. For example,
for sponsor agreements effective on or after January 1, 2012 and before
January 1, 2015, the applicable sponsor enrollment cycle will end
December 31, 2014. The subsequent sponsor enrollment cycle will begin
January 1, 2015, and end December 31, 2017.
(iv) Certificates of completion. Qualifying sponsors shall furnish
to each attendee successfully completing a program presented by such
qualifying sponsor a certificate listing the following information:
(A) The name of the attendee.
(B) The name of the sponsoring organization.
(C) The title, location, and speaker(s) of each session attended.
(D) The dates of the program completed.
(E) The total credit hours claimed and the total core and non-core
credit hours claimed.
(v) Certificates of instruction. Qualifying sponsors 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 sponsoring organization.
(C) The title and location of the program.
(D) The dates of the program.
(E) The total credit hours claimed and the total core and non-core
credit hours claimed for the program.
(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 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 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 education requirements of paragraph (f) of this section.
(ii) The credit for instruction and preparation may not exceed 50
percent of the continuing 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 education credit. A program
[[Page 48039]]
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 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 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 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
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 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 is core or non-core. No credit
may be earned for hours attributable to any content that is neither
core nor non-core.
(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 Sec. 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
education by attending a formal program 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) Qualified sponsors. A qualified
sponsor must maintain records to verify satisfaction of the
requirements of this section. Such records must be retained for a
period of six years following the end of the sponsor enrollment cycle
in which the program is held. In the case of programs of more than one
session, records must be maintained to verify completion of the program
and attendance by each participant at each session of the program.
Copies of any certificates of completion and certificates of
instruction issued to the participants in each program must be
retained.
(2) Enrolled actuaries--(i) Qualifying program credits as student.
To receive continuing education credit for completion of hours of
continuing education credits under paragraph (f) of this section, an
enrolled actuary must retain all certificates of completion evidencing
completion of such hours for the three-year period following the end of
the applicable enrollment cycle.
(ii) Qualifying program credits as teacher or instructor. To
receive continuing 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 three year period following the end of the applicable enrollment
cycle.
(iii) Credit for publications. To receive continuing 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 applicable enrollment
cycle:
(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 claimed and the total core and non-core
credit hours claimed.
(iv) Other credits. To receive continuing 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 applicable enrollment cycle.
(k) Waivers. (1) Waiver from the continuing 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 renewal cycle to complete
such continuing education requirements through any one or more of the
various qualifying programs offered by one or more of the qualified
sponsors.
(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
education requirements within the allotted time, the individual will be
placed on a roster of inactive enrolled individuals.
(4) A request for waiver must be filed no later than the last day
of the renewal application period. Those who are granted waivers are
required to file timely applications for future renewal of enrollment.
[[Page 48040]]
(l) * * * (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) An individual who has not filed a timely
application for renewal of enrollment, who has not made a timely
response to the notice of failure to comply with the renewal
requirements, or who has not satisfied the requirements of eligibility
for renewal will be placed on a roster of inactive enrolled actuaries
for a period up to three enrollment cycles from the date renewal would
have been effective.
(ii) 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.
(iii) 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 evidence of the completion of all
required continuing professional education hours for the enrollment
cycle and 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 and to practice
before the Internal Revenue Service effective with the date the notice
of approval is mailed to that individual by the Joint Board.
(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. The name of such individual
otherwise 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 placed in inactive status prior to the effective date of
these regulations will be deemed to have been placed in inactive status
on the effective date of these regulations.
(6) An individual placed 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
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 education and qualifying experience requirements set forth
in this subsection. Continuing education credit under this subsection
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 education requirements for return to active
enrollment from inactive status. (i) During the first inactive
enrollment cycle: 36 hours of the qualifying continuing education
requirement from the prior enrollment cycle 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
education credit from 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 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 the qualifying experience requirements set forth in Sec.
901.12(b)(1), must be completed since the start of the first inactive
enrollment cycle. Any hours of continuing education credit from 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 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 the qualifying experience requirements set forth in Sec.
901.12(b)(1), must be completed since the start of the second inactive
enrollment cycle. Any hours of continuing education credit from the
second inactive enrollment cycle may be applied in satisfying this
requirement. No hours from 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 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 education. * * *
* * * * *
(n) Verification. The Executive Director or his/her designee may
request and review the continuing 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 qualified
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:
Example 1. (i) Individual E, who was initially enrolled before
January 1, 2008, completes 5 hours of core continuing education
credit and 10 hours of non-core continuing education credit between
January 1, 2011, and December 31, 2013. Accordingly, effective April
1, 2014, E is placed on a 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) E completes 7 hours of core continuing education credit and
14 hours of noncore continuing education credit between January 1,
2014, and May 24, 2016. Because E has completed 12 hours of core
continuing education and 24 hours of non-core continuing education
during the last active enrollment period and the initial period when
on inactive status, E has satisfied the requirements for
reenrollment during the first inactive cycle. Accordingly, E may
file an application for return to active enrollment on May 24, 2016.
If this application is approved, E 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 E used the 21 hours of continuing education credit
earned after January 1, 2014, for return from inactive status, E may
not apply any of these 21 hours of core and non-core continuing
education credits towards the requirements for renewed
[[Page 48041]]
enrollment effective April 1, 2017. Accordingly, E must complete an
additional 36 hours of continuing education (12 core and 24 non-
core) prior to December 31, 2016, to be eligible for renewed
enrollment effective April 1, 2017.
Example 2. (i) The facts are the same as in Example 1 except E
completes 2 hours of core continuing education credit and 8 hours of
non-core continuing education credit between January 1, 2014, and
December 31, 2016. Thus, because E did not fulfill the requirements
for return to active status during his first inactive cycle, E 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, E must
complete an additional 38 hours of continuing 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
responsible pension actuarial experience during the period
subsequent to December 31, 2013.
(iii) Note that the 5 hours of core continuing education credit
and the 10 hours of non-core continuing education credit that E
completes between January 1, 2011, and December 31, 2013, are not
counted toward E's return to active status and are also not taken
into account toward the additional hours of continuing education
credit that E must complete between January 1, 2017, and December
31, 2019, in order to apply for renewal of enrollment effective
April 1, 2020.
Example 3. (i) The facts are the same as in Example 1 except E
completes 2 hours of core continuing education credit and 8 hours of
non-core continuing education credit between January 1, 2014, and
December 31, 2016, and 12 hours of core continuing education credit
and 24 hours of non-core continuing education credit between January
1, 2017, and December 31, 2019. Thus, because E did not fulfill the
requirements for return to active status during his first or second
inactive cycles, E 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, E must
complete an additional 24 hours of continuing 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 responsible pension actuarial experience during the period
subsequent to December 31, 2016.
(iii) Note that the total of 15 hours of continuing education
credit that E completes between January 1, 2011, and December 31,
2013, as well as the 10 hours of continuing education credit between
January 1, 2014, and December 31, 2016, are not counted toward E's
return to active status and are not taken into account toward the
additional hours of continuing education credit that E 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 4. (i) Individual F, who was initially enrolled July 1,
2012, completes 1 hour of core continuing education credit and 2
hours of non-core continuing education credit between January 1,
2012, and December 31, 2013. Accordingly, effective April 1, 2014, F
is placed on a 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 education credit and
4 hours of non-core continuing education credit between January 1,
2014, and October 6, 2014. Because F has not completed the required
6 hours of core and 6 hours of non-core continuing education during
F's initial enrollment cycle, F is not eligible to file an
application for a return to active enrollment on October 6, 2014,
notwithstanding the fact that had F completed such hours between
January 1, 2012, and December 31, 2013, F would have satisfied the
requirements for renewed enrollment effective April 1, 2014.
(iii) Accordingly, F must complete an additional 24 hours of
continuing education (12 hours of core and 12 hours of non-core)
during his/her first inactive enrollment cycle before applying for
renewal of enrollment.
Example 5. The facts are the same as in Example 4 except that F
completes 17 hours of core continuing education credit and 16 hours
of non-core continuing education credit between January 1, 2014, and
February 12, 2015. Accordingly, because as of February 12, 2015, F
satisfied the continuing education requirements as set forth in
paragraph (e)(2) of this section without regard to paragraph
(e)(2)(ii) thereof, F 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), this
section applies to the enrollment cycle beginning January 1, 2008, and
all subsequent enrollment cycles.
Sec. 901.12 [Removed]
Par. 6. Section 901.12 is removed.
Sec. 901.13 [Redesignated as Sec. 901.12]
Par. 7. Section 901.13 is redesignated as Sec. 901.12.
Par 8. Newly redesignated Sec. 910.12 is amended by revising the
section heading and paragraphs (a), (b), (d), and (e).
The revisions read as follows:
Sec. 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, applicants who have successfully
completed an examination pursuant to either paragraph (d)(1)(i) or
(d)(1)(ii) of this section prior to the effective date of these
regulations, will be deemed to have completed 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), and (f).
B. Redesignating paragraphs (g) and (h) as paragraph (k) and (l),
respectively, and adding new paragraphs (g) and (h).
[[Page 48042]]
C. Reserving paragraph (i).
D. Adding new paragraphs (j) and (m).
The revisions and additions read as follows:
Sec. 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 standards of professional
responsibility and ethics for actuarial practice.
(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.
(3) An enrolled actuary, upon learning of another enrolled
actuary's material violation of this section, shall report the
violation to the Executive Director.
* * * * *
(d) Conflicts of interest. In any situation in which an enrolled
actuary has knowledge of an actual or potential conflict of interest
with respect to the performance of actuarial services, he/she shall not
perform such actuarial services unless--
(1) He/she has conducted a good faith evaluation of the
circumstances giving rise to the conflict and reasonably concludes that
his or her ability to act fairly is unimpaired;
(2) The representation by the enrolled actuary is not prohibited by
law; and
(3) Full disclosure of the conflict has been made, in writing, to
all present and known prospective principals whose interest would be
affected by the conflict, including the plan trustees, any named
fiduciary of the plan, the plan administrator thereof and, if the plan
is subject to a collective bargaining agreement, the collective
bargaining representative, and all such principals have expressly
agreed, in writing, to such enrolled actuary performing the actuarial
services.
(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) 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 need only return those records that must
be attached to the client's legally required forms. 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 legal obligations.
(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
[[Page 48043]]
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 legal obligations. 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.
* * * * *
(m) The rules of this section apply to all actuarial services and
related acts performed on or after the date these regulations are
published as final regulations in the Federal Register.
Par. 10. Section 901.31 is amended by revising paragraphs (a) and
(c) introductory text to read as follows:
Sec. 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 Sec. 901.11 or Sec.
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 Sec. 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:
Sec. 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:
Sec. 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:
Sec. 901.72 Additional rules.
The Joint Board may, in notice or other guidance of general
applicability, provide additional rules regarding the enrollment of
actuaries.
Zenaida Samaniego,
Chairman, Joint Board for the Enrollment of Actuaries.
[FR Doc. E9-22454 Filed 9-18-09; 8:45 am]
BILLING CODE 4810-25-P