[Federal Register Volume 89, Number 51 (Thursday, March 14, 2024)]
[Proposed Rules]
[Pages 18579-18583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-05240]


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JOINT BOARD FOR THE ENROLLMENT OF ACTUARIES

20 CFR Part 901

[REG-127915-17]
RIN 1545-BQ30


Regulations for Continuing Professional Education Requirements of 
the Joint Board for the Enrollment of Actuaries

AGENCY: Joint Board for the Enrollment of Actuaries.

ACTION: Proposed rule.

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SUMMARY: This document sets forth proposed regulations that would amend 
the continuing professional education requirements for actuaries 
enrolled by the Joint Board for the Enrollment of Actuaries (Joint 
Board). These proposed regulations would remove the physical presence 
requirement for formal continuing professional education programs 
required for active enrolled actuaries and the physical location 
requirement from course certifications. These proposed regulations also 
would modify the continuing professional education requirement for 
certain actuaries who seek to return to active enrollment from inactive 
status due to their failure to timely satisfy the renewal requirements 
in the first enrollment cycle after their initial enrollment cycle. 
Finally, the proposed regulations would add a requirement that 
certificates of instruction for continuing professional education 
courses include the number of hours counted towards the required number 
of hours for formal programs. These proposed regulations solely address 
the enrollment rules of the Joint Board and do not affect pension 
plans, plan participants, or the general public.

DATES: Written or electronic comments and requests for a public hearing 
must be received by April 15, 2024.

ADDRESSES: Commenters are strongly encouraged to submit public comments 
electronically. Submit electronic submissions via the Federal 
eRulemaking Portal at www.regulations.gov (indicate IRS and REG-127915-
17) by following the online instructions for submitting comments. 
Requests for a public hearing must be submitted as prescribed in the 
``Comments and Requests for a Public Hearing'' section. Once submitted 
to the Federal eRulemaking Portal, comments cannot be edited or 
withdrawn. Because the Joint Board's Executive Director office is 
within the IRS Return Preparer Office, the Department of the Treasury 
(the Treasury Department) and the Internal Revenue Service (IRS) will 
publish for public availability any comment, whether submitted 
electronically or on paper, to its public docket. The Treasury 
Department and the IRS are collecting comments on behalf of the Joint 
Board. Send paper submissions to: CC:PA:01:PR (REG-127915-17), Room 
5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Thomas Curtin, Executive Director, 
Joint Board for the Enrollment of Actuaries at (202) 317-3559; 
concerning submission of comments, the public hearing, and the access 
code to attend the hearing by telephone, Vivian Hayes at (202) 317-6901 
(not toll-free numbers) or [email protected] (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    This document sets forth 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 shall, by regulations, establish 
reasonable standards and qualifications for persons performing 
actuarial services with respect to plans to which ERISA applies and, 
upon application by any individual, will enroll such individual if the 
Joint Board finds that such individual satisfies such standards and 
qualifications. The Joint Board's Executive Director and staff are 
located within the IRS's Return Preparer Office, and, accordingly, the 
Treasury Department and the IRS are assisting with the drafting of 
these proposed regulations.
    Section 901.11 of the Joint Board regulations provides enrollment 
procedures for the Joint Board, including continuing professional 
education requirements for enrolled actuaries. Section 901.11(d) 
provides that, to maintain active enrollment to perform actuarial 
services under ERISA, each enrolled actuary is required to periodically 
renew enrollment. Pursuant to section 901.11(d)(1), the process for 
renewing enrollment as an enrolled actuary with the Joint Board occurs 
on a three-year cycle. Part of the renewal process includes a 
certification that the actuary satisfied a continuing professional 
education requirement. Pursuant to section 901.11(e)(2)(i), 36 hours of 
continuing professional education credits are required within the 
three-year cycle for every enrolled

[[Page 18580]]

actuary. For newly enrolled actuaries, however, the 36-hour requirement 
is reduced pursuant to section 901.11(e)(2)(ii) or (iii) depending on 
the particular year of the three-year cycle in which the actuary 
enrolled. Under these rules, those who initially enroll during the 
first year of an enrollment cycle must complete 24 hours of continuing 
professional education; those who enroll during the second year of an 
enrollment cycle must complete 12 hours of continuing professional 
education; and those who enroll during the third year of an enrollment 
cycle are exempt from the continuing professional education 
requirements until the next enrollment cycle.
    Pursuant to section 901.11(f)(1), in order to earn their required 
continuing professional education credits, enrolled actuaries must 
attend qualifying programs (as defined in section 901.11(f)(2)) 
conducted by qualifying sponsors (as defined in section 901.11(f)(3)) 
and at least a third of the credits must be earned by attending a 
formal program (as defined in section 901.11(f)(2)(ii)). Formal 
programs under section 901.11(f)(2) are required to include an in-
person element, and special rules apply depending on whether the 
enrolled actuary is participating in the program as a participant or as 
an instructor (physical presence requirement). A program participant 
must simultaneously participate in the program in the same physical 
location with at least two other participants engaged in substantive 
pension service, and the participants must have the opportunity to 
interact with a qualified individual who serves as an instructor 
(whether or not in the same physical location). Instructors, however, 
must be in the physical presence of at least three other individuals 
engaged in substantive pension service.
    Section 901.11(f)(3) defines qualifying sponsors as organizations 
recognized by the Executive Director of the Joint Board whose programs 
offer opportunities for continuing professional education. Pursuant to 
section 901.11(f)(3)(iv), upon verification of successful completion of 
a qualifying program, the program's qualifying sponsor must furnish 
each individual who successfully completed the qualifying program with 
a certificate listing certain information, including the location of 
the program. Section 901.11(f)(3)(v) further requires that the 
program's qualifying sponsor must furnish to each instructor, 
discussion leader, or speaker a certificate listing certain 
information, including the location of the program.
    An actuary who fails to timely satisfy the requirements for renewal 
of enrollment is placed in inactive status pursuant to section 
901.11(l)(4). Section 901.11(l)(7)(i) specifies the continuing 
professional education requirements for actuaries who seek to return to 
active enrollment after being placed in inactive status. Currently, 
under section 901.11(l)(7), all actuaries in their first inactive 
enrollment cycle, including newly enrolled actuaries, must complete 36 
hours of qualifying continuing professional education in order to 
return to active status. That is, section 901.11(l)(7)(i) disregards 
the special rules under section 901.11(e)(2)(ii) or (iii) that prorate 
the number of hours of continuing professional education required for 
newly enrolled actuaries based on the year of their initial enrollment.
    Prior to the commencement of the COVID-19 pandemic, some interested 
parties had sent comments to the Joint Board expressing the view that 
the physical presence requirement is outdated and imposes a burden on 
actuaries who are unable, for health, safety, or other reasons, to meet 
the physical presence requirement. Once the COVID-19 pandemic 
commenced, qualifying sponsors were prevented from conducting in-person 
continuing professional education programs. As a result, and consistent 
with its waiver authority under section 901.11(k), the Joint Board 
announced in August of 2020, via a news release (IR-2020-177, August 
10, 2020), and notified all enrolled actuaries and qualifying sponsors, 
that the Joint Board was waiving the physical presence requirement for 
continuing professional education programs through the end of the 
enrollment cycle ending on December 31, 2022. The Joint Board announced 
in March of 2024, and notified all enrolled actuaries and qualifying 
sponsors, that the waiver was being extended. The extended waiver 
applies to continuing professional education credits earned for 
programs held during the period from January 1, 2023, through the date 
that is 30 days after the publication of the Treasury decision 
finalizing these proposed regulations.

Explanation of Provisions

A. Modification of Definition of Formal Program

    This document sets forth proposed regulations that would amend 
section 901.11 of the Joint Board regulations to remove the physical 
presence requirement from the definition of a formal program. After 
considering the input of interested parties and taking into account the 
successful operation of the continuing professional education programs 
that were conducted during the COVID-19 pandemic in 2020, 2021, and 
2022 without a physical presence requirement, the Joint Board is 
proposing to permanently eliminate the physical presence requirement 
for formal continuing professional education programs for active 
enrolled actuaries and also to permit educational materials to be 
delivered in an electronic format.
    In eliminating the physical presence requirement, these proposed 
regulations would remove the requirement that the instructor of a 
qualifying program be in the physical presence of the program 
participants in order for the instructor to receive formal credit and 
the requirement that a program participant be in the same physical 
location as other program participants in order for the participant to 
receive formal credit. These proposed regulations would retain the 
requirement that the participants have an opportunity for real-time 
interaction with an instructor to receive formal credit. These proposed 
regulations would further provide that any materials (for example, 
outlines, or textbooks) for the qualifying program still need to be 
written and made available to the participant, but need not be provided 
in physical paper-based form; rather, they could be provided by any 
other mode of conveying written educational material.

B. Amendment to the Additional Continuing Professional Education 
Requirement for Return to Active Enrollment From Inactive Status

    These proposed regulations would change the requirement in section 
901.11(l)(7)(i) that an enrolled actuary who fails to satisfy the 
renewal requirements by the deadline set forth in section 901.11(d) 
must complete 36 hours of continuing professional education, if the 
failure to timely renew is for the enrollment cycle immediately 
following the actuary's initial enrollment cycle. Specifically, these 
proposed regulations would add an exception to the rule regarding the 
number of continuing professional education hours required to renew 
enrollment in this case. Under this exception, actuaries who fail to 
timely renew their enrollment for the enrollment cycle immediately 
following their initial enrollment cycle could adjust the requirement 
to complete 36 hours of continuing professional education based on the 
year of the prior cycle in which they initially enrolled pursuant to 
section 901.11(e)(2)(ii) or

[[Page 18581]]

(iii). These proposed regulations provide an example that illustrates 
the proposed change to the rule.

C. Amendment to the Information Requirement for Certificates of 
Completion and Certificates of Instruction

    These proposed regulations would eliminate the requirement that a 
certificate of completion and a certificate of instruction list the 
location of the training. These proposed regulations would also add a 
requirement that the certificate of instruction include the number of 
hours that are counted toward the formal program requirement in section 
901.11(g)(2).

Effective Date

    The regulations will not become effective until the date that is 30 
days after the date of publication in the Federal Register of the 
Treasury decision finalizing these proposed regulations. For a course 
conducted on or after January 1, 2023, but prior to the date that is 30 
days after the date the final regulations are published in the Federal 
Register, the March 2024 waiver described in the Background section of 
this preamble will apply with respect to the physical presence 
requirement.

Special Analyses

    It is hereby certified that these regulations would not have a 
significant economic impact on a substantial number of small entities 
within the meaning of section 601(6) of the Regulatory Flexibility Act 
(5 U.S.C. chapter 6). The Joint Board believes that these proposed 
changes would primarily affect individual actuaries enrolled by the 
Joint Board and providers of their educational programs. These 
amendments would update the regulations in light of the workplace 
technology (including newly developed technology for delivering 
education and educational materials) that became more prevalent in 
response to the COVID-19 pandemic and that continues to develop in ways 
that make the physical presence requirement unnecessary. In addition, 
these amendments to the regulations would revise the continuing 
professional education requirements for actuaries returning from 
inactive status and provide an exception to the 36-hour continuing 
professional education requirement for recently enrolled actuaries who 
fail to timely satisfy the requirements for renewal of enrollment. 
Notwithstanding this certification, the Joint Board invites comments 
from the public about the impact of these proposed regulations on small 
entities.
    This rule has been designated as not significant for purposes of 
Executive Order 12866, as amended.

Paperwork Reduction Act

    Any collection of information under these proposed regulations has 
been reviewed and approved by the Office of Management and Budget in 
accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3507) under control number 1545-0951. The regulations (20 CFR 
901) require that records be kept that verify satisfaction of 
requirements and requirements for certificates of completion of 
continuing education. It is estimated that this recordkeeping will take 
.25 hours and that there are 4,100 recordkeepers annually for a total 
of 1,000 burden hours. Comments concerning the collection of 
information and the accuracy of estimated average annual burden and 
suggestions for reducing this burden should be sent to the Office of 
Management and Budget, Attn: Desk Officer for the Department of the 
Treasury, Office of Information and Regulatory Affairs, Washington, DC 
20503, with copies to the Internal Revenue Service, IRS Reports 
Clearance Officer, SE:W:CAR:MP:T:T:SP, Washington, DC 20224. Comments 
on the burden associated with this collection of information must be 
received by May 13, 2024.

Comments and Requests for a Public Hearing

    Before these proposed amendments to the regulations are adopted as 
final regulations, consideration will be given to comments that are 
submitted timely to the Joint Board as prescribed in the preamble under 
the ADDRESSES section. The Joint Board requests comments on all aspects 
of these proposed regulations. Any comments submitted will be made 
available at www.regulations.gov or upon request.
    A public hearing will be scheduled if requested in writing by any 
person who timely submits electronic or written comments. Requests for 
a public hearing are also encouraged to be made electronically by 
sending an email to [email protected]. If a public hearing is 
scheduled, notice of the date and time for the public hearing will be 
published in the Federal Register.

Drafting Information

    The principal author of these regulations is Tom Morgan of the 
Office of Associate Chief Counsel (Employee Benefits, Exempt 
Organizations, and Employment Taxes). Other personnel from the Treasury 
Department, the IRS, and the Joint Board also participated in the 
development of these regulations.

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

0
Paragraph 1. The authority citation for part 901 continues to read as 
follows:

    Authority:  Sec. 3042, subtitle C, title 3, Employee Retirement 
Income Security Act of 1974. (88 Stat. 1002, 29 U.S.C. 1241, 1242) * 
* *

0
Par. 2. Section 901.11 is amended by:
0
1. Revising paragraphs (f)(2)(i)(D) and (f)(2)(ii)(A);
0
2. In paragraph (f)(2)(ii)(B), by removing ``and the instructor is in 
the physical presence of at least three other individuals'';
0
3. In paragraph (f)(3)(iv)(C), by removing ``, location,'';
0
4. In paragraph (f)(3)(v)(C), by removing ``and location'';
0
5. Revising paragraph (f)(3)(v)(F);
0
6. Revising paragraph (I)(7)(i); and
0
7. Revising paragraph (o).
    The revisions read as follows:


Sec.  901.11  Enrollment procedures.

* * * * *
    (f) * * *
    (2) * * *
    (i) * * *
    (D) Includes outlines, textbooks, and other written educational 
material;
* * * * *
    (ii) * * *
    (A) Participants. Formal programs are programs that meet all of the 
requirements of this paragraph (f)(2)(ii) and paragraph (f)(2)(i) of 
this section. Whether a program qualifies as a formal program is 
determined on a participant-by-participant basis. A qualifying program 
qualifies as a formal program with respect to a participant if the 
participant has the opportunity for real-time interaction with another 
individual qualified with respect to the course content who serves as 
an instructor, and at least three individuals engaged in substantive 
pension service simultaneously participate in the

[[Page 18582]]

program in addition to the instructor. A qualifying program that is 
pre-recorded will qualify as a formal program with respect to a 
participant if the participant has the opportunity for real-time 
interaction immediately after the pre-recorded program with a qualified 
individual who serves as the instructor or discussion leader and is 
available to answer questions, and at least three individuals engaged 
in substantive pension service simultaneously participate in the entire 
program (including the discussion time immediately following the pre-
recorded program) in addition to the instructor or discussion leader.
* * * * *
    (3) * * *
    (v) * * *
    (F) Whether or not the program is a formal program with respect to 
the instructor and the number of hours counted toward the formal 
program requirement.
* * * * *
    (l) * * *
    (7) * * *
    (i) During the first inactive enrollment cycle, 36 hours of 
qualifying continuing professional education as set forth in paragraph 
(e)(2) of this section, without regard to the reduction in hours 
provided to newly enrolled actuaries set forth in paragraph (e)(2)(ii) 
or (e)(2)(iii) of this section must be completed, except with regard to 
actuaries whose first inactive cycle immediately follows the initial 
enrollment cycle, in which case, paragraph (e)(2)(ii) or (e)(2)(iii) of 
this section may be applied. Any hours of continuing professional 
education credit earned during the immediately prior enrollment cycle 
may be applied in satisfying this requirement.
* * * * *
    (o) Examples. The following examples illustrate the application of 
the rules of paragraph (l)(7) of this section and the effective date of 
an enrolled actuary's renewal:
    (1) Example 1. Individual E, who was initially enrolled before 
January 1, 2008, completes 12 hours of core continuing professional 
education credit and 24 hours of non-core continuing professional 
education credit between January 1, 2011, and December 31, 2013. E 
files a complete application for reenrollment on February 28, 2014. E's 
reenrollment is effective as of April 1, 2014.
    (2) Example 2. Individual F, who was initially enrolled before 
January 1, 2008, also completes 12 hours of core continuing 
professional education credit and 24 hours of non-core continuing 
professional education credit between January 1, 2011, and December 31, 
2013. However, F does not file an application for reenrollment until 
March 20, 2014. The Joint Board notifies F that it has granted F's 
application on June 25, 2014. Accordingly, effective April 1, 2014, F 
is placed on the roster of inactive enrolled actuaries. F returns to 
active status as of June 25, 2014. F is ineligible to perform pension 
actuarial services as an enrolled actuary under ERISA and the Internal 
Revenue Code from April 1 through June 24, 2014.
    (3) Example 3. Individual G, who was initially enrolled before 
January 1, 2008, completes only 8 hours of core continuing professional 
education credit and 24 hours of non-core continuing professional 
education credit between January 1, 2011, and December 31, 2013. G 
completes another 6 hours of core continuing professional education on 
January 15, 2014, and files an application for return to active status 
on January 20, 2014. G's application shows the timely completion of 32 
hours of continuing professional education plus the additional 4 hours 
of continuing professional education earned after the end of the 
enrollment cycle. The Joint Board notifies G that it has granted the 
application on April 20, 2014. Accordingly, effective April 1, 2014, G 
is placed on the roster of inactive enrolled actuaries. G returns to 
active status as of April 20, 2014. G is ineligible to perform pension 
actuarial services as an enrolled actuary under ERISA and the Internal 
Revenue Code from April 1 through April 19, 2014. Of the 6 hours of 
continuing professional education earned by G on January 15, 2014, only 
2 hours may be applied to the enrollment cycle that ends December 31, 
2016.
    (4) Example 4. (i) Individual H, who was initially enrolled before 
January 1, 2008, completes 5 hours of core continuing professional 
education credit and 10 hours of non-core continuing professional 
education credit between January 1, 2011, and December 31, 2013. 
Accordingly, effective April 1, 2014, H is placed on the roster of 
inactive enrolled actuaries and is ineligible to perform pension 
actuarial services as an enrolled actuary under ERISA and the Internal 
Revenue Code.
    (ii) H completes 7 hours of core continuing professional education 
credit and 14 hours of noncore continuing professional education credit 
between January 1, 2014, and May 24, 2016. Because H has completed 12 
hours of core continuing professional education and 24 hours of non-
core continuing professional education during the last active 
enrollment period and the initial period when on inactive status, H has 
satisfied the requirements for reenrollment during the first inactive 
cycle. Accordingly, H may file an application for return to active 
enrollment on May 24, 2016. If this application is approved, H will be 
eligible to perform pension actuarial services as an enrolled actuary 
under ERISA and the Internal Revenue Code, effective with the date of 
such approval.
    (iii) Because H used the 21 hours of continuing professional 
education credit earned after January 1, 2014, for return from inactive 
status, H may not apply any of these 21 hours of core and non-core 
continuing professional education credits towards the requirements for 
renewed enrollment effective April 1, 2017. Accordingly, H must 
complete an additional 36 hours of continuing professional education 
(12 core and 24 non-core) prior to December 31, 2016, to be eligible 
for renewed enrollment effective April 1, 2017.
    (5) Example 5. (i) The facts are the same as in example 4 in 
paragraph (o)(4) of this section except H completes 2 hours of core 
continuing professional education credit and 8 hours of non-core 
continuing professional education credit between January 1, 2014, and 
December 31, 2016. Thus, because H did not fulfill the requirements for 
return to active status during his first inactive cycle, H must satisfy 
the requirements of paragraph (l)(7)(ii) of this section in order to 
return to active status.
    (ii) Accordingly, in order to be eligible to file an application 
for return to active status on or before December 31, 2019, H must 
complete an additional 38 hours of continuing professional education 
credit (of which at least 14 hours must consist of core subject matter) 
between January 1, 2017, and December 31, 2019, and have 18 months of 
certified responsible pension actuarial experience during the period 
beginning on January 1, 2014.
    (iii) Note that the 5 hours of core continuing professional 
education credit and the 10 hours of non-core continuing professional 
education credit that H completes between January 1, 2011, and December 
31, 2013, are not counted toward H's return to active status and are 
also not taken into account toward the additional hours of continuing 
professional education credit that H must complete between January 1, 
2017, and December 31, 2019, in order to apply for renewal of 
enrollment effective April 1, 2020.
    (6) Example 6. (i) The facts are the same as in example 4 in 
paragraph (o)(4) of this section except H completes 2 hours of core 
continuing professional education credit and 8 hours of non-core 
continuing professional education

[[Page 18583]]

credit between January 1, 2014, and December 31, 2016, and 12 hours of 
core continuing professional education credit and 24 hours of non-core 
continuing professional education credit between January 1, 2017, and 
December 31, 2019. Thus, because H did not fulfill the requirements for 
return to active status during his first or second inactive cycles, H 
must satisfy the requirements of paragraph (l)(7)(iii) of this section 
in order to return to active status.
    (ii) Accordingly, in order to be eligible to file an application 
for return to active status on or before December 31, 2022, H must 
complete an additional 24 hours of continuing professional education 
credit (of which, at least 8 hours must consist of core subject matter) 
between January 1, 2020 and December 31, 2022, and have at least 18 
months of certified responsible pension actuarial experience during the 
period beginning on January 1, 2017.
    (iii) Note that the total of 15 hours of continuing professional 
education credit that H completes between January 1, 2011, and December 
31, 2013, as well as the 10 hours of continuing professional education 
credit between January 1, 2014, and December 31, 2016, are not counted 
toward H's return to active status and are not taken into account 
toward the additional hours of continuing professional education credit 
that H must complete between January 1, 2020, and December 31, 2022, in 
order to be eligible to file an application for renewal of enrollment 
active status effective April 1, 2023.
    (7) Example 7. (i) Individual J, who was initially enrolled July 1, 
2012, completes 1 hour of core continuing professional education credit 
and 2 hours of non-core continuing professional education credit 
between January 1, 2012, and December 31, 2013. Accordingly, effective 
April 1, 2014, J is placed on the roster of inactive enrolled actuaries 
and is ineligible to perform pension actuarial services as an enrolled 
actuary under ERISA and the Internal Revenue Code.
    (ii) J completes 5 hours of core continuing professional education 
credit and 4 hours of non-core continuing professional education credit 
between January 1, 2014, and October 6, 2014. Because J did not 
complete the required 12 hours of continuing professional education (of 
which at least 6 hours must consist of core subject matter) during J's 
initial enrollment cycle, J is not eligible to file an application for 
a return to active enrollment on October 6, 2014, notwithstanding the 
fact that had J completed such hours between January 1, 2012, and 
December 31, 2013, J would have satisfied the requirements for renewed 
enrollment effective April 1, 2014.
    (iii) Accordingly, J must complete an additional 24 hours of 
continuing professional education (of which at least 12 hours must 
consist of core subject matter) during his/her first inactive 
enrollment cycle before applying for renewal of enrollment.
    (8) Example 8. The facts are the same as in example 7 in paragraph 
(o)(7) of this section except that J completes 17 hours of core 
continuing professional education credit and 16 hours of non-core 
continuing professional education credit between January 1, 2014, and 
February 12, 2015. Accordingly, because as of February 12, 2015, J 
satisfied the continuing professional education requirements as set 
forth in paragraph (e)(2) of this section without regard to paragraph 
(e)(2)(ii) thereof, J may file an application for return to active 
enrollment status on February 12, 2015.
    (9) Example 9. Individual K was initially enrolled on July 1, 2024, 
in the second year of the three-year enrollment cycle ending December 
31, 2025. K satisfied all continuing professional education 
requirements during the cycle. K fails to timely file for renewal for 
the enrollment cycle beginning January 1, 2026, and instead files on 
May 1, 2026, which is after the March 1, 2026, deadline for filing to 
renew enrollment. Therefore, pursuant to paragraph (l)(4)(i) of this 
section, K is placed in inactive status. Under paragraph (e)(2)(ii) of 
this section, K, who was initially enrolled in the second year of an 
enrollment cycle, was required to complete 12 hours of continuing 
professional education in order to satisfy the continuing professional 
education requirement to renew after K's initial enrollment. Under 
paragraph (l)(7)(i) of this section, because K was placed on inactive 
status for the enrollment cycle immediately following K's initial 
enrollment cycle, K may apply the 12 hours of continuing professional 
education credits that K earned during the prior enrollment cycle for 
the purpose of returning to active status. K does not need to earn any 
additional continuing professional education credits in order to return 
to active status. Once K returns to active status for the enrollment 
cycle beginning on January 1, 2026, K will be required to earn the full 
36 hours of continuing professional education credits during that cycle 
for renewal for the enrollment cycle beginning January 1, 2029.
* * * * *

Chet Andrzejewski,
Chair, Joint Board for the Enrollment of Actuaries.
[FR Doc. 2024-05240 Filed 3-13-24; 8:45 am]
BILLING CODE 4830-01-P