Final JBEA regulations

Cash balance plans and defined benefit plans are generally required to have an enrolled actuary sign the Form 5500 Schedule SB annually. The enrolled actuary certifies that the plan has met its minimum funding requirements and the plan’s adjusted funding target attainment percentage.

On May 2, 2011 new regulations issued by the Joint Board for Enrollment of Actuaries (JBEA) become effective for enrolled actuaries. There are changes to the continuing education requirements and standards of practice. Karen Smith of Nova 401(k) Associates authored an ASPPA asap concerning these changes. The key changes include:
• Enrolled actuaries will be required to complete fewer hours of core credit.
• Enrolled actuaries will be required to complete ethics continuing education.
• Enrolled actuaries must receive at least 1/3 of their continuing education from formal programs.
• The circumstances under which an enrolled actuary may receive a waiver of the continuing education requirements are more limited.
• The final regulations have provisions similar to Circular 230 with respect to return of records and conflict of interests.
• The final regulations provide that an enrolled actuary may not unduly delay proceedings with the IRS, PBGC or DOL.