The Joint Board for Enrollment of Actuaries (JBEA) on March 13, 2024 announced proposed regulations that not only would retroactively extend the temporary waiver of its physical presence requirement for continuing professional education (CPE) programs—they also would eliminate the requirement altogether.
“Regulations for Continuing Professional Education Requirements of the Joint Board for the Enrollment of Actuaries,” the proposed regulations, would extend the temporary waiver until the date the proposed regulations are finalized. The extended waiver would apply retroactively; it would apply to CPE credits earned for programs held during the period from Jan. 1, 2023, through 30 days after the publication of the Treasury decision finalizing these proposed regulations.
The Initial Waiver
The JBEA on Aug. 10, 2020, issued a notice to all qualifying sponsors of CPE programs for enrolled actuaries of a temporary waiver of the “physical presence” requirement.
The JBEA did so in recognition of “the professional hardships created by the COVID-19 pandemic, specifically those health concerns involved in travelling to and participating in gatherings in close contact with other individuals.” Its action granted a temporary waiver from the “physical presence” requirement for formal programs under 20 CFR 901.11(f)(2)(ii), and it applied to all enrolled actuaries—whether in active or inactive status—who earned CPE credit during the enrollment cycle that began on Jan. 1, 2020 and ended on Dec. 31, 2022.
Without that waiver, an enrolled actuary earning credit hours for a formal program would need to do so while being in the same physical location with at least two other participants engaged in substantive pension service.
“Based on feedback from our members, the temporary waiver of the in-person requirement that was first announced during the pandemic made a lot of sense,” says Allison Wielobob, General Counsel of the American Retirement Association. “Indeed,” she continues, “many took advantage of the virtual CE offered at that time.”
What the New Proposal Would Do
The new proposed regulations would apply to CPE credits earned for programs held during the period from Jan. 1, 2023, through the date that is 30 days after the publication of the Treasury decision finalizing these proposed regulations.
The extended—a.k.a. permanent—waiver of the “physical presence” requirement would apply to active enrolled actuaries. Said Wielobob, “Removing the physical presence requirement permanently will make life easier for many actuaries.
However, even making the waiver permanent may not spell the end of in-person activity. Says Wielobob, “I also know that many professionals—actuaries included—value opportunities to gather with colleagues in-person. And those in-person interactions cannot be replicated virtually and assorted meetups will continue.”
These proposed regulations also would:
- modify the CPE 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;
- eliminate the requirement that a certificate of completion and a certificate of instruction list the location of the training;
- permit educational materials to be delivered in an electronic format;
- retain the requirement that the participants have an opportunity for real-time interaction with an instructor to receive formal credit; and
- 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.
All other CPE requirements would remain unchanged. Enrolled actuaries would still be required to earn the same number of credit hours under formal programs that would otherwise be required. The other requirements for a formal program also continue to apply.
Publication
The proposed rule is set to appear in the Federal Register on March 14, 2024.
Comments Welcome
Written or electronic comments will be accepted by the Treasury and the IRS for 30 days after the proposed regulations appear in the Federal Register.
Comments can be submitted electronically via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG-127915-17).
Comments also can be submitted on paper; those are to be sent to: CC:PA:01:PR (REG-127915-17), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, D.C. 20044.
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 them.
For a course conducted on or after Jan. 1, 2023, but before the date that is 30 days after the date the final regulations are published in the Federal Register, the March 2024 waiver.
About the JBEA Rules
Under the JBEA rules, explains Wielobob, enrolled actuaries must complete 36 qualifying CE hours over a three-year period, triennially. As with the qualification standards, a qualifying hour of CE is 50 minutes. The JBEA must approve all organizations providing CE programs—including the American Society of Enrolled Actuaries (ASEA).
Of the 36 qualifying hours, 18 must be spent on “core” subject matter-content that’s integral and necessary for the satisfactory performance of pension actuarial services. Programs that explain the calculations and consequences of issuing an adjusted funding target attainment percentage (AFTAP), for example, are considered core. Non-core courses cover topics that enhance an enrolled actuary’s knowledge, including courses on economics, finance, investments, computer programming, and risk theory. Of the 18 core hours, two must be focused on ethical standards.
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