Nobody Is Complaining About Enrolled Actuaries

The 2015 Enrolled Actuaries meeting is underway and there promises to be a lot of discussion of public pensions.  Three of the four actuaries on the New Jersey study commission are in attendance and according to an nj.com story their work is not done as they have now been tasked with implementing their plan.

More information as it becomes available but first, in the Professional Standards/Ethical Dilemmas Seminar that kicked us off Pat McDonough of the Joint Board updated us on the complaints received against Enrolled Actuaries.

There are none.

Whereas 10 years ago the Joint Board was getting two to three complaints monthly against Enrolled Actuaries there are currently no open cases and there have been no complaints for two years.

As explained by Mr. McDonough complaints arise from three sources:

  • IRS referrals from audits
  • Client complaints against their actuaries
  • Seeing if 300 EAs, chosen at random, filed their income tax returns

There could be several reasons for the lack of complaints:

  • more concrete yet broader funding rules;
  • fewer defined benefit plans;
  • more remunerative avenues (ie. lawsuits); or
  • the EAs who have survived are the better ones.

In any case, I’m not complaining.

 

12 responses to this post.

  1. Posted by Anonymous on April 12, 2015 at 11:38 pm

    TL and Norcross perfect together.

    Reply

  2. Posted by Anonymous on April 13, 2015 at 12:31 am

    bwahahahahahahah, hit a sore spot eh? How is old George doing? Be careful the ASPCA might investigate, you cant treat animals as poorly as you treat people.

    Reply

  3. No one is going to blame the actuaries for providing the findings that they were paid to find. As for those who should be complaining, they still have no idea what went on, because everyone who already knows has an incentive to hush it up.

    Whether your solution is to screw current and future taxpayers to make up for underfunding by past taxpayers, or to screw recent and future public employees to make up for deals to benefit those cashing in and moving out, you don’t want too much discussion of Generation Greed benefitting then and younger generations screwed now.

    No matter how fierce the political battle over who the victim should be, none of those in it is willing to step out of that Omertà.

    Reply

  4. Posted by Jim Palermo on April 13, 2015 at 12:40 pm

    Is the Joint Board the only place a complaint against an Enrolled Actuary would be filed?

    Reply

    • Posted by Mitchell Serota on April 13, 2015 at 5:17 pm

      The Joint Board is being sidelined by the Actuarial Board for Counseling and Discipline, which is set up specifically for handling complaints. Moreover, if the actuary in question is working on a public plan, the Joint Board has absolutely no jurisdiction.

      Reply

      • Posted by Tough Love on April 13, 2015 at 6:01 pm

        Is that true is the actuary in question is not just an Enrolled Actuary, but also a member of the American Academy of Actuaries ?

        Reply

        • Posted by Mitchell Serota on April 14, 2015 at 1:23 pm

          I am not referring to any particular actuary, just a theoretical case. The ABCD is reviewing several cases of members of the AAA who are also Enrolled. But the point is that a public plan actuary can be held accountable by the AAA, but not by the Joint Board. And public reprimands and suspensions by the AAA are as public as anything the Joint Board would issue.

          Reply

    • Bottom line is that Joint Board action can scare people since for most actuaries a 6 month suspension would destroy them plus it’s printed in the federal register so it’s public. Not quite the same sting if you were kicked out of ASPPA.

      Reply

  5. Posted by PatB on April 14, 2015 at 12:01 am

    I was curious about the qualifications needed to be an EA and it seems that you only need to pass the certification exam- no degree needed! Is this true? If so, are there a lot of less educated actuaries out there who could be easily intimidated or bought off by smarter interests?

    Reply

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