29. If an actuary recently became a member of one of the five U.S.-based actuarial organizations, when does that actuary need to comply with the requirements of the U.S. Qualification Standards (USQS)? Does continuing education (CE) earned prior to becomi
Question
29. If an actuary recently became a member of one of the five U.S.-based actuarial organizations, when does that actuary need to comply with the requirements of the U.S. Qualification Standards (USQS)? Does continuing education (CE) earned prior to becoming credentialed count toward this requirement?
Once an actuary becomes a member of any of the five U.S.-based actuarial organizations (not just the American Academy of Actuaries), he or she must comply with all of the requirements of the U.S. Qualification Standards before issuing any Statement of Actuarial Opinion (SAO) to be relied upon in the United States. It is wise for candidates to plan ahead when they are close to qualification if they intend to issue SAOs shortly after receiving their credential.
CE earned during a calendar year typically qualifies the actuary for opinions issued during the subsequent calendar year. There are no CE “grace periods” for new members in the USQS. Section 2.2.4 specifies that an actuary may count hours earned before being credentialed, as long as the time was earned since the beginning of the prior calendar year. Section 2.2.2 further allows time spent in the current year to be “carried back” one year to make up for shortfalls, as long as the total 30 hours is earned before issuing an SAO. An example will clarify the implications of this (Sections 2.2.2 and 2.2.4).
An actuary receives his first actuarial practice credential (in this example, becomes an Associate of the Society of Actuaries [ASA]) in July 2014. He meets the basic education and experience requirements to issue an SAO in October 2014. He wants to ensure his compliance with the CE requirement as well.
When calculating his CE hours, he is allowed to count all the hours earned in 2013, and in 2014 up until the date of the October 2014 opinion, in determining his qualification to issue that opinion. This time can be earned before or after his qualification, but not before 2013. As per Section 2.2.7, time spent studying (reasonable allocated time) for relevant actuarial exams can also be included in this count as “Other Activities.” Time that this ASA spends in September 2014 studying for a Fellowship exam can also be counted, even if the studying did not result in a passing grade (Section 2.2.7).
However, any 2014 CE time that the actuary uses to qualify for his 2014 opinion cannot also be used for his 2015 opinions. He will need to earn another 30 hours of CE—normally during the remainder of 2014—to issue opinions in 2015.
Last updated December 2014
CE earned during a calendar year typically qualifies the actuary for opinions issued during the subsequent calendar year. There are no CE “grace periods” for new members in the USQS. Section 2.2.4 specifies that an actuary may count hours earned before being credentialed, as long as the time was earned since the beginning of the prior calendar year. Section 2.2.2 further allows time spent in the current year to be “carried back” one year to make up for shortfalls, as long as the total 30 hours is earned before issuing an SAO. An example will clarify the implications of this (Sections 2.2.2 and 2.2.4).
An actuary receives his first actuarial practice credential (in this example, becomes an Associate of the Society of Actuaries [ASA]) in July 2014. He meets the basic education and experience requirements to issue an SAO in October 2014. He wants to ensure his compliance with the CE requirement as well.
When calculating his CE hours, he is allowed to count all the hours earned in 2013, and in 2014 up until the date of the October 2014 opinion, in determining his qualification to issue that opinion. This time can be earned before or after his qualification, but not before 2013. As per Section 2.2.7, time spent studying (reasonable allocated time) for relevant actuarial exams can also be included in this count as “Other Activities.” Time that this ASA spends in September 2014 studying for a Fellowship exam can also be counted, even if the studying did not result in a passing grade (Section 2.2.7).
However, any 2014 CE time that the actuary uses to qualify for his 2014 opinion cannot also be used for his 2015 opinions. He will need to earn another 30 hours of CE—normally during the remainder of 2014—to issue opinions in 2015.
Last updated December 2014
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