5500 Signed by non-enrolled actuary

[Guest Benefits19103]

A client was informed this morning by the company that performs its actuarial functions for benefit plans that the "enrolled actuary" that signed the client's 5500s for the last few years has been misrepresenting his professional credentials. In fact, this person is not an enrolled actuary.

Has anyone faced this situation before? Does the client need to amend its prior 5500 filings? Are there additional steps the client needs to take?

Thanks in advance

[Peter Gulia]

One imagines that the plan's administrator (usually, the employer) should lawyer-up to protect itself and to pursue the non-actuary and the actuarial company to make good all of the plan's losses and expenses (including expenses of redoing past valuations and annual reports). Doing something before engaging the lawyer and considering her advice risks inappropriate acts that might weaken the protection and recoveries.

[Guest Benefits19103]

Counsel is involved. Aside from pursuing the actuary for civil claims, the question is what the client needs to do from the DOL's perspective.

[Andy the Actuary]

Perhaps it will help if you speak anonymously to the Joint Board as well as the ABCD of the Academy. I seem to recollect an EA some 20 years ago who made up numbers and was disenrolled. The former EA continued to sign Schedule Bs nonetheless.

In this former case and your case, it would appear the letter of the law is that the 5500s were not timely filed. If the pretend EA did only the signing and not the work, then perhaps there's no problems with the Schedule Bs other than the signature is invalid. In such case, as a matter of good faith, you may wish to consider amending the filings with a new EA signature and an attachment that explains the circumstances.

[david rigby]

Good advice from Peter. Make sure your counsel is the one who has the conversations with the "company". Your counsel will likely suggest you engage another actuarial firm as well.