Becoming a retirement actuary in the US involves passing five actuarial exams, completing the Validation of Educational Experience, and obtaining associate member status with the Society of Actuaries. The final step is becoming a registered actuary.
The path to becoming a retirement actuary in the United States requires long hours of study and the successful completion of several exams. Many actuaries begin their studies with a four-year degree in business, economics or actuarial science. A degree is not required, however, an in-depth knowledge of advanced mathematics is required to pass the exams. All actuaries, regardless of which career they pursue, will undergo five actuarial exams during the early part of their career. Upon completion of these five exams, those wishing to become retirement actuaries will join the Society of Actuaries (SOA) and complete their suite of exams.
Those wishing to become pension actuaries face their first five exams, which consist of two-and-a-half to three-and-a-half-hour sessions. They are overseen by preliminary actuarial examinations, a joint operation between SOA and the Actuarial Society of Occurrences (CAS). The first exam that all actuaries face focuses on the laws of probability. Financial Mathematics and Financial Economics make up the second and third exams, which cover topics such as calculus, probability, interest rate models, simulation, and risk management. The remaining two exams cover statistics, life contingencies, and actuarial models.
Upon successful completion of the first five exams, the next step required to become a pension actuary is the Validation of Educational Experience (VEE). Candidates must demonstrate knowledge in introductory economics, applied statistics and corporate finance. This knowledge can be verified by documenting the completion of each course at the college level, earning a grade of B- or better. Alternatively, candidates must pass a standardized test on each topic.
Upon completion of the VEE, those wishing to become a pension actuary must obtain associate member status with SOA. This requires successful completion of the Fundamentals of Actuarial Practice e-learning course, an exam with eight lessons and two exams. While five paths are available to fulfill this requirement, those who wish to become pension actuaries will choose the retirement benefits path. Topics include retirement benefit design, financial and health economics, social insurance, and investment strategy.
The last step in becoming a pension actuary is to become what is known as a registered actuary. This position requires a license issued by the Joint Board of the Treasury Department and the Department of Labor. Successful completion of two exams is required along with excellent performance in the actuarial field. Registered actuaries work for human resource consulting firms, law firms, government organizations and other financial institutions.
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