TIA’s EA Exam 2, Segment B Blog

The videos have been added for IRC Section 417(e). This topic is on both the EA-2A syllabus and the EA-2B syllabus. In addition, the videos with the exam problem solutions for the PBGC Guaranteed Benefits topic have been added.

The videos have been added for IRC Section 436, which was added to EA-2B syllabus for 2008. In addition, the videos with the exam problem solutions for IRC 411 and IRC 417 have been added.

The solutions to the prior exam problems on IRC 401(a)(4) non-discrimination testing have been uploaded.

The solutions to the prior exam problems on IRC 401(l) safe harbor plans and IRC 410(b) Coverage testing have been uploaded.

Several students have asked me about the seminar presentations for the new items added to the EA-2B syllabus.

I have recorded the sections for IRC 417(e) and IRC 436. I have also recorded the solutions to the prior exam problems for the Introduction, 401(l) and 410(b) segments.

There is a bit of a backlog in getting these files cleaned up and uploaded the the Infinite Actuary web site. I hope they will be posted this week.

The syllabus is now available on the SOA web site:
http://www.soa.org/files/pdf/edu-jbe-booklet.pdf

Here is the short list of changes:

• Removed all the old stuff on IRC 415 and 416, and PBGC participant notices
• Removed PBGC Tech Updates 96-3, 97-6 and 00-4
• Added IRC 436 (yikes!)
• Added 2008 PBGC-1 form
• 1.401(a)-1 regulation on Phased retirement age
• RR 2007-67 Application of segment interest rates and mortality rates relative to IRC section 417(e)
• PBGC Tech Update 07-2 Effect of PPA 2006 on 4010 and 4043 Reporting
• PBGC Tech Update 07-3 Lump Sum Issues in Standard Terminations
• Three items from the Federal Register on reporting and disclosure:
  • 72 FR 64710 On revision of annual information return/reports; final rule
  • 72 FR 52004 On DOL’s interim final rule on annuities
  • 72 FR 64731 On revision of annual information return/report; notice (127 pages!)

I’m not sure why they added the 2008 PBGC-1 form, because  the PBGC hasn’t figured it out yet. Here is some text from the PBGC web site explaining why the 2008 PBGC-1 form is not yet available:

“Please note that only Estimated Flat-rate Premium Filings for plan year 2008
are allowed at this time due to the substantial changes that are required as
a result of the Pension Protection Act of 2006, particularly with respect to
the variable-rate premium. My PAA will be updated for these changes to allow
sufficient time to prepare and submit final e-filings (now called Comprehensive
Filings). The earliest Comprehensive Filing due date for calendar year plans in
2008 is October 15, 2008. (01/10/08)”

The remaining lessons have been finalized: IRC Section 417, IRC Section 420, PBGC topics and Multiemployer plans.

In February, I’ll start recording the solutions for the prior exam problems in each section. I’ll also start updating the practice problems for 2008.

In general, the idea is that the online seminar experience will be the same as the live seminar.

But there are some differences:

ONLINE SEMINAR

1. You get access to the actual presentation as soon as it is available on the IA web site. This is done via video files which record the audio and show the seminar overheads as I discuss them (and write notes on them). You don’t actually see me at all.
2. If something seems unclear after viewing the online seminar, you can repeat the presentation as many times as you like.  And you can email me with any questions.
3. At the end of January, I mail you a CD with PDF files for everything (seminar overheads, outlines and practice problems) at that date. In January and February, as the online seminar files are created, they are posted to the Infinite Actuary web site. You have to print the files yourself.
4. As I update the outlines and practice problems, they are posted to the Software Polish web site. Students receive email notifications, and are responsible for printing these files.

 LIVE SEMINAR

1. You don’t get the actual presentation until the Live seminar is held in April.
2. If something seems unclear after the seminar, you can email me with any questions.
3. At the end of January, I mail you a stack of paper (1,000 pages), plus a CD with PDF files for everything (seminar overheads, outlines and practice problems).
4. As I update the outlines and practice problems, they are posted to the Software Polish web site. Students receive email notifications, and are responsible for printing these files.

I have already started getting questions from students about the EA-2B exam. Gee, you folks should at least rest a bit until after Thanksgiving?!

Q1. How much did the EA-2B syllabus change from 2007 to 2008?  I went to the IRS website and did not see any major changes, and I know PPA did not alter EA-2B stuff too much.
  
A1. The Joint Board announcement has not been updated for 2008. The EA-2B syllabus is not finalized until after 12/31 (consistent with prior years’ exams). The reason is that the syllabus can include any Revenue Rulings and regulations released prior to 12/31.
http://www.irs.gov/pub/irs-utl/fall_2007_examination_program_booklet_.pdf

Last summer, the final version of the Joint Board announcement for EA-2A was not released until August. So I assume we may not see the new one until February 2008.

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Q2. I do not see any mention of PPA 2006 on the EA-2B syllabus.  Will PPA be reflected?
   
A2. I assume so. The usual cutoff date for the EA-2B exam is December 31, but most of PPA 2006 is effective starting January 1, 2008. I expect them to modify the Joint Board announcement to clarify this.

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Q3. What is the EA-2B syllabus going to look like? I would imagine that it would change a bit since 414(l), 415, 416 and 417 were on EA-2A (and EA-2B) in 2007. 

A3. I wish I knew, but nobody knows what it will look like. I assume they may add something (maybe IRC 436) to EA-2B to make up for the loss of IRC 414(l), 415 and 416. I still expect them to test QJSA and QPSA under 417 on EA-2B, since those were not tested under EA-2A.