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ERISA, establishes an important statutory. role for pension actuaries in the United States. As part of its statutory goal to protect the retirement se-. curity of Americaâs workers, ERISA requires tax-quali-. fied defined benefit plans to obtain an actuarial. valuation of plan reserves each year. When valuing the. plans râ eserves, the actuary is required by ERISA to act on. behalf of plan participants.
Some pension plans require the employee to make a small, periodic contribution to the fund. The amount of pension that a pensioner receives depends on the type of pension plan. Pension plans generally can be divided into two categories: defined benefit plans and defined contribution plans. A defined benefit plan provides a set amount of benefits to a pensioner. Under a defined contribution plan, the employer places a certain amount of money in the employee's name into the pension fund and makes no promises concerning the level of pension benefits that the employee will receive upon retirement.