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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.
The plan sponsor should receive an engagement letter or service agreement from the actuary that specifies the: 1  Scope of the project or engagement. 2  Data needed from the plan sponsor. 3  Work product that will be delivered. 4  Timing and costs involved.