Trending...
- ResC4EU Final Event at KOMPOZYT-EXPO 2026 – Building Resilient European Supply Chains
- CinderLabs Launches AI Agent Marketplace: Nine Pre-Built Agents for Regulated Industries
- Harvard Educated Board Certified Endodontist Joins Pearlfection Dentistry
SEATTLE ~ Seattle, WA - In a recent press release, Milliman, Inc. announced the latest findings of their Milliman Pension Buyout Index (MPBI). As the pension risk transfer (PRT) market continues to expand, it has become increasingly important for plan sponsors to closely monitor the annuity market when considering transferring retiree pension obligations to an insurer.
According to the MPBI, during the month of January, the estimated cost for transferring retiree pension risk to an insurer through a competitive bidding process increased from 100.5% to 101.8% of a plan's accounting liabilities (accumulated benefit obligation, or ABO). This means that the estimated cost for PRT is now 101.8% of a plan's ABO. Additionally, the average annuity purchase cost across all insurers in the index also rose from 103.1% to 103.6%. The competitive bidding process is estimated to save plan sponsors approximately 1.8% of PRT costs as of January 31.
More on Washingtoner
Jake Pringle, a principal at Milliman and co-author of the MPBI, commented on these findings stating, "Retiree buyout costs have slightly increased at the start of this year due to rising accounting discount rates and falling PRT rates." He also noted that it will be interesting to see how high inflation reports and potential actions by the Federal Reserve may impact the PRT market.
The MPBI utilizes data from nine insurers and uses the FTSE Above Median AA Curve along with annuity purchase composite interest rates to estimate both competitive and average costs for a PRT annuity de-risking strategy. However, it is important to note that individual plan annuity buyouts can vary based on factors such as plan size, complexity, and competitive landscape.
For those interested in viewing the complete Milliman Pension Buyout Index or receiving regular updates on their pension buyout analysis, they can visit https://www.milliman.com/mpbi or contact the company at pensionbuyout@milliman.com. As the PRT market continues to evolve, it is crucial for plan sponsors to stay informed and make strategic decisions when it comes to managing their retiree pension obligations.
According to the MPBI, during the month of January, the estimated cost for transferring retiree pension risk to an insurer through a competitive bidding process increased from 100.5% to 101.8% of a plan's accounting liabilities (accumulated benefit obligation, or ABO). This means that the estimated cost for PRT is now 101.8% of a plan's ABO. Additionally, the average annuity purchase cost across all insurers in the index also rose from 103.1% to 103.6%. The competitive bidding process is estimated to save plan sponsors approximately 1.8% of PRT costs as of January 31.
More on Washingtoner
- Spokane: City and County Offer Adopt-A-Drain Program
- City of Tacoma's Proposed Biennial Budget Focuses on Everyday Services and Fiscal Sustainability
- NEW Three Fully Furnished Single-Family Model Homes at Heritage at South Brunswick
- After 35 Years, Christian Radio Host Marina Maria Publishes the Novel She Never Forgot
- Freight Broker 911 CEO and President Milton Collier Is Rebuilding the Path Into Freight Brokerage
Jake Pringle, a principal at Milliman and co-author of the MPBI, commented on these findings stating, "Retiree buyout costs have slightly increased at the start of this year due to rising accounting discount rates and falling PRT rates." He also noted that it will be interesting to see how high inflation reports and potential actions by the Federal Reserve may impact the PRT market.
The MPBI utilizes data from nine insurers and uses the FTSE Above Median AA Curve along with annuity purchase composite interest rates to estimate both competitive and average costs for a PRT annuity de-risking strategy. However, it is important to note that individual plan annuity buyouts can vary based on factors such as plan size, complexity, and competitive landscape.
For those interested in viewing the complete Milliman Pension Buyout Index or receiving regular updates on their pension buyout analysis, they can visit https://www.milliman.com/mpbi or contact the company at pensionbuyout@milliman.com. As the PRT market continues to evolve, it is crucial for plan sponsors to stay informed and make strategic decisions when it comes to managing their retiree pension obligations.
0 Comments
Latest on Washingtoner
- Tixpool.com - Naija Premier Event Reseller
- Work 365 Expands Distributor Integrations with Companial for Microsoft Partners
- Guardian Data Opens 42,000-Square-Foot Moonachie Facility, Doubling New Jersey Capacity
- Spokane: Indigenous Peoples' Day Is Oct. 12
- SecureMaine 2026 is Here -- Thursday October 8th!
- Tacoma: Homicide Investigation – 800 Pacific Avenue
- HW Foundation Opens Nominations for Inaugural 50 Under 50 in AI; Deadline Oct. 16
- Pavillon 30 Years of Addiction Recovery in Western North Carolina, Earns National Accreditation
- Safer Spokane
- Spokane: Special Investigation Unit Seized Large Amounts of Cash and Cocaine
- Spokane: U.S. Conference of Mayors, American Beverage Foundation Visit Youth Wellness Zone
- Spokane: Disabled Smoke Alarm Contributes to Fatal Tiki Lodge Fire
- Spokane Police Investigate Fatal Fire With Fire Department
- Spokane: SPD and SFD Respond to Early Morning Fire in Downtown Apartments
- City To Simplify Services by Routing Non-Emergency Police, Fire Calls through Spokane 311
- ResC4EU Final Event at KOMPOZYT-EXPO 2026 – Building Resilient European Supply Chains
- Tacoma: Update Fourth Homicide Arrest – 2100 block of N 30th St
- City of Tacoma Invites Community Members to Share Their Experience Crossing I-5
- Statement from Tacoma Chief of Police Patti Jackson on Understanding the Office of Independent Investigations (OII)
- Tacoma: 2026 AMOCAT Arts Award Winners Announced