Trending...
- Pierce Transit and the City of Tacoma Plan Coordinated Approach to Safety
- LS2 Partners with Angels Of Dirt's "Next Chapter Racer" Series Celebrating Women and Girls in Motorsports
- Self-Published Dad's Santa Book Finally Found After 3 Years on Amazon
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
- Breathwork Certification in Seattle, Washington State: First Pacific Northwest Date Set
- Author Robert A. Robinson Introduces Anarchy at the AYP:
- Renew Integrative Health Publishes Updated Peptide Therapy Guide to Help Patients Understand Their Options
- AI Agents Are Getting Their Own Computers. HRTech Leading in Vertical Harness Development
- UK Financial Ltd Announces Two-for-One Upgrade of Maya 3 to Maya 3G Token Using Chainlink Cross-Chain Technology
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
- Renkeer Water Quality Sensors Support Efficient Operation of AI Liquid Cooling Systems
- Victor Archibong Expands ItsArchiDuh Creator Brand
- ClearSight Therapeutics Receives U.S. Patent Notice of Allowance
- Revinate launches hospitality's first data activation platform
- HLN Consulting Names Lilly Kan as Its First Chief Executive Officer
- BitTitan Accelerates Large-Scale Document Migrations with MigrationWiz
- Clearnetworx Deploys netElastic vBNG, CGNAT And netVision To Power Fiber Expansion Across Colorado's Western Slope
- Spokane: SPD Seeks Assistance in Locating Vehicle Associated in Hit and Run
- Tacoma: 'Capital Ready: Preparing Businesses for Growth in Public Contracting' Workshop on October 27
- Six Tacoma Census Tracts Nominated by Governor Bob Ferguson as Federal 'Opportunity Zones'
- Seven Spokane Census Tracts Receive Opportunity Zone Designations
- Creole101 Launches Multilingual Dictionary App with 50,000+ Entries, Vocabulary Games and Haitian Cultural Resources
- Hilton Waikiki Beach Resort & Spa Introduces Level 37 Sky Lounge by Casamigos
- Self-Published Dad's Santa Book Finally Found After 3 Years on Amazon
- Meta Partnership Expanding as Omni One Orders Surge 3X -New Consumer Bundles, Defense Opportunities & AI Robotics: Virtuix Holdings: N A S D A Q: VTIX
- Citizens for West Virginia Election Integrity Urges "FOR" on Amendment 1
- Vegan Kingz Expands Direct-Import Wholesale Lineup to Help Commercial Kitchens Cut Ingredient Costs
- Acuvance Survey Finds ERP Integration Remains a Key Challenge as Healthcare Organizations Prepare for AI
- Everything Policy Unveils Their Classroom Resources Behind Every Policy Topic
- Constantine "Costa" Kapothanasis II Acquires The Lubri-Loy Company, Carrying a 77-Year-Old American Lubricant Brand Into Its Next Era