Trending...
- Emeritus Addresses Hospital Bed Shortages with Smart Storage Solutions
- Turbo vs. Experts: Tracking OddsTrader's AI Performance at the NFL's Midpoint
- UV Weathering Test Chamber vs Xenon Arc Test Chamber: What's the Right Solution for Your Products
SEATTLE, July 23, 2021 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). As the Pension Risk Transfer (PRT) market continues to grow, it has become increasingly important to monitor the annuity market for plan sponsors that are considering transferring retiree pension obligations to an insurer.
During June, the average estimated cost to transfer retiree pension risk to an insurer rose, from 102.0% of a plan's total liabilities to 102.4% of those liabilities. This means the average estimated retiree PRT cost for the month is now 2.4% more than those plans' retiree accumulated benefit obligation (ABO). Meanwhile annuity purchase costs reflecting competition amongst insurers also increased, from 99.7% in May to 100.0% in June.
"First quarter pension risk transfer activity had a slow start in 2021 compared to 2019 and 2020, but with scheduled plan terminations on the horizon and an increased interest in retiree buy-outs, activity is expected to increase," says Mary Leong, a consulting actuary with Milliman and co-author of the study. "Plan sponsors may also be weighing the impact of the American Rescue Plan Act (ARPA-21) on their pension plans before making decisions to de-risk."
More on Washingtoner
The MPBI uses the FTSE Above Median AA Curve, along with annuity purchase composite interest rates from eight insurers, to estimate the average and competitive costs of a PRT annuity de-risking strategy. Individual plan annuity buyouts can vary based on plan size, complexity, and competitive landscape.
To view the complete Milliman Pension Buyout Index, go to https://www.milliman.com/mpbi.
About Milliman
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.
SOURCE Milliman, Inc.
Related Links
www.milliman.com
During June, the average estimated cost to transfer retiree pension risk to an insurer rose, from 102.0% of a plan's total liabilities to 102.4% of those liabilities. This means the average estimated retiree PRT cost for the month is now 2.4% more than those plans' retiree accumulated benefit obligation (ABO). Meanwhile annuity purchase costs reflecting competition amongst insurers also increased, from 99.7% in May to 100.0% in June.
"First quarter pension risk transfer activity had a slow start in 2021 compared to 2019 and 2020, but with scheduled plan terminations on the horizon and an increased interest in retiree buy-outs, activity is expected to increase," says Mary Leong, a consulting actuary with Milliman and co-author of the study. "Plan sponsors may also be weighing the impact of the American Rescue Plan Act (ARPA-21) on their pension plans before making decisions to de-risk."
More on Washingtoner
- Inframark Expands Its Specialized Automation and Intelligence Capabilities, Adds Dmytryka Jacobs Engineers
- Sustainable Santa Returns to Old Sacramento
- Upcoming Launch of Retail Crypto Cloud Mining Platform with Daily Rewards in a Transparent Revenue-Share Model: iMD Companies, Inc. Stock Symbol: ICBU
- BumblebeeSmart Introduces Rounded Busy Board Set for Preschoolers
- CRH Healthcare Opens 100th Urgent Care Clinic with Second Peachtree Immediate Care Location in Covington
The MPBI uses the FTSE Above Median AA Curve, along with annuity purchase composite interest rates from eight insurers, to estimate the average and competitive costs of a PRT annuity de-risking strategy. Individual plan annuity buyouts can vary based on plan size, complexity, and competitive landscape.
To view the complete Milliman Pension Buyout Index, go to https://www.milliman.com/mpbi.
About Milliman
Milliman is among the world's largest providers of actuarial and related products and services. The firm has consulting practices in healthcare, property & casualty insurance, life insurance and financial services, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. For further information, visit milliman.com.
SOURCE Milliman, Inc.
Related Links
www.milliman.com
Filed Under: Business
0 Comments
Latest on Washingtoner
- Valentine Roofing Wins 2025 Nextdoor Neighborhood Fave Award
- IDCXS Exchange Founder Travels to Angola for Strategic Cooperation Talks
- Tacoma Police Department to Recognize Two Community Members Who Intervened in Violent Assault
- 2026 NBA Mock Draft: New Wave of Franchise Talent Emerges in Early Lottery Projections
- Bad Bunny Leads 2026 Grammys Album of the Year Odds, Lady Gaga Emerges as Top Challenger
- Metro Detroit teen Lola Winters turns viral TikTok fame into a sold-out clothing brand
- Tacoma: Update on Initiative 2
- ReedSmith® Celebrates Innovative Founders at TCVN's Survivor™ XII at SoCal Startup Day
- The global race for next-gen precious metals recovery is accelerating: $AABB is positioning itself with it's Revolutionary rGO Gold Recovery System
- NorthSky Celebrates One-Year Anniversary
- Free At Last Bail Bonds Gives Back Through Major Holiday Food Distribution Efforts Across Metro Atlanta
- Discover Elevated Living - Preview the Stunning New Townhome Collection
- TownePlace Suites Prescott Valley, AZ Opens
- SIX7 Introduces Olfactory Neurodesign™ — The First Fragrance System Engineered to Influence Emotion, Memory, and Desire at the Neural Level
- GetKuwa emerging as GCC's #1 trusted online supplement marketplace as shoppers across UAE, Saudi Arabia, Kuwait, Qatar & Oman seek authenticity
- GenesisEdge Society Unveils ΣClipse AI Multi-Agent System Led by Richard Schmidt
- Uk Financial Ltd Provides Investors Of Maya Preferred & Mayacat Instructions For Upcoming First Ever Listing Of Both Erc-3643 "SEC-Ready" Tokens
- Tacoma Creates 2024-2025 Annual Report Highlights Expanded Access to Arts and Culture Across Tacoma
- Kaufman Development and Daniel Kaufman Ventures Announce Strategic Expansion Into Data Centers and AI Infrastructure Across the United States
- Tacoma: City Council Presented with Community Safety Action Strategy Built on Community Input