Trending...
- Pinealage: the app that turns strangers into meditation companions — in crowdfunding phase
- Spokane Police Department and SPD Cadets Engage with the Logan Community to Discuss Crime Prevention in the Neighborhood
- Proform Builds Completes Two Luxury Seattle Waterfront Renovation Projects
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
- A Well-Fed World, Youth Climate Save and PAN International Launch PHRESH: A Global Directory of Plant-Based Hunger Relief Organizations
- Spokane: Shoplifting Blitz Nets Multiple Arrests as SPD Works to Curb Retail Thefts; Emphasis Continues as Christmas Approaches
- Haven Treatment Center Licensing Delays by Washington State Impeding Mental Health Access
- Tacoma: Update in SR-509 Fatal Collision Investigation: Vehicle of Interest Impounded
- Sexual Assault Suspect That Fled Spokane Area, Arrested in Connecticut; Extradition to Washington State Pending
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
0 Comments
Latest on Washingtoner
- Documentary "Prescription for Violence: Psychiatry's Deadly Side Effects" Premieres, Exposes Link Between Psychiatric Drugs and Acts of Mass Violence
- Price Improvement on Luxurious Lāna'i Townhome with Stunning Ocean Views
- Nextvisit Co-Founder Ryan Yannelli Identifies Six Critical Factors for Behavioral Health Providers Evaluating AI Scribes in 2026
- CredHub and Real Property Management Join Forces to Empower Franchise Owners with Rental Payment Credit Reporting Solutions
- Spokane: City Closures Planned for the Holidays
- Leimert Park Announces Weeklong Kwanzaa Festival & Kwanzaa Parade Celebrating Black History, Culture, and Community
- City of Tacoma Observes Christmas Day December 25 and New Year's Day January 1
- City of Tacoma Launches Pilot Program to Fast-Track 'Missing Middle' Housing
- Renowned Alternative Medicine Specialist Dr. Sebi and His African Bio Mineral Balance Therapy Are the Focus of New Book
- Psychiatric Drug Damage Ignored for Decades; CCHR Demands Federal Action
- Why Millions Are Losing Sexual Sensation, And Why It's Not Age, Hormones, or Desire
- Justin Jeansonne An Emerging Country Singer-Songwriter Music Fans Have Been Waiting For…a True Maverick
- Russellville Huntington Learning Center Expands Access to Literacy Support; Approved Provider Under Arkansas Department of Education
- Tacoma Police Seeking Vehicle of Interest in Fatal Collision Involving Washington State Patrol Trooper on SR-509
- UK Financial Ltd Launches U.S. Operations Following Delaware Approval
- Pinealage: the app that turns strangers into meditation companions — in crowdfunding phase
- Proform Builds Completes Two Luxury Seattle Waterfront Renovation Projects
- "Micro-Studio": Why San Diegans are Swapping Crowded Gyms for Private, One-on-One Training at Sweat Society
- City of Spokane Seeks Applicants for Park Board
- South Spokane Standoff Ends Peacefully After Suspect Surrenders to Officers