Trending...
- Tacoma: At-Large City Council Member Olgy Diaz Hosts 'Bridging the Gap: Local Solutions in the Federal Landscape' on December 6
- Tacoma: FAQs on Proposed 0.1% Criminal Justice Sales & Use Tax
- Boeing–Airbus Accreditation Breakdown: How "Probably" Certificates Created Worldwide Risk
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
- New Chapbook Translates Truman's Ancient Playbook Into Practical Lessons for Modern Leaders
- KIKO NATION TOKEN (Official Release)
- Verb™ Presents Features Vanguard Personalized Indexing: Utilizing Advanced Tax-Loss Harvesting Technology
- Tacoma: FAQs on Proposed 0.1% Criminal Justice Sales & Use Tax
- UK Financial Ltd Announces A Special Board Meeting Today At 4PM: Orders MCAT Lock on CATEX, Adopts ERC-3643 Standard, & Cancels $0.20 MCOIN for $1
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
- West Coast Hospitality Assumes Management of The Dundee Hotel
- Spokane: Council Member Paul Dillon Honored with Legislative Champion Award by We Train Washington
- Controversial Vegan Turns Rapper Launches First Song, "Psychopathic Tendencies."
- Inside the Fight for Affordable Housing: Avery Headley Joins Terran Lamp for a Candid Bronx Leadership Conversation
- Canterbury Hotel Group Announces the Opening of the TownePlace Suites by Marriott Portland Airport
- Heritage at South Brunswick's Resort-Style Amenities for Any Age and Every Lifestyle
- Everett Chamber and Herald Launch 2026 Business Directory Reaching 30,000 Local Households
- T-TECH Partners with Japan USA Precision Tools for 2026 US Market Development of the New T-TECH 5-Axis QUICK MILL™
- Record Revenues, Debt-Free Momentum & Shareholder Dividend Ignite Investor Attention Ahead of 2026–2027 Growth Targets: IQSTEL (N A S D A Q: IQST)
- New YouTube Channel Pair Launches to Bring Entertainment Nostalgia Back to Life
- BRAG Hosts Holiday Benefit — Awards 10 Student Scholarships & Honors Timberland with the Corporate Impact Award
- FittingPros Launches Industry's First Data-Driven Golf Club Fitting Directory
- Take Control of Your Color Matching with Boston Industrial Solutions' Newly Expanded Natron® UVPX Series Ink Colors
- "Dr. Vincent Michael Malfitano Expands Monterey–Sicily Cultural Diplomacy With Major International Media Engagement"
- Kaufman Development Breaks Ground on Detroit Micro Data Center, Expanding Its National AI Platform
- Cummings Graduate Institute for Behavioral Health Studies Celebrates New DBH Graduates
- $80M+ Backlog as Florida Statewide Contract, Federal Wins, and Strategic Alliance Fuel Next Phase of AI-Driven Cybersecurity Growth: Cycurion $CYCU
- High-Conviction CNS Disruptor Aiming to Transform Suicidal Depression, Ketamine Therapeutics, and TMS - Reaching Millions by 2030
- Top10Christmas.co.uk Releases the UK Christmas Toy Trends 2025 Report
- Talagat Business Academy Announces Joint Certificate Program With The University of Chicago Booth School of Business