Trending...
- Monexplora Explains the Options Mechanics Behind March's Tech Selloff and VIX Surge
- City of Spokane And City Council Announce 2026 Washington State Legislative Outcomes
- Tacoma Police Department Increases DUI Patrols
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
- Spokane Police Arrest Two At Saturday's Protest
- On the 296th Anniversary of the Ceremony That Made His Ancestor Emperor, a Cherokee Descendant Publishes the Novel That Restores Him
- NRx Pharmaceuticals Could Be on the Verge of a Breakout Year as AI, FDA Catalysts, and Mental Health Demand Converge
- DC Accounting Firm Offers Free Business CRM to Small Business Clients Alongside Weekly Bookkeeping Model
- CCHR: Psychiatric Drugs Fuel Rising Death Toll: National Adverse Drug Event Awareness Day Confronts America's Medication Crisis
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
- State of TBM 2025 Report: 83% of Organizations Boost Performance & Efficiency
- Spokane: Call for High School Artists: 2026 Riverfront Park Poster Contest
- Spokane: Traffic Impacts Starting Monday, March 30
- Homeowner Prep Announces Strategic Language Shift: Replacing "Renters" with "Future Homeowners" to Inspire Wealth-Building Mindsets
- LiposoMore™ Redefines Bioavailability: Joyful Nutritional Launches High-Performance Liposomal Vitamin C and Iron for the Global Supplement Market
- GDE Tree Services Expands Operations into Sydney, NSW
- Tuckwell Machinery Expands CNC Range to Support Australian Cabinet Makers
- The Inner Power of Emotional Self-Leadership
- Dr. Nadene Rose Shares the Secret to True Success: Faith, Obedience, and Divine Purpose
- Spokane: Armed Barricaded Subject Causes N. Market St To Close
- Enleaf Founder Joins AI Panel at Møde Campus to Help Spokane-Area Businesses Navigate the AI Shift
- Tacoma: Lincoln Avenue Bridge to Close April 4 for Major Asphalt Repairs
- Understanding Unexpected Death: Why Independent Autopsies Matter in Cases Without Clear Cause
- Epic Pictures Group Sets North American Release Date for the Thriller NO ORDINARY HEIST
- Award-Winning REALTOR® Paige Coker Joins Corcoran DeRonja Real Estate
- Over 98% of crypto owners globally don't declare taxes, new report find
- TicTac Group acquires French EdTech company Distrisoft
- Suspect Arrested in February Shooting in South Tacoma
- Tacoma: City's Events and Recognitions Committee Announces the City of Destiny Award Winners
- Mark Dobosz Makes Donorassess.org Free To Every Nonprofit On The Planet