Trending...
- Cold. Clean. Anywhere. Meet FrostSkin
- Male In Custody After North Spokane Drive By Shooting
- Slotozilla Reports Strong Q4 Growth and Sigma Rome Success
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
- Delay In Federal Disaster Assistance Causing Failure Of Small Business In Disaster Areas
- Capsadyn® Launches on Amazon, Offering Non-Burning Capsaicin Pain Relief
- When Representation No Longer Reflects the District — Why I'm Voting for Pete Verbica
- Off The Hook YS (NY SE: OTH) Executes Transformational Apex Acquisition, Creating Vertically Integrated Marine Powerhouse with $60M Inventory Capacity
- Tri-State Area Entrepreneur Launches K-Chris: A Premium Digital Destination for Luxury Fragrances
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
- $36 Million LOI to Acquire High Value Assets from Vivakor Inc in Oklahoma's STACK Play — Building Cash Flow and Scalable Power Infrastructure; $OLOX
- Kobie Wins for AI Innovations in the 2026 Stevie® Awards for Sales & Customer Service
- Spokane: Shoplifting Incident Becomes A Felony Crime After Store Employee Is Assaulted
- Berman | Sobin | Gross LLP Celebrates 35 Years of Advocating for Maryland's Injured Workers and Families
- Art of Whiskey Hosts 3rd Annual San Francisco Tasting Experience During Super Bowl Week
- PADT Earns Prestigious 2025 Americas Customer Loyalty Award from Ansys, Part of Synopsys
- Florida Keys Visitors Can Save 15 Percent With KeysCaribbean's Advanced Booking Discount
- Tacoma: Nominations Open Now Through March 17 for 2026 Historic Preservation Awards
- Sleep Basil Unveils Revamped Natural Latex Mattress Collection Page for Cooler, Cleaner, Better-Aligned Sleep
- Conexwest Delivers Custom Shipping Container MRI Lab, Saving California Hospital an Estimated $9 Million in Renovation Costs
- New Ordinance Would Prohibit Use of Private Property for Detention Facilities in Spokane
- Announcing the Winners of the 2026 Best of Northwest Travel
- Tacoma: Street Closures Projected to Start the Week of February 23 for Residential Street Restoration Program Maintenance Work
- City of Tacoma Expands Garbage Can Program in Response to Community Feedback
- FDA Meeting Indicates a pivotal development that could redefine the treatment landscape for suicidal depression via NRx Pharmaceuticals: $NRXP
- $2.7 Million 2025 Revenue; All Time Record Sales Growth; 6 Profitable Quarters for Homebuilding Industry: Innovative Designs (Stock Symbol: IVDN)
- CCHR: Decades of Warnings, Persistent Inaction; Studies Raise New Alarms on Psychiatric Drug Safety
- PRÝNCESS Builds Anticipation With "My Nerves" — A Girls-Girl Anthem
- Arbutus Medical Raises C$9.3M to Accelerate Growth of Surgical Workflow Solutions Outside the OR
- From Sleepless Nights to Sold-Out Drops: Catch Phrase Poet's First Year Redefining Motivational Urban Apparel