Pension buyout

Milliman analysis: Competitive pricing rate for pension risk transfer costs increases to 100.0% in June

Retrieved on: 
Friday, July 23, 2021
Academic disciplines, Annuities, Finance, Money, Actuarial science, Pension buyout, Milliman, Pension, Life annuity, Insurance

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).

Key Points: 
  • 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.
  • Meanwhile annuity purchase costs reflecting competition amongst insurers also increased, from 99.7% in May to 100.0% in June.

Milliman analysis: Competitive pricing rate for pension risk transfer costs decreases to 99.7% in May

Retrieved on: 
Friday, June 25, 2021
Academic disciplines, Annuities, Finance, Money, Actuarial science, Pension buyout, Milliman, Pension, Life annuity, Insurance

SEATTLE, June 25, 2021 /PRNewswire/ -- Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI).

Key Points: 
  • SEATTLE, June 25, 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 May, the average estimated cost to transfer retiree pension risk to an insurer dropped, from 102.4% of a plan's total liabilities to 102.0% of those liabilities.
  • Meanwhile annuity purchase costs reflecting competition amongst insurers also decreased, from 100.1% in April to 99.7% in May.

Milliman analysis: Competitive pricing rate for pension risk transfer costs drops to 99.3% in February

Retrieved on: 
Tuesday, March 16, 2021
Annuities, Finance, Money, Actuarial science, Academic disciplines, Pension buyout, Pension, Milliman, Life annuity, Insurance

SEATTLE, March 16, 2021 /PRNewswire/ --Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI).

Key Points: 
  • SEATTLE, March 16, 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 February, the average estimated cost to transfer retiree pension risk to an insurer dropped slightly, from 102.4% of a plan's total liabilities to 102.1% of those liabilities.
  • Annuity purchase costs reflecting competition amongst insurers also decreased, from 99.6% in January to 99.3% in February.

Milliman analysis: Competitive pricing rate for pension risk transfer costs rises to 99.6% in January

Retrieved on: 
Thursday, February 25, 2021
Annuities, Finance, Money, Actuarial science, Academic disciplines, Pension buyout, Pension, Milliman, Life annuity, Insurance

SEATTLE, Feb. 25, 2021 /PRNewswire/ --Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI).

Key Points: 
  • SEATTLE, Feb. 25, 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 January, the average estimated cost to transfer retiree pension risk to an insurer rose slightly, from 101.8% of a plan's total liabilities to 102.4% of those liabilities.
  • Annuity purchase costs reflecting competition amongst insurers also increased, from a low of 99.1% in December to 99.6% in January.

Revised Mercer U.S. Pension Buyout Index Methodology Shows That Costs of Annuity Buyouts Could Be Less Than Accounting Liability

Retrieved on: 
Thursday, September 17, 2020
Accounting, Professional services, Insurance, Finance, Finance, Money, Financial risk management, Pension buyout, Pension, Buyout, Financial economics, Mercer, the Mercer US Pension Buyout Index

The discovery comes following enhancements introduced by Mercer to its U.S. Pension Buyout Index (the Index).

Key Points: 
  • The discovery comes following enhancements introduced by Mercer to its U.S. Pension Buyout Index (the Index).
  • As of June 30, 2020, the new Index value was 97.7%, indicating that a hypothetical retiree buy-out transaction may cost 97.7% of the plans accounting obligations.
  • The revised methodology is more in line with the experience of the majority of Mercer clients who have executed retiree buy-outs and achieved a transaction price near or often below the accounting liability.
  • As such, we believe that the enhancements to the Mercer U.S. Pension Buyout Index more accurately reflect the economic reality in which we are operating.