Competitive pricing rate for pension risk transfer costs increase to 99.7% in

“As discount rates continued to climb upward in March, buyout rates lagged slightly behind the growth in accounting rates, resulting in an increase in the relative buyout cost,” says Mary Leong, a consulting actuary with Milliman and co-author of the study. “Despite the increase, competitive retiree buyout costs remain optimistic at just under 100% of the ABO, keeping de-risking strategies attractive for plan sponsors looking to annuitize retiree populations.”

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  

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

SOURCE Milliman, Inc.

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