USA – Milliman Pension Buyout Index
Isabel Coles | 28 February 2020
Milliman launches monthly Pension Buyout Index to track the estimated cost of retiree pension risk transfer transactions.
As the pension risk transfer market in the U.S. continues to grow, it has become increasingly important to monitor the annuity market for defined benefit plan sponsors that are considering transferring retiree pension obligations to an insurer.
The Milliman Pension Buyout Index uses the FTSE Above Median AA Curve and annuity purchase composite interest rates from insurers to estimate the average cost of buying out retiree pension obligations with an insurer. This can provide plan sponsors with a valuable indication of the annuity buyout cost trends in the market.
Click here for more information about the Milliman Pension Buyout Index, how annuity buyout costs have developed over January 2020, and historical movements over the last 10 years.