Milliman analysis: Competitive pension risk transfer cost decreased from 100.9% to 100.1% during April

Competitive bidding process saves about 3.3% of buyout costs as of April 30

SEATTLE--(BUSINESS WIRE)--Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). During April, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process dropped by 80 basis points, from 100.9% to 100.1% of a plan’s accounting liabilities (accumulated benefit obligation, or ABO). That means the estimated retiree PRT cost is now 100.1% of a plan’s ABO.

During the same time period, the average annuity purchase cost across all insurers in our index decreased 50 basis points, from 103.9% to 103.4%. The competitive bidding process is estimated to save plan sponsors about 3.3% of PRT costs as of April 30, 2026.

“We saw the largest drop in competitive buyout rates in the past 12 months, as annuity purchase interest rates rose more than accounting rates,” said Jake Pringle, co-author of the MPBI. “While PRT activity has been down during the first quarter, we’re seeing the market pick up halfway through Q2, with a number of deals scheduled to settle later this year.”

The MPBI compares the FTSE Above Median AA Curve to the annuity purchase composite interest rates from nine insurers to estimate the competitive and average costs of a PRT annuity de-risking strategy. Individual plan annuity buyouts can vary based on plan size, complexity, and competitive landscape.

View the complete Milliman Pension Buyout Index. To receive regular updates with Milliman’s pension buyout analysis, contact us at [e-mail].

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