Milliman: Pension risk transfer premiums more competitive
Pension risk transfer premiums became more competitive in October as deal volume is set to increase in the fourth quarter, a study by Milliman showed.
The estimated buyout cost as a percentage of accounting liabilities (accumulated benefit obligation) was 102.5% as of Oct. 31, down from 102.7% as of Sept. 30, according to a report of the Milliman Pension Buyout index. September’s premium was up significantly from 102.2% as of Aug. 31.
Meanwhile, the average annuity purchase rates among the most competitive rates fell in October to 99.4% from 100.2% a month earlier. The index for competitive pricing stayed at 100.1% as of Aug. 31.
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