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

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.

“We saw the largest drop in competitive buyout rates in the past 12 months, as annuity purchase interest rates rose more than accounting rates."

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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 pensionbuyout@milliman.com.

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Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com.