Project (and protect) your defined benefit plan's future

FutureCostSM is a powerful modeling tool that projects the assets and liabilities of the pension plan over the next 10 years or longer. For each year, full actuarial valuation results are produced, including plan contributions, plan funded status, accounting expense, and balance sheet impacts. The model can be run with one or more deterministic scenarios for future liability discount rates, inflation, and investment returns, or can be used to generate a full set of stochastic results that provide the sponsor with the full range of possible outcomes for each measure and the estimated probability of various levels of outcomes.

FutureCost gives corporate, multiemployer, and public pension-plan sponsors an exclusive window to the future for making smart decisions today.

Ask questions and expect answers

There is no limit to the number of scenarios that FutureCost can project in order to help plan sponsors answer complex "What if?" questions about future pension plan obligations, including:

• What if we make a benefit change?
• What if we make an investment strategy change?
• What if we come up with a different contribution strategy?

FutureCost provides a greater understanding of the risk/reward factors of alternative investment strategies in terms of key variables (plan contributions, funded ratios, and accounting values).

FutureCost

• informs plan sponsors about the possible range of pension plan contributions and accounting expense over the next 10 or more years
• helps plan sponsors decide when to implement plan design changes
• arms plan sponsors with the information needed to make sound risk-budgeting decisions about plan assets

Conquer marked-to-market frustrations

Corporate pension plan liabilities are essentially "marked to market" in terms of funding and accounting calculations. And in that marked-to-market world, there is a tremendous amount of asset and liability volatility. FutureCost helps interpret and manage such volatilities with relative ease, helping plan sponsors to focus on liability-driven investment strategies rather than asset and liability management complexities.

Be confident about compliance

The Pension Protection Act of 2006 (PPA) and subsequent legislation gives plan sponsors choices of how to apply the PPA, including asset-smoothing, different discount rates, and different timing as to when to set those rates. FutureCost helps sponsors sort through those choices and figure out which are most compatible with the plan's current investment, contribution, and benefits strategies.

FutureCost by Milliman is both a microscope for examining and precisely measuring short-term risk and a telescope for viewing long-term levels, trends, and variability in the key costs and financial measures that affect corporate, multiemployer, and public pension-plan sponsors. At the hands of Milliman consultants, FutureCost offers the unique flexibility needed to make confident choices in the midst of a changing economic climate.