Mortality of dairy cows in Georgia
Farmers who tap key risk management tools, such as dairy insurance, could see increased resiliency, sustainability and profitability.
As the Pension Risk Transfer market continues to grow, it has become increasingly important for plan sponsors to monitor the annuity buyout market when considering a plan termination or de-risking strategy. The timing of the annuity buyout can ultimately impact the cost, as well as the plan’s funding and accounting measurements. Other factors also impact annuity buyouts such as size, complexity, and competitive landscape, which should be taken into consideration with the estimated cost illustrated in the MPBI.
During March, 2020, average accounting discount rates increased by 80 bps, while annuity purchase rates increased by 71 bps. This caused the estimated retiree buyout cost as a percentage of accounting liability (Accumulated Benefit Obligation) to increase from 105.2% to 105.7%.
When considering these results, please keep the following information in mind: