Practice Management
Estimated retiree buyout costs fell in November, says a recent report. This marks a reversal of October’s results, when those costs rose.
Both the average accounting discount rates and the annuity purchase rates decreased, says Milliman, fueling a drop in the lower estimated retiree buyout cost. The average accounting discount rates fell by 20 basis points (bps) and the annuity purchase rates fell by 9 bps.
As a result, says the report, the average estimated retiree buyout cost as a percentage of accounting liability fell in November from 102.9% to 101.8%. In addition, the competitive pricing trend fell from 100.3% to 99.4%.
Estimated Retiree Buyout Costs
Month | Rate | Rate, Previous Month | Change from Previous Month |
November | 101.8% | 102.9% | —1.1 percentage points |
October | 102.9% | 102.3% | +0.6 percentage points |
September | 102.3% | 102.9% | —0.6 percentage points |
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