The latest results of the Milliman Pension Buyout Index (MPBI) show that during May, the estimated competitive retiree buyout cost, as a percentage of accounting liability, decreased by 30 basis points (bps) from 101.1% to 100.8%.
The MPBI is determined by the difference between the discount rates reported by insurers for pricing group annuities and the accounting discount rate used by many plan sponsors. In May 2025, the accounting discount rate rose by 14 bps, while competitive annuity purchase rates increased by 19 bps. This five-bps difference led to a decrease in the estimated competitive retiree buyout cost, as a percentage of accounting liability, from 101.1% to 100.8%.
