Milliman’s latest results of its Milliman Pension Buyout Index (MPBI) show that during February, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process climbed 10 basis points, from 100.4% to 100.5% of a plan’s accounting liabilities (accumulated benefit obligation, or ABO). That means the estimated retiree PRT cost is now 100.5% of a plan’s ABO.
During the same time period, the average annuity purchase cost across all insurers in our index also increased 10 basis points, from 103.5% to 103.6%. The competitive bidding process is estimated to save plan sponsors about 3.1% of PRT costs as of February 28, 2026.
“Even with the drop in accounting interest rates this month, the MPBI remained fairly steady as annuity purchase rates largely mirrored the decrease,” said Jake Pringle, Milliman Principal and Co-Author of the MPBI.
“With recent global economic instability, we will continue to monitor rate movement and impact for pension risk transfers in early 2026.”
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.
