When forced with rising pension costs, many public pension plan sponsors are pressured to freeze plan benefits. However, a look into five key pension plan provisions that are the biggest drivers of pension costs can help sponsors set a sustainable level of benefits. This Dear Actuary column provides perspective.
One Native American community engaged Milliman to learn how membership growth would affect the funding needed to finance benefit programs for its citizenry. In this article, consultant Bruce Mitton explains the firm’s population projection that helped tribal leaders understand the financial implications of the community’s long-term growth rate.
Here is an excerpt:
Milliman prepared a report for the community leaders that showed that the size of the citizenry was likely to increase 50% over the next 20 years. While this is a significant increase, the previous estimate led them to believe that they would reach this size in a period of only 10 years instead of 20. We were able to provide a more realistic prediction of how their group would change over time. The citizens’ average age was expected to increase from about 26.8 years to roughly 29.6 years over the same 20-year period. Finally, we were able to provide them with count estimates in five-year age groups at five, 10, 15, and 20 years in the future, as well as the expected number of deaths. They were very happy with the refined estimate because it will enable them to match the various programs with the appropriate age groups and, using the future counts, develop budgets and make more definite plans for the future.
Milliman was recently retained by a multinational company to provide actuarial services for its retirement programs in six countries. This article by Danny Quant highlights how Milliman’s solution turned the initial valuation contract into broader consulting opportunities.
Milliman’s Hans Jones was recognized by the American Society of Pension Professionals and Actuaries (ASPPA) for his outstanding performance on the Spring 2015 DB Exam. Jones was a recipient of the 2015 Martin Rosenberg Academic Achievement Award. The award is designed to acknowledge the top-performing candidates on the DC-1, DC-2, DC-3, DB, CPC, and A-4 examinations.
For more information, read the ASPPA press release here.
This paper by Milliman consultants Danny Quant and Simon Herborn provides an update for the quarter ended June 30, 2014, on discount rate changes as they apply to liabilities under AS15(R), India’s accounting standard for the cost of providing employee benefits. Implied yields have fallen since March 31, 2014. The impact of this fall will depend on the weighted average expected future working lifetime (WAEFWL) of employees.
Actuarial work is governed by certain standards of practice, known as the ASOPs—Actuarial Standards of Practice. The videos below were developed to bring the ASOPs to life, a series we call “ASOP’s Fables.”
If people express interest we can develop more ASOP droid videos—or this may be the only contribution to the genre.
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