The low interest rate environment presents defined benefit plan sponsors with considerable challenges they must address. Because every pension plan’s situation is unique, sponsors need plan-specific data in order to make informed decisions. One of the only things that’s true across the board is that better decisions are made when sponsors have reliable and updated financial data.
In this article, Milliman’s consultants William Strange and Arthur Rains-McNally offer their perspectives on the challenges of the current interest rate environment. They also discuss how technological advances enable actuaries to generate and deliver realistic estimates of actuarial valuation results, funded status, expected investment returns, and other key factors in real-time to support critical business decisions.