Redesigning retirement plans to align with business goals

A Milliman client sponsoring both a defined benefit (DB) plan and a defined contribution (DC) plan wanted to amend its overall retirement program but needed to navigate some potentially adverse accounting. Milliman professionals were enlisted to perform a comprehensive review of the current DB and DC plan designs as well as a number of alternative plan designs. In addition, our team needed to analyze the projected impact that each design would have on the client’s net accounting numbers to determine which design would best fit its overall business and retirement program goals. Milliman actuary Ryan Ellsworth discusses the solution used and its outcome in this case study.