Tag Archives: infographic

Infographic highlights trending compensation benefits for healthcare workers during COVID-19 pandemic

Healthcare workers on the front lines of the COVID-19 crisis are treating patients around the clock to help them recover. As a result, many workers have fallen ill and been forced to quarantine indefinitely, while some have even lost their lives. In the United States, hospitals, clinics, and other healthcare organizations are adjusting their benefits and compensation policies to support their employees during these uncertain times.

The following infographic highlights results from the Milliman Northwest Healthcare COVID-19 Pulse Survey, which summarizes key actions local healthcare employers are taking to address issues in the face of the coronavirus pandemic. For more perspective on the survey and the benefits and compensation landscape, read Lauren Busey’s article “Managing benefits and compensation for healthcare workers in the time of COVID-19.”

Infographic: Is the coronavirus market drop the worst in DJIA history? Yes. And no.

Over the last couple of days we have seen steep declines in global equity markets driven by concerns related to the coronavirus (COVID-19). Since February 20, in particular, we have seen three large declines, including two drops of 1,000+ points in the Dow on higher market volatility. Markets don’t like uncertainty.

The 1,190.95-point Dow decline this past Thursday (February 27, 2020) is the largest we’ve seen in the history of the Dow and amounts to a drop of over 4.4%. However, when compared to the daily historical percentage-point drops in the Dow, it ranks around 100th in terms of percentage declines dating back to the 1920’s. The largest percentage decline in the Dow occurred on October 19, 1987, also known as Black Monday.  On that day, the Dow fell more than 500 points, which represented a decline of more than 22%, because the Dow was at about 2,200 at the time.  So while the 1,000-point drop is substantial, we need to put this into perspective in terms of the level of the Dow today and the percentage of the decline.

Factoring in the declines over six trading days last week (February 20 to February 27), we’re close to a 13% decline in the span of four trading days for the Dow (and S&P 500). This is a market correction (typically defined as a 10% decline or more). For perspective, there have been six market corrections since the recovery began in 2009 after the global financial crisis.

So what is driving the decline? 

Concerns and headlines related to the spread of COVID-19 and the level of containment as well as the accompanying uncertainty regarding this issue.

From the World Health Organization, it is reported that there are 83,652 cases (as of February 28, 2020) with 1,358 new cases reported in the last couple of days; at this point there have been over 2,700 deaths in China related to COVID-19. Cases have now spread to six continents.

As such, it cannot be predicted how this will play out in the near or long term nor what the overall impact will be on global economies. Some of the potential effects include: a reduction in travel, commerce slowing due to lower employee productivity and the disruption of supply chains, and the market generally trying to price in a reduction in expected corporate profits due to potential increased expenses. Given that, the bigger question is what the magnitude of these impacts will be.  Will supply chains have to be revamped and inventories built up?  Will production become more locally focused? Until we have a better understanding of these questions and how they could affect earnings, we expect to see elevated volatility across markets.

So what should I do?

While volatility will likely remain elevated, it is still within the range that is normal and expected.  Make sure your portfolio is positioned for the appropriate level of risk, which means up markets as well as down markets.  Make sure your portfolio is prudently diversified, which usually means owning both equities and fixed income.  And finally, make sure your portfolio is structured with the right time horizon.  Whether a pension plan or a 401(k), it’s unlikely you need all your money in the next few days.  Long-term investing can handle the ups and the downs. Make sure you have the right risk for your objectives and the best expert advice in your corner.

The analysis in this report was prepared utilizing data from third parties. Reasonable care has been taken to assure the accuracy of the data contained herein. These reports do not constitute investment advice with respect to the sale or disposition of individual securities. Past performance is no guarantee of future results.

Milliman provides a copy of its SEC Form ADV Part II to clients without charge upon request.Advisory Services are offered through Milliman Advisors, LLC a subsidiary of Milliman, Inc.

What does corporate pension funding look like by sector? (Infographic)

Milliman recently released the 19th edition of its Corporate Pension Funding Study, which analyzes funding information for the 100 largest U.S. corporate pension plans. New this year, the study also includes an analysis of pension plan funding by business sector including funded ratio, asset allocation, and expected investment returns.

What does the multiemployer pension funding crisis look like?

On Friday, July 13th, the Joint Select Committee on the Solvency of Multiemployer Pension Plans will hold its 5th public hearing as it seeks to investigate issues around the operations and solvency of multiemployer pension plans. Friday’s hearing focuses on what’s at stake for current workers and retirees.

In light of the Congressional work around this subject, Milliman has put together an infographic that visually explains some of the complexities underlying the multiemployer pension funding problems. The data is taken from Milliman’s Spring 2018 Multiemployer Pension Funding Study, which reports on the estimated funding status of all U.S. multiemployer plans.

Source: Milliman Spring 2018 Multiemployer Pension Funding Study

 




Infographic: Five ways to motivate Millennials through employee communication

According to Gallup, Millennials make up close to 40% of the United States workforce. However, less than one-third of them are engaged at work. Encouraging Millennials to take action concerning their employee benefits can be a difficult task. Fortunately, there are several communication tactics organizations can use to motivate even the most uninterested Millennial. The infographic below, based on a blog post by Milliman’s Jessica Gonchar, highlights five of these tactics.




Milliman infographic: Pension liabilities

When the discount rate increases the projected benefit obligation (PBO), or pension liability, decreases, and vice versa. This relationship explains the volatile nature of pension liabilities and demonstrates why liabilities-driven investment strategies, which manage funded status and limit volatility of pension liabilities and asset returns, are useful.

PFI-graphic_final-screenRes_600x

To read the entire Corporate Pension Funding Study, click here.