Milliman analysis: Competitive pension risk transfer cost remains level at 100.1% during November

Competitive bidding process saves about 3.2% of buyout costs as of November 30

SEATTLE–(BUSINESS WIRE)–#PRT—Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). During November, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process remained level, at 100.1% of a plan’s accounting liabilities (accumulated benefit obligation, or ABO). That means the estimated retiree PRT cost is now 100.1% of a plan’s ABO.

During the same time period, the average annuity purchase cost across all insurers in our index also remained the same as the prior month, at 103.3%. The competitive bidding process is estimated to save plan sponsors about 3.2% of PRT costs as of November 30, 2025.

“No movement in the MPBI as we saw stable rates throughout the month, but 100.1% on the competitive index is not a bad place to be,” said Jake Pringle, Milliman principal and co-author of the MPBI. “Third quarter PRT sales of $10.6 billion showed an increase in buy-in activity, along with an overall higher number of smaller and midsized buy-out contracts for the quarter.”

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. Individual plan annuity buyouts can vary based on plan size, complexity, and competitive landscape.

View the complete Milliman Pension Buyout Index. To receive regular updates with Milliman’s pension buyout analysis, contact us at pensionbuyout@milliman.com.

About Milliman

Milliman leverages deep expertise, actuarial rigor, and advanced technology to develop solutions for a world at risk. We help clients in the public and private sectors navigate urgent, complex challenges—from extreme weather and market volatility to financial insecurity and rising health costs—so they can meet their business, financial, and social objectives. Our solutions encompass insurance, financial services, healthcare, life sciences, and employee benefits. Founded in 1947, Milliman is an independent firm with offices in major cities around the globe. Visit us at milliman.com.

Contacts

Jake Pringle

Milliman, Inc.

Tel: +1 713 202 0819

jake.pringle@milliman.com