Administration capabilities
Ensure you have the infrastructure to handle the termination process, like education sessions, call centers, and even custom websites to provide quick access for participant questions and help. Coordination between all parties takes expert skills at project management, skills which Milliman can bring to the administration of your plan termination. We can support your team with our administrative software as a service, or you can fully outsource administration to Milliman.
Data readiness assessment
Get a realistic assessment of your plan’s data and lay out a systematic approach to resolving issues and locating vital, missing information. With a host of required notices, calculations, and confirmations that occur before, during, and after plan termination, clean data is a direct path to a lower termination cost. If your data isn’t ready, Milliman can audit it and establish a process to collect what you need to terminate.
Cash contribution modeling
Target the right termination horizon based on the cash contribution level that best supports your budget. With most frozen plans underfunded, a cash contribution is often necessary to terminate, but knowing when and how much to infuse can be a challenge. Our interactive model can help you execute a disciplined cash contribution policy, and one that walks hand-in-hand with your asset allocation strategy toward plan termination.
Asset allocation strategy
Don’t let investment risk impact the time horizon for terminating your plan. Leverage Milliman’s expertise with asset allocation strategies to keep your financial and administrative progress in sync, knowing when your assets should shift to preserve progress and make advances. With an interactive model to show you where you are today versus where you need to be, you’ll avoid an “auto pilot” asset allocation that could prevent you from reaching your goal.
Ongoing monitoring
Easily track the funded status of your plan with innovative Milliman tools like FutureCost Online and Pension Performance Dashboard. Our projection tools monitor your plan on a daily, monthly, or quarterly basis, so when your plan is ready to terminate, you’ll know.
Liability derisking
Thoughtful derisking is a key element to keeping a plan on track toward termination and reducing cost. Our expert consultants will work to reduce your plan size via options like lump sum windows, spin-and-terms, and annuity placements. We will identify optimal segments of the plan population to target for derisking, considering factors such as location, status, benefit size, service, and more.
Milliman Frozen Plan Solutions benefits
Work in partnership
Let Milliman help you visualize and meet your end goal, moving beyond perpetual management.
Define the right path for your business
Our sophisticated modeling will help you discern the best path for your organization’s risk tolerance, bigger financial picture, and desired time horizon, maximizing savings and minimizing risk.
Take it one step at a time
Move forward with infrastructure and data improvements so they don’t hold you up later.
Frozen Pension Plans: The Way Forward
What does it really take to terminate your frozen plan? This ongoing series explores the hidden obstacles and challenges — and potential solutions — along the way.
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