DEFINED BENEFITS CONSULTING

Milliman Frozen Plan Solutions

We see the way forward.

Milliman Frozen Plan Solutions

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Overview

Mapping the terrain

Managing a hard-frozen defined benefit plan can feel like being lost in uncharted territory — with no clear path to your destination, every move could be a wrong turn. Milliman has the tools and expertise to map the terrain and help you find your way to termination.

SOLUTION

Finding the path

With a frozen plan, the barriers can feel impassable, halting you in your tracks. Between a lack of sufficient administrative infrastructure, incomplete data, and the risk of spiraling administrative costs and capital injections, it can seem impossible to know which challenge to solve first. Our holistic, systematic approach guides you around interrelated risk, time horizon, cash funding, and administrative hazards, bringing you closer to the seemingly unachievable goal of terminating your frozen plan.

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Considerations

Key considerations for strategic termination

No two frozen plans are alike. We find your path to termination by assessing six key aspects of your plan's readiness.

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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.

Learn how we reduce your admin burden

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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.

Learn how we get you ready

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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.

Learn how we find your contribution

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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.

Learn how we help you find balance

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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.

Learn how we help you know when to act

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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.

Learn how we reduce your risk

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Breaking new ground

Our consultants are innovating the way plans are terminated. Just one example: we’re using our IntelliScript data to identify groups for derisking and reduce the cost of plan termination. With Curv® by IntelliScript, we can help you selectively shed longevity risk and improve the liability profile of your plan — before you pass that crucial data to an insurance provider in the final step of a plan termination.

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BENEFITS

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.

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Publication series

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.

Explore the series

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Ready to learn more?

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INSIGHT

Related insight

Index

Pension Funding Index

Read the article

Index

Milliman Pension Buyout Index

Read the article

Article

The big thaw: Why now is the time to consider unfreezing your defined benefit plan

Rising interest rates and regulatory changes have helped raise funding levels of DB plans enough to make unfreezing them a sensible option for many sponsors.

Read the article

Case studies

Considerations for unfreezing defined benefit plans to drive business value

We examine the strategy and results for three Milliman clients that chose to unfreeze their traditional retirement plans.

Read the case studies

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PRODUCTS

Products related to Milliman Frozen Plan Solutions

Pension modeling & analytics

FutureCost

Project pension assets and liabilities into the future to answer complex questions and make data-driven decisions.

Learn more

Pension administration and communication

Pension administration & communication

Milliman Actuarial Retirement Calculator (MARC)

Administer defined benefit and cash balance pension plans with one of the industry's leading retirement planning and communication tools.

Learn more

Pension plan management

Milliman Daily Pension Tracker

Monitor pension plan volatility by the day to make rapid decisions about derisking and take advantage of market shifts.

Learn more

Pension funding & FAS reporting

Pension Performance Dashboard

See how movements in capital markets affect your pension plan's financial status, with real-time updates on projected funded status, and FAS expense.

Learn more

Retirement benefits administration platform

Millimanbenefits.com

Empower your retirement plan to achieve your business objectives through our state-of-the-art outsourcing services combined with leading-edge financial wellness education.

Learn more

Milliman Frozen Plan Solutions

Milliman Frozen Plan Solutions

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Mapping the terrain

Finding the path

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Key considerations for strategic termination

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Administration capabilities

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Data readiness assessment

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Cash contribution modeling

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Asset allocation strategy

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Ongoing monitoring

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Liability derisking

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Breaking new ground

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Milliman Frozen Plan Solutions benefits

Work in partnership

Define the right path for your business

Take it one step at a time

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Frozen Pension Plans: The Way Forward

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Ready to learn more?

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Related insight

Pension Funding Index

Milliman Pension Buyout Index

The big thaw: Why now is the time to consider unfreezing your defined benefit plan

Considerations for unfreezing defined benefit plans to drive business value

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Products related to Milliman Frozen Plan Solutions

FutureCost

Milliman Actuarial Retirement Calculator (MARC)

Milliman Daily Pension Tracker

Pension Performance Dashboard

Millimanbenefits.com

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We’re here to help

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Milliman Frozen Plan Solutions

Finding the path

Key considerations for strategic termination

Administration capabilities

Data readiness assessment

Cash contribution modeling

Asset allocation strategy

Ongoing monitoring

Liability derisking

Breaking new ground

Milliman Frozen Plan Solutions benefits

Work in partnership

Define the right path for your business

Take it one step at a time

Frozen Pension Plans: The Way Forward

Ready to learn more?

Related insight

Pension Funding Index

Milliman Pension Buyout Index

The big thaw: Why now is the time to consider unfreezing your defined benefit plan

Considerations for unfreezing defined benefit plans to drive business value

Products related to Milliman Frozen Plan Solutions

FutureCost

Milliman Actuarial Retirement Calculator (MARC)

Milliman Daily Pension Tracker

Pension Performance Dashboard

Millimanbenefits.com

We’re here to help