Customized Buyout Price Monitoring
CBPM builds upon the analysis done for The BCG PRT Index by offering similar measurements customized to reflect the characteristics of a specific DB plan.
CBPM is designed for and delivered to plan fiduciaries who are pursuing an LDI strategy that takes into account the future liability obligations of a DB plan, which are reasonably anticipated to include annuity purchases and lump sum payment options. CBPM provides DB plans with up-to-date insight on expected liabilities and consults on the de-risking process and timing in support of investment strategy. CBPM includes:
- Liability and asset data on a monthly basis to improve plan investment strategy.
- Online access to monthly reports, including customizable “Exit Liability”, as well as annuity purchase liability, lump sum liability, market liability, PBGC liability, and minimum funding liability.
- Quarterly consultation regarding pension plan, including funded status, pension trends, and future investment and contribution considerations.
- Ad hoc access to BCG consultants related to liability and funded status amounts in monthly reports.
- Consultation with plan fiduciaries and advisers regarding the de-risking process and timing involved to support investment strategy.
- Ongoing lump sum "take rate" modelling for various plan participant groups (e.g., actives, terminated vesteds, retirees) to support the sufficiency of plan liquidity requirements and investment strategy.
- Plan specific information and participant data provided by the plan fiduciary (generally annually or after significant de-risking events).
- Annuity purchase liability information based on annuity pricing rates provided by multiple insurers currently active in the single premium group annuity marketplace.
Participating Insurance Providers
Fun Fact: The bridge on the home page of BCG’s website is the Georgia Street Bridge in Hillcrest, San Diego, CA. We chose this bridge because it clearly denotes a gap. This resonates with us at BCG as we see ourselves as helping our clients bridge their pension gap!