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


OneAmerica
AIG
MetLife
MassMutual
Mutual of Omahal
Pacific Life
Prudential
Western & Southern Financial Group
Principal
Securian
L&G
F&G
Athene

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!