The most common preparatory steps taken include an evaluation of the financial impact of a pension risk transfer; discussions with stakeholders; data review/cleanup; and, exploration of the PRT solutions.
A study by the CRR finds that state and local pension funding is expected to improve in 2017 due to strong market returns, but a new
approach to providing adequate contributions is needed to make the most out any recovery.
Most companies used a single weighted average discount rate to measure the interest cost and service cost components of benefit cost, but PwC found, beginning in 2015, many companies adopted a multiple discount rate approach.
State Treasurer Nancy K. Kopp says, “Recognizing that both the inflation experience and expectations for future inflation remain lower than the rate currently assumed, the Board felt it reasonable to reduce the expected return accordingly.”