Milliman, Inc.

https://www.milliman.com

Milliman, Inc. is an international actuarial and consulting firm headquartered in Seattle, Washington. Founded in 1947, the firm's mission is "To serve our clients to protect the health and financial well-being of people everywhere." It operates as an independent firm, owned and managed by its principals.

Milliman provides a wide range of actuarial, risk management, and related technology and data solutions. Its consulting practices span employee benefits, healthcare, investment, life insurance and financial services, and property and casualty insurance. The firm serves a diverse client base including businesses, financial institutions, governments, unions, educational institutions, and nonprofit organizations globally. Key offerings include data analysis, predictive analytics, and proprietary tools such as the Milliman 100 Pension Funding Index, Milliman Medical Index, and Milliman Mind software.

Dermot Corry serves as Milliman's President and Chief Executive Officer. In recent news, Milliman launched two active exchange-traded funds (ETFs) in April 2026, the Milliman Healthcare Inflation Guard ETF and the Milliman Healthcare Inflation Plus ETF, aimed at addressing rising healthcare costs. The firm's Milliman Mind® software also received the InsuranceERM Asia Pacific Award for Actuarial Modelling Solution of the Year in March 2026. Milliman continues to be a prominent player in the actuarial and consulting industry, with its analyses frequently cited regarding corporate and public pension funding levels.

Latest updates

U.S. Corporate Pension Plans Post Second Year of Surplus

Event summary

  • Milliman's 2026 Pension Funding Study reveals a funded ratio of 103.8% for the 100 largest U.S. corporate defined benefit pension plans in fiscal year 2025.
  • This marks the second consecutive year of a funding surplus, a milestone not seen since before the 2008 financial crisis.
  • Plan assets reached $1.301 trillion, exceeding liabilities of $1.253 trillion, resulting in a $48.1 billion surplus.
  • Strong investment returns (8.8%) significantly outpaced the assumed rate of return (6.61%), while the discount rate decreased slightly.
  • 41 companies hold frozen plans with an estimated $54.9 billion in excess assets.

The big picture

The resurgence of pension surpluses represents a significant shift from the post-2008 financial crisis era, alleviating pressure on corporate balance sheets and potentially freeing up capital for other investments. While strong investment performance has been the primary driver, the long-term sustainability of these surpluses hinges on continued favorable market conditions and disciplined actuarial assumptions. This trend could also influence broader retirement benefit strategies and potentially spur renewed interest in defined benefit plans.

What we're watching

Plan Reopening
The presence of significant excess assets in frozen plans may incentivize more companies to reopen defined benefit plans, though regulatory and economic headwinds could dampen this trend.
Contribution Strategy
Employer contributions are rising, and the shift to net pension income suggests a potential re-evaluation of contribution strategies and asset allocation moving forward.
Rate Sensitivity
The modest decrease in the discount rate contributed to liability increases; future fluctuations in interest rates will significantly impact funded status and require careful monitoring.

Milliman Launches Healthcare Inflation ETFs, Capitalizing on Rising Costs

Event summary

  • Milliman launched two actively managed ETFs, MHIG (Healthcare Inflation Guard) and MHIP (Healthcare Inflation Plus), on NYSE Arca, beginning trading on April 21, 2026.
  • MHIG aims to match U.S. healthcare cost inflation, while MHIP seeks to exceed it, both based on Milliman’s Health Trend Guidelines (HTGs).
  • Milliman FRM, managing $242 billion in assets, advises the ETFs.
  • The ETFs utilize a quantitative model and a multi-asset portfolio approach, including equities, bonds, and alternatives.
  • MHIG incorporates a legacy Healthcare Investment Solutions strategy, utilizing a 351 Exchange.

The big picture

Milliman’s move into ETFs targeting healthcare inflation represents a significant expansion of its business, leveraging its established position as a leading healthcare consultancy and actuarial firm. The launch addresses a growing investor need to hedge against the persistent and accelerating rise in U.S. healthcare costs, which are outpacing general inflation and straining household finances. This initiative could establish a new asset class and potentially disrupt traditional healthcare investment strategies.

What we're watching

Performance Tracking
The ETFs' ability to accurately track or exceed healthcare inflation, as measured by Milliman’s HTGs, will be a key indicator of their success and the validity of their methodology.
Adoption Rate
The rate at which institutional investors, wealth managers, and individual savers incorporate the ETFs into their portfolios will determine the long-term viability of the product offering.
Regulatory Scrutiny
Given the unique nature of the ETFs and their reliance on Milliman’s proprietary data, increased regulatory scrutiny of the HTGs and the ETFs’ methodology is possible.

Milliman Claims Top Recordkeeper Honors Amidst DC Plan Complexity

Event summary

  • Milliman was recognized as a 2026 PLANSPONSOR Best in Class defined contribution (DC) recordkeeper, ranking first in the >$200M–$1B plan asset size category.
  • The firm has accumulated 218 PLANSPONSOR Best in Class awards since 2017.
  • Hector Palacios, a Milliman DC consultant, received the 2026 PLANSPONSOR Service Star Award from a pool of 390 nominations.
  • Kyle Hughes, a Milliman principal, highlighted the firm's commitment to supporting plan sponsors navigating complex environments.

The big picture

Milliman’s awards underscore the growing complexity of defined contribution plan administration, where sponsors are increasingly seeking independent, transparent, and technologically advanced recordkeeping solutions. The firm’s success in this space, particularly within the $200M–$1B AUM segment, positions it as a key player in a market facing heightened regulatory and participant expectation pressures. The Service Star award highlights the importance of personalized client relationships in retaining business within this competitive landscape.

What we're watching

Client Retention
The consistent recognition from PLANSPONSOR suggests strong client satisfaction, but the firm must actively manage client relationships to prevent attrition as competitors seek to capitalize on Milliman’s success.
Regulatory Scrutiny
Increased regulatory focus on DC plan fees and participant outcomes could pressure Milliman to further demonstrate the value proposition of its services and maintain its competitive edge.
Innovation Pace
Milliman’s commitment to ‘continuously raising the bar’ implies a need for ongoing innovation in its DC recordkeeping platform; the firm’s ability to adapt to evolving participant needs and technological advancements will be critical for sustained success.

Pension Risk Transfer Costs Inch Higher Amid Economic Instability

Event summary

  • Milliman's Pension Buyout Index (MPBI) shows competitive pension risk transfer (PRT) costs increased to 100.5% of accounting liabilities (ABO) in February 2026, up from 100.4% the prior month.
  • Average annuity purchase costs also rose 10 basis points, reaching 103.6% of ABO.
  • The competitive bidding process continues to save plan sponsors an estimated 3.1% on PRT costs.
  • Milliman principal Jake Pringle noted that the MPBI remained relatively stable despite a drop in accounting interest rates.
  • The MPBI compares the FTSE Above Median AA Curve to annuity purchase composite interest rates from nine insurers.

The big picture

The slight increase in PRT costs, despite falling interest rates, signals a tightening of pricing within the annuity market. This trend reflects broader concerns about economic stability and its potential impact on insurer solvency and investment returns. While the competitive bidding process still offers significant savings, plan sponsors should carefully evaluate the long-term implications of these cost fluctuations when considering de-risking strategies.

What we're watching

Rate Volatility
Further global economic instability could exacerbate fluctuations in annuity purchase rates, potentially impacting the attractiveness of PRT strategies.
Competitive Landscape
The 3.1% cost savings from competitive bidding may be vulnerable if insurer participation decreases or bidding becomes less aggressive.
Rate Sensitivity
The MPBI's resilience to accounting interest rate decreases suggests a complex interplay of factors; the pace at which these factors realign will dictate future index movements.

Corporate Pension Funding Ratios Reach 2001 Levels Amidst Rate Volatility

Event summary

  • Milliman's 100 Pension Funding Index (PFI) shows the funded ratio for the 100 largest U.S. corporate pension plans reached 109.4% as of February 28, 2026.
  • Discount rates fell 14 basis points to 5.33%, increasing the projected benefit obligation to $1.235 trillion.
  • Monthly asset returns of 2.15% added $22 billion to plan assets, bringing the market value to $1.351 trillion.
  • This marks 11 consecutive months of funding improvements, but the funded ratio remains below the July 2001 peak of 109.9%.

The big picture

The recent surge in pension funding ratios provides temporary relief for corporate sponsors, but the underlying vulnerabilities remain. The sensitivity to interest rate fluctuations underscores the ongoing challenge of managing long-term liabilities in a volatile economic environment. While the current funded levels are the best in decades, they are not a guarantee against future shocks, and proactive risk management will be crucial.

What we're watching

Rate Sensitivity
Further declines in interest rates, as cautioned by Milliman, could quickly erode the gains observed in February and pressure funding levels.
Forecast Divergence
The wide range between Milliman’s optimistic and pessimistic forecasts (121% vs. 93% funded ratio by 2027) highlights the significant impact of macroeconomic conditions on pension plan health.
Surplus Management
Plan sponsors will need to actively manage surplus, balancing the desire for risk-taking with the need to maintain adequate buffers against market downturns and rate volatility.

Pension Risk Transfer Costs Edge Higher Despite Favorable Index Levels

Event summary

  • Milliman's Pension Buyout Index (MPBI) indicates a slight increase in competitive pension risk transfer (PRT) costs, rising from 100.3% to 100.4% of accounting liabilities (ABO) in January 2026.
  • The average annuity purchase cost also increased, moving from 103.4% to 103.5% of ABO.
  • Plan sponsors are currently estimated to save 3.1% on PRT costs through competitive bidding.
  • The MPBI has remained below 101% for nine consecutive months.

The big picture

The marginal increase in PRT costs, while small, signals a potential inflection point in a market that has been exceptionally favorable to plan sponsors. The Milliman Pension Buyout Index's continued tracking of this metric is crucial for understanding the evolving landscape of defined benefit pension plan de-risking strategies, particularly as interest rate volatility persists. This trend underscores the ongoing pressure on corporate treasuries to manage legacy pension obligations.

What we're watching

Cost Sensitivity
Further increases in interest rates or insurer capacity constraints could quickly erode the cost savings currently benefiting plan sponsors, potentially pushing the MPBI above 101%.
Competitive Dynamics
The continued reliance on the FTSE Above Median AA Curve as a benchmark suggests that shifts in broader credit markets will disproportionately influence PRT pricing.
Index Sustainability
The 3.1% cost savings from competitive bidding may prove unsustainable if insurer participation in the PRT market decreases, reducing competitive pressure.

Multiemployer Pension Funding Surges to Historic High Amid Asset Gains

Event summary

  • Milliman's 2025 Multiemployer Pension Funding Study (MPFS) reveals an aggregate funded percentage of 103% as of December 31, 2025.
  • This marks the highest funded percentage in the 20-year history of the MPFS, a 50-percentage-point improvement since the 2008 financial crisis.
  • Strong asset gains, contributing to a 13.9% portfolio return in 2025, were a primary driver of the funding increase.
  • Total contributions to multiemployer plans have exceeded benefit expenses and administrative costs, totaling $331 billion versus $212 billion over the past decade.
  • Approximately $75 billion of the $79 billion allocated through the American Rescue Plan Act’s Special Financial Assistance (SFA) program has been distributed.

The big picture

The significant improvement in multiemployer pension funding represents a notable turnaround from the challenges faced during and after the 2008 financial crisis. While asset gains have played a substantial role, proactive measures like increased contributions and benefit adjustments have also contributed. However, the reliance on market performance and the temporary nature of SFA funding highlight ongoing vulnerabilities within the system.

What we're watching

Asset Volatility
The reliance on strong asset performance to bolster funding levels leaves multiemployer plans vulnerable to market downturns, potentially reversing recent gains.
Contribution Sustainability
The continued ability of plans to maintain or increase contribution rates will be crucial for sustaining the current funded status, given demographic pressures and potential economic headwinds.
SFA Impact
The remaining $4 billion of SFA funds will be distributed, but the long-term impact of this temporary boost on plan solvency remains to be seen.

Milliman Secures Taft-Hartley Defined Contribution Client

Event summary

  • Milliman has been selected as the defined contribution plan administrator for the newly established Minnesota Cement Masons Defined Contribution Retirement Fund.
  • The fund, formed May 1, 2025, serves members of Cement Masons, Plasterers, and Shophands Local 633 across Minnesota, North Dakota, and Northwest Wisconsin.
  • The fund is projected to eventually cover approximately 900 participants.
  • Milliman's Gerald Erickson, a principal and DC Taft-Hartley practice leader, will be a key contact for the fund.

The big picture

The acquisition of the Minnesota Cement Masons fund underscores Milliman’s continued focus on the Taft-Hartley market, a niche segment often overlooked by larger retirement services providers. Taft-Hartley plans represent a significant, albeit complex, portion of the retirement landscape, and Milliman’s expertise positions them to capitalize on this demand. This win also highlights the importance of specialized expertise and strong relationships in securing new business within this sector.

What we're watching

Fund Growth
The fund's ability to reach its projected 900 participant target will indicate the strength of Local 633’s membership and Milliman’s effectiveness in attracting and retaining members.
Competitive Landscape
Milliman’s success in securing this client suggests increasing competition within the Taft-Hartley defined contribution plan administration space, potentially impacting pricing and service offerings.
Service Provider Integration
How seamlessly Milliman integrates with the fund's existing service providers, as highlighted by Local 633, will be a key indicator of overall operational efficiency and client satisfaction.

Pension Risk Transfer Costs Edge Higher Despite Regulatory Clarity

Event summary

  • Milliman's Pension Buyout Index (MPBI) shows competitive PRT costs increased 20 basis points in December 2025, reaching 100.3% of accounting liabilities (ABO).
  • Average annuity purchase costs also rose slightly, from 103.3% to 103.4%.
  • Competitive bidding is currently saving plan sponsors an estimated 3.1% on PRT costs.
  • The U.S. Department of Labor recently issued an amicus brief clarifying fiduciary protections in pension risk transfer processes.

The big picture

The slight increase in PRT costs, despite regulatory clarity, highlights the ongoing tension between plan sponsor demand and insurer capacity. While the DOL's guidance provides a degree of comfort for fiduciaries, the underlying economics of pension risk transfer remain sensitive to market conditions and insurer pricing. This trend suggests that PRT will likely remain a viable, but potentially costly, option for plan sponsors seeking to offload retiree liabilities.

What we're watching

Regulatory Response
The DOL's clarified guidance could accelerate PRT adoption, but its practical impact will depend on how fiduciaries interpret and apply it.
Cost Pressures
Continued upward pressure on annuity purchase costs may limit the appeal of PRT for smaller or less well-funded plans.
Market Dynamics
The pace at which insurers expand capacity for PRT transactions will influence the availability and pricing of these deals.

Milliman LTC Index Highlights $135K Average Cost, Gender Disparity

Event summary

  • Milliman launched its first Long-Term Care Index (LTC Index) on January 22, 2026.
  • The index estimates the average lifetime cost of formal long-term care at $135,000 for a 65-year-old in 2025.
  • The average cost is $171,000 for women and $98,000 for men.
  • Approximately 60% of women and 53% of men are projected to use formal, paid long-term care services in their lifetime.
  • The index projects 4.1 million Americans will turn 65 annually through 2027.

The big picture

Milliman’s LTC Index provides a much-needed benchmark for a market facing increasing demand and significant financial risk. The substantial gender disparity in projected costs highlights the need for tailored financial planning and insurance solutions. The index’s release underscores the growing importance of actuarial data and risk modeling in navigating the challenges of an aging population and the rising costs of care.

What we're watching

Demographic Shifts
The index's projections of LTC usage rates will be heavily influenced by the ongoing aging of the US population, requiring continuous recalibration of cost estimates.
Regulatory Response
Government policies regarding Medicaid and other long-term care funding sources will significantly impact the commercial LTC insurance market and the index's benchmark costs.
Insurance Innovation
The LTC insurance industry will likely respond to the index's data by exploring new product designs and risk mitigation strategies to improve affordability and market penetration.

Milliman CareFlowIQ Partners with Heuro Health to Advance Obesity Care with Real-Time Data

Event summary

  • Milliman CareFlowIQ has signed Heuro Health as a client, integrating its clinical intelligence platform into Heuro's obesity care program.
  • Heuro Health combines GLP-1 medications with physician-led coaching and neuroplasticity-based interventions.
  • Milliman CareFlowIQ will provide risk stratification and real-time clinical insights, tracking metrics like HbA1c, weight loss, and medication adherence.
  • The partnership aims to improve personalized care delivery, enhance measurable outcomes, and demonstrate financial benefits for employers.

The big picture

The collaboration reflects a growing trend of healthcare providers leveraging data analytics to personalize treatment and manage costs, particularly in areas like obesity care where GLP-1 medications are transforming patient outcomes. Milliman’s entry into this space positions them to capitalize on the increasing demand for data-driven solutions within the value-based care landscape. This partnership also highlights the increasing importance of real-time data and actionable insights in driving patient engagement and achieving measurable results.

What we're watching

Cost Modeling
The ability to align treatment costs with predictable models will be critical for employer adoption and Milliman's ability to demonstrate ROI.
Data Integration
The success of this partnership hinges on the seamless integration of Milliman’s data platform with Heuro’s existing care pathways and workflows.
GLP-1 Impact
How the partnership’s outcomes are affected by the evolving GLP-1 market and potential shifts in access and reimbursement will be a key indicator of long-term viability.

Milliman Secures $500M Defined Contribution Client in Oregon

Event summary

  • Milliman has added the Cascade pension and 401(k) plans as a defined contribution client.
  • The plans cover 5,900 participants and manage over $500 million in assets.
  • Cascade serves members of IBEW Local Unions 280, 659, and 932 in Oregon.
  • Cascade selected Milliman citing expertise, flexibility, and a non-solicitation policy.

The big picture

This deal highlights the ongoing trend of defined contribution plans, particularly those serving union members, seeking specialized administrative support to manage costs and improve participant outcomes. While the $500 million AUM is not transformative for Milliman’s overall business, it demonstrates their continued success in securing multiemployer plan clients, a niche market often underserved by larger providers. The non-solicitation clause underscores Cascade’s focus on participant interests and could influence future vendor selection decisions.

What we're watching

Transition Risk
The success of Milliman’s onboarding will hinge on a smooth transition for Cascade’s participants, potentially impacting participant satisfaction and retention.
Competitive Landscape
Milliman’s win suggests a growing trend of multiemployer plans outsourcing administration, which could intensify competition among benefits administration firms.
Regulatory Scrutiny
Given the involvement of union-affiliated plans, Milliman’s adherence to ERISA regulations and fiduciary duties will be under continued scrutiny.

Milliman Wins CMS Fraud Detection Competition, Showcasing Explainable AI

Event summary

  • Milliman won the CMS “Crushing Fraud Chili Cook-Off” competition, announced December 23, 2025.
  • The winning solution utilizes explainable AI (XAI) to identify fraud, waste, and abuse (FWA) in Medicare fee-for-service claims data.
  • Milliman’s tool generates a composite risk score for providers, enabling prioritization of investigations and identification of coordinated fraud networks.
  • The competition involved ten finalists who received access to CMS data to apply their AI techniques.

The big picture

The CMS competition highlights a growing trend toward leveraging AI and actuarial science to combat fraud and improve efficiency in public sector programs. This initiative signals a shift from reactive fraud detection to proactive prevention, potentially reducing substantial losses within Medicare and Medicaid. Milliman’s win underscores the value of explainable AI, which is increasingly critical for ensuring accountability and transparency in AI-driven decision-making within government.

What we're watching

Deployment Scale
The speed at which CMS integrates Milliman’s solution across its broader programs will determine the tangible impact on fraud reduction and program integrity.
Competitive Response
Other actuarial and AI firms will likely accelerate their development of XAI solutions for public sector applications, intensifying competition for government contracts.
Regulatory Scrutiny
Increased reliance on AI in government programs will likely draw greater regulatory scrutiny regarding algorithmic bias and transparency, potentially impacting Milliman’s future contracts.

Pension Risk Transfer Costs Hold Steady Despite Increased Buyout Activity

Event summary

  • Milliman's Pension Buyout Index (MPBI) remained at 100.1% in November 2025, representing the estimated cost to transfer retiree pension risk.
  • The average annuity purchase cost across insurers in the index also held steady at 103.3%.
  • Plan sponsors are saving an estimated 3.2% on PRT costs through competitive bidding.
  • Third-quarter 2025 PRT sales reached $10.6 billion, indicating increased buyout activity.
  • Smaller and mid-sized buyout contracts comprised a larger portion of the total activity in Q3 2025.

The big picture

The stability of the MPBI suggests a degree of equilibrium in the pension risk transfer market, despite increased activity. This pricing environment benefits plan sponsors seeking to offload liabilities, but also indicates that insurers are maintaining disciplined underwriting. The increased prevalence of smaller deals suggests a broadening of PRT adoption beyond the largest, most complex plans.

What we're watching

Market Volatility
Continued macroeconomic uncertainty could impact insurer pricing and the attractiveness of PRT, potentially disrupting the stability observed in November.
Competitive Landscape
The 3.2% savings from competitive bidding suggests a dynamic market; further consolidation or new entrants could alter this advantage.
Deal Size Trends
The rise in smaller and mid-sized buyout contracts may indicate a shift in plan sponsor strategies, and the pace at which this trend continues will reveal broader adoption patterns.
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