Tag: life expectancy
But state and local plans do a pretty good job of updating their life expectancy assumptions. The fact that people are living longer is good news from a human perspective. But longer lifespans also make defined benefit pension plans more expensive because sponsors must pay benefits to retirees for a longer period of tim…
The brief’s key findings are: Rising life expectancy makes defined benefit pension plans more expensive. The question is the extent to which state and local plans have already incorporated rising life expectancy into their cost estimates. The analysis explores how plan liabilities and funded ratios would be affected by using RP-2014, a new mortality tab…
