Project (and protect) your retirement plan's future
FutureCost is a powerful modeling tool that projects the assets and liabilities of a pension plan into the future. For each year, full actuarial valuation results are re-produced, including plan contribution requirements, funded status, accounting expense, and balance sheet impacts. The model can be run with one or more deterministic scenarios for future liability discount rates, inflation, investment returns, and contribution patterns, or can be used to generate a full set of stochastic results that provide the sponsor with a range of possible outcomes for each measure and the estimated probability of those outcomes.
FutureCost gives pension plan sponsors an exclusive window to the future for making smart decisions today.
Ask questions and expect answers
There is no limit to the number of scenarios that FutureCost can project in order to help plan sponsors answer complex "what if?" questions about future pension plan obligations, including:
- What if liability discount rates fluctuate?
- What if asset returns are different than expected?
- What if we make an investment strategy change?
- What if we come up with a different contribution strategy?
- What if we make a benefit change?
- What if the covered population changes?
FutureCost provides a greater understanding of the risk/reward factors of alternative investment strategies in terms of key variables (plan contributions, funded ratios, and accounting values).
- Informs plan sponsors about the possible range of pension plan contributions and accounting expense over a period of 10 years or more
- Helps plan sponsors decide when to implement plan design changes, if at all
- Arms plan sponsors with the information needed to make sound risk-budgeting decisions about plan assets
FutureCost by Milliman is both a microscope for examining short-term risk and a telescope for viewing long-term levels, trends, and variability in the key costs and financial measures that affect corporate, multiemployer, and public pension plan sponsors. At the hands of Milliman consultants, FutureCost offers the unique flexibility needed to make confident choices in the midst of a constantly changing economic climate.