The Variable Annuity Pension Plan (VAPP) is now the Milliman Sustainable Income PlanTM (SIP).
In recent months, we have featured quite a few articles on the resurgence in popularity of variable annuity pension plans (VAPPs). They provide lifelong inflation-protected benefits to participants while employers make predictable plan contributions, similar to 401(k) plans.
In this presentation, I discuss how funding a VAPP compares with funding a traditional defined benefit pension plan. The presentation also touches on how Milliman helps plan sponsors stabilize benefits for retirees through reserves.
Plan funding side by side: Traditional DB and VAPP