The Variable Annuity Pension Plan (VAPP) is now the Milliman Sustainable Income PlanTM (SIP).
In this video blog, I discuss the retirement risk allocation between a plan sponsor and the plan's participants in a variable annuity pension plan (VAPP) structure compared with risks associated with traditional defined benefit (DB) plans and defined contribution (DC) plans. I also explain how a VAPP can reduce risks of inflation, portability, and interest rate.
Retirement risks side by side: DB vs. DC vs. VAPP