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Measuring UVBs for Variable-Rate Premiums: The Alternative vs. Standard Method Election Due October 16, 2023
October Three Consulting Link to more items from this source
Aug. 31, 2023

"The combination of [1] an unprecedented gap between standard and alternative interest rates due to the sharp increase in rates since 2021 and [2] the steep increase in the premium rate, from 0.9% of UVBs in 2013 to 5.2% in 2023, means that the dollar amounts at stake with respect to the VRP calculation dwarf all past years. For a typical $100 million plan, the decision could easily be worth $1 million or more."

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