Case Studies

GRS MagVal™10 Projection Tool Helps Pension Fund Improve Benefit Security

During the last decade, one of our public defined benefit plan clients began to experience a declining workforce and shrinking payroll, which subsequently resulted in lower than expected contributions to the plan trust.   The plan, like many others, also suffered a severe decline in its funded status due to the 2008 financial crisis leading to…

GRS Helps Statewide Retirement System Eliminate Unfunded Retiree Liability

GRS began working with a statewide cost-sharing multiple employer retirement system that had a low funded ratio, despite employers making their full actuarially determined contributions. Prior to GRS becoming the actuary, the retirement system was using a funding method that effectively amortized gains and losses over 100 years, did not include many of the benefit…

GRS’ MagVal™ Plus Puts the Power of Benefit Design at City’s Fingertips

The City of Seattle wanted to explore alternative benefit designs so it could continue to provide meaningful benefits to long-service employees and achieve cost savings that would not adversely impact recruitment and retention goals. Through a competitive bidding process, the City hired GRS to provide benefit and cost projection technology that the City’s Retirement Team…

Innovative Benefit Design Helps State Control Pension Risk

Risk has become a focal point in pension plan management in recent years. Plan sponsors’ obligations for retirement benefits have been affected by a number of risks. One of the primary risks, investment risk, was borne out by the 2008-2009 financial crisis and continues to play a role due to a slower than expected economic…

GRS Helps Cash Balance Plan Take Charge of Contribution Rate Volatility

In 2008, GRS began serving the Texas Municipal Retirement System (TMRS). Our consultants soon noticed that the structure and operation of the plan had the potential to create extreme contribution volatility for participating employers. The team’s actuaries were able to detect the potential volatility problems because of their expertise with multiple-agent employer plans and the…

Groundbreaking Pension Study Proves that DB Design Is the Most Efficient Use of Taxpayer Dollars

Pension reform continues to capture the headlines in various forms such as proposed changes to plan structure, the effect of public pension debt on governments and taxpayers, the question of who should bear the risk inherent in the capital markets, and the issue of retirement security for current and future generations. Within all of the…

Alternate delivery model projected to save $100 million

Against the backdrop of a health care environment that increasingly centers around quality and cost outcomes, a State sponsored benefit program client wanted to implement a new health care delivery model that would align clinical and network strategies. GRS helped its client develop a model where the primary catalyst for cost containment would derive from improved…

Drug utilization analysis leads to improved PBM administration and savings of at least $50 million

Prescription drug costs are the third largest component of health care spending after hospitals and physician/clinician services, and recently Rx costs have been increasing more rapidly.  The importance of paying close attention to utilization patterns for pharmacy costs cannot be understated. At GRS, a core foundation of our consulting involves in-depth data mining and analysis…

Creative procurement process saves more than $450 million

A statewide client utilizing fully-insured HMO contracts was advised by our consultants to explore moving the plan into self-insured arrangements.  Our consultants recommended this change because of the potential to save hundreds of millions of dollars.  But our client had been deterred from moving forward due to health carriers indicating that cost savings could not…

Privatized Medicare solutions delivered more than $200 million in net savings

Managing retiree health care is a unique challenge for employers that provide Medicare eligible retirees with access to supplemental coverage and/or financial subsidies.  Employer provided supplemental coverage, which is offered as secondary to Parts A and B has become increasingly expensive.  At the same time, financial subsidies are failing to adequately help retirees offset the…