Independent Actuarial Consulting for Pension Plans: Beyond the Big 4
The pension actuarial consulting market is dominated by a handful of large firms—GRS, Milliman, Segal, and CavMac together account for roughly 63% of all U.S. public pension plan accrued liabilities. Yet dozens of independent firms serve the remaining market, often delivering deeper specialization and more competitive pricing for mid-market plan sponsors.
Why Independent Firms Matter
Independent actuarial consultancies operate without the conflicts of interest inherent in firms that also sell insurance products or investment management services. For CFOs and benefits directors, this independence translates into unbiased valuation assumptions, objective funding recommendations, and advice that prioritizes the plan sponsor's interests over cross-selling revenue.
Market Landscape
According to Reason Foundation's analysis of public pension actuarial assignments, the top five firms handle approximately 73% of studied public pension liabilities, while 27 additional firms share the remaining 27%. The private-sector pension market is even more fragmented, with hundreds of regional and specialized firms serving single-employer defined benefit plans.
| Firm | Market Focus | Notable Strength |
|---|---|---|
| Cheiron | Public, Taft-Hartley, Nonprofit | Employee-owned; 30+ years pension risk expertise |
| GRS | Public Sector | Largest public pension actuarial practice |
| CavMac | State & Local Government | $226B+ in plan unfunded liability evaluated |
| Foster & Foster | Multi-Employer, Public, Private | 400+ clients nationwide since 1979 |
Key Services to Evaluate
- Annual Valuations
- GASB 67/68 and GASB 74/75 compliance for public plans; ASC 715 for corporate sponsors
- Funding Policy Design
- Actuarially determined contribution (ADC) calculations and stress testing across economic scenarios
- Plan Design Consulting
- Benefit restructuring, hybrid plan conversions, and cost-sharing analysis
- Risk Assessment
- Asset-liability modeling, sensitivity analysis, and scenario planning for investment and demographic risks
Choosing the Right Firm
When evaluating independent actuarial consultants, consider whether the firm has enrolled actuaries (required for IRS filings), MAAA credentials (Member, American Academy of Actuaries), and experience with your specific plan type—whether single-employer DB, multiemployer, public retirement system, or church plan. Firms that specialize in your sector will understand the regulatory nuances that generalist firms may miss.