The Pension Benefit Guaranty Corporation (PBGC) has issued an RFI because it is undertaking a review of its Pension Insurance Modeling System (PIMS) with a goal to identify potential improvements to the existing approach and to update the underlying technology. This RFI seeks to create a state-of-the-art pension modeling tool for this development, modernization, and enhancement (DM&E) effort. The anticipated outcome of this enhancement is to:
- Improve performance – Currently a stochastic run takes about 20 minutes for SE and 1.5 hours for ME. Under the current version, a stochastic run has 500 economic scenarios and is projected out 20 years under each scenario. PRAD would like to increase the economic scenarios to 10,000 for each stochastic run.
- Improve flexibility – Currently it takes at least a couple of weeks for small changes and up to several months for major changes. Our expectation is to allow for changes completed within days with the new models.
- Retain institutional knowledge on the models – Currently all development work is completed by a contractor. PRAD staff has only minimal involvement in the design and coding structure of the model.
- Decrease maintenance cost/data collection methodology – PIMS requires significant data collection every year from the Form 5500 data, including attachments and financial information from…”