A key benchmark that gauges the relative attractiveness of annuitizing pension liabilities has remained nearly unchanged since January, according to a press statement from Dietrich & Associates.
Dietrich & Associates, Inc., a Philadelphia-based provider of institutional annuity brokerage and consulting services, has disclosed that The Dietrich Pension Risk Transfer Index was nearly unchanged from the prior month’s level. The index as of February 1 was 86.35, as compared to 86.65 at the same time in January.
The net unchanged position, the company says, was driven by “modestly lower annuity discount rates, which were offset by modestly higher pension funding levels.” The current annuity discount rate proxy embedded within the index is at 3.08%.