Dietrich Pension Risk Transfer Index remains flat

The slight rise in the index was attributed to flat pension funding levels. The current annuity discount rate proxy embedded within the index dropped five basis points and now sits at 2.56 percent. That change, however, was offset by a slight increase in interest rate spread levels.

Jay Dinunzio, senior consultant at Dietrich & Associates said, “The economic outlook remains uncertain. Equity indices are reaching historical highs, against a backdrop of political dysfunction surrounding the nation’s budget and debt issues. One thing remains clear that pension funding levels have improved significantly over the last six months, and now may be an ideal time for pension committees to reconsider their strategic asset allocation and further investigate the cost/benefits of a pension risk transfer transaction.”