Dietrich Pension Risk Transfer Index slightly down

The trend of settling pension liability via annuitization has been gaining significant steam recently. The index impacts settlement costs, with higher index values denoting a reduction in the settlement cost environment.

“With more and more plan sponsors settling pension liability via annuitization, appetite for risk, understanding cost factors and monitoring market conditions will continue to be top priorities for prepared sponsors considering settlements. Who knows if we have hit bottom or will continue the downward trend for the foreseeable future,” said Geoff Dietrich, vice president of Dietrich & Associates.