Dietrich Pension Risk Transfer Index dips slightly

In a release detailing the latest index results, Geoff Dietrich, vice president of Dietrich & Associates, stated that the market correction was anticipated and was facilitated by Federal Reserve Chairman Ben Bernanke’s update on the economy, mainly his indication that the Fed’s quantitative easing program may taper off in the near future. With long-term interest rates remaining steady and equity markets still boosting pension plan funding levels, Dietrich maintained the market correction came in the form narrowing credit spreads.

“There is a science to valuing long-term liabilities such as pension obligations and there is an art to the timing of a pension risk transfer, the intent of our index is to marry the two dynamics and help plan sponsors eliminate the guessing,” Dietrich said in a statement.