Pension Annuitization Attractiveness Rose in May

The 3.11 point gain was driven by increasing interest rates and pension funding levels. The index’s current annuity discount rate proxy of 2.69% raised 30 basis points over May.  

“As anticipated last month, a favorable window of opportunity has opened. Summertime typically brings a steady (or increasing) rate environment and 2013 is no exception thus far,” said Geoff Dietrich, vice president of Dietrich & Associates.“Plan sponsors who are in position to transact are taking advantage of decent price reductions; three to five percent in most cases.The Index has been telling sponsors to monitor PRT costs and many are now entering the execution phase.”