Pension Risk Transfer Index Declines in September

The index stands at 88.23 as of October 1, 2011, which is down from a prior month’s level of 91.78.  The index, which tracks the relative attractiveness of annuitizing accrued pension liabilities, witnessed its largest monthly decline of 2011, driven by continued declining interest rates and lower plan funding levels.

While absolute annuity rates remain near historic lows, currently wide annuity spread levels provide superior value compared to U.S. Treasury and Corporate Bond yield spot rates, Dietrich said.