Pension Risk Transfer Index Increases in September

September 26, 2011 ( - The Dietrich Pension Risk Transfer Index, which tracks the relative attractiveness of annuitizing pension liabilities, rose to 91.78 for September, from its month prior level of 90.01.

A press release said the rise in the index is contrary to other industry indices which focus exclusively on pension funding, and whose recent values have fallen due to declining assets and rising liabilities.   

The Dietrich Pension Risk Transfer Index incorporates annuity rate levels (including current rates, historical rates, and spread levels) in addition to funding levels to help identify opportunities where annuities may provide value for frozen pension sponsors interested in guaranteeing some portion of their plan liabilities (see Dietrich Launches Pension Risk Index).   

Current annuity spreads have widened to levels not seen in the last 18 months, a compelling data point for sponsors who may be considering how to best annuitize their legacy liabilities, according to the announcement.