Administration October 8, 2012
Pension Settlement Costs Lower for Second Month
October 8, 2012 (PLANSPONSOR.com) – The Dietrich Pension Risk Transfer Index, which tracks the relative attractiveness of annuitizing pension liabilities, increased for the second month.
Reported by Rebecca Moore
As of October 1, the Index sits at 81.99, up from 81.33 as of September 1. The increase in the index was driven mainly by an improvement in pension funding levels. The annuity discount rate proxy embedded within the index rose to 2.54%.
Corporate pensions have seen two consecutive months of funding improvements (see “Pensions See $45B September Increase in Funding”).
The index considers three key underlying financial ratios: funded status level (50% index weight), current /historical annuity rates (30% index weight) and annuity rates versus Treasury and Corporate Bonds (20% index Weight).
The Dietrich Pension Risk Transfer Index can be found at https://www.dietrichassociates.com.You Might Also Like:
Julie Su’s Nomination for Secretary of Labor Passes Senate Committee
The vote was held in a closed session and advanced by a party-line vote; meanwhile, the Senate committee chaired by...
Benefits |
The Factors at Play in IBM’s Shift to a Cash Balance Plan Reviewed
IBM’s move away from the 401(k) match leads industry experts to evaluate the shortcomings of defined contribution plans in providing...
Benefits |
US Corporate Pension Funding Rises Despite September Market Challenges
Equity losses for the month were offset by the largest single-monthly decline in liability value this year.