High-level monthly barometer of pension annuitization attraciveness.

1. PENSION RISK TRANSFER INDEX ™
November 2012 PRT Index Level
What is the Dietrich Pension Risk Transfer (PRT) Index ?
The Dietrich Pension Risk Transfer Index has been designed to create a monthly 79.85
benchmark that tracks the relative attractiveness of annuitizing accrued pension
obligations by considering three key underlying financial ratios 80 95 105 120
 Funded Status Level (50% Index Weight) Annuitization Attractiveness
 Current /Historical Annuity Rates (30% Index Weight) Evaluate Monitor Execute
 Annuity Rates vs. Treasury and Corporate Bonds (20% Index Weight) Aug 2012: Jan 2009:
Index Low =79.8 Index High =121.4
Annual PRT Index PRT INDEX Monthly PRT Index PRT INDEX
130.0% 108.00
110.6 121.4 103.00
110.0% 98.00
93.00
90.0% 88.00
91.5 90.0 83.00
86.7
70.0% 78.00
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Effective 11/1/2012
Commentary: The monthly index level dropped driven by a combination of lower pension funding levels and narrower annuity discount rate
spread levels. The annuity discount rate proxy embedded within the index ticked down to 2.50%.
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