High-level barometer of pension annuitization affordability

1. PENSION RISK TRANSFER INDEX ™
April 1, 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 89.44
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) Plan/Monitor Opportunistic Settlement Attractive
 Annuity Rates vs. Treasury and Corporate Bonds (20% Index Weight) Sept 2010: Jan 2009:
Index Low =82.7 Index High =121.4
Monthly PRT Index PRT INDEX
Annual PRT Index PRT INDEX
108.00
130.0%
110.6 121.4 103.00
98.00
110.0%
93.00
90.0% 88.00
91.5 90.0 83.00
86.7
70.0% 78.00
Nov-10
Sep-11
Nov-11
Sep-10
May-11
May-10
Jan-10
Mar-10
Jan-11
Mar-11
Jan-12
Mar-12
Jul-10
Jul-11
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Effective 4/1/2012
Commentary: Increases in annuity rates, treasuries, corporate bond yields and pension funding levels drove the index highest level since
September 2011. The current annuity discount rate proxy embedded within the index is 3.11%.
Dietrich & Associates does not certify the information nor does it guarantee the accuracy or completeness of such information. Use of such information is voluntary and
should not be relied upon unless an independent review of its accuracy and completeness has been performed. Materials may not be reproduced without the express 1
consent of Dietrich & Associates.