The Dietrich Pension Risk Transfer Index tracks the relative attractiveness of annuitizing accrued pension obligations by considering three key financial ratios: the funded status level, current and historical annuity rates, and annuity rates versus treasury and corporate bonds. In November 2012, the index level was 79.85, indicating annuitization should be monitored. The monthly index level dropped due to lower pension funding levels and narrower annuity discount rate spreads.

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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