The Dietrich Pension Risk Transfer Index tracks the relative attractiveness of annuitizing pension obligations by considering funded status, annuity rates, and annuity rates compared to treasury and corporate bonds. In March 2012, the index level was 85.31, indicating annuitization was opportunistic. The index level is influenced by annuity discount rates, corporate bond yields, and pension funding levels.

1. PENSION RISK TRANSFER INDEX ™
March 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 85.31
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
PRT INDEX Monthly PRT Index PRT INDEX
Annual PRT Index
108.00
130.0%
103.00
110.6 121.4
98.00
110.0%
93.00
88.00
90.0%
91.5 90.0 83.00
86.7
70.0% 78.00
Nov-10
Nov-11
Sep-11
Sep-10
Mar-12
Mar-10
Mar-11
May-10
May-11
Jan-10
Jan-11
Jan-12
Jul-10
Jul-11
Jan-08 Jan-09 Jan-10 Jan-11 Jan-12
Effective 3/1/2012
Commentary: Modestly lower annuity discount rates and lower corporate bond yields & spreads drove the index lower, offsetting small gains in
pension funding levels. The current annuity discount rate proxy embedded within the index is 3.00%.
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