With the end of year fast approaching, corporations with pensions may want to consider annuitizing those liabilities. That’s because the latest edition of the Dietrich Pension Risk Transfer Index found that the relative attractiveness of annuitizing pension liabilities continues to rise.
The index tracks market conditions that impact settlement costs. A higher index value means settlement costs have been reduced. Reviewing the autumn months, November’s index value rose to 97.1 from October’s figure of 96.19. Furthermore, the index’s current annuity discount rate proxy of 3.21 percent held steady despite the upswing of prices for both Treasuries and corporate bonds.