1. PENSION RISK TRANSFER INDEX ™
November 2011 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 86.45
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:
PRT Index =82.7 PRT Index =121.4
Annual PRT Index PRT Index PRT INDEX
Monthly PRT Index
140
108.00
130
110.6 121.4 103.00
120
110 98.00
100 93.00
90 88.00
80 91.5 90.0 83.00
70 78.00
Jan-08 Jan-09 Jan-10 Jan-11
Effective 11/1/2011
Commentary: Lower annuity rates and spreads drove index lower despite gains in pension funding levels. The current annuity rate proxy of
3.36% marks a new low, despite currently wide annuity spread levels. Annuities remain attractive for frozen plans with short investment horizons
and/or reduced asset return assumptions
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