The Dietrich Pension Risk Transfer Index tracks the relative attractiveness of annuitizing accrued pension obligations based on three key financial ratios: the funded status level, current and historical annuity rates, and annuity rates compared to treasury and corporate bonds. In December 2012, the index level was 81.31, indicating annuitization should be monitored. The index rose slightly due to improved pension funding levels and wider corporate bond spreads, while the annuity discount rate proxy remained unchanged.

1. PENSION RISK TRANSFER INDEX ™
December 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 81.31
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) 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
108.00
130.0%
103.00
110.6 121.4
98.00
110.0%
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 12/1/2012
Commentary: The monthly index value rose on slightly improved pension funding levels and modestly wider corporate bond spreads. The
annuity discount rate proxy embedded within the index was unchanged at 2.50%.
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