The BCG PRT Index

The BCG PRT Index represents the premium that an insurance provider would charge for a buyout of a ‘typical’ DB plan. Each month, participating providers provide their pricing rates to BCG, and a new Index value is calculated. All administrative expenses are included in the providers’ rates, and are likewise included in the Index.

The Index can be viewed relative to various comparison markers. These comparison markers do not reflect any of the plan’s expenses. Hover over the comparison markers for brief descriptions in the selection table below.

Comparison Markers

Liability Value Chart

$22,000,000 $24,000,000 $26,000,000 $28,000,000 $30,000,000 $32,000,000 $34,000,000 $36,000,000 $38,000,000 $40,000,000 $42,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Liability Values
August 1, 2022 July 1, 2022 May 1, 2022 August 1, 2021
PRT Index $ 29,330,799 $ 28,754,423 $ 29,823,702 $ 36,370,316
PPA Spot $ 27,218,831 7.8% $ 26,952,257 6.7% $ 28,547,044 4.5% $ 33,548,918 8.4%
PPA 3-Seg. 24-mo. $ 31,972,424 -8.3% $ 32,281,731 -10.9% $ 32,816,856 -9.1% $ 32,721,659 11.2%
PPA 3-Seg (ARPA) $ 25,397,279 15.5% $ 25,397,279 13.2% $ 25,397,279 17.4% $ 26,576,921 36.8%
Lump Sum $ 27,303,516 7.4% $ 27,075,289 6.2% $ 28,700,496 3.9% $ 33,614,152 8.2%
Accounting $ 29,185,775 0.5% $ 28,034,320 2.6% $ 28,761,074 3.7% $ 34,654,324 5.0%
Treasury $ 32,137,874 -8.7% $ 31,447,940 -8.6% $ 32,049,521 -6.9% $ 37,493,205 -3.0%
= PRT Index premium (discount) relative to comparison marker Sources: FTSE, IRS, Columbia Threadneedle, and BCG.

The BCG PRT Index value for August 1, 2022 is $29,330,799.

The PRT Index decreased from last month. The movement relative to comparison markers was favorable. A buyout transaction is more attractive than last month.

Participating Insurance Providers


OneAmerica
AIG
MetLife
MassMutual
Mutual of Omahal
Pacific Life
Prudential
Western & Southern Financial Group
Principal
Securian
L&G
F&G
Athene
Midland National

 

The BCG PRT Index Customized Buyout Price Monitoring

For more information about The BCG PRT Index

BCG PRT Index Guide

  • At 11 years, The BCG PRT Index is the longest standing pension buyout index in the United States.
  • The Index provides easy comparison of annuity pricing to various important pension liability measures.
  • To learn more about customizing the Index to a specific DB plan, click here.