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 Liability Values
May 1, 2020 April 1, 2020 February 1, 2020 May 1, 2019
PRT Index $ 36,302,465 $ 35,036,622 $ 35,927,271 $ 31,936,729
PPA Spot $ 32,383,898 12.1% $ 31,360,805 11.7% $ 31,918,884 12.6% $ 29,109,744 9.7%
PPA 3-Seg. 24-mo. $ 29,718,403 22.2% $ 29,566,399 18.5% $ 29,326,354 22.5% $ 28,877,517 10.6%
PPA 3-Seg HATFA $ 25,581,161 41.9% $ 25,581,161 37.0% $ 25,581,161 40.4% $ 25,258,572 26.4%
Lump Sum $ 32,475,373 11.8% $ 31,299,228 11.9% $ 31,889,291 12.7% $ 29,112,572 9.7%
Accounting $ 34,231,953 6.0% $ 32,616,416 7.4% $ 33,580,772 7.0% $ 30,332,689 5.3%
Treasury $ 40,481,705 -10.3% $ 40,094,298 -12.6% $ 36,639,862 -1.9% $ 32,901,203 -2.9%
= PRT Index premium (discount) relative to comparison marker Sources: FTSE, IRS, River & Mercantile, and BCG.

The BCG PRT Index value for May 1, 2020 is $ 36,302,465.

The PRT Index decreased this month and is the lowest since January. The movement relative to comparison markers was favorable as well. 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

 

The BCG PRT Index Customized Buyout Price Monitoring

For more information about The BCG PRT Index

BCG PRT Index Guide

  • At 9 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.