Pension risk transfer premiums are lower than ever, according to a paper from pension risk consultant BCG Penbridge.
The consultant was involved in 53 PRT transactions in 2020, involving the purchase of group annuity contracts by U.S. corporate pension plans to transfer a certain number of retirees and pension liabilities to one or more insurers.
Among those transactions, 42 were full plan terminations, and the average premium was 101%.
Among the 11 PRT transactions that involved retiree liftouts, the average premium was only 94%.