It looks like the Fed is doing exactly what all of us expected with gradual rate increases throughout the year with potentially one more to come this year. All the economic indicators point in that direction and we can probably expect more of the same next year.
A note about our rates as a reminder to those who have been with us for years and our newcomers. These are reflective of the rates we would see on a final bid date, meaning the date a plan sponsor would agree to purchase a GAC by 4 PM Eastern. As most of you know, insurers never really get serious about their pricing until they know a plan sponsor is ready to buy.
We believe that the following rates applied to the mortality scale MP-2017 will give you a pretty good indication of the price of a group annuity contract. Use the smaller rate for small contracts.