The Fed Makes a Statement

Fed Chief Jerome Powell two days ago made the following statements:

"Financial markets became more volatile toward year-end, and financial conditions are now less supportive of growth than they were earlier last year."

"We will carefully monitor these issues as they evolve,"

Plan sponsors who are thinking rates will continue upward may need to re-think that. The good news is if rates stay low the equity markets should continue their rally so plan sponsors will probably still be in a position for a favorable settlement cost for a pension risk transfer or plan termination.

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.