Group Annuity

Group Annuity

An annuity purchased by a number of people who negotiate collectively. A group annuity operates like other annuities, except that contributions are paid by (and payments are made to) more than one person under a single plan. See also: Group insurance.
References in periodicals archive ?
2, 2015 /PRNewswire/ -- Legal & General America announces it has entered into an agreement with the US subsidiary of Royal Philips to provide retirement payments under a group annuity contract to approximately 14,000 of Philips' US retirees and other former employees, which will reduce the firm's pension obligations upon the closing of the contract in early December.
Sutherland Asbill & Brennan LLP is pleased to announce that the firm represented Kimberly-Clark Corporation, as insurance counsel, in agreements with Prudential and Massachusetts Mutual for group annuity contracts that will transfer payment responsibility for retirement pension benefits owed to approximately 21,000 Kimberly-Clark retirees in the United States to the two insurers.
The automaker is also purchasing a group annuity contract from Prudential to manage payments to the remainder of its salaried retirees.
GM says it will reduce its pension liabilities by $26 billion by offering lump-sum buyouts to some salaried retirees and providing others with monthly payments via a group annuity from Prudential.
Group annuity plan participants don't own mutual funds--they own a share of a pool of assets.
Nippon Life to hike pledged group annuity policy effective yields
Accordingly, the proposed rules would change the mortality tables used to determine current liability from those based on the 1983 Group Annuity Mortality Table (as set out in Rev.
Among the products exempted are variable and credit life insurance and individual and group annuity contracts.
If the mutual funds are offered through an insurance company group annuity contract, there is often an additional layer of asset-based fees, which can add an additional 1 percent or more to total fees.
GAO analysis indicates the Congress intended that the interest rates used in current liability and lump-sum calculations should reflect the interest rate underlying group annuity prices and not be vulnerable to manipulation by interested parties.
General accounts customarily include funds paid by employee benefit plans pursuant to group annuity contracts.