Employers purchase Single Premium Group Annuities to transfer the financial liability of their pension plans to insurance companies. Typically, SPGA contracts are used in connection with defined benefit plan terminations. However, they are also useful to ongoing plans that encounter a variety of circumstances:
In any case, SPGA contracts satisfy the needs of the plan sponsors because they:
Qualified Annuity Services can also help meet the needs of plan sponsors through our SPGA placement expertise. We work closely with the SPGA issuer market, and we understand the impact of interest rates on annuity pricing. We also have an extensive background in underwriting comprehensive bid specifications for inclusion in these contracts, and will ensure a timely contract installation process.