The new Qualified Longevity Annuity Contract
L1: The new Qualified Longevity Annuity ContractCan this contract be issued by public and private defined benefit plans?2014-07-12 17:25, By: Joel, IP: [188.8.131.52]
L2: The new Qualified Longevity Annuity ContractNo.
However, the IRS and Treasury are requesting comments with the purpose of allowing a product similar to QLACs to be issued by DB plans. Technically, they would not be QLACs but would replicate them if approved. Sometimes considerable time passes before the comment period is acted upon by the IRS. For example it took over 2 years for QLACs to be moved from the proposed Reg stage to the final Regs.2014-07-12 23:50, By: Alan S, IP: [184.108.40.206]
L3: The new Qualified Longevity Annuity ContractI know this is the case when it comes to the accrued DB pension where a person may want to defer the receipt of a small portion of his/her accrued pension to an older age i.e. 85. A DB pension plan is in the fixed annuity payout business and does it very well. So when and if this benefit becomes a reality it stands to reason the the DB plan will write the appropriate annuity contract in-house—-rather than farm it out to a commercial insurer with their lower annuity income rates.
In the instant caseI’m referring to the DB plan writing theQLAC where the premium is paid from a DC plan participant’s investment account. Let’s assume both plans are sponsored by the same employer.2014-07-14 17:42, By: Joel, IP: [220.127.116.11]