Annuity Contracts

Annuity contracts are contracts made with an insurance company to provide certain benefits upon a participant's retirement. The arrangement with the insurance company can involve individual contracts for each employee or a group contract with separate accounts for each employee.

Contributions made under a tax-sheltered annuity (TSA) contract are invested with the insurance company. The insurance company provides either a guaranteed interest rate or a variable rate of return. A wide assortment of other investment options may also be available.

Financial Calculators To see how contributions to an annuity can fit into your retirement plan, use this Variable Annuity Calculator.

A group annuity contract can offer life insurance protection for the employee as long as the life insurance benefit is incidental to the retirement annuity. Similarly, a separate life insurance policy can be purchased as part of a TSA so long as the death benefit is incidental to the retirement benefit.

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