What is a group annuity?

Group annuities were initially created as a way to help companies meet the obligations of retired employees who were receiving pensions. The first group annuity contract in the United States was issued by the Metropolitan Life Insurance Company (MetLife) in 1921.

Where are group annuity contracts issued?

Group annuity contracts are issued by Athene Annuity and Life Company, West Des Moines, IA, in all states (except New York), and in Washington D.C. and Puerto Rico. For New York residents and New York contract holders, group annuity contracts are issued in New York by Athene Annuity & Life Assurance Company of New York, Pearl River, NY.

What are the different types of group annuity contracts?

Employers choose one of three types of group annuity contracts, which offer varying degrees of cost-control and financial benefits. A company that signs a contract for a deferred group annuity makes periodic payments, which the insurance company uses to purchase deferred annuities for the covered employees.