Annuities
What is an annuity?
An annuity is a financial instrument purchased from an insurance company that provides a series of predetermined, periodic payments (monthly, quarterly, semi-annually or annually) to an individual until death; then continuing to the surviving spouse until that person's death.
Annuity payment amount is determined by:
The law requires that you provide your spouse with at least 60 percent of your pension upon your death. This legal requirement can only be waived if your spouse signs a document waiving all rights to your pension.
It is strongly recommended that a guarantee period is purchased on the annuity. A guarantee ensures that, in the event that you and your spouse both die before the expiration of the guarantee period, the balance will be payable to your named beneficiary. Guarantee periods are available to a maximum of 15 years.
Good news. CLAC is here to help!
Although the CLAC Pension Plan may not, by law, pay out monthly pension amounts to its members, CLAC is not affiliated with a specific insurance company, and we are therefore able to obtain unbiased quotations from many different insurance companies. These quotations provide us and you with a listing of the best monthly pension amounts available for various types of annuities.
You are always free to obtain your own quotations and/or discuss the quotations we provide with your own investment advisor.