What is a qualified joint and survivor annuity (QJSA)?
A-17: A form of benefit available under a defined benefit pension plan and sometimes found in defined contribution plans in which benefit payments continue after the death of the plan participant to the surviving spouse, if any. Typically, the amount of benefit that continues to the surviving spouse is any where from 50 percent to 100 percent of the benefit the participant had been receiving before death. Upon the death of the surviving spouse, all payments cease. Because this form of benefit provides pension payments that extend beyond the death of the plan participant, the monthly benefit payment made while the participant is alive are actuarially reduced to account for the potentially longer stream of benefit payments. This actuarial reduction takes into account the life expectancy of the surviving spouse in addition to the life expectancy of the plan participant.
Related Questions
- When I retired, I chose a Joint and Survivor Annuity. With a possible reduced COLA in my future, can I switch back to a Single Life Annuity so I can get more money in my pension check?
- Can an ex-spouse receive all or a portion of a Qualified Preretirement Survivor Annuity if the participant dies before retirement?
- Why Must the Postretirement Qualified Joint and Survivor Annuity (QJSA) Be Considered?
