What is the difference between cash and annuity?
The cash value is approximately one-half the advertised value of the jackpot and is given to the winner in one lump sum. The winner who selects the annuity is paid in equal payments annually for 30 years for The Pick and in graduated annual payments over 30 years for Powerball. The person who wins the jackpot has the option to choose either the cash or annuity option. The winner has 60 days from the claim date (the date the ticket is presented for validation) in which to make the decision. If the winner chooses cash, the Lottery will issue a check when the ticket is validated. In order to secure the payment process, the Lottery purchases annuities from private companies. Each year, the Lottery prepares and issues a Request for Proposals to solicit the interest of various insurance companies. Companies that qualify through the evaluation process are asked to bid on the annuity payment after each winning jackpot. The company submitting the highest payment offer is selected and will issue
