For example, he says, if a participant wants to delay Social Security and needs a pay-out strategy to bridge the five years until he reaches 70, an immediate fixed-income annuity
5) However --not entirely related to the objective of multi-employer plans--the SAFE Act would also create a new type of defined benefit plan for state and local governments, consisting of individual deferred fixed-income annuity
contracts that state and local government employers would purchase from annuity providers on behalf of their employees.
Over time spans long enough to encompass both a normal working career and retirement years, the historical data consistently showed that an individual would have fared better from participation in a diversified annuity program than in a fixed-income annuity
The fixed-income annuity
, which creates a guaranteed, long-term income stream, will no longer be immune from Medi-Cal collections when state regulations closing the loophole go through within the next six months, said Pierce-Miller.