What Does Qualified Joint And Survivor Annuity Mean?

Abbreviated as QJSA, the term refers to an annuity payment receivable from a so-called 403(b) account or qualified scheme which provides a joint benefit. In the one hand, it offers a life annuity for the policy holder, and in the other hand it provides the spouse with a survivor annuity following the policy holder’s death.

The rules and regulations of the QJSA are valid for all types of money-purchase pension contracts, defined-benefit schemes as well as for target benefits. In case it is indicated in the contract, QJSA may apply even to profit-sharing as well as to 401(k) schemes.

Qualified Joint And Survivor Annuity Explained

The scheme which uses such a QJSA must indicate in the contract the survivor annuity percentage, which is around 50-100% most of the times, of course of the annuity amount which is paid to the policy holder. However, if the owner of the policy is unmarried, then the annuity is lapsed after his or her death.