Qualified Pre-Retirement Survivor Annuity - QPSA

AAA

DEFINITION of 'Qualified Pre-Retirement Survivor Annuity - QPSA'

A death benefit that is paid to the surviving spouse of a deceased employee. If the employee dies before retirement, the qualified pre-retirement survivor annuity is paid to recompense the surviving spouse for the loss of retirement benefits that would have otherwise been paid to the employee. As the name implies, QPSAs are paid only for qualified plans.

INVESTOPEDIA EXPLAINS 'Qualified Pre-Retirement Survivor Annuity - QPSA'

Qualified pre-retirement survivor annuity benefits must be offered by all types of qualified plans to vested participants, including defined-benefit plans and money-purchase plans. However, the spouses must have been married for at least a year in order to be eligible for benefits. ERISA mandates how the payments for a QPSA should be calculated. Both employee and spouse must sign off on a waiver of QPSA benefits and have it witnessed by either a notary public or authorized plan representative.

RELATED TERMS
  1. Money-Purchase Pension Plan

    A pension plan to which employers and employees make contributions ...
  2. Qualified Retirement Plan

    A plan that meets requirements of the Internal Revenue Code and ...
  3. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
  4. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  5. Notarize

    The act of officially certifying a legal document by a notary ...
  6. Employee Retirement Income Security ...

    The Employee Retirement Income Security Act of 1974 (ERISA) protects ...
Related Articles
  1. Business Owners: Rules For Qualified ...
    Entrepreneurship

    Business Owners: Rules For Qualified ...

  2. What is the difference between qualified ...
    Retirement

    What is the difference between qualified ...

  3. Can I leave my pension to my spouse ...
    Options & Futures

    Can I leave my pension to my spouse ...

  4. The 401(k) and Qualified Plans Tutorial
    Taxes

    The 401(k) and Qualified Plans Tutorial

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center