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. Employee Retirement Income Security ...

    The Employee Retirement Income Security Act of 1974 (ERISA) protects ...
  2. Annuity

    A financial product sold by financial institutions that is designed ...
  3. Money-Purchase Pension Plan

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

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

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

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

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center