Qualified Pre-Retirement Survivor Annuity - QPSA


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.

BREAKING DOWN '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.

  1. Annuity

    A financial product that pays out a fixed stream of payments ...
  2. Qualified Retirement Plan

    A plan that meets requirements of the Internal Revenue Code and ...
  3. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  4. Money-Purchase Pension Plan

    A pension plan to which employers and employees make contributions ...
  5. Employee Retirement Income Security ...

    The Employee Retirement Income Security Act of 1974 (ERISA) protects ...
  6. Defined-Benefit Plan

    An employer-sponsored retirement plan where employee benefits ...
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  1. What is the difference between qualified and non-qualified plans?

    Qualified and non-qualified retirement plans are created by employers with the intent of benefiting employees. The Employee ... Read Full Answer >>
  2. Can I leave my pension to my spouse when I pass away?

    In most cases, an individual with a pension plan should have the option to leave at least a portion of his or her pension ... Read Full Answer >>
  3. Can I borrow from my annuity to put a down payment on a house?

    You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. ... Read Full Answer >>
  4. Why is the Cayman Islands considered a tax haven?

    The Cayman Islands is one of the most well-known tax havens in the world. Unlike most countries, the Cayman Islands does ... Read Full Answer >>
  5. Why is Luxembourg considered a tax haven?

    Luxembourg has been the tax haven of choice for many corporations and mega-rich individuals around the world since the 197 ... Read Full Answer >>
  6. What are the main kinds of annuities?

    There are two broad categories of annuity: fixed and variable. These categories refer to the manner in which the investment ... Read Full Answer >>

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