The Internal Revenue Service (IRS) on August 29, 2014 issued a Private Letter Ruling (PLR-143928-13) approving a Pacific Life Structured Settlement annuity with an annual payment adjustment based on the S&P 500 Index’s performance. In addition, the claimant can request an immediate present value lump sum commutation payout of their annuity by submitting a Notice of Hardship Conversion request to the Life Company’s Assignee who will review and consider it on a case by case basis.
Pacific Life launched the Index-Linked Annuity Payment Adjustment Rider and has published a brochure that helps educate attorneys and their clients on the program and its benefits. . It has hypothetical examples showing how the payments of one’s annuity can increase annually based on a positive S&P 500 index returns with a 5% cap and the annual payment cannot decrease if the S&P 500 Index return decreases or remains flat. [Read more…]