Terminal Funding

A Terminal Funding or Annuity Buyout contract is a Single Premium Group Annuity (SPGA) product that can guarantee benefits of a pension plan's retired, active or deferred vested participants. The insurer determines the present value, or premium, needed to purchase a group contract through which the employer or plan sponsor can transfer selected plan liabilities in the form of fixed or variable annuities for each plan member. Buyouts are typically used in cases of plan termination or settlements, often in conjunction with corporate restructuring.

AIG's Pension business is marked by solid sales growth, very strong financial ratings and a well-deserved reputation for first-rate contract and participant services. For more than 30 years, pension managers and consultants, financial services brokers, plan sponsors, and, most importantly, the plan participants they serve, have benefited from our underwriting expertise, financial stability and continued focus on excellence in this niche market.