Non-Qualified Annuity
Many employers purchase annuity contracts to "informally fund" their non-qualified deferred compensation plans. "Informally funding" means that the employer owns the annuities and the annuities are subject to the claims of the employer's general creditors. The plan participants have no interests in the annuities. Even though the employer's non-qualified deferred compensation plan is "informally funded", the plan participants are not taxed on the value of the annuity. The participants are only taxed as they receive payments under the plan. The employer may not take a tax deduction for its annuity purchase payments but may deduct its payments to the participants under the plan. These plans are typically designed for key employees, a select group of management or highly compensated employees. Generally, such non-qualified deferred compensation plans are not subject to most ERISA requirements and do not impose limitations on the amount of plan contributions or benefits. The John Hancock non-qualified Annuity Contract supports non-qualified deferred compensation plans as described above. Upon purchase of a non-qualified Annuity Contract in connection with a non-qualified deferred compensation plan, specific information regarding the Contract Holder will be requested.
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Single Premium Group Annuities
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Terminal Funding Annuities
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Benefit Services
| For more information on benefit services provided by John Hancock, please refer to the JH Services page above. |
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Participant Forms for Benefit Services
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Contact Us
| For additional questions please refer to the Contact Annuity Team page above. |
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