Group Annuity Funding Agreement
The Group Annuity Funding Agreement (GAFA) offers a fixed interest rate asset accumulation product to fund both Qualified and Non-qualified benefit plans. Qualified plans include Health Savings Accounts (HSAs) associated with a high-deductible health plan, 401k and other defined contribution plans, defined benefit plans, and profit sharing plans. Non-qualified plans include Supplemental Executive Retirement plans (SERP).
The GAFA is perfect for plans that want a conservative and guaranteed investment but are frustrated with the historically low yields on bank accounts. The principal is guaranteed by Great Western Insurance Company (GWIC) and can be withdrawn at any time for plan purposes.
The GAFA offers:
- Interest rates that are higher than current bank account yields, while not being subject to market value risk, like bond mutual funds.
- Principal and interest are guaranteed by GWIC, rated A- (Excellent) by AM Best.
- Annuity purchases are invested in intermediate term, investment grade assets.
- Crediting rates based on market rates at time of purchase.
For more information, call 866-689-1401.
Photo credit: iStock