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Bait And Switch?

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Hello Forum Folks,


Just received a "summary plan description" and was asked to give feedback (I was one of 2 employees who was on 4-person committee and who helped get rid of ING annuity plan). I have a number of questions and complaints about this "summary," (like the one short paragraph on expenses where no actual numbers are mentioned, as they were in the sales materials), but for now, I'm just wondering about the annuity status.

This plan was advertised by the broker as "straight mutual funds," not an annuity, with the option to annuitize at retirement. However, the following statements have me concerned:


"If you are married on the date your benefits are to begin, you will automatically receive a joint and 50%

survivor annuity, unless you otherwise elect an alternative form of payment."


"...must first waive the annuity form of payment."


"...alternative form of payment. ....the following methods:

- a single lump-sum payment in cash

- installments over a period of not more than your assumed life expectancy (or your beneficiary's life


- the purchase of a different form of annuity."


(Our plan is also called "The such and such Group Annuity")


****Am I mistaken to assume that a 403 (b) with "straight mutual funds" that "is not an annuity" (broker) should include additional payout or rollover options? (IRA?)****


This new company IS better than ING re: the fees (.25 on top of fund fees) and the funds are American without the load, so all of that is an improvement. I'm just wondering if this is an annuity. It has all the language of the prospectus of my individual annuity (don't ask).


Looking forward to your feedback. Always helpful.



Edited by detailgal

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