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State Guaranty Associations Protect Your ARC Pension Benefits

08/30/2018 4:34 PM | Anonymous

(You must be a member and logged into the site to read the full Annuities Primer)

As of last fall, many Red Cross retirees are receiving their benefits in the form of an annuity, in most cases from Athene, Aetna or John Hancock Financial.  ARCRA has created an Annuities Primer on its website that explains what it means to retirees to have their benefits provided through an annuity rather than through the American Red Cross defined benefit pension plan.  Basically, an annuity is a contract.  For a lump sum payment up front, an insurance company agrees to make periodic payments over the life of the contract.  In this case, the contract guarantees payments to Red Cross retirees for the remainder of their life.  In 1989, and again in 2017, Red Cross shifted some of its legal obligation to provide pension benefits out of the defined benefit pension plan and into annuities.

ARCRA has looked into the State Guaranty Associations that provide a safety net for annuity recipients by guarantying the payment of your pension in the extremely unlikely event that the financial institution who provides your monthly annuity payment fail. You can find this Annuities Primer in the members section of the ARCRA website.   Read more about how State Guarantee Associations work to protect your ARC pension benefit


PO BOX 1581  .  Vienna, VA 22180  .  E-mail: arcra@redcross.org  . Tel: 202-303-7184  . Toll Free: 1-888-738-2724

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