Author Topic: Employer-sponsored annuity?  (Read 627 times)

NoStacheOhio

  • Handlebar Stache
  • *****
  • Posts: 2143
  • Location: Cleveland
Employer-sponsored annuity?
« on: February 29, 2016, 12:13:12 PM »
I just applied for a job at a new company, and I was reading through their benefits web page.

From what I can tell, this is what they offer:
1. Defined-contribution pension plan: 4% of salary contributed by the company (5% after five years), graduated vesting over five years, self-directed investments
2. The option to purchase tax-deferred annuities (50% match up to 1.5% of total salary)

Everything I've read about annuities says that you purchase them at a fixed price, then they pay out over a set number of years. How would that work with ongoing paychecks and the like? These plans make no sense to me, and it looks like employees can't elect contributions to the pension (I'm assuming it's a 401a or 403b plan).

Does anybody have anything similar?