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Travelers Offers Defined-Benefit Pensions For Small-Business Owners

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NU Online News Service, June 2, 2003, 11:35 a.m. EDT – Travelers Life & Annuity, Hartford, is working with CJA and Associates Inc., Chicago, an actuarial consulting firm, to set up a Section 412(i) program.

Owners of businesses with 15 or fewer employees can use fixed life insurance policies or annuities in the accounts to equip themselves with defined-benefit pension benefits.

Owners can deduct contributions to 412(i) accounts from taxable income, and they can defer taxes on the value building up in the accounts.

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Travelers Life plans to distribute the accounts through its general agents and producers.

Travelers Life is a unit of Citigroup Inc., New York.