A West Coast insurer has come up with new retirement savings feature for sponsors of group long-term disability insurance programs.
Standard Insurance Company, Portland, Ore., a unit of StanCorp Financial Group Inc., says the new Annuity Contribution Benefit feature can help group LTD insureds who are disabled for 3 or more years.
If the claimant’s employer has purchased the annuity benefit feature, Standard will set up and begin funding an individual annuity in the employee’s name, Standard says.
The disabled employee will own the annuity, even though Standard is funding the annuity, Standard says.
Standard is offering the feature to groups with 15 or more covered employees.
Employers can buy the feature even if they do not have retirement plans, and employees with employers that buy the feature can use the feature even if they do not participate in the employer’s retirement plan, Standard says.
In New York, StanCorp will sell the feature through its Standard Life Insurance Company of New York affiliate.