The Annuity Plan can best be described as the perfect combination of “defined contribution” and “defined benefit.” There is flexibility and choice during the accumulation phase (the defined contribution part), and the protection of lifetime income during the retirement phase (the defined benefit part). The retirement industry is grappling with ways to provide exactly what the Annuity Plan does. Unfortunately, defined contribution plans governed by ERISA are not permitted to “self-annuitize” the way the Annuity Plan and other denominational church plans do.
