Group Annuity Law and Legal Definition

Group annuity means an annuity purchased and payable to a group of people who negotiate collectively. In a group annuity under a single plan payments are made to more than one person under a single plan. For instance, in a group insurance plan contributions are made to the employees who are covered under a single annuity contract. A group annuity is usually issued to an employer for the benefit of employees. Here as evidence of annuities the individual members of the group plan hold certain certificates.