| Part of Speech | Definition | |
| Noun Plural | 1. Plural inflection of the noun annuity.[Eve - graph theoretic] | |
| Noun Base (annuity) | 1. Income from capital investment paid in a series of regular payments; "his retirement fund was set up to be paid as an annuity".[Wordnet]. 2. A sum of money, payable yearly, to continue for a given number of years, for life, or forever; an annual allowance.[Websters]. | |
Sources: compiled from various sources, (under license) copyright 2008. | Top | |
Date "ANNUITIES" was first used in popular English literature: sometime before 1584. (references) |
Specialty Definition: annuity
| Domain | Definition | ||
| Banking | A series of equal payments made at regular intervals, with interest compounded at a specified rate. (references) | ||
| Finance | 1: (1) a payment of funds, often at a minimum guaranteed amount, made yearly, monthly or at other regular intervals. (2) a type of policy offered by insurance companies in which the policy holder makes payments for a fixed period or until a stated age, and then receives annuity payments from the insurance company. (references) | 2: A fixed-interest British government security traded on the Stock Exchange. Source: European Union. (references) | 3: A security issued by the British government as part of the National Debt. Source: European Union. (references) | 4: An annual installment, normally equal, paid towards the extinction of a debt, including the capital and interest portions; an annual payment comprising both repayment of principal and servicing of interest; any of several parts into which a debt or other sum payable is divided for payment at successive times. Source: European Union. (references) |
| Insurance | A regular periodic payment made by an insurance company to a policyholder for a specified period of time. Source: European Union. (references) | ||
| Law | ANNUITY, contracts. 1. An annuity is a, yearly sum of money granted by one party to another in fee for life or years, charging the person of the grantor only. Co. Litt. 144; 1 Lilly's Reg. 89; 2 Bl. Com. 40; 5 M. R. 312; Lumley on Annuities. 1; 2 Inst. 293; Davies' Rep. 14, 15. 2. In a less technical sense, however, when the money is chargeable on land and on the person, it is generally called an annuity. Doet. and Stud Dial. 2, 230; Roll. Ab. 226. See 10 Watts, 127. 3. An annuity is different from a rent charge, with which it is frequently confounded, in this; a rent charge is a burden imposed upon and issuing out of lands, whereas an annuity is chargeable only upon the person of the grantee. Bac. Abr. Annuity, A. See, for many, regulations in England relating to annuities, the Stat, 17 Geo. III. c. 26. 4. An annuity may be created by contract, or by will. To enforce the payment of an annuity, the common law gives a writ of annuity which may be brought by the grantee or his heirs, or their grantees, against the grantor and his heirs. The action of debt cannot be maintained at the common law, or by the Stat. of 8 Anne, c. 14, for the arrears of an annuity devised to A, payable out of lands during the life of B, to whom the lands are devised for life, B paying the annuity out of it, so long as the freehold estates continues. 4 M. & S. 113; 3 Brod. & Bing. 30; 6 Moore, 336. It has been ruled also, that if an action of annuity be brought, and the annuity determines pending the suit, the writ faileth forever because no such action is maintainable for arrearages only, but for the annuity and the arrearages. Co. Litt. 285, a. 5. The first payment of an annuity is to be made at the time appointed in the instrument creating it. In cases where testator directs the annuity to be paid at the end of the first quarter, or other period before the expiration of the first year after his death, it is then due; but in fact it is not payable by the executortill the end of the year. 3 Mad. Ch. R. 167. When the time is not appointed, as frequently happens in will, the following distinction is presumed to exist. If the bequest be merely in the form of an annuity as a gift to a man of "an annuity of one hundred dollars for life" the first payment will be due at the end of the year after the testator's death. But if the disposition be of a sum of money, and the interest to be given as an annuity to the same man for life, the first payment will not accrue before the expiration of the second year after the testator's death. This distinction, though stated from the bench, does not appear to have been sanctioned by express decision. 7 Ves. 96, 97. 6. The Civil Code of Louisiana makes the following provisions in relation to annuities, namely: The contract of annuity is that by which one party delivers to another a sum of money, and agrees not to reclaim it, so long as the receiver pays the rent agreed upon. Art. 2764. 7. This annuity may be perpetual or for life. Art. 2765. 8. The amount of the annuity for life can in no case exceed the double of the conventional interest. The amount of the perpetual annuity cannot exceed the double of the conventional interest. Art. 2766. 9. Constituted annuity is essentially redeemable. Art. 2767. 10. The debtor of a constituted annuity may be compelled to redeem the same: 1, If he ceases fulfilling his obligations during three years: 2, If he does not give the lender the securities promised by the contract. Art. 2768. 11. If the debtor should fail, or be in a state of insolvency, the capital of the constituted annuity becomes exigible, but only up to the amount at which it is rated, according to the order of contribution amongst the creditors. Art. 2769. 12. A similar rule to that contained in the last article has been adopted in England. See stat. 6 Geo. IV., c. 16, s. 54 and 108; note to Ex parte James, 5 Ves. 708; l Sup. to Ves. Jr. 431; note to Franks v. Cooper, 4 Ves. 763; 1 Supp. to Ves. Jr. 308. The debtor, continues the Code, may be compelled by his security to redeem the annuity within the time which has been fixed in the contract, if any time has been fixed, or after ten years, if no mention be made of the time in the act. Art. 2770. 13. The interest of the sums lent, and the arrears of constituted and life annuity, cannot bear interest but from the day a judicial demand of the same has been made by the creditor, and when the interest is due for at least one whole year. The parties may only agree, that the same shall not be redeemed prior to a time which cannot exceed ten years, or without having warned the creditor a time before, which they shall limit. Art. 2771. See generally, Vin. Abr. Annuity; Bac. Abr. Annuity and Rent; Com. Dig. Annuity; 8 Com. Dig. 909; Doct. Plac. 84; 1 Rop. on Leg. 588; Diet. de Jurisp. aux mots Rentes viageres, Tontine. 1 Harr. Dig. h.t. (references) | ||
| Occupations | 1: A retirement benefit paid on a monthly basis. (references) | 2: Periodic payments to a person, usually for life. (references) | |
| Railroads | Monthly railroad retirement benefit payment. (references) | ||
Source: compiled by the editor from various references; see credits. | Top | ||
Common Expressions: annuity
| Expressions | Definition | ||
| Annuity function | Annuity Functions are mathematical functions frequently used by Actuarial science students in their introduction to the mathematics of finance and more specifically in their introduction to annuities. (references) | ||
| Annuity in advance | An annuity paid in a series of more or less equal payments at the beginning of equally spaced periods; "rent payable in advance constitutes an annuity in advance for the landlord". Source: Wordnet 3.0 Copyright © 2006 by Princeton University. All rights reserved. | ||
| Life annuity | An annuity payable during one's life. Source: Webster's Revised Unabridged Dictionary. | ||
| Ordinary annuity | An annuity paid in a series of more or less equal payments at the end of equally spaced periods. Source: Wordnet 3.0 Copyright © 2006 by Princeton University. All rights reserved. | ||
| Retirement annuity plan | A Retirement Annuity Plan (RAP) is a UK pension plan designed to build a lump sum for retirement. Part of the lump sum must be used to buy an annuity and part can be taken a tax free lump sum. (references) | ||
| Reversionary annuity | An annuity payable to one person in the event that someone else is unable to receive it. Source: Wordnet 3.0 Copyright © 2006 by Princeton University. All rights reserved. | ||
| Survivorship annuity | An annuity payable to one person in the event that someone else is unable to receive it. Source: Wordnet 3.0 Copyright © 2006 by Princeton University. All rights reserved. | ||
| Terminable annuity | An annuity for a stated, definite number of years; -- distinguished from life annuity , and perpetual annuity . Source: Webster's Revised Unabridged Dictionary. | ||
Source: compiled by the editor from various references; see credits. | Top | ||
Specialty Expressions: annuity
| Expressions | Domain | Definition | |
| Age and Service Annuity | Railroads | Monthly benefit payable to employees with at least 10 years (120 months) of creditable railroad service, or at least 5 years (60 months) of creditable railroad service after 1995. (references) | |
| Alternative form of annuity | Occupations | Retirees who have a life-threatening illness or other critical medical condition can choose to receive an Alternative Form of Annuity. In the alternative annuity, you receive a reduced monthly benefit, plus a lump sum payment equal to all your unrefunded contributions to the retirement fund. The amount of reduction in your monthly benefit depends on your age at the time you retire and the amount of your retirement contributions. Your election of an Alternative Form of Annuity does not affect the potential survivor annuity payable to your spouse or children. You cannot choose the Alternative Form of Annuity if you are retiring for disability or if you have a former spouse who is entitled to court-ordered benefits based on your service. For the tax treatment of your benefits under this option, see IRS Publication 721, available on the Internal Revenue Service (IRS) web site. (references) | |
| Annuity bond | Finance | A security issued by the British government as part of the National Debt. Source: European Union. (references) | |
| Annuity starting date | Occupations | For most types of annuities, the first day of the month following either the date after the day you separate from service or the date after your last day in pay, whichever is earlier. If you were in pay status for three days or less in the month of your retirement, the annuity starting date is the date after either the day you separate from service or your last day in pay and in which you meet age and service requirements, whichever is earlier. For disability, survivor, discontinued service annuities (except annuities based on involuntary separations for Members of Congress), annuities based on mandatory retirement requirements, and deferred annuities, the annuity starting date is the date after either the day you separate from service or your last day in pay, whichever is earlier. Also called the "Annuity Commencing Date." (references) | |
| Fixed annuity | Finance | The guaranteed income of an annuity, the amount and payment schedule of which has been specified in advance. (references) | |
| Immediate annuity | Occupations | 1) An annuity that begins no later than one month after the end of the pay period during which you are separated from service; or 2) An annuity under 5 CFR 842.204(a)(1) for which the starting date has been postponed. (references) | |
| Indexed annuity | Insurance | A life insurance under which the calculation of the annual payment is made by looking at the cost-of-living index. Source: European Union. (references) | |
| Joint-and-Survivor Annuity | Occupations | An annuity paying one individual for his or her life and then providing for an annuity for the person's surviving spouse, usually in a reduced amount. (references) | |
| Life annuity | Law | LIFE ANNUITY. An annual income to be paid during the continuance of a particular life. (references) | |
| Occupational Disability Annuity | Railroads | Annuity payable when an employee meets certain age and service requirements with a current connection and is permanently disabled for his or her regular railroad occupation. (references) | |
| Perpetual annuity | Finance | A perpetual and regular annual payment of money. Source: European Union. (references) | |
| Reversionary annuity | Insurance | An annuity in which only specified events can cause the annuity to be paid. Source: European Union. (references) | |
| Single Life Annuity | Occupations | Periodic payments for the life of the participant with no benefits payable after the participant's death. (references) | |
| Spouse Annuity | Railroads | Annuity payable to the wife or husband of an employee annuitant based on age or on caring for the employee’s unmarried child who is under age 18 or disabled before age 22. (references) | |
| Substituted annuity | Insurance | A pension bought with the amount of money obtained from a pension contract, the open market option being exercised on it. Source: European Union. (references) | |
| Supplemental Annuity | Railroads | Additional amount payable if employee has at least 25 years of railroad service beginning before 10-1-81 and a current connection. (references) | |
| Tax-deferred annuity | Finance | An investment vehicle generally used to create income for retirement. Pretax dollars are invested by an employer for an employee to provide a future stream of income to the employee for either a fixed number of years, or for life. Federal income tax on the pretax dollars invested and on the interest they earn is postponed until the retirement income is received. (references) | |
| Temporary annuity | Finance | An annuity which is enjoyed only for a certain time. Source: European Union. (references) | |
| Total and Permanent Disability Annuity | Railroads | Annuity payable when employee meets certain age and service requirements and is unable to engage in any substantial gainful employment due to a permanent medical condition. Also payable to disabled widow (er) s over age 50 and disabled children over age 18 who became totally and permanently disabled before age 22. (references) | |
Source: compiled by the editor from various references; see credits. | Top | ||
