Last year, MetLife introduced its new Periodic Payment Agreement (PPA). The PPA is a non-qualified product that enables the transfer of future periodic payments from physical injury cases that currently do not qualify under IRC Section 130, such as pre-1997 workers compensation settlements and the settlements of disability coverage disputes. The transfer is made to MetLife Tower Resources Group (MTRG), which functions as the owner.

As you may recall, several months ago we featured a similar product through Liberty Life and its Barbados-based partner BARCO Assignments, Ltd. The primary difference between MetLife’s PPA and BARCO is that with MetLife, attorneys deal directly with a U.S.-based insurance company as MTRG is not an offshore entity.

Advantages of MetLife’s PPA include:

  • U.S. owner
  • Annuity payments grow with interest and are tax-free until withdrawn
  • Mortality liability and payment risk transferred from defendant/insurer to MetLife
  • Reduces the administrative paperwork for administering the periodic payments
  • Tax obligation spread out over time
  • Financial planning opportunity for the claimant
  • Guaranteed payments for the life of the claimant/payee

Here is a one-sheet that provides further information. Please give me a call with any questions.

-Pat

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