A Certain-and-Continuous annuity guarantees monthly income for your lifetime or for a fixed period, with remaining payments going to your beneficiary.
A Certain-and-Continuous (C&C) Annuity is a retirement payout option that ensures you receive monthly benefit payments for a guaranteed period — typically 5, 10, or 15 years — or for the rest of your life, whichever lasts longer. In PBGC-trusteed single-employer pension plans, retirees can choose one of these guaranteed periods to provide more predictable income and extra protection for their families.
How a Certain-and-Continuous (C&C) Annuity Works
The idea behind a Certain-and-Continuous annuity is simple:
You are guaranteed to receive payments for at least a set number of years, even if you pass away before the period ends. If you live longer than the guaranteed period, payments continue for your entire lifetime.
PBGC (Pension Benefit Guaranty Corporation) offers three options:
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5-year Certain-and-Continuous annuity
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10-year Certain-and-Continuous annuity
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15-year Certain-and-Continuous annuity
The important detail is that the clock starts ticking when your payments begin, not when you pass away. For example, if you choose a 10-year period and start receiving payments at age 65, the 10 years are counted from that moment.
What Happens If the Retiree Dies?
This is where the “certain” part of the annuity matters. What happens depends on when death occurs:
1. If the retiree dies before the guaranteed period ends:
The designated beneficiary receives the same monthly benefit amount for the remainder of the guaranteed period.
This ensures that the retiree’s income does not disappear unexpectedly and offers meaningful protection for a spouse, child, or other beneficiary.
2. If the retiree dies after the guaranteed period ends:
Payments stop completely. Because the minimum guaranteed period has already passed, no further benefits are owed.
Simple Example
Imagine the following situation:
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Maria retires at age 62 and chooses a 10-year Certain-and-Continuous annuity.
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She begins receiving payments immediately.
Scenario A – Maria dies 4 years later:
Her beneficiary continues receiving the same monthly payment for the remaining 6 years of the 10-year period.
Scenario B – Maria lives for 18 more years:
She continues receiving her monthly payment for life.
If she dies after 18 years, the guaranteed period has long passed, so payments end at her death.
This shows how a C&C annuity balances lifetime income with financial protection for loved ones.
Why Choose a Certain-and-Continuous Annuity?
Retirees often select this option because it offers:
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Income security for a minimum number of years
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Continuation of payments to a beneficiary for the guaranteed period
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Lifetime income protection if the retiree outlives the guaranteed period
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Predictable cash flow for both retiree and family members
For people concerned about passing away soon after retirement, the C&C option helps ensure that years of pension contributions don’t go unused.
How It Compares to Other Pension Payout Options
Many retirees compare the C&C annuity to:
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Single-life annuities, which stop payments immediately upon death
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Joint-and-survivor annuities, which continue payments to a spouse but usually at a reduced amount
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Period-certain annuities, which pay only for a fixed number of years (not for life)
The Certain-and-Continuous annuity offers a middle ground:
a guaranteed period plus lifetime protection.
Final Summary
A Certain-and-Continuous (C&C) annuity ensures you receive retirement income for life while also guaranteeing that your beneficiary receives payments if you pass away before the selected 5-, 10-, or 15-year period ends. Because the guaranteed period begins when payments start, not at death, retirees gain both personal financial security and peace of mind for their families.
For anyone comparing pension benefit options — including those researching PBGC guarantee rules, what a C&C annuity is, or ways to protect pension benefits — this choice offers a straightforward, reliable structure designed to support long-term financial well-being.
