As a supplement to other fixed structured settlement cash flows for plaintiffs or trial lawyers for structured legal fees, where there is a long term horizon.  The pricing of the index linked structured settlement is similar to a 2.3% COLA.  Payments commencing at the same time will be lower than fixed level payments and thus sufficient time must elapse to catch up with the fixed level payments.

Payees participate in part of the upside of the S&P500  with no reduction if the S&P 500 is down between the measuring points. Those who are confident in the long term prospects for the S&P 500 may find this an attractive as a supplement or alternative.

equity index structured settlement


Structured settlements with an Index-Linked Annuity Payment Adjustments are a new option for both plaintiffs and trial lawyers who want to structure attorney fees.

In this type of structured settlement, structured settlement payments  increase annually if there are positive changes in the Standard & Poors 500  (S&P 500) between two annual measuring points  (“point to point) with a cap of 5%. Payments will not reduce if the S&P 500 goes down between the two annual measuring points. The first adjustment would be effective on the contract anniversary following the first payment on the subject income stream and subsequent adjustments would occur on future contract anniversaries.   Only structured settlement income payments are eligible. 

Pacific Life sought, and on April 14, 2014 received, a favorable IRS Private Letter Ruling 201435006 that supports the transaction.  The PLR was subsequently published August 29, 2014. For a copy of PLR 201435006 please click here

Watch John Darer's introductory video on Indexed Linked Structured Settlements on this page and/or contact us for more details   


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