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An HR Glossary for HR Terms

Glossary of Human Resources Management and Employee Benefit Terms

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What is Annuity?

An annuity is a long-term contract with an insurance company that guarantees the employee a steady stream of income at a future date, most frequently after retirement.

The amount of salary reduction to purchase a tax-sheltered annuity (TSA). This is a way to save additional money for retirement. Increasing your annuity will decrease the amount of taxes withheld.

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