What is a Qualified Pre-Retirement Survivor Annuity (QPSA)?

A Qualified Pre-Retirement Survivor Annuity (QPSA) is specifically designed to provide financial protection for the surviving spouse of a deceased employee who was part of a pension plan. When an employee who is covered by such a plan passes away before retirement, the QPSA ensures that the surviving spouse receives a specified benefit in the form of an annuity, which provides a stream of income.

This feature of pension plans is crucial, as it stipulates that the employee's spouse is entitled to a portion of the retirement benefits, even if the employee has not yet retired. The purpose of the QPSA is to provide security to the spouse, thereby addressing the financial risks faced by families when the primary earner passes away unexpectedly.

The other choices do not align with the definition of a QPSA. For instance, benefits paid to the retired employee (such as choice A) refers to distributions made after retirement, not to survivors. Tax deductions for retirement savings (choice C) pertain to contributions made to retirement accounts rather than survivor benefits. An investment opportunity for spouses (like choice D) does not accurately describe the financial security mechanism that a QPSA provides; instead, it focuses on a specific benefit for survivors named under pension