Now Available the MMBB Tax Guides for 2018! Click here

The MMBB Annuity

The MMBB Financial Services annuity provides you with lifetime monthly income in retirement. In order to make your annuity work for you, we recommend that you familiarize yourself with the definitions, options, protections and calculations that apply.

About Annuities

An annuity is an insurance product that pays income. There are two types of annuities, fixed and variable. A fixed annuity pays a fixed or guaranteed monthly amount year after year regardless of changing market conditions. Although that amount is guaranteed, there is no potential for the payments to increase. A variable annuity means that the amount paid “varies” based on the performance of the underlying investments of the annuity and changing economic conditions as well as several other factors.

Annuities can also be classified as deferred or immediate. With a deferred annuity, your money is invested and accumulates over a given period of time. Typically, distributions begin in retirement. An immediate annuity begins payouts to you ”immediately” after you create it.

Features of the MMBB Annuity

Lifetime income

The MMBB annuity provides you retirement income that will last as long as you live. If you choose one of MMBB’s joint annuity options, your spouse will also receive lifetime income in the event of your death.


The MMBB annuity is variable. This means that the amount paid to you has the potential to increase or decrease. The amount you receive changes based on how the investment markets perform as well as other factors. The advantage of a variable rate annuity is the potential for increased payments that allow you to keep pace with the rate of inflation in retirement or even exceed it.


The MMBB annuity is immediate. It begins paying lifetime income to you as soon as you establish it.

Downside guarantee

MMBB understands that our annuitants are balancing many factors that affect their income in retirement. When the markets experience a considerable drop in any given year, most variable annuities pass this negative investment experience along to annuitants resulting in a sharp decrease in annuity income. To avoid these undue financial challenges for our retired members, MMBB Financial Services provides downside protection to mitigate the impact of a sharp market drop.

In the event of a significant market decline, your annuity will not decrease more than 5% in the first year of a market downturn and will not decrease more than 10% in the second or subsequent years of market declines. This provides an increased measure of security and peace of mind even when the markets experience tremendous volatility.

4% Advanced earnings assumption

MMBB presumes that the Annuity Fund will earn at least 4% annually during your retirement years. We “give” this 4% earnings in advance. When you convert your account into an annuity, MMBB gives you 4% more annuity units than you actually purchase. For example, if you are initially credited with 100 annuity units when you convert your investment, MMBB advances you an additional 4% or four additional units.

Estimate Your Monthly Annuity Payment

If you are an MMBB member and would like an estimate of your annuity when you retire, please call us at 800.986.6222 to speak to a Senior Benefits Specialist.

Estimate Your Social Security Benefit

How Did the Downside Guarantee Work During the Great Recession?

MMBB’s annuity has a guarantee that takes some of the sting out of declining unique annuity unit values.

This is exactly what happened when the Great Recession hit in 2008 and the investment market cratered. While the actual value of a unit of the annuity fund declined to a low of $57.85 in February 2009, the payout value of a unit of the annuity fund only declined 5% — from $84.46 in 2008 to $80.24 in 2009.

The MMBB annuity provided our members with a soft landing during the Great Recession.

To see how the actual value of the assets underlying the Annuity Fund compare to the payout value, see the Gap Tracker Chart.