by John Darer CLU ChFC CSSC RSP CLTC
Last week the IRS issued a ruling that finally clears the path for the ELNY Hardship Fund to make awards to applicants who have demonstrated that they face genuine hardships as a consequence of benefit reductions under ELNY annuities. JAMS, as administrator of the Hardship Fund, is expected to send letters to successful applicants by the week of March 17,2014.
The ELNY Hardship Fund originally had hoped to announce awards last August, at the time reductions of ELNY annuity benefits took effect; but awards were delayed because of unexpected difficulty in obtaining the necessary IRS ruling, according to the National Structured Settlements Trade Association in a February 28, 2014 note to its members.
The ELNY Hardship Fund was voluntarily established by life insurance companies. Following the Executive LIfe Insurance Company of New York Liquidation August 8, 2013, approximately 1,400 ELNY annuity payees had benefits reduced, more than 700 reportedly have applied for ELNY Hardship Fund awards. For those applicants who have shown that they face genuine hardships, awards from the $100 million Fund should offer a welcome (if overdue) measure of relief.
Link to ELNY Hardship Fund FAQ