Consumer Sues Athene Over ‘Miscalculated’ Annuity Payments

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An Alabama resident has filed suit against Athene Annuity & Life Assurance Company for allegedly misinterpreting the amount of his monthly annuity withdrawals and breaching its contract with him. According to the suit, the plaintiff purchased from the defendant a single premium deferred annuity. Under the terms of the annuity, the plaintiff was allegedly permitted to make monthly withdrawals up to a certain percentage that would be determined by the age of the annuitant. The plaintiff says he elected the “joint life” withdrawal option, which decreased the percentage he would receive but guaranteed that his wife could continue to receive the payments in the event of his death.

According to the lawsuit, the plaintiff received a letter from Athene informing him that it had miscalculated the percentage of his monthly withdrawals and that the recalculated amount would be based on his wife’s age. It noted that in the case of “joint annuitants” the percentage is calculated using the age of the younger annuitant. The plaintiff argues that his wife is named only as a beneficiary and not a joint annuitant, and that the defendant misinterpreted and breached its contract by lowering his monthly withdrawals.