GABC Annuities Sold to Pacific Life: What ELNY Payees Should Know

On July 1, 2026, Pacific Life Insurance Company assumed all of the remaining annuity obligations of the Guaranty Association Benefits Company (GABC). If you receive structured settlement payments that trace back to Executive Life Insurance Company of New York (ELNY), Pacific Life now stands behind them. Your benefit amounts do not change, your payment dates do not change, and the phone number you have always used still reaches the right place. Below we cover what the sale did and did not change, why you will receive two tax forms for 2026, and what it means if you ever decide to sell some of your payments.

This is the final chapter of a story that started more than 30 years ago, when ELNY collapsed and a safety net stepped in to keep the checks going. For most of the roughly 9,700 former ELNY payees, the practical effect of the sale is close to nothing. For a smaller group, the details are worth knowing. We work with these annuities regularly, so here is the plain version.

What happened to GABC's annuities in 2026?

GABC sold its remaining annuity obligations to Pacific Life through an assumption reinsurance agreement. A New York court approved the transaction, and it closed on July 1, 2026.

The move was years in the making. When GABC took over the ELNY annuities back in 2013, it agreed to eventually transfer them to a commercial life insurance company. In 2024 it ran a competitive bidding process among several insurers and selected Pacific Life. The Supreme Court of the State of New York in Nassau County, which oversees the ELNY liquidation, signed off on the agreement before it could close.

Here is how the final stretch played out.

Date	What happened
December 10, 2025	GABC asked the Nassau County court to approve the sale.
April 20, 2026	The court approved the assumption reinsurance agreement.
July 1, 2026	The sale closed and Pacific Life assumed all remaining GABC annuities.

You can read the court filings and orders on GABC's website. If your payments come from GABC, our GABC transfer guide covers the issuer details in one place.

Will my GABC benefit payments change?

No. Your payment amounts, dates, frequency, and duration stay exactly the same. Payments continue without interruption, and the contact information you have always used still reaches the administrator.

The only real change is the name behind the annuity. Pacific Life now administers what GABC administered before, using the same mailing address, phone number, and fax line. If your check arrived on the first of the month, it still arrives on the first of the month. If you had a life contingent payment that runs for as long as you live, it still runs for as long as you live.

The sale also did not reopen the question of reduced benefits. When ELNY was liquidated, about 85% of payees kept their full scheduled benefits, and about 15% saw reductions where their benefits sat above their state's guaranty association coverage limit. Wherever your benefit landed after that restructuring is where it stays. Pacific Life stepped into the exact same obligations.

Why you will receive two 1099s for the 2026 tax year

Because the sale closed mid-year, GABC reports the payments it made through June 30, 2026, and Pacific Life reports the payments made from July 1 forward. Two forms cover one tax year.

Expect a 1099 from GABC for benefit payments made between January 1 and June 30, 2026. Expect a second 1099 from Pacific Life for payments made between July 1 and December 31, 2026. This is the normal result of any mid-year transfer and does not mean anything went wrong.

How those payments are taxed is a separate question. Many structured settlement payments tied to a personal physical injury case are excluded from federal income tax, though the treatment depends on your specific settlement. If you are unsure how your payments are reported, a quick call with a tax advisor will settle it before you file.

How the sale affects selling your GABC payments

It changes very little. You can still sell your payments through the standard court-approved transfer process, but the request now goes through Pacific Life instead of GABC.

Every state has a Structured Settlement Protection Act that lets you transfer future payments for a lump sum after a judge approves the sale. That court step is a protection, not a hurdle. A judge reviews the terms and confirms the sale is in your best interest before anything moves, which is exactly what happens at the court hearing. The process usually runs 45 to 90 days from filing to funding, and it works the same now that Pacific Life holds the annuity.

The one practical difference is where the paperwork lands. Verification of benefits letters and transfer processing now come from Pacific Life, using the same contact information GABC used. We have handled transfers out of the former ELNY portfolio for years, so we know how these annuities are documented and where the slow points tend to be. We build that into the timeline we set with you, and we coordinate directly with Pacific Life so you do not have to. The process is the same as selling any structured settlement, whether or not it came from GABC.

One more thing worth saying. Get more than one quote before you sell. We say that because we are confident in our pricing, and the amount we quote is the amount you receive. Our structured settlement company comparison lays out how the major buyers stack up on funding speed, transparency, and whether they are direct funders or brokers. If your payments run for life, our guide to life contingent payments explains how those are valued, since many ELNY annuities are structured that way.

How ELNY became GABC and then Pacific Life

Executive Life of New York failed in 2012 after a risky investment strategy caught up with it. GABC, a nonprofit backed by state guaranty associations, took over the annuities in 2013 and held them until Pacific Life bought them in 2026.

ELNY actively sold structured settlement annuities in the 1970s and 1980s, back when it carried top financial-strength ratings. A risky bond strategy eroded its assets, and New York regulators placed it into rehabilitation in 1991. After two decades of decline, a court declared ELNY insolvent in 2012, and GABC assumed the surviving obligations in August 2013.

GABC was never meant to run forever. It was a captive, nonprofit vehicle built to keep benefits flowing while the guaranty associations arranged a permanent home for the annuities. Pacific Life, one of the largest and most established life insurers in the country, is that permanent home. You can follow the ongoing distribution of ELNY's remaining assets on the ELNY Liquidator's website, and general company information is available at pacificlife.com.

Frequently Asked Questions

Did GABC sell my annuity to Pacific Life?

Yes. On July 1, 2026, Pacific Life assumed all of GABC's remaining annuity obligations through an assumption reinsurance agreement that a New York court approved on April 20, 2026. If you received GABC or former ELNY payments, Pacific Life now stands behind them.

Will my payments stop or change because of the sale?

No. Your payment amounts, dates, and frequency stay the same, and payments continue without any interruption. The sale moved the annuity to a new company, but it did not touch the terms of your benefits.

Who do I contact now about my annuity?

Pacific Life, using the same contact information GABC used. Call (800) 421-8850, write to PO Box 4366, Clinton, IA 52733-4366, or fax (803) 333-2417. Have your policy or contract number ready when you call.

Why did I get two 1099s for 2026?

The sale closed in the middle of the year. GABC reports the payments it made from January through June 2026, and Pacific Life reports the payments from July through December. Receiving two forms for one year is normal after a mid-year transfer.

Can I still sell my structured settlement payments after the sale?

Yes. You can sell GABC or former ELNY payments through the same court-approved transfer process as before, with requests now routed through Pacific Life. CSF handles the filings and coordinates with Pacific Life, and you can start with a free quote.

Is my annuity safer now that Pacific Life holds it?

Your benefits are now backed by Pacific Life, a major national life insurer, rather than a nonprofit safety-net entity. The obligations transferred in full, so the payments you were promised are the payments Pacific Life now owes.

If you receive GABC or former ELNY payments and you are weighing whether to sell some of them, we can tell you what they are worth in one phone call. Call us at (800) 317-3769 or request a quote online. There is no cost, no obligation, and no pressure, and the amount we quote is the amount you receive.