What Are Sovereign Annuities? 
The term Sovereign annuities is generally associated with defined benefit programs in Ireland . Sovereign annuities are designed to widen the options available to trustees of defined benefit programs . Sovereign annuities generally invest in bonds . The primary difference between sovereign annuities and conventional annuity products is that the agreed payments from the sovereign annuity can be reduced if there is an event of non-performance such as a default or restructuring of the reference bonds . 