MetLife NQA-FA Explained: The New Way to Structure Non-Physical Injury Settlements in 2026
On June 11, 2026, MetLife launched the Non-Qualified Assignment Flex Agreement (NQA-FA) -- the first funding-agreement-based structured payment solution for employment, discrimination, and contract disputes. Here is how it works, who qualifies, and the tax math that could save you tens of thousands.
88,201
EEOC charges filed FY2025
A+ (XV)
AM Best rating Met Tower Life
Jun 2026
NQA-FA launch date
What Is the MetLife NQA-FA?
The Non-Qualified Assignment Flex Agreement (NQA-FA) is a new deferred payment solution launched by MetLife on June 11, 2026. It is designed for attorneys, brokers, and claimants resolving non-physical injury cases -- including employment litigation, wrongful termination, discrimination, contract disputes, construction defects, property claims, environmental claims, liability policy buy-outs, punitive damages, and attorney fees.
The critical innovation is that the NQA-FA uses a funding agreement rather than an annuity. This distinction matters enormously for tax purposes: traditional Non-Qualified Assignments (NQAs) use annuities that are subject to Internal Revenue Code Section 72(u), which requires payments to begin within one year. The NQA-FA is not subject to IRC 72(u), enabling deferred payments beyond one year and a much broader range of payment designs.
As MetLife VP Bejan Shirvani explained in the June 2026 announcement: "For many non-physical injury cases, payees increasingly call for delayed or customized payments that traditional structures don't support. This funding agreement solution expands the tools available to attorneys and brokers by combining greater flexibility in payment timing and structure with the strength of MetLife's guarantees."
NQA-FA vs. Traditional NQA: What Changed
| Feature | Traditional NQA | NQA-FA (New) |
|---|---|---|
| Payment start | Within 1 year (IRC 72u) | Deferred beyond 1 year |
| Vehicle | Annuity | Funding Agreement |
| IRC 72(u) applies | Yes | No |
| Payment flexibility | Limited | Lump sums, custom schedules, deferred starts |
| Eligible payees | Individuals | Individuals and businesses (with approval) |
| Issuer | Met Tower Life (A+ AM Best) | Met Tower Life (A+ AM Best) |
| Tax treatment | Taxable when received | Taxable when received (spread over time) |
| Case types | Non-physical injury | Non-physical injury (expanded) |
The Tax Math: Why Spreading Payments Saves Thousands
Non-physical injury settlements (employment, discrimination, contract) are taxable as ordinary income under IRC. Taking $500,000 in a single year pushes recipients into the 35-37% federal bracket. The NQA-FA allows that same $500,000 to be spread across 5, 10, or even 20 years -- keeping annual income in lower brackets and potentially saving $50,000-$100,000 in federal taxes alone.
Tax Impact: $500K Settlement (Single Filer, 2026 Brackets)
| Scenario | Annual Taxable | Total Federal Tax | Effective Rate | Net Received |
|---|---|---|---|---|
| Lump Sum Year 1 | $500,000/yr | $150,439 | 30.1% | $349,561 |
| NQA Spread 5 Years | $100,000/yr | $17,400 | 17.4% | $413,000 |
| NQA Spread 10 Years | $50,000/yr | $6,307 | 12.6% | $436,930 |
Simplified illustration. Actual tax depends on filing status, deductions, state taxes, and other income. Consult a tax advisor.
EEOC Filings Are Surging: More Cases Need NQA Solutions
The NQA-FA launch comes at a critical time. In fiscal year 2025, 88,201 workplace discrimination charges were filed with the EEOC -- flat from the prior year but up 9% compared to FY2023 (MetLife, 2026). As settlement volumes for employment and discrimination cases increase, demand is growing for structured payment options that were previously unavailable for non-physical injury cases.
EEOC Workplace Discrimination Charges Filed Per Year
Source: U.S. EEOC annual reports; MetLife press release June 2026.
Which Case Types Qualify?
NQA-FA Eligible Case Types
Distribution estimate based on EEOC data and MetLife NQA product literature.
NQA-FA Tax Savings Calculator
Lump Sum Tax
$150,500
NQA-FA Spread Tax
$87,000
You Save
$63,500
Simplified estimate using 2026 federal brackets. Does not include state taxes or deductions.
Already Have a Structured Settlement?
The NQA-FA is for new settlements being structured. If you already have payments and are considering your options, use our tools to understand your current value.