Guaranteed Benefit Base Calculation for Guaranteed Living Benefits
This Weekly Tip is being provided as a reminder for filers that the Additional Standards for Guaranteed Living Benefits for Individual Variable and Non-Variable Annuities require an initial benefit base to equal at least 100% of initial premium (ยง2.C.(1)(a)). The initial benefit base can exceed the initial premium payment but under current Uniform Standard requirements, it cannot be less than the initial premium payment. After establishment of the initial benefit base, Uniform Standards permit further increases and decreases to the benefit base as set forth in the Uniform Standard. Please note that these requirements are applicable to guaranteed minimum accumulation benefit features, guaranteed minimum withdrawal benefit features and guaranteed minimum income benefit features.
If you have any questions, please contact the Insurance Compact Office.
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