F&G: Guaranteed minimum withdrawal benefit (GMWB) payout changes

published by William John on February 20, 2012 - 8:15pm

Fidelity & Guaranty announced upcoming changes to their Guaranteed Minimum Withdrawal Benefit (GMWB) tables, to be implemented effective April 1, 2012. These changes will impact both joint and single annuitants for all of their fixed indexed annuity products: The Elite, the Accelerator Bonus, the Choice 9 and the Accumulator Plus.

The following rules apply to any new fixed indexed annuity business being submitted to Fidelity & Guaranty during this transition:

New Transition Rules Based on April 8, 2012 Buy Date for Reduced Payout Percentages

  • Any policy issued with an April 1, 2012 buy date will receive the higher GMWB payout percentages.
  • Any policy issued with an April 8, 2012 buy date will receive the lower payout percentages.
  • This rule applies to Cash with application and any that involve a transfer of funds.

The new payout percentages are as follows:

Attained Age
Payout Percent - Single
Payout Percent - Joint
0-49
N/A
N/A
50-54
3.50%
3.00%
55-59
4.00%
3.00%
60-64
4.50%
4.00%
65-69
5.00%
4.00%
70-74
5.50%
5.00%
75-79
6.00%
5.00%
80-84
6.50%
6.00%
85-89
6.50%
6.00%
90+
6.50%
6.00%

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