New PFIGO and PGO vintages opening soon
Starting Dec. 1, 2023, Principal® Fixed Income Guaranteed Option (PFIGO) and Principal® Guaranteed Option (PGO) will have new vintages available for new sales.
A “vintage” refers to a distinct composite crediting rate and the guaranteed interest rates that underlie that composite crediting rate. Each new vintage will have new underlying guaranteed interest rates and a distinct composite crediting rate from the existing vintages of PFIGO and PGO.
What do I need to know?
The composite crediting rate for the new PFIGO vintage—the PFIGO Vintage-Current (December 2023)—will be 5.95% for Dec. 1, 2023 – May 31, 2024.
The composite crediting rate for the new PGO vintage—the PGO Vintage-Current (December 2023)—will be 6.05% for Dec. 1, 2023 – May 31, 2024.
We’ll continue to keep the existing vintages for both PFIGO and PGO for existing plans. The existing vintages for PFIGO and PGO are Vintage-Primary and Vintage-Current (June 2022), which will become the Vintage-Subsequent (June 2022) once the new Vintage-Current (December 2023) is established.
All underlying guaranteed interest rates associated with each vintage for each contract remain in place and continue to have their own composite crediting rates reset. Additional vintages may be created in the future when the requirements and frequency defined by the contract are met.1
Financial professionals and plan sponsors with plans that have an interest in PFIGO or PGO will be notified of the new vintage in the coming weeks.
Please contact your Principal® representative or the Advisor Support Team at 800-952-3343 if you have any questions.
1 The contract for this product defines when a new vintage is to be opened, which is when the actively marketed vintage has been in effect for at least 12 months and the new Guaranteed Interest Rate on the underlying guarantees is at least 0.50% higher than the resetting composite crediting rate of the actively marketed vintage. Additional vintages may be created in the future when the requirements and frequency defined by the contract are met.
For financial professional/institutional use only.
The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment or tax advice. You should consult with appropriate counsel, financial professionals and other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.
Principal Fixed Income Guaranteed Option is not FDIC insured and is not an obligation or deposit for any bank nor guaranteed by a bank. The guarantees provided with regard to the Principal Fixed Income Guaranteed Option are supported by the general account of Principal Life.
Principal Guaranteed Option is not FDIC insured and is not an obligation or deposit for any bank nor guaranteed by a bank. The guarantees provided with regard to the Principal Guaranteed Option are supported by the general account of Principal Life.
Principal Fixed Income Guaranteed Option is the Group Annuity Contract - Custodial Guaranteed Interest Contract and Principal Guaranteed Option is the Custodial Guaranteed Option Group Annuity Contract available through Principal Life Insurance Company, a member of the Principal Financial Group®.
An interest in Principal® Fixed Income Guaranteed Option or Principal® Guaranteed Option may be obtained by a nonqualified plan sponsor to use that interest as a corporate asset to aid in financing liabilities to nonqualified plan participants. Participants in a nonqualified plan do not own an interest in the contract, although a liability owed to a nonqualified participant may be tracked by an interest attributed to such nonqualified participant.
Insurance products and plan administrative services provided through Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392.
Principal®, Principal Financial Group®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.
© 2023 Principal Financial Services, Inc.
PQ13183A-01 | 3177690-102023 | 10/2023
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