New York Reg 47 updates are coming. We've got you covered.
Beginning January 1, 2024, an amendment to New York Insurance Regulation 47 (Reg 47) will impact variable annuity business issued in the state of New York and affects Principal® Lifetime Income Solutions II (PLIS II) Variable Annuity contracts.
To comply with the new amendment, beginning Jan. 1, 2024, PLIS II contracts will now offer:
- 5-year age increments for all lifetime withdrawal percentages up to age 95
- Different withdrawal benefit payout percentages between age bands
How this affects new business
The Jan. 1 updates affect the timing of new contracts submitted over the next few months. To comply with Reg 47 normal rate lock procedures won’t apply.
- If you want to use the current withdrawal percentages, contracts must be issued and delivered by Dec. 31, 2023. Please keep this in mind when money is transferred from another carrier to Principal (Reg 60).
- If a contract is issued Jan. 1, 2024, or after, the new Reg 47 withdrawal percentages will apply, even if the application was signed earlier. The rates your client receives with the contract may be different than what was in effect when the application was signed.
Marketing support for Reg 47 changes
New marketing materials for the state of New York will be made available to help you discuss PLIS II and its income rider options with your clients. We’ll update you when these are available.
In the meantime, if you have any questions, don’t hesitate to reach out. You can contact us at Principal Annuity Sales, 866-309-1623.
For financial professional use only. Not for distribution to the public.
Annuity products and services are offered through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, Iowa 50392, principal.com.
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