Effective October 20, 2023, 4:00 pm (ET), a change will be made to the guarantee fee calculation method for new contracts.
A new version of the “IAG Savings and Retirement Plan Information Folder” will be available for download on October 23, 2023. As of this date, all new clients must receive a copy of this document, and previous hard-copy versions must be destroyed. Hard copies of the new version will be available to order later this fall.
The new calculation method provides a better representation of the actual value of the guarantees offered to clients and brings iA into alignment with industry standards. Here’s what you need to know about this change:
- Guarantee fees are now calculated on the basis of the guaranteed minimum value at death instead of the market value as at December 31.
- The applicable fees are calculated at the end of each quarter instead of once a year on December 31, which can lead to variations in the amount deducted each quarter. The guarantee fee rate remains unchanged for all funds.
- This change has no impact on contracts in force.
Key dates
Please note that it is the advisor’s responsibility to provide the client with the correct “Information folder” according to the fee calculation method stipulated in the contract.
| Old guarantee fee calculation method |
Before October 20, 2023 Only compliant applications received before this date will be subject to the old guarantee fee calculation method. To ensure timely processing, electronic applications requiring administrative approval must be received no later than 4:00 pm on October 18. |
| New guarantee fee calculation method |
After October 20, 2023 We will automatically process applications received after this date using the new guarantee fee calculation method. |
If you have any questions, please feel free to contact your sales teams.
