Life Insurers: Filing Guidance
Withdrawal Rates for Guaranteed Living Withdrawal Benefits in Annuities
Guidance Date: 07/12/2023
Section 50-2.9(h)(2) of Insurance Regulation 47 sets forth standards on the profile of withdrawal benefits under Guaranteed Living Withdrawal Benefit (“GLWB”) provisions or riders. These standards are effective January 1, 2024.
Companies currently issuing policy forms with GLWB benefits that are not already in compliance with the standards in §50-2.9(h)(2) will need to update their policy forms prior to the effective date. This guidance is intended to assist companies in expediting approval of updated policy forms.
I. Slope Requirements
The focus of §50-2.9(h)(2) is the slope of the benefit amounts by attained age (or quinquennial attained age group) for all contracts at the same duration from the effective date of the GLWB contract or rider. The following table presents the slope requirements from the regulation:
| Age Group | % Increase |
| 60-64 | - |
| 65-69 | 6% |
| 70-74 | 7% |
| 75-79 | 8% |
| 80-84 | 9% |
| 85-89 | 10% |
| 90-94 | 12% |
| 95+ | 14% |
Assessing compliance with the regulation should involve the examination of benefit amounts in a matrix similar to the following:
The slope of the entries in each column would be compared to the percentages appearing in the regulation. The number of columns would be determined by the period over which:
- deferral credits are added to an initial withdrawal percentage; or
- increases to an initial benefit base are effected.
For implied issue ages that exceed the issue age limit for the rider, the table would be left blank.
II. Filing Process
- Policy Forms that conform to the Safe Harbor.
- The table in §50-2.9(h)(2) of Regulation 47 provides a “safe harbor” for the slope of the benefit amounts under a GLWB provision or rider. To expedite approval, policy forms that conform to the safe harbor may be submitted using the Circular Letter No. 6 (2004) certified process. The SERFF Filing Description should indicate that the GLWB benefit conforms to the safe harbor in Regulation 47.
- Policy Forms that do not conform to the Safe Harbor.
- If a company chooses to deviate from the safe harbor, the company has two filing options:
1. Submit the policy forms using the regular Prior Approval process; or
2. A company may send an inquiry requesting that the Department review the deviation from the safe harbor. If the Department finds the deviation acceptable, the Department may grant the company permission to submit the policy forms using the certified process. The Department will not review the entire policy form. Review will be limited to an assessment of the deviation from the safe harbor and will be considered on a case-by-case basis. Requests should be sent via email with the subject line “GLWB Safe Harbor Deviation”.
3. When submitting for prior approval or when requesting that the Department review the deviation from the safe harbor, the company should provide a matrix similar to the example discussed above. This will help the Department expedite the review.
III. Slope of GLWB on Fixed Annuities
The Department reviews guaranteed living withdrawal benefits offered with fixed annuities on a case-by-case basis in accordance with Insurance Law §4223 and §3201. Although the safe harbor in §50-2.9(h)(2) of Regulation 47 is not applicable to fixed annuities, the Department does not object to companies using this same slope for GLWBs on fixed annuities.
Contact Person
Questions concerning this guidance should be emailed to [email protected].