SunWise Elite Plus | Terminology

Terminology

GGWB Base Amount – the net amount contributed to SunWise Elite Plus GWB units, either by depositing money or switching existing SunWise Elite units to SunWise Elite Plus GWB units, adjusted by income guarantee resets.

Remaining GWB – the total amount guaranteed to be returned in payments. Includes initial and additional deposits, 5% annual guaranteed income bonuses and income guarantee resets and reduced by withdrawals on a dollar-for-dollar basis.

GWB Adjusted Base Amount – the GWB Base Amount plus 5% bonuses and income guarantee resets.

Guaranteed Withdrawal Amount (GWA) – 5% of the GWB Adjusted Base Amount, which is the maximum amount the client is guaranteed to receive each year during the GWB withdrawal period. The GWA for the initial calendar year is pro-rated based upon the number of months left in the year, including the purchase month. Election Deadline for choosing the GMWB rider – either the 80th birthday of the annuitant, or 20 years prior to contract maturity.

GWB Deferral – during the withdrawal period, any deferred payment that is carried forward and available in future years, to a maximum of 15% of the adjusted GWB Adjusted Base Amount or three times the LWA/GWA. The GWB Deferral will be reset to zero each time the LWA or GWA is reset. There are no deferrals after the contract maturity date.

GWB Lifetime Option – client receives a Lifetime Withdrawal Amount (LWA) of 5% of the LWA Threshold Amount for life. Available for clients who need income after age 65.

GWB Withdrawal Period Option – client receives a Guaranteed Withdrawal Amount (GWA) up to a maximum of 5% of the Remaining GWB for 20 years. Available for clients who need income before age 65.

Lifetime Withdrawal Amount or LWA – is calculated as 5% of the LWA Threshold Amount.

LWA Annuitant – the annuitant designated when the Lifetime Option is selected, and upon death of the first annuitant, the surviving annuitant.

LWA Threshold Amount – initially equal to the market value and the Remaining GWB on December 31 in the year the annuitant turns 65, which can be adjusted for additional deposits, bonuses, resets and excess withdrawals.

Automatic income guarantee resets – every three years, the Remaining GWB and the LWA threshold Amount are compared to the GWB Class Value (market value):

Before withdrawals begin, if the market value is greater than the Remaining GWB, we increase the GWB Base Amount, GWB Adjusted Base Amount and Remaining GWB to the GWB Class Value (market value) and the GWA is recalculated at 5% based on the new GWB Adjusted Base Amount.

When resets occur after withdrawals have begun:

For the LWA option, if the GWB Class Value (market value) is greater than the LWA Threshold Amount, we increase LWA Threshold Amount and recalculate the LWA to 5% of the new threshold.

For the GWA option, if GWB Class Value (market value) is greater than the Remaining GWB, we:

a) increase the GWB Base Amount, GWB Adjusted Base Amount and Remaining GWB to the GWB Class Value,
b) keep the GWA constant
c) and extend the GWB Withdrawal Term, so that the new term equals the new RGWB (Account Value)/GWA.

If the adjustment results in a GWB Withdrawal Term greater than 20 years, we:

a) increase the GWB Base Amount, GWB Adjusted Base Amount and Remaining GWB to the GWB Class Value,
b) increase the GWA to an amount equal to 5% of the new GWB Adjusted Base Amount
c) and change the GWB Withdrawal Term to 20 years.
  Investment Options – all SunWise Elite funds are eligible for the Guaranteed Minimum Withdrawal Benefit. However 10% of the market value must be fixed income. For a complete breakdown of the fixed income held by each fund, please see the Information Folder.

Withdrawals:

First year withdrawals – payments are pro-rated based on the month of deposit, and clients receive 1/12 of the GWB Base amount for every month invested.

Excess Withdrawals – Before age 65, withdrawals in excess of the GWA can have a negative impact on future payments amount – the GWB Base Amount, GWB Adjusted Base Amount and Remaining GWB Amount are reset to the market value of the SunWise Elite Plus units and the GWA is recalculated to equal 5% of the GWB Adjusted Base Amount.

Excess Withdrawals on or before December 31/Age 65, if in any calendar year on or before December 31/Age 65 your client makes an Excess Withdrawal and the GWB Class Value immediately following such Excess Withdrawal is less than the Remaining GWB immediately before such Excess Withdrawal, we will:

(i) reset the GWB Base Amount, GWB Adjusted Base Amount and Remaining GWB to an amount equal to the GWB Class Value immediately following such Excess Withdrawal, and
(ii) recalculate the GWA to an amount equal to 5% of the GWB Adjusted Base Amount immediately following such reset. This will have the effect of extending the GWA Withdrawal Term to a new 20-year period.

If in any calendar year on or before December 31/Age 65 your client makes an Excess Withdrawal and the GWB Class Value immediately following such Excess Withdrawal is equal to or greater than the Remaining GWB immediately before such Excess Withdrawal, we will reset your GWB Base Amount and Remaining GWB to an amount equal to the Remaining GWB immediately before such Excess Withdrawal. This will have no immediate effect on the GWB Adjusted Base Amount, GWA or GWA Withdrawal Term.

After age 65:

a) If the Excess Withdrawal exceeds the LWA, but not the GWA, the Remaining GWB is reduced by the amount of the Excess Withdrawal, the LWA Threshold Amount is reset to the new Remaining GWB and the LWA is recalculated to 5% of the new LWA Threshold Amount. This reduces the GWA Withdrawal Term but will have no immediate effect on the GWB Base Amount, GWB Adjusted Base Amount or GWA.
b) If the Excess Withdrawal exceeds the GWA but not the LWA, the Remaining GWB is reduced by the amount of the Excess Withdrawal. This reduces the GWA withdrawal term but will have no immediate effect on the GWB Base Amount, GWB Adjusted Base Amount, GWA, LWA Threshold Amount or LWA.
c) If the Excess Withdrawal exceeds the GWA and the LWA, the GWB Class Value after the Excess Withdrawal is compared to the LWA Threshold Amount.

If the GWB Class Value after the Excess Withdrawal is less than the LWA Threshold Amount, the Threshold Amount is reset to the GWB Class Value following the Excess Withdrawal and the LWA is recalculated to 5% of the new Threshold Amount. The GWB Base Amount, GWB Adjusted Base Amount and Remaining GWB are reset to the GWB Class Value after the withdrawal and the GWA is recalculated to 5% of the new GWB Adjusted Base Amount. This will extend the GWA Withdrawal Term to 20 years.

If the GWB Class Value (market Value) after the Excess Withdrawal is equal to or greater than the LWA Threshold Amount, no change will be made to the GWB Adjusted Base Amount, GWA, LWA Threshold Amount or LWA. However, the GWB Base Amount and Remaining GWB will be reset to an amount equal to the LWA Threshold Amount and the GWA Withdrawal Term will be reset to an amount equal to the new Remaining GWB divided by the GWA.

 

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