Producer Compensation Disclosure for Single Premium Group Annuity Products
Brokers and consultants ("Producers") are generally compensated for the sale or placement of single premium group annuity products. In many cases, Producers are paid a commission by The Principal Financial Group. Commissions (determined by the Producers and a plan sponsor, fiduciary, trustee or other authorized plan representative) are calculated either as a flat amount, or as a percentage of the premium paid to The Principal Financial Group at the time of the sale or placement of the single premium group annuity contract. Generally, the amount of the commission can be up to 6% of the total premium.
The Principal requires the prior written consent of an authorized plan representative for commission to be paid by The Principal to a Producer in connection with the sale of Principal's single premium group annuity products.
The Principal does not pay other compensation to Producers in connection with the sale of its single premium group annuity products. Compensation means anything of material value given to a Producer other than commissions, customary, non-excessive meals or entertainment expenses, reasonable education, training or conference expenses, or compensation paid to Principal employees or Principal Producers that are captive or are exclusive to Principal.
At times, a Producer may receive a fee directly from the plan sponsor, fiduciary, trustee, or other authorized plan representative. The amount of the fee, which may either be in lieu of or in addition to a commission paid by The Principal, is determined by the Producer and an authorized plan representative and is paid directly by the plan representative.
The Principal is committed to disclosing to customers all compensation paid to Producers of single premium group annuity products, and will update this website with additional information as necessary.