I prefer to view the Performance Annuity Product Disclosure document in PDF format (full version).
Product Features and Benefits
With Standard Life's Performance Annuity, you can take advantage of the combination of a fixed and a variable portion.
- The fixed portion gives you the security of guaranteed income for life.
- The variable portion gives you the possibility to grow your income since this portion of the Performance Annuity is based on the performance of selected leading indexes.
Standard Life offers four pre-determined profiles to choose from: Conservative, Moderate, Growth and Aggressive. Each profile combines a fixed base income and a variable portion offering the potential for increased income.
Performance Annuity profiles
| Target Mix | ||
|---|---|---|
| Conservative Profile | Fixed portion: | 70% |
Variable portion:
| 30% | |
| Moderate Profile | Fixed portion: | 60% |
Variable portion:
| 40% | |
| Growth Profile | Fixed portion: | 40% |
Variable portion:
| 60% | |
| Aggressive Profile | Fixed portion: | 25% |
Variable portion:
| 75% | |
| If our pre-determined profiles don't suit your needs, you can always create a customized Performance Annuity with the help of your insurance representative. | ||
Characteristics of our pre-determined profiles
Pre-selected investment options
In order to maximize the growth potential of the variable portion of your annuity payment, it is based on the performance of the following two investment options:
| Canadian Equity Index | S&P/TSX Composite Index (Total Return) |
| Global Equity Index1 | MSCI World Free Net Index |
1 The Global Equity Index returns are denominated in Canadian dollars and thus there is an exchange rate risk. U.S. equities are included in the Global Equity Index
And, since there are no Management Expense Ratios deducted, you get the benefit of the full investment return of the indexes.
A Fixed AIR
The Anticipated Investment Return (AIR) is the return you anticipate on the variable portion of your annuity. It also determines the initial payment for the variable portion of your annuity. For each of the four Performance Annuity profiles, the AIR is set at 5%.
How will your payment be affected? Here's an example.
| If actual investment return | Your variable income… | |
| is the same as the AIR (5%) | ›› | remains the same |
| is higher than the AIR (7%) | ›› | goes up (by about 2%)2 |
| is lower than the AIR (4%) | ›› | reduces (by about 1%)3 |
2 (1.07/1.05 -1) = 1.90%
3 (1.04/1.05 - 1) = - 0.95%
- Building a custom Performance Annuity
- Adapt Performance Annuity to your changing needs
- Annuity Types
- Payments
- Snowbird feature
- Taxation
- Security Benefits
- Performance Annuity Investment Options
Guaranteed and Non-guaranteed Product Features
Performance Annuity payments are guaranteed to be made as long as the policyholder (and spouse, if applicable) is alive*. In addition, if the policyholder selected a guaranteed period, the payments will be made at least until the end of the guaranteed period. However, the variable portion of the annuity payments is not guaranteed and will increase or decrease according to fluctuations in the investment options chosen.
* In the case of a term certain Performance Annuity, payments are made until the end of the guaranteed period.
Premiums and Fees Information
Minimum premiums
The minimum single premium required to purchase a Performance Annuity is $25,000. For a customized Performance Annuity, the minimum per investment option is $5,000.
Fees
For the variable portion of your payments, you get the benefit of the full investment return of the indexes since there are no management fees deducted.
Limitations, Reductions and Exclusions
Performance Annuity is available on a registered and non-registered basis.
Provincial legislation in New Brunswick and Quebec does not allow for the purchase of a Performance Annuity with locked-in source of funds.
Standard Life reserves the right to request approval for the purchase of a Performance Annuity from the Pension Plan administrator.
Before settling any claims, we require proof that is satisfactory to us.
Consumer Rights and Responsibilities
Under our Total Customer Satisfaction Guarantee, the policyholder has the right to return the policy if unsatisfied with the sales process, at any time within 6 months of the issue date. The policy will then be deemed void. A refund will be made equal to the premium required to purchase the same annuity at the date the guarantee is invoked. The refund may also be subject to taxation legislation.
The refund under the Total Customer Satisfaction Guarantee will not apply if the policy has been issued in lieu of a previous policy or as a result of exercising an option contained in the previous policy.
For complete details, see our Total Customer Satisfaction Guarantee.
Effective Date of Coverage
The policy takes effect when Standard Life receives the completed Annuity Registered as an RSP or a Non-Registered Annuity Application form and the premium payment.
Learn more about our Performance Annuity in our client pamphlet entitled This is all about Performance Annuity.
