The GLWB Bonus Rate, which will apply on December 31, 2019, will be the rate obtained by applying the following formula: the 10-year Government of Canada benchmark bond yield (CANSIM Identifier V39055) as at the last business day of November of the current calendar year, plus 1.5%. This rate is subject to a minimum of 2.5% and a maximum of 8%.
The benchmark rate as at November 29 was 1.46%. With the 1.5% added to this rate, the GLWB Bonus Rate for clients who had an existing Contract that was purchased prior to 2019 and made no withdrawals in 2019, will be 2.96%.
Reminder: Clients who opened a Contract in 2019 and didn’t make any withdrawals, will be entitled to the First-year GLWB Bonus Rate of 6%.
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