Compensation Changes for Principal® Income Annuity Effective 01/15/21

In order to better align with industry standards, we will be making compensation changes on the Principal^® Income Annuity and supplemental income annuity contracts, effective January 15, 2021 in all states.  The total compensation received for Principal Income Annuity and supplemental income annuity sales will be changing as outlined below for contracts with premium amounts of $2 million and under.

• 5-year fixed period will be lowered from 2.75% to 1.5%
• 6-9-year fixed periods will be lowered from 2.75% to 2%
• Management compensation fee will be changed to 0.50% for 5-9-year fixed period

New Business Guidelines

The compensation changes will depend on the illustration date applicable to the contract.  For example, an illustration dated January 8^th will receive the compensation in effect on January 1^st.  For an illustration dated January 15^th or later, the compensation received will be the new compensation tied to the January 15^th rate period.  Normal rate lock-in procedures will apply.