PRINCIPAL GUARANTEED
SEPARATE ACCOUNT
CREDITING RATE HISTORY*
July 1, 2017 to September 30, 2017
April 1, 2017 to June 30, 2017
January 1, 2017 to March 31, 2017
October 1, 2016 to December 31, 2016
July 1, 2016 to September 30, 2016
April 1, 2016 to June 30, 2016
January 1, 2016 to March 31, 2016
October 1, 2015 to December 31, 2015
July 1, 2015 to September 30, 2015
April 1, 2015 to June 30, 2015
January 1, 2015 to March 31, 2015
October 1, 2014 to December 31, 2014
July 1, 2014 to September 30, 2014
April 1, 2014 to June 30, 2014
January 1, 2014 to March 31, 2014
October 1, 2013 to December 31, 2013
July 1, 2013 to September 30, 2013
April 1, 2013 to June 30, 2013
January 1, 2013 to March 31, 2013
October 1, 2012 to December 31, 2012
July 1, 2012 to September 30, 2012
April 1, 2012 to June 30, 2012
January 1, 2012 to March 31, 2012
October 1, 2011 to December 31, 2011
July 1, 2011 to September 30, 2011
April 1, 2011 to June 30, 2011
January 1, 2011 to March 31, 2011
October 1, 2010 to December 31, 2010
July 1, 2010 to September 30, 2010
April 1, 2010 to June 30, 2010
January 1, 2010 to March 31, 2010
October 1, 2009 to December 31, 2009
July 1, 2009 to September 30, 2009
April 1, 2009 to June 30, 2009
January 1, 2009 to March 31, 2009
October 1, 2008 to December 31, 2008
1.18%
1.28%
1.32%
1.35%
1.49%
1.63%
1.88%
2.05%
2.26%
2.49%
2.70%
2.71%
2.73%
2.77%
2.80%
2.84%
2.90%
2.94%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.00%
3.01%
3.17%
3.20%
3.57%
3.86%
4.01%
4.25%
OVERVIEW
The Principal Guaranteed Separate Account means the Guaranteed
Group Annuity Contract – Separate Account (the contract), which has
been issued to Montefiore Medical Center. The contract provides a
guaranteed rate of return on all deposits.
RATE OF RETURN
Interest on deposits accrues at a pre-determined rate set each quarter,
and all retirement funds receive the same rate regardless of when they
were deposited. The composite of these rates is credited to participant
accounts under the plans and is calculated and reset every quarter. The
payment of interest and return of principal is guaranteed by Principal
Life Insurance Company (Principal Life) and backed by its full faith and
credit in addition to a separate portfolio of assets.
STABLE ADVANTAGES
The contract provides the conservative investment foundation
of the retirement plan. It offers plan participants three important
characteristics:
1. S tability of principal – the value does not fluctuate with the stock
and bond markets.
2. A
declared interest rate – participants know in advance what
interest will be earned.
3. N
o charges for transfers between investment options –
participants may transfer retirement funds into or out of the contract
without fees, a surrender charge, or market value adjustment
consistent with the provisions of the plan document.
If Montefiore, of its own accord, transfers any retirement funds or
terminates the contract prior to the maturity of the retirement funds,
such retirement funds will be subject to an adjustment.
*Rate displayed is the composite crediting rate of the Guaranteed Group Annuity
Contract – Separate Account. You may request the Principal Guaranteed Separate
Account Rate Setting Report for details on how the rates are set.
BENEFIT PAYMENTS
For all plan benefit events, benefit payments will be made at book value (i.e., no termination or surrender charge
adjustments) including:
• Retirement
• Death
• Disability
• Termination of employment
• Loans
A STABLE GUARANTEE
This contract guarantees principal and provides a stated rate of return backed by Principal Life, as described below.
Nationally recognized statistical rating organizations (NRSROs) publish financial strength ratings of U.S. life insurance
companies that are indicators of an insurance company’s ability to meet contract holder and policy holder obligations.
Such ratings are not a recommendation to buy, sell or hold an investment, are subject to withdrawal or revision at any time
by the assigning NRSRO, and each rating should be evaluated independently of any other rating. The following sets out
the financial strength ratings of Principal Life and the assigning NRSRO as of January 1, 2017, keep in mind that portfolio
holdings are subject to risk. Current rating information is available at principal.com.
• A+ (Superior) – A.M. Best Company – Second highest of 13 rating levels.
• AA- (Very strong) – Fitch Ratings – Fourth highest of 19 rating levels.
• A1 (Good) – Moody’s Investors Service – Fifth highest of 21 rating levels.
• A+ (Strong) – S&P Global – Fifth highest of 20 rating levels.
As an insurance contract, this is not an investment but is a guarantee backed by the assets in the Separate Account. The
Separate Account structure provides for the insulation from claims of Principal Life’s creditors for the separate account
assets that Principal Life uses to make payments of the guaranteed values under the contract. Thus, the investments held
in the Separate Account will be available to pay the contract’s guarantees even if Principal Life falls on hard times.
To the extent the assets in the Separate Account are not sufficient, the guarantee is also backed by the multi-billion dollar
general account of Principal Life.
This document is intended to be educational in nature and is not intended to be taken as a recommendation.
Third party ratings relate to Principal Life Insurance Company, the largest member company of the Principal Financial Group, only and do
not reflect any ratings actions or notices relating to the US life insurance sector generally. Ratings current as of January 2017. Ratings are
subject to revision or withdrawal at any time by the assigning agency, and each rating should be evaluated independently of any other
rating. Information is current as of the creation of this piece. Keep in mind that portfolio holdings are subject to risk.
Guarantees are based upon the claims-paying ability of the issuing insurance company.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
Insurance products, plan administrative services, and Separate Accounts which are available
through a group annuity contract, are provided by Principal Life Insurance Company, a
member of the Principal Financial Group® (Principal®), Des Moines, IA 50392.
CP9175AC-10 | © 2017 Principal Financial Services, Inc. | t170222108d5 | 05/2017