Compensation in Group Retirement Services (GRS) and Group Benefits (GB) will be disclosed to the client as follows.
|Direct compensation||Percent and dollar value of all direct compensation will be disclosed, including the dollar value for lump sum payments, such as stay or transfer bonuses.|
|Indirect compensation||There will be disclosure about an advisor’s participation in, or eligibility for, indirect compensation, but a dollar or percentage value will not be provided. For example, the statement might say, “Your advisor participates in our incentive programs and may be eligible for additional compensation, such as bonuses, persistency, or profit-sharing. Qualifying for these programs depends on various factors such as your advisor’s volume or persistency of business with us. The funding for such compensation is factored into the premiums we charge to all clients.”|
We will share our proposed language with the G19 Advisory Group and look forward to finalizing the standard disclosure language in collaboration with you.
|In-kind compensation||The total dollar value of any in-kind compensation will be disclosed when it exceeds $5,000/advisor/year, along with contextual information. For example, a financing arrangement between the advisor and insurer, such as commission advances or loans will be disclosed when it exceeds the $5,000 threshold.|