Product changes for Early Redemption Charge Recovery Credit Program
We are pleased to announce two new enhancements to the Empire Life Early Redemption Charge (ERC) Recovery Credit Program.
1. Empire Life expands External ERC Recovery Credit Program offering, greater flexibility to customers
Effective November 1, 2022, the Early Redemption Charge (ERC) Recovery Credit Program 1will be expanded to include transfers from external institutions into the No Load (NL) purchase fee option, to allow your clients greater flexibility should they need to access their investment.
2. NEW: Internal ERC Recovery Credit Program for existing Empire Life customers
The Internal ERC Recovery Credit Program2 will compensate clients in the same way as the external program. This will allow existing customers to access the benefits of Empire Life GIF and Class Plus 3.0 segregated funds without incurring loss of capital to pay early withdrawal fees from legacy or discontinued Empire Life products.
IMPORTANT NOTE: Use of the NL option for External or Internal ERC Recovery Credits requires prior authorization from your MGA; please speak to your MGA back-office to confirm if your organization has provided approval.
REMINDER: The ERC Recovery Credit Program compensates clients for the early withdrawal charges they would incur if they were to redeem investments with an outstanding sales charge schedule.
The program provides recovery credits in the form of additional units of an eligible Empire Life GIF or Class Plus 3.0 segregated fund to clients equal to the amount of the early redemption charge. The purpose of the program is to assist clients who may wish to purchase an investment at Empire Life but do not want to incur a loss of capital to pay their early withdrawal fees.
Download our Information Circular for more details about the program.
If you have any additional questions about this change, please speak to your Empire Life sales representative.
1 ERC Recovery Credit Program only applies to purchases into Deferred Sales Charge (DSC), Low Load (LL) and No Load (NL) purchase fee options of Empire Life GIF (75/75, 75/100 and 100/100) and Empire Life Class Plus 3.0 and cannot be split between multiple accounts.
2 The Internal ERC Recovery Credit Program only applies to redemptions from an existing Empire Life contract to purchases into the No Load (NL) purchase fee option of an Empire Life GIF (75/75, 75/100 and 100/100) and Empire Life Class Plus 3.0 product. A redemption from and deposit to the same product (e.g., redemption from a Guaranteed Investment Fund contract into a Guaranteed Investment Fund contract) does not qualify for an ERC recovery credit.
Segregated Fund contracts are issued by The Empire Life Insurance Company (“Empire Life”). A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a segregated fund is invested at the risk of the contract owner and may increase or decrease in value. Please read the information folder, contract and fund facts before investing. Past performance is no guarantee of future performance. All returns are calculated after taking expenses, management and administration fees into account.
