Systematic Withdrawal

Systematic Withdrawal is a method of withdrawing funds from the annuity in specified amounts for a specified payment frequency. The annuitant is not guaranteed life-long payments as he is with the standard annuitization method. With the systematic withdrawal schedule, the annuitant chooses instead to withdraw funds from his account until it is emptied, bearing the risk that the funds become depleted before he dies.

Allocations are set-up from the Allocations link in the Left Navigation menu. Scroll to the Systematic Withdrawal Program section to select allocation options.

When a policy is issued that has a Deferred Annuity segment with the Systematic Withdrawal option set to Yes, then the Systematic Withdrawal Start activity will automatically display on the Activities screen.

Note: The start date for systematic withdrawals must be at least 30 days after the issue date.

Note: The Deferred Annuity segment must have the Systematic Withdrawal radio button set to Yes to use systematic withdrawal for the policy.

Processing the Systematic Withdrawal Start activity will spawn a Systematic Withdrawal activity according to the frequency set in the Deferred Annuity segment. If allocations need to be redefined, click the Activity Details icon next to the Systematic Withdrawal Start activity and then open the Allocation link. After the funds have been adjusted, save the information and process the Systematic Withdrawal activity.

Note: If an error message appears asking for the Deferred Annuity segment Systematic Withdrawal information to be updated, then delete all activities on the policy, go to the Segment screen and delete the Deferred Annuity. Then add the Deferred Annuity and process the activities over again.