Deferred annuities-minimum nonforfeiture.

Plain English Breakdown

Checked against official source text during the last sync.

Changing Interest Rates for Annuities

This law changes the minimum interest rate used to calculate how much money you can take out of certain annuities without losing too much.

What This Bill Does

• Changes the lowest interest rate that insurance companies must use when figuring out the smallest amount someone can withdraw from an individual deferred annuity without losing a significant portion of their investment.
• Reduces this minimum interest rate from one percent (1%) to fifteen one-hundredths of one percent (0.15%).
• Specifies these changes apply only to new annuities contracts made after July 1, 2022.

Who It Names or Affects

• Insurance companies that offer individual deferred annuity contracts.
• People who buy or plan to buy individual deferred annuities.

Terms To Know

Annuity

A financial product sold by insurance companies that provides regular payments to the buyer, often used for retirement income.

Minimum nonforfeiture amount

The smallest amount of money someone can withdraw from an annuity without losing a significant portion of their investment.

Limits and Unknowns

• This law only affects new contracts made after July 1, 2022.
• It does not change how existing annuities are handled.

Official Summary Text

Bill Summary - 22LSO-0165
Bill No.:

SF0075

Effective:

7/1/2022 12:00:00 AM

LSO No.:

22LSO-0165

Enrolled Act No.:

SEA No. 0017

Chapter No.:

38

Prime Sponsor:

Joint Corporations, Elections & Political Subdivisions Interim Committee

Catch Title:

Deferred annuities-minimum nonforfeiture.

Subject:

Deferred annuities.

Summary/Major Elements:

A minimum nonforfeiture rate is the lowest interest rate guarantee an insurer can use in an annuity contract to determine the annuity's cash value.

This act reduces the interest rate used to determine the minimum nonforfeiture amount for individual deferred annuities from one percent (1%) to fifteen one-hundredths of one percent (0.15%).
The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

22LSO-0165

ORIGINAL Senate

File No
.
SF0075

ENROLLED ACT NO. 17,

SENATE

SIXTY-SIXTH LEGISLATURE OF THE STATE OF WYOMING
2022 Budget Session

AN ACT relating to annuity contracts; amending the minimum interest rate used in determining minimum nonforfeiture amounts for certain annuities as specified; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 26
‑
16
‑
404(e)(ii) is amended to read:

26
‑
16
‑
404.

Minimum nonforfeiture amounts upon which certain minimum values are to be based.

(e)

The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as follows:

(ii)

Notwithstanding paragraph (i) of this subsection, the resulting interest rate shall not be less than
one percent (1%)
fifteen one
‑
hundredths of one percent (0.15%)
;

Section 2
.

This act shall only apply to annuity contracts entered into on or after the effective date of this act.

Section 3
.

This act is effective July 1, 2022
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1