The Helios2 – 75/100 i and Helios2 – 100/100 i guarantees of the Helios2 contract, the Helios 75/100 i guarantee as well as the Millennia III – New Era contract provide for the annual reset1 of the guaranteed minimum death benefit according to the greater of the following values:
- inflation-adjusted value
- the market value of the contract
- the current guaranteed minimum benefit amount.
For the inflation-adjusted value, the contract provides that the inflation rate that will be used for a given year is the annual percentage change in the Consumer Price Index (CPI) established by Statistics Canada for the one-year period ending November 30 of the previous year, subject to a minimum of 0% and a maximum of 5% (for example, rate as of November 30, 2024 for adjustments made in 2025).
Accordingly, the inflation rate used for the calculation of the adjusted value for inflation for all annual adjustments that will take place in 2025 will be 1.9%.
Annual resets are made up to the annuitant's 75th birthday, at the contract anniversary date. At the time of the annual reset, the guaranteed minimum death benefit is equal to the greater of:
- inflation-adjusted value
- the market value of the contract
- the current guaranteed minimum benefit amount.
