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Principal® Launches New Retirement Plan Investment Option Focused on Guaranteed Rates of Return


Includes new advisor resources to support participant savings growth
during volatile market cycles

Financial Group
® launched the Principal Guaranteed Option
(PGO), a new addition to its suite of fixed
investment options focused on capital preservation and
return. The Principal Guaranteed Option boasts a
compelling crediting rate at 3.05%* while providing more choice and
flexibility to advisors and plan sponsors as they determine a fixed
income strategy for their retirement plan. Regardless of a person's life
stage, fixed
income investment options
, such as the new Principal Guaranteed
Option, can strengthen 401(k) portfolio diversity, preserve principal
and support performance through differing market cycles.

"Whether navigating volatile markets or needing more predictability and
stability in a portion of a participant's long-term savings, the new
Principal Guaranteed Option extends our fixed
offering to address these needs," said Jerry Patterson,
senior vice president of Retirement and Income Solutions at Principal.
"It is one more option that enables plan participants to design an
investment portfolio focused on outcomes that are important to them."

Competitive Advantage
The Principal Guaranteed Option offers
a compelling guaranteed interest rate, while providing flexibility and
portability. Unlike other fixed income options, advisors and plan
sponsors don't have to sacrifice choice or flexibility to get a
guarantee with the Principal Guaranteed Option.

  • Capital preservation: seeks to preserve capital and provide a
    compelling guaranteed credit rate over a full interest rate cycle
  • Portability: customers can maintain interest in PGO even if the
    plan moves to a new recordkeeper
  • Accessible: available for 401(k), 401(a)-DC, 403(b) and
    governmental 457(b) plans
  • Guaranteed rates: crediting rates reset every 6 months
  • Solid backing: the guarantees are supported by the
    multi-billion dollar general account of Principal Life Insurance
  • Rate level flexibility: 14 rate levels available

Providing Choice and Flexibility for Advisors
"Advisors and
plan sponsors want choice and flexibility as they look to select a fixed
income investment option that meets the diverse savings needs and
objectives of retirement plan participants," added Patterson. "We've
delivered that with PGO and will continue to look for more ways to help
people reach their financial goals and feel more confident about their

Principal has also developed a new online resource hub for advisors to
support their conversations with plan sponsors about fixed income
investment options, as they evaluate which best meets their retirement
plan objectives. Additional features include videos, fact sheets,
articles and client-ready materials about fixed income, capital
preservation and return-focused products. Advisors are encouraged to
to learn more.

Principal helps people and
companies around the world build, protect and advance their financial
well-being through retirement, insurance and asset management solutions
that fit their lives. Our employees are passionate about helping clients
of all income and portfolio sizes achieve their goals – offering
innovative ideas, investment expertise and real-life solutions to make
financial progress possible. To find out more, visit us at

Principal, Principal and symbol design and Principal Financial Group are
trademarks and service marks of Principal Financial Services, Inc., a
member of the Principal Financial Group.

*For March 1, 2019-May 31, 2019. The composite crediting rate is prior
to any plan fiduciary elected rate level service fee for plan
administrative and recordkeeping services.

Asset allocation and diversification do not ensure a profit or
protect against a loss.

Guarantees are based upon the claims-paying ability of the Principal
Life Insurance Company.

Principal Guaranteed Option is not FDIC insured and is not an obligation
or deposit for any bank nor guaranteed by a bank. The guarantees
provided with regard to the Principal Guaranteed Option are supported by
the general account of Principal Life.

Principal Guaranteed Option is the Custodial Guaranteed Option Group
Annuity Contract available through Principal Life Insurance Company, a
member of the Principal Financial Group®, Des Moines, Iowa

Insurance products and plan administrative services provided through
Principal Life Insurance Co., a member of the Principal Financial Group®,
Des Moines, IA 50392. Certain investment options and contract riders may
not be available in all states or U.S. commonwealths.

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