C
OUNCIL
P
ROGRAM
Agent Eligibility1:
Full-time agents and College Intern agents of the Company are eligible for Council membership
Qualifying Period:
July 1, 2011 - June 30, 2012
Membership Period:July 1, 2012 - June 30, 2013
Council Levels & Requirements:Chairman’s Cabinet2 – Top 50 Council Credit Producers
Chairman’s Top 1002,3
–
Agents ranked number 51-100 in Chairman‟s Council; andCC Premier Centurions
Chairman’s Council – 236,000 credits
President’s Premier3 – Top 50 PC Council Credit producers;
Agents with at least 200,600 credits; and PC Premier Centurions President’s Council – 137,000 credits
Executive Premier3 – Top 50 EC Council Credit Producers in each Zone; Agents with at least 116,450 credits; and
EC Premier Centurions Executive Council – 60,000 credits
Quality Council – 41,000 credits; or
50 paid life cases with a minimum of 27,000 Council credits2
1Please note that any and all awards or other recognitions sponsored by New York Life Insurance Company and/or its subsidiaries including, but not limited to, Council membership or officership, are granted or made at the Company‟s sole discretion. This document sets forth some of the performance criteria for the Council programs; however, no person shall have any claim or right to Council membership, officership or other award or recognition. The Company reserves the right to deny Council membership and/or officership to an otherwise qualifying agent whose personal or business conduct, in the Company‟s sole judgment, may adversely affect the good standing and reputation of New York Life or its subsidiaries.
Step-in Rules
Agents who have not previously qualified for Chairman‟s or President‟s Council may do so in 2012 at the following levels:
1st Time CC – 212,500
1st Time PC – 123,500
The following step-in rules will apply for 2012 Executive Council qualification for agents contracted on or after January 1, 2008:
Agents with contracts dated January 1, 2011 and later with 41,000 or more Council Credits will be recognized as members of the 2012 Executive Council. Agents appointed under a TEA/PEA contract are eligible.
Agents with contracts dated January 1, 2010 through December 31, 2010 with 44,000 or more Council Credits will be recognized as members of the 2012 Executive Council. Agents appointed under a TEA/PEA contract are not eligible for this step-in option.
Agents with contracts dated January 1, 2009 through December 31, 2009 with 47,000 or more Council Credits will be recognized as members of the 2012 Executive Council. Agents appointed under a TEA/PEA contract are not eligible for this step-in option.
Agents with contracts dated January 1, 2008 through December 31, 2008 with 53,000 or more Council Credits will be recognized as members of the 2012 Executive Council. Agents appointed under a TEA/PEA contract are not eligible for this step-in option.
Council requirements for Managers (Managing Partners, Senior Partners, Partners and Sales Development Managers) who return to the field will be prorated based on the number of active agent months, excluding the month the Manager returns to the field. Council
requirements for direct appointment Partners who enter the field after having been a Partner for at least one year, will be prorated based on the number of active agent months, excluding the month the Partner enters the field. Agents active for less than 6 months as of June 30th must produce the 6-month target in order to qualify for any Council level.
Council credit requirements for agents who become inactive due to medical, military or maternity leave will be prorated to exclude the time on leave. When counting the number of active months for prorating the Council requirement, the month the agent goes on leave is excluded, but the month the agent returns from leave is included. Agents active for less than 6 months as of June 30th must produce the 6-month target in order to qualify for any Council level.
Council Life Membership
Agents who qualify for 20 consecutive Council memberships or 25 non-consecutive Council memberships are considered Council Life Members. Former Council Presidents can qualify for Life Membership with 15 consecutive or 20 non-consecutive Council memberships. Life Members production requirements for Council membership are 20% lower than those set forth for all agents. Agents who have qualified for a higher discount under previous rules may retain those discount privileges.
Council Credits are classified into three categories for credit calculation: Core (unlimited credit); Non-Core (one-for-one credit); and SMA (up to 20% of Core and non-Core credits combined, not to exceed 25,000).
Core Council Credits
FYC on all eligible New York Life proprietary Life, Investment Annuity, Guaranteed Lifetime Income and Long-Term Care products credited between July 1, 2011 and June 30, 2012 will be included in the Council Credit calculation. Credits from Bonus programs such as the Case Rate Bonus and MDRT Bonus are included in the Core Credits, but will not count for Cabinet or Council Officership.
BOLI 20, COLI, PPVUL and BOLI 30 will count for Council Credits, including Cabinet and Council Officership. BOLI 2 (Large Cases) will count for Council Credits, but will not count for Cabinet or Council Officership.
Enhanced council credit amounts from “Choice Compensation” options are included in the Council Credit calculation.
Non-Core Council Credits (One-for-One Standard)
Agents will receive credit on proprietary and non-proprietary Mutual Funds, proprietary and non-proprietary Group Annuities (401k and group retirement plans), new contributions into Eagle Strategies Advisory Programs, Auxiliary Recruiting and Development Credits (ARD), and recruiting credits paid to Management Associates if they have an equivalent number of proprietary Life, Investment Annuity, Guaranteed Lifetime Income and Long-Term Care Council Credits.
For example:
FYC Council Credits Core (Proprietary Life/Inv Ann/GLI/LTC) $62,000 62,000
Non-Core (Mutual Funds) $100,000 62,000
Total $162,000 124,000
In this example, only $62,000 of the agent‟s non core sales would count for Council Credits, because that is the total number of credits he or she had from eligible Life, Investment Annuity, Guaranteed Lifetime Income and Long-Term Care sales. With a total of 124,000 Council Credits, the agent would qualify for Executive Council.
Sponsored Marketing Agreements (excludes non-proprietary Mutual Funds)
Case Rate Council Bonus
An agent can qualify for 2012 Case Rate Council Credits under one of the following options:
Life:
Agents who pay for 40 Life cases will receive 2,500 Council Credits. An additional 2,500 Council Credits will be awarded when an agent pays for an additional 10 Life cases for a total of 50 Life cases. An additional 1,000 Council Credits will be awarded for each additional five paid Life cases. There is no maximum amount of Council Credits for an agent under this option.
In addition, agents who pay for 50 Life cases will receive an additional 5,000 Council Credits if they have a Whole Life first year lapse rate of 10% or less as of the 2011 calendar year end, which is based on policies issued during the 2010 calendar year. To qualify for these 5,000 Council Credits the agent must also have a minimum of 10 Whole Life Policies issued during the 2010 calendar year.
All Products:
Agents who pay for 100 or more cases, of which at least 50 are proprietary Life, Investment Annuity, Guaranteed Lifetime Income and/or Long-Term Care cases, will receive 5,000 Council Credits. An additional 1,000 Council Credits will be awarded for each additional five paid cases, up to a maximum of 15,000 Council Credits.
In order to qualify for 2012 Case Rate Council Bonus Credits an agent‟s Whole Life first year lapse rate must be less than 25% as of the 2011 calendar year end. Agents with fewer than 10 paid life cases in their lapse rate calculation, however, will be exempt from having to meet the lapse rate requirement.
Million Dollar Round Table
Agents who qualify and register for MDRT will receive a 1,000 Council Credit bonus.
Life, Investment Annuity, Guaranteed Lifetime Income and Long-Term Care
Case count is based on net paid cases.
Each proprietary Life, Investment Annuity, Guaranteed Lifetime Income or Long-Term Care sale counts as one case (COLI and BOLI cases are excluded).
VPD (EWL) cases count 3:1. (Three paid policies equal one paid case.)
Family protection plan policies count 1:2. (One paid family protection plan equals two paid life cases.)
Each non-proprietary Variable Life and Variable Annuity sale counts as one case.
4
Term Conversions
A Term policy fully converted within 12 months of the policy issue date will not receive an additional case count because the original Term policy received the case count. However, a Term policy converted after 12 months of the policy issue date will receive a case count for the new case. Term riders on Original Age Term conversions will not receive case count credit. Term riders on Attained Age Term conversions will receive case count credit for the new case.
Mutual Funds
Only agents who are Registered Representatives of NYLIFE Securities are eligible for Council Credits on Mutual Fund cases.
Mutual Funds case counts are derived as follows;
For Mutual Funds, counts are based on the number of account holders and not the number of fund transactions. Each account holder (unique tax identification or Social Security number) equals one case. Subsequent Mutual Fund sales to existing Mutual Fund account holders will not count as new cases if the transaction occurs within a 12-month period.
All proprietary and non-proprietary Mutual Funds count equally. However, money market funds do not count.
Refunds of First-Year Commissions
Refunded commissions will be charged against the commissions counting for Council membership in the year in which the refund is made.
Exceptions: Commission refunds due to the exercise of the Free Look Period or the reversal
of commissions paid in advance, where the policy or contract is not taken, will be charged against the Council year in which the commissions were originally allowed. If the agent would not have qualified for Council without those commissions, Council status will be reduced or revoked, and all Council benefits, including expense allowances, will be adjusted accordingly.
Personally Secured Business
Only commissions on personally secured business will count for Council. All business must be submitted and settled under the conditions stipulated in the agent‟s contract or in Company policies or procedures. The Company reserves the right, in the event of any violation of these conditions, to exclude all or part of an agent‟s FYC from the Council Credit calculation.
Recruiting Credits
ARD credits paid during the Council year to the original nominating agent, for up to the recruited agent‟s first 12 months, will count for Council Credits, including Council Officership and
Mutual Funds & Group Annuities
Council Credits on all share classes of mutual funds will be calculated based upon the products‟ gross dealer concession (GDC) and your payout rate (see payout grid on page 10), subject to the one-for-one standard. The GDC is typically determined based on the share class of the mutual fund, and if applicable, any breakpoints. Council Credits are only applied on FYC credited on new investments, not on trails paid on assets under management. Group Annuity products will be subject to all current Council rules governing non-proprietary mutual funds.
Eagle Strategies
Eagle Strategies Financial Advisers will receive Council Credits for fees credited on new contributions into Eagle Advisory accounts. “New contributions” refer to any initial or additional deposit into an account for which an IAR has not already received compensation. The Council Credits will be based on the annualized fee amount on the new contribution, which is capped at 1% for council credit purposes, and applied at your payout rate (see payout grid on page 10). Eagle Advisory products will be subject to all current Council rules governing non-proprietary mutual funds. In addition, Eagle Strategies Financial Advisers will receive .5 Council Credits for each dollar of Financial Planning fee (FP Fee) credits. For example, a fee of $1,000 will result in 500 Council Credits.
Due to the quarterly payment process for Eagle Legacy Advisory Programs there is a lag in timing for Council Credit purposes. Legacy accounts managed with an advisory fee, and opened between 4/1/11 and 3/31/12, will count for Council Credits for the current Council year ending 6/30/12. Accounts opened, or new contributions received between 4/1/12 and 6/30/12 will count for the next council year. Council Credits for Eagle Lifetime Wealth Portfolios (LWP) Advisory Programs will be applied monthly. LWP accounts funded between 6/25/11 and 5/31/12 will count for Council Credits for the current Council year ending 6/30/12.
Sponsored Marketing Agreements
FYC credited from Crump Life Insurance Services (formerly BISYS), Golden Rule, Unum, John Alden, Humana, Starmark and other group agreements (see the Sponsored Marketing Product Guide on Agency Portal for a complete list), and certain other non-proprietary products count for Council Credits up to a maximum of 20% of the eligible Core and non-Core credits combined, not to exceed $25,000.
For example:
FYC Council Credits Core (Proprietary Life/Inv Ann/GLI/LTC) $80,000 80,000
SMAs (excluding non-prop Mutual Funds) $20,000 16,000
Total $100,000 96,000
7
Council President
The Council President will be the Council member (excluding former Council Presidents) with the highest amount of Council Credits.
Council Vice President
The Council Vice President will be the Council member (excluding former Council Presidents) with the second-highest amount of Council Credits.
Advisory Board of Directors
The Advisory Board of Directors will include the current Council President and all former Council Presidents who qualify for the 2012 Chairman‟s Council.
Chairman of the Advisory Board of Directors
The Chairman of the Advisory Board of Directors will be the member of the Board (excluding the current Council President) with the highest amount of Council Credits.
Zone Council Officers
First Vice President: After selecting the Council President and Council Vice President, the Council member in each Zone (excluding former Council Presidents) with the highest amount of Council Credits will be the First Vice President.
Second Vice President: After selecting the Council President and Council Vice President, the Council member in each Zone (excluding former Council Presidents) with the second highest amount of Council Credits will be the Second Vice President.
Officership Requirements
Council Officership is subject to the following conditions:
An agent must have a minimum of 36 months as an active full time agent prior to the end of the current Council year to qualify as a National or Zone Council Officer. When counting the number of eligible months for Council Officership, the month the agent begins a break in service (e.g. time in management) is excluded, but the month the agent returns is included.
Commissions on policies on the life of the Agent or any other Agent, or on the life of any of their family members (i.e. those related by blood, marriage, or law, and includes parents, brothers, sisters, spouse or children), will not count for the purposes of an agent qualifying for any National or Zone Council Officership.
Commissions on policies owned or controlled by an Agent will not count for the purposes of an agent qualifying for any National or Zone Council Officership. Satisfactory compliance review.
Approval by Company Senior Management.
Eligibility to Attend
All Chairman‟s, President‟s and Executive Council qualifiers are eligible to attend the Council Meeting of their Council level. By request, an agent may attend a Council Meeting of a lower Council level, rather than the one for which he or she qualified. However, Council qualifiers will likely derive the greatest educational value by attending the meeting for which they qualify. Therefore, requests to attend an alternate meeting are subject to review by Agency Department Senior Management.
Agents who enter management during the 2012 Council year must meet full Council Credit requirements to attend a Council Meeting. (Step-in rules are in effect where applicable; see pages 2 and 3.) Management Associates also must meet the full requirements in accordance with their Management Associate Agreement.
Certificates of Membership
All members of the 2012 Councils will receive a Certificate of Membership.
Expense Allowance Council Incentive
Agents who qualify for Council receive the following Expense Allowance incentive:
Chairman’s Council - 8% President’s Council - 6% Executive Council - 4% Quality Council - 2%
For the first two quarters of the calendar year, the Expense Allowance Council Incentive is based on the agent‟s current Council status or his or her pro-rata Council status as of the prior quarter end, whichever is higher. In calendar quarters three and four, the Expense Allowance Council Incentive is based on the agent‟s current Council status.
NYLIFE Securities Registered Products Gross Dealer Concession (GDC) Payout Grid
Agents who qualify for Council are eligible for an enhanced payout rate based on gross dealer concession (GDC), as shown below. Please refer to the information published in Field News dated 6/09/08 titled NYLIFE Securities Adjusts Commission Structure Effective July 01, 2008 for the latest details on the application of this payout structure.
GDC Payout Rate for Council Credits NYLIFE Securities
Registered Products Gross Dealer Concession
None QC EC PC CC $0.00 - $22,499 35% 40% 50% 55% 60% $22,500 - $44,999 40% 45% 55% 60% 65% $45,000 - $59,999 45% 50% 60% 65% 70% $60,000 - $84,999 50% 55% 70% 75% 80% $85,000 - $129,999 55% 60% 75% 80% 85% > $130,000 60% 65% 80% 85% 90%
Eagle Strategies Financial Planning (FP) Fees Payout Grid
The FP grid allows Financial Advisers to achieve a higher payout on FP fees independent from their NYLIFE Securities and Eagle Strategies GDC production. In addition, CC agents with over $100,000 in FP Fee credits will be eligible for a 5% payout increase on any marginal dollar credited exceeding $100,000. The payout thresholds below apply to all advisers, including Senior NYLICs.
FP Fee Payout Rates
Eagle FP Fees None QC EC PC CC
$0.00 - $30,000 75% 75% 75% 80% 85% $30,001 - $100,000 75% 75% 80% 85% 90% > $100,000 75% 80% 85% 90% 90%
Tracking
C
ENTURION
P
ROGRAM
Centurion Qualifications
Agents will achieve Centurion status if they have a minimum of 100 paid Life cases for the period 7/1/11 to 6/30/12. There are two levels of Centurion:
The following step-in requirements will apply for 2012 Centurion qualification for agents contracted on or after January 1, 2008:
In order to qualify for Centurion or Premier Centurion an agent‟s Whole Life first year lapse rate must be less than 25% as of the 2011 calendar year end, which is based on policies issued during the 2010 calendar year. Agents with fewer than 10 paid life cases in their lapse rate calculation, however, will be exempt from having to meet the lapse rate requirement.
Centurion is based on net paid cases.
Each proprietary Life sale counts as one case (COLI and BOLI cases are excluded). VPD (EWL) cases count 3:1. (Three paid policies equal one paid case.)
Family protection plan policies count 1:2. (One paid family protection plan equals two paid life cases.)
Each non-proprietary Variable Life sale counts as one case.
Term Conversions
A Term policy fully converted within 12 months of the policy issue date will not receive an additional case count because the original Term policy received the case count. However, a Term policy converted after 12 months of the policy issue date will receive a case count for the new case.
Tracking
Centurion count is reported through the Agent Dashboard.
Requirements
Premier Centurion 150 paid Life cases Centurion 100 paid Life cases
Requirements
P
RODUCTION
C
REDIT
P
ROGRAM
Qualifications & Benefits
Production credits are determined by the rules used to calculate Council Credits with one major exception: Non-proprietary Variable Life and Variable Annuity are combined with proprietary Variable Life and Variable Annuity in the calculations. As such when
calculating Production Credits, the non-proprietary variable products are excluded from the SMA category and included in the Core category. As with the Council Credit program, Production Credits are classified into three categories for credit calculation: Core (unlimited credit); Non-Core (one-for-one credit); and SMA (up to 20% of Core and non-Core credits combined, not to exceed 25,000).
For example:
FYC Council Credits
Production Credits Core (Proprietary Life/Inv Ann/GLI/LTC) $65,000 65,000 65,000
SMA Fixed $25,000 13,000 23,000
SMA Variable (Core for production credits) $50,000 --- 50,000
Total $140,000 78,000 138,000
In this example, the agent receives 13,000 Council Credits and 23,000 Production Credits from his or her SMA Fixed production, because they represent 20% of the agent‟s Core credits (65,000 in Core Council Credits and 115,000 in Core Production Credits, respectively). He or she also receives 50,000 in Production Credits for SMA Variable production. With a total of 78,000 Council Credits, the agent would qualify for membership in Executive Council. However, with 138,000 Production Credits, he or she would receive all the benefits of President‟s Council.
Agents who qualify for Council based on Production Credits will receive all the benefits of the Council level for which they qualify (attendance at the meeting, travel expenses, Expense Allowance Council Incentive and enhanced Mutual Fund payout). However, Production Credits do not count toward official Council membership and recognition.
One-for-One Standard
Agents will receive credit on Mutual Funds, Group Annuities, Eagle Strategies new
For example:
FYC Council Credits
Production Credits Core (Proprietary Life/Inv Ann/GLI/LTC) $60,000 60,000 60,000
Non-Core (Prop &Non-Prop Mutual Funds) $120,000 60,000 120,000
SMA Variable (Core for production credits)) $60,000 24,000 60,000
Total $240,000 144,000 240,000
In this example, the agent receives 24,000 Council Credits from his or her SMA Variable production, because this is 20% of the agent‟s combined Core and non-Core credits (120,000). However, the full $60,000 in SMA Variable production would count toward Production Credits. Also, the full $120,000 in non-proprietary Mutual Fund FYC would count toward Production Credits because his or her proprietary Life, Investment Annuity, Guaranteed Lifetime Income and Long-Term Care FYC ($60,000) and SMA variable FYC ($60,000) total $120,000. With a total of 144,000 Council Credits, the agent would qualify for membership in President‟s Council. However, with 240,000 Production Credits, he or she would receive all the benefits of Chairman‟s Council.
In the following example, the agent has Production Credits from both Fixed and Variable SMA production:
FYC Council Credits
Production Credits Core (Proprietary Life/Inv Ann/GLI/LTC) $150,000 150,000 150,000
SMA Fixed $15,000 15,000 15,000
SMA Variable (Core for production credits) $80,000 10,000 80,000
Total $245,000 175,000 245,000
A
WARDS
&
R
ECOGNITION AT
C
OUNCIL
Council qualification is the culmination of a successful year and provides the opportunity to attend one of the most professionally rewarding and personally satisfying events: A
Council Meeting. At this annual event the Company honors the agents who have
excelled in their performance and achieved distinction in their New York Life careers by presenting them with the following awards:
5,6
Chairman’s Council New Organization Leader
Presented to the top-producing New Organization member of the Chairman‟s Council with the highest amount of Council Credits during the Council year. The Agent must have been appointed under a TAS contract on January 1, 2009 or later to be eligible.
Council Credit Leader
Presented to the top-producing member of the President‟s Council and Executive Council with the highest amount of Council Credits during the Council year. There will be one Executive Council Credit Leader for each Zone.
Life Production Leader
Presented to the top-producing agent of each Council with the highest amount of council credits for proprietary Life products during the Council year. There will be one Executive Council Life production leader for each Zone.
Guaranteed Lifetime Income Insurance Production Leader (GLI)
Presented to the top-producing agent of each Council with the highest amount of council credits for proprietary GLI insurance products during the Council year. There will be one Executive Council GLI production leader for each Zone.
Investment Annuity Production Leader
Presented to the top-producing agent of each Council with the highest amount of council credits for proprietary annuity investment products during the Council year. There will be one Executive Council Investment Annuity production leader for each Zone.
Long-Term Care Production Leader (LTC)
Presented to the top-producing agent of each Council with the highest amount of council credits for proprietary LTC products during the Council year. There will be one Executive Council LTC production leader for each Zone.
5
Please note that Council Awards and Recognitions are granted or made at the Company‟s sole discretion. This document sets forth some of the performance criteria; however, no person shall have any claim or right to a Council Award or Recognition. The Company reserves the right to deny a Council Award or Recognition to an otherwise qualifying agent whose personal or business conduct, in the Company‟s sole judgment, may adversely affect the good standing and reputation of New York Life or its subsidiaries.
Mutual Funds Production Leader
Presented to the top-producing agent of each Council with the highest amount of council credits for proprietary mutual funds products during the Council year. There will be one Executive Council Mutual Funds production leader for each Zone.
.
Leading Life Case Producer
Presented to the top-producing agent of each Council for each Zone who had the highest number of Life Paid Cases during the Council year.
Ben Feldman Life Award of Excellence
Presented to the top-producing agent of each Council with the highest amount of new Life premium paid during the Council year. There will be one Executive Council Ben Feldman Award winner for each Zone. Single premiums are discounted on a 10:1 basis.
AAC Triple Crown Award
Presented to the six leading agents in the Company (three Established and three New Org, determined as of June 30th) who have paid for a minimum number of Life, Guaranteed Lifetime Income (GLI) and Long-Term Care cases within the qualifying Council year. Refer to page 5 for Case Count Calculation. Following are the minimum cases required to qualify:
Cases Established Agents New Org Agents
Life Insurance 50 35
GLI 5 3
Long-Term Care Insurance 5 3
Chairman’s Cabinet Hall of Fame Plaque
Presented to agents who have qualified for membership in the Chairman‟s Cabinet for 10 years.
30 Year Chairman’s Council Diamond Pin
Presented to agents who have qualified for membership in the Chairman‟s Council for 30 years.
50th Council Qualification
Presented to agents who have qualified for membership in any Council for 50 years.
Council Life Member Ring
Presented to agents who have qualified for Council Life Membership (see page 3 for requirements).
New Members of the Council Bracelet / Tie Tack
