What is a surrender or withdrawal charge?
Surrender or withdrawal charges are charges that are deducted if a product is cashed in (surrendered). TRS rules require that surrender or withdrawal charges may not exceed 10% and must decline annually, terminating within 10 years of contract inception. However, the rules allow that, with disclosure to the employee, surrender or withdrawal charges may extend to a maximum period of twelve years and that there is a maximum 1% charge in years eleven and twelve.
