More information about the Vanguard Variable Annuity changes
On June 19, 2019, Vanguard announced plans to transition client service and account administration for the Vanguard Variable Annuity to Transamerica. The transition will occur on Monday, November 16. Transamerica, the issuer of the annuity, will continue to guarantee your contract.1
You don't need to take any action at this time. After the transition, Transamerica will handle all annuity servicing, communications, and account access currently provided by Vanguard. And your annuity will remain invested in the same underlying Vanguard funds, which we'll continue to manage. Vanguard will also provide support for your annuity until the transition is complete.
Why we're making this change
Annuity administration isn't central to Vanguard's long-term product and service plans. We're deepening our focus on our core priorities: delivering industry-leading funds and ETFs, enhancing the client experience, and expanding our advice capabilities.
How this change affects Vanguard Variable Annuity owners
Do I need to take any action?
You don't need to take any action at this time. Vanguard will continue to provide support for your annuity until the close of business on November 13. Prior to the transition, Transamerica will provide you with additional information, including an overview of their services, contact information, and web registration details.
How will this change affect my existing Vanguard Variable Annuity?
You won't experience any changes while Vanguard serves as the administrator. After we've transitioned our administration responsibilities to Transamerica, they'll handle all client service, communications, statements, confirmations, and account access for your annuity.
All existing third-party access, recurring withdrawals, purchases, and periodic portfolio rebalancing you've previously established for your annuity through us will stay the same after the transition to Transamerica.
Will the terms of my Vanguard Variable Annuity change?
As the owner of a Vanguard Variable Annuity, you have a contract with Transamerica, which won't change because of this transition. All rights and provisions of your contract will remain in place.
Will my investment options change?
Vanguard will continue to offer the Vanguard Variable Insurance Funds, and Transamerica has committed to continuing to offer these underlying investments in the Vanguard Variable Annuity.
How do I access my account and perform transactions or maintenance?
You can continue to access your account through vanguard.com or by calling Vanguard at 800-662-2739 through the close of business on Friday, November 13. As of Monday, November 16, you'll begin accessing your account through Transamerica with the details provided in the Transamerica welcome letter.
Who will send confirmations, statements, and tax forms?
You'll continue to receive transaction confirmations from Vanguard for activity occurring in your annuity up to the close of business on November 13. After this date, Transamerica will assume this responsibility. Transamerica will generate and send all future transaction confirmations and account statements, including your 2020 year-end report.
Transamerica will continue to send all Vanguard Variable Annuity tax forms.
Will this change affect my fees?
There are 3 components that compose Vanguard Variable Annuity fees: investment portfolio expense ratios, a mortality & expense (M&E) fee (insurance costs), and an administrative fee.
We'll continue to manage the Vanguard Variable Insurance Funds in accordance with our time-tested investing philosophy, where low costs, a long-term orientation, and focus on goals are core.
Transamerica has also historically endeavored to maintain consistent fees and isn't planning to make any changes to the current M&E or administrative fees. Companies evaluate their fee structures regularly and would only adjust fees after obtaining the proper regulatory approvals.
How do I contact Transamerica?
Prior to the transition, you'll receive additional details from Transamerica, including an overview of their services, contact information, website registration details, and hours of operation.
Transamerica's contact center will be available to you starting Monday, November 16, 2020.