ING Fixed Annuities has announced that it is revamping its guaranteed withdrawal benefit in the fall of 2008 by making several key enhancements, including a 7% compounding rollup during the first 10 years of the deferral phase and an annual ratchet during both the deferral and withdrawal phase.

This new version of the ING IncomeProtector Withdrawal Benefit, an optional rider on fixed index annuity contracts issued by ING USA Annuity and Life Insurance Company is available now.

With the new ING IncomeProtector Withdrawal Benefit, contract owners will still have the ability to turn income on or off at any time, said ING Fixed Annuities. In addition, the benefit has been enhanced to allow withdrawals within the first contract year. The ING IncomeProtector Withdrawal Benefit is available at a cost of 0.40% of the guaranteed withdrawal base. The maximum issue age for the benefit is 80.

Chad Tope, head of ING Fixed Annuities Distribution, said: ING is redefining the rollup. Our 7% compounding rollup, like others, protects you in decreasing and flat markets. However, our unique 7% compounding rollup also provides additional benefits in increasing markets.