Principal Life Income Fundings Trust 2005-81
Not applicable.
None.    PART IV
Exhibit 31.1   Section 302 Certification.            Exhibit 99.1   Indenture Trustee Report of the Trust – Principal Life Income Fundings Trust 2005-81 made no payment of interest or principal on its 5.40% Principal® Life CoreNotes® due 2020 during the fiscal year ended December 31, 2005. As such, no Indenture Trustee Reports were prepared or are included in this Annual Report on Form 10K.            Exhibit 99.2   Annual Statement of Compliance by Citibank, N.A.            Exhibit 99.3   Report of Independent Registered Public Accounting Firm on Compliance.    The Trust’s assets consist of a Funding Agreement issued by Principal Life Insurance Company (“Principal Life”) and a Guarantee issued by Principal Financial Group, Inc. (“PFG”) which fully and unconditionally guarantees the payment obligations of Principal Life under the Funding Agreement. PFG is subject to the informational requirements of the Securities Act of 1934, and in accordance with those requirements files periodic and current reports and other information (including financial information) with the Securities and Exchange Commission (“SEC”). You can read and copy any reports or other information PFG files at the SEC public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. You can also request copies of PFG’s documents upon payment of a duplicating fee, by writing the SEC’s public reference room. You can obtain information regarding the public reference room by calling the SEC at 1-800-SEC-0330. PFG’s filings are available to the public from commercial document retrieval services or over the internet at http://www/sec/gov.  3    Table of Contents    SIGNATURES  Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.                                     PRINCIPAL LIFE INSURANCE COMPANY                (Registrant)       Date: March 24, 2006        By:     /s/ karen a. pearston                                  Name: Karen A. Pearston                Title:   Second Vice President and Counsel     4    Table of Contents    EXHIBIT INDEX              Exhibit       Number   Description     Exhibit 31.1    Section 302 Certification.        Exhibit 99.1     Indenture Trustee Report of the Trust – Principal Life Income Fundings Trust 2005-81 made no payment of interest or principal on its 5.40% Principal® Life CoreNotes® due 2020 during the fiscal year ended December 31, 2005. As such, no Indenture Trustee Reports were prepared or are included in this Annual Report on Form 10K.       Exhibit 99.2    Annual Statement of Compliance by Citibank, N.A.       Exhibit 99.3    Report of Independent Registered Public Accounting Firm on Compliance.     5       EX-31.1 2 c01416bexv31w1.htm SECTION 302 CERTIFICATION    exv31w1       Exhibit 31.1—Section 302 Certification  I, Ellen Z. Lamale, certify that:  I have reviewed this annual report on Form 10-K, and all reports on Form 8-K containing distribution or servicing reports filed in respect of period included in the year covered by this annual report, of Principal Life Income Fundings Trust 2005-81;     1.   Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading as of the last day of the period covered by this annual report;       2.   Based on my knowledge, the distribution or servicing information required to be provided to the depositor by the trustee under the pooling and servicing, or similar agreement, for inclusion in these reports is included in these reports;       3.   I am responsible for reviewing the activities performed by the depositor and the trustee under the pooling and servicing, or similar agreement, and based upon my knowledge and the annual compliance review required under that agreement, and except as disclosed in the reports, the depositor and trustee have each fulfilled its obligations under that agreement; and       4.   The reports disclose all significant deficiencies relating to the compliance by the trustee and the depositor with the minimum servicing or similar standards based upon the report provided by an independent public accountant, after conducting a review in compliance with the Uniform Single Attestation Program for Mortgage Bankers or similar procedures, as set forth in the pooling and servicing, or similar agreements, that is included in these reports.    In giving the certifications above, I have reasonably relied on information provided to me by the following unaffiliated parties: Ernst and Young and Citibank, N.A.  Date: March 24, 2006  By:      /s/ Ellen Z. Lamale Name: Ellen Z. Lamale Title:   Senior Vice President and Chief Actuary          EX-99.2 3 c01416bexv99w2.htm ANNUAL STATEMENT OF COMPLIANCE    exv99w2       Exhibit 99.2  ANNUAL STATEMENT OF COMPLIANCE Principal Life Income Fundings Trust 2005-81 (the “Trust”)       I, Nancy H. Forte, a duly elected and acting officer of Citibank, N.A. (“Indenture Trustee”), do hereby certify on behalf of the Indenture Trustee, that:       1. I have reviewed and examined the performance by the Indenture Trustee of the application of trust money collected by the Indenture Trustee pursuant to Section 5.02 and, if applicable, Section 6.06 of the Indenture pursuant to which the Trust’s notes were issued during the fiscal year ending December 31, 2005 (the “Relevant Year”); and       2. Based upon my review and examination described in 1 above, and except as provided in the Report of Independent Registered Public Accounting Firm on Compliance, dated March 13, 2006, prepared by the Ernst & Young LLP substantially in accordance with Section 4.05 of the Expense and Indemnity Agreement, to the best of my knowledge, the application of trust money collected by the Indenture Trustee pursuant to Section 5.02 and, if applicable, Section 6.06 of the Indenture was performed in accordance with the terms of the Indenture throughout the Relevant Year.  CITIBANK, N.A., as Indenture Trustee                    By:    /s/ Nancy H. Forte            Name: Nancy H. Forte             Title: Assistant Vice President                   Date:    March 24, 2006                 EX-99.3 4 c01416bexv99w3.htm REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM    exv99w3       Exhibit 99.3  Report of Independent Registered Public Accounting Firm on Compliance  The Board of Directors Principal Financial Group, Inc. Principal Life Insurance Company  We have examined management’s assertion, included in the accompanying report titled Report of Management on Compliance, that Principal Financial Group, Inc. and Principal Life Insurance Company (collectively, the “Company”) complied with the specified standards identified in Exhibit A to the Report of Management on Compliance (the “specified standards”) with respect to the secured notes issued by Principal Life Income Fundings Trust 2005-81 during the year ended December 31, 2005. Management is responsible for the Company’s compliance with those specified standards. Our responsibility is to express an opinion on management’s assertion about the Company’s compliance based on our examination.  Our examination was conducted in accordance with attestation standards established by the Public Company Accounting Oversight Board (United States) and, accordingly, included examining, on a test basis, evidence about the Company’s compliance with the specified standards and performing such other procedures as we considered necessary in the circumstances. We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Company’s compliance with the specified standards.  In our opinion, management’s assertion that Principal Financial Group, Inc. and Principal Life Insurance Company complied with the aforementioned specified standards during the year ended December 31, 2005, is fairly stated, in all material respects.     /s/ Ernst & Young LLP  Des Moines, Iowa March 13, 2006          Report of Management on Compliance  I, as a member of management of Principal Financial Group, Inc. and Principal Life Insurance Company (collectively, the “Company”), am responsible for complying with the standards identified in the attached Exhibit A (the “specified standards”) with respect to the secured notes issued by Principal Life Income Fundings Trust 2005-81. I am also responsible for establishing and maintaining effective internal control over compliance with these specified standards. I have performed an evaluation of the Company’s compliance with the specified standards as of December 31, 2005 and for the year then ended. Based on this evaluation, I assert that during the year ended December 31, 2005, the Company complied, in all material respects, with the specified standards.  /s/ Ellen Z. Lamale Ellen Z. Lamale Senior Vice President and Chief Actuary  March 13, 2006          Exhibit A Specified Standards  I. Funding Agreement Payments  Funding agreement payments have been:     1.   calculated according to the terms of the Funding Agreement; and       2.   promptly paid, within two business days of the due date, to the Indenture Trustee at the direction of the appropriate Principal Life Income Fundings Trust.    II. Guarantee Payments in Support of the Payment of Amounts Due on the Funding Agreement  Support of the payment of amounts due on the Funding Agreement, if any, have been:     1.   calculated according to the terms of the Funding Agreement; and       2.   promptly paid, within two business days of the due date, to the Indenture Trustee at the direction of the appropriate Principal Life Income Fundings Trust.    III. Payments Under Indenture  Confirmed that the Indenture Trustee has used the amounts described in I.1. and II.1., if any, to pay, within two business day of the due date, amounts due on the secured notes to the Depository Trust Company in accordance with the terms of the Indenture.          -----END PRIVACY-ENHANCED MESSAGE-----