REGISTRATION STATEMENT |
|
UNDER |
|
THE SECURITIES ACT OF 1933 |
|
Post-Effective Amendment No. 61 |
|
and |
|
REGISTRATION STATEMENT |
|
UNDER |
|
THE INVESTMENT COMPANY ACT OF 1940 |
|
Amendment No. 159 |
|
☐ |
immediately upon filing pursuant to paragraph (b) of Rule 485 |
☒ |
on April 30, 2024 pursuant to paragraph (b) of Rule 485 |
☐ |
60 days after filing pursuant to paragraph (a)(1) of Rule 485 |
☐ |
on (date) pursuant to paragraph (a)(1) of Rule 485. |
☐ |
this post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
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FEES AND EXPENSES |
Location In The
Prospectus | ||
Charges for
Early
Withdrawals |
If you withdraw money from your Contract within 7 years following your
last Purchase Payment, you will be assessed a withdrawal charge of up to
8.0% (as a percentage of Purchase Payments withdrawn), declining to 0%
over that time period.
For example, if you make a withdrawal, you could pay a withdrawal charge
of up to $8,000 on a $100,000 investment. |
Fee Table –
Transaction
Expenses
Withdrawals,
Withdrawal
Charges, and
Market Value
Adjustment | ||
Transaction
Charges |
In addition to charges for early withdrawals, you may also be charged
for other transactions. There may be taxes on Purchase Payments and charges
for transfers between investment options. Currently, we do not charge
for transfers. However, we reserve the right to charge
$15 per transfer. |
Fee Table -
Transaction
Expenses
Transfer Privilege
Contract Charges | ||
Ongoing Fees
and Expenses
(annual charges) |
The table below describes the fees and expenses that you may pay
each year, depending on the investment options you
choose. Please refer to your Contract specifications page for information about the specific fees you will
pay each year based on the investment options you have
elected. |
Fee Table - Transaction Expenses Contract Charges
Benefits Available
Under the
Contract
Appendix A -
Funds Available Under the Contract | ||
Annual Fee |
Minimum |
Maximum | ||
Base contract |
1.35%1,2 |
1.35%1,2 | ||
Investment Options
(Fund fees and expenses) |
0.68%3 |
2.28%3 | ||
Optional Benefits Available for an
Additional Charge (for a single
optional benefit, if elected) |
0.20%1 |
1.30%4 | ||
1 As a percentage of average daily net Variable Account assets.
2 For Contracts purchased prior to March 5, 2007, if you were age 76 or older on the
Contract’s Open Date, the rate is 1.55%. After you annuitize, the rate is 1.60%. 3 As a percentage of Fund net assets.
4 As a percentage of the highest Withdrawal Benefit Base (for the Income Riser Living
Benefit or highest Fee Base (for the Income ON Demand III Escalator
Living Benefit) during the Account Year. | ||||
Because your Contract is customizable, the choices you make affect how
much you will pay. To help you understand the cost of
owning your Contract,
the following table shows the lowest and highest cost you could pay
each
year, based on current charges. This estimate assumes that you do not
take withdrawals from the Contract, which could add withdrawal charges that substantially increase costs. |
|
FEES AND EXPENSES (CONT.) |
Location In The
Prospectus | ||
|
Lowest Annual Cost:
$1,880 |
Highest Annual Cost:
$4,379 |
| |
Assumes:
•Investment of $100,000 •5% annual appreciation
•Least expensive Fund fees and expenses •No optional benefits
•No sales charges •No additional Purchase Payments,
transfers or withdrawals |
Assumes:
•Investment of $100,000 •5% annual appreciation
•Most expensive combination of optional benefits and Fund fees and expenses •No sales charges
•No additional Purchase
Payments, transfers or withdrawals | |||
|
RISKS |
Location In The
Prospectus | ||
Risk of Loss |
You can lose money by investing in the Contract. |
Principal Risks of
Investing in the
Contract
Transfer Privilege | ||
Not a
Short-Term
Investment |
•The Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. •The benefits of tax deferral, long-term income and living
benefit guarantees mean the Contract is generally more beneficial to investors
with a long-term horizon. You should not use the Contract as a short-term
investment.
•Withdrawal charges may apply to withdrawals taken within 7 years after a
Purchase Payment. If you take a withdrawal, a withdrawal charge may reduce the withdrawal amount that you actually receive and the value of
your investment. Withdrawals may also reduce or terminate Contract
guarantees.
•Withdrawals may be subject to taxes, including a 10% federal tax penalty
if you take a withdrawal before age 59 1∕2. |
Principal Risks of
Investing in the
Contract
Withdrawals,
Withdrawals
Charges, and
Market Value
Adjustment
Tax Provisions | ||
Risks Associated
with Investment
Options |
•An investment in the Contract is subject to the risk of poor investment performance and can vary depending on the performance of the investment options available under the Contract (e.g., the Funds). •Each investment option (including any Fixed Account investment option)
will have its own unique risks.
•You should review the investment options before making an investment
decision. |
Principal Risks of
Investing in the
Contract
The Variable Account The Fixed
Account Options - The Guarantee
Periods | ||
Insurance
Company Risks |
An investment in the Contract is subject to the risks related to the Company.
Any obligations (including under any Fixed Account investment options),
guarantees, or benefits are subject to the claims-paying ability of the
Company. Additional information about the Company, including its financial strength ratings, is available upon request by calling (877) 253-2323 or visiting https://www.delawarelife.com/contact-us/contact-page.
|
Principal Risks of Investing in the Contract The Variable
Account
The Fixed Account Options -
The Guarantee Periods |
|
RESTRICTIONS |
Location In The
Prospectus | ||
Investments |
•Certain investment options may not be available under the
Contract.
•You are allowed to make 12 transfers between investment options per
Account Year. We reserve the right to charge $15 per transfer. At least 6 days must elapse between transfers. At least 30 days must elapse between
transfers to and from Guarantee Periods. Your transfers between Fund
options are subject to policies designed to deter frequent transfers.
These transfer restrictions do not apply to transfers
under the Contract’s
automatic programs.
•We reserve the right to remove or substitute Funds as investment options. |
The Variable Account The Fixed
Account Options - The Guarantee
Periods Transfer Privilege Appendix A - Funds Available
Under the
Contract | ||
Optional
Benefits |
•The Contract contains optional death and living benefits, available for an additional charge, which must be elected on or before the Issue
Date and are no longer available to be added to your Contract. •If you elected an optional living benefit, all of your Account Value must
be invested in Designated Funds at all times and, if using an asset
allocation model, must comply with minimum and maximum allocation
percentage ranges during the term of your optional living
benefit. We
reserve the right to declare that a particular Fund no longer qualifies as a
Designated Fund. •Failure to comply with the applicable investment restrictions
will result in the termination of your living
benefit. •The amount and frequency of Purchase Payments may be limited depending on the optional living benefit you have elected, and
Purchase Payments made after the first Account Year may receive a lower benefit.
•Early Withdrawals and withdrawals that exceed specified limits may
affect the availability of your living benefit by reducing the benefit
by an amount greater than the amount withdrawn and could
terminate your living benefit. |
Designated Funds Build Your Own Portfolio Death Benefit Appendix B - List of Designated
Funds and Other Investment Restrictions Appendix F - Optional Death Benefits and Examples | ||
|
TAXES |
Location In The
Prospectus | ||
Tax
Implications |
•You should consult with a tax professional to determine the tax
implications of an investment in and payments received under the
Contract. •There is no additional tax benefit if you purchase the
Contract through a
tax-qualified plan or an individual retirement account
(IRA). •Earnings under your Contract are taxed at ordinary income rates when withdrawn. You may be subject to a 10% federal tax penalty if you take a
withdrawal before age 59 1∕2. |
Tax Provisions |
|
CONFLICTS OF INTEREST |
Location In The
Prospectus | ||
Investment
Professional
Compensation |
Your investment professional may receive compensation for selling the
Contract to you, including commissions, other cash compensation, and non-cash compensation. We may share the revenue we earn on this Contract with your investment professional’s firm. As a result of these compensation
arrangements, your investment professional may have a financial
incentive to offer or recommend this Contract to you over another investment for
which the investment professional is not compensated or is compensated
less. |
Distribution of the Contract | ||
Exchanges |
Some investment professionals may have a financial incentive to offer
you a new contract in place of the one you already own.
You should only exchange a contract you already own if
you determine, after comparing the features, fees, and
risks of both contracts, that it is better for you to purchase the new contract rather than continue to own your existing contract. |
Sales Load Imposed on Purchases (as a percentage of Purchase Payments) |
None | |
Deferred Sales Load (or Withdrawal Charge)
(as a percentage of Purchase Payments withdrawn) |
8%1 | |
Withdrawal Charge Schedule |
| |
Number of Completed Years Since the Purchase Payment Has Been in Your Contract |
Withdrawal
Charge |
|
0 |
8% |
|
1 |
8% |
|
2 |
7% |
|
3 |
6% |
|
4 |
5% |
|
5 |
4% |
|
6 |
3% |
|
7 or more |
0% |
|
Exchange Fee (per transfer after 12th transfer in an Account Year) |
$152
(Currently $0) |
Administrative Expenses1 |
$50
|
Base Contract Expenses2 (as a percentage of average
Variable Account Value) |
1.35% |
Optional Benefit Expenses |
Maximum3 Charge |
Maximum Anniversary Account Value (“MAV”)(as a percentage of the Variable Account
Value)4,5 |
0.40% |
5% Premium Roll-Up4,6
|
0.20% |
Earnings Enhancement Benefit
Premier4,6 |
0.25% |
Earnings Enhancement Benefit Premier with MAV4,5,6 |
0.40% |
Optional Benefit Expenses |
Maximum3 Charge |
Earnings Enhancement Benefit Premier with 5% Roll-Up4,6 |
0.40% |
Earnings Enhancement Benefit Premier Plus4,6 |
0.40% |
Income Riser Living Benefit7,8 (as a percentage of the highest Withdrawal Benefit Base10
during the Account Year) |
1.30% |
Secured Returns Living
Benefit7,9 (as a
percentage of average daily net assets) |
0.40%11 |
Secured Returns for Life Plus, Secured Returns for Life or Secured Returns 2 Living Benefits7,9
(as a percentage of the highest Account Value during the Account Year) |
0.50%11 |
Retirement Income Escalator Living Benefit7,9 (as a percentage of the highest
Withdrawal Benefit Base10 during the Account
Year) |
0.95%11 |
Income ON Demand Living
Benefit7,9 (as a
percentage of the highest Income Benefit Base12 during the Account Year) |
0.85%11 |
Income ON Demand II Living
Benefit7,9 (as a
percentage of the highest Fee Base13 during the Account Year)7
|
0.85%11 |
Income ON Demand II Plus Living
Benefit7,9 (as a
percentage of the highest Fee Base13 during the Account Year) |
1.15%11 |
Retirement Income Escalator II Living Benefit7,9 (as a percentage of the highest
Withdrawal Benefit Base10 during the Account
Year) |
1.15%11 |
Income ON Demand II Escalator Living Benefit7,9 (as a percentage of the highest
Fee Base13 during the Account Year) |
1.15%11 |
Retirement Asset Protector Living Benefit7,9 (as a percentage of the highest
Retirement Asset Protector Benefit Base14 during the Account
Year) |
0.75%11 |
Income ON Demand III Escalator Living Benefit7,9 (as a percentage of the highest
Fee Base13 during the Account Year) |
1.30%11 |
|
Minimum |
Maximum |
(expenses that are deducted from Fund assets, including management
fees, and/or service (12b-1) fees, and other
expenses) |
0.68% |
2.28% |
1 year |
3 years |
5 years |
10 years |
$12,186 |
$22,311 |
$31,870 |
$56,929 |
1 year |
3 years |
5 years |
10 years |
$5,421 |
$16,472 |
$27,777 |
$56,929 |
1 year |
3 years |
5 years |
10 years |
$5,421 |
$16,472 |
$27,777 |
$56,929 |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
Dollar Cost
Averaging
Program |
Allows you to allocate all or
a portion of a Purchase
Payment to a designated
Sub-Account or a Fixed
Account Guarantee Period,
if available, and
automatically transfer a
fractional amount to one or
more Sub-Accounts at
regular time intervals until
the program is depleted or
you elect to stop. The final
transfer will include all
interest earned. |
Standard |
No charge |
N/A |
•Available only during the Accumulation Phase. •All future Purchase Payments will be allocated to the program unless you specify otherwise. •Each new Purchase Payment will begin a new program. •May be subject to a $1,000 minimum allocation. •If you elected an optional living benefit, your ability to make Purchase Payments into the program may be limited. •If you alter or stop the program, amounts remaining in the Fixed Account will be transferred to the Money Market Sub-Account. |
Asset
Allocation
Program |
Allows you to participate in
an asset allocation model
that we may make available.
Each model represents a
combination of
Sub-Accounts with a
different level of risk. |
Standard |
No charge |
N/A |
•Available only during the Accumulation Phase. •You may participate in only one model. •Models are “static,” meaning the original percentage allocations do not change and Account Value is only rebalanced among the Sub-Accounts in the model. •You cannot change models but you can make an independent decision to change your asset allocations at any time. •Models may be affected by fund mergers, liquidations, substitutions, or closures. |
Systematic
Withdrawal
Program |
Allows you to take
automatic withdrawals from
your Contract Value at a
designated frequency. |
Standard |
No charge |
N/A |
•Available only during the
Accumulation Phase. •Systematic withdrawals may repeatedly expose you to the risks associated with partial withdrawals. •Withdrawals may be subject to withdrawal charges and taxes, including tax penalties. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
•You are responsible for adjusting the amount and timing of withdrawals to comply with withdrawal limits under an optional living benefit. •Withdrawals may significantly
reduce an optional living
benefit, the basic death
benefit, or an optional death
benefit, including by an
amount greater than the
amount withdrawn. •We reserve the right to impose a minimum Account Value of $10,000 for enrollment. |
Interest Out
Program |
Allows automatic payments
or reinvestments of interest
credited for Fixed Account
Guarantee Periods. |
Standard |
No charge |
N/A |
•Available only during the Accumulation Phase. •Interest withdrawals may repeatedly expose you to the risks associated with partial withdrawals. •Withdrawals may be subject to withdrawal charges and taxes, including tax penalties. •Withdrawals reduce Account Value and may reduce the death benefit, including by an amount greater than the amount withdrawn. •We reserve the right to impose a minimum Account Value of $10,000 for enrollment. |
Portfolio
Rebalancing
Program |
Allows you to automatically
transfer Contract Value
among the Sub-Accounts to
maintain your selected
percentage allocations. |
Standard |
No charge |
N/A |
•Available only during the Accumulation Phase. •Only quarterly, semi-annual, and annual rebalancing available. •Only rebalances quarterly among Designated Funds if you elect an optional living benefit. |
Credit |
If your Purchase Payments
or Account Value exceeds
$1 million on your Account
Anniversary, an amount
equal to 0.15% of your
Account Value will be
credited to your Account on
that date and on every |
Standard |
No charge |
N/A |
•May result in your Account
Value becoming the greatest
amount payable under the
basic death benefit. •If you are participating in an optional living benefit, the increase in your Account Value
|
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
subsequent Account
Anniversary during the
Accumulation Phase. The
0.15% credit is not a
Purchase Payment and
therefore no withdrawal
charges are directly
associated with the credit. |
|
|
|
may cause a step-up of your
Withdrawal Benefit Base. •This credit is considered earnings and, as such, it is factored into the calculation of your free withdrawal amount. |
Secured
Future
Program |
Allows you to divide your
initial Purchase Payment
between the Fixed Account
and the Variable Account.
You choose a Fixed
Account Guarantee Period
and we allocate to that
Guarantee Period the
portion of your initial
Purchase Payment
necessary so that, at the end
of the Guarantee Period,
your Fixed Account
allocation, including
interest, will equal the
entire amount of your initial
Purchase Payment less any
Contract charges deducted
from the Fixed Account.
The remainder of your
initial Purchase Payment is
invested in the
Sub-Accounts of your
choice. |
Standard |
No charge |
N/A |
•No longer available. •Terminates at the end of the Guarantee Period. •Not renewable. |
Travel
Assistance
Program |
Provides designated
services through a third
party when the covered
person is more than 100
miles from home. Services
may include:
•Referral to an English speaking doctor •Hospital admission guarantee •Emergency evacuation •Critical care monitoring •Medically supervised repatriation •Assistance in filling prescriptions •Emergency messaging •Telephone counselling |
Standard |
No charge |
N/A |
•No longer offered. •Automatic enrollment for certain Contracts opened before January 11, 2010 unless you instructed otherwise. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
•Transportation to join a hospitalized covered person •Transportation home for
unattended minor
children •Legal and interpreter referrals •Return of mortal remains |
|
|
|
|
Nursing
Home
Withdrawal
Charge
Waiver |
Allows you to make a full
withdrawal without a
withdrawal charge if you
are confined to a nursing
home. |
Standard |
No charge |
N/A |
•Waiver must be approved in state of issue. •Not available until one year after the Contract is issued. •Must be confined to an eligible nursing home. •Must be confined for 180 continuous days or any shorter period required by your state. •Confinement must begin after the Contract is issued. •Requires proof of eligibility. |
Basic Death
Benefit |
Pays a death benefit equal
to:
- The greatest of the
Account Value, the total
Purchase Payments
(adjusted for withdrawals),
and the Surrender Value if
you are 85 or younger when
we receive your application;
or
- The Surrender Value if
you are 86 or older when
we receive your application. |
Standard |
No charge |
N/A |
•Withdrawals may significantly reduce the benefit, including by an amount greater than the amount withdrawn. •Annuitizing the Contract terminates the benefit. |
Maximum
Anniversary
Value (MAV)
Death Benefit |
Pays a death benefit equal
to the higher of the Basic
Death Benefit and the
highest Account Value on
any Account Anniversary
before the Covered Person’s
81st birthday, adjusted for
Purchase Payments and
withdrawals made after that
Account Anniversary. |
Optional |
0.40% of
average
daily
Variable
Account
Value |
0.40% of
average
daily
Variable
Account
Value |
•Cannot be elected after the Contract is issued. •Cannot be changed after the Contract is issued. •Withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn. •Annuitizing the Contract terminates the benefit. |
5% Premium
Roll-Up
(“5% |
Pays a death benefit equal
to the higher of the Basic
Death Benefit and the sum |
Optional |
0.20% of
average
daily |
0.20% of
average
daily |
•No longer available •Interest accruals end at the earlier of: |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
Roll-Up”)
Death Benefit |
of total Purchase Payments
plus interest accruals,
adjusted for partial
withdrawals.
Interest accrues at 5%
annual rate on amounts in
the Variable Account. |
|
Variable
Account
Value |
Variable
Account
Value |
•First day of the month following your 80th birthday •The day the death benefit equals two times the sum of your Adjusted Purchase Payments. |
Earnings
Enhancement
Benefit
Premier
(“EEB
Premier”)
Death Benefit |
Pays a death benefit equal
to the Basic Death Benefit
plus the EEB Premier
amount.
Formula for calculating
EEB Premier amount is
determined by your age on
the day we receive your
application. |
Optional |
0.25% of
average
daily
Variable
Account
Value |
0.25% of
average
daily
Variable
Account
Value |
•No longer available. •EEB Premier amount is a percentage of the difference between your Account Value and your Adjusted Purchase Payments. The percentage is determined by your age on the day we receive your application: •45% if you are age 69 or younger; •25% if you are between the
ages of 70 and 79, and the
EEB Premier amount locks
in on the Account
Anniversary following your
85th birthday. •EEB Premier amount is subject to a cap. •Withdrawals may significantly
reduce the benefit, including
by an amount greater than the
amount withdrawn. •Annuitizing the Contract terminates the benefit. |
Earnings
Enhancement
Benefit
Premier Plus
(“EEB
Premier
Plus”) Death
Benefit |
Pays a death benefit equal
to the Basic Death Benefit
plus the EEB Premier Plus
amount.
Formula for calculating
EEB Premier Plus amount
is determined by your age
on the day we receive your
application. |
Optional |
0.40% of
average
daily
Variable
Account
Value |
0.40% of
average
daily
Variable
Account
Value |
•No longer available. •EEB Premier Plus amount is a percentage of the difference between your Account Value and your Adjusted Purchase Payments. The percentage is determined by your age on the day we receive your application: •75% if you are 69 or younger; •35% if you are between the
ages of 70 and 79, and the
EEB Premier Plus amount
locks in on the Account
Anniversary following your
85th birthday. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
•EEB Premier Plus amount is subject to a cap. •Withdrawals may significantly reduce the benefit, including by an amount greater than the amount withdrawn. •Annuitizing the Contract terminates the benefit. |
Earnings
Enhancement
Benefit
Premier with
MAV (“EEB
Premier with
MAV”) Death
Benefit |
Pays a death benefit equal
to the MAV Death Benefit
Plus the EEB Premier
amount.
Formula for calculating
EEB Premier amount is
determined by your age on
the day we receive your
application. |
Optional |
0.40% of
average
daily
Variable
Account
Value |
0.40% of
average
daily
Variable
Account
Value |
•No longer available. •EEB Premier amount is a percentage of the difference between your Account Value and your Adjusted Purchase Payments. The percentage is determined by your age on the day we receive your application: •45% if you are age 69 or younger; •25% if you are between the
ages of 70 and 79, and the
EEB Premier amount locks
in on the Account
Anniversary following your
85th birthday. •EEB Premier amount is subject to a cap. •Withdrawals may significantly
reduce the benefit, including
by an amount greater than the
amount withdrawn. •Annuitizing the Contract terminates the benefit. |
Earnings
Enhancement
Benefit
Premier with
5% Roll-Up
(“EEB
Premier with
5%
Roll-Up”)
Death Benefit |
Pays a death benefit equal
to the 5% Roll-Up Death
Benefit PLUS the EEB
Premier amount.
Formula for calculating
EEB Premier amount is
determined by your age on
the day we receive your
application. |
Optional |
0.40% of
average
daily
Variable
Account
Value |
0.40% of
average
daily
Variable
Account
Value |
•No longer available. •EEB Premier amount is a percentage of the difference between your Account Value and your Adjusted Purchase Payments. The percentage is determined by your age on the day we receive your application: •45% if you are age 69 or younger; •25% if you are between the
ages of 70 and 79, and the
EEB Premier amount locks
in on the Account
Anniversary following your
85th birthday. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
•EEB Premier amount is subject to a cap. •Withdrawals may significantly
reduce the benefit, including
by an amount greater than the
amount withdrawn. •Annuitizing the Contract terminates the benefit. |
Income Riser
(SIR) Living
Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes an annual step-up
(based on the Account
Value on each Account
Anniversary) and bonus
feature that may increase
the guaranteed benefit.
Under the bonus feature,
your benefit base may
increase by a percentage of
your bonus base on each
Account Anniversary in the
bonus period. The initial
bonus period may be
extended at each step-up, if
any, during the bonus
period. |
Optional |
1.30% of
the highest
Withdrawal
Benefit
Base during
the Account
Year for
joint-life
coverage
(1.10% for
single-life
coverage) |
0.325% of
the
Withdrawal
Benefit
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.275% for
single-life
coverage) |
•Cannot be elected after the Contract is issued. •Cannot make additional Purchase Payments after your first Account Year. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger withdrawals in later
years. •All withdrawals reduce the potential for step-ups. •Bonus period ends on the later of 10 years after the Contract is issued or 10 years after most recent step-up (step-up feature may be available until the Annuity Income Date). •No step-up if Account Value is $5,000,000 or more. •A step-up may increase your charge (no future step-ups if you refuse consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Secured
Returns for |
Guarantees a return of your
initial Purchase Payment |
Optional |
0.50% of
the highest |
0.125% of
the Account |
•No longer available. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
Life Living
Benefit |
(adjusted for subsequent
Purchase Payments and
withdrawals) during the
accumulation period,
regardless of investment
performance, provided you
comply with certain
requirements.
Includes a step-up feature
(based on Account Value)
that may allow you to
increase your guaranteed
amount.
The guaranteed amount can
be paid out under:
A Guaranteed Minimum
Accumulation Benefit
(“AB”) Plan, which returns
your guaranteed amount on
the AB Plan Maturity Date;
or
A Guaranteed Minimum
Withdrawal Benefit (“WB”)
Plan, which provides for
either return of your
guaranteed amount through
periodic withdrawals or, if
you meet certain
conditions, payments for
life. |
|
Account
Value
during the
Account
Year. |
Value at the
end of each
Account
Quarter. |
•Guaranteed amount can be less
than Account Value. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger withdrawals in later
years. •All withdrawals reduce the potential for step-ups. •Automatic enrollment in the AB Plan continues unless you elect the WB Plan. •AB Plan matures on the later of the 10th Account Anniversary or 10 years after the most recent step-up (may be available until the Maximum Annuity Commencement Date). •Under the AB Plan, Purchase Payments after the second Account Anniversary may be disadvantageous, as they may increase the guaranteed amount by less than 100% of the amount of the payments. •WB Plan may be elected prior to the earliest of the Maximum Annuity Commencement Date, the date you annuitize, and the date the AB Plan matures. •Once you elect the WB Plan, you may not change to the AB Plan. •Under the WB Plan, no
additional Purchase Payments
after your fourth Account
Anniversary. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
•Step-ups may be elected on or after your third Account Anniversary. •At least 3 full years must pass before you can elect another step-up. •Step-ups may be subject to
additional timing restrictions. •Step-ups limited by maximum Account Value of $5 million. •A step-up may increase your charge. •Charges will continue until the
7th Account Anniversary if the
benefit is cancelled because
you have violated the
investment restrictions or
assigned the Contract. •You may revoke the benefit at any time after the 7th Account Anniversary. •Once the benefit is cancelled or revoked, it cannot be reinstated. •Annuitization terminates the benefit. |
Secured
Returns
Living
Benefit |
Guarantees a return of your
initial Purchase Payment
plus a percentage of any
subsequent Purchase
Payments (adjusted for any
withdrawals) during the
accumulation period,
regardless of investment
performance, provided you
comply with certain
requirements.
The guaranteed amount can
be paid out under:
A Guaranteed Minimum
Accumulation Benefit
(“AB”) Plan, which returns
your guaranteed amount on
the 10th Account
Anniversary; or
A Guaranteed Minimum
Withdrawal Benefit (“WB”)
Plan, which returns your |
Optional |
0.40% of
average
daily net
assets. |
0.40% of
average
daily net
assets |
•No longer available. •Guaranteed amount can be less than Account Value. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •Withdrawals will reduce your guaranteed amount, and may significantly reduce the benefit if Account Value is lower than the guaranteed amount. •Deferring withdrawals in early years may allow you to take larger withdrawals in later years. •Automatic enrollment in the
AB Plan continues unless you
elect the WB Plan. •AB Plan matures on the 10th Account Anniversary. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
guaranteed amount through
periodic withdrawals until
your guaranteed amount
equals zero. |
|
|
|
•Under the AB Plan, Purchase Payments after the second Account Anniversary may be disadvantageous, as they may increase the guaranteed amount by less than 100% of the amount of the payments. •WB Plan may be elected prior to the earliest of your 81st birthday, the 10th Account Anniversary, and annuitization. •Once you elect the WB Plan, you may not change to the AB Plan. •Under the WB Plan, no
additional Purchase Payments
after your fourth Account
Anniversary. •Under the WB Plan, if your Account Value drops to zero, no subsequent Purchase Payments will be accepted and no death benefit will be payable. •Charges will continue until the
7th Account Anniversary if the
benefit is cancelled because
you have violated the
investment restrictions or
assigned the Contract. •You may revoke the benefit at any time after the 7th Account Anniversary. •Once the benefit is cancelled or revoked, it cannot be reinstated. •Annuitization terminates the benefit. |
Secured
Returns 2
Living
Benefit |
Guarantees a return of your
initial Purchase Payment
(adjusted for subsequent
Purchase Payments and
withdrawals) during the
accumulation period,
regardless of investment
performance, provided you
comply with certain
requirements.
Includes step-up and refund
features that may allow you |
Optional |
0.50% of
the highest
Account
Value
during the
Account
Year. |
0.125% of
the Account
Value at the
end of each
Account
Quarter. |
•No longer available. •Guaranteed amount can be less than your Account Value. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •Withdrawals will reduce your guaranteed amount, and may significantly reduce the benefit
|
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
to increase your guaranteed
amount.
The guaranteed amount can
be paid out under:
A Guaranteed Minimum
Accumulation Benefit
(“AB”) Plan, which returns
your guaranteed amount on
the AB Plan Maturity Date;
or
A Guaranteed Minimum
Withdrawal Benefit (“WB”)
Plan, which provides for
return of your guaranteed
amount through periodic
withdrawals until your
guaranteed amount equals
zero.
Under the step-up feature,
you may increase your
guaranteed amount to equal
the Account Value under
certain conditions.
Under the refund feature,
we may refund your benefit
charges if you are in the AB
Plan and Account Value is
greater than or equal to
your guaranteed amount on
the AB Maturity Date. |
|
|
|
if Account Value is lower than the guaranteed amount. •Deferring withdrawals in early years may allow you to take larger withdrawals in later years. •Automatic enrollment in the
AB Plan continues unless you
elect the WB Plan. •AB Plan matures on the later of your 10th Account Anniversary or 10 years from your most recent step-up. •Under the AB Plan, additional Purchase Payments after the second Account Anniversary may be disadvantageous, as they may increase the guaranteed amount by less than 100% of the amount of the payments. •WB Plan may be elected any
time after your first Account
Anniversary and before the
earliest of your 81st birthday,
the date you annuitize, and the
date your AB Plan matures. •Once you elect the WB Plan, you may not change to the AB Plan. •Under the WB Plan, no
additional Purchase Payments
after your fourth Account
Anniversary. •Refund feature not available under the WB Plan. •Under the WB Plan, if your Account value drops to zero, no subsequent Purchase Payments will be accepted and no death benefit will be payable. •Step-ups may be elected after
your fifth Account
Anniversary. •At least 5 full years must pass before you can elect another step-up. •Step-ups may be subject to
additional timing and age
restrictions. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
•A step-up may increase your charge. •Charges will continue until the
7th Account Anniversary if the
benefit is cancelled because
you have violated the
investment restrictions or
assigned the Contract. •You may revoke the benefit at any time after the 7th Account Anniversary. •Once the benefit is cancelled or revoked, it cannot be reinstated. •Annuitization terminates the benefit. |
Secured
Returns for
Life PlusSM Living Benefit |
Guarantees a return of your
initial Purchase Payment
(adjusted for subsequent
Purchase Payments and
withdrawals) during the
accumulation period,
regardless of investment
performance, provided you
comply with certain
requirements.
Includes step-up, refund,
and bonus features that may
allow you to increase your
guaranteed amount under
certain conditions.
The guaranteed amount can
be paid out under:
A Guaranteed Minimum
Accumulation Benefit
(“AB”) Plan, which returns
your guaranteed amount on
the AB Plan Maturity Date;
or
A Guaranteed Minimum
Withdrawal Benefit (“WB”)
Plan, which provides for
either return of your
guaranteed amount through
periodic withdrawals or, if
you meet certain
conditions, payments for
life. |
Optional |
0.50% of
the highest
Account
Value
during the
Account
Year. |
0.125% of
the Account
Value at the
end of each
Account
Quarter. |
•No longer available. •Guaranteed amount can be less than your Account Value. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger withdrawals in later
years. •Automatic enrollment in the AB Plan continues unless you elect the WB Plan. •The AB Plan matures on the AB Plan Maturity Date, which will be the later of your 10th Account Anniversary or ten years from your last step-up (may be available until the Maximum Annuity Commencement Date). •Under the AB Plan, additional Purchase Payments after the second Account Anniversary may be disadvantageous, as |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
Under the step-up feature,
you may increase your
guaranteed amount to equal
the Account Value under
certain conditions.
Under the refund feature,
we may refund your benefit
charges if you are in the AB
Plan and Account Value is
greater than or equal to
your guaranteed amount on
the AB Maturity Date.
Under the bonus feature
(the “Plus 5 Program”),
your guaranteed amount
may increase by a bonus if
you are in the WB Plan.
During the bonus period, a
bonus equal to 5% of your
bonus base will accrue in
Account Years when you do
not take a withdrawal. |
|
|
|
they may increase your guaranteed amount and bonus base by less than 100% of the amount of the payments. •WB Plan may be elected prior to the earliest of your AB Maturity Date, the Contract’s Maximum Annuity Commencement Date, and the date you annuitize. •Once you elect the WB Plan, you may not change to the AB Plan. •Under the WB Plan, no
additional Purchase Payments
after your fourth Account
Anniversary. •Refund feature not available under the WB Plan. •Step-ups may be elected on or after your first Account Anniversary. •At least one full year must pass before you can elect another step-up. •Step-ups may be subject to
additional timing restrictions. •Step-ups limited by maximum Account Value of $5 million. •A step-up may increase your charge. •Plus 5 Program bonus period is
available until the earlier of the
end of the first 10 Account
Years or your 80th birthday. •No bonus will be accrued or applied in any Account Year where you take a withdrawal. •You must elect the WB Plan for a bonus to be applied under the Plus 5 Program. •A step-up under the AB Plan will reduce the amount of the Plus 5 Program bonus that may be applied under the WB Plan. •Charges will continue until the 7th Account Anniversary if the benefit is cancelled because you have violated the |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
investment restrictions or
assigned the Contract. •You may revoke the benefit at any time after the 7th Account Anniversary. •Once the benefit is cancelled or revoked, it cannot be reinstated. •Annuitization terminates the benefit. |
Retirement
Income
EscalatorSM Living Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes an annual step-up
(based on the Account
Value on each Account
Anniversary) and bonus
feature that may increase
the benefit base.
Under the bonus feature,
your benefit base may
increase by 7% of your
bonus base on each
Account Anniversary in the
bonus period. The bonus
period may be extended at
each step-up, if any, during
the bonus period.
Also provides opportunity
to increase the percentage
used to calculate your
guaranteed withdrawal
amount. You may become
eligible for a higher
percentage by deferring the
beginning of guaranteed
withdrawals. |
Optional |
0.95% of
the highest
Withdrawal
Benefit
Base during
the Account
Year for
joint-life
coverage
(0.75% for
single-life
coverage) |
0.2375% of
the
Withdrawal
Benefit
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.1875%
for
single-life
coverage) |
•No longer available. •No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. •All withdrawals reduce the potential for step-ups. •Bonus period ends on the later of 10 years after the Contract is issued or 10 years after the most recent step-up (may be available until the Annuity Income Date). •No step-up if Account Value is $5,000,000 or more. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Income ON |
Allows you to withdraw a |
Optional |
0.85% of |
0.2125% of |
•No longer available. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
Demand® Living Benefit (“IOD”) |
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes a stored income
feature. Any guaranteed
amount you do not
withdraw in a given year
will be stored in the Stored
Income Balance and can be
withdrawn in the future.
Under the stored income
feature, all or part of the
Stored Income Balance can
be used to effect a
“one-time” increase of the
benefit base used to
calculate your guaranteed
withdrawal amount.
Also includes an annual
step-up (based on the
Account Value and Stored
Income Balance, if any, on
each Account Anniversary)
that may increase the
guaranteed benefit.
Also includes a return of
Purchase Payments feature.
If you make no withdrawals
during the first 10 Account
Years, we will credit your
Account Value with the
excess of your total
Purchase Payments over
your then Account Value. |
|
the highest
Income
Benefit
Base during
the Account
Year for
joint-life
coverage
(0.65% for
single-life
coverage) |
the Income
Benefit
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.1625%
for
single-life
coverage) |
•No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. •The “one-time” use of the Stored Income Balance to increase the Income Benefit Base must be exercised within specified time limits prior to your Annuity Commencement Date. •Step-ups limited by a
maximum Account Value of
$5 million. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Income ON
Demand® II
Living
Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes a stored income
feature. Any guaranteed |
Optional |
0.85% of
the highest
Fee Base
during the
Account
Year for
joint-life
coverage
(0.65% for
single-life
coverage) |
0.2125% of
the Fee
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.1625%
for
single-life |
•No longer available. •No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
amount you do not
withdraw in a given year
will remain in the Stored
Income Balance and can be
withdrawn in the future.
Under the stored income
feature, all or part of the
Stored Income Balance can
be used to effect a
“one-time” increase of the
benefit base used to
calculate your guaranteed
withdrawal amount.
Also includes an annual
step-up (based on the
Account Value and Stored
Income Balance, if any, on
each Account Anniversary)
that may increase the
guaranteed benefit. |
|
|
coverage) |
•The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. •The “one-time” use of the Stored Income Balance to increase the Income Benefit Base must be exercised prior to your Annuity Commencement Date. •Step-ups may be limited by
maximum Account Value and
Stored Income Balance
restrictions. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Income ON
Demand® II
Plus Living
Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes a stored income
feature. Any guaranteed
amount you do not
withdraw in a given year
will remain in the Stored
Income Balance and can be
withdrawn in the future.
Under the stored income
feature, all or part of the
Stored Income Balance can
be used to effect a
“one-time” increase of the |
Optional |
1.15% of
the highest
Fee Base
during the
Account
Year for
joint-life
coverage
(0.95% for
single-life
coverage) |
0.2875% of
the Fee
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.2375%
for
single-life
coverage) |
•No longer available. •No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
benefit base used to
calculate your guaranteed
withdrawal amount.
Also includes an annual
step-up (based on the
Account Value and Stored
Income Balance, if any, on
each Account Anniversary)
and bonus feature that may
increase the guaranteed
benefit.
Under the bonus feature,
your benefit base may
increase by 7% of your
bonus base on each
Account Anniversary in the
bonus period. The initial
bonus period may be
extended at each step-up, if
any, during the bonus
period. |
|
|
|
•The “one-time” use of the Stored Income Balance to increase the Income Benefit Base must be exercised prior to your Annuity Commencement Date. •Bonus period ends on the later
of 10 years after the Contract is
issued or 10 years after most
recent step-up (may be
available until the Annuity
Income Date). •Step-ups may be limited by maximum Account Value and Stored Income Balance restrictions. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Retirement
Income
EscalatorSM II Living Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes an annual step-up
(based on the Account
Value on each Account
Anniversary) and bonus
feature that may increase
the guaranteed benefit.
Under the bonus feature,
your benefit base may
increase by 7% of your
bonus base on each
Account Anniversary in the
bonus period. The initial
bonus period may be
extended at each step-up, if
any, during the bonus
period.
Also provides opportunity |
Optional |
1.15% of
the highest
Withdrawal
Benefit
Base during
the Account
Year for
joint-life
coverage
(0.95% for
single-life
coverage) |
0.2875% of
the
Withdrawal
Benefit
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.2375%
for
single-life
coverage)
Fees are
lower if you
purchased
your
contract
before
February 17,
2009 and
you have
not
consented
to higher
fees in
connection |
•No longer available. •No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. •All withdrawals reduce the potential for step-ups. •Bonus period ends on the later of 10 years after the Contract is issued or 10 years after most
|
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
to increase the percentage
used to calculate your
guaranteed withdrawal
amount if your age at
step-up makes you eligible
for a higher percentage. |
|
|
with a
step-up |
step-up (may be available until
the Annuity Income Date). •The percentage used to calculate the guaranteed amount you can withdraw will only increase if you step-up after you reach certain specified ages. •Step-ups may be limited by maximum Account Value and Stored Income Balance restrictions. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Income ON
Demand® II
Escalator
Living
Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes a stored income
feature. Any guaranteed
amount you do not
withdraw in a given year
will remain in the Stored
Income Balance and can be
withdrawn in the future.
Under the stored income
feature, all or part of the
Stored Income Balance can
be used to effect a
“one-time” increase of the
benefit base used to
calculate your guaranteed
withdrawal amount.
Also includes an annual
step-up (based on the
Account Value and Stored
Income Balance, if any, on
each Account Anniversary)
that may increase the |
Optional |
1.15% of
the highest
Fee Base
during the
Account
Year for
joint-life
coverage
(0.95% for
single-life
coverage) |
0.2875% of
the Fee
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.2375%
for
single-life
coverage)
Fees are
lower if you
purchased
your
contract
before
February 17,
2009 and
you have
not
consented
to higher
fees in
connection
with a
step-up. |
•No longer available. •No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. •The “one-time” use of the Stored Income Balance to increase the Income Benefit Base must be exercised prior to your Annuity Commencement Date. •The percentage used to
calculate the guaranteed
amount you can withdraw will
only increase if you step-up |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
guaranteed benefit.
Also provides opportunity
to increase the percentage
used to calculate your
guaranteed withdrawal
amount if your age at
step-up makes you eligible
for a higher percentage. |
|
|
|
after you reach certain
specified ages. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. •Change of ownership may also cancel the benefit. |
Retirement
Asset
ProtectorSM Living Benefit |
Guarantees a return of the
greater of:
The excess of your benefit
base over your Account
Value; or
Your total fees paid for the
benefit.
The return is guaranteed
regardless of investment
performance provided you
reach the maturity date.
Includes an annual step-up
(based on the Account
Value on each Account
Anniversary) that may
increase the guaranteed
benefit. |
Optional |
0.75 of the
highest
benefit base
during the
Account
Year. |
0.1875% of
the benefit
base on the
last day of
the Account
Quarter.
Fees are
lower if you
purchased
your
contract
before
February 17,
2009 and
you have
not
consented
to higher
fees in
connection
with a
step-up. |
•No longer available. •No additional Purchase Payments accepted after the first Account Anniversary. •The maturity date is based on your age when the Contract is issued. •If you are younger than 85 on
the Issue Date, your maturity
date is the later of your 10th
Account Anniversary or 10
years from the date of your
most recent step-up. •If you are 85 on the Issue Date, your maturity date is your Maximum Annuity Commencement Date. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •Withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Step-ups may be elected on or
after your first Account
Anniversary. •At least one full year must pass before you can elect another step-up. •Step-ups may be limited by
maximum Account Value of
$5 million. |
Name of
Benefit |
Purpose |
Is Benefit
Standard
or
Optional |
Maximum
Fee |
Current
Fee |
Brief Description of
Restrictions/
Limitations |
|
|
|
|
|
•A step-up will increase your charge. •You may terminate at any time.
Once terminated, the benefit
may not be reinstated. •Terminates if you annuitize. |
Income ON
Demand® III
Escalator
Living
Benefit |
Allows you to withdraw a
guaranteed amount of
money each year, for life
(on a single- or joint-life
basis), regardless of
investment performance
provided you comply with
certain requirements.
Includes a stored income
feature. Any guaranteed
amount you do not
withdraw in a given year
will remain in the Stored
Income Balance and can be
withdrawn in the future.
Under the stored income
feature, all or part of the
Stored Income Balance can
be used to effect a
“one-time” increase of the
benefit base used to
calculate your guaranteed
withdrawal amount.
Also includes an annual
step-up (based on the
Account Value and Stored
Income Balance, if any, on
each Account Anniversary)
that may increase the
guaranteed benefit.
Also provides opportunity
to increase the percentage
used to calculate your
guaranteed withdrawal
amount if your age at
step-up makes you eligible
for a higher percentage. |
Optional |
1.30% of
the highest
Fee Base
during the
Account
Year for
joint-life
coverage
(1.10% for
single-life
coverage) |
0.3250% of
your Fee
Base on the
last day of
the Account
Quarter for
joint-life
coverage
(0.2750%
for
single-life
coverage) |
•No longer available. •No additional Purchase Payments after the first Account Anniversary. •Investment restrictions limit available investment options. •Investment or transfer outside the investment restrictions will terminate the benefit. •The timing and amount of your withdrawals may significantly reduce the benefit, including by an amount greater than the value withdrawn, and may terminate the benefit and the Contract. •Deferring withdrawals in early
years may allow you to take
larger guaranteed withdrawals
in later years. •The “one-time” use of the Stored Income Balance to increase the Income Benefit Base must be exercised prior to your Annuity Commencement Date. •The percentage used to
calculate the guaranteed
amount you can withdraw will
only increase if you step-up
after you reach certain
specified ages. •Step-ups may be limited by maximum Account Value and Stored Income Balance restrictions. •A step-up may increase your charge (no future step-ups if you do not consent to a charge increase). •You may terminate at any time. Once terminated, the benefit may not be reinstated. •Terminates if you annuitize. |
Number of Account Years Payment Has Been In Your Account |
Withdrawal Charge |
0 - 1 |
8% |
1 - 2 |
8% |
2 - 3 |
7% |
3 - 4 |
6% |
4 - 5 |
5% |
5 - 6 |
4% |
6 - 7 |
3% |
7 or more |
0% |
( |
1 + I |
) |
N/12 |
-1 |
1 + J + b |
Living Benefit |
Maximum Charge per Account Year |
Income Riser |
1.30% of the highest Withdrawal Benefit Base during the Account Year1
|
Annual Withdrawal Amount: |
The total guaranteed amount available for withdrawal each Account Year
during your life, provided that you comply with certain conditions. The
Annual Withdrawal Amount is equal to your current Withdrawal
Benefit Base multiplied by your Lifetime Withdrawal
Percentage. (You should be aware that certain actions you take could significantly reduce the
amount of your Annual Withdrawal Amount.)
|
Early Withdrawal: |
Any withdrawal taken prior to your SIR Coverage Date. |
Excess Withdrawal: |
Any withdrawal taken after your SIR Coverage Date that exceeds your Annual Withdrawal Amount (or your Yearly Required Minimum Distribution
Amount, if greater). |
Lifetime Withdrawal Percentage: |
The percentage used to calculate your Annual Withdrawal Amount. |
SIR Bonus Base: |
The amount on which bonuses are calculated. The SIR Bonus Base is equal
to the sum of your Purchase Payments, increased by any
“step-ups” (described below) and reduced
proportionately by any withdrawal taken prior to your SIR
Coverage Date or any Excess Withdrawals. (See “Excess
Withdrawals” under “Withdrawals Under SIR.”) |
SIR Bonus Period: |
A ten-year period commencing on the Issue Date and ending on your tenth
Account Anniversary. If you “step up” SIR (described below)
during the SIR Bonus Period, the SIR Bonus Period is extended
to ten years from the date of the step-up. |
SIR Coverage Date: |
Your Issue Date if you are at least age 59 at issue; otherwise, the first
Account Anniversary after you attain age 59. |
Withdrawal Benefit Base: |
The amount used to calculate (1) your Annual Withdrawal Amount and (2)
your “SIR Fee.” (See “Cost of SIR.”)
|
You and Your: |
The terms “you” and “your” refer to the oldest living Participant or the
surviving spouse of the oldest Participant, as described under “Death
of Participant Under SIR with Joint-Life Coverage.” In
the case of a non-natural Participant, these terms refer to
the oldest living Annuitant. |
SIR may be appropriate for you if you are an investor who: |
•wants an opportunity for annual income to increase as you
grow older. |
•wants a guaranteed stream of income for life without
annuitizing, beginning on or after your SIR Coverage
Date. |
•wants the option of joint-life coverage.
|
•can defer withdrawals during your early Account Years to
increase your benefit in later years. |
SIR may be inappropriate for you if you are an investor who: |
•anticipates the need for Excess Withdrawals or Early
Withdrawals. |
•wants to invest in funds other than a Designated
Fund. |
•wants single-life coverage on a co-owned
Contract. |
SIR is inappropriate if you are an investor who: |
•wants to make additional Purchase Payments after the first
Account Year. |
•is actively invested in contributory plans, because SIR
prohibits any Purchase Payments after the first Account
Anniversary. |
Your Age on the Date of the First Withdrawal After Your SIR Coverage Date* |
Lifetime Withdrawal Percentage |
59 - 64 |
4% |
65 - 79 |
5% |
80 or older |
6% |
Assume that you purchased a Contract with an initial Purchase Payment of $100,000. Assume also that you are age
65 when your Contract is issued and that you elected to participate in SIR
with single-life coverage. (If you selected joint-life coverage
the numbers shown in the example could be different.) Your Withdrawal Benefit Base and your SIR Bonus Base are each set equal to your initial Purchase Payment on your Issue Date. Because you reached age 59
prior to your Issue Date, your SIR Coverage Date is your Issue Date. You can
begin at any time to withdraw up to your Annual Withdrawal
Amount each Account Year without reducing your Withdrawal Benefit Base. During the SIR Bonus Period, your Withdrawal Benefit Base will increase by 7% of your SIR Bonus Base each Account Year in
which you do not take a withdrawal. By deferring your withdrawals during a
SIR Bonus Period you will increase your Withdrawal Benefit
Base, which in turn may maximize your Annual Withdrawal Amount. After the SIR Bonus period is over, you will no longer be eligible for the 7% bonus each year and it may be in your interest to take the full
Annual Withdrawal Amount each year. However, any withdrawal will reduce your
Account Value as well as your chances of a higher Annual
Withdrawal Amount through step-up. When to take withdrawals will depend upon your own situation. You should discuss your living benefit options with your financial adviser. (For convenience, assume
that the investment performance of your underlying investments equals or
offsets all Contract expenses. Therefore, your Account Value
remains constant throughout the life of your Contract, except for Account Year 2.) | |||||
Assume that, because of good investment performance of the Designated Funds during Account Year 2, your Account
Value has grown to $125,000 by the beginning of Account Year 3. Your Contract
is, therefore, eligible for an automatic step-up of its
Withdrawal Benefit Base and SIR Bonus Base. Assume that we have not increased the percentage used to calculate the SIR Fee on newly issued Contracts; therefore we will step up your Withdrawal
Benefit Base and your SIR Bonus Base to $125,000. Your new Annual Withdrawal
Amount will be 5% of your new Withdrawal Benefit Base, or
$6,250. Going forward, your new SIR Bonus Base will be $125,000, unless increased by another step-up or reduced by an Excess Withdrawal, and your SIR Bonus Period will now end on your 12th Account
Anniversary (i.e., ten years after the step-up). All values shown are as of the beginning of the Account Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
SIR Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$5,000 |
$0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$5,350 |
$0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$6,250 |
$0 |
Assume you take your first withdrawal when you are age 71 in Account Year 7. Using the above chart, we set your
Lifetime Withdrawal Percentage at 5%. Your Annual Withdrawal Amount will be
equal to 5% of your Withdrawal Benefit Base. You can begin
withdrawing up to $8,000 each Account Year without reducing your Withdrawal Benefit Base, as shown in the following table: | |||||
4 |
$125,000 |
$133,750 |
$125,000 |
$6,688 |
$0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$7,125 |
$0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$7,563 |
$0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$8,000 |
$8,000 |
8 |
$117,000 |
$160,000 |
$125,000 |
$8,000 |
$8,000 |
Assume in Account Year 9, you defer taking a withdrawal. Your Withdrawal Benefit Base will increase by $8,750
which is 7% of your SIR Bonus Base ($125,000). Your new Annual Withdrawal
Amount will be set equal to $8,438, which is 5% of your new
Withdrawal Benefit Base ($168,750), as shown below: | |||||
9 |
$109,000 |
$160,000 |
$125,000 |
$8,000 |
$0 |
10 |
$109,000 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
Assume that in Account Year 14, you again decide to defer taking a withdrawal. Your Withdrawal Benefit Base will
not be increased because you are no longer in the SIR Bonus Period, as your
SIR Bonus Period ends 10 years after the previous
step-up. | |||||
11 |
$100,562 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
12 |
$ 92,124 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
13 |
$ 83,686 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
14 |
$ 75,248 |
$168,750 |
$125,000 |
$8,438 |
$0 |
15 |
$ 75,248 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
Your new SIR Bonus Base |
= |
BB x |
( |
AV - WD |
) |
AV - AWA | |||||
Your new Withdrawal Benefit Base |
= |
WBB x |
( |
AV - WD |
) |
AV - AWA |
|
|
|
BB |
= |
Your SIR Bonus Base immediately prior to the Excess Withdrawal. |
WBB |
= |
Your Withdrawal Benefit Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
AWA |
= |
Your Annual Withdrawal Amount minus any prior partial withdrawals taken during the current Account Year. |
Using the facts of the above example, assume that
in Account Year 7, you take two withdrawals: a $4,000 withdrawal
followed by a $6,000 withdrawal. Your first withdrawal reduces your Account
Value to $121,000 but does not affect your SIR Bonus Base or
Withdrawal Benefit Base because it is not in excess of your Annual Withdrawal Amount. Your second withdrawal (when combined with the first) is in excess of your $8,000 Annual Withdrawal Amount. After your second
withdrawal, your SIR Bonus Base and your Withdrawal Benefit Base will be
reduced as follows: | ||||
| ||||
Your new SIR Bonus Base |
= |
$125,000 |
x |
$121,000 - $6,000 |
$121,000 - ($8,000 - $4,000) | ||||
|
|
|
| |
= |
$125,000 |
x |
$115,000 | |
$117,000 | ||||
|
|
|
| |
= |
$125,000 |
x |
0.982906 | |
|
|
|
| |
= |
$122,863 |
|
| |
|
|
|
| |
Your new Withdrawal Benefit Base |
= |
$160,000 |
x |
$121,000 - $6,000 |
$121,000 - ($8,000 - $4,000) | ||||
|
|
|
| |
= |
$160,000 |
x |
$115,000 | |
$117,000 | ||||
|
|
|
| |
= |
$160,000 |
x |
0.982906 | |
|
|
|
| |
= |
$157,265 |
|
| |
Beginning on your Account Anniversary and going forward, your new Annual Withdrawal Amount will be reduced to
5% of your new Withdrawal Benefit Base, or $7,863. |
Your new SIR Bonus Base |
= |
BB x |
( |
AV - WD |
) |
AV | |||||
Your new Withdrawal Benefit Base |
= |
WBB x |
( |
AV - WD |
) |
AV |
BB |
= |
Your SIR Bonus Base immediately prior to the Early Withdrawal. |
WBB |
= |
Your Withdrawal Benefit Base immediately prior to the Early Withdrawal. |
WD |
= |
The amount of the Early Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early Withdrawal. |
Assume that you purchase a Contract with an initial Purchase Payment of $100,000. Assume also that you are age 45
when your Contract is issued and that you elected to participate in SIR with
single-life coverage. (If you selected joint-life coverage, the
numbers shown in the example could be different.) Your Withdrawal Benefit Base and your SIR Bonus Base are each set equal to your initial Purchase Payment on your Issue Date. Your Withdrawal Benefit
Base will increase by 7% of your SIR Bonus Base each year in which you do not
take a withdrawal. Your SIR Coverage Date will not occur until
your 15th Account Anniversary (the first Account Anniversary after you reach age 59). Any withdrawals you take prior to that time will be Early Withdrawals. | |||||
Assume that because of good investment performance of the Designated Funds during Account Year 2, your Account
Value has grown to $125,000 on your second Account Anniversary. Your Contract
is therefore eligible for an automatic step-up of its
Withdrawal Benefit Base and SIR Bonus Base. Assume that we have not increased the percentage used to calculate the SIR Fee on newly issued Contracts; therefore, we will step-up your Withdrawal
Benefit Base and your SIR Bonus Base to $125,000. |
|||||
Assume that, in Account Year 7, your Account Value has grown to $130,000 and you withdraw $10,000. Because you
are age 51 (and younger than age 59), this is an Early Withdrawal. All values shown are as of the beginning of the Account Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
SIR Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$0 |
$0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$0 |
$0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$0 |
$0 |
4 |
$125,000 |
$133,750 |
$125,000 |
$0 |
$0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$0 |
$0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$0 |
$0 |
7 |
$130,000 |
$160,000 |
$125,000 |
$0 |
$10,000 |
At this point, your SIR Bonus Base and your Withdrawal Benefit Base will be recalculated as follows: | ||||
| ||||
Your new SIR Bonus Base |
= |
$125,000 |
x |
$130,000 - $10,000 |
$130,000 | ||||
|
|
|
| |
= |
$125,000 |
x |
$120,000 | |
$130,000 | ||||
|
|
|
| |
= |
$125,000 |
x |
0.92308 | |
|
|
|
| |
= |
$115,385 |
|
| |
|
|
|
| |
Your new Withdrawal Benefit Base |
= |
$160,000 |
x |
$130,000 - $10,000 |
$130,000 | ||||
|
|
|
| |
= |
$160,000 |
x |
$120,000 | |
$130,000 | ||||
|
|
|
| |
= |
$160,000 |
x |
0.92308 | |
|
|
|
| |
= |
$147,693 |
|
| |
Your Annual Withdrawal Amount will still be $0 because you have not reached your SIR Coverage Date. |
Your Age at Step-up* |
Lifetime Withdrawal Percentage |
59 - 64 |
4% |
65 - 79 |
5% |
80 or older |
6% |
Assume that you purchased a Contract with an initial Purchase Payment of $100,000. Assume also that you are age
65 when your Contract is issued and that you elected to participate in SIR
with single-life coverage. (If you selected joint-life coverage
the numbers shown in the example could be different.) Assume that no withdrawals are taken and, therefore, your Withdrawal Benefit Base will increase annually by 7% of your SIR Bonus Base during your SIR
Bonus Period. Assume further that no additional Purchase Payments are made,
and, because of good investment performance of the Designated
Funds during Account Year 2, your Account Value has grown to $125,000 by the beginning of Account Year 3. Your Contract is, therefore, eligible for an automatic step-up of its Withdrawal Benefit
Base and SIR Bonus Base. Assume that we have not increased the percentage
used to calculate the SIR Fee on newly issued Contracts;
therefore we will step up your Withdrawal Benefit Base and your SIR Bonus Base to $125,000. Your new Annual Withdrawal Amount will be 5% of your new Withdrawal Benefit Base, or $6,250. All values shown are as of the beginning of the Account
Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit
Base |
SIR Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$5,000 |
0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$5,350 |
0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$6,250 |
0 |
4 |
$125,000 |
$133,750 |
$125,000 |
$6,688 |
0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$7,125 |
0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$7,563 |
0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$8,000 |
0 |
Going forward, your new SIR Bonus Base will be $125,000, unless increased by another step-up or reduced by an
Excess Withdrawal, and your SIR Bonus Period will now end on your 12th
Account Anniversary (i.e., ten years after the
step-up). |
Age of Younger Spouse on Date of the First Withdrawal After Your SIR Coverage Date |
Lifetime Withdrawal Percentage |
59 - 64 |
4% |
65 - 79 |
5% |
80 or older |
6% |
Type |
Fund |
Adviser/Subadviser |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/23) | ||
1 Year |
5 Year |
10 Year | ||||
Allocation - Moderate |
AB Variable Products Series Fund, Inc.
Balanced Hedged Allocation Portfolio
Class B8,10 |
AllianceBernstein, L.P. |
0.98%1 |
12.66% |
5.92% |
5.04% |
Equity - US Mid Cap |
AB Variable Products Series Fund, Inc.
Discovery Value Portfolio
Class B8 |
AllianceBernstein, L.P. |
1.06% |
16.86% |
10.51% |
7.29% |
Allocation - Cautious |
AB Variable Products Series Fund, Inc.
Dynamic Asset Allocation Portfolio
Class B8,10 |
AllianceBernstein, L.P. |
1.10%1 |
13.48% |
4.03% |
3.22% |
Equity - Global Large
Cap |
AB Variable Products Series Fund, Inc.
International Value Portfolio
Class B6,8 |
AllianceBernstein, L.P. |
1.15% |
14.83% |
5.55% |
1.83% |
Allocation - Moderate |
BlackRock Variable Series Funds, Inc.
BlackRock Global Allocation V.I. Fund Class
III8 |
BlackRock Advisors, LLC /
BlackRock (Singapore)
Limited, BlackRock
International Limited |
1.02%1 |
12.49% |
7.39% |
4.63% |
Equity - US Large Cap
Growth |
Columbia Funds Variable Series Trust II
Columbia Variable Portfolio – Large Cap
Growth Fund Class
13,9 |
Columbia Management
Investment Advisers, LLC |
0.72% |
43.16% |
18.29% |
13.65% |
Equity - US Large Cap
Growth |
Columbia Funds Variable Series Trust II
Columbia Variable Portfolio – Large Cap
Growth Fund Class 2 |
Columbia Management
Investment Advisers, LLC |
0.97% |
42.77% |
17.98% |
13.37% |
Equity - Global Large
Cap |
Columbia Funds Variable Series Trust II
Columbia Variable Portfolio – Overseas
Core Fund Class 2 |
Columbia Management
Investment Advisers, LLC /
Threadneedle International
Limited |
1.04% |
15.32% |
7.96% |
3.37% |
Equity - US Small Cap |
Columbia Funds Variable Insurance Trust
Columbia Variable Portfolio – Small Cap
Value Fund Class
24 |
Columbia Management
Investment Advisers, LLC |
1.11%1 |
21.67% |
13.39% |
8.40% |
Equity - US Large Cap
Growth |
Columbia Funds Variable Series Trust II
CTIVP®
– Principal Blue Chip Growth
Fund
Class 13,9 |
Columbia Management
Investment Advisers, LLC /
Principal Global Investors,
LLC |
0.70% |
39.54% |
15.67% |
13.48% |
Equity - US Large Cap
Growth |
Columbia Funds Variable Series Trust II
CTIVP®
– Principal Blue Chip Growth
Fund
Class 2 |
Columbia Management
Investment Advisers, LLC /
Principal Global Investors,
LLC |
0.95% |
39.20% |
15.38% |
13.20% |
Type |
Fund |
Adviser/Subadviser |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/23) | ||
1 Year |
5 Year |
10 Year | ||||
Allocation - Moderate |
Variable Insurance Products Fund III
Fidelity®
Variable Insurance Products Balanced
Portfolio Service Class 2
|
Fidelity Management &
Research Company, LLC /
FMR Investment Management
(UK) Limited, Fidelity
Management & Research
(Hong Kong) Limited,
Fidelity Management &
Research (Japan) Limited |
0.69% |
21.29% |
12.16% |
8.81% |
Equity - US Large Cap
Growth |
Variable Insurance Products Fund II
Fidelity®
Variable Insurance Products
Contrafund®
Portfolio Service Class 28 |
Fidelity Management &
Research Company, LLC /
FMR Investment Management
(UK) Limited, Fidelity
Management & Research
(Hong Kong) Limited,
Fidelity Management &
Research (Japan) Limited |
0.81% |
33.12% |
16.36% |
11.33% |
Allocation - Target
Date |
Variable Insurance Products Fund V
Fidelity®
Variable Insurance Products Freedom 2010
Portfolio Service Class 26 |
Fidelity Management &
Research Company, LLC |
0.65% |
9.18% |
5.28% |
4.30% |
Allocation - Target
Date |
Variable Insurance Products Fund V
Fidelity®
Variable Insurance Products Freedom 2015
Portfolio Service Class 2
|
Fidelity Management &
Research Company, LLC |
0.68% |
10.64% |
6.29% |
4.93% |
Allocation - Target
Date |
Variable Insurance Products Fund V
Fidelity®
Variable Insurance Products Freedom 2020
Portfolio Service Class 2
|
Fidelity Management &
Research Company, LLC |
0.72% |
12.22% |
7.22% |
5.48% |
Equity - US Mid Cap |
Variable Insurance Products Fund III
Fidelity®
Variable Insurance Products Mid Cap
Portfolio Service Class 2
|
Fidelity Management &
Research Company, LLC /
FMR Investment Management
(UK) Limited, Fidelity
Management & Research
(Hong Kong) Limited,
Fidelity Management &
Research (Japan) Limited |
0.82% |
14.80% |
12.17% |
7.85% |
Equity - International
All Cap |
First Eagle Variable Funds
First Eagle Overseas Variable Fund |
First Eagle Investment
Management, LLC |
1.21%1 |
10.08% |
5.78% |
3.68% |
Allocation - Moderate |
Franklin Templeton Variable Insurance
Products Trust
Franklin Allocation VIP Fund Class
27,8 |
Franklin Advisers, Inc. /
Templeton Global Advisors
Limited, Franklin Templeton
Institutional, LLC,
Brandywine Global
Investment Management,
LLC, ClearBridge
Investments, LLC, Western
Asset Management Company,
LLC, Western Asset
Management Company
Limited |
0.82%1 |
14.61% |
7.57% |
4.75% |
Allocation - Cautious |
Franklin Templeton Variable Insurance
Products Trust
Franklin Income VIP Fund Class 2 |
Franklin Advisers, Inc. |
0.71%1 |
8.62% |
6.98% |
5.01% |
Allocation - Aggressive |
Franklin Templeton Variable Insurance
Products Trust
Franklin Mutual Shares VIP Fund Class 2 |
Franklin Mutual Advisers,
LLC |
0.93% |
13.46% |
7.81% |
5.43% |
Type |
Fund |
Adviser/Subadviser |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/23) | ||
1 Year |
5 Year |
10 Year | ||||
Equity - US Small Cap |
Franklin Templeton Variable Insurance
Products Trust
Franklin Small Cap Value VIP Fund Class 2 |
Franklin Mutual Advisers,
LLC |
0.91%1 |
12.75% |
11.06% |
7.04% |
Fixed Income - US |
Franklin Templeton Variable Insurance
Products Trust
Franklin Strategic Income VIP Fund Class 2 |
Franklin Advisers, Inc. |
1.09%1 |
8.18% |
1.96% |
1.77% |
Equity - US Mid Cap |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. American Value Fund Series
II8 |
Invesco Advisers, Inc. |
1.14% |
15.29% |
12.45% |
6.98% |
Equity - US Large Cap
Growth |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. Capital Appreciation Fund Series II |
Invesco Advisers, Inc. |
1.05%1 |
35.03% |
16.10% |
11.28% |
Equity - US Large Cap
Value |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. Comstock Fund Series II |
Invesco Advisers, Inc. |
1.00% |
12.10% |
13.20% |
8.65% |
Allocation - Moderate |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. Equity and Income Fund Series II |
Invesco Advisers, Inc. |
0.82% |
10.24% |
9.64% |
6.78% |
Equity - Global Large
Cap |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. EQV International Equity
Fund
Series II8 |
Invesco Advisers, Inc. |
1.15% |
17.86% |
8.15% |
4.07% |
Equity - Global Large
Cap |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. Global Fund Series II |
Invesco Advisers, Inc. |
1.07% |
34.45% |
12.02% |
8.21% |
Equity - US Large Cap
Blend |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. Main Street Fund®
Series
II6 |
Invesco Advisers, Inc. |
1.05%1 |
22.83% |
13.28% |
9.74% |
Equity - US Small Cap |
AIM Variable Insurance Funds (Invesco
Variable Insurance Funds)
Invesco V.I. Main Street Small Cap Fund®
Series
II3 |
Invesco Advisers, Inc. |
1.13% |
17.82% |
12.79% |
8.66% |
Equity - Global
Emerging Markets |
Lazard Retirement Series, Inc.
Lazard Retirement Emerging Markets
Equity Portfolio
Service Shares8 |
Lazard Asset
Management LLC |
1.42% |
22.27% |
5.01% |
2.04% |
Fixed Income - US |
Lincoln Variable Insurance Products Trust
LVIP JPMorgan Core Bond Fund Service Class8 |
Lincoln Financial Investments
Corporation / J.P. Morgan
Investment Management, Inc. |
0.74% |
5.66% |
1.04% |
1.56% |
Equity - US Large Cap
Blend |
Lincoln Variable Insurance Products Trust
LVIP JPMorgan U.S. Equity Fund Service Class8 |
Lincoln Financial Investments
Corporation / J.P. Morgan
Investment Management, Inc. |
0.94% |
26.84% |
16.86% |
12.15% |
Equity - US Large Cap
Value |
Lord Abbett Series Fund, Inc.
Fundamental Equity Portfolio Class VC |
Lord, Abbett & Co. LLC |
1.08%1 |
14.63% |
9.70% |
7.00% |
Equity - US Mid Cap |
Lord Abbett Series Fund, Inc.
Growth Opportunities Portfolio
Class VC |
Lord, Abbett & Co. LLC |
1.16% |
10.67% |
8.60% |
7.12% |
Type |
Fund |
Adviser/Subadviser |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/23) | ||
1 Year |
5 Year |
10 Year | ||||
Equity - US Large Cap
Blend |
MFS® Variable Insurance Trust
II MFS®
Blended Research® Core Equity Portfolio Service Class3 |
Massachusetts Financial
Services Company |
0.68%1 |
28.20% |
15.53% |
10.82% |
Equity - US Small Cap |
MFS® Variable Insurance Trust
III MFS®
Blended Research® Small Cap Equity Portfolio Service Class |
Massachusetts Financial
Services Company |
0.76%1 |
18.67% |
10.01% |
8.00% |
Allocation - Cautious |
MFS® Variable Insurance Trust
III MFS®
Conservative Allocation Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
0.93% |
10.03% |
5.30% |
4.28% |
Equity - US Large Cap
Blend |
MFS® Variable Insurance Trust
II MFS®
Core Equity Portfolio Service
Class |
Massachusetts Financial
Services Company |
1.06%1 |
22.79% |
14.79% |
11.33% |
Fixed Income - US |
MFS® Variable Insurance Trust
II MFS®
Corporate Bond Portfolio Service
Class |
Massachusetts Financial
Services Company |
0.88%1 |
8.89% |
2.43% |
2.56% |
Equity - Global
Emerging Markets |
MFS® Variable Insurance Trust
II MFS®
Emerging Markets Equity
Portfolio
Service Class |
Massachusetts Financial
Services Company |
1.48%1 |
10.71% |
1.79% |
1.31% |
Equity - Global Large
Cap |
MFS® Variable Insurance Trust
II MFS®
Global Growth Portfolio Service
Class2 |
Massachusetts Financial
Services Company |
1.13%1 |
20.69% |
13.48% |
9.79% |
Equity - Real Estate
Sector |
MFS® Variable Insurance Trust
III MFS®
Global Real Estate Portfolio Initial
Class2 |
Massachusetts Financial
Services Company |
0.90%1 |
11.46% |
6.41% |
6.55% |
Equity - Real Estate
Sector |
MFS® Variable Insurance Trust
III MFS®
Global Real Estate Portfolio Service
Class |
Massachusetts Financial
Services Company |
1.15%1 |
11.20% |
6.16% |
6.28% |
Equity - Global Large
Cap |
MFS® Variable Insurance Trust
II MFS®
Global Research Portfolio Service
Class3 |
Massachusetts Financial
Services Company |
1.10%1 |
18.97% |
12.05% |
7.89% |
Allocation - Cautious |
MFS® Variable Insurance Trust
II MFS®
Global Tactical Allocation Portfolio
Service Class8 |
Massachusetts Financial
Services Company |
1.08%1 |
9.35% |
4.69% |
3.62% |
Fixed Income - US |
MFS® Variable Insurance Trust
II MFS®
Government Securities Portfolio Service
Class |
Massachusetts Financial
Services Company |
0.83%1 |
3.86% |
0.08% |
0.81% |
Allocation - Aggressive |
MFS® Variable Insurance Trust
III MFS®
Growth Allocation Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
1.05% |
15.03% |
9.64% |
7.26% |
Equity - US Large Cap
Growth |
MFS® Variable Insurance
Trust MFS®
Growth Series Service Class
|
Massachusetts Financial
Services Company |
0.98%1 |
35.51% |
15.59% |
12.69% |
Fixed Income - US |
MFS® Variable Insurance Trust
II MFS®
High Yield Portfolio Service
Class |
Massachusetts Financial
Services Company |
0.97%1 |
12.48% |
4.42% |
3.58% |
Fixed Income - US |
MFS® Variable Insurance Trust
II MFS®
Income Portfolio Service Class2 |
Massachusetts Financial
Services Company |
0.92%1 |
7.36% |
2.37% |
2.42% |
Fixed Income - US |
MFS® Variable Insurance Trust
III MFS®
Inflation-Adjusted Bond Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
0.82%1 |
2.46% |
-0.11% |
0.27% |
Equity - Global Large
Cap |
MFS® Variable Insurance Trust
II MFS®
International Growth Portfolio Service
Class |
Massachusetts Financial
Services Company |
1.13%1 |
14.39% |
9.20% |
6.09% |
Type |
Fund |
Adviser/Subadviser |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/23) | ||
1 Year |
5 Year |
10 Year | ||||
Equity - Global Large
Cap |
MFS® Variable Insurance Trust
II MFS®
International Intrinsic Value
Portfolio
Service Class |
Massachusetts Financial
Services Company |
1.14%1 |
17.37% |
8.31% |
6.66% |
Fixed Income - US |
MFS® Variable Insurance Trust
III MFS®
Limited Maturity Portfolio Initial
Class5 |
Massachusetts Financial
Services Company |
0.45%1 |
6.08% |
2.25% |
1.72% |
Fixed Income - US |
MFS® Variable Insurance Trust
III MFS®
Limited Maturity Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
0.70%1 |
5.77% |
2.01% |
1.47% |
Equity - US Large Cap
Growth |
MFS® Variable Insurance Trust
II MFS®
Massachusetts Investors Growth Stock
Portfolio Service Class3 |
Massachusetts Financial
Services Company |
0.98%1 |
23.70% |
16.39% |
12.44% |
Equity - US Mid Cap |
MFS® Variable Insurance
Trust MFS®
Mid Cap Growth Series Service Class8 |
Massachusetts Financial
Services Company |
1.05%1 |
20.97% |
13.05% |
10.85% |
Equity - US Mid Cap |
MFS® Variable Insurance Trust
III MFS®
Mid Cap Value Portfolio Initial
Class5 |
Massachusetts Financial
Services Company |
0.79%1 |
12.73% |
12.90% |
8.73% |
Equity - US Mid Cap |
MFS® Variable Insurance Trust
III MFS®
Mid Cap Value Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
1.04%1 |
12.39% |
12.60% |
8.46% |
Allocation - Moderate |
MFS® Variable Insurance Trust
III MFS®
Moderate Allocation Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
0.97% |
12.64% |
7.68% |
5.94% |
Equity - US Small Cap |
MFS® Variable Insurance
Trust MFS®
New Discovery Series Service Class8 |
Massachusetts Financial
Services Company |
1.12%1 |
14.25% |
10.81% |
7.41% |
Equity - US Small Cap |
MFS® Variable Insurance Trust
III MFS®
New Discovery Value Portfolio Service
Class8 |
Massachusetts Financial
Services Company |
1.13%1 |
11.22% |
12.84% |
9.05% |
Equity - Global Large
Cap |
MFS® Variable Insurance Trust
II MFS®
Research International Portfolio Service
Class |
Massachusetts Financial
Services Company |
1.14%1 |
12.83% |
8.23% |
3.89% |
Equity - US Large Cap
Blend |
MFS® Variable Insurance
Trust MFS®
Research Series Service Class
|
Massachusetts Financial
Services Company |
1.04%1 |
22.12% |
14.13% |
10.55% |
Fixed Income - US |
MFS® Variable Insurance
Trust MFS®
Total Return Bond Series Service
Class8 |
Massachusetts Financial
Services Company |
0.78%1 |
7.13% |
1.58% |
1.96% |
Allocation - Moderate |
MFS® Variable Insurance
Trust MFS®
Total Return Series Service
Class |
Massachusetts Financial
Services Company |
0.86%1 |
10.22% |
8.27% |
6.27% |
US Money Market |
MFS® Variable Insurance Trust
II MFS®
U.S. Government Money Market
Portfolio
Service Class11 |
Massachusetts Financial
Services Company |
0.44%1 |
4.58% |
1.51% |
0.91% |
Equity - Utilities
Sector |
MFS® Variable Insurance
Trust MFS®
Utilities Series Service
Class |
Massachusetts Financial
Services Company |
1.04%1 |
-2.33% |
8.05% |
6.13% |
Equity - US Large Cap
Value |
MFS® Variable Insurance
Trust MFS®
Value Series Initial Class5 |
Massachusetts Financial
Services Company |
0.69%1 |
7.93% |
11.34% |
8.52% |
Equity - US Large Cap
Value |
MFS® Variable Insurance
Trust MFS®
Value Series Service Class
|
Massachusetts Financial
Services Company |
0.94%1 |
7.63% |
11.07% |
8.25% |
Type |
Fund |
Adviser/Subadviser |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/23) | ||
1 Year |
5 Year |
10 Year | ||||
Equity - US Mid Cap |
Morgan Stanley Variable Insurance Fund,
Inc.
Discovery Portfolio
Class II8 |
Morgan Stanley Investment
Management, Inc. |
1.05%1 |
44.13% |
10.83% |
8.38% |
Equity - US Large Cap
Growth |
Morgan Stanley Variable Insurance Fund,
Inc.
Growth Portfolio
Class II8 |
Morgan Stanley Investment
Management, Inc. |
0.82%1 |
48.32% |
10.95% |
11.62% |
Allocation - Moderate |
PIMCO Variable Insurance Trust
PIMCO All Asset Portfolio
Administrative Class |
Pacific Investment
Management Company LLC /
Research Affiliates, LLC |
2.19%1 |
8.14% |
6.02% |
4.04% |
Commodities Broad
Basket |
PIMCO Variable Insurance Trust
PIMCO CommodityRealReturn® Strategy Portfolio Administrative Class |
Pacific Investment
Management Company LLC |
1.48%1 |
-7.85% |
8.55% |
-0.80% |
Fixed Income -
Emerging Markets |
PIMCO Variable Insurance Trust
PIMCO Emerging Markets Bond
Portfolio
Administrative Class |
Pacific Investment
Management Company LLC |
1.27%1 |
11.11% |
2.25% |
2.78% |
Allocation - Moderate |
PIMCO Variable Insurance Trust
PIMCO Global Managed Asset Allocation
Portfolio
Advisor Class8 |
Pacific Investment
Management Company LLC |
1.34%1 |
12.85% |
7.20% |
5.14% |
Fixed Income - US |
PIMCO Variable Insurance Trust
PIMCO Real Return Portfolio
Administrative Class6 |
Pacific Investment
Management Company LLC |
0.84%1 |
3.67% |
3.16% |
2.25% |
Equity - Global Large
Cap |
PIMCO Equity Series VIT
PIMCO StocksPLUS®
Global Portfolio Advisor Class8 |
Pacific Investment
Management Company LLC |
0.91%1 |
22.84% |
11.41% |
6.42% |
Fixed Income - US |
PIMCO Variable Insurance Trust
PIMCO Total Return Portfolio
Administrative Class6 |
Pacific Investment
Management Company LLC |
0.75%1 |
5.93% |
1.08% |
1.71% |
Equity - US Large Cap
Value |
Putnam Variable Trust
Putnam VT Large Cap Value Fund Class
IB8 |
Putnam Investment
Management, LLC / Putnam
Investments Limited |
0.82% |
15.67% |
14.50% |
10.26% |
Equity - Global
Emerging Markets |
Franklin Templeton Variable Insurance
Products Trust
Templeton Developing Markets VIP Fund Class
25 |
Templeton Asset Management
Ltd. / Franklin Templeton
Investment Management
Limited |
1.35%1 |
12.62% |
4.22% |
2.32% |
Equity - Global Large
Cap |
Franklin Templeton Variable Insurance
Products Trust
Templeton Foreign VIP Fund Class
25 |
Templeton Investment
Counsel, LLC |
1.07%1 |
20.76% |
5.27% |
1.28% |
Fixed Income - Global |
Franklin Templeton Variable Insurance
Products Trust
Templeton Global Bond VIP Fund Class
48 |
Franklin Advisers, Inc. |
0.85%1 |
2.82% |
-2.23% |
-0.76% |
Equity - Global Large
Cap |
Franklin Templeton Variable Insurance
Products Trust
Templeton Growth VIP Fund Class 2 |
Templeton Global Advisors
Limited / Templeton Asset
Management Ltd |
1.12%1 |
21.01% |
6.47% |
3.24% |
Equity - US Small Cap |
Wanger Advisors Trust
Wanger Acorn4 |
Columbia Wanger Asset
Management, LLC |
0.95%1 |
21.74% |
7.51% |
7.20% |
30% to 50% |
40% to 60% |
10% to 30% |
0% to 20% |
0% to 20% |
0% to 10% |
MFS® Total Return
Bond Series |
AB Dynamic Asset
Allocation Portfolio |
AB Balanced Hedged
Allocation Portfolio |
Lord Abbett Series
Fund, Inc.
- Fundamental Equity
Portfolio |
Franklin Small Cap
Value VIP
Fund |
Franklin Strategic
Income VIP
Fund |
MFS® Government
Securities Portfolio |
PIMCO Global
Managed Asset
Allocation Portfolio |
Fidelity® Balanced
Portfolio (of Variable
Insurance Products
Fund
III) |
MFS® Value Series |
MFS® Blended
Research Small Cap
Equity Portfolio |
PIMCO Emerging
Markets Bond Portfolio |
MFS® Corporate Bond
Portfolio |
MFS® Global Tactical
Allocation Portfolio |
Franklin Income VIP
Fund |
Invesco V.I. Comstock
Fund |
Invesco V.I. Capital
Appreciation
Fund |
MFS® Global Real
Estate Portfolio |
MFS® U.S. Government
Money Market Portfolio |
MFS® Moderate
Allocation Portfolio |
MFS® Total Return
Series |
Franklin Mutual Shares
VIP
Fund |
Lord Abbett Series
Fund, Inc.
- Growth Opportunities Portfolio |
PIMCO
CommodityRealReturn®
Strategy Portfolio |
MFS® Limited Maturity
Portfolio |
MFS® Conservative
Allocation Portfolio |
Invesco V.I. Equity and
Income
Fund |
MFS® Utilities Series |
MFS® International
Intrinsic Value Portfolio |
MFS® Emerging
Markets Equity
Portfolio |
MFS® Inflation-
Adjusted Bond
Portfolio |
PIMCO All Asset
Portfolio |
Fidelity® Freedom 2015
Portfolio (of Variable
Insurance Products
Fund
IV) |
MFS® Core Equity
Portfolio |
MFS® Research
International Portfolio |
MFS® High Yield
Portfolio |
LVIP JPMorgan Core
Bond Portfolio |
|
Fidelity® Freedom 2020
Portfolio (of Variable
Insurance Products
Fund
IV) |
MFS® Research Series |
Templeton Growth VIP
Fund |
Lazard Retirement
Emerging Markets
Equity Portfolio |
|
|
MFS® Growth
Allocation Portfolio |
MFS® Mid Cap Value
Portfolio |
First Eagle Overseas
Variable
Fund |
Templeton Global Bond
VIP
Fund |
|
|
BlackRock Global
Allocation V.I. Fund |
LVIP JPMorgan
U.S. Equity Portfolio |
Invesco V.I. Global
Fund |
|
|
|
|
Putnam VT Large Cap
Value
Fund |
Columbia Variable
Portfolio - Overseas
Core
Fund |
|
|
|
|
|
Fidelity® Mid Cap
Portfolio (of Variable
Insurance Products
Fund
III) |
|
|
|
|
|
MFS® International
Growth Portfolio |
|
|
|
|
|
MFS® Growth Series |
|
|
|
|
|
CTIVP® - Principal
Blue Chip Growth Fund |
|
|
|
|
|
Columbia Variable
Portfolio - Large Cap
Growth
Fund |
|
|
|
|
|
MFS® Mid Cap Growth
Series |
|
|
|
|
|
Morgan Stanley
Variable Insurance
Fund, Inc.
Discovery Portfolio |
|
|
|
|
|
Invesco V.I. American
Value
Fund |
|
|
|
|
|
Fidelity® Contrafund®
Portfolio (of Variable
Insurance Products
Fund
II) |
|
30% to 50% |
40% to 60% |
10% to 30% |
0% to 20% |
0% to 20% |
0% to 10% |
|
|
|
|
MFS® New Discovery
Value Portfolio |
|
|
|
|
|
MFS® New Discovery
Series |
|
|
|
|
|
AB Discovery Value
Portfolio |
|
|
|
|
|
Invesco V.I. EQV
International Equity
Fund |
|
|
|
|
|
PIMCO StocksPLUS®
Global Portfolio |
|
|
|
|
|
Morgan Stanley
Variable Insurance
Fund, Inc.
Growth Portfolio |
|
30% to 80% |
20% to 70% |
0% to 50% |
0% to 30% |
0% to 10% |
MFS® Total Return Bond
Series |
AB Balanced Hedged
Allocation Portfolio |
Lord Abbett Series Fund,
Inc. - Fundamental Equity
Portfolio |
Franklin Small Cap Value
VIP
Fund |
Franklin Strategic Income
VIP
Fund |
MFS® Government
Securities Portfolio |
Fidelity® Balanced Portfolio
(of Variable Insurance
Products
Fund III) |
MFS® Value Series |
MFS® Blended Research
Small Cap Equity Portfolio |
PIMCO Emerging Markets
Bond Portfolio |
MFS® Corporate Bond
Portfolio |
Franklin Income VIP Fund |
Invesco V.I. Comstock Fund |
Invesco V.I. Capital
Appreciation
Fund |
MFS® Global Real Estate
Portfolio |
MFS® U.S. Government
Money Market Portfolio |
MFS® Total Return Series |
Franklin Mutual Shares VIP
Fund |
Lord Abbett Series Fund,
Inc. - Growth Opportunities
Portfolio |
PIMCO Commodity
RealReturn® Strategy
Portfolio |
MFS® Limited Maturity
Portfolio |
Invesco V.I. Equity and
Income
Fund |
MFS® Utilities Series |
MFS® International Intrinsic
Value Portfolio |
MFS® Emerging Markets
Equity Portfolio |
MFS® Inflation-Adjusted
Bond Portfolio |
Fidelity® Freedom 2015
Portfolio (of Variable
Insurance Products Fund IV) |
MFS® Core Equity Portfolio |
MFS® Research
International Portfolio |
MFS® High Yield Portfolio |
LVIP JPMorgan Core Bond
Portfolio |
Fidelity® Freedom 2020
Portfolio (of Variable
Insurance Products Fund IV) |
MFS® Research Series |
Templeton Growth VIP Fund |
Lazard Retirement Emerging
Markets Equity Portfolio |
|
MFS® Moderate Allocation
Portfolio |
MFS® Mid Cap Value
Portfolio |
First Eagle Overseas Variable
Fund |
PIMCO All Asset Portfolio |
|
MFS® Conservative
Allocation Portfolio |
LVIP JPMorgan U.S. Equity
Portfolio |
Invesco V.I. Global Fund |
Templeton Global Bond VIP
Fund |
|
MFS® Growth Allocation
Portfolio |
Putnam VT Large Cap Value
Fund |
Columbia Variable Portfolio
- Overseas Core Fund |
|
|
BlackRock Global
Allocation V.I. Fund |
|
Fidelity® Mid Cap Portfolio
(of Variable Insurance
Products
Fund III) |
|
|
PIMCO Global Managed
Asset Allocation Portfolio |
|
MFS® International Growth
Portfolio |
|
|
MFS® Global Tactical
Allocation Portfolio |
|
MFS® Growth Series |
|
|
AB Dynamic Asset
Allocation Portfolio |
|
CTIVP® - Principal Blue
Chip Growth
Fund |
|
|
|
|
Columbia Variable Portfolio
- Large Cap Growth Fund |
|
|
|
|
MFS® Mid Cap Growth
Series |
|
|
|
|
Morgan Stanley Variable
Insurance
Fund, Inc.
Discovery Portfolio |
|
|
|
|
Invesco V.I. American Value
Fund |
|
|
|
|
Fidelity® Contrafund®
Portfolio (of Variable
Insurance Products Fund II) |
|
|
|
|
MFS® New Discovery Value
Portfolio |
|
|
|
|
MFS® New Discovery Series |
|
|
|
|
AB Discovery Value
Portfolio |
|
|
|
|
Invesco V.I. EQV
International Equity Fund |
|
30% to 80% |
20% to 70% |
0% to 50% |
0% to 30% |
0% to 10% |
|
|
|
PIMCO StocksPLUS®
Global Portfolio |
|
|
|
|
Morgan Stanley Variable
Insurance
Fund, Inc. Growth
Portfolio |
|
30% to 80% |
0% to 70% |
0% to 70% |
0% to 30% |
0% to 10% |
MFS® Total Return Bond
Series |
AB Balanced Hedged
Allocation Portfolio |
Lord Abbett Series Fund,
Inc. - Fundamental Equity
Portfolio |
Franklin Small Cap Value
VIP
Fund |
Franklin Strategic Income
VIP
Fund |
MFS® Government
Securities Portfolio |
Fidelity® Balanced Portfolio
(of Variable Insurance
Products
Fund III) |
MFS® Value Series |
MFS® Blended Research
Small Cap Equity Portfolio |
PIMCO Emerging Markets
Bond Portfolio |
MFS® Corporate Bond
Portfolio |
Franklin Income VIP Fund |
Invesco V.I. Comstock Fund |
Invesco V.I. Capital
Appreciation
Fund |
MFS® Global Real Estate
Portfolio |
MFS® U.S. Government
Money Market Portfolio |
MFS® Total Return Series |
Franklin Mutual Shares VIP
Fund |
Lord Abbett Series Fund,
Inc. - Growth Opportunities
Portfolio |
PIMCO Commodity
RealReturn® Strategy
Portfolio |
MFS® Limited Maturity
Portfolio |
Invesco V.I. Equity and
Income
Fund |
MFS® Utilities Series |
MFS® International Intrinsic
Value Portfolio |
MFS® Emerging Markets
Equity Portfolio |
MFS® Inflation-Adjusted
Bond Portfolio |
Fidelity® Freedom 2015
Portfolio (of Variable
Insurance Products Fund IV) |
MFS® Core Equity Portfolio |
MFS® Research
International Portfolio |
MFS® High Yield Portfolio |
LVIP JPMorgan Core Bond
Portfolio |
Fidelity® Freedom 2020
Portfolio (of Variable
Insurance Products Fund IV) |
MFS® Research Series |
Templeton Growth VIP Fund |
Lazard Retirement Emerging
Markets Equity Portfolio |
|
MFS® Moderate Allocation
Portfolio |
MFS® Mid Cap Value
Portfolio |
First Eagle Overseas Variable
Fund |
PIMCO All Asset Portfolio |
|
MFS® Conservative
Allocation Portfolio |
LVIP JPMorgan U.S. Equity
Portfolio |
Invesco V.I. Global Fund |
Templeton Global Bond VIP
Fund |
|
MFS® Growth Allocation
Portfolio |
Putnam VT Large Cap Value
Fund |
Columbia Variable Portfolio
- Overseas Core Fund |
|
|
BlackRock Global
Allocation V.I. Fund |
|
Fidelity® Mid Cap Portfolio
(of Variable Insurance
Products
Fund III) |
|
|
PIMCO Global Managed
Asset Allocation Portfolio |
|
MFS® International Growth
Portfolio |
|
|
MFS® Global Tactical
Allocation Portfolio |
|
MFS® Growth Series |
|
|
AB Dynamic Asset
Allocation Portfolio |
|
CTIVP® - Principal Blue
Chip Growth
Fund |
|
|
|
|
Columbia Variable Portfolio
- Large Cap Growth Fund |
|
|
|
|
MFS® Mid Cap Growth
Series |
|
|
|
|
Morgan Stanley Variable
Insurance
Fund, Inc.
Discovery Portfolio |
|
|
|
|
Invesco V.I. American Value
Fund |
|
|
|
|
Fidelity® Contrafund®
Portfolio (of Variable
Insurance Products Fund II) |
|
|
|
|
MFS® New Discovery Value
Portfolio |
|
|
|
|
MFS® New Discovery Series |
|
|
|
|
AB Discovery Value
Portfolio |
|
|
|
|
Invesco V.I. EQV
International Equity Fund |
|
30% to 80% |
0% to 70% |
0% to 70% |
0% to 30% |
0% to 10% |
|
|
|
PIMCO StocksPLUS®
Global Portfolio |
|
|
|
|
Morgan Stanley Variable
Insurance
Fund, Inc. Growth
Portfolio |
|
25% to 80% |
0% to 75% |
0% to 75% |
0% to 30% |
0% to 10% |
PIMCO Total Return
Portfolio6 |
AB Balanced Hedged
Allocation Portfolio7 |
Lord Abbett Series Fund,
Inc. - Fundamental Equity
Portfolio |
Franklin Small Cap Value
VIP
Fund |
Franklin Strategic Income
VIP
Fund |
MFS® Total Return Bond
Series7 |
Fidelity® Balanced Portfolio
(of Variable Insurance
Products
Fund III) |
MFS® Value Series |
MFS® Blended Research
Small Cap Equity Portfolio |
MFS® High Yield Portfolio7 |
MFS® Government
Securities Portfolio |
Franklin Income VIP Fund |
Invesco V.I. Comstock Fund |
Invesco V.I. Capital
Appreciation
Fund |
PIMCO Emerging Markets
Bond Portfolio |
MFS® Corporate Bond
Portfolio |
Franklin Allocation VIP
Fund7 |
Franklin Mutual Shares VIP
Fund |
Lord Abbett Series Fund,
Inc. - Growth Opportunities
Portfolio |
MFS® Global Real Estate
Portfolio |
PIMCO Real Return
Portfolio6 |
MFS® Total Return Series |
MFS® Utilities Series |
Invesco V.I. Main Street
Small Cap
Fund®2
|
PIMCO Commodity
RealReturn® Strategy
Portfolio |
MFS® U.S. Government
Money Market Portfolio |
Invesco V.I. Equity and
Income
Fund |
MFS® Blended Research®
Core Equity Portfolio2 |
MFS® New Discovery Series |
Templeton Developing
Markets VIP
Fund5 |
MFS® Limited Maturity
Portfolio7 |
Fidelity® Freedom 2010
Portfolio (of Variable
Insurance Products Fund
IV)6 |
MFS® Global Research
Portfolio2 |
MFS® Mass Investors
Growth Stock Portfolio2 |
MFS® Emerging Markets
Equity Portfolio |
MFS® Inflation-Adjusted
Bond Portfolio7 |
Fidelity® Freedom 2015
Portfolio (of Variable
Insurance Products Fund IV) |
MFS® Core Equity Portfolio |
MFS® International Intrinsic
Value Portfolio |
MFS® Income Portfolio1 |
LVIP JPMorgan Core Bond
Portfolio7 |
Fidelity® Freedom 2020
Portfolio (of Variable
Insurance Products Fund IV) |
MFS® Research Series |
Templeton Foreign VIP
Fund5 |
Lazard Retirement Emerging
Markets Equity Portfolio7 |
|
MFS® Moderate Allocation
Portfolio7 |
Invesco V.I. Main St.Fund®6 |
MFS® Research
International Portfolio |
PIMCO All Asset Portfolio |
|
MFS® Conservative
Allocation Portfolio7 |
MFS® Mid Cap Value
Portfolio7 |
Templeton Growth VIP Fund |
Templeton Global Bond VIP
Fund7 |
|
MFS® Growth Allocation
Portfolio7 |
LVIP JPMorgan U.S. Equity
Portfolio7 |
First Eagle Overseas Variable
Fund |
|
|
BlackRock Global
Allocation V.I. Fund7 |
Putnam VT Large Cap Value
Fund7 |
Invesco V.I. Global Fund |
|
|
PIMCO Global Managed
Asset Allocation Portfolio7 |
|
Columbia Variable Portfolio
- Overseas Core Fund |
|
|
MFS® Global Tactical
Allocation Portfolio7 |
|
Fidelity® Mid Cap Portfolio
(of Variable Insurance
Products
Fund III) |
|
|
AB Dynamic Asset
Allocation Portfolio7 |
|
Wanger Acorn3 |
|
|
|
|
Columbia Variable Portfolio
- Small Cap Value Fund3 |
|
|
|
|
MFS® International Growth
Portfolio |
|
|
|
|
MFS® Growth Series |
|
|
|
|
CTIVP® - Principal Blue
Chip Growth
Fund4 |
|
25% to 80% |
0% to 75% |
0% to 75% |
0% to 30% |
0% to 10% |
|
|
|
Columbia Variable Portfolio
- Large Cap Growth Fund4 |
|
|
|
|
MFS® Global Growth
Portfolio1 |
|
|
|
|
MFS® Mid Cap Growth
Series7 |
|
|
|
|
Morgan Stanley Variable
Insurance
Fund, Inc.
Discovery |
|
|
|
|
Invesco V.I. American Value
Fund7 |
|
|
|
|
AB International Value
Portfolio6, 7 |
|
|
|
|
Fidelity® Contrafund®
Portfolio (of Variable
Insurance Products Fund II)7 |
|
|
|
|
MFS® New Discovery Value
Portfolio7 |
|
|
|
|
AB Discovery Value
Portfolio7 |
|
|
|
|
Invesco V.I. EQV
International Equity Fund7 |
|
|
|
|
PIMCO StocksPLUS®
Global Portfolio7 |
|
|
|
|
Morgan Stanley Variable
Insurance
Fund, Inc. Growth
Portfolio7 |
|
|
Account Year |
Hypothetical Account
Value |
Annual Earnings |
Cumulative Annual
Earnings |
Free Withdrawal
Amount |
Purchase Payment Amount Subject
to Withdrawal Charge |
Withdrawal Charge
Percentage |
Withdrawal Charge
Amount |
(a) |
1 |
$41,000 |
$1,000 |
$1,000 |
$6,000 |
$35,000 |
8.00% |
$2,800 |
|
2 |
$45,100 |
$4,100 |
$5,100 |
$6,000 |
$39,100 |
8.00% |
$3,128 |
|
3 |
$49,600 |
$4,500 |
$9,600 |
$9,600 |
$40,000 |
7.00% |
$2,800 |
(b) |
4 |
$52,100 |
$2,500 |
$12,100 |
$12,100 |
$40,000 |
6.00% |
$2,400 |
|
5 |
$57,300 |
$5,200 |
$17,300 |
$17,300 |
$40,000 |
5.00% |
$2,000 |
|
6 |
$63,000 |
$5,700 |
$23,000 |
$23,000 |
$40,000 |
4.00% |
$1,600 |
|
7 |
$66,200 |
$3,200 |
$26,200 |
$26,200 |
$40,000 |
3.00% |
$1,200 |
(c) |
8 |
$72,800 |
$6,600 |
$32,800 |
$32,800 |
$0
|
0.00% |
$0
|
|
Account Year |
Hypothetical Account
Value Before
Withdrawal |
Earnings |
Cumulative Earnings |
Amount of Withdrawal |
Remaining Free
Withdrawal Amount
After Withdrawal |
Amount of Withdrawal
Subject to Withdrawal
Charge |
Withdrawal Charge
Percentage |
Withdrawal Charge
Amount |
Hypo-
thetical Account
Value After
With- drawal |
|
1 |
$41,000 |
$1,000 |
$1,000 |
$0 |
$6,000 |
$0 |
8.00% |
$0 |
$41,000 |
|
2 |
$45,100 |
$4,100 |
$5,100 |
$0 |
$6,000 |
$0 |
8.00% |
$0 |
$45,100 |
|
3 |
$49,600 |
$4,500 |
$9,600 |
$0 |
$9,600 |
$0 |
7.00% |
$0 |
$49,600 |
|
Account Year |
Hypothetical Account
Value Before
Withdrawal |
Earnings |
Cumulative Earnings |
Amount of Withdrawal |
Remaining Free
Withdrawal Amount
After Withdrawal |
Amount of Withdrawal
Subject to Withdrawal
Charge |
Withdrawal Charge
Percentage |
Withdrawal Charge
Amount |
Hypo-
thetical Account
Value After
With- drawal |
(a) |
4 |
$50,100 |
$500 |
$10,100 |
$4,000 |
$6,100 |
$0 |
6.00% |
$0 |
$46,100 |
(b) |
4 |
$46,900 |
$800 |
$10,900 |
$9,000 |
$0 |
$2,100 |
6.00% |
$126 |
$37,900 |
(c) |
4 |
$38,500 |
$600 |
$11,500 |
$12,000 |
$0 |
$11,400 |
6.00% |
$684 |
$26,500 |
(d) |
4 |
$26,900 |
$400 |
$11,900 |
$20,000 |
$0 |
$19,600 |
6.00% |
$1,176 |
$6,900 |
( |
1+I |
) |
N/12 |
-1 |
1+J+b |
The MVA factor |
= |
( |
1+I |
) |
N/12 |
-1 |
1+J+b | ||||||
|
|
|
|
|
|
|
|
= |
( |
1+.06 |
) |
24/12 |
-1 |
1+.05 | ||||||
|
|
|
|
|
|
|
|
= |
( |
1.010 |
) |
2 |
-1 |
|
|
|
|
|
|
|
|
= |
|
1.019 - 1 |
|
|
|
|
|
|
|
|
|
|
|
= |
|
.019 |
|
|
|
|
Account
Year |
Purchase
Payments |
Hypothetical
Account Value before
Withdrawal |
Contract
Earnings (Above
#1) |
15% of
Purchase Payments
(Above #2) |
Free
Amount before
Withdrawal |
Amount of
Withdrawals |
Remaining Free
Withdrawal Amount After
Withdrawal |
Hypothetical Account Value
after Withdrawal |
|
1 |
$100,000 |
$101,000 |
$1,000 |
$15,000 |
$15,000 |
$0 |
$15,000 |
$101,000 |
|
2 |
$0 |
$101,000 |
$1,000 |
$15,000 |
$15,000 |
$0 |
$15,000 |
$101,000 |
|
3 |
$0 |
$109,000 |
$9,000 |
$15,000 |
$15,000 |
$0 |
$15,000 |
$109,000 |
(a) |
4 |
$0 |
$117,000 |
$17,000 |
$15,000 |
$17,000 |
$17,000 |
$0 |
$100,000 |
(b) |
4 |
$40,000 |
$141,000 |
$1,000 |
$4,000 |
$4,000 |
$0 |
$4,000 |
$141,000 |
|
5 |
$0 |
$142,000 |
$2,000 |
$21,000 |
$21,000 |
$0 |
$21,000 |
$142,000 |
|
6 |
$0 |
$135,000 |
$0 |
$21,000 |
$21,000 |
$0 |
$21,000 |
$135,000 |
|
7 |
$0 |
$140,000 |
$0 |
$21,000 |
$21,000 |
$0 |
$21,000 |
$140,000 |
(c) |
8 |
$0 |
$143,000 |
$3,000 |
$6,000 |
$6,000 |
$0 |
$6,000 |
$143,000 |
(d) |
8 |
$20,000 |
$165,000 |
$5,000 |
$9,000 |
$9,000 |
$0 |
$9,000 |
$165,000 |
(e) |
8 |
$0
|
$159,000 |
$0
|
$9,000
|
$9,000
|
$9,000
|
$0
|
$150,000 |
Account Value |
= |
$135,000 |
Cash Surrender Value |
= |
$135,000 |
Total of Adjusted Purchase Payments |
= |
$100,000 |
5% Premium Roll-Up Value* |
= |
$145,000 |
The Death Benefit Amount would therefore |
= |
$145,000 |
Account Value |
= |
$90,000 |
Cash Surrender Value* |
= |
$89,950 |
Total of Adjusted Purchase Payments** |
= |
$80,000 |
5% Premium Roll-Up Value*** |
= |
$116,000 |
The Death Benefit Amount would therefore |
= |
$116,000 |
Account Value |
= |
$135,000 |
Cash Surrender Value* |
= |
$135,000 |
Total of Adjusted Purchase Payments |
= |
$100,000 |
The Death Benefit Amount would therefore |
= |
$135,000 |
The EEB amount, calculated as follows: |
|
|
Account Value minus Adjusted Purchase Payments |
= |
$35,000 |
45% of the above amount |
= |
$15,750 |
Cap of 100% of Adjusted Purchase Payments |
= |
$100,000 |
The lesser of the above two amounts = the EEB Premier amount |
= |
$15,750 |
|
|
|
Account Value |
= |
$115,000 |
Cash Surrender Value* |
= |
$115,000 |
Total of Adjusted Purchase Payments** |
= |
$85,185 |
The Death Benefit Amount would therefore |
= |
$115,000 |
The EEB amount, calculated as follows: |
|
|
Account Value minus Adjusted Purchase Payments |
= |
$29,815 |
45% of the above amount |
= |
$13,417 |
Cap of 100% of Adjusted Purchase Payments |
= |
$85,185 |
The lesser of the above two amounts = the EEB Premier amount |
= |
$13,417 |
Account Value |
= |
$135,000 |
Cash Surrender Value* |
= |
$135,000 |
Total of Adjusted Purchase Payments |
= |
$100,000 |
The Death Benefit Amount would therefore |
= |
$135,000 |
The EEB Premier Plus amount, calculated as follows: |
|
|
Account Value minus Adjusted Purchase Payments |
= |
$35,000 |
75% of the above amount |
= |
$26,250 |
Cap of 150% of Adjusted Purchase Payments |
= |
$150,000 |
The lesser of the above two amounts = the EEB Premier Plus amount |
= |
$26,250 |
Account Value |
= |
$135,000 |
Cash Surrender Value* |
= |
$135,000 |
Total of Adjusted Purchase Payments |
= |
$100,000 |
Maximum Anniversary Value |
= |
$145,000 |
The Death Benefit Amount would therefore |
= |
$145,000 |
The EEB Premier amount, calculated as follows: |
|
|
Account Value minus Adjusted Purchase Payments |
= |
$35,000 |
45% of the above amount |
= |
$15,750 |
Cap of 100% of Adjusted Purchase Payments |
= |
$100,000 |
The lesser of the above two amounts = the EEB Premier amount |
= |
$15,750 |
Account Value |
= |
$135,000 |
Cash Surrender Value* |
= |
$135,000 |
Total of Adjusted Purchase Payments |
= |
$100,000 |
5% Premium Roll-up Value |
= |
$145,000 |
The Death Benefit Amount would therefore |
= |
$145,000 |
The EEB Premier amount, calculated as follows: |
|
|
Account Value minus Adjusted Purchase Payments |
= |
$35,000 |
45% of the above amount |
= |
$15,750 |
Cap of 100% of Adjusted Purchase Payments |
= |
$100,000 |
The lesser of the above two amounts = the EEB Premier amount |
= |
$15,750 |
AB Plan Maturity Date: |
The date when the AB Plan matures which is on the 10th Account Anniversary, or if you elect to “step-up” your guaranteed values under the
rider, 10 years from the date of the most recent step-up.
|
Guaranteed Living Benefit Amount (the “GLB amount”): |
The minimum amount guaranteed under the Contract while you are participating in the AB Plan. The GLB amount is initially equal to your
initial Purchase Payment, which is adjusted for any subsequent Purchase
Payments, step-ups, and partial withdrawals. The GLB amount is
also used to set the GLB Base, Lifetime Income Base, and RGLB
amount on the date you elect the WB Plan. |
Guaranteed Living Benefit Base (the “GLB Base”): |
A value equal to the RGLB amount on the date you elect to participate in
the WB Plan. The GLB Base is adjusted later for any subsequent Purchase
Payments, step-ups, and partial withdrawals. The GLB Base is
used to establish the Maximum WB Amount. |
Lifetime Income Base: |
A value equal to the RGLB amount on the later of the date you elect to
participate in the WB Plan if you are age 60 or older and the first Account
Anniversary after your 59th birthday. The Lifetime Income Base
is adjusted later for any subsequent Purchase Payments,
step-ups, and partial withdrawals. The Lifetime Income Base is
used to establish the Maximum WB for Life Amount.
|
Maximum WB Amount: |
The maximum guaranteed amount available for annual withdrawal until your RGLB amount has been reduced to zero. The annual Maximum WB Amount is equal to 5% of the GLB Base. |
Maximum WB For Life Amount: |
The maximum guaranteed amount available for annual withdrawal during
your lifetime. The Maximum WB for Life Amount is equal to 4% or 5%
of the current Lifetime Income Base depending upon the age of
the Participant on the date of the first withdrawal under the
WB Plan or most recent Step-Up Date. If your Contract is
co-owned, the age of the oldest co-owner will be used to
determine the Maximum WB for Life Amount.
(You should be aware that the Maximum WB for Life Amount is
not a guaranteed amount. Certain actions you
take could reduce the value of your Maximum
WB for Life Amount to zero.) |
Remaining Guaranteed Living Benefit (the “RGLB amount”): |
If you elect the WB Plan, the minimum amount guaranteed under the Plan. The RGLB amount equals the GLB amount on the date you choose to participate in the WB Plan. This amount will be adjusted for subsequent
Purchase Payments, step-ups, and partial withdrawals. |
Account Year in which Purchase Payment was made |
Percentage added to the GLB amount |
1 - 2 |
100% |
3 - 5 |
85% |
6 - 8 |
70% |
9 - 10 |
60% |
Your Age on Date of First Withdrawal under WB Plan |
Maximum WB for Life Amount |
65 or older |
5% of the Lifetime Income Base |
64 or younger |
4% of the Lifetime Income Base |
old GLB amount |
x |
Account Value immediately after partial withdrawal |
Account Value immediately before partial withdrawal |
Your Age on the later of Date of First Withdrawal under WB Plan or Most Recent Step-Up Date |
New Maximum WB for Life Amount |
65 or older |
5% of the new Lifetime Income Base |
64 or younger |
4% of the new Lifetime Income Base |
Assume you purchased a Contract on July 1, 2005, and elected to step-up your Contract on October 1, 2010. Under
the AB Plan that you have elected, your benefit matures on October 1, 2020.
For any subsequent Purchase Payments you make, your GLB amount
would increase by the following percentages of such Purchase Payments: | ||
Step-Up Year |
Payments Made Between |
Percentage Added to the GLB amount |
1 |
10/02/10 - 10/01/11 |
100% |
2 |
10/02/11 - 10/01/12 |
100% |
3 |
10/02/12 - 10/01/13 |
85% |
4 |
10/02/13 - 10/01/14 |
85% |
5 |
10/02/14 - 10/01/15 |
85% |
6 |
10/02/15 - 10/01/16 |
70% |
7 |
10/02/16 - 10/01/17 |
70% |
8 |
10/02/17 - 10/01/18 |
70% |
9 |
10/02/18 - 10/01/19 |
60% |
10 |
10/02/19 - 10/01/20 |
60% |
Account Year in which Purchase Payment was made |
Percentage Guaranteed |
1 - 2 |
100% |
3 - 5 |
85% |
6 - 8 |
70% |
9 - 10 |
60% |
Account Year in which Purchase Payment was made |
Percentage guaranteed |
1 - 2 |
100% |
3 - 5 |
85% |
6 - 8 |
70% |
9 - 10 |
60% |
Assume you purchased a Contract on July 1, 2005, and elected to step-up your Contract on October 1, 2010. Under
the AB Plan that you have elected, your benefit matures on October 1, 2020.
For any subsequent Purchase Payments you make, your GLB amount
will increase by the following percentages: | ||
Step-Up Year |
Payments Made Between |
Percentage Guaranteed |
1 |
10/02/10 - 10/01/11 |
100% |
2 |
10/02/11 - 10/01/12 |
100% |
3 |
10/02/12 - 10/01/13 |
85% |
4 |
10/02/13 - 10/01/14 |
85% |
5 |
10/02/14 - 10/01/15 |
85% |
6 |
10/02/15 - 10/01/16 |
70% |
7 |
10/02/16 - 10/01/17 |
70% |
8 |
10/02/17 - 10/01/18 |
70% |
9 |
10/02/18 - 10/01/19 |
60% |
10 |
10/02/19 - 10/01/20 |
60% |
AB Plan Maturity Date: |
The date when the AB Plan matures. If you are younger than 85 on the
Issue Date, your AB Plan Maturity Date is the later of your 10th
Account Anniversary or 10 years from the date of your last
step-up. (See “Step-Up.”) If you are 85 on the
Issue Date, your AB Plan Maturity Date is your Maximum Annuity
Commencement Date. |
Plus 5 Period: |
The period of time equal in length to the first 10 Account Years; or, if
less than 10 years, the period of time up to the Account Year in which
the oldest Participant attains age 80. |
Bonus Base: |
An amount that is equal to the initial Purchase Payment on the date the
Contract is issued, and later is adjusted for any subsequent Purchase
Payments, step-ups, and partial withdrawals made during the
Plus 5 Period. |
Guaranteed Living Benefit Amount (the “GLB amount”): |
The minimum amount guaranteed under the Contract while you are participating in the AB Plan. The GLB amount is initially equal to your
initial Purchase Payment, which is adjusted for any subsequent
Purchase Payments, step-ups, and partial withdrawals. The GLB
amount is also used to set the RGLB amount on the date you elect the
WB Plan. |
Remaining Guaranteed Living Benefit Amount (the “RGLB amount”): |
The minimum amount guaranteed if you elected the WB Plan. The RGLB amount equals the GLB amount plus any accrued bonus amount on the date you choose to participate in the WB Plan. This amount will
be adjusted for subsequent Purchase Payments, step-ups, bonus
amounts, and partial withdrawals. |
Guaranteed Living Benefit Base (the “GLB Base”): |
A value equal to the RGLB amount on the date you elect to participate
in the WB Plan. The GLB Base is adjusted later for any subsequent
Purchase Payments, step-ups, bonus amounts, and partial
withdrawals. The GLB Base is used to establish the Maximum WB
Amount. |
Lifetime Income Base: |
A value equal to the RGLB amount on the WB Plan election date, if you are age 60 or older on said date. A value equal to the RGLB amount on the Account Anniversary on or immediately following your 59th birthday, if you are less than age 60 on the WB Plan election date.
The Lifetime Income Base is adjusted later for any subsequent
Purchase Payments, step-ups, bonus amounts, and partial withdrawals.
The Lifetime Income Base is used to establish the Maximum WB
for Life Amount. |
Maximum WB Amount: |
The maximum guaranteed amount available for annual withdrawal until your RGLB amount has been reduced to zero. The annual Maximum WB Amount is equal to 5% of the GLB Base. |
Maximum WB For Life Amount: |
The maximum guaranteed amount available for annual withdrawal during your lifetime. The Maximum WB for Life Amount is equal to 4% or 5% of the current Lifetime Income Base depending upon the age of the Participant on the date of the first withdrawal under the WB Plan
or most recent Step-Up Date. If your Contract is co-owned, the age of
the oldest Participant will be used to determine the Maximum
WB for Life Amount. (You should be aware that the Maximum WB for Life
Amount is not a guaranteed amount. Certain actions you take
could reduce the value of your Maximum WB for
Life Amount to zero.) |
You and Your: |
Under this optional living benefit, the terms “you” and “your” refer to
the oldest Participant or the surviving spouse of the oldest Participant
as described under “Death of Participant Under the AB
Plan” and “Death of Participant Under the WB
Plan.” In the case of a non-natural Participant, these
terms refer to the oldest Annuitant. |
WB Plan |
Guaranteed Minimum Withdrawal Benefit Plan |
AB Plan |
Guaranteed Minimum Accumulation Benefit Plan |
GLB Amount |
Guaranteed Living Benefit Amount |
RGLB Amount |
Remaining Guaranteed Living Benefit Amount |
Maximum WB Amount |
Maximum Guaranteed Minimum Withdrawal Benefit Amount |
Maximum WB for Life Amount |
Maximum Guaranteed Minimum Withdrawal Benefit for Life Amount |
Account Year in which Purchase Payment was made |
Percentage added to the GLB amount and to the Bonus Base |
1 - 2 |
100% |
3 - 5 |
85% |
6 - 8 |
70% |
9 - 10 |
60% |
Your Age on Date of First Withdrawal under WB Plan |
Maximum WB for Life Amount |
65 or older |
5% of the Lifetime Income Base |
64 or younger |
4% of the Lifetime Income Base |
old GLB amount |
x |
Account Value immediately after partial withdrawal |
Account Value immediately before partial withdrawal |
Your Age on the later of Date of First Withdrawal under WB Plan or Most Recent Step-Up Date |
New Maximum WB
for Life Amount |
65 or older |
5% of the new Lifetime Income Base |
64 or younger |
4% of the new Lifetime Income Base |
Assume you purchased a Contract on July 1, 2010, and elected to step-up your Contract on October 1, 2015. Under the
AB Plan that you have elected, your Benefit matures on October 1, 2025. For
any subsequent Purchase Payments you make into this Contract,
your GLB amount and your Bonus Base would increase by the following percentages of such Purchase Payments: | ||
Step-Up Year |
Payments Made Between |
Percentage Added to the GLB amount and the Bonus Base |
1 |
10/02/15 - 10/01/16 |
100% |
2 |
10/02/16 - 10/01/17 |
100% |
3 |
10/02/17 - 10/01/18 |
85% |
4 |
10/02/18 - 10/01/19 |
85% |
5 |
10/02/19 - 10/01/20 |
85% |
6 |
10/02/20 - 10/01/21 |
70% |
7 |
10/02/21 - 10/01/22 |
70% |
8 |
10/02/22 - 10/01/23 |
70% |
9 |
10/02/23 - 10/01/24 |
60% |
10 |
10/02/24 - 10/01/25 |
60% |
RIE Coverage Date: |
Your Issue Date if you are at least age
59 1∕2 at issue; otherwise, the first
Account Anniversary after you attain age 59 1∕2. |
Annual Withdrawal Amount: |
The total guaranteed amount available for withdrawal each Account Year
during your life, provided that you comply with certain conditions. The
Annual Withdrawal Amount is equal to your current Withdrawal
Benefit Base multiplied by your Lifetime Withdrawal
Percentage. (You should be aware that certain actions you take could significantly reduce the
amount of your Annual Withdrawal Amount.)
|
Lifetime Withdrawal Percentage: |
The percentage used to calculate your Annual Withdrawal Amount. The percentage will be 5%, 6%, or 7% depending upon your age on your first
withdrawal under the Contract after your RIE Coverage Date. Once
determined, the percentage is set for the life of your
RIE. |
Withdrawal Benefit Base: |
The amount used to calculate (1) your Annual Withdrawal Amount and (2)
your “RIE Fee” (see “Cost of RIE”).
|
RIE Bonus Period: |
A ten-year period commencing on the Issue Date and ending on your tenth
Account Anniversary. If you “step up” your RIE (described below)
during the RIE Bonus Period, the RIE Bonus Period is extended
to ten years from the date of the step-up. |
Bonus Base: |
The amount on which bonuses are calculated. The Bonus Base is equal to the
sum of your Purchase Payments, increased by any “step-ups”
(described below) and reduced proportionately by any
withdrawal taken prior to your RIE Coverage Date or any excess
withdrawals (see “Excess Withdrawals” under “Withdrawals Under RIE”). |
You and Your: |
The terms “you” and “your” refer to the oldest Participant or the surviving
spouse of the oldest Participant, as described under “Death of
Participant Under RIE with Single-Life Coverage.” In the
case of a non-natural Participant, these terms refer to the
oldest Annuitant. |
Your Age on the Date of the First Withdrawal After Your RIE Coverage Date* |
Lifetime Withdrawal Percentage |
59 1∕2 - 69
|
5% |
70 - 79 |
6% |
80 or older |
7% |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000 and that you
elected to participate in RIE with single-life coverage. (If you selected
joint-life coverage the numbers shown in the example could be
different.) Your Withdrawal Benefit Base and your Bonus Base are each set equal to your initial Purchase Payment on your Issue Date. Because you reached age 59 1∕2 prior to your Issue Date, your RIE Coverage
Date is your Issue Date. You can begin at any time to withdraw up to your
Annual Withdrawal Amount each Account Year without reducing
your Withdrawal Benefit Base. During the RIE Bonus Period, your Withdrawal Benefit Base will increase by 7% of your Bonus Base each Account Year in which you do not take a withdrawal. By deferring your
withdrawals during a RIE Bonus Period you will increase your Withdrawal
Benefit Base, which in turn may maximize your Annual Withdrawal
Amount. After the RIE Bonus Period, you will still be eligible to take your Annual Withdrawal Amount each year and to step-up your Withdrawal Benefit Base. However, you will no longer be
eligible for the 7% bonus each year. (For convenience, assume that the
investment performance on your underlying investments remains
constant throughout the life of your Contract, except for Account Year 2.) | |||||
Assume that, because of good investment performance of the Designated Funds during Account Year 2, your Account
Value has grown to $125,000 by the beginning of Account Year 3. Your Contract
is, therefore, eligible for an automatic step-up of its
Withdrawal Benefit Base and Bonus Base. Assume that we have not increased the percentage used to calculate the RIE Fee on newly issued Contracts; therefore we will step up your Withdrawal Benefit Base and
your Bonus Base to $125,000. Your new Annual Withdrawal Amount will be 5% of
your new Withdrawal Benefit Base, or $6,250. Going forward,
your new Bonus Base will be $125,000, unless increased by another step-up or reduced by an excess withdrawal, and your RIE Bonus Period will now end on your 12th Account Anniversary (i.e.,
ten years after the step-up). All values shown are as of the beginning of the Account Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$5,000 |
0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$5,350 |
0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$6,250 |
0 |
Assume you take your first withdrawal when you are age 66 in Account Year 7. Using the above chart, we set your
Lifetime Withdrawal Percentage at 5%. Your Annual Withdrawal Amount will be
equal to 5% of your Withdrawal Benefit Base. You can begin
withdrawing up to $8,000 each Account Year without reducing your Withdrawal Benefit Base, as shown in the following table: | |||||
4 |
$125,000 |
$133,750 |
$125,000 |
$6,688 |
0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$7,125 |
0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$7,563 |
0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$8,000 |
$8,000 |
8 |
$117,000 |
$160,000 |
$125,000 |
$8,000 |
$8,000 |
Assume in Account Year 9, you decide to defer taking a withdrawal. Your Withdrawal Benefit Base will increase by
7% of your Bonus Base. Your new Annual Withdrawal Amount will be set equal to
5% of your new Withdrawal Benefit Base, as shown
below: | |||||
9 |
$109,000 |
$160,000 |
$125,000 |
$8,000 |
$0 |
10 |
$109,000 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
Assume that in Account Year 14, you again decide to defer taking a withdrawal. Your Withdrawal Benefit Base will
not be increased because you are no longer in the Bonus Period, as your RIE
Bonus Period ends 10 years after the previous
step-up. | |||||
11 |
$100,563 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
12 |
$92,125 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
13 |
$83,688 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
14 |
$75,250 |
$168,750 |
$125,000 |
$8,438 |
$0 |
15 |
$75,250 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
Your new Bonus Base |
= |
A x |
( |
C |
) |
D - E | |||||
Your new Withdrawal Benefit Base |
= |
B x |
( |
C |
) |
D - E |
A |
= |
Your Bonus Base immediately prior to the excess withdrawal. |
B |
= |
Your Withdrawal Benefit Base immediately prior to the excess withdrawal. |
C |
= |
Your Account Value immediately after the excess withdrawal. |
D |
= |
Your Account Value immediately prior to the excess withdrawal. |
E |
= |
Your Annual Withdrawal Amount minus any prior partial withdrawals taken during the current Account Year. |
Using the facts of the above example, assume that
in Account Year 7, you take two withdrawals: a $4,000
withdrawal followed by a $6,000 withdrawal. Your first withdrawal reduces
your Account Value to $121,000 but does not affect your Bonus
Base or Withdrawal Benefit Base because it is not in excess of your Annual Withdrawal Amount. Your second withdrawal (when combined with the first) is in excess of your $8,000 Annual Withdrawal
Amount. After your second withdrawal, your Bonus Base and your Withdrawal
Benefit Base will be reduced as follows: | ||||
|
|
|
|
|
Your new Bonus Base |
= |
125,000 |
x |
121,000 - 6,000 |
|
|
|
|
121,000 - (8,000 - 4,000) |
|
|
|
|
|
|
= |
125,000 |
x |
115,000 |
|
|
|
|
117,000 |
|
|
|
|
|
|
= |
125,000 |
x |
0.98291 |
|
|
|
|
|
|
|
122,863 |
|
|
|
|
|
|
|
Your new Withdrawal Benefit Base |
= |
160,000 |
x |
121,000 - 6,000 |
|
|
|
|
121,000 - (8,000 - 4,000) |
|
|
|
|
|
|
= |
160,000 |
x |
115,000 |
|
|
|
|
117,000 |
|
|
|
|
|
|
= |
160,000 |
x |
0.98291 |
|
|
|
|
|
|
|
157,265 |
|
|
Going forward, your new Annual Withdrawal Amount will be reduced to 5% of your new Withdrawal Benefit Base or
$7,863. |
Your new Bonus Base |
= |
W x |
( |
Y |
) |
Z | |||||
Your new Withdrawal Benefit Base |
= |
X x |
( |
Y |
) |
Z |
W |
= |
Your Bonus Base immediately prior to the early withdrawal. |
X |
= |
Your Withdrawal Benefit Base immediately prior to the early withdrawal. |
Y |
= |
Your Account Value immediately after the early withdrawal. |
Z |
= |
Your Account Value immediately prior to the early withdrawal. |
Assume that you are age 45 when your Contract is issued with an initial
Purchase Payment of $100,000 and that you elected to
participate in RIE with single-life coverage. (If you selected joint-life coverage the number shown in the example could be different.) Your Withdrawal Benefit Base and your Bonus Base are each set equal to your initial
Purchase Payment on your Issue Date. Your Withdrawal Benefit Base will
increase by 7% of your Bonus Base each year in which you do not
take a withdrawal. Your RIE Coverage Date will not occur until your 15th Account Anniversary (the first Account Anniversary after you reach age 59 1∕2). Any withdrawals, including any “free withdrawal amount,” you take prior to that
time will be “early withdrawals.” | |||||
Assume that because of good investment performance of the Designated Funds
during Account Year 2, your Account Value has grown to $125,000
by the beginning of Account Year 3. Your Contract is therefore eligible for an automatic step-up of its Withdrawal Benefit Base and Bonus Base. Assume that we have not increased the percentage used to
calculate the RIE Fee on newly issued Contracts; therefore we will step-up
your Withdrawal Benefit Base and your Bonus Base to
$125,000. | |||||
Assume that, in your Account Year 7, you withdraw $10,000. Because you are
age 51 (and younger than age 59 1∕2), this is an early withdrawal. All values shown are
as of the beginning of the Account Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$0 |
0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$0 |
0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$0 |
0 |
4 |
$125,000 |
$133,750 |
$125,000 |
$0 |
0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$0 |
0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$0 |
0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$0 |
$10,000 |
At this point, your Bonus Base and your Withdrawal Benefit Base will be
recalculated as follows: | ||||
| ||||
Your new Bonus Base |
= |
125,000 |
x |
125,000 -
10,000 |
|
|
|
|
125,000 |
|
|
|
|
|
|
= |
125,000 |
x |
115,000
|
|
|
|
|
125,000 |
|
|
|
|
|
|
= |
125,000 |
x |
0.92000 |
|
|
|
|
|
|
|
115,000 |
|
|
|
|
|
|
|
Your new Withdrawal Benefit Base |
= |
$160,000 |
x |
125,000 -
10,000 |
|
|
|
|
125,000 |
|
|
|
|
|
|
= |
$160,000 |
x |
115,000
|
|
|
|
|
125,000 |
|
|
|
|
|
|
= |
160,000 |
x |
0.92000 |
|
|
|
|
|
|
= |
147,200 |
|
|
Your Annual Withdrawal Amount will still be $0 because your have not reached
your RIE Coverage Date. |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000 and that you
elected to participate in RIE with single-life coverage. (If you selected
joint-life coverage the numbers shown in the example could be
different.) Assume that, because of good investment performance of the Designated Funds during Account Year 2, your Account Value has grown to $125,000 by the beginning of Account Year 3. Your Contract is,
therefore, eligible for an automatic step-up of its Withdrawal Benefit Base
and Bonus Base. Assume that we have not increased the
percentage used to calculate the RIE Fee on newly issued Contracts; therefore we will step up your Withdrawal Benefit Base and your Bonus Base to $125,000. Your new Annual Withdrawal Amount will be 5% of
your new Withdrawal Benefit Base, or $6,250. All values shown are as of the
beginning of the Account Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$5,000 |
0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$5,350 |
0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$6,250 |
0 |
4 |
$125,000 |
$133,750 |
$125,000 |
$6,688 |
0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$7,125 |
0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$7,563 |
0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$8,000 |
0 |
Going forward, your new Bonus Base will be $125,000, unless increased by another step-up or reduced by an excess
withdrawal, and your RIE Bonus Period will now end on your 12th Account
Anniversary (i.e., ten years after the step-up).
|
Age of Younger Spouse on
Date of the First Withdrawal After
Your RIE Coverage Date
|
Lifetime Withdrawal Percentage |
59 1∕2 - 69
|
5% |
70 - 79 |
6% |
80 - or older |
7% |
Income ON Demand Coverage Date: |
Your Issue Date if you are at least age 55 at issue, otherwise the first Account
Anniversary following your 55th birthday. |
Annual Income Amount: |
The amount added to your Stored Income Balance on each Account Anniversary beginning on the Income ON Demand Coverage Date; it is equal to 5% of your Income Benefit Base on the date of crediting. |
Stored Income Balance: |
The amount you may withdraw at any time after age 59 1∕2 without reducing
the Benefit. |
Income Benefit Base: |
The amount used to calculate your Annual Income Amount and your “Income ON Demand Fee” (see “Cost of Income ON Demand”). |
You and Your: |
The terms “you” and “your” refer to the oldest Participant or the surviving
spouse of the oldest Participant, as described under the sections
entitled “Death of Participant Under Income ON Demand
with Single-Life Coverage” and “Death of
Participant Under Income ON Demand with Joint- Life
Coverage.” In the case of a non-natural Participant, these terms refer to the oldest Annuitant. |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in Income ON Demand. Your Income Benefit Base is equal
to your initial Purchase Payment on your Issue Date. Your
Annual Income Amount is $5,000 (5% of your Income Benefit Base). Therefore, $5,000 will be added each year to your Stored Income Balance. | |||
Year |
Annual Income Amount |
|
Stored Income Balance |
|
(Amount Added to Stored Income Balance) |
→ |
(Cumulative Balance if No Withdrawals Taken) |
1 |
$5,000 |
→ |
$5,000 |
2 |
$5,000 |
→ |
$10,000 |
3 |
$5,000 |
→ |
$15,000 |
4 |
$5,000 |
→ |
$20,000 |
5 |
$5,000 |
→ |
$25,000 |
6 |
$5,000 |
→ |
$30,000 |
7 |
$5,000 |
→ |
$35,000 |
8 |
$5,000 |
→ |
$40,000 |
9 |
$5,000 |
→ |
$45,000 |
10 |
$5,000 |
→ |
$50,000 |
Assume that, immediately prior to your tenth Account Anniversary, you decide to use the full amount of your Stored
Income Balance ($50,000) to increase your Income Benefit Base. Your Income
Benefit Base will be increased to $150,000. Your Annual Income
Amount will be $7,500 (5% of your Income Benefit Base). Therefore $7,500 will be added each year to your Stored Income Balance. | |||
Year |
Annual Income Amount |
|
Stored Income Balance |
|
(Amount Added to Stored Income Balance) |
→ |
(Cumulative Balance if No Withdrawals Taken) |
11 |
$7,500 |
→ |
$7,500 |
12 |
$7,500 |
→ |
$15,000 |
13 |
$7,500 |
→ |
$22,500 |
14 |
$7,500 |
→ |
$30,000 |
15 |
$7,500 |
→ |
$37,500 |
Assume instead that you decide to take a lump sum withdrawal of $50,000, thus depleting your Stored Income
Balance. Your Income Benefit Base will remain at $100,000. Your Annual Income
Amount remains at $5,000 (5% of your Income Benefit Base).
Therefore $5,000 will be added each year to your Stored Income Balance. | |||
Year |
Annual Income Amount |
|
Stored Income Balance |
|
(Amount Added to Stored Income Balance) |
→ |
(Cumulative Balance if No Additional Withdrawals) |
11 |
$5,000 |
→ |
$5,000 |
12 |
$5,000 |
→ |
$10,000 |
13 |
$5,000 |
→ |
$15,000 |
14 |
$5,000 |
→ |
$20,000 |
15 |
$5,000 |
→ |
$25,000 |
Using the facts of the first example, assume that,
immediately prior to your tenth Account Anniversary, you decide
to take a lump sum withdrawal of $30,000 from the $50,000 in your Stored
Income Balance, thus reducing your Stored Income Balance to
$20,000. Your Income Benefit Base will remain at $100,000. Your Annual Income Amount will remain at $5,000 (5% of your Income Benefit Base). Therefore $5,000 will be added each year to your
Stored Income Balance. | |||
Year |
Annual Income Amount |
|
Stored Income Balance |
|
(Amount Added to Stored Income Balance) |
→ |
(Cumulative Balance if No Additional Withdrawals) |
11 |
$5,000 |
→ |
$25,000 |
12 |
$5,000 |
→ |
$30,000 |
13 |
$5,000 |
→ |
$35,000 |
14 |
$5,000 |
→ |
$40,000 |
15 |
$5,000 |
→ |
$45,000 |
Using the facts of the first example, assume that,
immediately prior to your tenth Account Anniversary, you decide
to take a lump sum payment of $60,000 thus exceeding your Stored Income
Balance of $50,000. Assume also that your Account Value
immediately prior to the withdrawal is $120,000. Your Income Benefit Base will be reset to the lesser of (a) your old Income Benefit Base reduced by the excess of your withdrawal over the Stored Income Balance
[$100,000 - ($60,000 - $50,000) = $90,000)] or (b) your new Account Value
after the withdrawal ($120,000 - $60,000 = $60,000) or $60,000.
Your new Annual Income Amount will be $3,000 (5% of your Income Benefit Base). Therefore $3,000 will be added each year to your Stored Income Balance. | |||
Year |
Annual Income Amount |
|
Stored Income Balance |
|
(Amount Added to Stored Income Balance) |
→ |
(Cumulative Balance if No Additional Withdrawals) |
11 |
$3,000 |
→ |
$3,000 |
12 |
$3,000 |
→ |
$6,000 |
13 |
$3,000 |
→ |
$9,000 |
14 |
$3,000 |
→ |
$12,000 |
15 |
$3,000 |
→ |
$15,000 |
Using the facts of the preceding example, assume
that your Account Value immediately prior to the withdrawal is
$80,000. Your Income Benefit Base will be reset to equal the lesser of (a)
your previous Income Benefit Base reduced by the excess of your
withdrawal over the Stored Income Balance [$100,000 - ($60,000 - $50,000) = $90,000)] and (b) your Account Value immediately after the withdrawal ($80,000 - $60,000 = $20,000) or $20,000.
Your new Annual Income Amount will be $1,000 (5% of your Income Benefit
Base). Therefore, only $1,000 will be added each year to your
Stored Income Balance. | |||
Year |
Annual Income Amount |
|
Stored Income Balance |
|
(Amount Added to Stored Income Balance) |
|
(Cumulative Balance if No Additional Withdrawals) |
11 |
$1,000 |
→ |
$1,000 |
12 |
$1,000 |
→ |
$2,000 |
13 |
$1,000 |
→ |
$3,000 |
14 |
$1,000 |
→ |
$4,000 |
15 |
$1,000 |
→ |
$5,000 |
Assume that you are age 50 when your Contract is issued with an initial Purchase Payment of $100,000 and that you
elected to participate in Income ON Demand. Your Income Benefit Base is set
equal to your initial Purchase Payment on your Issue Date
($100,000), but benefits under Income ON Demand do not begin to accrue until the first Account Anniversary after your 55th birthday (your Income ON Demand Coverage Date). Assume also that poor investment
performance of your underlying funds has reduced your Account Value to
$85,000 by the end of your second Account Year. At that time,
you decide to withdraw $5,000, further reducing your Account Value to $80,000. Your Income Benefit Base will be reset to $80,000 which is the lesser of (1) your previous Income Benefit Base reduced
by the amount of the withdrawal in excess of the Stored Income Balance
($100,000 - $5,000 = $95,000) and (2) your Account Value
immediately after the withdrawal ($85,000 - $5,000 = $80,000). Assuming you take no additional withdrawals prior to your Income ON Demand Coverage Date, your Annual Income Amount will be $4,000 (5% of
your Income Benefit Base). | ||||
Year |
Income Benefit Base |
Annual Income Amount |
|
Stored Income Balance |
|
(beginning of Account Year) |
(Amount Added to Stored Income Balance) |
|
(Cumulative Balance if No Withdrawals Taken) |
1 |
$100,000 |
$0 |
→ |
$0 |
2 |
$100,000 |
$0 |
→ |
$0 |
3 |
$80,000 |
$0 |
→ |
$0 |
4 |
$80,000 |
$0 |
→ |
$0 |
5 |
$80,000 |
$0 |
→ |
$0 |
6 |
$80,000 |
$4,000 |
→ |
$4,000 |
7 |
$80,000 |
$4,000 |
→ |
$8,000 |
8 |
$80,000 |
$4,000 |
→ |
$12,000 |
9 |
$80,000 |
$4,000 |
→ |
$16,000 |
10 |
$80,000 |
$4,000 |
→ |
$20,000 |
Annual Income Amount: |
The amount added to your Stored Income Balance on each Account Anniversary
during your Stored Income Period. It is equal to 5% of your Income Benefit
Base on the date of crediting. |
Early Withdrawal: |
Any withdrawal taken prior to your First Withdrawal Date. |
Excess Withdrawal: |
Any withdrawal taken after your First Withdrawal Date that exceeds your Stored
Income Balance (or your Required Minimum Distribution Amount, if
greater). |
Fee Base: |
The amount used to calculate your “IOD II Fee” (see “Cost of IOD II”). |
First Withdrawal Date: |
Your Issue Date if you are at least age 59 at issue, otherwise the first Account
Anniversary after you attain age 59. |
Income Benefit Base: |
The amount used to calculate your Annual Income Amount for IOD II. |
Stored Income Balance: |
The amount you may withdraw at any time after your First Withdrawal Date without
reducing your benefits under IOD II. |
Stored Income Period: |
A period beginning on your Issue Date if you are at least age 50 at issue, otherwise
the first Account Anniversary following your 50th birthday, ending on your
Annuity Commencement Date. |
You and Your: |
The terms “you” and “your” refer to the oldest living Participant or the surviving
spouse of the oldest Participant, as described under “Death of
Participant Under IOD II with Joint-Life Coverage.” In
the case of a non-natural Participant, these terms refer to
the oldest living Annuitant. |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elect to participate in IOD II with single-life coverage and investment
performance of the Designated Funds is constant over the years.
(If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. Your Annual Income
Amount is $5,000 (5% of your Income Benefit Base). Therefore, $5,000 will be
added each year to your Stored Income Balance. All values shown are as of the beginning of the Account Year. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
1 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$5,000 |
2 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$10,000 |
3 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$15,000 |
4 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$20,000 |
During your fifth Account Year, you use the full amount of your Stored Income Balance ($25,000) to increase your
Income Benefit Base. On your next Account Anniversary, your Income Benefit
Base will be increased to $125,000 and your Annual Income
Amount will be $6,250 (5% of your Income Benefit Base). Therefore $6,250 will be added each year to your Stored Income Balance unless your Annual Income Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$25,000 |
6 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$6,250 |
7 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$12,500 |
8 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$18,750 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Assume instead that, during your fifth Account Year, you take a withdrawal of $25,000, thereby reducing your Stored
Income Balance to $0. On your next Account Anniversary your Income Benefit
Base will remain at $100,000 and your Annual Income Amount
remains at $5,000 (5% of your Income Benefit Base). Therefore $5,000 will be added each year to your Stored Income Balance unless your Annual Income Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$25,000 |
$0 |
6 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$5,000 |
7 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$10,000 |
8 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$15,000 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV - SB |
IBB |
= |
Your Income Benefit Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (or your Yearly Required Minimum Distribution Amount, if greater) immediately prior to the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
Using the same facts as the previous example,
assume that in your fifth Account Year you take a withdrawal of
$50,000, exceeding your Stored Income Balance. Assume that, due to poor
investment performance during the fifth Account Year, your
Account Value was $90,000 immediately prior to the withdrawal. Your Income Benefit Base will be reduced to $61,538 as shown below. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$50,000 |
$0 |
6 |
$40,000 |
$61,538 |
$3,077 |
$0 |
$3,077 |
7 |
$40,000 |
$61,538 |
$3,077 |
$0 |
$6,154 |
8 |
$40,000 |
$61,538 |
$3,077 |
$0 |
$9,231 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
$100,000 x |
( |
$90,000 - $50,000 |
) |
= |
$61,538 |
$90,000 - $25,000 |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV |
Your new Stored Income Balance |
= |
SB x |
( |
AV - WD |
) |
AV |
IBB |
= |
Your Income Benefit Base immediately prior to the Early Withdrawal. |
SB |
= |
Your Stored Income Balance immediately prior to the Early Withdrawal. |
WD |
= |
The amount of the Early Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early Withdrawal. |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV - SB |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV |
Fee Base |
= |
Your Fee Base immediately prior to the Early/Excess Withdrawal. |
WD |
= |
The amount of the Early/Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (if any) immediately prior to the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early/Excess Withdrawal. |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in IOD II with single-life coverage and investment
performance of the Designated Funds is constant over the years.
(If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. At issue, your Annual Income Amount is
$5,000 (5% of your Income Benefit Base). All values are shown as of the beginning of the Account Year. | ||||||
During the Stored Income Period, the Fee Base is reset at the beginning of the Account Year to equal your Income Benefit
Base plus your Stored Income Balance less your Annual Income Amount, if that
amount is greater than the previous Fee Base. For example, in
Account Year 4, the Fee Base is set equal to the Income Benefit Base ($100,000) plus the Stored Income Balance ($20,000) less your Annual Income Amount ($5,000) if that amount ($115,000) is greater than the
previous Fee Base ($110,000). | ||||||
|
|
|
Stored
Income Balance |
| ||
Year |
Income Benefit Base |
Annual Income Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
1 |
$100,000 |
$5,000 |
$5,000 |
$0 |
$5,000 |
$100,000 |
2 |
$100,000 |
$5,000 |
$10,000 |
$0 |
$10,000 |
$105,000 |
3 |
$100,000 |
$5,000 |
$15,000 |
$0 |
$15,000 |
$110,000 |
4 |
$100,000 |
$5,000 |
$20,000 |
$0 |
$20,000 |
$115,000 |
Assume, instead, that in your fourth Account Year you take a $20,000 withdrawal. At the beginning of your fifth
Account Year, your Income Benefit Base ($100,000) plus your Stored Income
Balance ($5,000) less your Annual Income Amount ($5,000) is
less than the current Fee Base ($115,000), so there is no change to the Fee Base, as shown below. |
|
|
|
Stored
Income Balance |
| ||
Year |
Income Benefit Base |
Annual Income Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
4 |
$100,000 |
$5,000 |
$20,000 |
$20,000 |
$0 |
$115,000 |
5 |
$100,000 |
$5,000 |
$5,000 |
$0 |
$5,000 |
$115,000 |
6 |
$100,000 |
$5,000 |
$10,000 |
$0 |
$10,000 |
$115,000 |
7 |
$100,000 |
$5,000 |
$15,000 |
$0 |
$15,000 |
$115,000 |
8 |
$100,000 |
$5,000 |
$20,000 |
$0 |
$20,000 |
$115,000 |
9 |
$100,000 |
$5,000 |
$25,000 |
$0 |
$25,000 |
$120,000 |
On each Account Anniversary thereafter, your Fee Base is recalculated and reset if necessary. |
Assume that you are 60 years old when you purchase a Contract with an initial
Purchase Payment of $100,000, and that you elect to participate
in IOD II with single-life coverage. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment. Your
Annual Income Amount is $5,000 (5% of your Income Benefit Base). Your initial
Stored Income Balance is $5,000. | ||||
In each of the four examples, Account Values shown are as of the last day of
each Account Quarter. Adjustments are made on the day a
Purchase Payment or withdrawal is made. | ||||
The Account Values on each of your four Account Quarters are $113,000,
$108,000, $90,000, and $103,000, respectively. No additional
Purchase Payments are made and no withdrawals are taken, so no adjustments to these values are necessary. Your Stored Income Balance at the end of the fourth Account Quarter is $5,000. The highest
adjusted quarterly value is $113,000. Your new Income Benefit Base is set to
equal $108,000 ($113,000 - $5,000) since that amount exceeds
your previous Income Benefit Base. | ||||
|
|
|
|
|
Time |
Account
Value |
Adjustment for
subsequent
Purchase Payments
and withdrawals |
Account Value
(after subsequent
adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
n/a |
$113,000 |
$100,000 |
End of Second Quarter |
$108,000 |
n/a |
$108,000 |
$100,000 |
End of Third Quarter |
$90,000 |
n/a |
$90,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$103,000 |
n/a |
$103,000 |
$100,000 |
Highest Quarterly Value (after
adjustments) |
|
|
$113,000 |
|
Stored Income Balance at end of fourth
quarter |
$163,000 | |||
Step-up comparison |
Is ($113,000 - $5,000) greater than $100,000? Yes, so step-up. |
|||
On the Account Anniversary (after step-up):
| ||||
New Income Benefit Base = |
$108,000 |
Highest Quarterly Value (after adjustments) less the
Stored Income Balance. | ||
New Annual Income Amount = |
$5,400 |
$108,000 x 5% | ||
New Stored Income Balance = |
$10,400 |
Stored Income Balance at the end of the fourth Account
Quarter plus the new Annual Income Amount. | ||
Please note: The end of the fourth Account Quarter and the Account Anniversary are the same day. We only make the
distinction to separate valves before and after step-up. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$50,000 |
$163,000 |
$100,000 |
$50,000 Purchase Payment |
$163,000 |
n/a |
n/a |
$150,000 |
End of Second Quarter |
$158,000 |
n/a |
$158,000 |
$150,000 |
End of Third Quarter |
$140,000 |
n/a |
$140,000 |
$150,000 |
End of Fourth Quarter (before step-up) |
$153,000 |
n/a |
$153,000 |
$150,000 |
Highest Quarterly Value (after adjustments)
|
$163,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$7,500 (initial $5,000 plus 5% x $50,000) | |||
Step-up comparison |
Is ($163,000 - $7,500) greater than $150,000? Yes, so step-up.
| |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$155,500 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance. | ||
New Annual Income Amount = |
$7,775 |
$155,500 x 5% | ||
New Stored Income Balance = |
$15,275 |
Stored Income Balance at the end of the fourth Account Quarter plus the new Annual Income Amount. | ||
Please note: Since the additional Purchase Payment occurred after the first Account Quarter, the first Account
Quarter value was adjusted. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$4,000 |
$109,000 |
$100,000 |
$4,000 Withdrawal |
$109,000 |
n/a |
n/a |
$100,000 |
End of Second Quarter |
$104,000 |
n/a |
$104,000 |
$100,000 |
End of Third Quarter |
$86,000 |
n/a |
$86,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$99,000 |
n/a |
$99,000 |
$100,000 |
Highest Quarterly Value (after adjustments)
|
$109,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$1,000 (initial $5,000 less $4,000 withdrawal) |
|||
Step-up comparison |
Is ($109,000 - $1,000) greater than $100,000? Yes, so step-up.
| |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$108,000 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance. | ||
New Annual Income Amount = |
$5,400 |
$108,000 x 5% | ||
New Stored Income Balance = |
$6,400 |
Stored Income Balance at the end of the fourth Account Quarter plus the new Annual Income Amount. | ||
Please note: Since the withdrawal occurred after the first Account Quarter, the first Account Quarter value was
adjusted. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
- $45,213 |
$67,787 |
$100,000 |
$40,000 Withdrawal |
$59,000 |
n/a |
n/a |
$62,766 |
End of Second Quarter |
$68,000 |
n/a |
$68,000 |
$62,766 |
End of Third Quarter |
$50,000 |
n/a |
$50,000 |
$62,766 |
End of Fourth Quarter (before step-up) |
$63,000 |
n/a |
$63,000 |
$62,766 |
Highest Quarterly Value (after adjustments)
|
$68,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$0 | |||
Step-up comparison |
Is ($68,000 - $0) greater than $62,766? Yes, so step-up.
| |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$68,000 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance. | ||
New Annual Income Amount = |
$3,400 |
$68,000 x 5% | ||
New Stored Income Balance = |
$3,400 |
Stored Income Balance at the end of the fourth Account Quarter plus the new Annual Income Amount. |
(1) |
Reduce the end of First Quarter Account Value by the Stored Income Balance |
= |
$113,000 |
|
- $5,000 |
|
= |
$108,000 |
(2) |
Adjust Account Value for the first Account Quarter |
= |
$108,000 x |
( |
$99,000 - $40,000 |
) |
= |
$67,787 |
$99,000 - $5,000 | ||||||||
|
The total adjustment |
= |
$113,000 |
|
- $67,787 |
|
= |
$45,213 |
Annual Income Amount: |
An amount equal to your current Income Benefit Base multiplied by 5%, calculated
on each Account Anniversary. |
Early Withdrawal: |
Any withdrawal taken prior to your First Withdrawal Date. |
Excess Withdrawal: |
Any withdrawal taken after your First Withdrawal Date that (a) when added to all
prior withdrawals taken in that Account Year, exceeds the Annual Income
Amount (or your Required Minimum Distribution Amount, if
greater) while in the IOD II Plus Bonus Period or (b) exceeds
your Stored Income Balance (or your Required Minimum
Distribution Amount, if greater) while in the Stored Income Period. |
Fee Base: |
The amount used to calculate your “IOD II Plus Fee” (see “Cost of IOD II Plus”). |
First Withdrawal Date: |
Your Issue Date if you are at least age 59 at issue, otherwise the first Account
Anniversary after you attain age 59. |
Income Benefit Base: |
The amount used to calculate your Annual Income Amount for IOD II Plus. |
IOD II Plus Bonus Base: |
The amount on which bonuses are calculated. The IOD II Plus Bonus Base is equal
to the sum of your Purchase Payments, increased by any
“step-ups” (described below) and reduced for any
Early Withdrawals or any Excess Withdrawals. |
IOD II Plus Bonus Period: |
A ten-year period commencing on the Issue Date. If you “step-up” IOD II
Plus,(described below) during the IOD II Plus Bonus Period, the IOD II Plus
Bonus Period is extended to ten years from the date of the
step-up. |
Stored Income Balance: |
The amount you may withdraw at any time during your Stored Income Period and
after your First Withdrawal Date without reducing your benefits under IOD II
Plus. |
Stored Income Period: |
A period beginning on the latest of your first Account Anniversary, the end of your
IOD II Plus Bonus Period, or the first Account Anniversary following your
50th birthday, and ending on your Annuity Commencement
Date. |
You and Your: |
The terms “you” and “your” refer to the oldest living Participant or the surviving
spouse of the oldest Participant, as described under “Death of
Participant Under IOD II Plus with Joint-Life Coverage.”
In the case of a non-natural Participant, these terms refer to
the oldest living Annuitant. |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elect to participate in IOD II Plus with single-life coverage and investment
performance of the Designated Funds is constant over the years.
(If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. You decide to remain in the
IOD II Plus Bonus Period for two years. The IOD II Plus Bonus Base is
$100,000 for year one and year two. The bonus amount is 7% of
the IOD II Plus Bonus Base. You wait until your third Account Year before you begin your Stored Income Period. At issue, your Annual Income Amount is $5,000 (5% of your Income Benefit Base). All values are shown as of the beginning of the Account Year, except for the bonus which occurs at the end of the
Account Year. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Bonus Amount |
Stored Income Balance |
1 |
$100,000 |
$100,000 |
$5,000 |
$7,000 |
$0 |
2 |
$100,000 |
$107,000 |
$5,350 |
$7,000 |
$0 |
3 |
$100,000 |
$114,000 |
$5,700 |
n/a |
$5,700 |
4 |
$100,000 |
$114,000 |
$5,700 |
n/a |
$11,400 |
During your fifth Account Year, you use the full amount of your Stored Income Balance ($17,100) to increase your
Income Benefit Base thereby reducing your Stored Income balance to $0. On
your next Account Anniversary, your Income Benefit Base of
$114,000 will be increased to $131,100 and your Annual Income Amount will be $6,555 (5% of your Income Benefit Base). Therefore $6,555 will be added each year to your Stored Income Balance unless
your Annual Income Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Bonus Amount |
Stored Income Balance |
5 |
$100,000 |
$114,000 |
$5,700 |
n/a |
$17,100 |
6 |
$100,000 |
$131,100 |
$6,555 |
n/a |
$6,555 |
7 |
$100,000 |
$131,100 |
$6,555 |
n/a |
$13,110 |
8 |
$100,000 |
$131,100 |
$6,555 |
n/a |
$19,665 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Assume instead that, during your fifth Account Year, you take a withdrawal of $17,100, thereby reducing your Stored
Income Balance to $0. On your next Account Anniversary, your Income Benefit
Base will remain at $114,000 and your Annual Income Amount
remains at $5,700 (5% of your Income Benefit Base). Therefore $5,700 will be added each year to your Stored Income Balance unless your Annual Income Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$114,000 |
$5,700 |
$17,100 |
$0 |
6 |
$82,900 |
$114,000 |
$5,700 |
$0 |
$5,700 |
7 |
$82,900 |
$114,000 |
$5,700 |
$0 |
$11,400 |
8 |
$82,900 |
$114,000 |
$5,700 |
$0 |
$17,100 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV - AIA | |||||
Your new IOD II Plus Bonus Base |
= |
BB x |
( |
AV - WD |
) |
AV - AIA |
IBB |
= |
Your Income Benefit Base immediately prior to the Excess Withdrawal. |
BB |
= |
Your IOD II Plus Bonus Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
AIA |
= |
Your remaining Annual Income Amount immediately prior to the Excess Withdrawal minus any prior partial withdrawals taken during the current Account Year. |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV - SB |
IBB |
= |
Your Income Benefit Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
SB |
= |
Your Stored Income Balance immediately prior to the Excess Withdrawal (or your Required Minimum Distribution Amount, if greater). |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
Using the same facts as the previous example,
assume that in your fifth Account Year you take a withdrawal of
$50,000, exceeding your Stored Income Balance. Assume that due to poor
investment performance during the fifth Account Year, your
Account Value was $90,000 immediately prior to the withdrawal. Your Income Benefit Base will be reduced to $62,551 as shown below and your new Annual Income Amount will be 5% of your new Income
Benefit base ($3,128). The Annual Withdrawal Amount of $3,128 will be added
to your Stored Income Balance. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$114,000 |
$5,700 |
$50,000 |
$0 |
6 |
$50,000 |
$62,551 |
$3,128 |
$0 |
$3,128 |
7 |
$50,000 |
$62,551 |
$3,128 |
$0 |
$6,2561 |
8 |
$50,000 |
$62,551 |
$3,128 |
$0 |
$9,384 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
$114,000 x |
( |
$90,000 - $50,000 |
) |
= |
$62,551 |
$90,000 - $17,100 |
Your new IOD II Plus Bonus Base |
= |
BB x |
( |
AV - WD |
) |
AV |
Your new Stored Income Balance |
= |
SB x |
( |
AV - WD |
) |
AV |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV |
IBB |
= |
Your Income Benefit Base immediately prior to the Early Withdrawal. |
BB |
= |
Your IOD II Plus Bonus Base immediately prior to the Early Withdrawal. |
SB |
= |
Your Stored Income Balance immediately prior to the Early Withdrawal. |
WD |
= |
The amount of the Early Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early Withdrawal. |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV - AIA |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV - SB |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV |
Fee Base |
= |
Your IOD II Plus Fee Base immediately prior to the Early/Excess Withdrawal. |
WD |
= |
The amount of the Early/Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (if any) immediately prior to the Excess Withdrawal. |
AIA |
= |
Your Annual Income Amount immediately prior to the Excess Withdrawal minus any prior partial withdrawals taken during the current Account Year. |
AV |
= |
Your Account Value immediately prior to the Early/Excess Withdrawal. |
Assume that you are age 60 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in IOD II Plus with single-life coverage and
investment performance of the Designated Funds is constant over
the years. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment ($100,000) on your Issue Date. Your IOD II Plus Bonus
Base is equal to your initial Purchase Payment ($100,000). At issue, your
Annual Income Amount is $5,000 (5% of your Income Benefit
Base). You wait until your third Account Year before you elect to begin your Stored Income Period. During the IOD II Plus Bonus Period, in years that withdrawals are not taken, your Income Benefit Base increases by 7%
of your IOD II Plus Bonus Base (assuming no step-up). At the beginning of
your Stored Income Period, Year 3, your Annual Income Amount
has increased to $5,700. All values are shown as of the beginning of the Account Year unless
otherwise stated. | ||||||
During the IOD II Plus Bonus Period (Account Years 1 and 2), the Fee Base is set equal to your Income Benefit Base.
During the Stored Income Period, the Fee Base is reset at the beginning of
the Account Year to equal your Income Benefit Base plus your
Stored Income Balance less your Annual Income Amount, if that amount is greater than the previous Fee Base. For example, in Account Year 4, the Fee Base is set equal to the Income Benefit Base ($114,000) plus the Stored
Income Balance ($11,400) less your Annual Income Amount ($5,700) if that
amount ($119,700) is greater than the previous Fee Base
($114,000). | ||||||
|
|
|
Stored
Income Balance |
| ||
Year |
Income Benefit
Base |
Annual Income
Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
1 |
$100,000 |
$5,000 |
$0 |
$0 |
$0 |
$100,000 |
2 |
$107,000 |
$5,350 |
$0 |
$0 |
$0 |
$107,000 |
3 |
$114,000 |
$5,700 |
$5,700 |
$0 |
$5,700 |
$114,000 |
4 |
$114,000 |
$5,700 |
$11,400 |
$0 |
$11,400 |
$119,700 |
Assume, instead, that in your fourth Account Year you take an $11,400 withdrawal. At the beginning of your fifth
Account Year, your Income Benefit Base ($114,000) plus your Stored Income
Balance ($0) less your Annual Income Amount ($5,700) is less
than the current Fee Base ($119,700), so there is no change to the Fee Base as shown below. In Account Year 7, the Fee Base is reset. Your Income Benefit Base ($114,000) plus your Stored Income Balance
($17,100) less your Annual income Amount ($5,700), results in an amount of
$125,400, an amount that is greater than the previous Fee Base
($119,700). | ||||||
|
|
|
Stored
Income Balance |
| ||
Year |
Income Benefit
Base |
Annual Income
Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
4 |
$114,000 |
$5,700 |
$11,400 |
$11,400 |
$0 |
$119,700 |
5 |
$114,000 |
$5,700 |
$5,700 |
$0 |
$5,700 |
$119,700 |
6 |
$114,000 |
$5,700 |
$11,400 |
$0 |
$11,400 |
$119,700 |
7 |
$114,000 |
$5,700 |
$17,100 |
$0 |
$17,100 |
$125,400 |
On each Account Anniversary thereafter, your Fee Base is recalculated and reset if necessary. |
Assume that you are 60 years old when you purchase a Contract with an initial Purchase Payment of $100,000, and
that you elect to participate in IOD II Plus with single-life coverage. (If
you selected joint-life coverage, the numbers shown in the
example could be different.) Your Income Benefit Base and your IOD II Plus Bonus Base are equal to your initial Purchase Payment. Your Annual Income Amount is $5,000 (5% of your Income Benefit Base). The
example assumes you are in the IOD II Plus Bonus Period. |
In each of the five examples, Account Values shown are as of the last day of each Account Quarter. Adjustments are
made on the day a Purchase Payment or withdrawal is made. |
The Account Values on each of your four Account Quarters are $113,000, $108,000, $90,000, and $103,000,
respectively. No additional Purchase Payments are made and no withdrawals are
taken, so no adjustments to these values are necessary. The
highest adjusted quarterly value is $113,000. Both your new Income Benefit Base and IOD II Plus Bonus Base are set to equal $113,000 since that amount exceeds your previous Income Benefit Base
increased by 7% of your IOD II Plus Bonus Base ($100,000 +
$7,000). |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
n/a |
$113,000 |
$100,000 |
End of Second Quarter |
$108,000 |
n/a |
$108,000 |
$100,000 |
End of Third Quarter |
$90,000 |
n/a |
$90,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$103,000 |
n/a |
$103,000 |
$100,000 |
Highest Quarterly Value (after
adjustments) |
|
|
$113,000 |
|
Stored Income Balance at end of fourth
quarter |
n/a (since you are in the IOD II Plus Bonus Period) | |||
Step-up comparison |
Is $113,000 greater than $100,000 + $7,000? Yes, so step-up.
| |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$113,000 |
Highest Quarterly Value (after adjustments). | ||
New Annual Income Amount = |
$5,650 |
$113,000 x 5% | ||
New Stored Income Balance = |
n/a |
(since you are in the IOD II Plus Bonus Period) | ||
New IOD II Plus Bonus Base = |
$113,000 |
| ||
Please note: The end of the fourth Account Quarter and the Account Anniversary are the same day. We only make the
distinction to separate values before and after step-up. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$50,000 |
$163,000 |
$100,000 |
$50,000 Purchase Payment |
$163,000 |
n/a |
n/a |
$150,000 |
End of Second Quarter |
$158,000 |
n/a |
$158,000 |
$150,000 |
End of Third Quarter |
$140,000 |
n/a |
$140,000 |
$150,000 |
End of Fourth Quarter (before step-up) |
$153,000 |
n/a |
$153,000 |
$150,000 |
Highest Quarterly Value (after
adjustments) |
|
|
$163,000 |
|
Stored Income Balance at end of fourth
quarter |
n/a (since you are in the IOD II Plus Bonus Period) | |||
Step-up comparison |
Is $163,000 greater than $150,000 + $10,500? Yes, so step-up.
| |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$163,500 |
Highest Quarterly Value (after adjustments). | ||
New Annual Income Amount = |
$8,150 |
$163,500 x 5% | ||
New Stored Income Balance = |
n/a |
(since you are in the IOD II Plus Bonus Period) | ||
New IOD II Plus Bonus Base = |
$163,000 |
| ||
Please note: Since the additional Purchase Payment occurred after the first Account Quarter, the first Account
Quarter value was adjusted. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$4,000 |
$109,000 |
$100,000 |
$4,000 withdrawal |
$109,000 |
n/a |
n/a |
$100,000 |
End of Second Quarter |
$104,000 |
n/a |
$104,000 |
$100,000 |
End of Third Quarter |
$86,000 |
n/a |
$86,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$99,000 |
n/a |
$99,000 |
$100,000 |
Highest Quarterly Value (after
adjustments) |
|
|
$109,000 |
|
Stored Income Balance at end of fourth
quarter |
n/a (since you are in the IOD II Plus Bonus Period) | |||
Step-up comparison |
Is $109,000 greater than $100,000 + $0 (no bonus since withdrawal taken)?
Yes, so step-up. | |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$109,000 |
Highest Quarterly Value (after adjustments). | ||
New Annual Income Amount = |
$5,450 |
$109,000 x 5% | ||
New Stored Income Balance = |
n/a |
(since you are in the IOD II Plus Bonus Period) | ||
New IOD II Plus Bonus Base = |
$109,000 |
| ||
Please note: Since the withdrawal occurred after the first Account Quarter, the first Account Quarter value was
adjusted. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$45,213 |
$67,787 |
$100,000 |
$40,000 withdrawal |
$59,000 |
n/a |
n/a |
$62,766 |
End of Second Quarter |
$68,000 |
n/a |
$68,000 |
$62,766 |
End of Third Quarter |
$50,000 |
n/a |
$50,000 |
$62,766 |
End of Fourth Quarter (before step-up) |
$63,000 |
n/a |
$63,000 |
$62,766 |
Highest Quarterly Value (after
adjustments) |
|
|
$68,000 |
|
Stored Income Balance at end of fourth
quarter |
n/a (since you are in the IOD II Plus Bonus Period) | |||
Step-up comparison |
Is $68,000 greater than $62,766 + $0 (no bonus since withdrawal taken)?
Yes, so step-up. | |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$68,000 |
Highest Quarterly Value (after adjustments). | ||
New Annual Income Amount = |
$3,400 |
$68,000 x 5% | ||
New Stored Income Balance = |
n/a |
(since you are in the IOD II Plus Bonus Period) | ||
New IOD II Plus Bonus Base = |
$68,000 |
|
(1) |
Reduce the end of First Quarter Account Value by the Annual Income Amount less any prior withdrawals taken in that Account Year |
= |
$113,000 |
|
- $5,000 |
|
= |
$108,000 |
(2) |
Adjust the Account Value for the first Account Quarter |
= |
$108,000 x |
( |
$99,000 - $40,000 |
) |
= |
$67,787 |
$99,000 - $5,000 | ||||||||
|
The total adjustment |
= |
$113,000 |
|
- $67,787 |
|
= |
$45,213 |
Using the facts of the above example where no withdrawals or additional premiums have taken place, assume that for Account Year 2 you have elected to begin the Stored Income Period. As stated in the above example the
Income Benefit Base is $113,000 beginning of Account Year 2. Your Annual
Income Amount is $5,650 (5% of your Income Benefit Base).
Because you have elected to begin the Stored Income Period, your Stored Income Balance is initially equal to your Annual Income Amount ($5,650). |
The Account Values on each of your four Account Quarters for Account Year 2 are $105,000, $111,000, $116,000,
and $120,000, respectively. No additional Purchase Payments are made and no
withdrawals are taken, so no adjustments to these values are
necessary. The highest adjusted quarterly value is $120,000. Your new Income Benefit Base is set to equal $114,350 ($120,000 - $5,650) since that amount exceeds your previous Income Benefit
Base. |
Time |
Account Value |
Adjustment for subsequent Purchase Payments and withdrawals |
Account Value (after subsequent adjustments) |
Income Benefit Base |
End of First Quarter |
$105,000 |
n/a |
$105,000 |
$113,000 |
End of Second Quarter |
$111,000 |
n/a |
$111,000 |
$113,000 |
End of Third Quarter |
$116,000 |
n/a |
$116,000 |
$113,000 |
End of Fourth Quarter (before step-up) |
$120,000 |
n/a |
$120,000 |
$113,000 |
Highest Quarterly Value (after
adjustments) |
|
|
$120,000 |
|
Stored Income Balance at end of fourth
quarter |
$5,650 | |||
Step-up comparison |
Is ($120,000 - $5,650) greater than $113,000? Yes, so step-up.
| |||
On the Account Anniversary (after step-up): | ||||
New Income Benefit Base = |
$114,350 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance | ||
New Annual Income Amount = |
$5,718 |
$114,350 x 5% | ||
New Stored Income Balance = |
$11,367 |
| ||
New IOD II Plus Bonus Base = |
n/a |
No longer applicable for the Stored Income Period | ||
Please note: The end of the fourth Account Quarter and the Contract Anniversary are the same day. We only make the
distinction to separate values before and after step-up. |
Annual Withdrawal Amount: |
The total guaranteed amount available for withdrawal each Account Year
during your life, provided that you comply with certain conditions. The
Annual Withdrawal Amount is equal to your current Withdrawal
Benefit Base multiplied by your Lifetime Withdrawal
Percentage. (You should be aware that certain actions you take could significantly reduce the
amount of your Annual Withdrawal Amount.)
|
Early Withdrawal: |
Any withdrawal taken prior to your RIE II Coverage Date. |
Excess Withdrawal: |
Any withdrawal taken after your RIE II Coverage Date that exceeds your
Annual Withdrawal Amount (or your Required Minimum Distribution
Amount, if greater). |
Lifetime Withdrawal Percentage: |
The percentage used to calculate your Annual Withdrawal Amount. |
RIE II Bonus Base: |
The amount on which bonuses are calculated. The RIE II Bonus Base is
equal to the sum of your Purchase Payments, increased by any
“step-ups” (described below) and reduced
proportionately by any withdrawal taken prior to your RIE II
Coverage Date or any Excess Withdrawals (see “Excess
Withdrawals” under “Withdrawals Under RIE II”). |
RIE II Bonus Period: |
A ten-year period commencing on the Issue Date and ending on your tenth
Account Anniversary. If you “step up” RIE II (described below)
during the RIE II Bonus Period, the RIE II Bonus Period is
extended to ten years from the date of the
step-up. |
RIE II Coverage Date: |
Your Issue Date if you are at least age 59 at issue; otherwise, the first
Account Anniversary after you attain age 59. |
Withdrawal Benefit Base: |
The amount used to calculate (1) your Annual Withdrawal Amount and (2)
your “RIE II Fee” (see “Cost of RIE
II”). |
You and Your: |
The terms “you” and “your” refer to the oldest living Participant or the
surviving spouse of the oldest Participant, as described under “Death
of Participant Under RIE II with Joint-Life Coverage.”
In the case of a non-natural Participant, these terms refer to
the oldest living Annuitant. |
Your Age on the Date of the
First Withdrawal After
Your RIE II Coverage
Date* |
Lifetime Withdrawal Percentage |
59 - 64 |
4% |
65 - 74 |
5% |
75 - 79 |
6% |
80 or older |
7% |
Your Age on the Date of the
First Withdrawal After
Your RIE II Coverage
Date* |
Lifetime Withdrawal Percentage |
59 - 69 |
5% |
70 - 79 |
6% |
80 or older |
7% |
Assume that you are age 65 when your Contract is issued with an initial Purchase Payment of $100,000 and that you
elected to participate in RIE II with single-life coverage. (If you selected
joint-life coverage the numbers shown in the example could be
different.) Your Withdrawal Benefit Base and your RIE II Bonus Base are each set equal to your initial Purchase Payment on your Issue Date. Because you reached age 59 prior to your Issue Date, your RIE II
Coverage Date is your Issue Date. You can begin at any time to withdraw up to
your Annual Withdrawal Amount each Account Year without
reducing your Withdrawal Benefit Base. During the RIE II Bonus Period, your Withdrawal Benefit Base will increase by 7% of your RIE II Bonus Base each Account Year in which you do not take
a withdrawal. By deferring your withdrawals during a RIE II Bonus Period you
will increase your Withdrawal Benefit Base, which in turn may
maximize your Annual Withdrawal Amount. After the RIE II Bonus Period, you will still be eligible to take your Annual Withdrawal Amount each year and to step-up your Withdrawal Benefit Base.
However, you will no longer be eligible for the 7% bonus each year. (For
convenience, assume that the investment performance on your
underlying investments remains constant throughout the life of your Contract, except for Account Year 2.) | |||||
Assume that, because of good investment performance of the Designated Funds during Account Year 2, your Account
Value has grown to $125,000 on your second Account Anniversary. Your Contract
is, therefore, eligible for an automatic step-up of its
Withdrawal Benefit Base and RIE II Bonus Base. Assume that we have not increased the percentage used to calculate the RIE II Fee on newly issued Contracts; therefore we will step up your Withdrawal
Benefit Base and your RIE II Bonus Base to $125,000. Your new Annual
Withdrawal Amount will be 5% of your new Withdrawal Benefit
Base, or $6,250. Going forward, your new RIE II Bonus Base will be $125,000, unless increased by another step-up or reduced by an Excess Withdrawal, and your RIE II Bonus Period will now end on
your 12th Account Anniversary (i.e., ten years after the step-up). All values
shown are as of the beginning of the Account Year.
| |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
RIE II Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$5,000 |
$0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$5,350 |
$0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$6,250 |
$0 |
Assume you take your first withdrawal when you are age 71 in Account Year 7. Using the chart on the previous page,
we set your Lifetime Withdrawal Percentage at 5%. Your Annual Withdrawal
Amount will be equal to 5% of your Withdrawal Benefit Base. You
can begin withdrawing up to $8,000 each Account Year without reducing your Withdrawal Benefit Base, as shown in the following table: |
| |||||
4 |
$125,000 |
$133,750 |
$125,000 |
$6,688 |
$0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$7,125 |
$0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$7,563 |
$0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$8,000 |
$8,000 |
8 |
$117,000 |
$160,000 |
$125,000 |
$8,000 |
$8,000 |
Assume in Account Year 9, you defer taking a withdrawal. Your Withdrawal Benefit Base will increase by $8,750
which is 7% of your RIE II Bonus Base ($125,000). Your new Annual Withdrawal
Amount will be set equal to $8,438, which is 5% of your new
Withdrawal Benefit Base ($168,750), as shown below: | |||||
| |||||
9 |
$109,000 |
$160,000 |
$125,000 |
$8,000 |
$0 |
10 |
$109,000 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
Assume that in Account Year 14, you again decide to defer taking a withdrawal. Your Withdrawal Benefit Base will
not be increased because you are no longer in the RIE II Bonus Period, as
your RIE II Bonus Period ends 10 years after the previous
step-up. | |||||
| |||||
11 |
$100,563 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
12 |
$92,125 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
13 |
$83,688 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
14 |
$75,250 |
$168,750 |
$125,000 |
$8,438 |
$0 |
15 |
$75,250 |
$168,750 |
$125,000 |
$8,438 |
$8,438 |
Your new RIE II Bonus Base |
= |
BB x |
( |
AV - WD |
) |
AV - AWA | |||||
Your new Withdrawal Benefit Base |
= |
WBB x |
( |
AV - WD |
) |
AV - AWA |
BB |
= |
Your RIE II Bonus Base immediately prior to the Excess Withdrawal. |
WBB |
= |
Your Withdrawal Benefit Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
AWA |
= |
Your Annual Withdrawal Amount minus any prior partial withdrawals taken during the current Account Year. |
Using the facts of the above example, assume that
in Account Year 7, you take two withdrawals: a $4,000
withdrawal followed by a $6,000 withdrawal. Your first withdrawal reduces
your Account Value to $121,000 but does not affect your RIE II
Bonus Base or Withdrawal Benefit Base because it is not in excess of your Annual Withdrawal Amount. Your second withdrawal (when combined with the first) is in excess of your $8,000 Annual Withdrawal
Amount. After your second withdrawal, your RIE II Bonus Base and your
Withdrawal Benefit Base will be reduced as
follows: | ||||
Your new RIE II Bonus Base |
= |
$125,000 |
x |
$121,000 - $6,000 |
$121,000 - ($8,000 - $4,000) | ||||
|
|
|
|
|
|
= |
$125,000 |
x |
$115,000 |
$117,000 | ||||
|
|
|
|
|
|
= |
$125,000 |
x |
0.98291 |
|
|
|
|
|
|
= |
$122,863 |
|
|
|
|
|
|
|
Your new Withdrawal Benefit Base |
= |
$160,000 |
x |
$121,000 - $6,000 |
$121,000 - ($8,000 - $4,000) | ||||
|
|
|
|
|
|
= |
$160,000 |
x |
$115,000 |
$117,000 | ||||
|
|
|
|
|
|
= |
$160,000 |
x |
0.98291 |
|
|
|
|
|
|
= |
$157,265 |
|
|
Beginning on your Account Anniversary and going forward, your new Annual Withdrawal Amount will be reduced to
5% of your new Withdrawal Benefit Base, or $7,863. |
Your new RIE II Bonus Base |
= |
BB x |
( |
AV – WD |
) |
AV | |||||
Your new Withdrawal Benefit Base |
= |
WBB x |
( |
AV - WD |
) |
AV |
BB |
= |
Your RIE II Bonus Base immediately prior to the Early Withdrawal. |
WBB |
= |
Your Withdrawal Benefit Base immediately prior to the Early Withdrawal. |
WD |
= |
The amount of the Early Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early Withdrawal. |
Assume that you are age 45 when your Contract is issued with an initial Purchase Payment of $100,000 and that you
elected to participate in RIE II with single-life coverage. (If you selected
joint-life coverage, the numbers shown in the example could be
different.) Your Withdrawal Benefit Base and your RIE II Bonus Base are each set equal to your initial Purchase Payment on your Issue Date. Your Withdrawal Benefit Base will increase by 7% of your RIE II
Bonus Base each year in which you do not take a withdrawal. Your RIE II
Coverage Date will not occur until your 15th Account
Anniversary (the first Account Anniversary after you reach age 59). Any withdrawals you take prior to that time will be Early Withdrawals. | |||||
Assume that because of good investment performance of the Designated Funds during Account Year 2, your Account
Value has grown to $125,000 on your second Account Anniversary. Your Contract
is therefore eligible for an automatic step-up of its
Withdrawal Benefit Base and RIE II Bonus Base. Assume that we have not increased the percentage used to calculate the RIE II Fee on newly issued Contracts; therefore we will step-up your Withdrawal
Benefit Base and your RIE II Bonus Base to $125,000. | |||||
Assume that, in your Account Year 7, you withdraw $10,000. Because you are age 51 (and younger than age 59), this
is an Early Withdrawal. All values shown are as of the beginning of the Account Year. | |||||
Account Year |
Account Value |
Withdrawal Benefit Base |
RIE II Bonus Base |
Annual Withdrawal
Amount |
Withdrawals |
1 |
$100,000 |
$100,000 |
$100,000 |
$0 |
$0 |
2 |
$100,000 |
$107,000 |
$100,000 |
$0 |
$0 |
3 |
$125,000 |
$125,000 |
$125,000 |
$0 |
$0 |
4 |
$125,000 |
$133,750 |
$125,000 |
$0 |
$0 |
5 |
$125,000 |
$142,500 |
$125,000 |
$0 |
$0 |
6 |
$125,000 |
$151,250 |
$125,000 |
$0 |
$0 |
7 |
$125,000 |
$160,000 |
$125,000 |
$0 |
$10,000 |
At this point, your RIE II Bonus Base and your Withdrawal Benefit Base will be recalculated as follows: | ||||
| ||||
Your new RIE II Bonus Base |
= |
$125,000 |
x |
$125,000 - $10,000 |
$125,000 | ||||
|
|
|
|
|
|
= |
$125,000 |
x |
$115,000 |
$125,000 | ||||
|
|
|
|
|
|
= |
$125,000 |
x |
0.92000 |
|
|
|
|
|
|
= |
$115,000 |
|
|
|
|
|
|
|
Your new Withdrawal Benefit Base |
= |
$160,000 |
x |
$125,000 - $10,000 |
$125,000 | ||||
|
|
|
|
|
|
= |
$160,000 |
x |
$115,000 |
$125,000 | ||||
|
|
|
|
|
|
= |
$160,000 |
x |
0.92000 |
|
|
|
|
|
|
= |
$147,200 |
|
|
Your Annual Withdrawal Amount will still be $0 because you have not reached your RIE II Coverage Date. |
Your Age at Step-up* |
Lifetime Withdrawal Percentage |
59 - 64 |
4% |
65 - 74 |
5% |
75 - 79 |
6% |
80 or older |
7% |
Your Age at Step-up* |
Lifetime Withdrawal Percentage |
59 - 69 |
5% |
70 - 79 |
6% |
80 or older |
7% |
Assume that you are 65 years old when you purchase a Contract with an initial Purchase Payment of $100,000, and
that you elect to participate in RIE II with single-life coverage. (If you
selected joint-life coverage, the numbers shown in the example
could be different.) Your Withdrawal Benefit Base and your RIE II Bonus Base are each equal to your initial Purchase Payment. Your Annual Withdrawal Amount is $5,000 (5% of your Withdrawal Benefit Base). |
The Account Values on each of your four Account Quarters are $113,000, $108,000, $90,000, and $103,000,
respectively. No additional Purchase Payments are made and no withdrawals are
taken, so no adjustments to these values are necessary. The
highest adjusted quarterly value is $113,000. Your new Withdrawal Benefit Base is set to equal to $113,000 since that amount exceeds your previous Withdrawal Benefit Base increased by 7% of your RIE II
Bonus Base ($100,000 + $7,000). |
Time |
Account
Value |
Adjustment for
subsequent Purchase Payments and withdrawals |
Account Value
(after subsequent
adjustments) |
Withdrawal Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
n/a |
$113,000 |
$100,000 |
End of Second Quarter |
$108,000 |
n/a |
$108,000 |
$100,000 |
End of Third Quarter |
$90,000 |
n/a |
$90,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$103,000 |
n/a |
$103,000 |
$100,000 |
Highest Quarterly Value (after adjustments)
|
|
$113,000 |
| |
Step-up comparison |
Is $113,000 greater than $100,000 + $7,000? Yes, so step-up. |
|||
On the Account Anniversary (after step-up)
| ||||
New Withdrawal Benefit Base = |
$113,000 |
Highest Quarterly Value (after
adjustments) | ||
New Annual Withdrawal Amount = |
$5,650 |
$113,000 x 5% | ||
New RIE II Bonus Base = |
$113,000 |
| ||
Please note: The end of the fourth Account Quarter and the Account Anniversary are the same day. We only make the
distinction to separate values before and after step-up. |
Time |
Account Value |
Adjustment for subsequent
Purchase Payments
and withdrawals |
Account Value (after subsequent adjustments) |
Withdrawal Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$50,000 |
$163,000 |
$100,000 |
$50,000 Purchase Payment |
$163,000 |
n/a |
n/a |
$150,000 |
End of Second Quarter |
$158,000 |
n/a |
$158,000 |
$150,000 |
End of Third Quarter |
$140,000 |
n/a |
$140,000 |
$150,000 |
End of Fourth Quarter (before step-up) |
$153,000 |
n/a |
$153,000 |
$150,000 |
Highest Quarterly Value (after adjustments)
|
|
$163,000 |
| |
Step-up comparison |
Is $163,000 greater than $150,000 + $10,500? Yes, so step-up.
| |||
On the Account Anniversary (after step-up) | ||||
New Withdrawal Benefit Base = |
$163,000 |
Highest Quarterly Value (after adjustments) | ||
New Annual Withdrawal Amount = |
$8,150 |
$163,000 x 5% | ||
New RIE II Bonus Base = |
$163,000 |
| ||
Please note: Since the additional Purchase Payment occurred after the first Account Quarter, the first Account
Quarter value was adjusted. |
Time |
Account Value |
Adjustment for subsequent
Purchase Payments
and withdrawals |
Account Value (after subsequent adjustments) |
Withdrawal Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
- $4,000 |
$109,000 |
$100,000 |
$4,000 withdrawal |
$109,000 |
n/a |
n/a |
$100,000 |
End of Second Quarter |
$104,000 |
n/a |
$104,000 |
$100,000 |
End of Third Quarter |
$86,000 |
n/a |
$86,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$99,000 |
n/a |
$99,000 |
$100,000 |
Highest Quarterly Value (after adjustments)
|
|
$109,000 |
| |
Step-up comparison |
Is $109,000 greater than $100,000 + $0 (no bonus since withdrawal taken)?
Yes, so step-up. | |||
On the Account Anniversary (after step-up) | ||||
New Withdrawal Benefit Base = |
$109,000 |
Highest Quarterly Value (after adjustments) | ||
New Annual Withdrawal Amount = |
$5,450 |
$109,000 x 5% | ||
New RIE II Bonus Base = |
$109,000 |
| ||
Please note: Since the withdrawal occurred after the first Account Quarter, the first Account Quarter value was
adjusted. |
Time |
Account Value |
Adjustment for subsequent
Purchase Payments
and withdrawals |
Account Value (after subsequent adjustments) |
Withdrawal Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
- $45,213 |
$67,787 |
$100,000 |
$40,000 withdrawal |
$59,000 |
n/a |
n/a |
$62,766 |
End of Second Quarter |
$68,000 |
n/a |
$68,000 |
$62,766 |
End of Third Quarter |
$50,000 |
n/a |
$50,000 |
$62,766 |
End of Fourth Quarter (before step-up) |
$63,000 |
n/a |
$63,000 |
$62,766 |
Highest Quarterly Value (after adjustments)
|
|
$68,000 |
| |
Step-up comparison |
Is $68,000 greater than $62,766 + $0 (no bonus since withdrawal taken)?
Yes, so step-up. | |||
On the Account Anniversary (after step-up) | ||||
New Withdrawal Benefit Base = |
$68,000 |
Highest Quarterly Value (after adjustments) | ||
New Annual Withdrawal Amount = |
$3,400 |
$68,000 x 5% | ||
New RIE II Bonus Base = |
$68,000 |
|
(1) |
Reduce the end of First Quarter Account Value by the Annual Withdrawal Amount less any prior withdrawals taken in that Account Year |
= |
$113,000 |
|
- $5,000 |
|
= $108,000 |
(2) |
Adjust the Account Value for the first Account Quarter |
= |
$108,000 x |
( |
$99,000 - $40,000 |
) |
= $67,787 |
$99,000 - $5,000 | |||||||
|
The total adjustment |
= |
$113,000 |
|
- $67,787 |
|
= $45,213 |
Age of Younger Spouse on
Date of the First Withdrawal After
Your RIE II Coverage
Date |
Lifetime Withdrawal Percentage |
59 - 64 |
4% |
65 - 74 |
5% |
75 - 79 |
6% |
80 or older |
7% |
Age of Younger Spouse on
Date of First Withdrawal After
Your RIE II Coverage
Date |
Lifetime Withdrawal Percentage |
59 - 69 |
5% |
70 - 79 |
6% |
80 or older |
7% |
Annual Income Amount: |
The amount added to your Stored Income Balance on each Account Anniversary
during your Stored Income Period. It is equal to your Income Benefit Base
multiplied by your Lifetime Income Percentage.
|
Early Withdrawal: |
Any withdrawal taken prior to your First Withdrawal Date. |
Excess Withdrawal: |
Any withdrawal taken after your First Withdrawal Date that exceeds your Stored
Income Balance (or your Required Minimum Distribution Amount, if
greater). |
Fee Base: |
The amount used to calculate your “IOD II Escalator Fee” (see “Cost of IOD II
Escalator”). |
First Withdrawal Date: |
Your Issue Date if you are at least age 59 at issue, otherwise the first Account
Anniversary after you attain age 59. |
Income Benefit Base: |
The amount used to calculate your Annual Income Amount for IOD II Escalator. |
Lifetime Income Percentage: |
The percentage used to calculate your Annual Income Amount. |
Stored Income Balance: |
The amount you may withdraw at any time after your First Withdrawal Date
without reducing your benefits under IOD II Escalator. |
Stored Income Period: |
A period beginning on your Issue Date if you are at least age 50 at issue,
otherwise the first Account Anniversary following your 50th birthday, ending
on your Annuity Commencement Date. |
You and Your: |
The terms “you” and “your” refer to the oldest living Participant or the surviving
spouse of the oldest Participant, as described under “Death of
Participant Under IOD II Escalator with Joint-Life
Coverage.” In the case of a non-natural Participant,
these terms refer to the oldest living Annuitant. |
Your Age at the Beginning of Your Stored Income Period* |
Lifetime Income Percentage |
50 - 64 |
4% |
65 - 74 |
5% |
75 - 79 |
6% |
80 or older |
7% |
Your Age at the Beginning of Your Stored Income Period* |
Lifetime Income Percentage |
50 - 69 |
5% |
70 - 79 |
6% |
80 or older |
7% |
Assume that you are age 65 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in IOD II Escalator with single-life coverage and
investment performance of the Designated Funds is constant over
the years. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. Your Lifetime
Income Percentage is 5%. Your Annual Income Amount is $5,000 (5% of your
Income Benefit Base). Therefore, $5,000 will be added each year
to your Stored Income Balance. All values shown are as of the beginning of the
Account Year. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
1 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$5,000 |
2 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$10,000 |
3 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$15,000 |
4 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$20,000 |
During your fifth Account Year, you use the full amount of your Stored Income Balance ($25,000) to increase your
Income Benefit Base. On your next Account Anniversary, your Income Benefit
Base will be increased to $125,000 and your Annual Income
Amount will be $6,250 (your Lifetime Income Percentage multiplied by your Income Benefit Base). Therefore $6,250 will be added each year to your Stored Income Balance unless your Annual Income
Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$25,000 |
6 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$6,250 |
7 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$12,500 |
8 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$18,750 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Assume instead that, during your fifth Account Year, you take a withdrawal of $25,000, thereby reducing your Stored
Income Balance to $0. On your next Account Anniversary, your Income Benefit
Base will remain at $100,000 and your Annual Income Amount
remains at $5,000 (your Lifetime Income Percentage multiplied by your Income Benefit Base). Therefore $5,000 will be added each year to your Stored Income Balance unless your Annual Income
Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$25,000 |
$0 |
6 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$5,000 |
7 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$10,000 |
8 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$15,000 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV - SB |
IBB |
= |
Your Income Benefit Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (or your Required Minimum Distribution Amount, if greater) immediately prior to the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
Using the same facts as the previous example,
assume that in your fifth Account Year you take a withdrawal of
$50,000, exceeding your Stored Income Balance. Assume that due to poor
investment performance during the fifth Account Year your
Account Value was $90,000 immediately prior to the withdrawal. Your Income Benefit Base will be reduced to $61,538 as shown below. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$50,000 |
$0 |
6 |
$50,000 |
$61,538 |
$3,077 |
$0 |
$3,077 |
7 |
$50,000 |
$61,538 |
$3,077 |
$0 |
$6,154 |
8 |
$50,000 |
$61,538 |
$3,077 |
$0 |
$9,231 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
$100,000 x |
( |
$90,000 - $50,000 |
) |
= $61,538 |
$90,000 - $25,000 |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV | |||||
Your new Stored Income Balance |
= |
SB x |
( |
AV - WD |
) |
AV |
IBB |
= |
Your Income Benefit Base immediately prior to the Early Withdrawal. |
SB |
= |
Your Stored Income Balance immediately prior to the Early Withdrawal. |
WD |
= |
The amount of the Early Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early Withdrawal. |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV - SB |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV |
Fee Base |
= |
Your Fee Base immediately prior to the Early/Excess Withdrawal. |
WD |
= |
The amount of the Early/Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (if any) immediately prior to the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early/Excess Withdrawal. |
Assume that you are age 65 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in IOD II Escalator with single-life coverage and
investment performance of the Designated Funds is constant over
the years. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. Your Lifetime
Income Percentage is 5%. Your Annual Income Amount is $5,000 (5% of your
Income Benefit Base). All values are shown as of the beginning of the Account Year unless otherwise stated. | ||||||
During the Stored Income Period, the Fee Base is reset at the beginning of the Account Year to equal your Income
Benefit Base plus your Stored Income Balance less your Annual Income Amount,
if that amount is greater than the previous Fee Base. For
example, in Account Year 4, the Fee Base is set equal to the Income Benefit Base ($100,000) plus the Stored Income Balance ($20,000) less your Annual Income Amount ($5,000) if that amount ($115,000) is
greater than the previous Fee Base ($110,000). |
||||||
|
|
|
Stored Income Balance |
| ||
Year |
Income Benefit Base |
Annual Income Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
1 |
$100,000 |
$5,000 |
$5,000 |
$0 |
$5,000 |
$100,000 |
2 |
$100,000 |
$5,000 |
$10,000 |
$0 |
$10,000 |
$105,000 |
3 |
$100,000 |
$5,000 |
$15,000 |
$0 |
$15,000 |
$110,000 |
4 |
$100,000 |
$5,000 |
$20,000 |
$0 |
$20,000 |
$115,000 |
Assume, instead, that in your fourth Account Year you take a $20,000 withdrawal. At the beginning of your fifth
Account Year, your Income Benefit Base ($100,000) plus your Stored Income
Balance ($5,000) less your Annual Income Amount ($5,000) is
less than the current Fee Base ($115,000), so there is no change to the Fee Base, as shown below. | ||||||
|
|
|
Stored Income Balance |
| ||
Year |
Income Benefit Base |
Annual Income Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
4 |
$100,000 |
$5,000 |
$20,000 |
$20,000 |
$0 |
$115,000 |
5 |
$100,000 |
$5,000 |
$5,000 |
$0 |
$5,000 |
$115,000 |
6 |
$100,000 |
$5,000 |
$10,000 |
$0 |
$10,000 |
$115,000 |
7 |
$100,000 |
$5,000 |
$15,000 |
$0 |
$15,000 |
$115,000 |
8 |
$100,000 |
$5,000 |
$20,000 |
$0 |
$20,000 |
$115,000 |
9 |
$100,000 |
$5,000 |
$25,000 |
$0 |
$25,000 |
$120,000 |
On each Account Anniversary thereafter, your Fee Base is recalculated and reset if necessary. |
Your Age at Step-up* |
Lifetime Income Percentage |
50 - 64 |
4% |
65 - 74 |
5% |
75 - 79 |
6% |
80 or older |
7% |
Your Age at Step-up* |
Lifetime Income Percentage |
50 - 69 |
5% |
70 - 79 |
6% |
80 or older |
7% |
Assume that you are 65 years old when you purchase a Contract with an initial
Purchase Payment of $100,000, and that you elect to participate
in IOD II Escalator with single-life coverage. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase
Payment. Your Annual Income Amount is $5,000 (5% of your Income Benefit
Base). Your initial Stored Income Balance is
$5,000. | |||||
In each of the four examples, Account Values shown are as of the last day of
each Account Quarter. Adjustments are made on the day a
Purchase Payment or withdrawal is made. | |||||
The Account Values on each of your four Account Quarters are $113,000,
$108,000, $90,000, and $103,000, respectively. No additional
Purchase Payments are made and no withdrawals are taken, so no adjustments to these values are necessary. Your Stored Income Balance at the end of the fourth Account Quarter is $5,000. The highest
adjusted quarterly value is $113,000. Your new Income Benefit Base is set to
equal $108,000 ($113,000 - $5,000) since that amount exceeds
your previous Income Benefit Base. | |||||
|
|
|
|
|
|
Time |
Account
Value |
Adjustment for
subsequent Purchase Payments and withdrawals |
Account Value
(after subsequent
adjustments) |
Income
Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
n/a |
$113,000 |
$100,000 |
End of Second Quarter |
$108,000 |
n/a |
$108,000 |
$100,000 |
End of Third Quarter |
$90,000 |
n/a |
$90,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$103,000 |
n/a |
$103,000 |
$100,000 |
Highest Quarterly Value (after adjustments)
|
$113,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$5,000 | |||
Step-up comparison |
Is ($113,000 - $5,000) greater than $100,000? Yes, so step-up. |
|||
On the Account Anniversary (after step-up)
|
|
| ||
New Income Benefit Base = |
$108,000 |
Highest Quarterly Value (after adjustments) less the Stored
Income Balance. | ||
New Annual Income Amount = |
$5,400 |
$108,000 x 5% | ||
New Stored Income Balance = |
$10,400 |
Stored Income Balance at the end of the fourth Account
Quarter plus the new Annual Income Amount. | ||
Please note: The end of the fourth Account Quarter and the Account Anniversary are the same day. We only make the
distinction to separate values before and after step-up. |
Time |
Account Value |
Adjustment for subsequent
Purchase Payments
and withdrawals |
Account Value (after subsequent adjustments) |
Income
Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
$50,000 |
$163,000 |
$100,000 |
$50,000 Purchase Payment |
$163,000 |
n/a |
n/a |
$150,000 |
End of Second Quarter |
$158,000 |
n/a |
$158,000 |
$150,000 |
End of Third Quarter |
$140,000 |
n/a |
$140,000 |
$150,000 |
End of Fourth Quarter (before step-up) |
$153,000 |
n/a |
$153,000 |
$150,000 |
Highest Quarterly Value (after adjustments)
|
$163,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$7,500 (initial $5,000 plus 5% x $50,000) | |||
Step-up comparison |
Is ($163,000 - $7,500) greater than $150,000? Yes, so step-up.
| |||
On the Account Anniversary (after step-up) |
|
| ||
New Income Benefit Base = |
$155,500 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance. | ||
New Annual Income Amount = |
$7,775 |
$155,500 x 5% | ||
New Stored Income Balance = |
$15,275 |
Stored Income Balance at the end of the fourth Account Quarter plus the new Annual Income Amount. | ||
Please note: Since the additional Purchase Payment occurred after the first Account Quarter, the first Account
Quarter value was adjusted. |
Time |
Account Value |
Adjustment for subsequent
Purchase Payments
and withdrawals |
Account Value (after subsequent adjustments) |
Income
Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
- $4,000 |
$109,000 |
$100,000 |
$4,000 withdrawal |
$109,000 |
n/a |
n/a |
$100,000 |
End of Second Quarter |
$104,000 |
n/a |
$104,000 |
$100,000 |
End of Third Quarter |
$86,000 |
n/a |
$86,000 |
$100,000 |
End of Fourth Quarter (before step-up) |
$99,000 |
n/a |
$99,000 |
$100,000 |
Highest Quarterly Value (after adjustments)
|
$109,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$1,000 (initial $5,000 less $4,000 withdrawal) |
|||
Step-up comparison |
Is ($109,000 - $1,000) greater than $100,000? Yes, so step-up.
| |||
On the Account Anniversary (after step-up) |
|
| ||
New Income Benefit Base = |
$108,000 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance. | ||
New Annual Income Amount = |
$5,400 |
$108,000 x 5% | ||
New Stored Income Balance = |
$6,400 |
Stored Income Balance at the end of the fourth Account Quarter plus the new Annual Income Amount. | ||
Please note: Since the withdrawal occurred after the first Account Quarter, the first Account Quarter value was
adjusted. |
Time |
Account Value |
Adjustment for subsequent
Purchase Payments
and withdrawals |
Account Value (after subsequent adjustments) |
Income
Benefit Base |
Issue |
$100,000 |
n/a |
n/a |
$100,000 |
End of First Quarter |
$113,000 |
- $45,213 |
$67,787 |
$100,000 |
$40,000 withdrawal |
$59,000 |
n/a |
n/a |
$62,766 |
End of Second Quarter |
$68,000 |
n/a |
$68,000 |
$62,766 |
End of Third Quarter |
$50,000 |
n/a |
$50,000 |
$62,766 |
End of Fourth Quarter (before step-up) |
$63,000 |
n/a |
$63,000 |
$62,766 |
Highest Quarterly Value (after adjustments)
|
$68,000 |
| ||
Stored Income Balance at end of fourth
quarter |
$0 | |||
Step-up comparison |
Is ($68,000 - $0) greater than $62,766? Yes, so step-up.
| |||
On the Account Anniversary (after step-up) |
|
| ||
New Income Benefit Base = |
$68,000 |
Highest Quarterly Value (after adjustments) less the Stored Income Balance. | ||
New Annual Income Amount = |
$3,400 |
$68,000 x 5% | ||
New Stored Income Balance = |
$3,400 |
Stored Income Balance at the end of the fourth Account Quarter plus the new Annual Income Amount. |
(1) |
Reduce the end of First Quarter Account Value by the Stored Income Balance |
= |
$113,000 |
|
- $5,000 |
|
= |
$108,000 |
(2) |
Adjust Account Value for the first Account Quarter |
= |
$108,000 x |
( |
$99,000 - $40,000 |
) |
= |
$67,787 |
$99,000 - $5,000 | ||||||||
|
The total adjustment |
= |
$113,000 |
|
- $67,787 |
|
= |
$45,213 |
Age of Younger Spouse at Step-up |
Lifetime Income Percentage |
50 - 64 |
4% |
65 - 74 |
5% |
75 - 79 |
6% |
80 or older |
7% |
Age Younger Spouse at Step-up |
Lifetime Income Percentage |
50 - 69 |
5% |
70 - 79 |
6% |
80 or older |
7% |
Retirement Asset Protector Benefit Base: |
An amount equal to the sum of all Purchase Payments made during the first year following your Issue Date, decreased by any partial withdrawals taken and increased by any step-ups as described under “Step-Up Under Retirement Asset Protector.” |
GMAB Maturity Date: |
The date when Retirement Asset Protector matures. If you are younger than 85 on the Issue Date, your GMAB Maturity Date is the later of your 10th Account Anniversary or 10 years from the date of your most recent step-up. (See “Step-Up Under Retirement Asset
Protector.”) If you are 85 on the Issue Date, your GMAB Maturity
Date is your Maximum Annuity Commencement Date.
|
You and Your: |
Under Retirement Asset Protector, the terms “you” and “your” refer
to the oldest Participant or the surviving spouse of the oldest
Participant as described under “Death of Participant
Under Retirement Asset Protector.” In the case of a
non-natural Participant, these terms refer to the oldest
Annuitant. |
•Assume that you purchased a Contract on March 7, 2007 with
an initial Purchase Payment of $100,000 and you selected
Retirement Asset Protector. Your Retirement Asset Protector Benefit Base equals your Purchase Payment amount of $100,000. |
•Assume you make an additional Purchase Payment of $50,000
on April 7, 2007, thus increasing your Retirement Asset
Protector Benefit Base to $150,000. |
•Assume you make no withdrawals or additional Purchase
Payments and you do not step-up prior to the GMAB Maturity
Date on March 7, 2017. |
•Assume that, because of poor investment performance, your
Account Value on March 7, 2017 is $135,000. The excess of your
Retirement Asset Protector Benefit Base over your Account Value is $15,000 ($150,000 - $135,000). The total amount of Retirement Asset Protector Fees paid is equal to
the sum of the value of the Retirement Asset Protector Benefit Bases on the
last day of each Account Quarter since the Inception Date
($150,000 x 40)
times one quarter of
the annual Retirement Asset Protector Fee (0.35% ÷ 4). In
this case, the total amount of rider fees paid is $5,250. Therefore, we will credit $15,000 to your Account Value. |
•Assume instead that, because of better
investment performance, your Account Value on March 7, 2017,
is $155,000. Because your Account Value is greater than your Retirement Asset Protector Benefit Base, your Account Value will be credited with the total amount of Retirement Asset
Protector Fees paid. In this case, the amount will be $5,250.
|
Retirement Asset Protector Benefit Base immediately before partial withdrawal |
X |
Account Value immediately after partial withdrawal |
Account Value immediately before partial withdrawal |
•Assume that you purchased a Contract on March 7, 2007 with
an initial Purchase Payment of $100,000 and you selected
Retirement Asset Protector. Your Retirement Asset Protector Benefit Base equals your Purchase Payment amount of $100,000. |
•Assume that, on March 10, 2009, your Account Value is
$80,000. Assume further that you take a withdrawal of $10,000
on that date, thus reducing your Account Value to $70,000. Your Retirement Asset Protector Benefit Base is reduced proportionally to the amount withdrawn. Therefore your new
Retirement Asset Protector Benefit Base is $100,000 x ($70,000 ÷
$80,000), or $87,500. |
•Assume you make no additional withdrawals and you do not
step-up prior to the GMAB Maturity Date on March 7,
2017. |
•Assume that, because of investment performance, your
Account Value on March 7, 2017 is $80,000. The excess of your
Retirement Asset Protector Benefit Base over your Account Value is $7,500 ($87,500 - $80,000). The total amount of Retirement Asset Protector Fees paid is equal to the sum of
the value of your Retirement Asset Protector Benefit Bases on the last day
of each Account Quarter since the Issue Date [($100,000 x 8) +
($87,500 x 32)]
times one quarter of
your annual Retirement Asset Protector Fee (0.35% ÷ 4).
In this case, the total amount of rider fees paid is $3,150. Therefore, we will credit $7,500 to your Account Value. |
•Assume that you purchased a Contract on March 7, 2008 with
an initial Purchase Payment of $100,000 and you selected
Retirement Asset Protector. Your Retirement Asset Protector Benefit Base equals your Purchase Payment amount of $100,000. |
•Assume that, on March 7, 2009, your Account Value is
$118,000. Because your Account Value is greater than your
Retirement Asset Protector Benefit Base, you elect to step-up to a new ten-year period with a new Retirement Asset Protector Benefit Base of $118,000. Your new GMAB Maturity
Date will be March 7, 2019. |
•Assume you make no withdrawals prior to the GMAB Maturity
Date on March 7, 2019. |
•Assume that your Account Value on March 7, 2019 is
$108,000. The excess of your Retirement Asset Protector
Benefit Base over your Account Value is $10,000 ($118,000 - $108,000). Your total Retirement Asset Protector Fee is equal to the sum of all fees applied prior to the step-up plus the
sum of all fees applied after the step-up. |
The sum of all fees applied prior to the
step-up are equal to the sum of the value of the Benefit Bases
prior to the step-up multiplied by the quarterly fee percentage applicable
prior to the step-up [($100,000 x 4) x (0.35% ÷ 4)].
Similarly, the sum of all fees applied after the step-up are equal to the sum of the value of the Benefit Bases after the step-up multiplied by the quarterly fee percentage
applicable after the step-up [($118,000 x 40) x (0.75% ÷
4)]. |
In this case, the total amount of rider
fees paid is $9,200. Therefore, we will credit $10,000 to your
Account Value. |
Annual Income Amount: |
The amount added to your Stored Income Balance on each Account Anniversary
during your Stored Income Period. It is equal to your Income Benefit Base
multiplied by your Lifetime Income Percentage.
|
Early Withdrawal: |
Any withdrawal taken prior to your First Withdrawal Date. |
Excess Withdrawal: |
Any withdrawal taken after your First Withdrawal Date that exceeds your Stored
Income Balance (or your Yearly Required Minimum Distribution Amount, if
greater). |
Fee Base: |
The amount used to calculate your “IOD III Escalator Fee” (see “Cost of IOD III
Escalator” in this Appendix). |
First Withdrawal Date: |
Your Issue Date if you are at least age 59 at issue, otherwise the first Account
Anniversary after you attain age 59. |
Income Benefit Base: |
The amount used to calculate your Annual Income Amount for IOD III Escalator. |
Lifetime Income Percentage: |
The percentage used to calculate your Annual Income Amount. |
Stored Income Balance: |
The amount you may withdraw at any time after your First Withdrawal Date
without reducing your benefits under IOD III Escalator. |
Stored Income Period: |
A period beginning on your Issue Date if you are at least age 50 at issue,
otherwise the first Account Anniversary following your 50th birthday, ending
on your Annuity Commencement Date. |
You and Your: |
The terms “you” and “your” refer to the oldest living Participant or the surviving
spouse of the oldest Participant, as described in this Appendix under
“Death of Participant Under IOD III Escalator with
Joint-Life Coverage.” In the case of a non-natural
Participant, these terms refer to the oldest living Annuitant. |
Your Age at the Beginning of Your Stored Income Period* |
Lifetime Income Percentage |
50 - 64 |
4% |
65 - 79 |
5% |
80 or older |
6% |
Assume that you are age 65 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in IOD III Escalator with single-life coverage and
investment performance of the Designated Funds is constant over
the years. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. Your Lifetime
Income Percentage is 5%. Your Annual Income Amount is $5,000 (5% of your
Income Benefit Base). Therefore, $5,000 will be added each year
to your Stored Income Balance. All values shown are as of the beginning of the
Account Year. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
1 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$5,000 |
2 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$10,000 |
3 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$15,000 |
4 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$20,000 |
During your fifth Account Year, you use the full amount of your Stored Income Balance ($25,000) to increase your
Income Benefit Base. On your next Account Anniversary, your Income Benefit
Base will be increased to $125,000 and your Annual Income
Amount will be $6,250 (your Lifetime Income Percentage multiplied by your Income Benefit Base). Therefore $6,250 will be added each year to your Stored Income Balance unless your Annual Income
Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$0 |
$25,000 |
6 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$6,250 |
7 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$12,500 |
8 |
$100,000 |
$125,000 |
$6,250 |
$0 |
$18,750 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. | |||||
Assume instead that, during your fifth Account Year, you take a withdrawal of $25,000, thereby reducing your Stored
Income Balance to $0. On your next Account Anniversary, your Income Benefit
Base will remain at $100,000 and your Annual Income Amount
remains at $5,000 (your Lifetime Income Percentage multiplied by your Income Benefit Base). Therefore $5,000 will be added each year to your Stored Income Balance unless your Annual Income
Amount changes. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$25,000 |
$0 |
6 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$5,000 |
7 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$10,000 |
8 |
$75,000 |
$100,000 |
$5,000 |
$0 |
$15,000 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV - SB |
IBB |
= |
Your Income Benefit Base immediately prior to the Excess Withdrawal. |
WD |
= |
The amount of the Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (or your Yearly Required Minimum Distribution Amount, if greater) immediately prior to the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Excess Withdrawal. |
Using the same facts as the previous example,
assume that in your fifth Account Year you take a withdrawal of
$50,000, exceeding your Stored Income Balance. Assume that due to poor
investment performance during the fifth Account Year your
Account Value was $90,000 immediately prior to the withdrawal. Your Income Benefit Base will be reduced to $61,538 as shown below. | |||||
Year |
Account Value |
Income Benefit Base |
Annual Income Amount |
Withdrawal |
Stored Income Balance |
5 |
$100,000 |
$100,000 |
$5,000 |
$50,000 |
$0 |
6 |
$40,000 |
$61,538 |
$3,077 |
$0 |
$3,077 |
7 |
$40,000 |
$61,538 |
$3,077 |
$0 |
$6,154 |
8 |
$40,000 |
$61,538 |
$3,077 |
$0 |
$9,231 |
Each year thereafter, the Annual Income Amount will be added to the Stored Income Balance in the same manner. |
Your new Income Benefit Base |
= |
$100,000 x |
( |
$90,000 - $50,000 |
) |
= |
$61,538 |
$90,000 - $25,000 |
Your new Income Benefit Base |
= |
IBB x |
( |
AV - WD |
) |
AV | |||||
Your new Stored Income Balance |
= |
SB x |
( |
AV - WD |
) |
AV |
IBB |
= |
Your Income Benefit Base immediately prior to the Early Withdrawal. |
SB |
= |
Your Stored Income Balance immediately prior to the Early Withdrawal. |
WD |
= |
The amount of the Early Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early Withdrawal. |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV - SB |
Your new Fee Base |
= |
Fee Base x |
( |
AV - WD |
) |
AV |
Fee Base |
= |
Your Fee Base immediately prior to the Early/Excess Withdrawal. |
WD |
= |
The amount of the Early/Excess Withdrawal. |
SB |
= |
Your Stored Income Balance (if any) immediately prior to the Excess Withdrawal. |
AV |
= |
Your Account Value immediately prior to the Early/Excess Withdrawal. |
Assume that you are age 65 when your Contract is issued with an initial Purchase Payment of $100,000. Assume you
elected to participate in IOD III Escalator with single-life coverage and
investment performance of the Designated Funds is constant over
the years. (If you selected joint-life coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment on your Issue Date. Your Lifetime Income Percentage is
5%. Your Annual Income Amount is $5,000 (5% of your Income Benefit Base).
All values are shown as of the beginning of the Account Year except as otherwise stated. | ||||||
During the Stored Income Period, the Fee Base is reset at the beginning of the Account Year to equal your Income Benefit
Base plus your Stored Income Balance less your Annual Income Amount, if that
amount is greater than the previous Fee Base. For example, in
Account Year 4, the Fee Base is set equal to the Income Benefit Base ($100,000) plus the Stored Income Balance ($20,000) less your Annual Income Amount ($5,000) if that amount ($115,000) is greater than the
previous Fee Base ($110,000). | ||||||
|
|
|
Stored
Income Balance |
| ||
Year |
Income Benefit Base |
Annual Income Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
1 |
$100,000 |
$5,000 |
$5,000 |
$0 |
$5,000 |
$100,000 |
2 |
$100,000 |
$5,000 |
$10,000 |
$0 |
$10,000 |
$105,000 |
3 |
$100,000 |
$5,000 |
$15,000 |
$0 |
$15,000 |
$110,000 |
4 |
$100,000 |
$5,000 |
$20,000 |
$0 |
$20,000 |
$115,000 |
Assume, instead, that in your fourth Account Year you take a $20,000 withdrawal. At the beginning of your fifth Account
Year, your Income Benefit Base ($100,000) plus your Stored Income Balance
($5,000) less your Annual Income Amount ($5,000) is less than
the current Fee Base ($115,000), so there is no change to the Fee Base, as shown below. | ||||||
|
|
|
Stored
Income Balance |
| ||
Year |
Income Benefit Base |
Annual Income Amount |
Beginning of year |
Withdrawal Amount |
End of year |
Fee Base |
4 |
$100,000 |
$5,000 |
$20,000 |
$20,000 |
$0 |
$115,000 |
5 |
$100,000 |
$5,000 |
$5,000 |
$0 |
$5,000 |
$115,000 |
6 |
$100,000 |
$5,000 |
$10,000 |
$0 |
$10,000 |
$115,000 |
7 |
$100,000 |
$5,000 |
$15,000 |
$0 |
$15,000 |
$115,000 |
8 |
$100,000 |
$5,000 |
$20,000 |
$0 |
$20,000 |
$115,000 |
9 |
$100,000 |
$5,000 |
$25,000 |
$0 |
$25,000 |
$120,000 |
On each Account Anniversary thereafter, your Fee Base is recalculated and reset if necessary. |
Assume that you are 65 years old when you purchase a Contract with an initial Purchase Payment of $100,000, and that
you elect to participate in IOD III Escalator with single-life coverage and
do not take any withdrawals. (If you selected joint-life
coverage, the numbers shown in the example could be different.) Your Income Benefit Base is equal to your initial Purchase Payment. Your Annual Income Amount is $5,000 (5% of your Income Benefit Base). Your initial Stored
Income Balance is $5,000. | |||||
Assume that your Account Value grows to $103,000 by the end of Account Year 1. Because your Account Value minus
your Stored Income Balance ($103,000 - $5,000) is less than your current
Income Benefit Base, you will not step-up. | |||||
Assume further that your Account Value grows to $113,000 by the end of Account Year 2. Because your Account Value
minus your Stored Income Balance ($113,000 - $10,000) is greater than your
current Income Benefit Base ($100,000), you will step-up. Your
new Income Benefit Base will equal your Account Value minus your Stored Income Balance ($103,000). Your new Annual Income Amount will be $5,150 (5% of your new Income Benefit Base). | |||||
Assume further that your Account Value grows to $125,150 by the end of Account Year 3. Because your Account Value
minus your Stored Income Balance ($125,150 - $15,150) is greater than your
current Income Benefit Base ($103,000), you will step-up again.
Your new Income Benefit Base will equal your Account Value minus your Stored Income Balance ($110,000). Your new Annual Income Amount will be $5,500 (5% of your new Income Benefit Base). | |||||
Account Year |
Account Value End of Year |
Stored Income Balance Beginning of Year |
Income Benefit Base
End of Year |
Annual Income Amount End of
Year |
Withdrawals |
1 |
$103,000 |
$5,000 |
$100,000 |
$5,000 |
0 |
2 |
$113,000 |
$10,000 |
$103,000 |
$5,150 |
0 |
3 |
$125,150 |
$15,150 |
$110,000 |
$5,500 |
0 |
Your Age at Step-up* |
Lifetime Income Percentage |
50 - 64 |
4% |
65 - 79 |
5% |
80 or older |
6% |
Age of Younger Spouse at Step-up |
Lifetime Income Percentage |
50 - 64 |
4% |
65 - 79 |
5% |
80 or older |
6% |
2 | |
2 | |
3 | |
3 | |
4 | |
4 | |
4 | |
5 | |
5 | |
5 | |
6 | |
6 | |
6 | |
6 | |
7 |
YIELD = 2[( |
a - b |
+1)6 -1] |
|
cd |
|
Investment Factor |
= |
( |
a + b |
) |
- d |
c |
(18.38 + 0.00) - (.00004837) |
= |
1.00322674 |
18.32 |
(14.5645672 x 1.00322674) |
= |
14.6115633 |
Annuity Unit Value |
= |
(A x B) x C |
(12.3456789 x 1.00322813) x 0.99991902 |
= |
12.3845294 |
(8,765.4321 x 14.5645672) x 6.78 |
= |
$865.57 |
1,000 |
70.1112 x 12.3845467 |
= |
$868.29 |
(a) |
Resolution of Board of Directors of the Depositor dated December 3, 1985 authorizing the establishment of the
Registrant (Incorporated herein by reference to the Registration Statement on Form N-4, File
No. 333-37907, filed on
October
14, 1997); Exhibit (a) |
(b) |
Not Applicable; |
(c)(1) |
Marketing Services Agreement between Sun Life Assurance Company of Canada (U.S.), Sun Life of Canada (U.S.)
Distributors, Inc. and Clarendon Insurance Agency, Inc. (Incorporated herein by reference to
Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4,
File No. 333-37907, filed on January 16,
1998); |
(c)(1)(i) |
Principal Underwriter’s Agreement by and between Sun Life Assurance Company of Canada (U.S.) and Clarendon
Insurance Agency, Inc. (Incorporated herein by reference to Post-Effective Amendment
No. 16 to the Registration Statement on Form N-4, File No. 333-83364, filed on or about April
28, 2009); Exhibit (c)(1)(i) |
(c)(1)(ii) |
Amendment No. 1 to Principal Underwriter’s Agreement by and between Sun Life Assurance Company of Canada
(U.S.) and Clarendon Insurance Agency, Inc. (Incorporated herein by reference to
Post-Effective Amendment No. 16 to the Registration Statement on Form N-4,
File No. 333-83364, filed on or about April
28, 2009); Exhibit (c)(1)(ii) |
(c)(1)(iii) |
Amendment No. 2 to Principal Underwriter’s Agreement by and between Sun Life Assurance Company of Canada
(U.S.) and Clarendon Insurance Agency, Inc. (Incorporated herein by reference to
Post-Effective Amendment No. 12 to the Registration Statement of Delaware
Life Variable Account I on Form N-6, File No. 333-100829, filed on April 27, 2010); Exhibit (c)(1)(iii) |
(c)(1)(iv) |
Amendment No. 3 to Principal Underwriter’s Agreement by and between Sun Life Assurance Company of Canada
(U.S.) and Clarendon Insurance Agency, Inc. (Incorporated herein by reference to
Post-Effective Amendment No. 12 to the Registration Statement of Delaware
Life Variable Account I on Form N-6, File No. 333-100829, filed on April 27, 2010); Exhibit (c)(1)(iv) |
(c)(2)(i) |
Sales Operations and General Agent Agreement (Incorporated herein by reference to Pre-Effective Amendment No. 1
to the Registration Statement on Form N-4, File No. 333-37907, filed on January
16, 1998); Exhibit (c)(2)(i) |
(c)(2)(ii) |
Broker-Dealer Supervisory and Service Agreement (Incorporated herein by reference to Pre-Effective Amendment
No. 1 to the Registration Statement on Form N-4, File No. 333-37907, filed on January
16, 1998); Exhibit (c) (2)(ii) |
(c)(2)(iii) |
General Agent Agreement (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-4, File No. 333-37907, filed on January
16, 1998); Exhibit (c)(2)(iii) |
(d)(1)(i) |
Flexible Payment Combination Fixed/Variable Group Annuity Contract (Incorporated herein by reference to the
Registration Statement on Form N-4, File No. 333-83256, filed on February 22, 2002);
Exhibit (d)(1)(i) |
(d)(1)(ii) |
Certificate to be issued in connection with Contract filed as Exhibit (d)(1)(i) (Incorporated herein by reference to the
Registration Statement on Form N-4, File No. 333-83256, filed on February 22, 2002);
Exhibit (d)(1)(ii) |
(d)(2) |
Flexible Payment Combination Fixed/Variable Individual Annuity Contract (Incorporated herein by reference to the
Registration Statement on Form N-4, File No. 333-83256, filed on February
22, 2002); Exhibit (d)(2) |
(d)(3) |
Secured Returns 2 Rider to Certificate filed as Exhibit (d)(1)(ii) (Incorporated herein by reference to the Registration
Statement on Form N-4, File No. 333-115525, filed May
14, 2004); Exhibit (d)(3) |
(d)(4) |
Secured Returns 2 Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed as
Exhibit (d)(1)(ii) (Incorporated herein by reference to the Registration Statement on Form
N-4, File No. 333-115525,
filed May
14, 2004); Exhibit (d)(4) |
(d)(5) |
Secured Returns for Life Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed as
Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment No. 9 to the
Registration Statement on Form N-4, File No. 333-83516, filed on August
2, 2005); Exhibit (d)(5) |
(d)(6) |
Secured Returns for Life Plus Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract
filed as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment
No. 13 to the Registration Statement on Form N-4, File No. 333-83516, filed on February
3, 2006); Exhibit (d)(6) |
(d)(7) |
Income ON Demand Benefit Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract
filed as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment
No. 19 to the Registration Statement on Form N-4, File No. 333-83516, filed on September
22, 2006); Exhibit (d)(7) |
(d)(8) |
Retirement Asset Protector Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed
as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment No. 19 to
the Registration Statement on Form N-4, File No. 333-83516, filed on September
22, 2006); Exhibit (d)(8) |
(d)(9) |
Retirement Income Escalator Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract
filed as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment
No. 25 to the Registration Statement on Form N-4, File No. 333-83516, filed on February
12, 2008); Exhibit (d)(9) |
(d)(10) |
Income ON Demand Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed as
Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment No. 25 to
the Registration Statement on Form N-4, File No. 333-83516, filed on February
12, 2008); Exhibit (d)(10) |
(d)(11) |
Retirement Income Escalator II Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract
filed as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment
No. 28 to the Registration Statement on Form N-4, File No. 333-83516, filed on July
3, 2008); Exhibit (d)(1l) |
(d)(12) |
Income ON Demand II Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed as
Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment No. 28 to
the Registration Statement on Form N-4, File No. 333-83516, filed on July
3, 2008); Exhibit (d) (12) |
(d)(13) |
Income ON Demand II Escalator Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract
filed as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment
No. 28 to the Registration Statement on Form N-4, File No. 333-83516, filed on July
3, 2008); Exhibit (d)(13) |
(d)(14) |
Income ON Demand II Plus Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed
as Exhibit(d)(2) (Incorporated herein by reference to Post-Effective Amendment No. 28 to
the Registration Statement on Form N-4, File No. 333-83516, filed on July
3, 2008); Exhibit (d)(14) |
(d)(15) |
Income ON Demand III Escalator Rider to Flexible Payment Combination Fixed/Variable Individual Annuity
Contract filed as Exhibit (d)(2) (Incorporated herein by reference to Post-Effective Amendment
No. 23 to the Registration Statement on Form N-4, File No. 333-83362, filed on June
10, 2009); Exhibit (d)(15) |
(d)(16) |
Income Riser Rider to Flexible Payment Combination Fixed/Variable Individual Annuity Contract filed as Exhibit
(d)(2) (Incorporated herein by reference to Post-Effective Amendment No. 23 to the
Registration Statement on Form N-4, File No. 333-83362, filed on June
10, 2009); Exhibit (d)(16) |
(e)(1) |
|
(e)(2) |
Application to be used with Certificate filed as Exhibit (d)(1)(ii) and Contract filed as Exhibit (d)(2) (Incorporated
herein by reference to Pre-Effective Amendment No. 1 to the Registration Statement on
Form N-4, File No. 333-74844, filed February
14, 2002); Exhibit (e)(2) |
(f)(1) |
Certificate of Incorporation of the Depositor (Incorporated herein by reference to Post-Effective Amendment No. 51
to the Registration Statement on Form N-4, File No. 333-83516, filed on August
11, 2014); Exhibit (f)(1) |
(f)(2) |
By-Laws of the Depositor (Incorporated herein by reference to Post-Effective Amendment No. 51 to the Registration
Statement on Form N-4, File No. 333-83516, filed on August
11, 2014); Exhibit (f)(2) |
(g) |
Amended and Restated Reinsurance Agreement between Delaware Life Insurance Company and Hannover Life
Reassurance Company of America; (Incorporated herein by reference to Post-Effective Amendment
No. 56 to the Registration Statement on Form N-4, File No. 333-83516, filed on April
26, 2019); Exhibit (g) |
(h)(1) |
Participation Agreement by and between The Alger American Fund, the Depositor, and Fred Alger and Company,
Incorporated (Incorporated herein by reference to Post-Effective Amendment No. 13 to the
Registration Statement on Form N-4, File No. 033-41628, filed on April
23, 1999); Exhibit (h)(1) |
(h)(2) |
Participation Agreement, dated September 27, 2018, as amended through August 21, 2020, by and among Goldman
Sachs Variable Insurance Trust and Goldman Sachs & Co. LLC, (Incorporated herein by
reference to the Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-4, File No. 333-225901, filed
on October
1, 2018); Exhibit (h)(2) |
(h)(3) |
Participation Agreement, dated February 17, 1998, as amended through September 18, 2014, by and among Delaware
Life Insurance Company, Clarendon Insurance Agency, Inc., AIM Variable Insurance Funds
(Invesco Variable Insurance Funds) and Invesco Distributors, Inc. (Incorporated
herein by reference to the Pre-Effective Amendment No. 1 to the
Registration Statement on Form N-4, File
No. 333-225901, filed on October 1, 2018):
Exhibit (h)(3) |
(h)(4) |
Participation Agreement dated April 30, 2001 by and among Rydex Variable Trust, Rydex Distributors, Inc., and Sun
Life Assurance Company of Canada (U.S.). (Incorporated herein by reference to Post-Effective
Amendment No. 7 to the Registration Statement on Form N-4, File
No. 333-82957, filed on July 27, 2001);
Exhibit (h)(4) |
(h)(5) |
Amended and Restated Participation Agreement dated September 1, 2004 by and among Sun Life Assurance
Company of Canada (U.S.), Variable Insurance Products Funds, and Fidelity Distributors
Corporation. (Incorporated herein by reference to Post-Effective Amendment
No. 8 to the Registration Statement of on Form N-4, File No. 333-83516, filed on April
28, 2005); Exhibit (h)(5) |
(h)(6) |
Participation Agreement, dated May 1, 2001, as amended through March 26, 2018, by and among Delaware Life
Insurance Company, Clarendon Insurance Agency, Inc., AllianceBernstein L.P. and
AllianceBernstein Investments, Inc. (Incorporated herein by reference to the
Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4,
File No. 333-225901, filed on October 1,
2018); Exhibit (h)(6) |
(h)(7) |
Participation Agreement, dated February 17, 1998, as amended through July 23, 2018, by and among Delaware Life
Insurance Company, Delaware Life Insurance Company of New York, Lord Abbett Series Fund, Inc.
and Lord, Abbett & Co. LLC (Incorporated herein by reference to the
Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4,
File No. 333-225901, filed on October 1,
2018); Exhibit (h)(7) |
(h)(8) |
Participation Agreement Among Franklin Templeton Variable Insurance Products Trust, Franklin Templeton
Distributors, Inc., Sun Life Assurance Company of Canada (U.S.), Sun Life Insurance and
Annuity Company of New York and Clarendon Insurance Agency, Inc. (Incorporated
herein by reference to the Registration Statement on Form N-4, File
No. 333-102278, filed on December 31, 2002);
Exhibit (h)(8) |
(h)(9) |
Participation Agreement, dated September 16, 2002, as amended through June 25, 2020, by and among Delaware
Life Insurance Company, Delaware Life Insurance Company of New York, PIMCO Variable Insurance
Trust and PIMCO Investments (Incorporated herein by reference to the
Pre-Effective Amendment No. 1 to the Registration Statement on Form N-4,
File No. 333-225901, filed on October 1,
2018); Exhibit (h)(9) |
(h)(10) |
Participation Agreement by and among Wanger Advisors Trust, Columbia Funds Distributors, Inc., Sun Life
Assurance Company of Canada (U.S.), and Sun Life Insurance and Annuity Company of New York
(Incorporated herein by reference to Post-Effective Amendment No. 8 to
Registration Statement on Form N-4, File
No. 333-83516,
filed on April
28, 2005); Exhibit (h)(10) |
(h)(11) |
Participation Agreement, dated December 3, 2007, as amended through May 1, 2018, by and among Delaware Life
Insurance Company, Delaware Life Insurance Company of New York, Lazard Asset Management
Securities LLC, and Lazard Retirement Series, Inc. (Incorporated herein by
reference to the Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-4, File No. 333-225901, filed
on October 1, 2018); Exhibit (h)(11) |
(h)(12) |
Participation Agreement, dated May 1, 2004, as amended through June 23, 2020, by and among Delaware Life
Insurance Company, The Morgan Stanley Variable Insurance Fund, Inc., Morgan Stanley Investment
Management Inc. and Morgan Stanley Distribution, Inc (Incorporated herein by
reference to the Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-4, File No. 333-225901, filed
on October 1, 2018); |
(h)(13) |
Participation Agreement, dated December 3, 2007, by and among Sun Life Assurance Company of Canada (U.S.),
The Huntington Funds, Edgewood Services, Inc., and Huntington Asset Advisors, Inc.
(Incorporated herein by reference to Post-Effective Amendment No. 25 to the
Registration Statement on Form N-4, File
No. 333-83516, filed
on February
12, 2008); Exhibit (h)(13) |
(h)(14) |
Participation Agreement, dated May 13, 2004, by and among Sun Life Assurance Company of Canada (U.S.), Merrill
Lynch Variable Series Funds, Inc., Merrill Lynch Investment Managers, L.P. and FAM
Distributors, Inc. (Incorporated herein by reference to Post-Effective Amendment
No. 1 to the Registration Statement of Delaware Life Variable Account G on
Form N-6, File No. 333-111688, filed on
April 29, 2005); Exhibit (h)(14) |
(h)(15) |
Participation Agreement, dated September 30, 2002, by and among Sun Life Assurance Company of Canada (U.S.),
Sun Life Insurance and Annuity Company of New York, First Eagle Sogen Variable Funds, Inc. and
Arnhold and S. Bleichroeder, Inc. (Incorporated herein by reference to the
Registration Statement of Delaware Life Variable Account I on Form N-6, File
No. 333-143353, filed on May 30, 2007);
Exhibit (h)(15) |
(h)(16) |
Participation Agreement, dated August 1, 2011, as amended through May 16, 2018, by and among Delaware Life
Insurance Company of New York and Delaware Life Insurance Company, Putnam Variable Trust and
Putnam Retail Management Limited Partnership (Incorporated herein by reference
to the Pre-Effective Amendment No. 1 to the Registration Statement on Form
N-4, File No. 333-225901, filed on October 1,
2018); Exhibit (h)(16) |
(h)(17) |
Participation Agreement, dated August 1, 2011, among Sun Life Assurance Company of Canada (U.S.), Sun Life
Insurance and Annuity Company of New York, PIMCO Equity Series VIT, and PIMCO Investments LLC
(Incorporated herein by reference to Pre-Effective Amendment No. 2 the
Registration Statement of Delaware Life Variable Account K on Form N-4, File
No. 333-173301, filed on August 10, 2011);
Exhibit (h)(17) |
(h)(18) |
Participation Agreement, dated May 1, 2011, among Wells Fargo Variable Trust, Sun Life Assurance Company of
Canada (U.S.) and Sun Life Insurance and Annuity Company of New York (Incorporated herein by
reference to Pre-Effective Amendment No. 1 the Registration Statement on
Form N-4, File No. 333-173301, filed on June
8, 2011);
Exhibit (h)(18) |
(h)(19) |
Participation Agreement, dated April 24, 2009, as amended through May 29, 2018, by and among Delaware Life
Insurance Company of New York and Delaware Life Insurance Company, JPMorgan Insurance Trust
and J. P. Morgan Investment Management Inc. (Incorporated herein by reference to
the Pre-Effective Amendment No. 1 to the Registration Statement on Form
N-4, File No. 333-225901, filed on October 1,
2018); Exhibit (h)(19) |
(h)(20) |
Participation Agreement, dated December 1, 2012, as amended through September 8, 2014, by and among Delaware
Life Insurance Company of New York and Delaware Life Insurance Company, MFS Variable Insurance
Trusts I, II and III, and MFS Fund Distributors, Inc. (Incorporated herein by
reference to the Pre-Effective Amendment No. 1 to the Registration
Statement on Form N-4, File No. 333-225901, filed
on October 1, 2018); Exhibit (h)(20) |
(h)(21) |
Participation Agreement, restated April 1, 2007, by and among Sun Life Assurance Company of Canada (U.S.), Sun
Life Insurance and Annuity Company of New York, Independence Life and Annuity Company,
Columbia Funds Variable Insurance Trust I, Columbia Management Advisors, LLC,
and Columbia Management Distributors, Inc. (Incorporated herein by reference to
Post-Effective Amendment No. 47 to the Registration Statement on Form N-4,
File No. 333-83516, filed on April
29, 2013); Exhibit (h)(21) |
(h)(22) |
Participation Agreement, dated April 26, 2013, as amended through July 1, 2018, by and among Delaware Life
Insurance Company, Delaware Life Insurance Company of New York, Delaware Life Insurance and
Annuity Company (Bermuda) Ltd., Columbia Funds Variable Insurance Trust,
Columbia Management Investment Advisers, LLC, and Columbia Management Investment
Distributors, Inc. (Incorporated herein by reference to the Pre-Effective
Amendment No. 1 to the Registration Statement on Form N-4, File No. 333-225901, filed on October 1, 2018);
|
(h)(23) |
Participation Agreement, dated April 29, 2011, by and among Sun Life Assurance Company of Canada (U.S.), Sun
Life Insurance and Annuity Company of New York, Independence Life and Annuity Company,
RiverSource Variable Series Trust, Columbia Management Investment Advisers, LLC,
and Columbia Management Investment Distributors, Inc. (Incorporated herein by
reference to Post-Effective Amendment No. 47 to the Registration Statement on Form N-4, File No. 333-83516, filed on April 29, 2013); Exhibit (h)(23) |
(i) |
Master Services Agreement by and between Sun Life Assurance Company of Canada (U.S.) and se2, Inc., dated
December 1, 2013. (Incorporated herein by reference to Post-Effective Amendment
No. 15 to the Registration Statement of Delaware Life Variable Account I on
Form N-6, File No. 333-143354, filed on
April 29, 2015.) Exhibit
|
(j) |
Not Applicable |
(k)(1) |
|
(k)(2) |
|
(l) |
Not Applicable; |
(m) |
Not Applicable; |
(n) |
Not Applicable; |
(o) |
Form of Initial Template Summary Prospectus (Incorporated by reference to Post-Effective Amendment No. 5 to the
Registration Statement on Form N-4, File No. 333- 225901, filed on October 8, 2021);
Exhibit (o); |
(p) |
|
(q) |
|
(r) |
|
(s) |
Name and
Principal Business Address |
Positions and Offices With Depositor |
Dennis A. Cullen Delaware Life Insurance Company 10555 Group 1001 Way Zionsville, IN 46077 |
Director |
Michael K. Moran Delaware Life Insurance Company 10555 Group 1001 Way Zionsville, IN 46077 |
Director |
Curtis P. Steger Delaware Life Insurance Company 10555 Group 1001 Way Zionsville, IN 46077 |
Director |
Daniel J. Towriss Delaware Life Insurance Company 10555 Group 1001 Way Zionsville, IN 46077 |
Chief Executive Officer and President |
Michael S. Bloom Delaware Life Insurance Company 230 Third Avenue, 6th Floor Waltham, MA 02451 |
Chief Legal Officer and Secretary |
Andrew F. Kenney Delaware Life Insurance Company 230 Third Avenue, 6th Floor Waltham, MA 02451 |
Chief Investment Officer |
John J. Miceli, Jr. Delaware Life Insurance Company 230 Third Avenue, 6th Floor Waltham, MA 02451 |
Treasurer |
Ellyn M. Nettleton Delaware Life Insurance Company 10555 Group 1001 Way Zionsville, IN 46077 |
Chief Accounting Officer |
Robert B. Stanton Delaware Life Insurance Company 10555 Group 1001 Way Zionsville, IN 46077 |
Chief Operating Officer |
Fang L. Wang Delaware Life Insurance Company 230 Third Avenue, 6th Floor Waltham, MA 02451 |
Chief Financial Officer |
(b) |
Name and Principal Business Address* |
Position and Offices with Underwriter |
|
Thomas G. Seitz |
President and Director |
|
Fang L. Wang |
Director |
|
Michael S. Bloom |
Secretary and Director |
|
John J. Miceli, Jr. |
Treasurer |
|
James Joseph |
Financial/Operations Principal |
|
Elizabeth T. Carey |
Chief Compliance Officer |
DELAWARE LIFE VARIABLE ACCOUNT F (Registrant) | |
By: |
/s/ Daniel J. Towriss* Daniel J. Towriss Chief Executive Officer and President (Principal Executive Officer) |
DELAWARE LIFE INSURANCE COMPANY (Depositor) | |
By: |
/s/ Daniel J. Towriss* Daniel J. Towriss Chief Executive Officer and President (Principal Executive Officer) |
SIGNATURE |
TITLE
|
DATE |
/s/ Dennis A. Cullen* Dennis A. Cullen |
Director |
April 29, 2024 |
/s/ Michael K. Moran* Michael K. Moran |
Director |
April 29, 2024 |
/s/ Curtis P. Steger* Curtis P. Steger |
Director |
April 29, 2024 |
/s/ Daniel J. Towriss* Daniel J. Towriss |
Chief Executive Officer and President (Principal Executive Officer) |
April 29, 2024 |
/s/ Ellyn M. Nettleton* Ellyn M. Nettleton |
Chief Accounting Officer (Principal Accounting Officer) |
April 29, 2024 |
/s/ Fang L. Wang* Fang L. Wang |
Chief Financial Officer (Principal Financial Officer) |
April 29, 2024 |
*By: /s/ Kenneth N. Crowley Kenneth N. Crowley |
Attorney-in-Fact |
April 29, 2024 |