UPDATING SUMMARY PROSPECTUS FOR EXISTING INVESTORS
MAY 1, 2024
PACIFIC CHOICE® INCOME
Issued by Pacific Life & Annuity Company through Separate Account A of Pacific Life & Annuity Company
This updating summary prospectus summarizes certain key features of Pacific Choice Income, an individual flexible premium deferred variable annuity contract (the “Contract”). This prospectus also provides a summary of Contract features that have changed.
The prospectus for the Contract contains more information about the Contract, including the Contract’s features, benefits, and risks. You can find the current prospectus and other information about the Contract online at PacificLife.com/Prospectuses. You can also obtain this information at no cost by calling (833) 455-0901 or by sending an email request to Prospectuses@PacificLife.com.
Additional information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission’s (“SEC”) staff and is available at Investor.gov.
To view our latest Privacy Notice, please visit https://paclife.co/privacy-promise or contact (877) 722-7848 for additional information.
TABLE OF CONTENTS
IMPORTANT INFORMATION YOU SHOULD CONSIDER ABOUT THE CONTRACT | |
Account Value – The amount of your Contract Value allocated to a specified Variable Investment Option or any fixed option.
Business Day – Any day on which the value of an amount invested in a Variable Investment Option is required to be determined, which currently includes each day that the New York Stock Exchange is open for trading, an applicable underlying Fund is open for trading, and our administrative offices are open.
Code – The Internal Revenue Code of 1986, as amended.
Contract Date – The date we issue your Contract. Contract Years, Contract Anniversaries, Contract Semi-Annual Periods, Contract Quarters and Contract Months are measured from this date.
Contract Owner, Owner, Policyholder, you, or your – Generally, a person who purchases a Contract and makes the Investments. A Contract Owner has all rights in the Contract, including the right to make withdrawals, designate and change beneficiaries, transfer amounts among Investment Options, and designate an Annuity Option. If your Contract names Joint Owners, both Joint Owners are Contract Owners and share all such rights. Except in the case of a Non-Natural Owner, the Owner’s life is used to determine death benefits.
Contract Value – As of the end of any Business Day, the sum of your Variable Account Value, any fixed option value, the value of any other Investment Option added to the Contract by Rider or Endorsement.
Fund – An underlying fund that you may invest in through the Separate Account provided by a registered open-end management investment company; may also be referred to as a Variable Investment Option.
General Account – Our General Account consists of all of our assets other than those assets allocated to Separate Account A or to any of our other investment separate accounts.
Investment (“Purchase Payment”) – An amount paid to us by or on behalf of a Contract Owner as consideration for the benefits provided under the Contract.
Investment Option – A Variable Investment Option, any fixed option, or any other Investment Option added to the Contract by Rider or Endorsement.
Purchase Payment (“Investment”) – An amount paid to us by or on behalf of a Contract Owner as consideration for the benefits provided under the Contract.
Qualified Contract – A Contract that qualifies under the Code as an individual retirement annuity or account (IRA), or form thereof, or a Contract purchased by a Qualified Plan, qualifying for special tax treatment under the Code.
Qualified Plan – A retirement plan that receives favorable tax treatment under Section 401, 408 or 408A of the Code.
SEC – Securities and Exchange Commission.
Separate Account A (the “Separate Account”) – A separate account of ours registered as a unit investment trust under the Investment Company Act of 1940, as amended (the “1940 Act”).
Variable Account Value – The aggregate amount of your Contract Value allocated to all Subaccounts.
Variable Investment Option – A Fund under this Contract that is part of the Separate Account.
UPDATED INFORMATION ABOUT YOUR CONTRACT
The information in this Updating Summary Prospectus is a summary of certain Contract features that have changed since the prospectus dated May 1, 2023. This may not reflect all of the changes that have occurred since you entered into your Contract.
Underlying Funds
· The Delaware Ivy VIP Asset Strategy changed to the Macquarie VIP Asset Strategy Series Portfolio
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· The following Portfolios were transferred and no longer available for investment as a result of a Substitution Order:
· State Street Total Return to American Funds IS Asset Allocation
· Fee and performance information have been updated and are reflected in the Appendix: Funds Available Under the Contract and the Fees and Expenses table in this updating summary prospectus.
Living Benefit Riders
· For the guaranteed minimum benefit riders utilizing a rate sheet, a new Prospectus Rate Sheet Supplement with updated rider percentages for new Contract purchases was issued for the May 1, 2024 Statutory Prospectus and Initial Summary Prospectus.
IMPORTANT INFORMATION YOU SHOULD CONSIDER ABOUT THE CONTRACT
FEES AND EXPENSES | LOCATION IN PROSPECTUS | |||
Charges for Early Withdrawals | If you withdraw money from your Contract during the first 7 years following your last Purchase Payment, you may be assessed a withdrawal charge. The maximum withdrawal charge is 9% of the Purchase Payment, declining to 0% after 7 years. For example, if you make an early withdrawal, you could pay a withdrawal charge up to $9,000 on a $100,000 withdrawal. | Fee Tables Charges, Fees and Deductions - Withdrawal Charge | ||
Transaction Charges | Taking a loan, where allowable, will result in loan interest charges. There are no other transaction charges under this Contract (for example, sales loads, charges for transferring Contract Value between Investment Options, or wire transfer fees). | Optional Benefit Expenses Contract Features and Loans Additional Information – Loans and Qualified Contacts | ||
Ongoing Fees and Expenses (annual charges) | The table below describes the fees and expenses that you may pay each year, depending on the options you choose. Please refer to your Contract specifications page for information about the specific fees you will pay each year based on the options you have elected. | Charges Fees and Deductions Appendix: Funds Available Under the Contract Charges, Fees and Deductions– Living Benefit Rider Charges Charges, Fees and Deductions – Mortality and Expense Risk Charge and Optional Death Benefit Rider Charge | ||
ANNUAL FEES | MINIMUM | MAXIMUM | ||
1. Base Contract | 1.15%1 | 1.15%1 | ||
2. Investment Options (Fund fees and expenses) | 0.62%2 | 1.54%2 | ||
3. Optional Benefits (for a single optional benefit, if elected) | 0.15%3 | 1.70%3 | ||
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. | ||||
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FEES AND EXPENSES | LOCATION IN PROSPECTUS | ||
Lowest Annual Cost: $2,740.11 | Highest Annual Cost: $3,921.65 | ||
Assumes: · Investment of $100,000 · 5% annual appreciation · Least expensive combination of base Contract and Fund fees and expenses · Least expensive living benefit rider and no death benefit rider · No sales charges · No additional purchase payments, transfers, or withdrawals · No loans or loan interest charges | Assumes: · Investment of $100,000 · 5% annual appreciation · Most expensive combination of base Contract, optional benefits, and Fund fees and expenses · No sales charges · No additional purchase payments, transfers, or withdrawals · No loans or loan interest charges | ||
1 As a percentage of the average daily Variable Account Value. This percentage includes the Mortality and Expense Risk Charge and the Administrative Fee.
2 As a percentage of Fund assets.
3 As a percentage of the Protected Payment Base (for a living benefit), or average daily Variable Account Value (for an optional death benefit).
RISKS | LOCATION IN PROSPECTUS | |
Risk of Loss | You can lose money by investing in the Contract, including loss of principal and previous earnings. | Principal Risks of Investing in the Contract |
Not a Short-Term Investment | This Contract is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawal charges may apply for the first 7 years following your last purchase payment and will reduce the Contract Value if you withdraw money during that time. The benefits of tax deferral, long-term income, and living benefits are generally more beneficial to investors with a long-term investment horizon. | Principal Risks of Investing in the Contract Charges, Fees and Deductions - Withdrawal Charge |
Risks Associated with Investment Option | An investment in this 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. Funds and fixed options). Each Investment Option (including any fixed option) will have its own unique risks. You should review, working with your financial professional, the Investment Options before making an investment decision. | Principal Risks of Investing in the Contract Appendix: Funds Available Under the Contract |
Insurance Company Risks | Investment in the Contract is subject to the risks related to us, and any obligations (including any fixed option), guarantees, or benefits are subject to our claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you. More information about us, including our financial strength ratings, is available upon request by calling (800) 748-6907 or visiting our website at | Principal Risks of Investing in the Contract |
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RISKS | LOCATION IN PROSPECTUS | |
www.PacificLife.com. | Pacific Life and the Separate Account | |
RESTRICTIONS | LOCATION IN PROSPECTUS | |
Investments | Transfers between Variable Investment Options are limited to 25 each calendar year. Transfers to or from a Variable Investment Option cannot be made before the seventh calendar day following the last transfer to or from the same Variable Investment Option. Transfers may not be made from a Variable Investment Option to any fixed option. Additional Fund transfer restrictions apply (e.g., transfer restrictions imposed by the Funds on certain portfolios). Certain Funds may stop accepting additional investments into the Fund or a Fund may liquidate. In addition, if a Fund determines that excessive trading has occurred, they may limit your ability to continue to invest in their Fund for a certain period of time. We reserve the right to remove, close to new investment, or substitute Funds as Investment Options. | Transfers and Market-Timing Restrictions Appendix: Funds Available Under the Contract |
Optional Benefits | You must purchase a living benefit rider with this Contract. Death benefit riders are optional. All Investment Options are allowable Investment Options under the optional riders. We may change these limits or restrictions in the future. Withdrawals that exceed withdrawal limits specified by an optional living benefit, may affect the availability of the benefit, by reducing the benefit by an amount greater than the value withdrawn, and/or could terminate the benefit. We may stop offering an optional living benefit at any time, including for current Owners who have not yet purchased the rider. We reserve the right to reject or restrict, at our discretion, any additional Purchase Payments for a rider and, as a result, we will not accept Purchase Payments for your Contract. You will not be able to increase protected amounts or your Contract Value through additional Purchase Payments. | Death Benefits Death Benefit Riders Living Benefit Riders Appendix: Funds Available Under the Contract |
TAXES | LOCATION IN PROSPECTUS | |
Tax Implications | Consult with a tax professional to determine the tax implications of an investment in and payments received under the Contract. It is important to know that IRAs and qualified plans are already tax-deferred which means the tax deferral feature of a variable annuity does not provide a benefit in addition to that already offered by an IRA or qualified plan. An annuity contract should only be used to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. Withdrawals will be subject to ordinary income tax and may be subject to a tax penalty if you take a withdrawal before age 59½. Tax consequences for loans and withdrawals generally differ. | Federal Tax Issues Principal Risks of Investing in the Contract – Tax Consequences |
CONFLICTS OF INTEREST | LOCATION IN PROSPECTUS | |
Investment Professional Compensation | Some financial professionals may receive compensation for selling this Contract to you in the form of commissions, additional payments, non-cash compensation, and/or reimbursement of expenses. These financial professionals may have a financial incentive to offer or recommend this Contract over another investment that may pay less compensation. | Distribution Arrangements |
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CONFLICTS OF INTEREST | LOCATION IN PROSPECTUS | |
Exchanges | Some financial professionals may have a financial incentive to offer you a new contract in place of the one you already own. You should only exchange your contract if you determine, after comparing the features, fees, and risks of both contracts, that it is preferable for you to purchase the new contract rather than continue to own the existing contract. | Replacement of Life Insurance or Annuities |
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APPENDIX: FUNDS AVAILABLE UNDER THE CONTRACT
The following is a list of Funds available under the Contract. More information about the Funds is available in the prospectuses for the Funds, which may be amended from time to time and can be found online at PacificLife.com/Prospectuses. You can also request this information at no cost by calling (833) 455-0901 or by sending an email request to Prospectuses@PacificLife.com. Depending on the optional benefits you choose, you may not be able to invest in certain Funds. See the Living Benefit Investment Allocation Requirements section after the Fund table below. Availability of Funds may vary by financial intermediary. For information about which Funds are available to you, please contact your financial professional or call us at the number above.
The current expenses and performance information below reflects fee and expenses of the Funds, but do not reflect the other fees and expenses that your Contract may charge. Expenses would be higher and performance would lower if these other charges were included. Each Fund’s past performance is not necessarily an indication of future performance.
Investment Objective | Fund; Advisor (Subadvisor) | Current | Average
Annual Total Returns | ||
1 Year | 5 Year | 10 Year | |||
Provide high total return (including income and capital gains) consistent with preservation of capital over the long term. | American Funds IS Asset Allocation Fund Class 4 ; Capital Research and Management Company℠ | 0.80% | 14.02% | 8.92% | 6.98% |
Provide high total return (including income and capital gains) consistent with preservation of capital over the long term while seeking to manage volatility and provide downside protection. | American Funds IS Managed Risk Asset Allocation Fund Class P2 ; Capital Research and Management Company℠ | 0.90%1 | 10.23% | 5.91% | 4.74% |
Seeks high total investment return. | BlackRock Global Allocation V.I. Fund Class III ; BlackRock Advisors, LLC | 1.02%1 | 12.49% | 7.39% | 4.63% |
Seeks high total return. | Fidelity® VIP FundsManager® 60% Portfolio Service Class 2 ; Fidelity Management & Research Company LLC | 0.86%1 | 14.08% | 8.43% | 6.10% |
Seeks as high a level of current income as is consistent with preservation of capital and liquidity. | Fidelity® VIP Government Money Market Portfolio Service Class2 ; Fidelity Management & Research Company LLC | 0.37% | 4.79% | 1.66% | 1.05% |
Seeks to provide total return by allocating among dividend-paying stocks and investment grade bonds. | First Trust/Dow Jones Dividend & Income Allocation Portfolio Class I ; First Trust Advisors L.P. | 1.19% | 10.51% | 7.23% | 6.53% |
Seeks capital appreciation, with income as a secondary goal. | Franklin Allocation VIP Fund Class 4 ; Franklin Advisers, Inc. | 0.92%1 | 14.62% | 7.44% | 4.64% |
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Investment Objective | Fund; Advisor (Subadvisor) | Current | Average
Annual Total Returns | ||
1 Year | 5 Year | 10 Year | |||
Total return with a low to moderate correlation to traditional financial market indices. | Invesco V.I. Balanced-Risk Allocation Fund Series II ; Invesco Advisers, Inc. | 1.13%1 | 6.40% | 4.66% | 3.79% |
Seeks long-term capital growth, consistent with preservation of capital and balanced by current income. | Janus Henderson Balanced Portfolio Service Shares ; Janus Henderson Investors US LLC | 0.87% | 15.13% | 9.37% | 7.73% |
Seeks to provide total return. | Macquarie VIP Asset Strategy Series Service Class (formerly called Delaware Ivy VIP Asset Strategy Class II); Delaware Management Company | 0.85%1 | 13.90% | 8.27% | 3.48% |
Seeks total return. | MFS® Total Return Series – Service Class ; Massachusetts Financial Services Company | 0.86%1 | 10.22% | 8.27% | 6.27% |
Seeks long-term growth of capital and low to moderate income, while giving consideration to certain environmental, social and governance (“ESG”) criteria. | Pacific Select Fund ESG Diversified Portfolio Class I ; Pacific Life Fund Advisors LLC | 0.80%1 | 15.78% | N/A | N/A |
Seeks to provide capital appreciation. | Pacific Select Fund Hedged Equity Portfolio Class I ; Pacific Life Fund Advisors LLC (JPMorgan Investment Management, Inc.) | 0.90% | 15.69% | N/A | N/A |
Seeks current income and moderate growth of capital. | Pacific Select Fund Pacific Dynamix – Conservative Growth Portfolio Class I ; Pacific Life Fund Advisors LLC | 0.59%1 | 11.68% | 5.69% | 4.51% |
Seeks long-term growth of capital and low to moderate income. | Pacific Select Fund Pacific Dynamix – Moderate Growth Portfolio Class I ; Pacific Life Fund Advisors LLC | 0.59%1 | 15.04% | 7.89% | 5.85% |
Seeks current income and preservation of capital. | Pacific Select Fund Portfolio Optimization Conservative Portfolio Class I ; Pacific Life Fund Advisors LLC | 0.85% | 9.22% | 3.13% | 2.84% |
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Investment Objective | Fund; Advisor (Subadvisor) | Current | Average
Annual Total Returns | ||
1 Year | 5 Year | 10 Year | |||
Seeks long-term growth of capital and low to moderate income. | Pacific Select Fund Portfolio Optimization Moderate Portfolio Class I ; Pacific Life Fund Advisors LLC | 0.88% | 13.88% | 6.78% | 5.17% |
Seeks current income and moderate growth of capital. | Pacific Select Fund Portfolio Optimization Moderate-Conservative Portfolio Class I ; Pacific Life Fund Advisors LLC | 0.87% | 11.06% | 4.95% | 4.02% |
Seeks long-term growth of capital and low to moderate income. | Pacific Select Fund PSF Avantis Balanced Allocation Portfolio Class D ; Pacific Life Fund Advisors LLC | 0.67%1 | 13.83% | 7.88% | N/A |
1To help limit Fund expenses, Fund advisers have contractually agreed to reduce investment advisory fees or otherwise reimburse certain of their Funds which reflect temporary fee reductions. There can be no assurance that Fund expense waivers or reimbursements will be extended beyond their current terms as outlined in each Fund prospectus, and they may not cover certain expenses such as extraordinary expenses. See each Fund prospectus for complete information regarding these arrangements.
2The Fidelity VIP Government Money Market can only be used in the event an allowable Investment Option is liquidated by a Fund.
LIVING BENEFIT INVESTMENT ALLOCATION REQUIREMENTS
Investment Allocation Requirements
You must allocate your entire Contract Value to Investment Options we make available for these Riders. All living benefit riders have the same investment allocation requirements. You may allocate your Contract Value 100% among the allowable Investment Options. You may also use the DCA Plus program to transfer amounts to Investment Options listed below.
Allowable Investment Options |
All available Investment Options are allowable Investment Options for rider purposes. However, the Fidelity VIP Government Money Market can only be used in the event an allowable Investment Option is liquidated by a Fund.
You may transfer your entire Contract Value between an allowable Investment Options, subject to certain transfer limitations and availability. See HOW YOUR PURCHASE PAYMENTS ARE ALLOCATED – Transfers and Market-timing Restrictions.
We currently do not offer any asset allocation programs or models. We reserve the right to add an asset allocation model or program as an additional optional Investment Option in the future and add, remove or change allowable Investment Options at any time. We may make such a change due to a fund reorganization, fund substitution, to help protect our ability to provide the guarantees under these riders (for example, changes in an underlying fund’s investment objective and principal investment strategies, or changes in general market conditions). If you already invested in an allowable Investment Option, a change to an existing allowable Investment Option will not require you to reallocate or transfer the total amount of Contract Value allocated to an affected Investment Option, except when an underlying fund is liquidated by a determination of its Board of Directors or by a fund substitution. If a change is required that will result in a reallocation or transfer of an existing Investment Option, we will provide you with reasonable notice (generally 90 calendar days) prior to the effective date of such change to allow you to reallocate your Contract Value to maintain your rider benefits. If you do not reallocate your Contract Value your rider will terminate.
We will send you written notice in the event any transaction made by you will involuntarily cause the rider to terminate for failure to invest according to the investment allocation requirements. However, you will have 10 Business Days starting from the date of our written notice (“10 day period”), to instruct us to take appropriate corrective action to continue participation in an allowable asset allocation program or allowable Investment Options to continue the rider. If you take appropriate corrective action and continue the rider, the rider benefits and features available immediately before the terminating event will remain in effect.
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Our right to add or remove allowable Investment Options, may limit the number of Investment Options that are available to you under your Contract in the future. We have the right to significantly reduce the number of allowable Investment Options even to a single conservative Investment Option. Please discuss with your financial professional if this Contract is appropriate for you given our right to make changes to the allowable Investment Options.
Certain of the asset allocation portfolios that are allowable Investment Options, including the Pacific Select Fund asset allocation portfolios, may use futures and options to reduce the portfolios’ equity exposure during periods when market indicators suggest high market volatility. This strategy is designed to reduce the risk of market losses from investing in equity securities. However, this strategy may result in periods of underperformance, including periods when specified benchmark indexes are appreciating but market volatility is high. As a result, your Contract Value may increase less than it would have without these defensive actions.
The allowable Investment Options seek to minimize risk and may reduce overall volatility in investment performance, which may reduce investment returns, and may reduce the likelihood that we will be required to provide benefits under the optional benefit Rider. The reduction in volatility permits us to more effectively provide the guarantees under the Contract.
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This summary prospectus incorporates by reference the prospectus and Statement of Additional Information for the Contract, both dated May 1, 2024, as supplemented. The SAI may be obtained, free of charge, in the same manner as the prospectus.
EDGAR Contract Identifier: C000219445
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