[Transamerica Life Insurance Company]
November 9, 2009
Mr. Craig Ruckman
Office of Insurance Products
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
Re: | Transamerica Life Insurance Company | |||
Separate Account VA Y Flexible Premium Variable Annuity—J File Nos. 333-131987/811-21858 |
Dear Mr. Ruckman:
This letter responds to oral comments that you provided with respect to the above-referenced post-effective amendment filing for Separate Account VA Y of Transamerica Life Insurance Company (“Transamerica” or “we”). For your convenience, I have restated those comments below (as best we understand them), and followed each comment with our response.
1. In the Fee Table under “Total Separate Account Annual Expenses With Highest Optional Separate Account Expenses” need to clarify what is included. Please add to the Footnote the following, “The death benefits are mutually exclusive.”
Response: Please see Page 6 of the Supplement attached.
2. Please add formatting to the fee table so that the Optional Riders are separated to clearly show what is part of each total.
Response: Please see Pages 3 - 4 of the Supplement attached.
3. Under the Optional Riders RIC 1.2 and 1.4, add to the footnotes descriptions of the combinations used in the Maximum and Current totals with Highest Combinations of Benefits.
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Response: Please see Page 7 of the Supplement attached.
I trust that the responses provided in this letter address your comments adequately. If you have any questions regarding these responses, please contact the undersigned at 319-355-8330. Thank you very much for your assistance with this filing.
Sincerely,
|
| /S/ DARIN D. SMITH |
| Darin D. Smith |
| General Counsel |
| Transamerica Capital Management Division |
| Transamerica Life Insurance Company |
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Subadvised by Hanlon Investment Management, Inc.
Transamerica Hanlon Growth VP – Service Class
Transamerica Hanlon Growth and Income VP – Service Class
Transamerica Hanlon Balanced VP – Service Class
Transamerica Hanlon Managed Income VP – Service Class
Subadvised by J.P. Morgan Investment Management Inc.
Transamerica JPMorgan Mid Cap Value VP – Service Class
Subadvised by AEGON USA Investment Management, LLC.
Transamerica Index 35 VP – Service Class
Transamerica Index 100 VP – Service Class
GE INVESTMENTS FUNDS, INC.
Managed by GE Asset Management, Inc.
GE Investments Total Return Fund – Class 3
Please note:
| • | The American Funds - Asset Allocation Fund - Class 2, American Funds - Bond Fund - Class 2, American Funds - Growth Fund - Class 2, American Funds - Growth Income Fund - Class 2, American Funds - International Fund - Class 2, and GE Investments Total Return Fund - Class 3 investment choices have a Fund Facilitation Fee. |
| • | The American Funds - Asset Allocation Fund - Class 2, American Funds - Bond Fund - Class 2, Transamerica Foxhall Global Conservative VP - Service Class, Transamerica Index 35 VP - Service Class, and GE Investments Total Return Fund - Class 3 investment choices have been added as Designated Investment Choices under the Retirement Income ChoiceSM, Retirement Income ChoiceSM with Double Withdrawal Base Benefit, Retirement Income ChoiceSM 1.2, and Retirement Income ChoiceSM 1.4 riders, as well as the Double Enhanced Death Benefit. |
| • | These investment choices may vary for certain policies and may not be available for all policies. |
The following hereby amends the corresponding paragraphs in the SUMMARY Section 5. Expenses in the prospectus.
5. EXPENSES
We deduct a daily fund facilitation fee from the assets in certain investment choices at an annual rate (as a percentage of the subaccount’s value) as follows:
| • | 0.30% if you choose the American Funds - Asset Allocation Fund - Class 2, American Funds - Bond Fund Class 2, American Funds - Growth Fund - Class 2, American Funds - Growth-Income Fund - Class 2, or American Funds - International Fund - Class 2 |
| • | 0.20% if you choose the GE Investments Total Return Fund – Class 3 |
The following hereby replaces the corresponding ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES in the prospectus.
ANNUITY POLICY FEE TABLE AND EXPENSE EXAMPLES
The following describes the fees and expenses that you will pay when buying, owning, and surrendering the policy.Please be certain to review the notes following the fee table and expense examples for further informationabout the fees and charges presented.The order of the notes follows the order in which the fees and charges under the policy are presented in the fee tables and the expense examples.
The first section describes the fees and expenses that you will pay at the time that you buy the policy, surrender the policy, or transfer cash value between investment choices. State premium taxes may also be deducted. Excess interest adjustments may be made to amounts surrendered or applied to annuity payment options from cash value from the fixed account. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)
Policy Owner Transaction Expenses: | |||
Sales Load On Purchase Payments | 0% | ||
Maximum Surrender Charge (as a % of premium payments surrendered) | |||
Base Policy | 5% | ||
Transfer Fee | $ | 0 - $10 | |
Special Service Fee | $ | 0 - $25 |
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The next section describes the fees and expenses that you will pay periodically during the time that you own the policy, not including portfolio fees and expenses. (All fees are maximum for purchases made while this prospectus is effective unless otherwise noted.)
Annual Service Charge | $ | 0 - $35 per policy | |
Separate Account Annual Expenses (as a percentage, annually, of average separate account value): | |||
Base Separate Account Expenses: | |||
Mortality and Expense Risk Fee | 0.85% | ||
Administrative Charge | 0.15% | ||
Total Base Separate Account Annual Expenses | 1.00% | ||
Optional Separate Account Expenses: | |||
Annual Step-Up Death Benefit | 0.35% | ||
Return of Premium Death Benefit | 0.15% | ||
Fund Facilitation Fee | 0.30% | ||
Access Rider | 0.20% | ||
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses | 1.85% | ||
Optional Rider Fees: | |||
Additional Death Distribution (annual charge based on policy value) | 0.25% | ||
Additional Death Distribution+ (annual charge based on policy value) | 0.55% | ||
Living Benefits Rider (annual charge - a % of Total Withdrawal Base) | 0.90% | ||
Retirement Income Choice RiderSM - Single Life Option (annual charge - a % of Withdrawal Base) | |||
Base Benefit (Maximum) | 1.35% | ||
Base Benefit (Current) | 0.60% | ||
Additional Benefits available with the Retirement Income ChoiceSM Rider: | |||
Death Benefit | 0.25% | ||
Income Enhancement Benefit | 0.15% | ||
Maximum Total Retirement Income ChoiceSM Rider Fees (Single Life) with Highest Combination of | 1.75% | ||
Current Total Retirement Income ChoiceSM Rider Fees (Single Life) with | 1.00% | ||
Retirement Income ChoiceSM Rider - Joint Life Option (annual charge - a % of Withdrawal Base): | |||
Base Benefit (Maximum) | 1.65% | ||
Base Benefit (Current) | 0.90% | ||
Additional Benefits available with the Retirement Income ChoiceSM Rider: | |||
Death Benefit | 0.20% | ||
Income Enhancement Benefit | 0.30% | ||
Maximum Total Retirement Income ChoiceSM Rider Fees (Joint Life) with Highest Combination of | 2.15% | ||
Current Total Retirement Income ChoiceSM Rider Fees (Joint Life) with | 1.40% | ||
Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider - Single Life Option | |||
Base Benefit (Maximum) | 1.65% | ||
Base Benefit (Current) | 0.90% | ||
Additional Benefits available with the Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider: | |||
Death Benefit | 0.25% | ||
Income Enhancement Benefit | 0.15% | ||
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Maximum Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees | 2.05% | |
Current Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees | 1.30% | |
Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider - Joint Life Option | ||
Base Benefit (Maximum) | 1.65% | |
Base Benefit (Current) | 0.90% | |
Additional Benefits available with the Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider: | ||
Death Benefit | 0.20% | |
Income Enhancement Benefit | 0.30% | |
Maximum Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees | 2.15% | |
Current Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees | 1.40% | |
Retirement Income ChoiceSM 1.2 Rider (annual charge a - % of withdrawal base): | ||
Base Benefit Open Allocation Option (Maximum) | 1.85% | |
Base Benefit Open Allocation Option (Current) | 1.10% | |
Base Benefit Designated Allocation Group A (Maximum) | 2.00% | |
Base Benefit Designated Allocation Group A (Current) | 1.25% | |
Base Benefit Designated Allocation Group B (Maximum) | 1.65% | |
Base Benefit Designated Allocation Group B (Current) | 0.90% | |
Base Benefit Designated Allocation Group C (Maximum) | 1.15% | |
Base Benefit Designated Allocation Group C (Current) | 0.40% | |
Additional Benefits available with the Retirement Income ChoiceSM 1.2 Rider: | ||
Death Benefit (Single Life Option) | 0.25% | |
Death Benefit (Joint Life Option) | 0.20% | |
Income Enhancement Benefit (Single Life Option) | 0.15% | |
Income Enhancement Benefit (Joint Life Option) | 0.30% | |
Maximum Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) | 2.50% | |
Current Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) | 1.75% | |
Retirement Income ChoiceSM 1.4 Rider (annual charge a - % of withdrawal base): | ||
Base Benefit Designated Allocation Group A (Maximum) | 2.00% | |
Base Benefit Designated Allocation Group A (Current) | 1.25% | |
Base Benefit Designated Allocation Group B (Maximum) | 1.65% | |
Base Benefit Designated Allocation Group B (Current) | 0.90% | |
Base Benefit Designated Allocation Group C (Maximum) | 1.15% | |
Base Benefit Designated Allocation Group C (Current) | 0.40% | |
Additional Benefits available with the Retirement Income ChoiceSM 1.4 Rider: | ||
Death Benefit (Single Life Option) | 0.25% | |
Death Benefit (Joint Life Option) | 0.20% | |
Income Enhancement Benefit (Single Life Option) | 0.15% | |
Income Enhancement Benefit (Joint Life Option) | 0.30% | |
Maximum Total Retirement Income ChoiceSM 1.4 Rider Fees (Joint Life) with Highest Combination of | 2.50% | |
Current Total Retirement Income ChoiceSM 1.4 Rider Fees (Joint Life) with Highest Combination of | 1.75% | |
The next section shows the lowest and highest total operating expenses charged by the underlying fund portfolios for the year ended December 31, 2008 (before any fee waiver or expense reimbursements). Expenses may be higher or lower in future years. More detail concerning each portfolio’s fees and expenses is contained in the prospectus for each portfolio.
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Total Portfolio Annual Operating Expenses (Expenses that are deducted from portfolio assets, including management fees, distribution and/or service 12b-1 fees, and other expenses):
Lowest Gross | 0.53% | |
Highest Gross | 1.64% |
The following Example is intended to help you compare the cost of investing in the policy with the cost of investing in other variable annuity policies. These costs include policy owner transaction expenses, policy fees, separate account annual expenses, and portfolio fees and expenses.
The Example assumes that you invest $10,000 in the policy for the time periods indicated. The Example also assumes that your investment has a 5% return each year, the highest fees and expenses of any of the portfolios for the year ended December 31, 2008, and the base policy with the combination of available optional features or riders with the highest fees and expenses, including the Highest Fund Facilitation Fee, Annual Step-Up Death Benefit, Additional Death Distribution+ Rider, and Retirement Income ChoiceSM 1.4 Rider - Joint Life with additional Death Benefit and Income Enhancement options. Although your actual costs may be higher or lower, based on these assumptions, your costs would be:
Expense Examples:
If the policy is surrendered at the end of the applicable time period (without Access Rider): | |||
1 Year | $ | 1025 | |
3 Years | $ | 2014 | |
5 Years | $ | 3030 | |
10 Years | $ | 6045 |
If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy | |||
1 Year | $ | 575 | |
3 Years | $ | 1744 | |
5 Years | $ | 2940 | |
10 Years | $ | 6045 | |
If the policy is surrendered at the end of the applicable time period (with Access Rider): | |||
1 Year | $ | 595 | |
3 Years | $ | 1801 | |
5 Years | $ | 3028 | |
10 Years | $ | 6196 |
If the policy is annuitized at the end of the applicable time period or if you do not surrender your policy | |||
1 Year | $ | 595 | |
3 Years | $ | 1801 | |
5 Years | $ | 3028 | |
10 Years | $ | 6196 |
Please remember that the Example is an illustration and does not represent past or future expenses. Your actual expenses may be lower or higher than those reflected in the Example. Similarly, your rate of return may be more or less than the 5% assumed in the Example.
For information concerning compensation paid for the sale of the policies, see “Distributor of the Policies.”
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NOTES TO FEE TABLE AND EXPENSE EXAMPLES
Annuity Policy Fee Table and Expense Examples: The fee table applies only to the accumulation phase and reflects the maximum charges unless otherwise noted. During the income phase the fees may be different than those described in the Fee Table. See section “5. Expenses”.
Policy Owner Transaction Expenses:
Maximum Surrender Charge: The surrender charge, if any is imposed, applies to each premium, regardless of how policy value is allocated among the investment choices. The surrender charge decreases based on the number of years since the premium payment was made. If you select the Life with Emergency Cash® annuity payment option, you will be subject to a surrender charge after the annuity commencement date. See section “5. Expenses”.
Transfer Fee: The transfer fee, if any is imposed, applies to each policy, regardless of how policy value is allocated among the investment choices. There is no fee for the first 12 transfers per policy year. For additional transfers, the Company may charge a fee of $10 per transfer.
Special Service Fees: We may deduct a charge for special services, such as overnight delivery.
Annual Service Charge:
Annual Service Charge: The annual service charge is assessed on each policy anniversary and at surrender. The charge is waived if your policy value, or the sum of your premiums less all partial surrenders, is at least $50,000.
Separate Account Annual Expenses:
Mortality and Expense Risk Fee: The mortality and expense risk fee shown is for the accumulation phase with the base death benefit.
Optional Separate Account Expenses: Any optional separate account expense is in addition to the mortality and expense risk and administrative fees.
Fund Facilitation Fee: This daily fee is applied only to policy value in the subaccounts invested in the AllianceBernstein Balanced Wealth Strategy Portfolio - Class B (0.20%), the Franklin Templeton VIP Founding Funds Allocation Fund - Class 4 (0.15%), Transamerica BlackRock Global Allocation VP - Service Class (0.10%), American Funds - Asset Allocation Fund - Class 2 (0.30%), American Funds - Bond Fund - Class 2.(0.30%), American Funds - Growth Fund - Class 2 (0.30%), American Funds - Growth-Income Fund - Class 2 (0.30%), American Funds - International Fund - Class 2 (0.30%), and GE Investments Total Return Fund - Class 3 (0.20%). See section “5. Expenses”.
Access Rider: The fee is a percentage of the daily net asset value in the separate account.
Total Separate Account Annual Expenses with Highest Optional Separate Account Expenses: This reflects the base separate account expenses, the Annual Step-Up Death Benefit fee, the Fund Facilitation fee, plus the Access rider fee, but does not include any annual optional rider fees. The death benefits are mutually exclusive.
Optional Rider Fees:
Optional Rider Fees: In some cases, riders to the policy are available that provide optional benefits. There are additional fees (each year) for those riders.
Additional Death Distribution Rider and Additional Death Distribution+ Rider: This annual fee is a percentage of the policy value and is only deducted during the accumulation phase.
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Living Benefits Rider: The annual fee is a percentage of the “principal back” Total Withdrawal Base. The “principal back” Total Withdrawal Base on the rider date is the policy value (less any premium enhancements if the rider is added in the first policy year). After the rider date, the “principal back” Total Withdrawal Base is equal to: the “principal back” Total Withdrawal Base on the rider date; plus subsequent premium payments; less subsequent “principal back” adjusted partial withdrawals.
Retirement Income ChoiceSM Rider, Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider, Retirement Income ChoiceSM 1.2 Rider, and Retirement Income ChoiceSM 1.4 - base benefit: The fee is a percentage of the Withdrawal Base. The Withdrawal Base on the rider date is the policy value (less any premium enhancement, if the rider is added in the first policy year). During any rider year, the Withdrawal Base is equal to the Withdrawal Base on the rider date or most recent rider anniversary, plus subsequent premium payments, less subsequent Withdrawal Base adjustments.
Retirement Income ChoiceSM Rider, Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider, Retirement Income ChoiceSM 1.2 Rider, and Retirement Income ChoiceSM 1.4 Rider - Additional Benefits (Single Life and Joint Life Options): You may elect the Retirement Income ChoiceSM Rider, the Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider, the Retirement Income ChoiceSM 1.2 Rider, or the Retirement Income ChoiceSM 1.4 Rider with one or more of the following options - Death Benefit or Income Enhancement Benefit. The charge for each of these options is a percentage of the Withdrawal Base and is in addition to the base benefit fee.
Maximum Total Retirement Income ChoiceSM Rider Fees with Highest Combination of Benefits, Maximum Total Retirement Income ChoiceSM with Double Withdrawal Base Benefit Rider Fees with Highest Combination of Benefits, Maximum Total Retirement Income ChoiceSM 1.2, and Maximum Total Retirement Income ChoiceSM 1.4 Rider Fees with Highest Combination of Benefits: After the fifth rider anniversary, the base benefit rider fees can increase when there is an automatic step-up. These fee totals reflect the maximum fee increase resulting from an automatic step-up of the Withdrawal Base while the rider is in effect.
Maximum Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Maximum), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).
Current Total Retirement Income ChoiceSM 1.2 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Current), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).
Maximum Total Retirement Income ChoiceSM 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Maximum), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).
Current Total Retirement Income ChoiceSM 1.4 Rider Fees (Joint Life) with Highest Combination of Benefits: This reflects the Base Benefit Designated Allocation Group A (Current), the Death Benefit (Joint Life Option), plus the Income Enhancement Benefit (Joint Life Option).
Total Portfolio Annual Operating Expenses:
Total Portfolio Annual Operating Expenses: The fee table information relating to the underlying fund portfolios was provided to the Company by the underlying fund portfolios, their investment advisors or managers, and the Company has not and cannot independently verify the accuracy or completeness of such information. Actual future expenses of the portfolios may be greater or less than those shown in the Table.
Expense Examples:
Expense Examples: The Example does not reflect premium tax charges or transfer fees. Different fees and expenses not reflected in the Example may be assessed during the income phase of the policy.
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