Separate Account No. 70 of AXA Equitable Life Insurance
Filed: 15 May 15, 12:00am
Russell Shepherd
Lead Director &
Associate General Counsel
(212) 314-3944
Fax: (212) 314-3955
May 15, 2015
Elisabeth Bentzinger, Esquire
Division of Investment Management
Mail Stop 8629
Washington, DC 20549-8629
| Re: | Correspondence to the Initial Filing of the Registration Statement on Form N-4 for AXA Equitable Life Insurance Company file Nos. 333-202147 and 811-22651 (CIK # 0001537470) (“Registration Statement”) |
Dear Ms. Bentzinger:
This letter responds to the oral comments that you provided on May 13, 2015 with respect to the above referenced filing for Separate Account No. 70 of AXA Equitable Life Insurance Company (“the Company”). For your convenience, I have restated those comments below and followed each comment with the Company’s response.
The Company will file a Pre-Effective amendment to the above-referenced Registration Statement to incorporate these and any other changes.
Prospectus:
| 1. | In the Fee Table, please delete the exclusory language related to the AXA Ultra Conservative Strategy Portfolio in footnote 13. |
Response: The Company has made the requested change. (See page 18)
| 2. | Please make clear each time that the Return of Death Benefit is described that is only provides for return of contributions to the Protected Benefit account and not the contract as a whole. |
Response: The Company has made the requested change. (See pages 12, 51 and 76)
| 3. | Please represent, with respect to the AXA Ultra Conservative Strategy Portfolio, that the next time the underlying fund prospectus is updated in the normal course of business, it will include disclosure that there may be a delay in processing an exchange on specified delay basis under Section 11. |
Response: The Company confirms that the underlying fund prospectus will be updated in the normal course of business to include disclosure to that effect.
| 4. | In the section “Definition of key terms”, please consider adding the five guaranteed benefits to the definition of “Guaranteed benefits”, which are disclosed on the cover page. |
Response: The Company has made the requested change. (See page 6)
| 5. | In the section “Definition of key terms”, please revise in the definition for “Guaranteed benefits” to make it clear that while the Return of Principal does not have a fee it must be selected with the Guaranteed minimum income benefit that does have a fee. |
Response: The Company has made the requested. (See page 6)
| 6. | Under the heading “Contributions amounts” in the section “Retirement Cornerstone®Series E at a glance - key features” please add the consequences of requiring that additional contributions be funded through complete exchanges, rollovers or transfers and as a result the owner may not be able to increase his/her Guaranteed base values and associated benefit bases. |
Response: The Company has made the requested change. (See page 13)
| 7. | Under the heading “Exchange Program” in the section “Retirement Cornerstone®Series E at a glance - key features” please revise the second bullet to make the terminology related to Guaranteed benefits consistent in this section. |
Response: The Company has made the requested change and made additional revisions to this section. (See page 15)
| 8. | Under the heading “Exchange Program” in the section “Retirement Cornerstone®Series E at a glance - key features” please consider deleting the fourth bullet to avoid investor confusion. |
Response: The Company has made the requested change and made additional revisions to this section. (See page 15)
| 9. | Under the heading “Exchange Program” in the section “Retirement Cornerstone® Series E at a glance - key features” please add at the end of item number 10, after the disclosure that a negative market value adjustment would decrease the total account value, that it would therefore decrease their surrender proceeds. |
Response: The Company has made the requested change and made additional revisions to this section. (See page 16)
| 10. | In the Fee Table, please revise both headings to “Whether or not you surrender your contract at the end of the applicable time period”. |
Response: The Company has made the requested change. (See page 19)
| 11. | In the Fee Table, please revise in the first table for options (a) and (b) to clarify it assumes the minimum fees and expenses of the Protect Benefit account investment options and not minimum fees and expenses of any of the Portfolios. |
Response: The Company has made the requested change. (See page 19)
| 12. | Please clarify in the disclosure under the heading “How you can make your contributions” that in the event the application is incomplete the company will get consent from the contract owner within 5 business days that it will hold the exchange for 30 days in order to obtain any missing information on the application or form before cancelling the exchange. |
Response: The Company has made the requested change. (See page 22)
| 13. | Under the heading “Allocating your contributions”, please delete references to broker dealers other than AXA Advisors. |
Response: The Company has made the requested change. (See page 36)
| 14. | Under the heading “ATP exit option” does exercising the ATP exit option result in a recalculation of the benefit base? If so, please disclose the effect including any magnified effect a small transfer may cause. |
Response: The Company has made the requested change. (See page 50)
| 15. | Under 1035 Exchanges in the “Tax Information” section please revise the new added language so it just applies to internal exchanges. |
Response: The Company has made the requested change. (See page 85)
| 16. | Under Appendix V, please remove references to broker dealers other than AXA Advisors, withdrawal charges or surrender charges for California on page V-1, New York on page V-3 and Puerto Rico on page V-4. |
Response: The Company has made the requested changes. (See Appendix V, pages V-1, V-3 and V-4)
Marketing Materials:
| 17. | The fact sheet provides that subsequent minimum contributions for Traditional IRA and Roth IRA is $50, please revise since the prospectus states the minimum subsequent contribution is $500. |
Response: The Company will revise the Prospectus.
| 18. | The fact sheet provides that the maximum contribution is $1.5 million. Please revise to include a maximum contribution amount of $2.5 million if the aggregated contributions under all AXA Equitable annuity accumulation contracts are with the same owner or annuitant. |
Response: The Company will revise the fact sheet.
| 19. | The fact sheet provides that contributions are permitted only from certain existing variable annuity contracts issued by AXA Equitable. Contributions to the Protected Benefit Account are not permitted after the earlier of the date of first withdrawal from the Protected Benefit Account or through age 65, 70 or 80, depending on your Guaranteed Minimum Death Benefit (GMDB) election (or if later, the first contract date anniversary). Contributions to the Investment Account are permitted through age 85 or if later, the first contract date anniversary. Please consider revising if age 65 is not correct or inconsistent with the prospectus disclosure. |
Response: The Company believes the fact sheet’s use of “through age 65” is consistent with the prospectuses use of “under age 66”.
| 20. | In the fact sheet, please consider adding the disclosure under “Contribution Limitations” that partial exchanges, rollovers, and transfers are not acceptable sources of contributions, as well as the possible consequences of requiring that additional contributions be funded through complete exchanges, rollovers, or transfers (e.g., the owner must surrender the Prior Contract; the owner may not be able to make additional contributions; the owner may not be able to increase his Guaranteed benefit values and associated benefit bases). |
Response: The Company will revise the fact sheet.
| 21. | In the fact sheet under “Other Specifications”, please consider revising the disclosure that youmay elect the GMIB Two-Year Lock and/or a guaranteed minimum death benefit rider and inset the word “must”. |
Response: The Company will revise the fact sheet.
| 22. | In the fact sheet under the “Guaranteed Interest Option (“GIO”), it states that no more than 25% of the total AAV may be allocated to the GIO. Please consider revising so it’s consistent with the prospectus. |
Response: The Company will revise the fact sheet.
| 23. | In the fact sheet under “Portfolio Operating Expenses” please consider adding that the expenses are as of year-end December 31, 2014. Please revise the expense ranges since they are not consistent with the prospectus. |
Response: The Company will revise the fact sheet.
| 24. | In the fact sheet under the “Expense Calculations”, please consider revising the reference to the statement “Net expense is most likely what you can expect to pay in a given year for the respective portfolio.” |
Response: The Company will revise the fact sheet.
| 25. | In the buck slip, please consider revising the following statement that “withdrawals taken within the first contract year will reduce your benefit base on a pro-rata basis” to include the Annual Roll-up amount will be reduced dollar-for-dollar. |
Response: The Company will revise the buck slip.
| 26. | In the buck slip, please consider revising the following statement that “Beginning with the third contract year, annual roll-up rates are tied to the 10-Year Treasury and can grow as high as 8%, but never below 4%” to include references to the Deferral Roll-up rate. |
Response: The Company will revise the buck slip.
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 (212) 314 - 3944. Thank you very much for your assistance with this filing.
| Very truly yours, |
/s/ Russell Shepherd |
| Russell Shepherd |
| cc: | Christopher E. Palmer, Esq. |
Goodwin Procter LLP
Retirement Cornerstone(R) Series 15.0
Series E
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED MAY 26, 2015
PLEASE READ AND KEEP THIS PROSPECTUS FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING OR TAKING ANY
OTHER ACTION UNDER YOUR CONTRACT. THIS PROSPECTUS SUPERCEDES ALL PRIOR
PROSPECTUSES AND SUPPLEMENTS. YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST,
WHICH CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
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WHAT IS THE RETIREMENT CORNERSTONE(R) SERIES 15.0?
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The Retirement Cornerstone(R) Series 15.0 (the "Retirement Cornerstone (R)
Series") are deferred annuity contracts issued by AXA EQUITABLE LIFE INSURANCE
COMPANY. This Prospectus only describes one such series of the Retirement
Cornerstone(R) Series 15.0, which is Retirement Cornerstone(R) Series E
("Retirement Cornerstone(R) Series E" or "Series E"). The contract provides for
the accumulation of retirement savings and for income. The contract offers
income and death benefit protection as well. It also offers a number of payout
options. You invest to accumulate value on a tax-deferred basis in one or more
of our "investment options": (i) variable investment options, (ii) the
guaranteed interest option, or (iii) the account for special dollar cost
averaging ("Special DCA program").
The Retirement Cornerstone(R) Series E contract is available only through an
exchange program under which certain existing variable annuity contracts issued
by AXA Equitable ("Prior Contracts") may be exchanged for this contract. Only
full exchanges, rollovers or transfers from Prior Contracts are permitted as
contributions. No other source of contributions are permitted. Partial
exchanges, rollovers or transfers are not permitted as contributions. To see a
summary comparison of some of the features of Prior Contracts and the
Retirement Cornerstone(R) Series E contract, see Appendix X -- "Exchange
program", later in this Prospectus. In order to purchase this contract you must
elect one or more of the Guaranteed benefits described in this Prospectus. See
"Retirement Cornerstone(R) Series E at a glance -- key features" later in this
Prospectus and "How you can purchase and contribute to your contract" in
"Contract features and benefits" for more information.
</R>
This Prospectus is a disclosure document and describes all of the contract's
material features, benefits, rights and obligations, as well as other
information. The description of the contract's material provisions in this
Prospectus is current as of the date of this Prospectus. If certain material
provisions under the contract are changed after the date of this Prospectus in
accordance with the contract, those changes will be described in a supplement
to this Prospectus. You should carefully read this Prospectus in conjunction
with any applicable supplements.
The contract may not currently be available in all states. In addition, certain
features and benefits described in this Prospectus may vary in your state and
may not be available at the time you purchase the contract. For a
state-by-state description of all material variations of this contract, see
Appendix V later in this Prospectus. All features and benefits may not be
available in all contracts or from all selling broker-dealers. You may contact
us to purchase any version of the contract if a version is not offered by the
selling broker-dealer. We have the right to restrict availability of any
optional feature or benefit. Not all optional features and benefits may be
available in combination with other optional features and benefits. WE RESERVE
THE RIGHT TO DISCONTINUE ACCEPTANCE OF ANY APPLICATION OR CONTRIBUTION FROM YOU
AT ANY TIME, INCLUDING AFTER YOU PURCHASE THE CONTRACT. IF YOU HAVE ONE OR MORE
GUARANTEED BENEFITS AND WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF,
AND/OR PLACE ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS TO THE CONTRACT AND/OR
CONTRIBUTIONS AND/OR TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT VARIABLE
INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO FUND YOUR GUARANTEED
BENEFIT(S). THIS MEANS THAT IF YOU HAVE NOT YET ALLOCATED AMOUNTS TO THE
PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO
FUND YOUR GUARANTEED BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY
FUNDED YOUR GUARANTEED BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTED BENEFIT
ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTED BENEFIT ACCOUNT VALUE AND THE BENEFIT BASES ASSOCIATED WITH YOUR
GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS.
In order to fund certain benefits, you must select specified investment
options. The specified investment options are made available under a portion of
the contract that we refer to as the Protected Benefit account. Only amounts
you allocate to the Protected Benefit account variable investment options and
amounts in the Special DCA program designated for future transfers to the
Protected Benefit account variable investment options will fund your Guaranteed
benefits. See "What are your investment options under the contract?" and
"Allocating your contributions" in "Contract features and benefits" later in
this Prospectus for more information on applicable allocation requirements.
If you have the Guaranteed minimum income benefit (''GMIB"), you are required
to participate in the asset transfer program (''ATP''). The ATP helps us manage
our financial exposure in providing the guaranteed benefits, by using
predetermined mathematical formulas to move account value between the AXA Ultra
Conservative Strategy investment option and the other Protected Benefit account
variable investment options. For more information, see ''Asset transfer program
(''ATP'')'' in ''Contract features and benefits'' later in this Prospectus.
TYPES OF CONTRACTS. We offer the contracts for use as:
.. A nonqualified annuity ("NQ") for after-tax contributions only.
.. An individual retirement annuity ("IRA"), either traditional IRA or Roth
IRA.
.. An annuity that is an investment vehicle for a qualified plan ("QP")
(whether defined contribution or defined benefit; transfer contributions
only).
The optional Guaranteed benefits under the contract include: (i) the Guaranteed
minimum income benefit ("GMIB"), (ii) the Return of Principal death benefit;
(iii) the Highest Anniversary Value death benefit; (iv) the RMD Wealth Guard
death benefit; and (v) the "Greater of" death benefit (collectively, the
"Guaranteed benefits").
The registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated May 26, 2015, is part of the registration statement.
The SAI is available free of charge. You may request one by writing to our
processing office at P.O. Box 1547, Secaucus, NJ 07096-1547 or calling
1-800-789-7771. The SAI is incorporated by this reference into this Prospectus.
This Prospectus and the SAI can also be obtained from the SEC's website at
www.sec.gov. The table of contents for the SAI appears at the back of this
Prospectus.
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
(RC 15.0 Series E)
Our variable investment options are subaccounts offered through Separate
Account No. 70. Each variable investment option, in turn, invests in a
corresponding securities portfolio ("Portfolio") of one of the trusts (the
"Trusts"). Below is a complete list of the variable investment options:
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VARIABLE INVESTMENT OPTIONS
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<R>
AXA PREMIER VIP TRUST
.. AXA Moderate Allocation
.. Charter/SM/ Alternative 100 Moderate
.. Charter/SM/ International Moderate
.. Charter/SM/ Moderate
.. Charter/SM/ Moderate Growth
.. Charter/SM/ Real Assets
.. Charter/SM/ Small Cap Value
EQ ADVISORS TRUST
.. All Asset Aggressive - Alt 25
.. All Asset Growth - Alt 20
.. All Asset Moderate Growth - Alt 15
.. AXA Aggressive Strategy/(1)/
.. AXA Balanced Strategy/(1)/
.. AXA Conservative Growth Strategy/(1)/
.. AXA Conservative Strategy/(1)/
.. AXA Growth Strategy/(1)/
.. AXA Moderate Growth Strategy/(1)/
.. AXA Ultra Conservative Strategy/(2)/
.. AXA International Core Managed Volatility
.. AXA Large Cap Value Managed Volatility
.. AXA Mid Cap Value Managed Volatility
.. AXA Natural Resources
.. AXA/AB Dynamic Growth/(1)/
.. AXA/AB Dynamic Moderate Growth/(1)/
.. AXA/AB Small Cap Growth
.. AXA/DoubleLine Opportunistic Core Plus Bond
.. AXA/Goldman Sachs Strategic Allocation/(1)/
.. AXA/Invesco Strategic Allocation/(1)/
.. AXA/Loomis Sayles Growth
.. EQ/BlackRock Basic Value Equity
.. EQ/Boston Advisors Equity Income
.. EQ/Common Stock Index
.. EQ/Core Bond Index
.. EQ/Emerging Markets Equity PLUS
.. EQ/Equity 500 Index
.. EQ/GAMCO Mergers and Acquisitions
.. EQ/GAMCO Small Company Value
.. EQ/High Yield Bond
.. EQ/Intermediate Government Bond
.. EQ/International Equity Index
.. EQ/Invesco Comstock
.. EQ/Large Cap Growth Index
.. EQ/Large Cap Value Index
.. EQ/MFS International Growth
.. EQ/Mid Cap Index
.. EQ/Money Market
.. EQ/Morgan Stanley Mid Cap Growth
.. EQ/Oppenheimer Global
.. EQ/PIMCO Global Real Return
.. EQ/PIMCO Ultra Short Bond
.. EQ/Real Estate PLUS
.. EQ/Small Company Index
.. EQ/T. Rowe Price Growth Stock
.. Multimanager Aggressive Equity
.. Multimanager Mid Cap Growth
.. Multimanager Mid Cap Value
.. Multimanager Technology
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) -- SERIES II
.. Invesco V.I. Diversified
Dividend
.. Invesco V.I. Equity and Income Fund
.. Invesco V.I. Global Real Estate
.. Invesco V.I. High Yield
.. Invesco V.I. International Growth
.. Invesco V.I. Mid Cap Core Equity
.. Invesco V.I. Small Cap Equity
ALLIANCEBERNSTEIN VARIABLE PRODUCT SERIES FUND, INC. -- CLASS B
.. AB VPS International Growth
</R>
<R>
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. -- CLASS II
.. American Century VP Mid Cap Value
AMERICAN FUNDS INSURANCE SERIES(R)
.. American Funds Insurance Series(R) Bond Fund/SM/
.. American Funds Insurance Series(R) Global Small Capitalization Fund/SM/
.. American Funds Insurance Series(R) New World Fund(R)
BLACKROCK VARIABLE SERIES FUNDS, INC. -- CLASS III
.. BlackRock Global Allocation V.I. Fund
.. BlackRock Large Cap Growth V.I. Fund
EATON VANCE VARIABLE TRUST
.. Eaton Vance VT Floating-Rate Income
FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND -- SERVICE CLASS 2
.. Fidelity(R) VIP Contrafund(R)
.. Fidelity(R) VIP Mid Cap
.. Fidelity(R) VIP Strategic Income
FIRST TRUST VARIABLE INSURANCE TRUST
.. First Trust/Dow Jones Dividend & Income Allocation
.. First Trust Multi Income Allocation
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2
.. Franklin Founding Funds Allocation VIP
.. Franklin Income VIP
.. Franklin Rising Dividends VIP
.. Franklin Strategic Income VIP
.. Templeton Developing Markets VIP
.. Templeton Global Bond VIP
GOLDMAN SACHS VARIABLE INSURANCE TRUST -- SERVICE SHARES
.. Goldman Sachs VIT Mid Cap Value
HARTFORD HLS FUNDS -- CLASS IC SHARES
.. Hartford Capital Appreciation HLS
.. Hartford Growth Opportunities HLS
IVY FUNDS VARIABLE INSURANCE PORTFOLIOS
.. Ivy Funds VIP Asset Strategy
.. Ivy Funds VIP Dividend Opportunities
.. Ivy Funds VIP Energy
.. Ivy Funds VIP Global Natural Resources
.. Ivy Funds VIP High Income
.. Ivy Funds VIP Mid Cap Growth
.. Ivy Funds VIP Science and Technology
.. Ivy Funds VIP Small Cap Growth
LAZARD RETIREMENT SERIES, INC. -- SERVICE SHARES
.. Lazard Retirement Emerging Markets Equity
LEGG MASON -- SHARE CLASS II
.. ClearBridge Variable Aggressive Growth
.. ClearBridge Variable Appreciation
.. ClearBridge Variable Dividend Strategy
.. ClearBridge Variable Mid Cap Core
.. Legg Mason BW Absolute Return Opportunities VIT
.. QS Legg Mason Dynamic Multi-Strategy VIT
</R>
<R>
VARIABLE INVESTMENT OPTIONS
</R>
<R>
LORD ABBETT SERIES FUND, INC. -- CLASS VC
.. Lord Abbett Bond Debenture
MFS(R) VARIABLE INSURANCE TRUSTS -- SERVICE CLASS
.. MFS(R) International Value
.. MFS(R) Investors Trust Series
.. MFS(R) Massachusetts Investors Growth Stock
.. MFS(R) Utilities Series
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST -- S CLASS SHARES
.. Neuberger Berman Absolute Return Multi-Manager
.. Neuberger Berman International Equity
NORTHERN LIGHTS VARIABLE TRUST
.. 7Twelve/TM/ Balanced Portfolio
</R>
<R>
PIMCO VARIABLE INSURANCE TRUST -- ADVISOR CLASS
.. PIMCO CommodityRealReturn(R) Strategy
.. PIMCO Real Return
.. PIMCO Total Return
PROFUNDS VP
.. ProFund VP Biotechnology
PUTNAM VARIABLE TRUST
.. Putnam VT Diversified Income
T. ROWE PRICE EQUITY SERIES, INC.
.. T.Rowe Price Health Sciences Portfolio II
VAN ECK VIP TRUST -- S CLASS
.. Van Eck VIP Global Hard Assets
</R>
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<R>
(1)This variable investment option is also available as a Protected Benefit
account variable investment option should you decide to fund your Guaranteed
benefits. For more information, please see "What are your investment options
under the contract?" under "Contract features and benefits" later in this
Prospectus.
(2)The AXA Ultra Conservative Strategy investment option is part of the asset
transfer program. You may not directly allocate a contribution to or request
a transfer of account value into this investment option.
</R>
Your investment results in a variable investment option will depend on the
investment performance of the related Portfolio. At any time, we have the right
to limit or terminate your contributions, allocations and transfers to any of
the variable investment options. IF YOU HAVE ONE OR MORE GUARANTEED BENEFITS
AND WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS TO THE CONTRACT AND/OR CONTRIBUTIONS
AND/OR TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT
OPTIONS, YOU MAY NO LONGER BE ABLE TO FUND YOUR GUARANTEED BENEFIT(S). THIS
MEANS THAT IF YOU HAVE NOT YET ALLOCATED AMOUNTS TO THE PROTECTED BENEFIT
ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO FUND YOUR
GUARANTEED BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY FUNDED YOUR
GUARANTEED BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTED BENEFIT ACCOUNT
VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTED BENEFIT ACCOUNT VALUE AND THE BENEFIT BASES ASSOCIATED WITH YOUR
GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS. Also, we limit the
number of variable investment options that you may select.
Contents of this Prospectus
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<R>
Definitions of key terms 5
Who is AXA Equitable? 8
How to reach us 9
Retirement Cornerstone(R) Series E at a glance --
key features 11
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FEE TABLE 17
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Examples 19
Condensed financial information 20
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1. CONTRACT FEATURES AND BENEFITS 21
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How you can purchase and contribute to your
contract 21
Owner and annuitant requirements 22
How you can make your contributions 22
What are your investment options under the
contract? 22
Portfolios of the Trusts 25
Allocating your contributions 36
Dollar cost averaging 37
Annuity purchase factors 39
Guaranteed minimum income benefit 40
Death benefit 50
Guaranteed minimum death benefits 50
How withdrawals affect your Guaranteed benefits 57
Dropping or changing your Guaranteed benefits 58
Guaranteed benefit offers 58
Your right to cancel within a certain number of
days 58
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2. DETERMINING YOUR CONTRACT'S VALUE 60
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Your account value and cash value 60
Your contract's value in the variable investment
options 60
Your contract's value in the guaranteed interest
option 60
Your contract's value in the account for special
dollar cost averaging 60
Effect of your account values falling to zero 60
</R>
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"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
Prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
3
CONTENTS OF THIS PROSPECTUS
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3. TRANSFERRING YOUR MONEY AMONG INVESTMENT
OPTIONS 62
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Transferring your account value 62
Disruptive transfer activity 63
Rebalancing among your Investment account
variable investment options and guaranteed
interest option 64
Systematic transfer program 64
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4. ACCESSING YOUR MONEY 67
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Withdrawing your account value 67
How withdrawals are taken from your Total account
value 71
Withdrawals treated as surrenders 72
Surrendering your contract to receive its cash
value 72
When to expect payments 72
Your annuity payout options 72
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5. CHARGES AND EXPENSES 75
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Charges that AXA Equitable deducts 75
Charges that the Trusts deduct 77
Group or sponsored arrangements 78
Other distribution arrangements 78
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6. PAYMENT OF DEATH BENEFIT 79
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Your beneficiary and payment of benefit 79
Non-spousal joint owner contract continuation 80
Spousal continuation 80
Beneficiary continuation option 81
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7. TAX INFORMATION 83
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Overview 83
Contracts that fund a retirement arrangement 83
Transfers among investment options 83
Taxation of nonqualified annuities 83
Individual retirement arrangements (IRAs) 86
Traditional individual retirement annuities
(traditional IRAs) 86
Roth individual retirement annuities (Roth IRAs) 90
Federal and state income tax withholding and
information reporting 93
Special rules for contracts funding qualified
plans 93
Impact of taxes to AXA Equitable 93
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8. MORE INFORMATION 94
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About Separate Account No. 70 94
About the Trusts 94
About the general account 94
Dates and prices at which contract events occur 95
About your voting rights 95
Cybersecurity 96
Misstatement of age 96
Statutory compliance 96
About legal proceedings 96
</R>
<R>
Financial statements 96
Transfers of ownership, collateral assignments,
loans and borrowing 96
About Custodial IRAs 97
How divorce may affect your Guaranteed benefits 97
Distribution of the contracts 97
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APPENDICES
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</R>
I -- Dropping or changing your Guaranteed benefits I-1
II -- Purchase considerations for QP contracts II-1
III -- Guaranteed benefit base examples III-1
IV -- Hypothetical illustrations IV-1
V -- State contract availability and/or variations of
certain features and benefits V-1
VI -- Examples of Automatic payment plans VI-1
VII -- Examples of how withdrawals affect your
Guaranteed benefit bases VII-1
VIII -- Formula for asset transfer program for
Guaranteed minimum income benefit VIII-1
IX -- Rules regarding contributions to your
contract IX-1
X -- Exchange program X-1
XI -- Condensed financial information XI-1
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STATEMENT OF ADDITIONAL INFORMATION
Table of contents
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4
CONTENTS OF THIS PROSPECTUS
Definitions of key terms
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ANNUAL ROLL-UP AMOUNT -- The "Annual Roll-up amount" is the amount credited to
your GMIB benefit base and Roll-up to age 85 benefit base (for contracts with
the "Greater of" Guaranteed minimum death benefit) if you have ever taken a
withdrawal from your Protected Benefit account.
ANNUAL ROLL-UP RATE -- The "Annual Roll-up rate" is the rate used to calculate
the Annual withdrawal amount and the Annual Roll-up amount.
ANNUAL WITHDRAWAL AMOUNT -- The "Annual withdrawal amount" is the amount that
can be withdrawn from your Protected Benefit account value without reducing
your GMIB benefit base. Also, withdrawals up to your Annual withdrawal amount
will not reduce your Roll-up to age 85 benefit base (used in the calculation of
the "Greater of" death benefit) up to age 85. It is equal to the Annual Roll-up
rate in effect on the first day of the contract year, multiplied by the GMIB
benefit base as of the most recent contract date anniversary.
ANNUITANT -- The "annuitant" is the person who is the measuring life for
determining the contract's maturity date. The annuitant is not necessarily the
contract's owner. Where the owner of the contract is non-natural, the annuitant
is the measuring life for determining benefits under the contract.
ASSET TRANSFER PROGRAM -- The asset transfer program (''ATP'') is a feature of
the GMIB. The ATP uses predetermined mathematical formulas to move account
value between the AXA Ultra Conservative Strategy investment option and the
other Protected Benefit account variable investment options.
ATP EXIT OPTION -- Beginning with the contract year that follows the contract
year in which you first fund your Protected Benefit account, if you have the
GMIB, the ''ATP exit option'' allows you to transfer 100% of your Protected
Benefit account value from the AXA Ultra Conservative Strategy investment
option to your other Protected Benefit account variable investment options
without forfeiting the GMIB.
ATP TRANSFER -- A transfer between the AXA Ultra Conservative Strategy
investment option and the other Protected Benefit account variable investment
options.
ATP YEAR -- The contract year in which the Protected Benefit account is first
funded is the first ATP year. The ATP year increases by 1 each subsequent
contract year and may be set back if you make a subsequent contribution or
transfer to the Protected Benefit account.
BUSINESS DAY -- Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). If the Securities
and Exchange Commission determines the existence of emergency conditions on any
day, and consequently, the NYSE does not open, then that day is not a business
day.
CASH VALUE -- At any time before annuity payments begin, your contract's "cash
value" is equal to the Total account value, less the total amount or a pro rata
portion of the annual administrative charge and any Guaranteed benefit charges.
CONTRACT DATE -- The "contract date" is the effective date of the contract.
This usually is the business day we receive the properly completed and signed
application, along with any other required documents, and your initial
contribution. Your contract date will be shown in your contract.
CONTRACT DATE ANNIVERSARY -- The end of each 12-month period is your "contract
date anniversary." For example, if your contract date is May 1st, your contract
date anniversary is April 30th.
CONTRACT YEAR -- The "contract year" is the 12-month period beginning on your
contract date and each 12-month period after that date.
CUSTOMIZED PAYMENT PLAN -- For contracts with GMIB, our "Customized payment
plan" allows you to request amounts up to your Annual withdrawal amount as
scheduled payments to you through one of five customized options.
DEFERRAL ROLL-UP RATE -- The "Deferral Roll-up rate" is used to calculate
amounts credited to your GMIB benefit base and the Roll-up to age 85 benefit
base (used in the calculation of the "Greater of" death benefit) if you have
never taken a withdrawal from your Protected Benefit account.
EXCESS WITHDRAWAL -- For contracts with the GMIB, an "Excess withdrawal" is the
portion of a withdrawal from your Protected Benefit account in excess of your
Annual withdrawal amount and all subsequent withdrawals from your Protected
Benefit account in that same contract year. An Excess withdrawal will always
reduce your benefit bases on a pro rata basis. In the contract year in which
you first fund your Protected Benefit account all withdrawals (except for RMD
payments through our Automatic RMD service) will reduce your benefit bases on a
pro rata basis, because you do not have an Annual withdrawal amount in that
year.
EXCESS RMD WITHDRAWAL -- For contracts with the RMD Wealth Guard death benefit
an "Excess RMD withdrawal" is the portion of a withdrawal from your Protected
Benefit account in excess of your RMD Wealth Guard withdrawal amount for the
calendar year. Any withdrawals taken before the year in which you turn age
70 1/2 are treated as Excess RMD withdrawals. Excess RMD withdrawals will
reduce your RMD Wealth Guard death benefit base on pro rata basis.
<R>
FREE LOOK -- If for any reason you are not satisfied with your contract, you
may exercise your cancellation right under the contract to receive a refund,
but only if you return your contract within the prescribed period. This is your
"Free look" right under the contract.
</R>
GMIB BENEFIT BASE -- The GMIB benefit base is an amount used to determine your
Annual withdrawal amount and your Lifetime GMIB payments. Your GMIB benefit
base is created and increased by allocations and transfers to your Protected
Benefit account. The GMIB benefit base is not an account value or cash value.
The GMIB benefit base is also used to calculate the charge for the GMIB.
GENERAL DOLLAR COST AVERAGING -- Our "General dollar cost averaging program" is
a program that allows for the systematic
5
DEFINITIONS OF KEY TERMS
transfers of amounts in the EQ/Money Market variable investment option to the
Investment account variable investment options.
"GREATER OF" DEATH BENEFIT -- The "Greater of" death benefit is an optional
Guaranteed minimum death benefit in connection with your Protected Benefit
account value only. The death benefit is calculated using the greater of two
benefit bases -- the greater of the Roll-up to age 85 benefit base and the
Highest Anniversary Value benefit base. There is an additional charge for the
"Greater of" death benefit under the contract.
GUARANTEED MINIMUM INCOME BENEFIT ("GMIB") -- The GMIB is a benefit that
guarantees, subject to certain restrictions, annual lifetime payments or
"Lifetime GMIB payments". The GMIB also allows you to take certain withdrawals
prior to the beginning of your Lifetime GMIB payments that do not reduce your
GMIB benefit base (your "Annual withdrawal amount"). There is an additional
charge for the GMIB under the contract.
<R>
GUARANTEED BENEFITS -- You must elect one or more Guaranteed benefits described
in this Prospectus, which are funded through investments in the Protected
Benefit account. The Guaranteed benefits include the Guaranteed minimum income
benefit, Return of Principal death benefit, Highest Anniversary Value death
benefit, RMD Wealth Guard death benefit, and "Greater of" death benefit. There
is an additional charge for the Guaranteed minimum income benefit, Highest
Anniversary Value death benefit, RMD Wealth Guard death benefit, and "Greater
of" death benefit. There is no additional charge for the Return of Principal
death benefit, but it must be elected with the Guaranteed minimum income
benefit, which has an additional charge.
</R>
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT -- The "Highest Anniversary Value death
benefit" is an optional Guaranteed minimum death benefit in connection with
your Protected Benefit account value only. The death benefit is calculated
using the highest value of your Protected Benefit account on your contract date
anniversary. There is an additional charge for the Highest Anniversary Value
death benefit under the contract.
INVESTMENT ACCOUNT VALUE -- The "Investment account value" is the total value
in: (i) the Investment account variable investment options, (ii) the Guaranteed
interest option, and (iii) amounts in the Special DCA program that are
designated for future transfers to the Investment account variable investment
options.
INVESTMENT SIMPLIFIER -- Our "Investment simplifier" allows for systematic
transfers of amounts in the Guaranteed interest option to the Investment
account variable investment options. There are two options under the program --
the Fixed dollar option and the Interest sweep option.
IRA -- An individual retirement arrangement, including both an individual
retirement account and an individual retirement annuity contract, whether
traditional IRA or Roth IRA.
IRS -- Internal Revenue Service
LIFETIME GMIB PAYMENTS -- For contracts with the GMIB, "Lifetime GMIB payments"
are generally annual lifetime payments which are calculated by applying your
GMIB benefit base to guaranteed annuity purchase factors. Lifetime GMIB
payments will begin at the earliest of: (i) the next contract year following
the date your Protected Benefit account value falls to zero (provided the no
lapse guarantee is in effect); (ii) the contract date anniversary following
your 95th birthday; or (iii) your election to exercise the GMIB.
MATURITY DATE -- The contract's "maturity date" is generally the contract date
anniversary that follows the annuitant's 95th birthday.
MAXIMUM PAYMENT PLAN -- For contracts with GMIB, our "Maximum payment plan"
allows you to request your Annual withdrawal amount as scheduled payments.
NQ CONTRACT -- Nonqualified annuity contract.
OWNER -- The "owner" is the person who is the named owner in the contract and,
if an individual, is the measuring life for determining contract benefits.
<R>
PRIOR CONTRACT -- Certain EQUI-VEST(R) and Accumulator contracts previously
issued by AXA Equitable, which may be eligible to exchange, rollover or
transfer to a Retirement Cornerstone(R) Series E contract.
</R>
PROTECTED BENEFIT ACCOUNT VALUE -- The "Protected Benefit account value" is the
total value in: (i) the Protected Benefit account variable investment options,
and (ii) amounts in the Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options.
QP CONTRACT -- An annuity contract that is an investment vehicle for a
qualified plan.
QPDB CONTRACT -- An annuity contract that is an investment vehicle for a
qualified defined benefit plan.
QPDC CONTRACT -- An annuity contract that is an investment vehicle for a
qualified defined contribution plan.
<R>
RMD WEALTH GUARD DEATH BENEFIT -- The RMD Wealth Guard death benefit is an
optional Guaranteed minimum death benefit in connection with the Protected
Benefit account value only. The RMD Wealth Guard death benefit base is created
and increased by allocations and any transfers to the Protected Benefit
account. The RMD Wealth Guard death benefit also allows you to take certain
withdrawals beginning from the calendar year in which you turn age 70 1/2 that
do not reduce your RMD Wealth Guard death benefit base. The RMD Wealth Guard
death benefit base is not an account value or cash value. There is an
additional charge for the RMD Wealth Guard death benefit under the contract.
RETURN OF PRINCIPAL DEATH BENEFIT -- The "Return of Principal" death benefit is
a death benefit in connection with your Protected Benefit account value only.
The death benefit is calculated using the amounts of contributions and
transfers invested in your Protected Benefit account, adjusted for withdrawals.
There is no additional charge for this death benefit.
</R>
ROLL-UP TO AGE 85 BENEFIT BASE -- The "Roll-up to age 85 benefit base" is used
only in connection with the "Greater of" death benefit. It is equal to your
initial contribution and any subsequent contributions to the Protected Benefit
account variable investment options, either directly or through the Special DCA
program; plus any amounts contributed to the Special DCA program that are
designated for future transfers to the Protected Benefit account variable
investment options; plus any amounts transferred to the Protected Benefit
account variable investment options; less a deduction that reflects any "Excess
withdrawal" amounts; plus any "Deferral Roll-up amount" or "Annual Roll-up
amount" minus a deduction that reflects any withdrawals up to the Annual
withdrawal amount.
SAI -- Statement of Additional Information
SEC -- Securities and Exchange Commission
6
DEFINITIONS OF KEY TERMS
SEP IRA -- A traditional IRA used as a funding vehicle for a simplified
employee pension plan established by the IRA owner's employer.
SPECIAL DCA PROGRAM -- We use the term "Special DCA Program" to refer to our
special dollar cost averaging program.
.. SPECIAL DOLLAR COST AVERAGING -- Our "Special dollar cost averaging
program" allows for systematic transfers of amounts in the account for
special dollar cost averaging into the Protected Benefit account variable
investment options, the Investment account variable investment options and
the Guaranteed interest option. The account for special dollar cost
averaging is part of our general account.
SYSTEMATIC TRANSFER PROGRAM -- Our "Systematic transfer program" is a program
that allows you to have amounts in the Investment account variable investment
options and the Guaranteed interest option automatically transferred to your
Protected Benefit account variable investment options.
TOTAL ACCOUNT VALUE -- Your "Total account value" is the total of (i) your
Protected Benefit account value and (ii) your Investment account value.
We sometimes use different words than in the contract or supplemental
materials. This is illustrated below. Although we use different words, they
have the same meaning in this Prospectus as in the contract or supplemental
materials. Your financial professional can provide further explanation about
your contract or supplemental materials.
-----------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
-----------------------------------------------------------------------------
Total account value Annuity Account Value
Unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Protected Benefit account variable Protected Benefit account
investment options and contributions
to the Special DCA program designated
for future transfers to the Protected
Benefit account variable investment
options
Investment account variable Investment account
investment options, the guaranteed
interest option and contributions to
the Special DCA program designated
for future transfers to the
Investment account variable
investment options
-----------------------------------------------------------------------------
7
DEFINITIONS OF KEY TERMS
Who is AXA Equitable?
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We are AXA Equitable Life Insurance Company ("AXA Equitable") a New York stock
life insurance corporation. We have been doing business since 1859. AXA
Equitable Life Insurance Company is an indirect wholly owned subsidiary of AXA
Financial, Inc., which is an indirect wholly owned subsidiary of AXA S.A.
("AXA"), a French holding company for an international group of insurance and
related financial services companies. As the ultimate sole shareholder of AXA
Equitable, AXA exercises significant influence over the operations and capital
structure of AXA Equitable. No company other than AXA Equitable, however, has
any legal responsibility to pay amounts that AXA Equitable owes under the
contracts. AXA Equitable is solely responsible for paying all amounts owed to
you under your contract.
<R>
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$577.7 billion in assets as of December 31, 2014. For more than 150 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, NY 10104.
</R>
8
WHO IS AXA EQUITABLE?
HOW TO REACH US
<R>
Please communicate with us at the mailing addresses listed below for the
purposes described. Certain methods of contacting us, such as by telephone or
electronically, may be unavailable, delayed or discontinued. For example, our
facsimile service may not be available at all times and/or we may be
unavailable due to emergency closing. In addition, the level and type of
service available may be restricted based on criteria established by us. In
order to avoid delays in processing, please send your correspondence as follows:
</R>
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FOR COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED
NOTICES) SENT BY REGULAR MAIL:
Retirement Service Solutions
P.O. Box 1547
Secaucus, NJ 07096-1547
--------------------------------------------------------------------------------
<R>
FOR COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR REQUIRED
NOTICES) SENT BY EXPRESS DELIVERY:
</R>
Retirement Service Solutions
500 Plaza Drive, 6th Floor
Secaucus, NJ 07094
Your correspondence will be picked up at the mailing address noted above and
delivered to our processing office. Your correspondence, however, is not
considered received by us until it is received at our processing office. Where
this Prospectus refers to the day when we receive a contribution, request,
election, notice, transfer or any other transaction request from you, we mean
the day on which that item (or the last thing necessary for us to process that
item) arrives in complete and proper form at our processing office or via the
appropriate telephone or fax number if the item is a type we accept by those
means. There are two main exceptions: if the item arrives (1) on a day that is
not a business day, or (2) after the close of a business day, then, in each
case, we are deemed to have received that item on the next business day. Our
processing office is: 500 Plaza Drive, 6th Floor, Secaucus, New Jersey 07094.
--------------------------------------------------------------------------------
REPORTS WE PROVIDE:
.. written confirmation of financial transactions and certain non-financial
transactions;
.. statement of your contract values at the close of each calendar year, and
any calendar quarter in which there was a financial transaction; and
.. annual statement of your contract values as of the close of the contract
year.
--------------------------------------------------------------------------------
<R>
ONLINE ACCOUNT ACCESS SYSTEMS:
Online Account Access is designed to provide this information through the
Internet. You can obtain information on:
</R>
.. your current Total account value, Protected Benefit account value, and
Investment account value;
.. your current allocation percentages;
.. the number of units you have in the variable investment options;
.. the daily unit values for the variable investment options; and
<R>
.. performance information regarding the variable investment options.
</R>
You can also:
.. change your allocation percentages and/or transfer among the investment
options subject to certain restrictions;
.. elect to receive certain contract statements electronically;
<R>
.. enroll in, modify or cancel a rebalancing program of your Investment
account value;
.. request a quote of your Annual withdrawal amount;
.. change your address;
.. change your Online Account Access password; and
.. access Frequently Asked Questions and Service Forms.
Online Account Access is normally available seven days a week, 24 hours a day.
You may access Online Account Access by visiting our website at www.axa.com. Of
course, for reasons beyond our control, these services may sometimes be
unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by the Internet are genuine. For example, we will require certain
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of Internet instructions, we may be liable for any losses arising out of any
act or omission that constitutes negligence, lack of good faith, or willful
misconduct. In light of our procedures, we will not be liable for following
Internet instructions we reasonably believe to be genuine.
</R>
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing." See
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus for more information.
--------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on the following business days:
.. Monday through Thursday from 8:30 a.m. until 7:00 p.m., Eastern time.
.. Friday from 8:30 a.m. until 5:30 p.m., Eastern time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1)authorization for telephone transfers by your financial professional;
(2)conversion of a traditional IRA to a Roth IRA contract;
(3)tax withholding elections (see withdrawal request form);
(4)election of the Beneficiary continuation option;
(5)IRA contribution recharacterizations;
(6)Section 1035 exchanges;
(7)direct transfers and specified direct rollovers;
9
WHO IS AXA EQUITABLE?
(8)election of the ATP exit option;
(9)exercise of the GMIB or election of an annuity payout option;
(10)requests to reset your GMIB benefit base and your Roll-up to age 85 benefit
base (used to calculate the "Greater of" death benefit) by electing one of
the following: one-time reset option, automatic annual reset program or
automatic customized reset program;
(11)death claims;
(12)requests for enrollment in either our Maximum payment plan or Customized
payment plan under the Guaranteed minimum income benefit;
(13)requests to drop or change your Guaranteed benefits;
(14)requests to collaterally assign your NQ contract;
<R>
(15)requests to transfer, re-allocate, rebalance, make subsequent contributions
and change your future allocations (except that certain transactions may be
permitted through the Online Account Access systems);
</R>
(16)requests to enroll in or cancel the Systematic transfer program;
(17)transfers into and among investment options; and
(18)withdrawal requests.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1)beneficiary changes;
(2)contract surrender;
(3)general dollar cost averaging;
<R>
(4)special dollar cost averaging; and
</R>
(5)Investment simplifier.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1)general dollar cost averaging (including the fixed dollar and interest sweep
options);
<R>
(2)special dollar cost averaging;
</R>
(3)substantially equal withdrawals;
(4)systematic withdrawals; and
(5)the date annuity payments are to begin.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT
LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY:
(1)automatic annual reset program; and
(2)automatic customized reset program.
-------------------
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take. We reserve the right to add, remove or change our administrative forms,
procedures and programs at any time.
SIGNATURES:
The proper person to sign forms, notices and requests is normally the owner. If
there are joint owners, both must sign.
10
WHO IS AXA EQUITABLE?
Retirement Cornerstone(R) Series E at a glance -- key features
--------------------------------------------------------------------------------
<R>
SERIES E CONTRACT This Prospectus describes the Retirement Cornerstone(R)
Series E contract. It provides for the accumulation of
retirement savings and income, offers income and death
benefit protection, and offers various payout options.
Also, it offers a Guaranteed minimum income benefit and
Guaranteed minimum death benefits. For details, please see
the summary of the contract features below, the "Fee table"
and "Charges and expenses" later in this Prospectus.
The Retirement Cornerstone(R) Series E contract is
available only through an exchange program under which a
Prior Contract may be exchanged for this contract. See
below and later in this Prospectus and "How you can
purchase and contribute to your contract" in "Contract
features and benefits" for more information. In addition,
to see a summary comparison of some of the features of
Prior Contracts and the Retirement Cornerstone(R) Series E
contract, see "Exchange Program" in Appendix X later in
this Prospectus.
Please see the contribution rules, which are described in
"Contribution amounts" later in this section and in "Rules
regarding contributions to your contract" in "Appendix IX"
later in this Prospectus.
</R>
You should work with your financial professional to decide
if this contract may be appropriate for you based on a
thorough analysis of your particular insurance needs,
financial objectives, investment goals, time horizons and
risk tolerance.
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PROFESSIONAL INVESTMENT The Retirement Cornerstone(R) Series E variable investment
MANAGEMENT options invest in different Portfolios managed by
professional investment advisers.
----------------------------------------------------------------------------------------
GUARANTEED INTEREST OPTION . Principal and interest guarantees.
. Interest rates set periodically.
----------------------------------------------------------------------------------------
TAX ADVANTAGES . No tax on earnings inside the contract until you make
withdrawals from your contract or receive annuity
payments.
------------------------------------------------------------
. No tax on transfers among investment options inside the
contract.
------------------------------------------------------------
If you are purchasing or contributing to an annuity
contract which is an Individual Retirement Annuity (IRA),
or to fund an employer retirement plan (QP or Qualified
Plan), you should be aware that such annuities do not
provide tax deferral benefits beyond those already provided
by the Internal Revenue Code for these types of
arrangements. Before purchasing or contributing to one of
the contracts, you should consider whether its features and
benefits beyond tax deferral meet your needs and goals. You
may also want to consider the relative features, benefits
and costs of these annuities compared with any other
investment that you may use in connection with your
retirement plan or arrangement. Depending on your personal
situation, the contract's Guaranteed benefits (other than
the RMD Wealth Guard death benefit) may have limited
usefulness because of required minimum distributions
("RMDs").
----------------------------------------------------------------------------------------
GUARANTEED MINIMUM The GMIB guarantees, subject to certain restrictions,
INCOME BENEFIT ("GMIB") annual lifetime payments ("Lifetime GMIB payments"), which
will begin at the earliest of: (i) the next contract year
following the date your Protected Benefit account value
falls to zero, provided the no lapse guarantee is in
effect; (ii) the contract date anniversary following your
95th birthday; and (iii) your election to exercise the
GMIB. Lifetime GMIB payments can be on a single or joint
life basis.
Your ability to exercise the GMIB is subject to a waiting
period which begins on the date you first fund your
Protected Benefit account. The waiting period ranges from
10-15 years. If you reset your GMIB benefit base, a new
waiting period to exercise the GMIB may apply from the date
of the reset. See "Exercise rules" in "Contract features
and benefits" for complete details.
YOUR LIFETIME GMIB PAYMENTS ARE CALCULATED BY APPLYING A
PERCENTAGE TO YOUR GMIB BENEFIT BASE. YOUR GMIB BENEFIT
BASE IS TIED TO AMOUNTS YOU ALLOCATE TO YOUR PROTECTED
BENEFIT ACCOUNT. THE INVESTMENT OPTIONS AVAILABLE TO FUND
YOUR PROTECTED BENEFIT ACCOUNT ARE LIMITED. SEE "GMIB
BENEFIT BASE" IN "CONTRACT FEATURES AND BENEFITS" LATER IN
THIS PROSPECTUS.
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11
RETIREMENT CORNERSTONE(R) SERIES E AT A GLANCE -- KEY FEATURES
<R>
---------------------------------------------------------------------------------------
GUARANTEED MINIMUM AN EXCESS WITHDRAWAL THAT REDUCES YOUR PROTECTED BENEFIT
INCOME BENEFIT ("GMIB") ACCOUNT VALUE TO ZERO WILL CAUSE YOUR GMIB TO TERMINATE.
(CONTINUED) EVEN IF AN EXCESS WITHDRAWAL DOES NOT CAUSE YOUR GMIB TO
TERMINATE, IT CAN GREATLY REDUCE YOUR GMIB BENEFIT BASE AND
THE VALUE OF YOUR BENEFIT. Beginning in the contract year
that follows the contract year in which you fund your
Protected Benefit account, and prior to the beginning of
your Lifetime GMIB payments, you can take your Annual
withdrawal amount without reducing your GMIB benefit base.
If you have the GMIB, your investment allocations to the
Protected Benefit account are subject to our asset transfer
program (''ATP''). The ATP uses predetermined mathematical
formulas to move account value between the AXA Ultra
Conservative Strategy investment option and the other
Protected Benefit account variable investment options.
Under these formulas, your Protected Benefit account value,
excluding amounts in the special DCA account, may be
transferred between the Protected Benefit account variable
investment options which you have selected and the AXA
Ultra Conservative Strategy investment option. For more
information, please see ''Guaranteed minimum income benefit
(''GMIB'')'' in ''Contract features and benefits'' later in
this Prospectus and Appendix VIII to this Prospectus.
See "Guaranteed minimum income benefit" and "Annual
withdrawal amount" under "Guaranteed minimum income
benefit" in "Contract features and benefits" later in this
Prospectus. ANY AMOUNTS YOU WISH TO BE CREDITED TOWARD YOUR
GMIB MUST BE ALLOCATED TO THE PROTECTED BENEFIT ACCOUNT.
The Guaranteed benefits under the contract are supported by
AXA Equitable's general account and are subject to AXA
Equitable's claims paying ability. Contract owners should
look to the financial strength of AXA Equitable for its
claims paying ability.
---------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH . Return of Principal death benefit
BENEFITS ("GMDBS") . Highest Anniversary Value death benefit
. RMD Wealth Guard death benefit
. "Greater of" death benefit
ANY AMOUNTS YOU WISH TO BE CREDITED TOWARD YOUR GMDB MUST
BE ALLOCATED TO THE PROTECTED BENEFIT ACCOUNT.
The Return of Principal death benefit and the "Greater of"
death benefit can only be elected in combination with the
GMIB. The Highest Anniversary Value death benefit can be
elected with or without selecting the GMIB. If you elect
the GMIB and do not elect a guaranteed minimum death
benefit, you will automatically receive the Return of
Principal death benefit. The RMD Wealth Guard death benefit
cannot be elected in combination with the GMIB.
The Return of Principal death benefit, like all of the
guaranteed minimum death benefits, only applies to amounts
you allocate to the Protected Benefit account variable
investment options and not with the contract as a whole.
An Excess RMD withdrawal will reduce your RMD Wealth Guard
death benefit base on a pro rata basis. A pro rata
reduction to your RMD Wealth Guard death benefit base could
be greater than the dollar amount of the withdrawal and
could significantly reduce or eliminate the value of your
RMD Wealth Guard death benefit.
The Guaranteed benefits under the contract are supported by
AXA Equitable's general account and are subject to AXA
Equitable's claims paying ability. Contract owners should
look to the financial strength of AXA Equitable for its
claims paying ability.
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INVESTMENT ACCOUNT DEATH The death benefit in connection with your Investment
BENEFIT account is equal to the return of your account value as of
the day we receive satisfactory proof of the owner's (or
older joint owner's, if applicable) death, any required
instructions for method of payment, and any required
information and forms necessary to effect payment.
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DROPPING OR CHANGING YOUR You have the option to drop or change your Guaranteed
GUARANTEED BENEFITS benefits subject to our rules. IN SOME CASES, YOU MAY HAVE
TO WAIT A SPECIFIED TIME PERIOD IN ORDER TO DROP YOUR
BENEFITS. Please see "Dropping or changing your Guaranteed
benefits" in "Contract features and benefits," as well as
Appendix I, for more information.
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</R>
12
RETIREMENT CORNERSTONE(R) SERIES E AT A GLANCE -- KEY FEATURES
<R>
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CONTRIBUTION AMOUNTS The chart below shows the minimum initial and, in
parenthesis, subsequent contribution amounts under the
contracts. The only source of contributions that are
permitted to fund a contract are from full exchanges,
rollovers or transfers from a Prior Contract. Subsequent
contributions can only be made through full exchanges,
rollovers, or transfers from a Prior Contract. Partial
exchanges, rollovers, and transfers are not permitted as
sources of contributions. As a result you may not be able
to make subsequent contributions to your contract and,
therefore, you would not be able to increase your
Guaranteed benefit base value through subsequent
contributions. Please see "How you can purchase and
contribute to your contract" in "Contract features and
benefits" and "Rules regarding contributions to your
contract" in "Appendix IX" for more information, including
important limitations on contributions.
</R>
<R>
SERIES E
------------------------------------------------
NQ $25,000($500)/(1)/
------------------------------------------------
Traditional or Roth IRA $25,000($50)/(1)/
------------------------------------------------
QP $25,000($500)/(1)/
------------------------------------------------
</R>
<R>
/(1)/Subsequent contributions are only permitted from
exchanges, rollovers or transfers from a Prior
Contract.
. Maximum contribution limitations apply to all
contracts. For more information, please see "How you
can purchase and contribute to your contract" in
"Contract features and benefits" later in this
Prospectus.
------------------------------------------------------------
Upon advance notice to you, we may exercise certain rights
we have under the contract regarding contributions,
including our rights to: (i) change minimum and maximum
contribution requirements and limitations, and (ii)
discontinue acceptance of contributions. Further, we may at
any time exercise our rights to limit or terminate your
contributions and transfers to any of the variable
investment options (including the Protected Benefit account
variable investment options) and to limit the number of
variable investment options which you may select.
----------------------------------------------------------------------------------
ACCOUNT TYPES You may allocate your contributions to the Investment
account, or to the Protected Benefit account to fund one or
more of the Guaranteed benefits. The Investment account
offers more than 112 investment options and is designed to
meet the asset allocation and accumulation needs of a many
types of investors. The Protected Benefit account offers a
limited selection of core investment options that work in
conjunction with the optional Guaranteed benefits. You
should be aware that we select investment options for the
Protected Benefit account that generally offer lower
volatility in order to reduce our downside exposure in
providing the Guaranteed benefits. In rising market
conditions, this strategy may also result in periods of
underperformance.
INVESTMENT ACCOUNT
. Investment account variable investment options
. Guaranteed interest option
. Amounts in the Special DCA program designated for
future transfers to Investment account variable
investment options or the guaranteed interest option
PROTECTED BENEFIT ACCOUNT
. Protected Benefit account variable investment options
. Amounts in the Special DCA program designated for
future transfers to Protected Benefit account variable
investment options
----------------------------------------------------------------------------------
ACCESS TO YOUR MONEY . Partial withdrawals
. Several options for withdrawals on a periodic basis
. Contract surrender
. Various options for required minimum distributions
. Maximum payment plan (only under contracts with GMIB)
. Customized payment plan (only under contracts with GMIB)
Any income you receive may be subject to tax; also may be
subject to an additional 10% income tax penalty unless you
are age 59 1/2 or another exception applies. Also, certain
withdrawals will diminish the value of any Guaranteed
benefits you have funded.
----------------------------------------------------------------------------------
PAYOUT OPTIONS . Fixed annuity payout options
. Other payout options through other contracts
----------------------------------------------------------------------------------
</R>
13
RETIREMENT CORNERSTONE(R) SERIES E AT A GLANCE -- KEY FEATURES
<R>
---------------------------------------------------------------------------------------
ADDITIONAL FEATURES . Dollar cost averaging programs
. Optional rebalancing (for amounts in the Investment
account variable investment options and guaranteed
interest option)
. Systematic transfer program (four options for transfers
from the Investment account to the Protected Benefit
account)
. Transfers among investment options at no charge
(subject to limitations)
. Option to drop or change your Guaranteed benefits after
issue, subject to our rules. Please see "Dropping or
changing your Guaranteed benefits" in "Contract
features and benefits," as well as Appendix I, for more
information.
. Spousal continuation
. Beneficiary continuation option
. Annual resets of your GMIB benefit base and Roll-up to
age 85 benefit base (used to calculate your "Greater
of" death benefit)
---------------------------------------------------------------------------------------
FEES AND CHARGES Please see "Fee table" later in this section for complete
details.
---------------------------------------------------------------------------------------
OWNER AND ANNUITANT ISSUE Please see "Rules regarding contributions to your contract"
AGES in "Appendix IX" for owner and annuitant issue ages
applicable to your contract.
---------------------------------------------------------------------------------------
CONTRACT TERMINATION YOUR CONTRACT MAY TERMINATE WITHOUT VALUE IF YOUR TOTAL
ACCOUNT VALUE FALLS TO ZERO AS A RESULT OF EXCESS
WITHDRAWALS, OR THE PAYMENT OF ANY APPLICABLE CHARGES WHEN
DUE, OR A COMBINATION OF THE TWO. Please see "Effect of
your account values falling to zero" in "Determining your
contract's value" later in this Prospectus for more
information.
---------------------------------------------------------------------------------------
YOUR RIGHT TO CANCEL To exercise your cancellation right under the contract, you
must notify us with a signed letter of instruction electing
this right, to our processing office within 10 days after
you receive your contract. If state law requires, this
"free look" period may be longer. See "Your right to cancel
within a certain number of days" in "Contract features and
benefits" later in this Prospectus for more information.
---------------------------------------------------------------------------------------
GUARANTEED BENEFIT OFFERS From time to time, we may offer you some form of payment or
incentive in return for terminating or modifying certain
guaranteed benefits. See "Guaranteed benefit offers" in
"Contract features and benefits" for more information.
---------------------------------------------------------------------------------------
</R>
THE TABLE ABOVE SUMMARIZES ONLY CERTAIN CURRENT KEY FEATURES AND BENEFITS OF
THE CONTRACT. THE TABLE ALSO SUMMARIZES CERTAIN CURRENT LIMITATIONS,
RESTRICTIONS AND EXCEPTIONS TO THOSE FEATURES AND BENEFITS THAT WE HAVE THE
RIGHT TO IMPOSE UNDER THE CONTRACT AND THAT ARE SUBJECT TO CHANGE IN THE
FUTURE. IN SOME CASES, OTHER LIMITATIONS, RESTRICTIONS AND EXCEPTIONS MAY
APPLY. THE CONTRACT MAY NOT CURRENTLY BE AVAILABLE IN ALL STATES. CERTAIN
FEATURES AND BENEFITS DESCRIBED IN THIS PROSPECTUS MAY VARY IN YOUR STATE; ALL
FEATURES AND BENEFITS MAY NOT BE AVAILABLE IN ALL CONTRACTS, IN ALL STATES OR
FROM ALL SELLING BROKER-DEALERS. YOU MAY CONTACT US TO PURCHASE ANY VERSION OF
THE CONTRACT IF A VERSION IS NOT OFFERED BY THE SELLING BROKER-DEALER. FOR A
STATE-BY-STATE DESCRIPTION OF ALL MATERIAL VARIATIONS OF THIS CONTRACT, SEE
APPENDIX V LATER IN THIS PROSPECTUS.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. This Prospectus is a disclosure document
and describes all of the contract's material features, benefits, rights and
obligations, as well as other information. The Prospectus should be read
carefully before investing. Please feel free to speak with your financial
professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, and have fees and charges, that are
different from those in the contracts offered by this Prospectus. Not every
contract we issue, including some described in this Prospectus, is offered
through every selling broker-dealer. Some selling broker-dealers may not offer
and/or limit the offering of certain features or options, as well as limit the
availability of the contracts, based on issue age or other criteria established
by the selling broker-dealer. Upon request, your financial professional can
show you information regarding other AXA Equitable annuity contracts that he or
she distributes. You can also contact us to find out more about the
availability of any of the AXA Equitable annuity contracts.
You should work with your financial professional to decide whether one or more
optional benefits are appropriate for you based on a thorough analysis of your
particular insurance needs, financial objectives, investment goals, time
horizons and risk tolerance.
EXCHANGE PROGRAM
<R>
The Retirement Cornerstone(R) Series E contract is offered only through an
exchange program under which a Prior Contract may be exchanged for a Retirement
Cornerstone(R) Series E contract. This is called an "exchange" under securities
law. For purposes of this Prospectus, the word "exchange" includes a rollover
or transfer, as applicable, for federal income tax purposes. Under this
program, among other criteria, which are described below, the
</R>
14
RETIREMENT CORNERSTONE(R) SERIES E AT A GLANCE -- KEY FEATURES
surrender of a Prior Contract may not be subject to withdrawal charges to be
eligible for the Retirement Cornerstone(R) Series E contract. In addition, the
account value of the Retirement Cornerstone(R) Series E contract would not be
subject to any withdrawal charges, but would be subject to all other charges
and fees under the Retirement Cornerstone(R) Series E contract, which are
described in this Prospectus.
<R>
You should carefully consider whether an exchange is appropriate for you by
considering the benefits and guarantees provided by your Prior Contract to the
benefits and guarantees provided by the Retirement Cornerstone(R) Series E
contract. Please note that if you elect to exchange into the Retirement
Cornerstone(R) Series E contract you will lose all existing benefits under your
Prior Contract. You should also review the fees and charges of your Prior
Contract and the fees and charges of the Retirement Cornerstone(R) Series E
contract, which may be higher than the fees and charges under the Prior
Contract. Any such exchange program will be made available on terms and
conditions determined by us and will comply with applicable law.
You should read the Prospectus and other information related to your Prior
Contract prior to requesting an exchange, rollover or transfer to the
Retirement Cornerstone(R) Series E contract and you should consider the
differences between your Prior Contract and Retirement Cornerstone(R) Series E
contract. There may be differences that are important for you to consider prior
to purchasing the Retirement Cornerstone(R) Series E contract. To see a summary
comparison of some of the features of Prior Contracts and the Retirement
Cornerstone(R) Series E contract, see Appendix X -- "Exchange program" later in
this Prospectus.
In considering whether the exchange is appropriate for you, you should consult
with your financial professional. Your financial professional will be paid a
commission if you exchange, transfer or rollover your Prior Contract to the
Retirement Cornerstone(R) Series E contract, which may create the potential for
a conflict of interest for your financial professional. For more information,
please contact your financial professional.
You may obtain a copy of your Prior Contract prospectus by contacting your
financial professional or by writing or calling us as follows:
</R>
<R>
Accumulator EQUI-VEST(R)
PO Box 1547 PO Box 4956
Secaucus, NJ 07096-1547 Syracuse, NY 13221-4956
1 (800) 789-7771 1 (800) 628 6673
</R>
LISTED BELOW IS A DESCRIPTION OF CONTRACT OWNERS OF PRIOR CONTRACTS THAT MAY OR
MAY NOT BE ELIGIBLE TO PURCHASE THE RETIREMENT CORNERSTONE(R) SERIES E CONTRACT:
<R>
.. Contract owners of an EQUI-VEST(R) contract are eligible, except for
contract owners that are eligible to purchase an EQUI-VEST(R) at
Retirement/SM/ contract or contract owners that have elected a Guaranteed
benefit. In addition, contract owners of an EQUI-VEST(R) Tax Sheltered
Annuity contract are eligible (i) if they are separated from service and
are no longer making on-going contributions to the Prior Contract or (ii)
if the Prior Contract has an outstanding loan balance the contract owner
can either (a) pay off the outstanding loan balance or (b) have the loan
with accrued interest deducted from the total value of Prior Contract and
roll over the remaining balance to Retirement Cornerstone(R) Series E
contract.
.. Contract owners of an Accumulator contract who elected a Guaranteed benefit
are not eligible to exchange into the Retirement Cornerstone(R) Series E
contract.
.. Contract owners of an Accumulator contract who either: (i) accepted a
Guaranteed benefit, buyout or (ii) dropped a Guaranteed benefit from the
contract, are not eligible to purchase the Retirement Cornerstone(R) Series
E contract.
.. Contract owners who have remaining or outstanding withdrawal charges on the
Prior Contract, or who do not satisfy a condition for waiving the
withdrawal charge under the Prior Contract are not eligible.
.. There have been no rollovers or transfers made within the past two years
into a Prior Contract from the date of the request to purchase a Retirement
Cornerstone(R) Series E contract, except if the contract owner has been
separated from service at time of the purchase.
</R>
LISTED BELOW ARE ADDITIONAL TERMS AND CONDITIONS TO PURCHASE THE RETIREMENT
CORNERSTONE(R) SERIES E CONTRACT:
<R>
1. The minimum initial contribution is $25,000 and you must elect one or more
of the Guaranteed benefits provided under the Retirement Cornerstone(R)
Series E contract. The source of the contribution must be from a Prior
Contract as described above.
2. Only full exchanges, rollovers and transfers for the total account value of
a Prior Contract will be accepted. Partial exchanges, rollovers or transfers
from Prior Contracts are not permitted.
3. Exchanges, rollovers or transfers from contracts other than from Prior
Contracts are not permitted.
4. Subsequent contributions in a minimum amount of $50 or more for Traditional
IRA or Roth IRA contracts and $500 or more for NQ and QP contracts are
permitted. The source of the contribution must be from a Prior Contract, as
described above.
</R>
15
RETIREMENT CORNERSTONE(R) SERIES E AT A GLANCE -- KEY FEATURES
<R>
5. If you are the owner of only one Prior Contract, you would only be eligible
to make an initial contribution. Therefore, you would not be able to
increase your Guaranteed benefit base value through subsequent contributions
to your Retirement Cornerstone(R) Series E contract.
6. You must elect one or more of the Guaranteed benefits provided under the
Retirement Cornerstone(R) Series E contract.
7. There is generally no minimum amount to fund a Guaranteed benefit through
the Protected Benefit account. It can generally be funded at any time
subject to certain age limitations. For more information, see "Transferring
your account value" under "Transferring your money among investment
options," later in this Prospectus.
8. There is an additional charge for each Guaranteed benefit you elect, except
for the Return of Principal death benefit. However, if you elect the Return
of Principal death benefit, it must be elected in combination with the
Guaranteed Minimum Income Benefit, which has an additional charge.
9. If you fund your Guaranteed benefit you have to wait up to four years before
you can drop the Guaranteed benefit.
10.If you exchange your Prior Contract before the maturity of an outstanding
Fixed Maturity Option, the market value adjustment may apply and therefore
the value you receive could be less than you would have received if you had
waited for the maturity of the Fixed Maturity Option before exchanging out
of the Prior Contract.
</R>
16
RETIREMENT CORNERSTONE(R) SERIES E AT A GLANCE -- KEY FEATURES
Fee table
--------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay if you make
certain transfers or request special services. Charges designed to approximate
certain taxes that may be imposed on us, such as premium taxes in your state,
may also apply./(1)/
-----------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST
CERTAIN TRANSACTIONS
-----------------------------------------------------------------------------------
Charge for each additional transfer in excess of 12 Maximum Charge: $35
transfers per contract year:/(2)/ Current Charge: $0
<R>
SPECIAL SERVICE CHARGES:/(3)/
.. Express mail charge Current and Maximum Charge: $35
.. Wire transfer charge Current and Maximum Charge: $90
.. Duplicate contract charge Current and Maximum Charge: $35
.. Check preparation charge/(5)/ Maximum Charge: $85
.. Charge for third party transfer or exchange/(4)/ Current Charge: $0
Maximum Charge: $125
Current Charge: $65/(6)/
--------------------------------------------------------------------------------------------------------
</R>
The following tables describe the fees and expenses that
you will pay periodically during the time that you own the
contract, not including the underlying trust portfolio fees
and expenses.
<R>
-------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
-------------------------------------------------------------------------------------------------
Maximum annual administrative charge/(5)/
If your account value on a contract date anniversary is $30
less than $50,000/(7)/
If your account value on a contract date anniversary is $0
$50,000 or more
-------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN
ANNUAL PERCENTAGE OF DAILY NET ASSETS
-------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT ANNUAL EXPENSES:/(8)/ SERIES E
-------- - -
Operations 0.80%
Administration 0.30%
Distribution 0.20%
----- - -
Total separate account annual expenses ("Contract fee") 1.30%
-------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE EACH YEAR IF YOU FUND ANY OF THE
FOLLOWING OPTIONAL BENEFITS
-------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT CHARGE (Calculated as a
percentage of the applicable benefit base/(9)/. Deducted
annually/(10) /on each contract date anniversary for which
the benefit is in effect.)
Return of Principal death benefit No Additional Charge
Highest Anniversary Value death benefit 0.35% (current and maximum)
-------------------------------------------------------------------------------------------------
RMD Wealth Guard death benefit
Maximum Charge: 1.80%
Current Charge/(11)/: 0.90%
-------------------------------------------------------------------------------------------------
"Greater of" death benefit
Maximum Charge: 2.30%
Current Charge/(12)/: 1.15%
-------------------------------------------------------------------------------------------------
</R>
17
FEE TABLE
<R>
GUARANTEED MINIMUM INCOME BENEFIT CHARGE (Calculated as a
percentage of the GMIB benefit base/(9)/. Deducted
annually/(10)/ on each contract date anniversary for which
the benefit is in effect.)
Maximum Charge: 2.30%
Current Charge/(12)/: 1.15%
-----------------------------------------------------------------------------
</R>
You also bear your proportionate share of all fees and expenses paid by a
Portfolio that corresponds to any variable investment option you are using.
This table shows the lowest and highest total operating expenses charged by any
of the Portfolios that you will pay periodically during the time that you own
the contract. These fees and expenses are reflected in the Portfolio's net
asset value each day. Therefore, they reduce the investment return of the
Portfolio and the related variable investment option. Actual fees and expenses
are likely to fluctuate from year to year. More detail concerning each
Portfolio's fees and expenses is contained in the prospectus for the Portfolio.
<R>
-----------------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
-----------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2014 (expenses that are deducted from Lowest Highest
Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)/(*)/ 0.62% 8.84%
-----------------------------------------------------------------------------------------------------------------
</R>
Notes:
(*)"Total Annual Portfolio Operating Expenses" are based, in part, on estimated
amounts for options added during the fiscal year 2014, if applicable, and
for the underlying Portfolios. Pursuant to a contract, AXA Equitable Funds
Management Group, LLC has agreed to make payments or waive its management,
administrative and other fees to limit the expenses of certain affiliated
Portfolios through April 30, 2016 ("Expense Limitation Arrangement") (unless
the Trust's Board of Trustees consents to an earlier revision or termination
of this agreement). The Expense Limitation Arrangement may be terminated by
AXA Equitable Funds Management Group, LLC at any time after April 30, 2016.
The range of expenses in the table above does not include the effect of any
Expense Limitation Arrangement. The range of expense in the table below
includes the effect of the Expense Limitation Arrangements.
<R>
----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
----------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2014 after the effect of Expense Limitation Arrangements/(13)/ Lowest Highest
0.62% 3.26%
----------------------------------------------------------------------------------------------------------------------------
</R>
For complete information regarding the Expense Limitation Arrangements see
the prospectuses for the underlying Portfolios.
(1)The current tax charge that might be imposed varies by jurisdiction and
currently ranges from 0% to 3.5%.
(2)Currently, we do not charge for transfers among investment options under the
contract. However, we reserve the right to charge for transfers in excess of
12 transfers per contract year. We will charge no more than $35 for each
transfer at the time each transfer is processed. See "Transfer charge" under
"Charges that AXA Equitable deducts" in "Charges and expenses" later in this
Prospectus.
(3)These charges may increase over time to cover our administrative costs. We
may discontinue these services at any time.
(4)The sum of these charges will never exceed 2% of the amount disbursed or
transferred.
(5)If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro rata
portion of the administrative charge for that year.
<R>
(6)This charge is currently waived. This waiver may be discontinued at any
time, with or without notice.
(7)During the first two contract years this charge, if applicable, is equal to
the lesser of $30 or 2% of your Total account value. Thereafter, the charge,
if applicable, is $30 for each contract year.
(8)In connection with the separate account annual expenses, these charges
compensate us for certain risks we assume and expenses we incur under the
contract. We expect to make a profit from these charges.
(9)The benefit base is not an account value or cash value. Your initial benefit
base is equal to your initial contribution or transfer to the Protected
Benefit account variable investment options and amounts in the Special DCA
program designated for transfers to the Protected Benefit account variable
investment options. Subsequent adjustments to the applicable benefit base
and the investment performance of the Protected Benefit account may result
in a "benefit base" that is significantly different from your total
contributions or future transfers to, or account value in, the Protected
Benefit account. See "Guaranteed minimum death benefits" and "Guaranteed
minimum income benefit" in "Contract features and benefits" later in this
Prospectus.
(10)If the contract is surrendered or annuitized, or a death benefit is paid,
or the benefit is dropped (if applicable), on any date other than the
contract date anniversary, we will deduct a pro rata portion of the charge
for that year.
(11)We reserve the right to increase or decrease this charge any time after
your second contract date anniversary. See "RMD Wealth Guard death benefit
charge" in "Charges and expenses" later in this Prospectus.
(12)We reserve the right to increase or decrease this charge any time after
your second contract date anniversary. See "Guaranteed minimum income
benefit charge" and "Greater of death benefit" in "Charges and expenses"
later in this Prospectus.
(13)"Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2014, if
applicable, and for the underlying portfolios. In addition, the "Lowest"
represents the total annual operating expenses of the EQ/Equity 500 Index
Portfolio. The "Highest" represents the total annual operating expenses of
the Neuberger Berman Absolute Return Multi-Manager Portfolio. For more
information, see the prospectuses for the Portfolios.
</R>
18
FEE TABLE
EXAMPLES
These examples are intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses). These examples do not reflect charges
for any special service you may request.
<R>
The first example below shows the expenses that a hypothetical contract owner
(who has elected the "Greater of" death benefit with the Guaranteed minimum
income benefit) would pay in the situations illustrated. This example uses an
estimated average annual administrative charge based on anticipated sales and
contract sizes, which results in an estimated annual administrative charge
calculated as a percentage of contract value of 0.011%. As discussed
immediately below, the example further assumes the highest minimum Deferral
Roll-up rate of 8% is applied to the GMIB benefit base and Annual Roll-up to
age 85 benefit base annually. The example assumes the maximum charges that
would apply based on a 5% return for the "Greater of" death benefit and
Guaranteed minimum income benefit, both of which are calculated as a percentage
of each Guaranteed benefit's benefit base. The example also assumes there has
not been a withdrawal from the Protected Benefit account.
In this example, we assume the highest minimum Deferral Roll-up rate of 8% that
can be applied to the GMIB and Roll-up to age 85 benefit bases. Since the
charges for the GMIB and "Greater of" death benefit are calculated as a
percentage of their applicable benefit bases, the examples show the maximum
charges under these assumptions. We reserve the right to declare a Deferral
Roll-up rate in excess of 8%. A higher Deferral Roll-up rate could result in a
higher GMIB benefit base and "Greater of" death benefit base. However, since we
cannot predict how high your Deferral Roll-up rate might be, we have based the
example on a Deferral Roll-up rate of 8%, which is the highest rate available
under the Deferral Ten-Year Treasuries Formula Rate. See "Deferral Roll-up
rate" under "Guaranteed minimum income benefit" in "Contract features and
benefits."
</R>
Amounts allocated to the Special DCA program are not covered by these example.
The annual administrative charge does apply to amounts allocated to the Special
DCA program.
<R>
The example assumes that you invest $10,000 in the Protected Benefit account
variable investment options for the time periods indicated, and that your
investment has a 5% return each year. Other than the annual administrative
charge and the charges for the Guaranteed benefits (which are described
immediately above), the example also assumes separate account annual expenses
and that amounts are allocated to the Protected Benefit account variable
investment options that invest in Portfolios with (a) the maximum fees and
expenses, and (b) the minimum fees and expenses (before expense limitations).
The example should not be considered a representation of past or future
expenses for each option. Actual expenses may be greater or less than those
shown. Similarly, the annual rate of return assumed in each example is not an
estimate or guarantee of future investment performance. Although your actual
costs may be higher or lower, based on these assumptions your costs would be:
</R>
<R>
SERIES E
-------------------------------------------------------------------------------------
WHETHER OR NOT YOU SURRENDER YOUR CONTRACT AT THE
END OF THE APPLICABLE TIME PERIOD
-------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------------------------------------------------------------------------------------
(a)assuming maximum fees and
expenses of any of the
Protected Benefit account
investment options $519 $1,907 $3,717 $9,017
-------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Protected Benefit account
investment options $495 $1,836 $3,606 $8,836
-------------------------------------------------------------------------------------
</R>
<R>
The next example shows the expenses that a hypothetical contract owner who has
opted out of all optional benefits that have fees associated with them would
pay in the situations illustrated. This example uses an estimated average
annual administrative charge based on anticipated sales and contract sizes,
which results in an estimated annual administrative charge calculated as a
percentage of contract value of 0.011%.
</R>
The example assumes amounts are allocated to the most expensive and least
expensive Portfolio. Amounts allocated to the guaranteed interest option and
the Special DCA program are not covered by this example. The annual
administrative charge does apply to amounts allocated to the guaranteed
interest option and the Special DCA program.
<R>
The example assumes that you invest $10,000 in the Investment account variable
investment options for the time periods indicated, and that your investment has
a 5% return each year. Other than the annual administrative charge (which is
described immediately above), the example also assumes maximum contract charges
and total annual expenses of the Portfolios (before expense limitations)
invested in by the Investment account variable investment options set forth in
the previous chart. The example should not be considered a representation of
past or future expenses for each option. Actual expenses may be greater or less
than those shown. Similarly, the annual rate of return assumed in the example
is not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions your costs
would be:
</R>
<R>
SERIES E
-------------------------------------------------------------------------------------
WHETHER OR NOT YOU SURRENDER YOUR CONTRACT AT THE
END OF THE APPLICABLE TIME PERIOD
-------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
-------------------------------------------------------------------------------------
(a)assuming maximum fees and
expenses of any of the
Portfolios $1,066 $3,020 $4,759 $8,316
-------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Portfolios $ 203 $ 626 $1,076 $2,321
-------------------------------------------------------------------------------------
</R>
19
FEE TABLE
For information on how your contract works under certain hypothetical
circumstances, please see Appendix IV at the end of this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix XI at the end of this Prospectus and Appendix I at the end
of the Statement of Additional Information for the unit values and the number
of units outstanding as of the end of the periods shown for each of the
variable investment options available as of December 31, 2014.
20
FEE TABLE
1. Contract features and benefits
--------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
<R>
You may purchase a contract by making payments to us that we call
"contributions." Only full exchanges, rollovers or transfers from a Prior
Contract are permitted as contributions. No other source of contributions are
permitted. Partial exchanges, rollovers or transfers are not permitted as
contributions. In addition, subsequent contributions can only be made through
full exchanges, rollovers, or transfers from a Prior Contract. As a result you
may not be able to make subsequent contributions to your contract. See
Retirement Cornerstone(R) Series E at a glance -- key features" earlier in this
Prospectus for more information. The tables in Appendix IX later in this
Prospectus summarize our current rules regarding contributions to your
contract, which are subject to change. Both the owner and annuitant named in
the contract must meet the issue age requirements shown in the table and
contributions are based on the age of the older of the original owner and
annuitant. We can refuse to accept an application from you or any contribution
from you at any time, including after you purchase the contract.
</R>
--------------------------------------------------------------------------------
WE RESERVE THE RIGHT TO CHANGE OUR CURRENT LIMITATIONS ON YOUR CONTRIBUTIONS
AND TO DISCONTINUE ACCEPTANCE OF CONTRIBUTIONS.
--------------------------------------------------------------------------------
We currently do not accept any contribution to your contract if: (i) the sum of
all contributions under all Accumulator(R) Series and Retirement Cornerstone(R)
Series contracts with the same owner or annuitant would then total more than
$1,500,000, or (ii) the aggregate contributions under all AXA Equitable annuity
accumulation contracts with the same owner or annuitant would then total more
than $2,500,000. We may waive these and other contribution limitations based on
certain criteria that we determine, including Guaranteed benefits, issue age,
aggregate contributions, variable investment option allocations and selling
broker-dealer compensation. These and other contribution limitations may not be
applicable in your state. For a state-by-state description of all material
variations of the contracts, see Appendix V later in this Prospectus.
You may not contribute or transfer more than $1,500,000 to your Protected
Benefit account variable investment options and the Special DCA program with
amounts designated for the Protected Benefit account variable investment
options.
Once a withdrawal is taken from your Protected Benefit account, you cannot make
additional contributions to your Protected Benefit account, either directly or
through a new Special DCA program. You may, however, be able to continue to
make transfers from your Investment account to the Protected Benefit account
variable investment options until such time you make a subsequent contribution
to your Investment account. Scheduled transfers from an existing Special DCA
program will continue through to the program's conclusion.
We may accept less than the minimum initial contribution under a contract if an
aggregate amount of Retirement Cornerstone(R) Series contracts, respectively,
purchased at the same time by an individual (including spouse) meet the minimum.
--------------------------------------------------------------------------------
THE "OWNER" IS THE PERSON WHO IS THE NAMED OWNER IN THE CONTRACT AND, IF AN
INDIVIDUAL, IS THE MEASURING LIFE FOR DETERMINING CONTRACT BENEFITS. THE
"ANNUITANT" IS THE PERSON WHO IS THE MEASURING LIFE FOR DETERMINING THE
CONTRACT'S MATURITY DATE. THE ANNUITANT IS NOT NECESSARILY THE CONTRACT OWNER.
WHERE THE OWNER OF A CONTRACT IS NON-NATURAL, THE ANNUITANT IS THE MEASURING
LIFE FOR DETERMINING CONTRACT BENEFITS.
--------------------------------------------------------------------------------
Upon advance notice to you, we may exercise certain rights we have under the
contract regarding contributions, including our rights to:
.. Change our contribution requirements and limitations and our transfer
rules, including to:
-- increase or decrease our minimum contribution requirements and increase
or decrease our maximum contribution limitations;
-- discontinue the acceptance of subsequent contributions to the contract;
-- discontinue the acceptance of subsequent contributions and/or transfers
into one or more of the variable investment options and/or guaranteed
interest option; and
-- discontinue the acceptance of subsequent contributions and/or transfers
into the Protected Benefit account variable investment options.
.. Default certain contributions and transfers designated for a Protected
Benefit account variable investment option(s) to the corresponding
Investment account variable investment option(s), which invests in the same
underlying Portfolio(s). See "Rebalancing among your Protected Benefit
account variable investment options" under "Allocating your contributions"
later in this section.
.. Further limit the number of variable investment options you may invest in
at any one time.
.. Limit or terminate new contributions or transfers to an investment option.
WE RESERVE THE RIGHT IN OUR SOLE DISCRETION TO DISCONTINUE THE ACCEPTANCE OF,
AND/OR PLACE LIMITATIONS ON CONTRIBUTIONS AND TRANSFERS INTO THE CONTRACT
AND/OR CERTAIN INVESTMENT OPTIONS. IF YOU HAVE ONE OR MORE GUARANTEED BENEFITS
AND WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS TO THE CONTRACT AND/OR CONTRIBUTIONS
AND/OR TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT
OPTIONS, YOU MAY NO LONGER BE ABLE TO FUND YOUR GUARANTEED BENEFIT(S). THIS
MEANS THAT IF YOU HAVE NOT YET ALLOCATED AMOUNTS TO THE PROTECTED BENEFIT
ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO FUND YOUR
GUARANTEED BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY FUNDED YOUR
GUARANTEED BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTED BENEFIT ACCOUNT
VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTED BENEFIT ACCOUNT VALUE AND THE BENEFIT BASES ASSOCIATED WITH YOUR
GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS.
21
CONTRACT FEATURES AND BENEFITS
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. Only natural
persons can be joint owners. This means that an entity such as a corporation
cannot be a joint owner. We also reserve the right to prohibit availability of
this contract to other non-natural owners.
For NQ contracts (with a single owner, joint owners, or a non-natural owner) we
permit the naming of joint annuitants only when the contract is purchased
through an exchange that is intended not to be taxable under Section 1035 of
the Internal Revenue Code and only where the joint annuitants are spouses.
<R>
Owners which are not individuals are required to document their status to avoid
30% FATCA withholding from U.S.-source income.
</R>
Under all IRA contracts, the owner and annuitant must be the same person. In
some cases, an IRA contract may be held in a custodial individual retirement
account for the benefit of the individual annuitant.
<R>
For the Spousal continuation feature to apply, the spouses must either be joint
owners, or, for Single owner contracts, the surviving spouse must be the sole
primary beneficiary. The determination of spousal status is made under
applicable state law. However, in the event of a conflict between federal and
state law, we follow federal rules. Certain same-sex civil union and domestic
partners may not be eligible for tax benefits under federal law and in some
circumstances will be required to take post-death distributions that dilute or
eliminate the value of the contractual benefit.
</R>
In general, we will not permit a contract to be owned by a minor unless it is
pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors
Act in your state.
Under QP contracts, the owner must be the qualified plan trust and the
annuitant must be a plan participant/employee. The term "QP contracts" used in
this Prospectus refers to QPDB and/or QPDC contracts. See Appendix II at the
end of this Prospectus for more information regarding QP contracts.
Certain benefits under your contract, as described in this Prospectus, are
based on the age of the owner. If the owner of the contract is not a natural
person, these benefits will be based on the age of the annuitant. Under QP
contracts, all benefits are based on the age of the annuitant. In this
Prospectus, when we use the terms OWNER and JOINT OWNER, we intend these to be
references to ANNUITANT and JOINT ANNUITANT, respectively, if the contract has
a non-natural owner. Unless otherwise stated, if the contract is jointly owned
or is issued to a non-natural owner, benefits are based on the age of the older
joint owner or older joint annuitant, as applicable.
PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST
If you are purchasing the contract to fund a charitable remainder trust and
allocate any account value to the Protected Benefit account, you should
strongly consider "split-funding": that is, the trust holds investments in
addition to this Retirement Cornerstone(R) Series E contract. Charitable
remainder trusts are required to make specific distributions. The charitable
remainder trust annual distribution requirement may be equal to a percentage of
the donated amount or a percentage of the current value of the donated amount.
The required distribution may have an adverse impact on the value of your
Guaranteed benefits.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
<R>
The only source of contributions that are permitted to fund a Retirement
Cornerstone(R) Series E contract are from full exchanges, rollovers or
transfers from a Prior Contract. See "Exchange Program" earlier in this
Prospectus in "Retirement Cornerstone(R) Series E at a glance -- key features".
You will remain invested in your Prior Contract while AXA Advisors LLC ("AXA
Advisors") ensures your application is complete and that suitability standards
are met. Upon successful completion of this review, AXA Advisors will transmit
your application to us, so that we can consider your application for processing.
--------------------------------------------------------------------------------
THE "CONTRACT DATE" IS THE EFFECTIVE DATE OF A CONTRACT. YOUR CONTRACT DATE
WILL BE SHOWN IN YOUR CONTRACT. THE 12 MONTH PERIOD BEGINNING ON YOUR CONTRACT
DATE AND EACH 12 MONTH PERIOD AFTER THAT DATE IS A "CONTRACT YEAR." THE END OF
EACH 12 MONTH PERIOD IS YOUR "CONTRACT DATE ANNIVERSARY." FOR EXAMPLE, IF YOUR
CONTRACT DATE IS MAY 1, YOUR CONTRACT DATE ANNIVERSARY IS APRIL 30.
--------------------------------------------------------------------------------
If your application is in good order when we receive it for application
processing purposes, your Prior Contract will be exchanged for a Retirement
Cornerstone(R) Series E contract at the price calculated at the close of that
business day (or at the price calculated at the close of the next business day
if we receive your application on a non-business day). If any information we
require to issue your contract is missing or unclear, you will remain invested
in your Prior Contract while we try to obtain this information. If we are
unable to obtain all of the information we require within five business days
after we receive an incomplete application or form, we will inform the
financial professional submitting the application on your behalf. We will then
cancel your exchange request unless you or your financial professional acting
on your behalf, specifically direct us to keep your exchange request until we
receive the required information. If we have not received the information we
require within 30 days, we will cancel your exchange request. Your Prior
Contract will be exchanged for a Retirement Cornerstone(R) Series E contract as
of the price calculated at the close of the business day we receive the missing
information. Although we require an application from you, we will import data
that we have in our records regarding the Prior Contract in issuing this
contract. If there is a conflict between the data that we have in our records
regarding the Prior Contract and the information on your application, we will
not consider the application in good order as discussed above. For more
information on a "Prior Contract", see "Exchange Program" in "Retirement
Cornerstone(R) Series E at a glance--key features" earlier in this Prospectus.
</R>
--------------------------------------------------------------------------------
OUR "BUSINESS DAY" IS GENERALLY ANY DAY THE NEW YORK STOCK EXCHANGE IS OPEN FOR
REGULAR TRADING AND GENERALLY ENDS AT 4:00 P.M. EASTERN TIME (OR AS OF AN
EARLIER CLOSE OF REGULAR TRADING). A BUSINESS DAY DOES NOT INCLUDE A DAY ON
WHICH WE ARE NOT OPEN DUE TO EMERGENCY CONDITIONS DETERMINED BY THE SECURITIES
AND EXCHANGE COMMISSION. WE MAY ALSO CLOSE EARLY DUE TO SUCH EMERGENCY
CONDITIONS. FOR MORE INFORMATION ABOUT OUR BUSINESS DAY AND OUR PRICING OF
TRANSACTIONS, PLEASE SEE "DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR" IN
"MORE INFORMATION" LATER IN THIS PROSPECTUS.
--------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the following:
.. Protected Benefit account variable investment options (used to fund
Guaranteed benefits)
22
CONTRACT FEATURES AND BENEFITS
.. Investment account variable investment options
.. Guaranteed interest option
.. the account for special dollar cost averaging
<R>
As noted throughout this Prospectus, you may elect the GMIB at the time you
apply for your contract. The Return of Principal death benefit and the "Greater
of" death benefit can only be elected in combination with the GMIB. The Highest
Anniversary Value death benefit can be elected with or without selecting the
GMIB. If you elect the GMIB and do not elect a guaranteed minimum death
benefit, you will automatically receive the Return of Principal death benefit.
The RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Your Guaranteed benefits do not need to be funded at issue. Also, any
applicable charges will not be assessed until you fund your Protected Benefit
account. The Protected Benefit account variable investment options are used to
fund these benefits.
</R>
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in the Special DCA program designated for future transfers
to the Protected Benefit account variable investment options will fund your
Guaranteed benefits. These amounts will be included in the respective benefit
bases of your Guaranteed benefits and will become part of your Protected
Benefit account value. All amounts allocated to the Protected Benefit account
variable investment options and amounts in the Special DCA program designated
for Protected Benefit account variable investment options are subject to the
terms and conditions of the Guaranteed benefits under your contract.
If you allocate to investment options available to fund your Guaranteed
benefits, you may later decide to change your allocation instructions in order
to increase, decrease or stop the funding of your Guaranteed benefits. Also, if
you have a Guaranteed benefit, there is no requirement that you must fund it
either at issue or on any future date.
IF YOU HAVE A GUARANTEED BENEFIT AND ALLOCATE ANY AMOUNT TO THE PROTECTED
BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS OR THE SPECIAL DCA PROGRAM WITH
AMOUNTS DESIGNATED FOR FUTURE TRANSFERS TO THE PROTECTED BENEFIT ACCOUNT
VARIABLE INVESTMENT OPTIONS, YOU ARE FUNDING THE GUARANTEED BENEFITS UNDER YOUR
CONTRACT. NO OTHER ACTION IS REQUIRED OF YOU. IF YOU DO NOT WISH TO FUND A
GUARANTEED BENEFIT, YOU SHOULD NOT ALLOCATE CONTRIBUTIONS OR MAKE TRANSFERS TO
YOUR PROTECTED BENEFIT ACCOUNT. SEE "ALLOCATING YOUR CONTRIBUTIONS" LATER IN
THIS PROSPECTUS.
Once you allocate amounts to the Protected Benefit account variable investment
options, such amounts may be transferred among the Protected Benefit account
variable investment options, but may not be transferred to the Investment
account variable investment options or the guaranteed interest option. In
addition, we may at any time exercise our right to limit or terminate transfers
into any of the variable investment options. For more information, see
"Transferring your money among investment options" later in this Prospectus.
The table below shows the current Protected Benefit account variable investment
options and Investment account variable investment options available to you. It
is important to note that the Protected Benefit account variable investment
options (with the exception of the AXA Ultra Conservative Strategy) are also
available as Investment account variable investment options. The Protected
Benefit account variable investment options invest in the same Portfolios as
the corresponding Investment account variable investment options.
PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS
--------------------------------------------------------------------------------
.. AXA Aggressive Strategy
.. AXA Balanced Strategy
.. AXA Conservative Growth Strategy
.. AXA Conservative Strategy
.. AXA Growth Strategy
.. AXA Moderate Growth Strategy
.. AXA Ultra Conservative Strategy/(1)/
<R>
.. AXA/AB Dynamic Growth
.. AXA/AB Dynamic Moderate Growth
.. AXA/Goldman Sachs Strategic Allocation
.. AXA/Invesco Strategic Allocation
</R>
--------------------------------------------------------------------------------
(1)The AXA Ultra Conservative Strategy investment option is part of the asset
transfer program. You may not directly allocate a contribution to or request
a transfer of account value into this investment option.
INVESTMENT ACCOUNT VARIABLE INVESTMENT OPTIONS
--------------------------------------------------------------------------------
<R>
.. 7Twelve/TM/ Balanced Portfolio
.. All Asset Growth - Alt 20
.. All Asset Aggressive - Alt 25
.. All Asset Moderate Growth - Alt 15
.. AB VPS International Growth
.. American Century VP Mid Cap Value
.. American Funds Insurance Series(R) Bond Fund/SM/
.. American Funds Insurance Series(R) Global Small Capitalization Fund/SM/
.. American Funds Insurance Series(R) New World Fund(R)
.. AXA/AB Dynamic Growth
.. AXA/AB Dynamic Moderate Growth
.. AXA/AB Small Cap Growth
.. AXA/DoubleLine Opportunistic Income
.. AXA/Goldman Sachs Strategic Allocation
.. AXA/Invesco Strategic Allocation
.. AXA Aggressive Strategy
.. AXA Balanced Strategy
.. AXA Conservative Growth Strategy
.. AXA Conservative Strategy
.. AXA Growth Strategy
.. AXA International Core Managed Volatility
.. AXA Large Cap Value Managed Volatility
.. AXA/Loomis Sayles Growth
.. AXA Mid Cap Value Managed Volatility
.. AXA Moderate Allocation
.. AXA Moderate Growth Strategy
.. AXA Natural Resources
.. BlackRock Global Allocation V.I. Fund
.. BlackRock Large(R) Cap Growth V.I. Fund
.. Charter/SM/ Alternative100 Moderate
.. Charter/SM/ International Moderate
.. Charter/SM/ Moderate
.. Charter/SM/ Moderate Growth
.. Charter/SM/ Real Assets
.. Charter/SM/ Small Cap Value
.. ClearBridge Variable Aggressive Growth
.. ClearBridge Variable Appreciation
.. ClearBridge Variable Dividend Strategy
.. ClearBridge Variable Mid Cap Core
.. EQ/BlackRock Basic Value Equity
.. EQ/Boston Advisors Equity Income
.. EQ/Common Stock Index
.. EQ/Core Bond Index
.. EQ/Equity 500 Index
.. EQ/Emerging Markets Equity PLUS
.. EQ/GAMCO Mergers and Acquisitions
.. EQ/GAMCO Small Company Value
.. EQ/High Yield Bond
.. EQ/Intermediate Government Bond
.. EQ/International Equity Index
.. EQ/Invesco Comstock
.. EQ/Large Cap Growth Index
.. EQ/Large Cap Value Index
.. EQ/MFS International Growth
.. EQ/Mid Cap Index
.. EQ/Money Market
.. EQ/Morgan Stanley Mid Cap Growth
.. EQ/Oppenheimer Global
</R>
<R>
.. EQ/PIMCO Global Real Return
.. EQ/PIMCO Ultra Short Bond
.. EQ/Real Estate PLUS
.. EQ/Small Company Index
.. EQ/T. Rowe Price Growth Stock
.. Eaton Vance VT Floating-Rate Income
.. Fidelity(R) VIP Contrafund(R)
.. Fidelity(R) VIP Mid Cap
.. Fidelity(R) VIP Strategic Income
.. First Trust/Dow Jones Dividend & Income Allocation
.. First Trust Multi Income Allocation
.. Franklin Founding Funds Allocation VIP
.. Franklin Income VIP
.. Franklin Rising Dividends VIP
.. Franklin Strategic Income VIP
.. Goldman Sachs VIT Mid Cap Value
.. Hartford Capital Appreciation HLS
.. Hartford Growth Opportunities HLS
.. Invesco V.I. Diversified Dividend
.. Invesco V.I. Equity and Income Fund
.. Invesco V.I. Global Real Estate
.. Invesco V.I. High Yield
.. Invesco V.I. International Growth
.. Invesco V.I. Mid Cap Core Equity
.. Invesco V.I. Small Cap Equity
.. Ivy Funds VIP Asset Strategy
.. Ivy Funds VIP Dividend Opportunities
.. Ivy Funds VIP Energy
.. Ivy Funds VIP Global Natural Resources
.. Ivy Funds VIP High Income
.. Ivy Funds VIP Mid Cap Growth
.. Ivy Funds VIP Science and Technology
.. Ivy Funds VIP Small Cap Growth
.. Lazard Retirement Emerging Markets Equity
.. Legg Mason BW Absolute Return Opportunities VIT
.. Lord Abbett Bond Debenture
.. MFS(R) International Value
.. MFS(R) Investors Trust Series
.. MFS(R) Massachusetts Investors Growth Stock
.. MFS(R) Utilities Series
.. Multimanager Aggressive Equity
.. Multimanager Mid Cap Growth
.. Multimanager Mid Cap Value
.. Multimanager Technology
.. Neuberger Berman Absolute Return Multi-Manager
.. Neuberger Berman International Equity
.. PIMCO CommodityRealReturn(R) Strategy
.. PIMCO Real Return
.. PIMCO Total Return
.. ProFund VP Biotechnology
.. Putnam VT Diversified Income
.. QS Legg Mason Dynamic Multi-Strategy VIT
.. T.Rowe Price Health Sciences Portfolio II
.. Templeton Developing Markets VIP
.. Templeton Global Bond VIP
.. Van Eck VIP Global Hard Assets
</R>
--------------------------------------------------------------------------------
If you decide to participate in the Special DCA program, any amounts allocated
to the program that are designated for future transfers to the Protected
Benefit account variable investment options will be included in the Protected
Benefit account value. Any amounts allocated to the Special DCA program that
are designated for future transfers to
23
CONTRACT FEATURES AND BENEFITS
the Investment account variable investment options and the guaranteed interest
option will be included in your Investment account value. As discussed later in
this section, the Special DCA program allows you to gradually allocate amounts
to available investment options through periodic transfers. You can allocate to
either or both Investment account and Protected Benefit account variable
investment options as part of your Special DCA program. See "Allocating your
contributions" later in this section.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying Portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available Portfolios, their investment
objectives their investment manager(s) and/or sub-adviser(s). We may, at any
time, exercise our rights to limit or terminate your contributions, allocations
and transfers to any of the variable investment options (including the
Protected Benefit account variable investment options) and to limit the number
of variable investment options which you may select.
24
CONTRACT FEATURES AND BENEFITS
PORTFOLIOS OF THE TRUSTS
<R>
We offer both affiliated and unaffiliated Trusts, which in turn offer one or
more Portfolios. AXA Equitable Funds Management Group, LLC, ("AXA FMG") a
wholly owned subsidiary of AXA Equitable, serves as the investment manager of
the Portfolios of AXA Premier VIP Trust and EQ Advisors Trust. For some
affiliated Portfolios, AXA FMG has entered into sub-advisory agreements with
one or more investment advisers (the "sub-advisers") to carry out the
day-to-day investment decisions for the Portfolios. As such, among other
responsibilities, AXA FMG oversees the activities of the sub-advisers with
respect to the Trusts and is responsible for retaining or discontinuing the
services of those sub-advisers. The chart below indicates the sub-adviser(s)
for each Portfolio, if any. The chart below also shows the currently available
Portfolios and their investment objectives.
You should be aware that AXA Advisors may directly or indirectly receive 12b-1
fees from affiliated Portfolios for providing certain distribution and/or
shareholder support services. These fees will not exceed 0.25% of the
Portfolios' average daily net assets. The affiliated Portfolios' sub-advisers
and/or their affiliates may also contribute to the cost of expenses for sales
meetings or seminar sponsorships that may relate to the contracts and/or the
sub-advisers' respective Portfolios. In addition, AXA FMG receives management
fees and administrative fees in connection with the services it provides to the
affiliated Portfolios. As such, it is generally more profitable for us to offer
affiliated Portfolios than to offer unaffiliated Portfolios.
</R>
AXA Equitable or AXA Advisors may directly or indirectly receive 12b-1 fees and
additional payments from certain unaffiliated Portfolios, their advisers,
sub-advisers, distributors or affiliates, for providing certain administrative,
marketing, distribution and/or shareholder support services. These fees and
payments range from 0% to 0.60% of the unaffiliated Portfolios' average daily
net assets. AXA Advisors may also receive payments from the advisers or
sub-advisers of the unaffiliated Portfolios or their affiliates for certain
distribution services, including expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the advisers' respective
Portfolios.
As a contract owner, you may bear the costs of some or all of these fees and
payments through your indirect investment in the Portfolios. (See the
Portfolios' prospectuses for more information.) These fees and payments, as
well as the Portfolios' investment management fees and administrative expenses,
will reduce the underlying Portfolios' investment returns. AXA Equitable may
profit from these fees and payments. AXA Equitable considers the availability
of these fees and payment arrangements during the selection process for the
underlying Portfolios. These fees and payment arrangements may create an
incentive for us to select Portfolios (and classes of shares of Portfolios)
that pay us higher amounts.
Some affiliated Portfolios invest in other affiliated Portfolios ("the AXA Fund
of Fund Portfolios"). The AXA Fund of Fund Portfolios offer contract owners a
convenient opportunity to invest in other Portfolios that are managed and have
been selected for inclusion in the AXA Fund of Fund Portfolios by AXA FMG. AXA
Advisors, an affiliated broker-dealer of AXA Equitable, may promote the
benefits of such Portfolios to contract owners and/or suggest that contract
owners consider whether allocating some or all of their account value to such
Portfolios is consistent with their desired investment objectives. In doing so,
AXA Equitable, and/or its affiliates, may be subject to conflicts of interest
insofar as AXA Equitable may derive greater revenues from the AXA Fund of Fund
Portfolios than certain other Portfolios available to you under your contract.
Please see "Allocating your contributions" later in this section for more
information about your role in managing your allocations.
As described in more detail in the Portfolio prospectuses, the AXA Managed
Volatility Portfolios may utilize a proprietary volatility management strategy
developed by AXA FMG (the "AXA volatility management strategy"), and, in
addition, certain AXA Fund of Fund Portfolios may invest in affiliated
Portfolios that utilize this strategy. The AXA volatility management strategy
uses futures and options, such as exchange-traded futures and options contracts
on securities indices, to reduce the Portfolio's equity exposure during periods
when certain market indicators indicate that market volatility is above
specific thresholds set for the Portfolio. When market volatility is increasing
above the specific thresholds set for a Portfolio utilizing the AXA volatility
management strategy, the manager of the Portfolio may reduce equity exposure.
Although this strategy is intended to reduce the overall risk of investing in
the Portfolio, it may not effectively protect the Portfolio from market
declines and may increase its losses. Further, during such times, the
Portfolio's exposure to equity securities may be less than that of a
traditional equity portfolio. This may limit the Portfolio's participation in
market gains and result in periods of underperformance, including those periods
when the specified benchmark index is appreciating, but market volatility is
high. It may also impact the value of certain guaranteed benefits, as discussed
below.
<R>
The AXA Managed Volatility Portfolios that include the AXA volatility
management strategy as part of their investment objective and/or principal
investment strategy, and the AXA Fund of Fund Portfolios that invest in
Portfolios that use the AXA volatility management strategy, are identified
below in the chart by a "(check mark)" under the column entitled "Volatility
Management."
</R>
You should be aware that having the GMIB and/or certain other guaranteed
benefits limits your ability to invest in some of the variable investment
options that would otherwise be available to you under the contract. In
addition, if you have the GMIB, you are required to participate in the asset
transfer program which moves account value between the AXA Ultra Conservative
Strategy investment option and the variable investment options. See "Asset
transfer program ("ATP")" in "Contract features and benefits" later in this
prospectus. See "Allocating your contributions" under "Contract features and
benefits" for more information about the investment restrictions under your
contract.
<R>
Portfolios that utilize the AXA volatility management strategy (or, in the case
of certain AXA Fund of Fund Portfolios, invest in other Portfolios that use the
AXA volatility management strategy); investment option restrictions in
connection with any guaranteed benefit that include these Portfolios; and the
ATP are designed to reduce the overall volatility of your Total account value
and provide you with risk-adjusted returns over time. The reduction in
volatility helps us manage the risks associated with providing guaranteed
benefits during times of high volatility in the equity market. During rising
markets, the AXA volatility management strategy, however, could result in your
Total account value rising less than would have been the case had you been
invested in a Portfolio that does not utilize the AXA volatility management
strategy (or, in the case of the AXA Fund of
</R>
25
CONTRACT FEATURES AND BENEFITS
<R>
Fund Portfolios, invest exclusively in other Portfolios that do not use the AXA
volatility management strategy). This may effectively suppress the value of
guaranteed benefit(s) that are eligible for periodic benefit base resets
because your benefit base is available for resets only when your Protected
Benefit account value is higher. Conversely, investing in investment options
that feature a managed-volatility strategy may be helpful in a declining market
when high market volatility triggers a reduction in the investment option's
equity exposure because during these periods of high volatility, the risk of
losses from investing in equity securities may increase. In these instances,
your Total account value may decline less than would have been the case had you
not been invested in investment options that feature a volatility management
strategy.
Please see the underlying Portfolio prospectuses for more information in
general, as well as more information about the AXA volatility management
strategy. Please further note that certain other affiliated Portfolios, as well
as unaffiliated Portfolios, may utilize volatility management techniques that
differ from the AXA volatility management strategy. Affiliated Portfolios that
utilize these volatility management techniques are identified below in the
chart by a "(delta)" under the column entitled "Volatility Management." Any
such unaffiliated Portfolio is not identified under "Volatility Management"
below in the chart. Such techniques could also impact your Total account value
and guaranteed benefit(s), if any, in the same manner described above. Please
see the Portfolio prospectuses for more information about the Portfolios'
objective and strategies.
</R>
Whether or not you elected a guaranteed benefit that requires you to
participate in the ATP, you should be aware that operation of the predetermined
mathematical formulas underpinning the ATP has the potential to adversely
impact the Portfolios, including their performance, risk profile and expenses.
Particularly during times of high market volatility, if the ATP triggers
substantial asset flows into and out of a Portfolio, it could have the
following effects on all contract owners invested in that Portfolio:
(a)By requiring a Portfolio sub-adviser to buy and sell large amounts of
securities at inopportune times, a Portfolio's investment performance and
the ability of the sub-adviser to fully implement the Portfolio's investment
strategy could be negatively affected; and
(b)By generating higher turnover in its securities or other assets than it
would have experienced without being impacted by the ATP, a Portfolio could
incur higher operating expense ratios and transaction costs than comparable
funds. In addition, even Portfolios structured as funds-of-funds that are
not available for investment by contract owners who are subject to the ATP
could also be impacted by the ATP if those Portfolios invest in underlying
funds that are themselves subject to significant asset turnover caused by
the ATP. Because the ATP formulas generate unique results for each contract,
not all contract owners who are subject to the ATP will be affected by
operation of the ATP in the same way. On any particular day on which the ATP
is activated, some contract owners may have a portion of their account value
transferred to the AXA Ultra Conservative Strategy investment option and
others may not. If the ATP causes significant transfers of account value out
of one or more Portfolios, any resulting negative effect on the performance
of those Portfolios will be experienced to a greater extent by a contract
owner (with or without the ATP) invested in those Portfolios whose account
value was not subject to the transfers.
<R>
----------------------------------------------------------------------------------------------------------------
INVESTMENT
MANAGER (OR
AXA PREMIER VIP SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Class A Seeks to achieve long-term capital . AXA Equitable (check mark)
appreciation and current income. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ ALTERNATIVE Class B Seeks long-term capital appreciation. . AXA Equitable
100 MODERATE Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Seeks long-term capital appreciation . AXA Equitable
INTERNATIONAL MODERATE and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE Class B Seeks long-term capital appreciation . AXA Equitable
and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE Class B Seeks long-term capital appreciation . AXA Equitable
GROWTH and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ REAL ASSETS Class B Seeks to achieve maximum real . AXA Equitable
return. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP Class B Seeks to achieve long-term growth of . AXA Equitable
VALUE capital. Funds
Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
</R>
<R>
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S),
TRUST PORTFOLIO VOLATILITY
NAME/(*)/ SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE - Class IB Seeks long-term capital appreciation . AXA Equitable
ALT 25 and current income, with a greater Funds
emphasis on capital appreciation. Management
Group, LLC
-------------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH - ALT 20 Class IA Seeks long-term capital appreciation . AXA Equitable
and current income. Funds
Management
Group, LLC
-------------------------------------------------------------------------------------------------------------
</R>
26
CONTRACT FEATURES AND BENEFITS
<R>
-----------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S),
TRUST PORTFOLIO VOLATILITY
NAME/(*)/ SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------------------------------------------------
ALL ASSET Class IB Seeks long-term capital appreciation . AXA Equitable
MODERATE GROWTH - ALT and current income, with a greater Funds
15 emphasis on current income. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
STRATEGY/(1)/ and current income, with a greater Funds
emphasis on capital appreciation. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA BALANCED Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
STRATEGY/(1)/ and current income. Funds
Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE GROWTH Class IB Seeks current income and growth of . AXA Equitable (check mark)
STRATEGY/(1)/ capital, with a greater emphasis on Funds
current income. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE Class IB Seeks a high level of current income. . AXA Equitable (check mark)
STRATEGY/(1)/ Funds
Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA GROWTH STRATEGY/(1)/ Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
and current income, with a greater Funds
emphasis on capital appreciation. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA MODERATE GROWTH Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
STRATEGY/(1)/ and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA ULTRA CONSERVATIVE Class IB Seeks current income. . AXA Equitable (check mark)
STRATEGY/(2)/ Funds
Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA/AB DYNAMIC Class IB Seeks to achieve total return from . (delta)
GROWTH/(1)/ long-term growth of capital and AllianceBernstein
income, with a greater emphasis on L.P.
growth of capital.
-----------------------------------------------------------------------------------------------------------------
AXA/AB DYNAMIC MODERATE Class IB Seeks to achieve total return from . (delta)
GROWTH/(1)/ long-term growth of capital and AllianceBernstein
income. L.P.
-----------------------------------------------------------------------------------------------------------------
AXA/AB SMALL CAP GROWTH Class IA Seeks to achieve long-term growth of .
capital. AllianceBernstein
L.P.
-----------------------------------------------------------------------------------------------------------------
AXA/DOUBLELINE Class IB Seeks to maximize current income . DoubleLine
OPPORTUNISTIC CORE and total return. Capital LP
PLUS BOND
-----------------------------------------------------------------------------------------------------------------
AXA/GOLDMAN SACHS Class IB Seeks to achieve long term capital . Goldman Sachs (delta)
STRATEGIC appreciation under normal market Asset
ALLOCATION/(1)/ conditions, while focusing on the Management, L.P.
preservation of capital in distressed
market environments.
-----------------------------------------------------------------------------------------------------------------
AXA INTERNATIONAL CORE Class IA Seeks to achieve long-term growth of . AXA Equitable (check mark)
MANAGED VOLATILITY capital with an emphasis on risk- Funds
adjusted returns and managing Management
volatility in the Portfolio. Group, LLC
. BlackRock
Investment
Management, LLC
. EARNEST
Partners, LLC
. Massachusetts
Financial
Services
Company d/b/a
MFS Investment
Management
. Hirayama
Investments, LLC
. WHV Investment
Management
-----------------------------------------------------------------------------------------------------------------
AXA/INVESCO STRATEGIC Class IB Seeks long-term capital appreciation . Invesco (delta)
ALLOCATION/(1)/ while managing portfolio volatility. Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------
</R>
27
CONTRACT FEATURES AND BENEFITS
<R>
--------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S),
TRUST PORTFOLIO VOLATILITY
NAME/(*)/ SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
--------------------------------------------------------------------------------------------------------------------
AXA LARGE CAP VALUE Class IA Seeks to achieve long-term growth of . (check mark)
MANAGED VOLATILITY capital with an emphasis on risk- AllianceBernstein
adjusted returns and managing L.P.
volatility in the Portfolio. . AXA Equitable
Funds
Management
Group, LLC
. BlackRock
Investment
Management, LLC
. Massachusetts
Financial
Services
Company d/b/a
MFS Investment
Management
--------------------------------------------------------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH Class IA Seeks to achieve capital appreciation. . Loomis, Sayles
& Company, L.P.
--------------------------------------------------------------------------------------------------------------------
AXA MID CAP VALUE Class IA Seeks to achieve long-term capital . AXA Equitable (check mark)
MANAGED VOLATILITY appreciation with an emphasis on risk Funds
adjusted returns and managing Management
volatility in the Portfolio. Group, LLC
. BlackRock
Investment
Management, LLC
. Diamond Hill
Capital
Management, Inc.
. Wellington
Management
Company, LLP
--------------------------------------------------------------------------------------------------------------------
AXA NATURAL RESOURCES Class IB Seeks to achieve long-term growth of .
capital. AllianceBernstein
L.P.
--------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE Class IA Seeks to achieve capital appreciation . BlackRock
EQUITY and secondarily, income. Investment
Management, LLC
--------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS Class IA Seeks a combination of growth and . Boston
EQUITY INCOME income to achieve an above-average Advisors, LLC
and consistent total return.
--------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK INDEX Class IA Seeks to achieve a total return before .
expenses that approximates the total AllianceBernstein
return performance of the Russell L.P.
3000(R) Index, including reinvestment
of dividends, at a risk level consistent
with that of the Russell 3000(R) Index.
--------------------------------------------------------------------------------------------------------------------
EQ/CORE BOND INDEX Class IB Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the Barclays
Intermediate U.S. Government/Credit
Index, including reinvestment of
dividends, at a risk level consistent
with that of the Barclays Intermediate
U.S. Government/Credit Index.
--------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS Class IB Seeks to achieve long-term growth of .
EQUITY PLUS capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
. EARNEST
Partners, LLC
--------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Class IA Seeks to achieve a total return before .
expenses that approximates the total AllianceBernstein
return performance of the Standard & L.P.
Poor's 500 Composite Stock Price In-
dex, including reinvestment of divi-
dends, at a risk level consistent with
that of the Standard & Poor's 500
Composite Stock Price Index.
--------------------------------------------------------------------------------------------------------------------
</R>
28
CONTRACT FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S),
TRUST PORTFOLIO VOLATILITY
NAME/(*)/ SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------
EQ/GAMCO MERGERS AND Class IA Seeks to achieve capital appreciation. . GAMCO Asset
ACQUISITIONS Management, Inc.
-------------------------------------------------------------------------------------------------------------------
EQ/GAMCO SMALL COMPANY Class IA Seeks to maximize capital . GAMCO Asset
VALUE appreciation. Management, Inc.
-------------------------------------------------------------------------------------------------------------------
EQ/HIGH YIELD BOND Class IB Seeks to maximize current income. . AXA Equitable
Funds
Management
Group, LLC
. AXA Investment
Managers, Inc.
. Post Advisory
Group, LLP
-------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE Class IB Seeks to achieve a total return before . AXA Equitable
GOVERNMENT BOND expenses that approximates the total Funds
return performance of the Barclays Management
Intermediate U.S. Government Bond Group, LLC
Index, including reinvestment of . SSgA Funds
dividends, at a risk level consistent Management, Inc.
with that of the Barclays Intermediate
U.S. Government Bond Index.
-------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL EQUITY Class IA Seeks to achieve a total return (before .
INDEX expenses) that approximates the total AllianceBernstein
return performance of a composite L.P.
index comprised of 40% DJ EURO
STOXX 50 Index, 25% FTSE 100
Index, 25% TOPIX Index, and 10%
S&P/ASX 200 Index, including
reinvestment of dividends, at a risk
level consistent with that of the
composite index.
-------------------------------------------------------------------------------------------------------------------
EQ/INVESCO COMSTOCK Class IA Seeks to achieve capital growth and . Invesco
income. Advisers, Inc.
-------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX Class IA Seeks to achieve a total return before .
expenses that approximates the total AllianceBernstein
return performance of the L.P.
Russell 1000(R) Growth Index, including
reinvestment of dividends at a risk level
consistent with that of the Russell
1000(R) Growth Index.
-------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX Class IA Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the Russell
1000(R) Value Index, including
reinvestment of dividends, at a risk
level consistent with that of the Russell
1000(R) Value Index.
-------------------------------------------------------------------------------------------------------------------
EQ/MFS INTERNATIONAL Class IA Seeks to achieve capital appreciation. . Massachusetts
GROWTH Financial
Services
Company d/b/a
MFS Investment
Management
-------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX Class IA Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the S&P Mid
Cap 400 Index, including reinvestment
of dividends, at a risk level consistent
with that of the S&P Mid Cap 400
Index.
-------------------------------------------------------------------------------------------------------------------
</R>
29
CONTRACT FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S),
TRUST PORTFOLIO VOLATILITY
NAME/(*)/ SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Class IA Seeks to obtain a high level of current . The Dreyfus
income, preserve its assets and Corporation
maintain liquidity.
-------------------------------------------------------------------------------------------------------------------------
EQ/MORGAN STANLEY MID Class IA Seeks to achieve capital growth. .
CAP GROWTH Morgan Stanley Investment
Management Inc.
-------------------------------------------------------------------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL Class IA Seeks to achieve capital appreciation. .
OppenheimerFunds,
Inc.
-------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO GLOBAL REAL Class IB Seeks to achieve maximum real . Pacific
RETURN return, consistent with preservation of Investment
capital and prudent investment Management
management. Company LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND Class IA Seeks to generate a return in excess . Pacific
of traditional money market products Investment
while maintaining an emphasis on Management
preservation of capital and liquidity. Company LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/REAL ESTATE PLUS Class IB Seeks to provide long-term capital .
appreciation and current income. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
. Pacific
Investment
Management
Company LLC
-------------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Class IA Seeks to replicate as closely as .
possible (before expenses) the total AllianceBernstein
return of the Russell 2000(R) Index. L.P.
-------------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH Class IA Seeks to achieve long-term capital . T. Rowe Price
STOCK appreciation and secondarily, income. Associates, Inc.
-------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER AGGRESSIVE Class IB Seeks to achieve long-term growth of .
EQUITY capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
. ClearBridge
Investments, LLC
. Marsico Capital
Management, LLC
. Scotia
Institutional
Management US,
Ltd.
. T. Rowe Price
Associates, Inc.
. Westfield
Capital
Management
Company, L.P.
-------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID CAP Class IB Seeks to achieve long-term growth of .
GROWTH capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
.
BlackRock Investment
Management, LLC
. Franklin
Advisers, Inc.
.
Wellington Management
Company, LLP
-------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID CAP Class IB Seeks to achieve long-term growth of . AXA Equitable
VALUE capital. Funds
Management
Group, LLC
. BlackRock
Investment
Management, LLC
. Diamond Hill
Capital
Management, Inc.
. Knightsbridge
Asset
Management, LLC
. Lord, Abbett &
Co. LLC
-------------------------------------------------------------------------------------------------------------------------
</R>
30
CONTRACT FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------------------------------------
EQ ADVISORS INVESTMENT MANAGER
TRUST PORTFOLIO (OR SUB-ADVISER(S), VOLATILITY
NAME/(*)/ SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------
MULTIMANAGER TECHNOLOGY Class IB Seeks to achieve long-term growth of . Allianz Global
capital. Investors U.S.
LLC
. AXA Equitable
Funds
Management
Group, LLC
. SSgA Funds
Management, Inc.
. Wellington
Management
Company, LLP
-------------------------------------------------------------------------------------------------------------
</R>
<R>
AIM
VARIABLE
INSURANCE
FUNDS (INVESCO
VARIABLE
INSURANCE FUNDS) INVESTMENT MANAGER
- SERIES (OR SUB-ADVISER(S),
II PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objective is to provide . Invesco
V.I. reasonable current income and long-term growth of Advisers,
DIVERSIFIED income and capital. Inc.
DIVIDEND
FUND
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objectives are both capital . Invesco
V.I. appreciation and current income. Advisers,
EQUITY Inc.
AND
INCOME
FUND
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objective is total return . Invesco
V.I. through growth of capital and current income. Advisers,
GLOBAL Inc.
REAL . Invesco
ESTATE Asset
FUND Management
Limited
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objective is total return, . Invesco
V.I. HIGH comprised of current income and capital Advisers,
YIELD FUND appreciation. Inc.
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objective is long-term growth . Invesco
V.I. of capital. Advisers,
INTERNATIONAL Inc.
GROWTH
FUND
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objective is long-term growth . Invesco
V.I. MID of capital. Advisers,
CAP CORE Inc.
EQUITY
FUND
-------------------------------------------------------------------------------------------------
INVESCO The fund's investment objective is long-term growth . Invesco
V.I. of capital. Advisers,
SMALL CAP Inc.
EQUITY
FUND
-------------------------------------------------------------------------------------------------
</R>
<R>
AB
VARIABLE
PRODUCT
SERIES
FUND, INC. INVESTMENT MANAGER
- CLASS (OR SUB-ADVISER(S),
B PORTFOLIO AS
NAME/(*)/ OBJECTIVE APPLICABLE)
--------------------------------------------------------------------------------------------
AB VPS The Portfolio's investment objective is long-term .
INTERNATIONAL growth of capital. AllianceBernstein
GROWTH L.P.
PORTFOLIO
</R>
------------------------------------------------------------------------------------------------------
AMERICAN
CENTURY
VARIABLE PORTFOLIOS, INVESTMENT MANAGER
INC.
- (OR SUB-ADVISER(S),
CLASS
II PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------------------
The fund seeks .
AMERICAN long-term capital American
CENTURY growth. Income is a Century
VP secondary objective. Investment
MID Management,
CAP VALUE Inc.
FUND
------------------------------------------------------------------------------------------------------
AMERICAN
FUNDS
INSURANCE SERIES(R)
- CLASS
4 SHARES INVESTMENT MANAGER
(OR SUB-ADVISER(S),
PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
-----------------------------------------------------------------------------------------------------
BOND The fund's investment objective is to provide as .
FUND/SM/ high a level of current income as is consistent with Capital
the preservation of capital. Research
and
Management
Company
-----------------------------------------------------------------------------------------------------
GLOBAL The fund's investment objective is to provide you .
SMALL with long-term growth of capital. Capital
CAPITALIZATION Research
FUND/SM/ and
Management
Company
-----------------------------------------------------------------------------------------------------
NEW WORLD The fund's investment objective is to provide .
FUND(R) long-term capital appreciation. Capital
Research
and
Management
Company
-----------------------------------------------------------------------------------------------------
31
CONTRACT FEATURES AND BENEFITS
<R>
-----------------------------------------------------------------------------------------------------------------------
BLACKROCK
VARIABLE
SERIES FUNDS,
INC. - INVESTMENT MANAGER
CLASS (OR SUB-ADVISER(S),
III PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
-----------------------------------------------------------------------------------------------------------------------
BLACKROCK To seek high total investment return. .
GLOBAL ALLOCATION BlackRock
V.I. FUND Advisors,
LLC
-----------------------------------------------------------------------------------------------------------------------
BLACKROCK Seeks long-term capital growth. .
LARGE BlackRock
CAP GROWTH Advisors,
V.I. FUND LLC
</R>
----------------------------------------------------------------------------------------------------------------------
EATON
VANCE
VARIABLE INVESTMENT
TRUST MANAGER (OR
PORTFOLIO SUB-ADVISER(S), AS
NAME OBJECTIVE APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
EATON VANCE To provide a high level of current income. . Eaton
VT Vance
FLOATING-RATE Management
INCOME
FUND
----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VARIABLE
INSURANCE PRODUCTS INVESTMENT MANAGER
(VIP) - SERVICE CLASS (OR SUB-ADVISER(S),
2 PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks long-term capital appreciation. . Fidelity Management & Research
CONTRAFUND(R) PORTFOLIO Company (FMR)
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID Seeks long-term growth of capital. . Fidelity Management &
CAP PORTFOLIO Research Company (FMR)
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks a high level of current income. The fund . Fidelity Management & Research
STRATEGIC INCOME may also seek capital appreciation. Company (FMR)
PORTFOLIO
-----------------------------------------------------------------------------------------------------
FIDELITY(R) VARIABLE
INSURANCE PRODUCTS INVESTMENT MANAGER
(VIP) - SERVICE CLASS (OR SUB-ADVISER(S),
2 PORTFOLIO NAME AS APPLICABLE)
-----------------------------------------------------------------------------------------------------
FIDELITY(R) VIP . Fidelity Management & Research
CONTRAFUND(R) PORTFOLIO Company (FMR)
-----------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID . Fidelity Management &
CAP PORTFOLIO Research Company (FMR)
-----------------------------------------------------------------------------------------------------
FIDELITY(R) VIP . Fidelity Management & Research
STRATEGIC INCOME Company (FMR)
PORTFOLIO
<R>
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST VARIABLE INVESTMENT MANAGER
INSURANCE TRUST PORTFOLIO (OR SUB-ADVISER(S),
NAME OBJECTIVE AS APPLICABLE
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES Seeks to provide total return by allocating among . First Trust Advisors, L.P.
DIVIDEND & INCOME dividend-paying stocks and investment grade
ALLOCATION PORTFOLIO bonds.
-----------------------------------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME Seeks to maximize current income, with a . First Trust Advisors L.P.
ALLOCATION PORTFOLIO secondary objective of capital appreciation.
</R>
<R>
-------------------------------------------------------------------------------------------------------
FIRST TRUST VARIABLE INVESTMENT MANAGER
INSURANCE TRUST PORTFOLIO (OR SUB-ADVISER(S),
NAME AS APPLICABLE
-------------------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES . First Trust Advisors, L.P.
DIVIDEND & INCOME
ALLOCATION PORTFOLIO
-------------------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME . First Trust Advisors L.P.
ALLOCATION PORTFOLIO
</R>
------------------------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON
VARIABLE INSURANCE INVESTMENT MANAGER
PRODUCTS TRUST - CLASS (OR SUB-ADVISER(S),
2 PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS The Fund's principal investment goal is capital . Fund Administrator: Franklin
ALLOCATION VIP FUND appreciation. Its secondary goal is income. Templeton Services, LLC
------------------------------------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND Seeks to maximize income while maintaining . Franklin Advisers, Inc.
prospects for capital appreciation.
------------------------------------------------------------------------------------------------------------------------
FRANKLIN RISING Seeks long-term capital appreciation, with . Franklin Advisory Services, LLC
DIVIDENDS VIP FUND preservation of capital as an important
consideration.
------------------------------------------------------------------------------------------------------------------------
FRANKLIN STRATEGIC The Fund's principal investment goal is to seek a . Franklin Advisers, Inc.
INCOME VIP FUND high level of current income. Its secondary goal is
capital appreciation over long term.
------------------------------------------------------------------------------------------------------------------------
TEMPLETON DEVELOPING Seeks long-term capital appreciation. . Templeton Asset Management Ltd.
MARKETS VIP FUND
------------------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL Seeks high current income, consistent with . Franklin Advisers, Inc.
BOND VIP FUND preservation of capital. Capital appreciation is a
secondary consideration.
----------------------------------------------------------------------------------------------------------
GOLDMAN SACHS
VARIABLE INSURANCE INVESTMENT MANAGER
TRUST - SERVICE (OR SUB-ADVISER(S),
SHARES PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
----------------------------------------------------------------------------------------------------------
GOLDMAN SACHS VIT MID Seeks long-term capital appreciation. .
CAP VALUE FUND Goldman Sachs Asset Management, L.P.
----------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------
GOLDMAN SACHS
VARIABLE INSURANCE INVESTMENT MANAGER
TRUST - SERVICE (OR SUB-ADVISER(S),
SHARES PORTFOLIO NAME AS APPLICABLE)
----------------------------------------------------------------------------------------------------------
GOLDMAN SACHS VIT MID .
CAP VALUE FUND Goldman Sachs Asset Management, L.P.
----------------------------------------------------------------------------------------------------------
32
CONTRACT FEATURES AND BENEFITS
<R>
-----------------------------------------------------------------------------------------------------------
HARTFORD HLS FUNDS -
CLASS IC SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-----------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL The Fund seeks growth of capital. . Hartford Funds Management
APPRECIATION HLS FUND Company,
LLC Sub-adviser: Wellington Management
Company LLP
-----------------------------------------------------------------------------------------------------------
HARTFORD GROWTH The Fund seeks capital appreciation. . Hartford Funds Management
OPPORTUNITIES HLS FUND Company, LLC
Sub-adviser: Wellington Management
Company LLP
</R>
<R>
------------------------------------------------------------------------------------------------------------
HARTFORD HLS FUNDS -
CLASS IC SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL . Hartford Funds Management
APPRECIATION HLS FUND Company,
LLC Sub-adviser: Wellington Management
Company LLP
------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH . Hartford Funds Management
OPPORTUNITIES HLS FUND Company, LLC
Sub-adviser: Wellington Management
Company LLP
</R>
--------------------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
IVY FUNDS VARIABLE
INSURANCE PORTFOLIOS PORTFOLIO (OR SUB-ADVISER(S),
NAME OBJECTIVE AS APPLICABLE)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP ASSET To seek to provide total return. . Waddell & Reed Investment
STRATEGY Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP DIVIDEND To seek to provide total return. . Waddell & Reed Investment
OPPORTUNITIES Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP ENERGY To seek to provide capital growth and appreciation. . Waddell & Reed Investment
Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP GLOBAL To seek to provide capital growth and appreciation. . Waddell & Reed Investment
NATURAL RESOURCES Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP HIGH INCOME To seek to provide total return through a combination . Waddell & Reed Investment
of high current income and capital appreciation. Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP MID CAP To seek to provide growth of capital. . Waddell & Reed Investment
GROWTH Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP SCIENCE To seek to provide growth of capital. . Waddell & Reed Investment
AND TECHNOLOGY Management Company (WRIMCO)
--------------------------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP SMALL CAP To seek to provide growth of capital. . Waddell & Reed Investment
GROWTH Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
IVY FUNDS VARIABLE
INSURANCE PORTFOLIOS PORTFOLIO (OR SUB-ADVISER(S),
NAME AS APPLICABLE)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP ASSET . Waddell & Reed Investment
STRATEGY Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP DIVIDEND . Waddell & Reed Investment
OPPORTUNITIES Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP ENERGY . Waddell & Reed Investment
Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP GLOBAL . Waddell & Reed Investment
NATURAL RESOURCES Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP HIGH INCOME . Waddell & Reed Investment
Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP MID CAP . Waddell & Reed Investment
GROWTH Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP SCIENCE . Waddell & Reed Investment
AND TECHNOLOGY Management Company (WRIMCO)
------------------------------------------------------------------------------------------------------------
IVY FUNDS VIP SMALL CAP . Waddell & Reed Investment
GROWTH Management Company (WRIMCO)
---------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
LAZARD RETIREMENT
SERIES, INC. - SERVICE (OR SUB-ADVISER(S),
SHARES PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
---------------------------------------------------------------------------------------------------------
LAZARD RETIREMENT Seeks long-term capital appreciation. . Lazard Asset Management LLC
EMERGING MARKETS
EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
LAZARD RETIREMENT
SERIES, INC. - SERVICE (OR SUB-ADVISER(S),
SHARES PORTFOLIO NAME AS APPLICABLE)
-----------------------------------------------------------------------------------------------------
LAZARD RETIREMENT . Lazard Asset Management LLC
EMERGING MARKETS
EQUITY PORTFOLIO
<R>
---------------------------------------------------------------------------------------------------------------------------
LEGG MASON PARTNERS
VARIABLE EQUITY TRUST
- SHARE CLASS II INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE The fund seeks capital appreciation. . Legg Mason Partners Fund
AGGRESSIVE GROWTH Advisor, LLC (Investment
PORTFOLIO Manager) Sub-Adviser:
ClearBridge Investments, LLC
---------------------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE The fund seeks dividend income, growth of dividend . Legg Mason Partners Fund
DIVIDEND STRATEGY income and long-term capital appreciation. Advisor, LLC (Investment
PORTFOLIO Manager) Sub-Adviser:
ClearBridge Investments, LLC
---------------------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE The fund seeks long-term appreciation of capital. . Legg Mason Partners Fund
APPRECIATION PORTFOLIO Advisor, LLC (Investment Manager)
. Sub-Adviser: ClearBridge
Investments, LLC
---------------------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE MID Seeks long-term growth of capital. . Legg Mason Partners Fund
CAP CORE PORTFOLIO Advisor, LLC (Investment Manager)
. Sub-Adviser: ClearBridge
Investments, LLC
---------------------------------------------------------------------------------------------------------------------------
QS LEGG MASON DYNAMIC The fund seeks the highest total return (that is, a . Legg Mason Partners Fund
MULTI-STRATEGY VIT combination of income and long-term capital Advisor, LLC (Investment Manager)
PORTFOLIO appreciation) over time consistent with its asset mix. . Sub-Adviser: Legg Mason Global
The fund will seek to reduce volatility as a secondary Asset Allocation, LLC
objective. . Sub-Adviser: Western Asset
Management Company
---------------------------------------------------------------------------------------------------------------------------
</R>
33
CONTRACT FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------------------------------------------
LEGG MASON GLOBAL ASSET
MANAGEMENT
VARIABLE TRUST - SHARE
CLASS II INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------------
LEGG MASON BW ABSOLUTE Positive returns that are independent of market . Legg Mason Partners Fund
RETURN OPPORTUNITIES cycles. Advisor, LLC (Investment Manager)
VIT PORTFOLIO . Sub-Adviser: Brandywine Global
Investment Management, LLC
-------------------------------------------------------------------------------------------------------------------
</R>
<R>
-----------------------------------------------------------------------------------------------------
LEGG MASON GLOBAL ASSET
MANAGEMENT
VARIABLE TRUST - SHARE
CLASS II INVESTMENT MANAGER (OR
PORTFOLIO NAME SUB-ADVISER(S), AS APPLICABLE)
-----------------------------------------------------------------------------------------------------
LEGG MASON BW ABSOLUTE . Legg Mason Partners Fund
RETURN OPPORTUNITIES Advisor, LLC (Investment Manager)
VIT PORTFOLIO . Sub-Adviser: Brandywine Global
Investment Management, LLC
-----------------------------------------------------------------------------------------------------
</R>
LORD ABBETT SERIES INVESTMENT MANAGER
FUND, INC. - CLASS (OR SUB-ADVISER(S),
VC PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------------
LORD ABBETT BOND The fund's investment objective is to seek high . Lord, Abbett & Co. LLC
DEBENTURE PORTFOLIO current income and the opportunity for capital
(VC) appreciation to produce a high total return.
-------------------------------------------------------------------------------------------------------------------
LORD ABBETT SERIES INVESTMENT MANAGER
FUND, INC. - CLASS (OR SUB-ADVISER(S),
VC PORTFOLIO NAME AS APPLICABLE)
-----------------------------------------------------------------------------------------------------
LORD ABBETT BOND . Lord, Abbett & Co. LLC
DEBENTURE PORTFOLIO
(VC)
-----------------------------------------------------------------------------------------------------
<R>
-----------------------------------------------------------------------------------------------
MFS(R)
VARIABLE
INSURANCE
TRUSTS INVESTMENT MANAGER
- SERVICE (OR SUB-ADVISER(S),
CLASS PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
-----------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital .
INTERNATIONAL appreciation. Massachusetts
VALUE Financial
PORTFOLIO Services
Company
-----------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital .
INVESTORS appreciation. Massachusetts
TRUST Financial
SERIES Services
Company
-----------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital .
MASSACHUSETTS appreciation. Massachusetts
INVESTORS Financial
GROWTH Services
STOCK Company
PORTFOLIO
-----------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek total .
UTILITIES return. Massachusetts
SERIES Financial
Services
Company
-----------------------------------------------------------------------------------------------
</R>
NEUBERGER
BERMAN
ADVISERS
MANAGEMENT TRUST
- S CLASS INVESTMENT
SHARES MANAGER (OR
PORTFOLIO SUB-ADVISER(S), AS
NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------
NEUBERGER The fund seeks capital appreciation with an .
BERMAN emphasis on absolute (i.e., positive) returns. Neuberger
ABSOLUTE Berman
RETURN Management
MULTI-MANAGER LLC
PORTFOLIO
------------------------------------------------------------------------------------------
NEUBERGER The fund seeks long-term growth of capital by .
BERMAN investing primarily in common stocks of foreign Neuberger
INTERNATIONAL companies. Berman
EQUITY Management
PORTFOLIO LLC
(Formerly
Neuberger
Berman
International
Portfolio)
------------------------------------------------------------------------------------------
<R>
NORTHERN
LIGHTS
VARIABLE INVESTMENT MANAGER
TRUST (OR SUB-ADVISER(S),
PORTFOLIO AS
NAME OBJECTIVE APPLICABLE
------------------------------------------------------------------------------------------------------------------------------
7TWELVE/TM/ The Portfolio seeks to provide superior risk- . 7Twelve
BALANCED adjusted returns when compared to the bond and Advisors,
PORTFOLIO/(*)/ equity markets in general. LLC
</R>
--------------------------------------------------------------------------------------------------
PIMCO
VARIABLE
INSURANCE
TRUST INVESTMENT MANAGER
- ADVISOR (OR SUB-ADVISER(S),
CLASS PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
--------------------------------------------------------------------------------------------------
PIMCO Seeks maximum real return consistent with . Pacific
COMMODITYREALRETURN(R) prudent investment management. Investment
STRATEGY Management
PORTFOLIO Company
LLC
--------------------------------------------------------------------------------------------------
PIMCO REAL Seeks maximum real return, consistent with . Pacific
RETURN preservation of real capital and prudent Investment
PORTFOLIO investment management. Management
Company
LLC
--------------------------------------------------------------------------------------------------
PIMCO TOTAL Seeks maximum total return, consistent with . Pacific
RETURN preservation of capital and prudent investment Investment
PORTFOLIO management. Management
Company
LLC
--------------------------------------------------------------------------------------------------
<R>
INVESTMENT MANAGER
PROFUNDS (OR SUB-ADVISER(S),
VP PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------
PROFUND VP Seeks investment results, before fees and . ProFund
BIOTECHNOLOGY expenses, that correspond to the performance of Advisors
the Dow Jones U.S. Biotechnology/SM /Index. LLC
------------------------------------------------------------------------------------------
</R>
<R>
PUTNAM
VARIABLE
TRUST - IB INVESTMENT
SHARE MANAGER (OR
CLASS PORTFOLIO SUB-ADVISER(S), AS
NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------------------------
PUTNAM VT Seeks as high a level of current income as Putnam . Putnam
DIVERSIFIED Investment Management, LLC believes is Investment
INCOME consistent with preservation of capital. Management,
FUND LLC
. Putnam
Investments
Limited,
LLC
</R>
34
CONTRACT FEATURES AND BENEFITS
---------------------------------------------------------------------------------------------------------------------------------
T. ROWE
PRICE
EQUITY INVESTMENT MANAGER
SERIES, (OR SUB-ADVISER(S),
INC. PORTFOLIO AS
NAME OBJECTIVE APPLICABLE)
---------------------------------------------------------------------------------------------------------------------------------
T. ROWE Seeks long-term capital appreciation through . T. Rowe
PRICE investment in companies expected to benefit from Price
HEALTH SCIENCES changes in the health care, medicine or life Associates,
PORTFOLIO sciences fields. Inc.
- II
---------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
VAN ECK VIP TRUST - S (OR SUB-ADVISER(S),
CLASS PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------------
VAN ECK VIP GLOBAL HARD Seeks long-term capital appreciation by investing . Van Eck Associates Corporation
ASSETS FUND primarily in hard asset securities. Income is a
secondary consideration.
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
VAN ECK VIP TRUST - S (OR SUB-ADVISER(S),
CLASS PORTFOLIO NAME AS APPLICABLE)
-------------------------------------------------------------------------------------------------------
VAN ECK VIP GLOBAL HARD . Van Eck Associates Corporation
ASSETS FUND
-------------------------------------------------------------------------------------------------------
(1)This variable investment option is also available as a Protected Benefit
account variable investment option should you decide to fund your Guaranteed
benefits. For more information, please see "What are your investment options
under the contract?" earlier in this section.
(2)The AXA Ultra Conservative Strategy investment option is part of the asset
transfer program. You may not directly allocate a contribution to or request
a transfer of account value into this investment option.
<R>
(*)7Twelve(TM) is a registered trademark belonging to Craig L. Israelsen.
</R>
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS
CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN
COPIES OF TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-789-7771.
35
CONTRACT FEATURES AND BENEFITS
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus. Any amounts allocated to the guaranteed interest
option will not be included in your Protected Benefit account value.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1)the minimum interest rate guaranteed over the life of the contract,
(2)the yearly guaranteed interest rate for the calendar year, and
(3)the current interest rate.
We set current interest rates periodically, based on our discretion and
according to our procedures that we have in effect at the time. We reserve the
right to change these procedures. All interest rates are effective annual
rates, but before the deduction of annual administrative charges.
Your lifetime minimum rate is 1.00%. The data page for your contract shows the
lifetime minimum rate. The minimum yearly rate will never be less than the
lifetime minimum rate. The minimum yearly rate for 2015 is 1.00%. Current
interest rates will never be less than the yearly guaranteed interest rate.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest option.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfers from the guaranteed
interest option.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. The account for special dollar cost
averaging is part of our general account. We pay interest at guaranteed rates
in this account for specified time periods. We will credit interest to the
amounts that you have in the account for special dollar cost averaging every
day. We set the interest rates periodically, based on our discretion and
according to the procedures that we have. We reserve the right to change these
procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Dollar cost averaging" later in
this section for rules and restrictions that apply to the account for special
dollar cost averaging.
ALLOCATING YOUR CONTRIBUTIONS
<R>
You may allocate your contributions to the Investment account variable
investment options, the guaranteed interest option or the Special DCA program.
If you wish to fund one or more of the Guaranteed benefits you elected, you may
allocate contributions to the Protected Benefit account variable investment
options or the Special DCA program. Also, we limit the number of variable
investment options which you may select. In addition, we may at any time
exercise our right to limit or terminate transfers into any of the variable
investment options.
</R>
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in the Special DCA program designated for future transfers
to the Protected Benefit account variable investment options will fund your
Guaranteed benefits. These amounts will be used to calculate your Guaranteed
benefit bases and will become part of your Protected Benefit account value.
For example:
You purchase a Series E contract with an initial contribution of $100,000 and
have the GMIB and the Highest Anniversary Value death benefit. You allocate
$60,000 to the Protected Benefit account variable investment options and
$40,000 to the Investment account variable investment options. The $60,000 will
be included in your Protected Benefit account value and will be used to
calculate your GMIB and Highest Anniversary Value benefit bases. $40,000 will
be included in your Investment account value.
Allocations must be whole percentages and you may change your allocations at
any time. No more than 25% of any contribution to the contract may be allocated
to the guaranteed interest option. The total of your allocations into all
available investment options must equal 100%. We reserve the right to
discontinue, and/or place additional limitations on, contributions and
transfers to any of the variable investment options, including the Protected
Benefit account variable investment options. We also reserve the right to
discontinue acceptance of contributions into the contract. Please see "How you
can purchase and contribute to your contract" and the table in Appendix IX for
additional information regarding certain limitations on contributions that may
apply to your contract.
<R>
It is important to note that the contract is between you and AXA Equitable. The
contract is not an investment advisory account, and AXA Equitable is not
providing any investment advice or managing the allocations under your
contract. In the absence of a specific written arrangement to the contrary,
you, as the owner of the contract, have the sole authority to make investment
allocations and other decisions under the contract. (Your investment
allocations may be subject to the ATP if you have the GMIB, as described in
''Asset transfer program (''ATP'')'' later in this Prospectus.) If your
financial professional is with AXA Advisors, he or she is acting as a
broker-dealer registered representative, and is not authorized to act as an
investment advisor or to manage the allocations under your contract.
</R>
We may offer an optional rebalancing program for amounts allocated to your
Investment account variable investment options and the guaranteed interest
option. For more information, see "Rebalancing among your Investment account
variable investment options and guaranteed interest option" in "Transferring
your money among investment options" later in this Prospectus.
We do not offer an optional rebalancing program for amounts allocated to your
Protected Benefit account variable investment options. You can rebalance your
Protected Benefit account value by submitting a one-time request to rebalance.
See "Rebalancing among your Protected Benefit account variable investment
options" in "Transferring your money among investment options" later in this
Prospectus.
36
CONTRACT FEATURES AND BENEFITS
For contracts with the GMIB, you cannot make a contribution or transfer into
the AXA Ultra Conservative Strategy investment option. On a limited basis, you
can initiate a complete transfer out of the AXA Ultra Conservative Strategy
investment option up to your contract date anniversary following age 85,
subject to certain restrictions. We refer to this as the ATP exit option.
Please see ''Asset transfer program (''ATP'')'' later in this section.
Transfers into or out of the AXA Ultra Conservative Strategy investment option
do not require new allocation instructions.
ALLOCATION INSTRUCTION CHANGES. You may change your instructions for
allocations of future contributions.
TRANSFERS. Once you allocate amounts to the Protected Benefit account variable
investment options, such amounts may be transferred among the Protected Benefit
account variable investment options, but may not be transferred to the
Investment account variable investment options or the guaranteed interest
option. In addition, we may at any time exercise our right to limit or
terminate transfers into any of the variable investment options. See
"Transferring your account value" in "Transferring your money among investment
options."
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. You may only participate
in one program at a time. Each program allows you to gradually allocate amounts
to available investment options by periodically transferring approximately the
same dollar amount to the investment options you select. Regular allocations to
the variable investment options will cause you to purchase more units if the
unit value is low and fewer units if the unit value is high. Therefore, you may
get a lower average cost per unit over the long term.
All amounts in a dollar cost averaging program will be transferred at the
completion of the time period you select. Currently, our Special DCA program
time periods do not extend beyond 12 months. This plan of investing does not
guarantee that you will earn a profit or be protected against losses.
--------------------------------------------------------------------------------
UNITS MEASURE YOUR VALUE IN EACH VARIABLE INVESTMENT OPTION.
--------------------------------------------------------------------------------
We offer the following dollar cost averaging programs in the Retirement
Cornerstone(R) Series E contract:
.. Special dollar cost averaging;
.. General dollar cost averaging; and
.. Investment simplifier.
The only dollar cost averaging program that is available to fund your
Guaranteed benefits is the special dollar cost averaging (the "Special DCA
program"). The Special DCA program allows you to gradually fund your Protected
Benefit account value through systematic transfers to the Protected Benefit
account variable investment options. Amounts allocated to the Special DCA
program that are designated for future transfers to the Protected Benefit
account variable investment options are included in the benefit bases for your
Guaranteed benefits. Also, you may make systematic transfers to the Investment
account variable investment options and the guaranteed interest option. Only
new contributions may be allocated to the Special DCA program. For information
on how the Special DCA program may affect certain Guaranteed benefits, see
"Guaranteed minimum income benefit" and "Guaranteed minimum death benefits"
later in this section.
General dollar cost averaging and Investment simplifier, on the other hand, can
only be used for systematic transfers to your Investment account variable
investment options. Our Investment simplifier program is available for
scheduled transfers from the guaranteed interest option to the Investment
account variable investment options. Our General dollar cost averaging program
is available for scheduled transfers from the EQ/Money Market variable
investment option to the Investment account variable investment options. Below,
we provide detail regarding each of the programs.
Generally, you may not elect both a dollar cost averaging program and a
rebalancing option. The only exception is if you elect our Investment
simplifier program with Option I under our rebalancing programs, which does not
rebalance amounts in the guaranteed interest option. For more information on
our rebalancing programs, see "Rebalancing among your Investment account
variable investment options and guaranteed interest option" in "Transferring
your money among investment options."
We do not deduct a transfer charge for any transfer made in connection with our
dollar cost averaging programs. We may, at any time, exercise our right to
terminate transfers to any of the variable investment options and to limit the
number of variable investment options which you may elect. Not all dollar cost
averaging programs are available in all states. For a state-by-state
description of all material variations of this contract, including information
on the availability of our dollar cost averaging programs in your state, see
Appendix V later in this Prospectus.
OUR SPECIAL DCA PROGRAM. Under the special dollar cost averaging program, you
may dollar cost average from the account for special dollar cost averaging,
which is part of the general account. We credit daily interest, which will
never be less than 1% or the guaranteed lifetime minimum rate for the
guaranteed interest option, whichever is greater, to amounts allocated to this
account. Currently, the guaranteed lifetime minimum rate is 1.00%. We guarantee
to pay the current interest rate that is in effect on the date that your
contribution is allocated to this account. That interest rate will apply to
that contribution as long as it remains in the account for special dollar cost
averaging. The guaranteed interest rate for the time period that you select
will be shown in your contract for your initial contribution. We set the
interest rates periodically, based on our discretion and according to
procedures that we have. We reserve the right to change these procedures.
We will transfer amounts from the account for special dollar cost averaging
into the investment options you designate over an available time period that
you select. If the special dollar cost averaging program is selected at the
time of the application to purchase the contract, a 60 day rate lock will apply
from the date of application. Any contribution(s) received during this 60 day
period will be credited with the interest rate offered on the date of
application for the duration of the special dollar cost averaging time period.
Any contribution(s) received after the 60 day rate lock period has ended will
be credited with the then current interest rate for the duration of the time
period selected. Once the time period you selected has ended, you may select
another time period for future contributions. At that time, you may also select
a different allocation for transfers to the investment options, or, if you
wish, we will continue to use the allocation that you previously made.
37
CONTRACT FEATURES AND BENEFITS
-------------------
Under the Special DCA program, the following applies:
.. Initial contributions to the Special DCA program must be at least $2,000;
subsequent contributions to an existing Special DCA program must be at
least $250;
<R>
.. Subsequent contributions to an existing program do not extend the time
period of the program;
</R>
.. Contributions into the Special DCA program must be new contributions; you
may not make transfers from amounts allocated to other investment options
to initiate the Special DCA program;
.. We offer time periods of 3, 6 or 12 months. We may also offer other time
periods. You may only have one time period in effect at any time and once
you select a time period, you may not change it;
<R>
.. You can enroll in a Special DCA program on your contract application or at
any time you make a new contribution. A program will become effective on
the date we receive your first contribution directing us to allocate funds
to the account for special dollar cost averaging. The date we receive your
initial contribution will also be the date of the first transfer to the
other variable investment options in accordance with your allocation
instructions for the program. Each subsequent transfer date for the time
period selected will be one month from the date of the previous transfer.
If a transfer date falls on a non-business day, the transfer will be made
on the next business day. We will transfer all amounts by the end of the
chosen time period for your program.
For example, assume you enroll in a 3-month Special DCA program. On the date
we receive your initial contribution (say, $60,000) to the program, your
program becomes effective and the first transfer of $20,000 is made
immediately in accordance with your program's allocation instructions. The
second transfer of $20,000 will be made one month after your first
contribution and the third and final transfer of $20,000 will be made two
months after your first contribution;
.. The only transfers that will be made from your program are your regularly
scheduled transfers to the variable investment options. If you request to
transfer any other amounts from your program, we will transfer all of the
value that you have remaining in the account to the investment options
according to the allocation percentages for the Special DCA program that we
have on file for you, and your program will terminate;
</R>
.. Contributions to the Special DCA program may be designated for the
Protected Benefit account variable investment options, the Investment
account variable investment options and/or the guaranteed interest option,
subject to the following:
-- If you want to take advantage of the Special DCA program, 100% of your
contribution must be allocated to the account for special dollar cost
averaging. In other words, your contribution cannot be split between the
Special DCA program and any other investment options available under the
contract.
-- Up to 25% of your Special DCA program may be designated for the
guaranteed interest option, even if such a transfer would result in more
than 25% of your Total account value being allocated to the guaranteed
interest option. See "Transferring your account value" in "Transferring
your money among investment options" later in this Prospectus;
.. Your instructions for the program must match your allocation instructions
on file on the day the program is established. If you change your
allocation instructions on file while the Special DCA program is in effect,
the ratio of amounts allocated to the Protected Benefit account to amounts
allocated to the Investment account will not change. However, amounts will
be allocated within each account according to your new instructions;
.. Your Guaranteed benefit base(s) will be increased to reflect any
contribution to the Special DCA program that you have instructed us to
transfer to the Protected Benefit account variable investment options. The
Annual Roll-up rate (or Deferral Roll-up rate, if applicable) in effect on
your contract will apply immediately to any contribution that is designated
to be transferred to the Protected Benefit account variable investment
options.
.. IF WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS AND TRANSFERS INTO THE PROTECTED
BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS, AND YOUR SPECIAL DCA PROGRAM
HAS TRANSFERS SCHEDULED TO THE PROTECTED BENEFIT ACCOUNT VARIABLE
INVESTMENT OPTIONS, THE PROGRAM WILL CONTINUE FOR ITS DURATION. HOWEVER,
SUBSEQUENT CONTRIBUTIONS TO ANY PROTECTED BENEFIT ACCOUNT VARIABLE
INVESTMENT OPTIONS UNDER THE SPECIAL DCA PROGRAM WILL NOT BE PERMITTED;
<R>
</R>
.. Except for withdrawals made under our Automatic RMD withdrawal service or
our other automated withdrawal programs (systematic withdrawals and
substantially equal withdrawals), or for the assessment of contract
charges, any unscheduled partial withdrawal from your Special DCA program
will terminate your Special DCA program. Any amounts remaining in the
account after the program terminates will be transferred to the destination
investment options according to your Special DCA program allocation
instructions. Any withdrawal which results in a reduction in the Special
DCA program amount previously included in your Guaranteed benefit bases
will reduce the Guaranteed benefit bases as described later in this
Prospectus. See "How withdrawals affect your Guaranteed benefits" later in
this section;
<R>
.. For contracts with the GMIB, ATP transfers are not taken out of amounts
allocated to the Special DCA program. Please see ''Asset transfer program
(''ATP'')'' later in this section;
</R>
.. Generally, you may not elect both a dollar cost averaging program and a
rebalancing option. The only exception is if you elect our Investment
simplifier program with Option I under our rebalancing programs, which does
not rebalance amounts in the guaranteed interest option. See "Rebalancing
among your Investment account variable investment options and guaranteed
interest option" in "Transferring your money among investment options"
later in this Prospectus to learn more about rebalancing;
38
CONTRACT FEATURES AND BENEFITS
.. All of the dollar cost averaging programs available under your Retirement
Cornerstone(R) Series E contracts can be selected if you enrolled in our
Systematic transfer program. However, no amounts will be transferred out of
the Special DCA program as part of the Systematic transfer program;
.. The Special DCA program may not be in effect at the same time as a general
dollar cost averaging program;
.. The only dollar cost averaging program available to fund your Guaranteed
benefits is the Special DCA program;
.. You may cancel your participation at any time. If you terminate your
Special DCA program, we will allocate any remaining amounts in your Special
DCA program pursuant to your program allocations on file;
.. If you are dollar cost averaging into the Protected Benefit account
variable investment options when you decide to drop all Guaranteed benefits
("post-funding drop"), we will default future transfers designated for the
Protected Benefit account variable investment options to the corresponding
Investment account variable investment options that invest in the same
underlying Portfolios. Also, you can cancel your Special DCA program and
accelerate all transfers to the corresponding Investment account variable
investment options. See "Dropping or changing your Guaranteed benefits"
later in this section and Appendix I for more information; and
.. We may offer these programs in the future with transfers on a different
basis. Your financial professional can provide information in the time
periods and interest rates currently available in your state, or you may
contact our processing office.
GENERAL DOLLAR COST AVERAGING PROGRAM
If your value in the EQ/Money Market variable investment option is at least
$5,000, you may choose, at any time, to have a specified dollar amount or
percentage of your value transferred from that option to any of the Investment
account variable investment options. For a state-by-state description of all
material variations of this contract, including information on the availability
of our general dollar cost averaging program, see Appendix V later in this
Prospectus.
You can select to have transfers made on a monthly, quarterly or annual basis.
The transfer date will be the same calendar day of the month as the contract
date, but not later than the 28th day of the month. You can also specify the
number of transfers or instruct us to continue making the transfers until all
amounts in the EQ/Money Market variable investment option have been transferred
out. The minimum amount that we will transfer each time is $250. The
instructions for the program may differ from your allocation instructions on
file.
If, on any transfer date, your value in the EQ/Money Market variable investment
option is equal to or less than the amount you have elected to have
transferred, the entire amount will be transferred. The general dollar cost
averaging program will then end. You may change the transfer amount once each
contract year or cancel this program at any time.
You may not participate in our optional rebalancing programs if you elect the
general dollar cost averaging program.
INVESTMENT SIMPLIFIER
FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the
Investment account variable investment options of your choice. Transfers may be
made on a monthly, quarterly or annual basis. You can specify the number of
transfers or instruct us to continue to make transfers until all available
amounts in the guaranteed interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Also, this option is subject to the guaranteed interest
option transfer limitations described under "Transferring your account value"
in "Transferring your money among investment options" later in this Prospectus.
While the program is running, any transfer that exceeds those limitations will
cause the program to end for that contract year. You will be notified if this
occurs. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, provided the transfer complies with the same
guaranteed interest option transfer limitations referenced above. If the
transfer does not comply with the transfer limitations, the transfer will not
be made and the program will end. You may change the transfer amount once each
contract year or cancel this program at any time.
INTEREST SWEEP OPTION. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the Investment
account variable investment options of your choice. The transfer date will be
the last business day of the month. The amount we will transfer will be the
interest credited to amounts you have in the guaranteed interest option from
the last business day of the prior month to the last business day of the
current month. You must have at least $7,500 in the guaranteed interest option
on the date we receive your election. If the amount in the guaranteed interest
option falls below $7,500 at the beginning of the month, no transfer will be
made that month. We will automatically cancel the interest sweep program if the
amount in the guaranteed interest option is less than $7,500 on the last day of
the month for two months in a row. For the interest sweep option, the first
monthly transfer will occur on the last business day of the month following the
month that we receive your election form at our processing office. Transfers
under the Interest sweep option are subject to the guaranteed interest option
transfer limitations described under "Transferring your account value" in
"Transferring your money among investment options" later in this Prospectus.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the GMIB and annuity payout options. The GMIB is discussed under
''Guaranteed minimum income benefit (''GMIB'')'' below and annuity payout
options are discussed under ''Your annuity payout options'' in ''Accessing your
money'' later in this Prospectus. Annuity purchase factors are based on
interest rates, mortality tables, frequency of payments, the form of annuity
benefit,
39
CONTRACT FEATURES AND BENEFITS
and the owner's (and any joint owner's) age and sex in certain instances. We
may provide more favorable current annuity purchase factors for the annuity
payout options.
GUARANTEED MINIMUM INCOME BENEFIT
This section describes the Guaranteed minimum income benefit, or "GMIB". The
GMIB guarantees, subject to certain restrictions, annual lifetime payments
("Lifetime GMIB payments") that are calculated by applying your GMIB benefit
base to guaranteed annuity purchase factors. You choose whether you want the
option to be paid on a single or joint life basis at the time the GMIB is
exercised.
Lifetime GMIB payments will begin at the earliest of:
(i)the next contract year following the date your Protected Benefit account
value falls to zero (provided the no lapse guarantee is in effect);
(ii)the contract date anniversary following your 95th birthday; or
(iii)your election to exercise the GMIB.
We reserve the right to change the annuity option or make other forms of payout
options available at any time. For a description of payout options, see "Your
annuity payout options" in "Accessing your money" later in this Prospectus.
When you exercise the GMIB, the annual lifetime income that you will receive
will be the greater of (i) your GMIB which is calculated by applying your GMIB
benefit base to GMIB guaranteed annuity purchase factors, or (ii) the income
provided by applying your Protected Benefit account value to our then current
annuity purchase factors or base contract guaranteed annuity purchase factors.
The GMIB benefit base is applied only to the guaranteed annuity purchase
factors under the GMIB in your contract and not to any other guaranteed or
current annuity purchase rates. Your Total account value is never applied to
the guaranteed annuity purchase factors under GMIB. The amount of income you
actually receive will be determined when we receive your request to exercise
the benefit.
If there is no Investment account value remaining when you elect to receive
annual lifetime income, your contract (including its death benefit and any
account or cash values) will terminate and you will receive a new contract for
the annuity payout option. For a discussion of when your payments will begin
and end, see "Exercise of Guaranteed minimum income benefit" below.
BEFORE YOU ELECT THE GMIB, YOU SHOULD CONSIDER THE FACT THAT IT PROVIDES A FORM
OF INSURANCE AND IS BASED ON CONSERVATIVE ACTUARIAL FACTORS. THEREFORE, EVEN IF
YOUR PROTECTED BENEFIT ACCOUNT VALUE IS LESS THAN YOUR BENEFIT BASE, YOU MAY
GENERATE MORE INCOME BY APPLYING YOUR PROTECTED BENEFIT ACCOUNT VALUE TO
CURRENT ANNUITY PURCHASE FACTORS. We will make this comparison for you upon
request.
Surrendering your contract will terminate your GMIB. Please see "Surrendering
your contract to receive its cash value" in "Accessing your money" later in
this Prospectus.
The GMIB also allows you to take certain withdrawals (your "Annual withdrawal
amount") prior to the beginning of your Lifetime GMIB payments without reducing
your GMIB benefit base. Your Annual withdrawal amount for the next contract
year is calculated each contract date anniversary by applying a percentage
("the Annual Roll-up rate") to your GMIB benefit base. Lifetime GMIB payments
and your Annual withdrawal amount are described later in this section. With
respect to your GMIB, it is important to note the following:
.. Once a withdrawal is taken from your Protected Benefit account, you cannot
make additional contributions to your Protected Benefit account, either
directly or through the Special DCA program. You can, however, continue to
make transfers from your Investment account to the Protected Benefit
account variable investment options until such time you make a subsequent
contribution to your Investment account at which point transfers into the
Protected Benefit account will no longer be available. Scheduled transfers
from an existing Special DCA program will continue, even after such
subsequent contribution is made to the Investment account.
.. Withdrawals in excess of your Annual withdrawal amount (an "Excess
withdrawal") can greatly reduce the value of your GMIB. An Excess
withdrawal that reduces your Protected Benefit account value to zero will
cause your GMIB to terminate.
In order to fund your Guaranteed minimum income benefit, you must make
contributions or transfers to the Protected Benefit account.
The GMIB can be elected by owners age 20 - 80 and with all contract types. If
the contract is jointly owned, eligibility for the GMIB will be based on the
older owner's age. The GMIB cannot be added to your contract at a later date,
if you do not elect this benefit at issue.
You can drop your GMIB at any time prior to funding your Protected Benefit
account. If you fund your Protected Benefit account at issue, you can drop your
GMIB if your contract has been in force for at least four contract years. If
you fund your Protected Benefit account after issue, you cannot drop the GMIB
until the later of (i) the contract date anniversary following the date the
Protected Benefit account is funded and (ii) four years from contract issue. It
is important to note that if you decide to drop your GMIB, either before or
after funding your Protected Benefit account, your Guaranteed minimum death
benefit may be affected. Please see "Dropping or changing your Guaranteed
benefits" later in this section and Appendix I for more information.
<R>
When you purchase a contract with the GMIB, you can combine it with one of our
Guaranteed minimum death benefits: (i) the Return of Principal death benefit,
(ii) the Highest Anniversary Value death benefit, or (iii) the "Greater of"
death benefit. The GMIB cannot be combined with the "Greater of" death benefit
if you are age 66 or older, or with the RMD Wealth Guard death benefit at the
time your contract is issued.
</R>
There is an additional charge for the GMIB which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus.
If you have the GMIB and change ownership of the contract, this benefit will
automatically terminate, except under certain circumstances. See "Transfers of
ownership, collateral assignments, loans and borrowing" in "More information,"
later in this Prospectus.
--------------------------------------------------------------------------------
THE GUARANTEED MINIMUM INCOME BENEFIT SHOULD BE REGARDED AS A SAFETY NET ONLY.
--------------------------------------------------------------------------------
GMIB BENEFIT BASE
Your GMIB has a benefit base. We apply a Roll-up rate to your GMIB benefit base
and lock-in the Roll-up rate for your first two contract years. We refer to
this as the GMIB Two-Year Lock. For information on the GMIB Two-Year Lock, see
"New business rates" later in this Prospectus.
40
CONTRACT FEATURES AND BENEFITS
Your GMIB benefit base is not an account value or cash value. The GMIB benefit
base is used to calculate your Lifetime GMIB payments, your Annual withdrawal
amount and the charge for the benefit. Your GMIB benefit base is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through the
Special DCA program; plus
.. Any amounts in the Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options; plus
.. Any transfers to the Protected Benefit account variable investment options;
less
.. A deduction that reflects any "Excess withdrawal" amounts; less
.. A deduction that reflects (a) in the contract year of first funding, the
dollar amount of any RMD from the Protected Benefit account taken through
our RMD program and (b) in the subsequent contract years, the dollar amount
of any RMD from the Protected Benefit account in excess of the Annual
withdrawal amount taken through our RMD program; plus
<R>
.. "Deferral Roll-up amount" OR any "Annual Roll-up amount", minus a deduction
that reflects any withdrawals up to the Annual withdrawal amount. A
withdrawal from your Protected Benefit account in the first contract year
in which the Protected Benefit account is funded is an Excess withdrawal.
Any such withdrawal will reduce (i) your Roll-up to age 85 benefit base on
a pro rata basis and (ii) your Annual Roll-up amount on a dollar-for-dollar
basis, but not less than zero.
--------------------------------------------------------------------------------
EITHER THE DEFERRAL ROLL-UP AMOUNT OR THE ANNUAL ROLL-UP AMOUNT IS CREDITED TO
THE BENEFIT BASES OF YOUR GUARANTEED BENEFITS ON EACH CONTRACT DATE
ANNIVERSARY. THESE AMOUNTS ARE CALCULATED BY TAKING INTO ACCOUNT YOUR GMIB
BENEFIT BASE FROM THE PRECEDING CONTRACT DATE ANNIVERSARY, THE APPLICABLE
ROLL-UP RATE UNDER YOUR CONTRACT, CONTRIBUTIONS AND TRANSFERS TO THE PROTECTED
BENEFIT ACCOUNT DURING THE CONTRACT YEAR AND FOR THE ANNUAL ROLL-UP AMOUNT, ANY
WITHDRAWALS UP TO THE ANNUAL WITHDRAWAL AMOUNT DURING THE CONTRACT YEAR. A
WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT IN THE FIRST CONTRACT YEAR IN
WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED IS AN EXCESS WITHDRAWAL. ANY SUCH
WITHDRAWAL WILL REDUCE (I) YOUR ROLL-UP TO AGE 85 BENEFIT BASE ON A PRO RATA
BASIS AND (II) YOUR ANNUAL ROLL-UP AMOUNT ON A DOLLAR-FOR-DOLLAR BASIS, BUT NOT
LESS THAN ZERO. HOWEVER, A RMD WITHDRAWAL FROM OUR RMD PROGRAM WILL NOT REDUCE
YOUR ANNUAL ROLL-UP AMOUNT IN THE YEAR YOU FIRST FUND YOUR PROTECTED BENEFIT
ACCOUNT. THE CALCULATION OF BOTH THE DEFERRAL ROLL-UP AMOUNT AND THE ANNUAL
ROLL-UP AMOUNT ARE DISCUSSED LATER IN THIS SECTION.
</R>
--------------------------------------------------------------------------------
Beginning in the contract year that follows the contract year in which you fund
your Protected Benefit account, if your Lifetime GMIB payments have not begun,
you can withdraw up to your Annual withdrawal amount without reducing your GMIB
benefit base. However, those same withdrawals will reduce the Annual Roll-up
amount that would otherwise be applied to the GMIB benefit base at the end of
the contract year. Remember that the Roll-up amount applicable under your
contract does not become part of your GMIB benefit base until the end of the
contract year. THE PORTION OF ANY WITHDRAWAL IN EXCESS OF YOUR ANNUAL
WITHDRAWAL AMOUNT WILL REDUCE YOUR GMIB BENEFIT BASE ON A PRO RATA BASIS. SEE
"ANNUAL WITHDRAWAL AMOUNT" LATER IN THIS SECTION.
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your GMIB benefit base will
automatically "reset" to equal the Protected Benefit account value, if higher,
on every contract date anniversary from your contract date, up to the contract
date anniversary following your 95th birthday or contract maturity, if earlier.
See "Annual reset options" later in this section.
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in the Special DCA program designated for the Protected
Benefit account variable investment options will fund your GMIB. These amounts
will be included in your GMIB benefit base and will become part of your
Protected Benefit account value. See "Allocating your contributions" earlier in
this section for more information.
For example:
You purchase a Retirement Cornerstone(R) -- Series E contract with an initial
contribution of $100,000 and allocate $60,000 to the Protected Benefit account
variable investment options and $40,000 to the Investment account variable
investment options. Your initial GMIB benefit base will be $60,000.
You can fund your GMIB benefit by allocating money to the Protected Benefit
account variable investment options (either directly or through the special DCA
program) immediately or at some later date. Allocations to the Protected
Benefit account variable investment options also fund your Guaranteed minimum
death benefit.
Your "Deferral Roll-up amount" and "Annual Roll-up amount" are described below.
Your GMIB benefit base stops "rolling up" on the contract date anniversary
following the owner's (or older joint owner's, if applicable) 95th birthday. If
the annuitant is older than the owner, the contract maturity date (the point at
which Lifetime GMIB payments must begin and Roll-ups will end) will precede the
owner's 95th birthday.
For contracts with non-natural owners, the GMIB benefit base will be based on
the annuitant's (or older joint annuitant's) age.
The amount of the deduction for an "Excess withdrawal" and the deduction for
the Annual withdrawal amount are described under "How withdrawals affect your
Guaranteed benefits" later in this section.
As discussed earlier in this section, your GMIB benefit base is not an account
value or cash value. As a result, the GMIB benefit base cannot be split or
divided in any proportion in connection with a divorce. See "How divorce may
affect your Guaranteed benefits" in "More information."
Please see Appendix III later in this Prospectus for an example of how the GMIB
benefit base is calculated.
You do not have an Annual withdrawal amount in the first contract year in which
you fund your Protected Benefit account. A withdrawal from your Protected
Benefit account in the first contract year in which you fund the Protected
Benefit account will reduce your GMIB benefit base on a pro rata basis.
Beginning with the contract year that follows the contract year in which you
fund your Protected Benefit account, if your Lifetime GMIB payments have not
begun, withdrawals up to your Annual withdrawal amount will not reduce your
GMIB benefit base. The portion of a withdrawal in excess of your Annual
withdrawal amount will reduce your GMIB benefit base on a pro rata basis. See
"Annual withdrawal amount" later in this section.
41
CONTRACT FEATURES AND BENEFITS
For a description of how the ATP exit option will impact your GMIB benefit
base, see ''ATP exit option'' later in this section.
GMIB BENEFIT BASE RESET
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your GMIB benefit base will
automatically "reset" to equal the Protected Benefit account value, if higher,
on every contract date anniversary from the date you first fund your Protected
Benefit account, up to the contract date anniversary following your 95th
birthday or contract maturity, if earlier. You must notify us in writing that
you want to opt out of any automatic reset program. You can send us a written
request to opt back in to an automatic reset program at a later date. We
reserve the right to change or discontinue our reset programs at any time.
If a reset is not applicable on your contract date anniversary, the GMIB
benefit base will not be eligible to be reset again until the next contract
date anniversary. For jointly-owned contracts, eligibility to reset the GMIB
benefit base is based on the age of the older owner. For non-naturally owned
contracts, eligibility is based on the age of the annuitant or older joint
annuitant.
ANNUAL RESET OPTIONS. We will send you a notice in each year that the GMIB
benefit base is eligible to be reset. If you are not enrolled in either the
automatic annual reset program or the automatic customized reset program you
will have 30 days from your contract date anniversary to request a reset. At
any time, you may choose one of the three available reset methods: one-time
reset option, automatic annual reset program or automatic customized reset
program. IF, AT THE TIME OF APPLICATION, YOU DO NOT DECLINE THE AUTOMATIC
ANNUAL RESET PROGRAM OR ELECT A DIFFERENT ANNUAL RESET OPTION, YOU WILL BE
ENROLLED IN THE AUTOMATIC ANNUAL RESET PROGRAM.
--------------------------------------------------------------------------------
ONE-TIME RESET OPTION -- RESETS YOUR GMIB BENEFIT BASE ON A SINGLE CONTRACT
DATE ANNIVERSARY.
AUTOMATIC ANNUAL RESET PROGRAM -- AUTOMATICALLY RESETS YOUR GMIB BENEFIT BASE
ON EACH CONTRACT DATE ANNIVERSARY YOU ARE ELIGIBLE FOR A RESET.
AUTOMATIC CUSTOMIZED RESET PROGRAM -- AUTOMATICALLY RESETS YOUR GMIB BENEFIT
BASE ON EACH CONTRACT DATE ANNIVERSARY, IF ELIGIBLE, FOR THE PERIOD YOU
DESIGNATE.
--------------------------------------------------------------------------------
One-time reset requests will be processed as follows:
(i)if your request is received within 30 days following your contract date
anniversary, your GMIB benefit base will be reset, if eligible, as of that
contract date anniversary. If your GMIB benefit base was not eligible for a
reset on that contract date anniversary, your one-time reset request will be
terminated;
(ii)if your request is received outside the 30 day period following your
contract date anniversary, your GMIB benefit base will be reset, if
eligible, on the next contract date anniversary. If your GMIB benefit base
is not eligible for a reset, your one-time reset request will be terminated.
Once your one-time reset request is terminated, you must submit a new request
in order to reset your benefit base.
If you wish to cancel your elected reset program, your request must be received
by our processing office at least one business day prior to your contract date
anniversary to terminate your reset program for such contract date anniversary.
Cancellation requests received after this window will be applied the following
year. A reset cannot be cancelled after it has occurred. For more information,
see ''How to reach us'' earlier in this Prospectus.
EFFECT OF GMIB BENEFIT BASE RESETS. IT IS IMPORTANT TO NOTE THAT ONCE YOU HAVE
RESET YOUR GMIB BENEFIT BASE, A NEW WAITING PERIOD TO EXERCISE THE GMIB WILL
APPLY FROM THE DATE OF THE RESET. YOUR NEW EXERCISE DATE WILL BE THE TENTH
CONTRACT DATE ANNIVERSARY FOLLOWING THE RESET OR, IF LATER, THE EARLIEST DATE
YOU WOULD HAVE BEEN PERMITTED TO EXERCISE WITHOUT REGARD TO THE RESET, BUT IN
NO EVENT WILL IT BE LATER THAN THE CONTRACT DATE ANNIVERSARY FOLLOWING AGE 95.
See ''Exercise rules'' and ''How withdrawals affect your Guaranteed benefits''
below for more information. Please note that in most cases, resetting your GMIB
benefit base will lengthen the exercise waiting period. Also, even when there
is no additional charge when you reset your Roll-up benefit base, the total
dollar amount charged on future contract date anniversaries may increase as a
result of the reset since the charges may be applied to a higher benefit base
than would have been otherwise applied. See ''Charges and expenses'' later in
this Prospectus.
Owners of traditional IRA or QP contracts should consider the effect of the
waiting period on the requirement to take lifetime required minimum
distributions before resetting the GMIB benefit base. If a QP contract is
converted to an IRA, in a direct rollover, the waiting period for the reset
under the IRA contract will include any time that the QP contract was a funding
vehicle under the plan. If a traditional IRA contract owner or a plan
participant must begin taking lifetime required minimum distributions during
the 10-year waiting period, the individual may want to consider taking the
annual lifetime required minimum distribution calculated for the contract from
another permissible contract or funding vehicle. See ''How withdrawals affect
your Guaranteed benefits'' later in this section and ''Lifetime required
minimum distribution withdrawals'' in ''Accessing your money.'' Also, see
''Required minimum distributions'' under ''Individual retirement arrangements
(IRAs)'' in ''Tax information'' and Appendix II -- ''Purchase considerations
for QP Contracts'' later in this Prospectus.
ANNUAL ROLL-UP RATE
The Annual Roll-up rate is used to calculate your Annual withdrawal amount. It
is also used to calculate amounts credited to your GMIB benefit base for the
contract year in which the first withdrawal is made from your Protected Benefit
account and all subsequent contract years. A different Roll-up rate is used to
calculate amounts credited to your GMIB benefit base in the contract years
prior to the first withdrawal from your Protected Benefit account -- it is
called the "Deferral Roll-up rate". The Deferral Roll-up rate is described
below.
The Annual Roll-up rate is variable and is tied to the Ten-Year Treasuries
Formula Rate described below, but the minimum rate will never be less than 4%
under the GMIB Two-Year Lock or greater than 8% in all contract years. The
Annual Roll-up rate will be set at our discretion, subject to the stated
minimum. We reserve the right, however, to declare an Annual Roll-up rate that
is greater than 8%.
.. TEN-YEAR TREASURIES FORMULA RATE. For each calendar quarter, this rate is
the average of the rates for the ten-year U.S. Treasury notes on each day
for which such rates are reported
42
CONTRACT FEATURES AND BENEFITS
during the 20 calendar days ending on the 15th day of the last month of the
preceding calendar quarter, plus 1.00%, rounded to the nearest 0.10%. U.S.
Treasury rates will be determined from the Federal Reserve Board Constant
Maturity Series or such comparable rates as may be published by the Federal
Reserve Board or generally available reporting services if the Federal
Reserve Board Constant Maturity Series is discontinued.
DEFERRAL ROLL-UP RATE
The Deferral Roll-up rate is only used to calculate amounts credited to your
GMIB benefit base through the end of the contract year that precedes the
contract year in which the first withdrawal is made from your Protected Benefit
account. The Deferral Roll-up rate is never used to calculate your Annual
withdrawal amount under the GMIB.
Beginning with the first contract year in which you fund your Protected Benefit
account, the Roll-up amount credited to your GMIB benefit base at the end of
the contract year (the "Deferral Roll-up amount") will be calculated using the
Deferral Roll-up rate. Once you take a withdrawal from your Protected Benefit
account, the Deferral Roll-up amount will not be credited at the end of the
contract year in which the withdrawal was taken and will terminate for the life
of the contract. Instead, the Annual Roll-up amount will be credited.
The Deferral Roll-up rate is designed as an incentive to defer taking your
first withdrawal from your Protected Benefit account until later contract years
while potentially building greater Guaranteed benefit bases with a higher
Roll-up rate.
The Deferral Roll-up rate is variable and is tied to the Deferral Ten-Year
Treasuries Formula Rate described below. The minimum Deferral Roll-up rate will
never be less than 4% under the GMIB Two-Year Lock or greater than 8% in all
contract years up until the first withdrawal from the Protected Benefit
account. The Deferral Roll-up rate will be set at our discretion, subject to
the stated minimum. We reserve the right, however, to declare a Deferral
Roll-up rate that is greater than 8%.
.. DEFERRAL TEN-YEAR TREASURIES FORMULA RATE. For each calendar quarter, this
rate is the average of the rates for the ten-year U.S. Treasury notes on
each day for which such rates are reported during the 20 calendar days
ending on the 15th day of the last month of the preceding calendar quarter,
plus 2.00%, rounded to the nearest 0.10%. U.S. Treasury rates will be
determined from the Federal Reserve Board Constant Maturity Series or such
comparable rates as may be published by the Federal Reserve Board or
generally available reporting services if the Federal Reserve Board
Constant Maturity Series is discontinued.
As described above, both the Annual Roll-up rate and the Deferral Roll-up rate
will never be less than 4% under the GMIB Two-Year Lock or greater than 8% in
all contract years. Based on the underlying formula rates that are used in
arriving at the two Roll-up rates, it is expected that the Deferral Roll-up
rate will generally be 1.00% greater than the Annual Roll-up rate. However,
this is not guaranteed. In certain interest rate environments, the Deferral
Roll-up rate may not always be 1.00% greater than the Annual Roll-up rate. In
some cases, it may be more or less than 1.00% greater than the Annual Roll-up
rate.
Also, the Lock-in Rate, which is the rate declared for the rate-hold period,
may affect your Deferral Roll-up rate. In some cases, it may be more or less
than 1.00% greater than the Annual Roll-up rate. The Lock-in Rates are
described further in this section under "New business rates."
Examples:
.. Assume the calculation of Ten-Year Treasuries Formula Rate results in an
Annual Roll-up rate of 3.25% and the calculation of the Deferral Ten-Year
Treasuries Formula Rate results in a Deferral Roll-up rate of 4.25%. Since
the Annual Roll-up rate is subject to a guaranteed minimum of 4%, the
Annual Roll-up rate would be 4%. The Deferral Roll-up rate would remain
4.25% having met the same guaranteed minimum.
.. Assume the calculation of Ten-Year Treasuries Formula Rate results in an
Annual Roll-up rate of 7.25% and the calculation of the Deferral Ten-Year
Treasuries Formula Rate results in a Deferral Roll-up rate of 8.25%. Since
the Annual Roll-up rate is below the guaranteed maximum of 8%, the Annual
Roll-up rate would remain 7.25%. The Deferral Roll-up rate would be 8%
because it would have exceeded our guaranteed maximum.
It is important to note that on each contract date anniversary, we will apply
either the Annual Roll-up rate or the Deferral Roll-up rate to your GMIB
benefit base based on whether you have ever taken a withdrawal from the
Protected Benefit account. In statements we provide you, we will show you the
Roll-up amounts under both rate scenarios. Once you take a withdrawal from your
Protected Benefit account, the Deferral Roll-up rate will no longer be shown on
your statements.
NEW BUSINESS RATES. Your initial Annual Roll-up rate will not be less than 4%
under the GMIB Two-Year Lock or, if greater, the Ten-Year Treasuries Formula
Rate. Your initial Deferral Roll-up rate will not be less than 4% under the
GMIB Two-Year Lock or, if greater, the Deferral Ten-Year Treasuries Formula
Rate. Once a contract is issued with the Annual Roll-up and Deferral rates that
are in effect for new business, those rates will be applicable for two contract
years. Any transfers or contributions to the Protected Benefit account variable
investment options, either directly or through the Special DCA program that are
designated for future transfers to the Protected Benefit account variable
investment options during the time period in which new business rates or
Lock-in Rates are in effect will get the new business rates.
<R>
</R>
These are your Annual Roll-up and Deferral Roll-up Lock-in Rates and they will
apply to your contract for two contract years under the GMIB Two-Year Lock.
Thereafter, Renewal rates will apply.
RENEWAL RATES. After the Lock-in Rates are no longer in effect, a new Annual
Roll-up rate will apply to your contract. A new Deferral Roll-up rate will also
apply provided you have never taken a withdrawal from your Protected Benefit
account. These "Renewal rates" will never be less than 4% under the GMIB
Two-Year Lock or, if greater, the underlying Ten-Year Treasuries Formula Rate
(for the Annual Roll-up rate) and Deferral Ten-Year Treasuries Formula Rate
(for the Deferral Roll-up rate).
These Renewal rates may be more than or less than, or equal to, your initial
Annual Roll-up rate and Deferral Roll-up rate. We also reserve the right to set
new Lock-in Rates that are higher than Renewal rates.
43
CONTRACT FEATURES AND BENEFITS
Any transfers or contributions to the Protected Benefit account variable
investment options, either directly or through the Special DCA program and any
contribution amounts in the Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options, after
the first day of any contract year will get the Annual Roll-up rate and
Deferral Roll-up rate in effect as of the most recent contract date anniversary.
<R>
NOTIFICATION OF ANNUAL ROLL-UP RATE AND RENEWAL RATES. If you have the GMIB,
your contract will indicate the Annual Roll-up rate and Deferral Roll-up rate
that are in effect. These rates may not be the same rates that were illustrated
prior to your purchase of the contract. If you choose to fund the GMIB after
the new business rates have expired, you can contact a Customer Service
Representative or visit www.axa.com to find out the current Annual Roll-up rate
and if applicable, the Deferral Roll-up rate for your contract. In addition,
your annual statement of contract values will show your current Renewal rates,
as well as the previous year's Annual Roll-up rate or Deferral Roll-up rate
(whichever applies) for your contract. This information can also be found
online, through your Online Access Account.
</R>
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THE ANNUAL ROLL-UP RATE IS USED TO CALCULATE YOUR ANNUAL WITHDRAWAL AMOUNT AND
THE CREDIT TO YOUR GMIB BENEFIT BASE IF YOU HAVE TAKEN A WITHDRAWAL FROM YOUR
PROTECTED BENEFIT ACCOUNT. THE DEFERRAL ROLL-UP RATE IS USED TO CALCULATE THE
CREDIT TO YOUR GMIB BENEFIT BASE UNTIL A WITHDRAWAL IS MADE.
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ANNUAL ROLL-UP AMOUNT AND ANNUAL GMIB BENEFIT BASE ADJUSTMENT
The Annual Roll-up amount is an amount credited to your GMIB benefit base on
each contract date anniversary if there has ever been a withdrawal from your
Protected Benefit account. The Annual Roll-up amount adjustment to your GMIB
benefit base is a primary way to increase the value of your GMIB benefit base.
This amount is calculated by taking into account your GMIB benefit base from
the preceding contract date anniversary, the Annual Roll-up rate under your
contract, contributions and transfers to the Protected Benefit account during
the contract year and any withdrawals up to the Annual withdrawal amount during
the contract year. A withdrawal from your Protected Benefit account in the
first contract year in which the Protected Benefit account is funded is an
Excess withdrawal. Any such withdrawal will reduce (i) your GMIB benefit base
on a pro rata basis and (ii) your Annual Roll-up amount on a dollar-for-dollar
basis, but not less than zero. However, a RMD withdrawal from our RMD program
will not reduce your Annual Roll-up amount in the year you first fund your
Protected Benefit account.
Your Annual Roll-up amount at the end of the contract year is calculated, as
follows:
.. Your GMIB benefit base on the preceding contract date anniversary,
multiplied by:
.. The Annual Roll-up rate that was in effect on the first day of the contract
year; less
.. Any withdrawals up to the Annual withdrawal amount resulting in a
dollar-for-dollar reduction of the Annual Roll-up amount; plus
.. A pro-rated Roll-up amount for any contribution to the Protected Benefit
account variable investment options during the contract year; plus
.. A pro-rated Roll-up amount for any transfer from the Investment account
and/or Guaranteed interest option to the Protected Benefit account variable
investment options during the contract year; plus
.. A pro-rated Roll-up amount for any contribution amounts made during the
contract year to the Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options
during the contract year.
A PRO-RATED ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE CONTRACT YEAR
AFTER THE CONTRIBUTION OR TRANSFER. (SINCE THERE IS NO ANNUAL WITHDRAWAL AMOUNT
IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED,
ANY WITHDRAWALS IN THAT YEAR OTHER THAN RMD WITHDRAWALS FROM OUR RMD PROGRAM
RESULT IN A DOLLAR-FOR-DOLLAR REDUCTION OF THE ANNUAL ROLL-UP AMOUNT (BUT NOT
LESS THAN ZERO).)
DEFERRAL ROLL-UP AMOUNT AND ANNUAL GMIB BENEFIT BASE ADJUSTMENT
The Deferral Roll-up amount is an amount credited to your GMIB benefit base on
each contract date anniversary provided you have never taken a withdrawal from
your Protected Benefit account. The amount is calculated by taking into account
your GMIB benefit base from the preceding contract date anniversary, the
applicable Deferral Roll-up rate under your contract and contributions and
transfers to the Protected Benefit account during the contract year. The
Deferral Roll-up amount adjustment to your GMIB benefit base is a primary way
to increase the value of your GMIB benefit base. Your Deferral Roll-up amount
at the end of the contract year is calculated as follows:
.. your GMIB benefit base on the preceding contract date anniversary,
multiplied by:
.. the Deferral Roll-up rate that was in effect on the first day of the
contract year; plus
.. a pro-rated Deferral Roll-up amount for any contribution to the Protected
Benefit account variable investment options during the contract year; plus
.. a pro-rated Deferral Roll-up amount for any transfer from the Investment
account and/or Guaranteed interest option to the Protected Benefit account
variable investment options during the contract year; plus
.. a pro-rated Deferral Roll-up amount for any contribution amounts made
during the contract year to the Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options during the contract year.
A PRO-RATED DEFERRAL ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE
CONTRACT YEAR AFTER THE CONTRIBUTION OR TRANSFER.
-------------------
THE GMIB BENEFIT BASE STOPS ROLLING UP ON THE CONTRACT DATE ANNIVERSARY
FOLLOWING THE OWNER'S (OR OLDER JOINT OWNER, IF APPLICABLE) 95TH BIRTHDAY OR,
IF EARLIER, AT CONTRACT MATURITY, OR THE OWNER'S (OR OLDER JOINT OWNER'S, IF
APPLICABLE) DEATH.
ANNUAL WITHDRAWAL AMOUNT
(APPLICABLE PRIOR TO THE BEGINNING OF LIFETIME GMIB PAYMENTS)
Your Annual withdrawal amount for the next contract year is calculated on each
contract date anniversary beginning with the contract year that
44
CONTRACT FEATURES AND BENEFITS
follows the contract year in which the Protected Benefit account is first
funded, and is equal to:
.. the Annual Roll-up rate in effect at the time, multiplied by;
.. the GMIB benefit base as of the most recent contract date anniversary.
Beginning with the contract year that follows the contract year in which you
fund your Protected Benefit account, if your Lifetime GMIB payments have not
begun, you may withdraw up to your Annual withdrawal amount without reducing
your GMIB benefit base and adversely affecting your Lifetime GMIB payments. IT
IS IMPORTANT TO NOTE THAT WITHDRAWALS IN EXCESS OF YOUR ANNUAL WITHDRAWAL
AMOUNT WILL HAVE A HARMFUL EFFECT ON BOTH YOUR GMIB BENEFIT BASE AND LIFETIME
GMIB PAYMENTS. AN EXCESS WITHDRAWAL THAT REDUCES YOUR PROTECTED BENEFIT ACCOUNT
TO ZERO WILL CAUSE YOUR GMIB TO TERMINATE.
You do not have an Annual withdrawal amount in the contract year in which you
fund the Protected Benefit account. A WITHDRAWAL FROM YOUR PROTECTED BENEFIT
ACCOUNT IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS
FUNDED IS AN EXCESS WITHDRAWAL AND WILL REDUCE (I) YOUR GMIB BENEFIT BASE ON A
PRO RATA BASIS AND (II) YOUR ANNUAL ROLL-UP AMOUNT ON A DOLLAR-FOR-DOLLAR
BASIS. Beginning with the contract year that follows the contract year in which
your Protected Benefit account was first funded, the portion of a withdrawal
from your Protected Benefit account in excess of your Annual withdrawal amount,
and all subsequent withdrawals from your Protected Benefit account in that
contract year, will always reduce your GMIB benefit base on a pro rata basis.
This is referred to as an "Excess withdrawal". The reduction of your GMIB
benefit base on a pro rata basis means that we calculate the percentage of your
current Protected Benefit account value that is being withdrawn and we reduce
your current GMIB benefit base by the same percentage. A pro rata withdrawal
will have a significant adverse effect on your benefit base in cases where the
Protected Benefit account value is less than the benefit base. For an example
of how a pro rata reduction works, see "How withdrawals affect your Guaranteed
benefits" later in this section and, for examples of how withdrawals affect
your Annual withdrawal amount, see Appendix VII later in this Prospectus.
Your Annual withdrawal amount is always calculated using the Annual Roll-up
rate in effect for your contract at the beginning of the contract year. The
Deferral Roll-up rate, described above, is never used for the purposes of
calculating the Annual withdrawal amount. Your Annual withdrawal amounts are
not cumulative. If you withdraw less than your Annual withdrawal amount in any
contract year, you may not add the remainder to your Annual withdrawal amount
in any subsequent year. Your Annual withdrawal amount may be more than or less
than your Lifetime GMIB payments. Please refer to the beginning of this section
for more information about "Lifetime GMIB payments".
EXAMPLE OF HOW YOUR ANNUAL WITHDRAWAL AMOUNT; ANNUAL ROLL-UP AMOUNT; DEFERRAL
ROLL-UP AMOUNT AND ANNUAL GMIB BENEFIT BASE ADJUSTMENT; AND THE EFFECT OF AN
EXCESS WITHDRAWAL IS CALCULATED.
ANNUAL WITHDRAWAL AMOUNT. Assume you make a contribution of $200,000 and
allocate $100,000 to your Protected Benefit account variable investment options
and $100,000 to your Investment account variable investment options at issue.
At the beginning of contract year three, assume you transfer $5,000 to your
Protected Benefit account variable investment options. Also assume that your
Annual Roll-up rate is 4% and your Deferral rate is 5% in each contract year.
Accordingly, your GMIB benefit base on your third contract date anniversary is
$121,012.
The GMIB benefit base of $121,012 is calculated as follows:
You start with $100,000 allocated to the Protected Benefit account variable
investment options. This amount is your initial GMIB benefit base.
-- The first Deferral Roll-up amount increases your GMIB benefit base to
$105,000. ($100,000 + $5,000)
$100,000 (GMIB BENEFIT BASE) X 5% (DEFERRAL ROLL-UP RATE) = $5,000
(DEFERRAL ROLL-UP AMOUNT)
-- The second Deferral Roll-up amount increases your GMIB benefit base to
$110,250. ($105,000 + $5,250)
$105,000 (GMIB BENEFIT BASE) X 5% (DEFERRAL ROLL-UP RATE) = $5,250
(DEFERRAL ROLL-UP AMOUNT)
-- Your $5,000 transfer from the Investment account at the beginning of
contract year three increases your GMIB benefit base to $115,250.
($110,250 + $5,000)
-- The third Deferral Roll-up amount increases your GMIB benefit base to
$121,012. ($115,250 + $5,762)
$115,250 (GMIB BENEFIT BASE) X 5% (DEFERRAL ROLL-UP RATE) = $5,762
(DEFERRAL ROLL-UP AMOUNT)
Your Annual withdrawal amount as of the beginning of contract year four is
equal to $4,840, calculated as follows:
.. $121,012 (GMIB benefit base as of your most recent contract date
anniversary) MULTIPLIED BY:
.. 4% (your current Annual Roll-up rate) EQUALS:
.. $4,840
Please note that your Annual Roll-up rate is used to calculate your Annual
withdrawal amount. The Deferral Roll-up rate is never used to calculate your
Annual withdrawal amount.
ANNUAL ROLL-UP AMOUNT AND ANNUAL BENEFIT BASE ADJUSTMENT. Further assume that
during contract year four (on the 146th day of the contract year), you make a
contribution of $10,000 to your Protected Benefit account variable investment
options, making your current GMIB benefit base after the contribution $131,012.
Also assume that you withdraw your full Annual withdrawal amount of $4,840
during contract year four.
On your fourth contract date anniversary, your Annual Roll-up amount is equal
to $240, calculated as follows:
.. 4% (YOUR CURRENT ANNUAL ROLL-UP RATE) MULTIPLIED BY
.. $121,012 (YOUR GMIB BENEFIT BASE AS OF YOUR MOST RECENT CONTRACT DATE
ANNIVERSARY) MINUS
.. $4,840 (the Annual withdrawal amount, which was withdrawn); PLUS
45
CONTRACT FEATURES AND BENEFITS
.. $240 (THE DAILY PRO-RATED ROLL-UP AMOUNT FOR THE CONTRIBUTION: $10,000 X 4%
X 219/365* = $240)
.. EQUALS $240
-------------------
* THIS FRACTION REPRESENTS THE NUMBER OF DAYS IN A 365-DAY CONTRACT YEAR THAT
THE CONTRIBUTION WOULD HAVE RECEIVED CREDIT TOWARD THE ROLL-UP AMOUNT.
Please note that the withdrawal in contract year four terminated the Deferral
Roll-up rate. Therefore on the fourth contract date anniversary, the Annual
Roll-up rate was used to calculate the Annual Roll-up amount.
Your adjusted GMIB benefit base is $131,252.
EFFECT OF AN EXCESS WITHDRAWAL. In contract year four, assume instead that you
make a withdrawal of $7,840. This would result in
an Excess withdrawal of $3,000 because your Annual withdrawal amount is only
$4,840 ($7,840 - $4,840 = $3,000). Further, assume that your Protected Benefit
account value at the time of this withdrawal is $100,000. As described earlier
in this section, Excess withdrawals reduce your GMIB benefit base on a pro-rata
basis. Accordingly, your GMIB benefit base is reduced by $3,930 at the time of
the withdrawal, calculated as follows:
.. $131,012 (YOUR CURRENT GMIB BENEFIT BASE: $121,012 + $10,000) MULTIPLIED BY
.. 3% (THE PERCENTAGE OF YOUR CURRENT PROTECTED BENEFIT ACCOUNT VALUE THAT WAS
WITHDRAWN IN EXCESS OF YOUR ANNUAL WITHDRAWAL AMOUNT) EQUALS
.. $3,930.
On your fourth contract date anniversary, your adjusted GMIB benefit base is
$127,322, calculated as follows:
.. $127,082 (YOUR GMIB BENEFIT BASE ADJUSTED TO REFLECT THE EXCESS WITHDRAWAL:
$131,012 - $3,930 = $127,082) PLUS
.. $240 (YOUR ANNUAL ROLL-UP AMOUNT) EQUALS
.. $127,322.
Please note that the Excess withdrawal in contract year four terminated the no
lapse guarantee. Please see the following section below for more information.
See Appendix VII later in this Prospectus for more examples of how withdrawals
affect your Guaranteed benefit bases and Annual withdrawal amount.
GMIB "NO LAPSE GUARANTEE"
In general, if your Protected Benefit account value falls to zero (except as
discussed below), the GMIB will be exercised automatically, based on the
owner's (or older joint owner's, if applicable) current age and GMIB benefit
base as follows:
.. You will be issued a life only supplementary contract based on a single
life. Upon exercise, your Guaranteed minimum death benefit will be
terminated.
.. You will have 30 days from when we notify you to change the payout option
and/or the payment frequency.
Poor investment performance of the Protected Benefit account variable
investment options may contribute to your Protected Benefit account value
falling to zero.
The no-lapse guarantee will terminate under the following circumstances:
.. If your aggregate withdrawals from your Protected Benefit account in any
contract year following the contract year in which you first fund your
Protected Benefit account exceed your Annual withdrawal amount.
.. Upon the contract date anniversary following the owner (or older joint
owner, if applicable) reaching age 95, or, if earlier, the contract
maturity date.
If you were enrolled in the Maximum Payment Plan or Customized Payment Plan,
the frequency of your Lifetime GMIB payments will be the same based on the
payment frequency you elected. Your Lifetime GMIB payment amount may be less
than your Annual withdrawal amount in the prior contract year.
If you were not enrolled in the Maximum Payment Plan or Customized Payment
Plan, you will begin receiving your Lifetime GMIB payments annually one
calendar year after the date that the Protected Benefit account value fell to
zero. Your Lifetime GMIB payment amount may be less than your Annual withdrawal
amount in the prior contract year.
EXERCISE OF GMIB. On each contract date anniversary that you are eligible to
exercise the GMIB, we will send you an eligibility notice illustrating how much
income could be provided as of the contract date anniversary. You must notify
us within 30 days following the contract date anniversary if you want to
exercise the GMIB. You must return your contract to us, along with all required
information within 30 days following your contract date anniversary, in order
to exercise this benefit. Upon exercise of the GMIB, the owner (or older joint
owner, if applicable) will become the annuitant, and the contract will be
annuitized on the basis of the annuitant's life. You will begin receiving
annual payments one year after the annuity payout contract is issued. If you
choose monthly or quarterly payments, you will receive your payment one month
or one quarter after the annuity payout contract is issued. Under monthly or
quarterly payments, the aggregate payments you receive in a contract year will
be less than what you would have received if you had elected an annual payment,
as monthly and quarterly payments reflect the time value of money with regard
to both interest and mortality. You may choose to take a withdrawal prior to
exercising the GMIB, which will reduce your payments. You may not partially
exercise this benefit. See ''Withdrawing your account value'' in ''Accessing
your money'' later in this Prospectus. Payments end with the last payment
before the annuitant's (or joint annuitant's, if applicable) death.
Please see "Exercise of the GMIB in the event of a GMIB fee increase" under
"charges and expenses" later in this Prospectus for more information on
exercising your GMIB upon notice of a change to the GMIB fee.
<R>
EXERCISE RULES. The latest date you may exercise the GMIB is the 30th day
following the contract date anniversary following the annuitant's 95th
birthday. Eligibility to exercise the GMIB is based on the owner's (or older
joint owner's, if applicable) age, as follows:
</R>
.. If you were at least age 20 and no older than age 44 on the contract date
anniversary immediately preceding the date you first
46
CONTRACT FEATURES AND BENEFITS
funded your Protected Benefit account, you are eligible to exercise the GMIB
within 30 days following each contract date anniversary beginning with the
15th contract date anniversary following the date you first funded your
Protected Benefit account.
.. If you were at least age 45 and no older than age 49 on the contract date
anniversary immediately preceding the date you first funded your Protected
Benefit account, you are eligible to exercise the GMIB within 30 days
following each contract date anniversary after age 60.
.. If you were at least age 50 and no older than age 80 on the contract date
anniversary immediately preceding the date you first funded your Protected
Benefit account, you are eligible to exercise the GMIB within 30 days
following each contract date anniversary beginning with the 10th contract
date anniversary following the date you first funded your Protected Benefit
account.
The GMIB guarantees annual lifetime payments ("Lifetime GMIB payments"), which
will begin at the earliest of:
(i)the next contract year following the date your Protected Benefit account
value falls to zero (provided the no lapse guarantee is in effect);
(ii)the contract date anniversary following your 95th birthday; or
(iii)your election to exercise the GMIB.
<R>
Your Lifetime GMIB payments will be calculated as described below in this
section. Whether your Lifetime GMIB payments are triggered by age 95, the no
lapse guarantee, or your election to exercise the GMIB, we use the same
calculation to determine the amount of the payments.
</R>
For single owner contracts, the payout can be either based on a single life
(the owner's life) or joint lives. For IRA contracts, the joint life must be
the spouse of the owner. For jointly owned contracts, payments can be based on
a single life (based on the life of the older owner) or joint lives. For
non-natural owners, payments are available on the same basis (based on the
annuitant or joint annuitant's life).
Your Lifetime GMIB payments are calculated by applying your GMIB benefit base
to guaranteed annuity purchase factors. If your Protected Benefit account value
is zero as described under the "GMIB "no lapse guarantee"", we will use your
GMIB benefit base as of the day your Protected Benefit account value was
reduced to zero. On the day your Protected Benefit account value is reduced to
zero, we calculate your GMIB benefit base using the same formula as described
under "GMIB benefit base" earlier in this section. If your Protected Benefit
account was reduced to zero on a date other than your contract anniversary, we
will include a pro rata portion of the applicable Roll-up amount in your GMIB
base.
Example:
Assume your Protected Benefit account value goes to zero in the middle of
the 10th contract year. At the beginning of the 10th contract year, the GMIB
benefit base is $100,000. Further assume there were no contributions or
transfers to the Protected Benefit account or any withdrawals during that
contract year. If the applicable Roll-up rate was 4%, the GMIB benefit base
on the day your Protected Benefit account value was reduced to zero would be
$102,000.
If your Protected Benefit account value is reduced to zero on your contract
date anniversary as the result of the deduction of charges under the contract,
we will add any remaining Annual Roll-up amount, or if applicable, your
Deferral Roll-up amount, to your GMIB benefit base.
If the GMIB is exercised under any of the four events as described above, and
you have no Investment account value, the following applies:
(i)We will issue a supplementary contract with the same owner and beneficiary.
(ii)The deferral contract, including the Guaranteed minimum death benefit will
be terminated.
If the GMIB is exercised under any of the four events as described above, and
you have Investment account value, the following applies:
(i)We will issue a supplementary contract for the Protected Benefit account
with the same owner and beneficiary. The Investment account under the
deferred contract will continue to be in force.
(ii)Your Lifetime GMIB payment will not reduce your Investment account value.
(iii)Your Guaranteed minimum death benefit will be terminated.
(iv)For IRA contracts, your RMD payments will be based solely on your
Investment account value and may only be withdrawn from your Investment
account.
<R>
If you elect to exercise the GMIB or your Protected Benefit account value has
not fallen to zero before or the contract date anniversary that follows the
annuitant reaching age 95, whichever is sooner, the following applies:
</R>
(i)We will issue a supplementary contract with the same owner and beneficiary;
(ii)Your Lifetime GMIB payments will be equal to the greater of:
. your Protected Benefit account value applied to the guaranteed, or, if
greater, the current annuitization factors,
-OR-
. the GMIB benefit base applied to the guaranteed annuity purchase factors.
<R>
For example, assuming the current annuitization factors are greater than the
guaranteed annuitization factors, a male contract owner whose annuitant is age
95 and has a $100,000 GMIB benefit base and $50,000 in Protected Benefit
account value would receive the greater of the following:
</R>
(i)Current annuitization factors (which are subject to change) applied to his
$50,000 Protected Benefit account value, which currently equals a monthly
payment of $1,065, or
(ii)The guaranteed annuity purchase factor discussed above (in this example, it
would be 0.63%) applied to his $100,000 GMIB benefit base, which equals a
Lifetime GMIB monthly payment of $630.
In this example, the contract owner's monthly payment would be $1,065.
(i)Any Investment account value will be annuitized under a separate contract
based on one of the annuity payout options discussed under "Your annuity
payout options" in "Accessing your money" later in this Prospectus;
47
CONTRACT FEATURES AND BENEFITS
(ii)Upon issuing your supplementary contract, your Guaranteed minimum death
benefit and your death benefit in connection with your Investment account
value will be terminated.
<R>
If you have the GMIB and your Protected Benefit account value falls to zero due
to an Excess withdrawal, we will terminate your GMIB and you will receive no
payment or supplementary life annuity contract, even if your GMIB benefit base
is greater than zero. Please see the Hypothetical illustrations in Appendix IV
for an example of how Lifetime GMIB payments are calculated when: (i) a
hypothetical Protected Benefit account value falls to zero, and (ii) the
annuitant reaches age 95.
</R>
Please note:
<R>
(i)if the GMIB benefit base is reset after age 85, the only time you may
exercise the GMIB is within 30 days following the contract date anniversary
following the annuitant's attainment of age 95;
</R>
(ii)for Retirement Cornerstone(R) Series E QP contracts, the Plan participant
can exercise the GMIB only if he or she elects to take a distribution from
the Plan and, in connection with this distribution, the Plan's trustee
changes the ownership of the contract to the participant. This effects a
rollover of the Retirement Cornerstone(R) Series E QP contract into a
Retirement Cornerstone(R) Series E traditional IRA. This process must be
completed within the 30-day time frame following the contract date
anniversary in order for the Plan participant to be eligible to exercise.
However, if the GMIB is automatically exercised as a result of the no lapse
guarantee, a rollover into an IRA will not be effected and payments will be
made directly to the trustee;
(iii)since no partial exercise is permitted, owners of defined benefit QP
contracts who plan to change ownership of the contract to the participant
must first compare the participant's lump sum benefit amount and annuity
benefit amount to the GMIB benefit base and account value, and make a
withdrawal from the contract if necessary. See ''How withdrawals affect
your Guaranteed benefits'' later in this section;
(iv)if you reset the GMIB benefit base (as described earlier in this section),
your new exercise date will be the tenth contract date anniversary
following the reset or, if later, the earliest date you would have been
permitted to exercise without regard to the reset, but in no event will it
be later than the contract date anniversary following age 95. Please note
that in most cases, resetting your GMIB benefit base will lengthen the
waiting period;
(v)a spouse beneficiary or younger spouse joint owner under Spousal
continuation may continue the GMIB if the contract is not past the last date
on which the original owner could have exercised the benefit and the spouse
beneficiary or younger spouse joint owner is eligible to continue the
benefit and to exercise the benefit under the applicable exercise rule
(described in the above bullets). In general, the spouse beneficiary or
younger spouse joint owner's age on the date of the owner's death replaces
the owner's age at issue, for purposes of determining the availability of
the benefit and which of the exercise rules applies. If the spouse
beneficiary or younger spouse joint owner is over age 85 on the date of the
owner's death, she will have a one-time opportunity to exercise the GMIB
subject to the following additional rules. The one-time election will be
available only if the spouse beneficiary or younger spouse joint owner is
age 95 or younger and the original owner died before the age of 95. In
addition, the election to exercise the GMIB must be made no later than one
year following the date of the owner's death. If the GMIB is exercised, the
Guaranteed minimum death benefit will be terminated. For example, if an
owner is age 70 at issue, and he dies at age 79, and the spouse beneficiary
is 86 on the date of his death, she may exercise the GMIB no later than one
year following the date of the owner's death, even though she was 77 at the
time the contract was issued, because eligibility is measured using her age
at the time of the owner's death, not her age on the issue date.
(vi)if the contract is jointly owned, you can elect to have the GMIB paid
either: (a) as a joint life benefit or (b) as a single life benefit paid on
the basis of the older owner's age (if applicable); and
(vii)if the contract is owned by a trust or other non-natural person,
eligibility to elect or exercise the GMIB is based on the annuitant's (or
older joint annuitant's, if applicable) age, rather than the owner's.
<R>
</R>
From time to time, we may offer you some form of payment or incentive in return
for terminating or modifying certain guaranteed benefits. See "Guaranteed
benefit offers" later in this section for more information.
<R>
</R>
ASSET TRANSFER PROGRAM (''ATP'')
If you have the GMIB, you are required to participate in the asset transfer
program (''ATP''). The ATP helps us manage our financial exposure in providing
the guaranteed benefits, by using predetermined mathematical formulas to move
account value between the AXA Ultra Conservative Strategy investment option and
the other Protected Benefit account variable investment options. The formulas
applicable to you may not be altered once you have the benefit. In essence, we
seek to preserve account value in the Protected Benefit account variable
investment options by transferring some or all of your account value in other
Protected Benefit account variable investment options to a more stable option
(i.e., the AXA Ultra Conservative Strategy investment option). The formulas
also contemplate the transfer of some or all of the account value from the AXA
Ultra Conservative Strategy investment option to the other Protected Benefit
account variable investment options according to your allocation instructions
on file. The formulas are described below and are also described in greater
detail in Appendix VIII later in this Prospectus.
The AXA Ultra Conservative Strategy investment option will only be used to hold
amounts transferred out of your other Protected Benefit account variable
investment options in accordance with the formulas described below. The AXA
Ultra Conservative Strategy investment option is part of the Protected Benefit
account, but you may not directly allocate a contribution to the AXA Ultra
Conservative Strategy investment option or request a transfer of account value
into the AXA Ultra Conservative Strategy investment option. The ATP applies to
amounts you allocate to the Protected Benefit account variable investment
options. On a limited basis, you may request a transfer out of the AXA Ultra
Conservative Strategy investment option, subject to the rules discussed below.
For a summary description of the AXA Ultra Conservative Strategy investment
option, please see ''Portfolios of the Trusts'' in ''Contract features and
benefits'' earlier in this Prospectus.
Transfers into or out of the AXA Ultra Conservative Strategy investment option,
if required, are processed on each valuation day. The valuation day occurs on
each contract monthiversary. The contract monthiversary is the same date of the
month as the contract date. If
48
CONTRACT FEATURES AND BENEFITS
the contract monthiversary is not a business day in any month, the valuation
day will be the next business day. For contracts with issue dates after the
28th day of the month, the valuation day will be on the first business day of
the following month. In the twelfth month of the contract year, the valuation
day will be on the contract date anniversary. If the contract date anniversary
occurs on a day other than a business day, the valuation day will be the
business day immediately preceding the contract date anniversary.
In general, the formulas work as follows. On each valuation day, two formulas
-- the ATP formula and the transfer amount formula -- are used to automatically
perform an analysis with respect to your GMIB.
The first formula, called the ATP formula, begins by calculating a contract
ratio, which is determined by dividing the Protected Benefit account value by
the GMIB benefit base, and subtracting the resulting number from one. The
contract ratio is then compared to predetermined ''transfer points'' to
determine what portion of the Protected Benefit account value needs to be held
in the AXA Ultra Conservative Strategy investment option.
If the contract ratio on the valuation day is equal to or less than the minimum
transfer point, all of the account value in the AXA Ultra Conservative Strategy
investment option, if any, will be transferred to the other Protected Benefit
account variable investment options according to your allocation instructions
on file. If the contract ratio on the valuation day exceeds the minimum
transfer point but is less than the maximum transfer point, amounts may be
transferred either into or out of the AXA Ultra Conservative Strategy
investment option depending on the account value already in the AXA Ultra
Conservative Strategy investment option and the Special DCA program designated
for the Protected Benefit account variable investment options. If the contract
ratio on the valuation day is equal to or greater than the maximum transfer
point, the total amount of your account value in the Protected Benefit account
variable investment options will be transferred into the AXA Ultra Conservative
Strategy investment option. For purposes of these calculations, amounts in any
Special DCA program designated for the Protected Benefit account variable
investment options are excluded from amounts that are transferred into the AXA
Ultra Conservative Strategy investment option.
ATP transfers into the AXA Ultra Conservative Strategy investment option will
be transferred out of your other Protected Benefit account variable investment
options on a pro rata basis. ATP transfers out of the AXA Ultra Conservative
Strategy investment option will be allocated among the other Protected Benefit
account variable investment options in accordance with your allocation
instructions on file. No amounts will be transferred into or out of the Special
DCA program as a result of any ATP transfer.
If you make a contribution or transfer to your Protected Benefit account after
the contract date, that contribution will be allocated according to the
instructions that you provide or, if we do not receive any instructions,
according to the allocation instructions on file for your contract. If the
contribution or transfer is processed on a valuation day, it will be subject to
an ATP transfer calculation on that day. If the contribution is received
between valuation days, the amount contributed will be subject to an ATP
transfer calculation on the next valuation day.
A separate formula, called the transfer amount formula, is used to calculate
the amount that must be transferred either into or out of the AXA Ultra
Conservative Strategy investment option when the ATP formula indicates that
such a transfer is required. For example, the transfer amount formula
reallocates Protected Benefit account value such that for every 1% by which the
contract ratio exceeds the minimum transfer point after the transaction 10% of
the Protected Benefit account value will be invested in the AXA Ultra
Conservative Strategy investment option and the Special DCA program designated
for the Protected Benefit account variable investment options. When the
contract ratio exceeds the maximum transfer point, amounts will be transferred
into the AXA Ultra Conservative Strategy investment option such that 100% of
the Protected Benefit account value will be invested in the AXA Ultra
Conservative Strategy investment option and the Special DCA program designated
for the Protected Benefit account variable investment options. On the first day
of your first ATP
year, the minimum transfer point is 15% and the maximum transfer point is 25%.
The minimum and maximum transfer points increase each contract monthiversary.
In the 10th ATP year (and later), the minimum transfer point is 45% and the
maximum transfer point is 55%. See Appendix VIII for a list of transfer points.
Each time you make a subsequent contribution or transfer to your Protected
Benefit account we will apply a setback adjustment formula. We use the formula
to determine whether (and to what extent) your applicable transfer points may
be "set back". Any set back of your transfer points will apply on the next
business day. The formula we use to calculate the set back applicable to you
may not be altered once you have the benefit. In general, the formula adjusts
your applicable transfer points to reflect the weighted average age of all
contributions and transfers made to the Protected Benefit account in relation
to the GMIB benefit base on the day prior to the contribution or transfer. For
information about the calculation, please see Appendix VIII later in this
Prospectus.
If you take a withdrawal from your Protected Benefit account and there is
account value allocated to the AXA Ultra Conservative Strategy investment
option, the withdrawal will be taken pro rata out of your Protected Benefit
account variable investment options (including the AXA Ultra Conservative
Strategy investment option).
Subject to any necessary regulatory approvals and advance notice to affected
contract owners, we reserve the right to utilize an investment option other
than the AXA Ultra Conservative Strategy investment option as part of the ATP.
ATP EXIT OPTION. Apart from the operation of the formulas, you may request a
transfer of account value in the AXA Ultra Conservative Strategy investment
option. You may wish to exercise the ATP exit option if you seek greater equity
exposure and if it meets your investment goals and risk tolerance. This
strategy may result in higher growth of your Protected Benefit account value if
the market increases which may also increase your Guaranteed benefit bases upon
a reset. On the other hand, if the market declines, your Protected Benefit
account value will also decline which will reduce the likelihood that your
Guaranteed benefit bases will increase. You should consult with your financial
professional to assist you in determining whether exercising the ATP exit
option meets your investment goals and risk tolerance.
The ATP exit option is subject to the following limitations:
.. You may not transfer out of the AXA Ultra Conservative Strategy investment
option during the contract year in which you first fund your Protected
Benefit account.
.. Beginning in the contract year that follows the contract year in which you
first fund your Protected Benefit account, and until the
49
CONTRACT FEATURES AND BENEFITS
contract year following age 85, you may make a transfer out of the AXA Ultra
Conservative Strategy investment option only once per contract year.
.. You must elect the transfer on a specific transfer form we provide.
.. 100% of your account value in the AXA Ultra Conservative Strategy
investment option must be transferred out. You cannot request a partial
transfer. The transfer will be allocated to your other Protected Benefit
account variable investment options based on the instructions we have on
file.
.. There is no minimum account value requirement for the ATP exit option. You
may make this election if you have any account value in the AXA Ultra
Conservative Strategy investment option.
<R>
.. We are not able to process an ATP exit option on a valuation day and we
will not consider your transfer request to be in good order if we receive
it on a valuation day. If we receive your transfer form on a valuation day
and it is complete, your ATP exit option will be processed on the next
business day. If no account value remains in the AXA Ultra Conservative
Strategy investment option on that day, there will be no transfer and your
election will not count as your one permitted ATP exit option for that
contract year.
If we process an ATP exit option, we will recalculate your benefit bases. A
transfer may result in a reduction in your Guaranteed benefit bases and
therefore a reduction in the value of your Guaranteed benefits. In some cases,
the reduction in your benefit bases may be greater than the amount transferred
out of the AXA Ultra Conservative Strategy investment option.
Please note that after exercising the ATP exit option, account value may be
transferred out of your Protected Benefit account investment options and into
the AXA Ultra Conservative Strategy investment option as soon as the next
valuation day.
</R>
You should be aware that contributions and transfers to the Protected Benefit
account generally have the effect of moving money out of the AXA Ultra
Conservative Strategy investment option. However, in cases where the GMIB
benefit base far exceeds the Protected Benefit account value and a contribution
or transfer has not been made for a long period of time, making an additional
contribution or transfer to the Protected Benefit account may result in no
movement out of the AXA Ultra Conservative Strategy investment option due to
the ATP year set back. Under these circumstances, the additional contribution
or transfer may be transferred into the AXA Ultra Conservative Strategy
investment option on the next valuation day. You should consider these factors
when making a subsequent contribution or transfer to your Protected Benefit
account. See Appendix VIII later in this prospectus for examples of how
subsequent contributions may impact the ATP exit option.
On the day the ATP exit option is processed, the current value of the GMIB
benefit base, the Roll-up to age 85 benefit base and the Highest Anniversary
Value benefit base (as applicable) is compared to the new benefit base produced
by the ATP exit option formula. Each benefit base (the GMIB benefit base, the
Roll-up to age 85 benefit base and the Highest Anniversary Value benefit base)
is adjusted to the lesser of the current value of that benefit base or the new
benefit base produced by the ATP exit option formula. There is the potential
that the Roll-up to age 85 benefit base will be adjusted without a
corresponding adjustment to the Highest Anniversary Value benefit base and vice
versa. The Return of Principal death benefit base is not adjusted.
If the GMIB benefit base and Roll-up to age 85 benefit base are adjusted, there
are no corresponding adjustments made to the Deferral Roll-up amount, the
Annual Roll-up amount and the Annual withdrawal amount in that contract year.
Any applicable amounts are added to your newly adjusted GMIB benefit base and
Roll-up benefit base to age 85.
For information about the ATP exit option, please see Appendix VIII later in
this Prospectus.
DEATH BENEFIT
For the purposes of determining the death benefit under your Retirement
Cornerstone(R) Series E contract, we treat your Investment account and any
Guaranteed minimum death benefit funded by your Protected Benefit account
differently.
The death benefit in connection with your Investment account is equal to your
Investment account value as of the date we receive satisfactory proof of death,
any required instructions for the method of payment, and any required
information and forms necessary to effect payment. The death benefit payable in
connection with your Protected Benefit account will be based on the greater of
(i) your Protected Benefit account value, and (ii) the benefit base of your
Guaranteed minimum death benefit.
The total death benefit under your Retirement Cornerstone(R) Series E contract
will depend on your values in either one or both sides of the contract. If you
selected a Guaranteed minimum death benefit but never funded your Protected
Benefit account, your death benefit will be based on your Investment account
value only. Likewise, if you funded your Guaranteed minimum death benefit
through allocations to the Protected Benefit account and had no Investment
account value, your death benefit would be based strictly on the Guaranteed
minimum death benefit you selected. Also, it is possible that upon your death,
you have value in both your Investment account and a Guaranteed minimum death
benefit that has been funded through allocations to the Protected Benefit
account. In that case, your beneficiaries would receive the Investment account
value, plus the value of your Guaranteed minimum death benefit.
GUARANTEED MINIMUM DEATH BENEFITS
At issue, you may elect one of our optional Guaranteed minimum death benefit
options (GMDBs) in connection with your Protected Benefit account as follows:
----------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT SERIES E CONTRACT
----------------------------------------------------
Return of Principal death benefit Issue Ages 0-80
-----------------------------------
Highest Anniversary
Value death benefit
-----------------------------------
RMD Wealth Guard death benefit Issue Ages 20-65
-----------------------------------
The "Greater of" death benefit
-----------------------------------
The "Greater of" death benefit or Return of Principal death benefit can only be
elected in combination with the GMIB. The RMD Wealth Guard death benefit cannot
be elected in combination with the GMIB. The Highest Anniversary Value death
benefit is available with or without the GMIB. The Highest Anniversary Value
death benefit, the RMD Wealth Guard death benefit and the "Greater of" death
benefit are available at an additional charge. There is no charge for the
Return of Principal death benefit. If you elect the GMIB, but do not elect a
Guaranteed minimum death benefit, the Return of Principal death benefit will
also be issued with your contract. If you elect a GMDB, the period during which
you can make subsequent contributions may be significantly
50
CONTRACT FEATURES AND BENEFITS
shorter than if you did not elect a GMDB. Please refer to Appendix IX later in
this prospectus. Once a withdrawal is taken from the Protected Benefit account,
additional contributions may not be made to the Protected Benefit account.
Please refer to "Accessing your money" later in this Prospectus. Transfers to
and from the Protected Benefit account may be restricted. Please refer to
"Transferring your money among investment options" later in this Prospectus.
Any GMDB you elect will automatically terminate upon annuitization, which will
occur no later than the maturity date stated in your contract.
When you have a GMDB, you can allocate your contributions to any of the
following:
.. Protected Benefit account variable investment options
.. Investment account variable investment options
.. Guaranteed interest option
.. The account for special dollar cost averaging
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in the Special DCA program designated for the Protected
Benefit account variable investment options will fund your GMDB. These amounts
will be included in your GMDB benefit base and will become part of your
Protected Benefit account value.
Your death benefit in connection with your Protected Benefit account is equal
to one of the following -- whichever provides a higher amount:
.. Your Protected Benefit account value as of the date we receive satisfactory
proof of the owner's (or older joint owner's, if applicable) death, any
required instructions for the method of payment, and any required
information and forms necessary to effect payment; or
.. Your applicable GMDB benefit base (discussed below) on the date of the
owner's (or older joint owner's, if applicable) death, adjusted for
subsequent withdrawals.
For a description of how the ATP exit option will impact your GMDB benefit
bases, see ''ATP exit option'' above.
RETURN OF PRINCIPAL DEATH BENEFIT
<R>
The Return of Principal death benefit, like all of the guaranteed minimum death
benefits, only applies to amounts you allocate to the Protected Benefit account
variable investment options and not with the contract as a whole. Your Return
of Principal Guaranteed minimum death benefit is equal to your Return of
Principal death benefit base. This benefit base is not an account value or cash
value. It is equal to:
.. Your initial contribution and any subsequent contributions invested in your
Protected Benefit account variable investment options, either directly or
through the Special DCA program; plus
</R>
.. Any amounts contributed to the Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options; less
.. A deduction that reflects any withdrawals you make from the Protected
Benefit account variable investment options or from amounts in the Special
DCA program designated for the Protected Benefit account variable
investment options. The amount of this deduction is described under "How
withdrawals affect your Guaranteed benefits" later in this section.
Please see Appendix III later in this Prospectus for an example of how the
Return of Principal benefit base is calculated.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
Your Highest Anniversary Value Guaranteed minimum death benefit is equal to
your Highest Anniversary Value benefit base. This benefit base is not an
account value or cash value. The calculation of your Highest Anniversary Value
benefit base will depend on whether you have taken a withdrawal from your
Protected Benefit account.
If you have not taken a withdrawal from your Protected Benefit account, your
Highest Anniversary Value benefit base is equal to one of the following --
whichever provides a higher amount:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through the
Special DCA program; plus
.. Any amounts contributed to the Special DCA that are designated for future
transfers to the Protected Benefit account variable investment options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options.
-OR-
.. Your highest Protected Benefit account value on any contract date
anniversary up to the contract date anniversary following the owner's (or
older joint owner's, if applicable) 85th birthday (plus any transfers to
the Protected Benefit account variable investment options and contributions
either directly or through the Special DCA program designated for the
Protected Benefit account variable investment options, made since the most
recent "reset" of the Highest Anniversary Value benefit base that
established your Protected Benefit account value as your new Highest
Anniversary Value benefit base).
If you take a withdrawal from your Protected Benefit account and you have the
GMIB, your Highest Anniversary Value benefit base will be reduced on a
dollar-for-dollar basis by withdrawals up to the Annual withdrawal amount, and
on a pro rata basis by Excess withdrawals. NOTE THAT ANY WITHDRAWAL FROM YOUR
PROTECTED BENEFIT ACCOUNT IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED
BENEFIT ACCOUNT IS FUNDED IS AN EXCESS WITHDRAWAL. If you take a withdrawal
from your Protected Benefit account and you do not have the GMIB, your Highest
Anniversary Value benefit base will be reduced on a pro rata basis. Reduction
on a pro rata basis means that we calculate the percentage of your Protected
Benefit account value that is being withdrawn and we reduce your Highest
Anniversary Value benefit base by the same percentage. See "How withdrawals
affect your Guaranteed benefits" later in this section.
At any time after a withdrawal, your Highest Anniversary Value benefit base is
equal to one of the following -- whichever provides a higher amount:
.. Your Highest Anniversary Value benefit base immediately following the most
recent withdrawal (plus any transfers to the Protected Benefit account
variable investment options made since the most recent "reset" of the
Highest Anniversary Value benefit base that established your Protected
Benefit account value as your new Highest Anniversary Value benefit base).
51
CONTRACT FEATURES AND BENEFITS
-OR-
.. Your highest Protected Benefit account value on any contract date
anniversary after the withdrawal up to the contract date anniversary
following the owner's (or older joint owner's, if applicable) 85th birthday
(plus any transfers to the Protected Benefit account variable investment
options and contributions to the Special DCA program designated for the
Protected Benefit account variable investment options, made since the most
recent "reset" of the Highest Anniversary Value benefit base that
established your Protected Benefit account value as your new Highest
Anniversary Value benefit base).
Please see Appendix III later in this Prospectus for an example of how the
Highest Anniversary Value benefit base is calculated.
RMD WEALTH GUARD DEATH BENEFIT
(FOR TRADITIONAL IRA AND QPDC CONTRACTS ONLY)
The RMD Wealth Guard death benefit is an optional guaranteed minimum death
benefit. Your initial RMD Wealth Guard death benefit base is valued based on
your initial contributions and any transfers to the Protected Benefit account.
This benefit base is not an account value or cash value. Thereafter RMD Wealth
Guard death benefit base is increased by any allocations and transfers to the
Protected Benefit account, which is described below. Withdrawals from the
Protected Benefit account up to your RMD Wealth Guard withdrawal amount will
not reduce your RMD Wealth Guard death benefit base. This death benefit also
provides a refund feature in the event the Protected Benefit account falls to
zero before the owner reaches age 95. There is an additional charge for this
death benefit under the contract. The RMD Wealth Guard death benefit is not
available if you have the GMIB. The RMD Wealth Guard death benefit base is not
an account value or cash value. It is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through the
Special DCA program; plus
.. Any amounts contributed to the Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options; less
.. A deduction that reflects withdrawals that are made before the year in
which you turn age 701/2 or an Excess RMD withdrawal from the Protected
Benefit account, or from amounts in the Special DCA program designated for
the Protected Benefit account variable investment options. The amount of
this deduction is described below.
The RMD Wealth Guard death benefit base will be recalculated on each
transaction date upon the occurrence of each contribution, transfer or
deduction.
On each contract date anniversary up to the earlier of (i) the contract date
anniversary following your first RMD withdrawal from the Protected Benefit
account, and (ii) the contract date anniversary following your 85th birthday,
if the Protected Benefit account value is greater than the current RMD Wealth
Guard death benefit base, the RMD Wealth Guard death benefit base will
automatically reset to equal the Protected Benefit account value. Withdrawals
from the Protected Benefit account up to your RMD Wealth Guard withdrawal
amount will not reduce your RMD Wealth Guard death benefit base.
Your RMD Wealth Guard withdrawal amount will be calculated based on the account
value in your Protected Benefit account variable investment options as of
December 31st in the calendar year you turn age 701/2 and calculated each
calendar year thereafter as of December 31st. This calculation includes the
actuarial present value of your RMD Wealth Guard death benefit. For purposes of
the RMD Wealth Guard death benefit, your RMD Wealth Guard withdrawal amount
will be determined using the RMD rules and life expectancy and distribution
tables in effect on December 31, 2014. In the event that tax reform measures
change those RMD requirements, unless we agree otherwise, we will not allow
your RMD Wealth Guard withdrawal amount to be greater than the RMD Wealth Guard
withdrawal amount calculated using the IRS RMD rules that were in effect on
December 31, 2014. As a result of us reserving this right, in the event that
future IRS rule changes require you to take RMD withdrawals that are greater
than the RMD amount calculated using the IRS RMD rules that were in effect on
December 31, 2014 and we do not agree to this change, you would have to satisfy
your RMD requirements from other retirement sources or, if you do not have
other retirement sources, you would have to take an additional RMD withdrawal
amount from this contract, which would be treated an Excess RMD withdrawal.
That Excess RMD withdrawal would reduce your RMD Wealth Guard death benefit
base on a pro rata basis. Please refer to the section "How withdrawals effect
your Guaranteed benefits" later in this Prospectus.
Withdrawals from your Protected Benefit account prior to the calendar year in
which you turn age 701/2 are treated as Excess RMD withdrawals and reduce your
RMD Wealth Guard death benefit base on a pro rata basis. Reduction on a pro
rata basis means that we calculate the percentage of your Protected Benefit
account value that is being withdrawn and we reduce your RMD Wealth Guard death
benefit base by the same percentage. This pro rata reduction to the RMD Wealth
Guard death benefit base could be greater than the dollar amount of the
withdrawal and could significantly reduce or eliminate the value of the RMD
Wealth Guard death benefit. Withdrawals from the Protected Benefit account
prior to the calendar year in which you turn age 701/2 will not stop your
benefit base from resetting. As discussed above, the last reset of the RMD
Wealth Guard death benefit base will be the earlier of the contract date
anniversary following your first RMD withdrawal from the Protected Benefit
account or the contract date anniversary following your 85th birthday. For an
example of how a pro rata reduction works, see Appendix VII later in this
Prospectus.
Withdrawals made from your Protected Benefit account beginning from the
calendar year in which you turn age 701/2 will be treated as RMD Wealth Guard
withdrawals and will count towards your RMD Wealth Guard withdrawal amount.
Withdrawals from the Protected Benefit account up to your RMD Wealth Guard
withdrawal amount will not reduce your RMD Wealth Guard death benefit base. An
Excess RMD withdrawal will reduce your RMD Wealth Guard death benefit base on a
pro rata basis. A pro rata reduction to your RMD Wealth Guard death benefit
base could be greater than the dollar amount of the withdrawal and could
significantly reduce or eliminate the value of your RMD Wealth Guard death
benefit. Please note that any withdrawals from your Protected Benefit account,
including
52
CONTRACT FEATURES AND BENEFITS
withdrawals taken up to the RMD Wealth Guard withdrawal amount, will reduce
your Protected Benefit account value.
If you elect the RMD Wealth Guard withdrawal service, you will be able to
choose to elect to take RMD withdrawals from your Protected Benefit account
value and your Investment account value. If you elect to use our RMD Wealth
Guard withdrawal service, and our Automatic RMD withdrawal service, you will
receive RMD payments that you are entitled to receive for that calendar year.
At the time you elected to receive RMD withdrawals, any prior RMD payments due
for that calendar year will be paid as a catch-up payment. The catch-up payment
is made immediately when the RMD Wealth Guard withdrawal service enrollment is
processed. Thereafter, RMD payments will begin on the date and frequency
elected. For example, in the calendar year that you turn age 701/2, if you
enroll in our RMD Wealth Guard withdrawal service in July of that year and
requested to receive monthly RMD payments, you would receive the catch-up
payment due for January through June in a lump sum on the date the enrollment
is processed and the July RMD monthly payment on the date that you specified on
the RMD Wealth Guard withdrawal service Form. If you take additional
withdrawals from the Protected Benefit account while you are currently taking
RMD payments under our RMD Wealth Guard withdrawal service, those RMD payments
from the Protected Benefit account will be reduced by those withdrawals. If you
delay your first RMD withdrawal until after the calendar year you turn age
701/2, but no later than April 1st of the following calendar year, we will pay
you a catch-up payment at the time you elected to receive RMD withdrawals,
which will include any prior RMD payments due for that calendar year plus the
entire RMD amount due from the prior year. The catch-up payment is made
immediately when the RMD Wealth Guard withdrawal service enrollment is
processed. Thereafter, RMD payments will begin on the date and frequency
elected. In that event, the RMD Wealth Guard death benefit base would not reset
after that withdrawal. For more information, please refer to "Accessing your
money" later in this Prospectus.
If you take withdrawals from your Protected Benefit account during a calendar
year in which you are receiving RMD payments under our Automatic RMD service or
our RMD Wealth Guard withdrawal service, once withdrawals in that calendar year
reach your RMD Wealth Guard withdrawal amount, your RMD Wealth Guard
withdrawals will be suspended until the next calendar year. Additional
withdrawals from the Investment account value will not suspend RMD Wealth Guard
withdrawals under our Automatic RMD service or our RMD Wealth Guard withdrawal
service.
For additional examples of how withdrawals affect your RMD Wealth Guard death
benefit base, see Appendix VII later in this Prospectus. For information on how
RMD payments affect your RMD Wealth Guard death benefit, see "RMDs for
contracts with the RMD Wealth Guard death benefit" in "Accessing your money"
later in this Prospectus.
The RMD Wealth Guard withdrawal service is not available under QPDC
contracts. If you elect the RMD Wealth Guard death benefit for a QPDC contract,
all withdrawals from your Protected Benefit account will reduce the RMD Wealth
Guard death benefit base on a pro rata basis until the QPDC contract is
converted to an IRA. After you convert the QPDC contract to an IRA contract you
can elect the RMD Wealth Guard withdrawal service. A qualified plan
participant, upon separation from service, may directly roll-over an eligible
rollover distribution from the plan by converting the QPDC contract into an
otherwise identical IRA contract which retains the RMD Wealth Guard death
benefit. In that case, the RMDs can be taken without reducing the RMD Wealth
Guard death benefit base. You should not elect the RMD Wealth Guard death
benefit under a QPDC contract unless you intend to convert to an IRA prior to
taking RMDs. See Appendix II, "Purchase considerations for QP participants".
The RMD Wealth Guard death benefit is only available for traditional IRA and
QPDC contracts.
RMD WEALTH GUARD REFUND FEATURE:
If you have a RMD Wealth Guard death benefit and your Protected Benefit account
value falls to zero before the owner reaches age 95, or before the owner's
death, the following applies:
(i)We will issue you a supplementary contract with the same owner and
beneficiary;
(ii)You will receive periodic refund payments based on the value of your RMD
Wealth Guard death benefit base on the day your Protected Benefit account
falls to zero until we have returned the value of the RMD Wealth Guard
death benefit base, less any RMD withdrawals previously taken from the
Protected Benefit account before it fell to zero;
(iii)Unless you have amounts allocated to your Investment account, your
contract will also terminate; and
(iv)Any remaining RMD payments from the Investment account will continue
uninterrupted. Any remaining RMD payments from the entire contract must be
taken from the Investment account in the calendar year the Protected
Benefit account falls to zero. Your periodic payments will begin one modal
period from that date. For example, if you previously received payments on
an annual basis, your next periodic payment will begin one year from the
date your Protected Benefit account value fell to zero.
The annual refund payments to be received is equal to the RMD Wealth Guard
death benefit base, less any RMD withdrawals previously taken from the
Protected Benefit account before it fell to zero, divided by the difference
between 95 and the age of the owner at the time the Protected Benefit account
value fell to zero. The value of the annual refund payments to be received will
be paid in full by the end of the period resulting from this formula, which
will not be later than the date the owner reaches age 96.
For example:
Assume your RMD Wealth Guard death benefit base is equal to $100,000. Further
assume that at the time your Protected Benefit account value fell to zero you
were age 85 and that the total RMD withdrawals from your Protected Benefit
account were equal to $60,000. You (or your beneficiary) would receive $4,000
each year over a period of 10 years (age 95 minus age 85 equals 10). The RMD
Wealth Guard Refund amount is calculated by dividing $40,000 ($100,000 -
$60,000) by 10 which equals $4,000 per year.
If you die before receiving the remaining periodic payments, your beneficiary
will receive any remaining periodic payments.
<R>
RMDs are not required to be withdrawn from a Roth IRA during your lifetime.
Therefore, if you are considering converting your traditional IRA to a Roth
IRA, prior to converting your IRA to a Roth IRA, you must drop the RMD Wealth
Guard death benefit. If you funded your
</R>
53
CONTRACT FEATURES AND BENEFITS
<R>
Protected Benefit account, you may have to wait up to four years before you can
drop the RMD Wealth Guard death benefit. For information on dropping this
benefit, see "Dropping or changing your Guaranteed benefits" in "Contract
features and benefits", later in this prospectus and under Appendix I.
</R>
"GREATER OF" DEATH BENEFIT
Your "Greater of" death benefit has a benefit base. The benefit base is not an
account value or cash value. It is equal to the greater of:
.. The benefit base computed for the Highest Anniversary Value death benefit
(described immediately above); and
.. The Roll-up to age 85 benefit base.
The Roll-up to age 85 benefit base is used only in connection with the "Greater
of" death benefit. It is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through the
Special DCA program; plus
.. Any amounts contributed to the Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options; less
.. A deduction that reflects any "Excess withdrawal" amounts; less
.. A deduction that reflects (a) in the contract year of first funding, the
dollar amount of any RMD from the Protected Benefit account taken through
our RMD program and (b) in the subsequent contract years, the dollar amount
of any RMD from the Protected Benefit account in excess of the Annual
withdrawal amount taken through our RMD program; plus
<R>
.. Any "Deferral Roll-up amount" or "Annual Roll-up amount" minus a deduction
that reflects any withdrawals up to the Annual withdrawal amount. A
withdrawal from your Protected Benefit account in the first contract year
in which the Protected Benefit account is funded is an Excess withdrawal.
Any such withdrawal will reduce (i) your Roll-up to age 85 benefit base on
a pro rata basis and (ii) your Annual Roll-up amount on a dollar-for-dollar
basis, but not less than zero.
--------------------------------------------------------------------------------
EITHER THE DEFERRAL ROLL-UP AMOUNT OR THE ANNUAL ROLL-UP AMOUNT IS CREDITED TO
THE BENEFIT BASES OF YOUR GUARANTEED BENEFITS ON EACH CONTRACT DATE
ANNIVERSARY. THESE AMOUNTS ARE CALCULATED BY TAKING INTO ACCOUNT YOUR ROLL-UP
TO AGE 85 BENEFIT BASE FROM THE PRECEDING CONTRACT DATE ANNIVERSARY, THE
APPLICABLE ROLL-UP RATE UNDER YOUR CONTRACT, CONTRIBUTIONS AND TRANSFERS TO THE
PROTECTED BENEFIT ACCOUNT DURING THE CONTRACT YEAR AND FOR THE ANNUAL ROLL-UP
AMOUNT, ANY WITHDRAWALS UP TO THE ANNUAL WITHDRAWAL AMOUNT DURING THE CONTRACT
YEAR. A WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT IN THE FIRST CONTRACT
YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED IS AN EXCESS WITHDRAWAL.
ANY SUCH WITHDRAWAL WILL REDUCE (I) YOUR ROLL-UP TO AGE 85 BENEFIT BASE ON A
PRO RATA BASIS AND (II) YOUR ANNUAL ROLL-UP AMOUNT ON A DOLLAR-FOR-DOLLAR
BASIS, BUT NOT LESS THAN ZERO. HOWEVER, A RMD WITHDRAWAL FROM OUR RMD PROGRAM
WILL NOT REDUCE YOUR ANNUAL ROLL-UP AMOUNT IN THE YEAR YOU FIRST FUND YOUR
PROTECTED BENEFIT ACCOUNT. THE CALCULATION OF BOTH THE DEFERRAL ROLL-UP AMOUNT
AND THE ANNUAL ROLL-UP AMOUNT ARE DISCUSSED LATER IN THIS SECTION.
</R>
--------------------------------------------------------------------------------
In order to select the "Greater of" death benefit, you must also have the GMIB.
Beginning with the contract year that follows the contract year in which you
fund your Protected Benefit account, and until the contract year following age
85, if your Lifetime GMIB payments under the GMIB have not begun, you may
withdraw up to your Annual withdrawal amount without reducing your Roll-up to
age 85 benefit base. However, these same withdrawals will reduce the Annual
Roll-up amount that would otherwise be applied to your Roll-up to age 85
benefit base at the end of the year. Remember that the Roll-up amount
applicable under your contract does not become part of your Roll-up to age 85
benefit base until the end of the contract year. THE PORTION OF ANY WITHDRAWAL
IN EXCESS OF YOUR ANNUAL WITHDRAWAL AMOUNT WILL REDUCE YOUR ROLL-UP TO AGE 85
BENEFIT BASE ON A PRO RATA BASIS. SEE "ANNUAL WITHDRAWAL AMOUNT AND YOUR
ROLL-UP TO AGE 85 BENEFIT BASE" LATER IN THIS SECTION.
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your Roll-up to age 85
benefit base will automatically reset to equal the Protected Benefit account
value, if higher, on every contract date anniversary from your contract date,
up to the contract date anniversary following your 85th birthday or contract
maturity, if earlier. See "Annual reset options" earlier in this section. The
Roll-up to age 85 benefit base reset is described in more detail below.
<R>
</R>
From time to time, we may offer you some form of payment or incentive in return
for terminating or modifying certain guaranteed benefits. See "Guaranteed
benefit offers" later in this section for more information.
<R>
</R>
-------------------
ANNUAL ROLL-UP RATE
The Annual Roll-up rate is used to calculate amounts credited to your Roll-up
to age 85 benefit base for the contract year in which the first withdrawal is
made from your Protected Benefit account and all subsequent contract years. THE
ANNUAL ROLL-UP RATE USED FOR THE ROLL-UP TO AGE 85 COMPONENT OF THE "GREATER
OF" DEATH BENEFIT IS ALWAYS THE SAME AS THE ANNUAL ROLL-UP RATE UNDER YOUR
GMIB. This rate is calculated using the Ten-Year Treasuries Rate Formula. See
"Annual Roll-up Rate" under "Guaranteed minimum income benefit" for more
information regarding this formula.
A different Roll-up rate is used to calculate amounts credited to your Roll-up
to age 85 benefit base in the contract years prior to the first withdrawal from
your Protected Benefit account -- the "Deferral Roll-up rate," described below.
DEFERRAL ROLL-UP RATE
The Deferral Roll-up rate is used to calculate amounts credited to your Roll-up
to age 85 benefit base through the end of the contract year that precedes the
contract year in which the first withdrawal is made from your Protected Benefit
account.
Beginning in the first contract year in which you fund your Protected Benefit
account, the Roll-up amount credited to your Roll-up to age 85 benefit base at
the end of the contract year (the "Deferral Roll-up amount") will be calculated
using the Deferral Roll-up rate. Once you take a withdrawal from your Protected
Benefit account, the Deferral Roll-up amount will not be credited at the end of
the contract year in which the withdrawal was taken and will terminate for the
life of the contract. Instead, the Annual Roll-up amount will be credited. THE
DEFERRAL ROLL-UP RATE USED FOR THE ROLL-UP TO AGE 85
54
CONTRACT FEATURES AND BENEFITS
COMPONENT OF THE "GREATER OF" DEATH BENEFIT IS ALWAYS THE SAME AS THE DEFERRAL
ROLL-UP RATE UNDER YOUR GMIB. This rate is calculated using the Deferral
Ten-Year Treasuries Rate Formula. See "Deferral Roll-up Rate" under "Guaranteed
minimum income benefit" for more information regarding this formula.
The Deferral Roll-up rate is designed as an incentive to defer taking your
first withdrawal from your Protected Benefit account until later contract years
while potentially building greater Guaranteed benefit bases.
NEW BUSINESS RATES. The new business Roll-up rates we set for the Roll-up to
age 85 benefit base are the same as the new business rates we set for the GMIB.
Under the GMIB Two-Year Lock, the new business rates are no longer applicable
after the second contract year, even if you fund your Guaranteed benefits after
the second contract year. See "New business rates" under "Guaranteed minimum
income benefit" for more information.
<R>
</R>
RENEWAL RATES. The renewal Roll-up rates we set for the Roll-up to age 85
benefit base are the same as the renewal rates we set for the GMIB. For more
information, see "Renewal rates" under "Guaranteed minimum income benefit."
<R>
NOTIFICATION OF RENEWAL RATES. If you have the "Greater of" death benefit at
issue, your contract will indicate the Annual Roll-up rate and Deferral Roll-up
rate that are in effect. These rates may not be the same rates that were
illustrated prior to your purchase of the contract. If you choose to fund your
"Greater of" death benefit (and your GMIB) after the new business rates have
expired, you can contact a Customer Service Representative to find out the
current Annual Roll-up rate and if applicable, Deferral Roll-up rate for your
contract. In addition, your annual statement of contract values will show your
current Renewal rates as well as the previous year's Annual Roll-up rate or
Deferral Roll-up rate (whichever applies) for your contract. The information
can also be found online, through your Online Access Account.
</R>
ANNUAL ROLL-UP AMOUNT AND ANNUAL ROLL-UP TO AGE 85 BENEFIT BASE ADJUSTMENT
The Annual Roll-up amount is an amount credited to your Roll-up to age 85
benefit base on each contract date anniversary if there has ever been a
withdrawal from your Protected Benefit account. The Annual Roll-up amount
adjustment to your Roll-up to age 85 benefit base is the primary way to
increase the value of the Roll-up to age 85 component of your "Greater of"
death benefit base. This amount is calculated by taking into account your
Roll-up to age 85 benefit base from the preceding contract date anniversary,
the Annual Roll-up rate under your contract, contributions and transfers to the
Protected Benefit account during the contract year and any withdrawals up to
the Annual withdrawal amount during the contract year. The crediting of any
Annual Roll-up amount ends on the contract date anniversary following the owner
reaching age 85. A withdrawal from your Protected Benefit account in the first
contract year in which the Protected Benefit account is funded is an Excess
withdrawal. Any such withdrawal will reduce (i) your Roll-up to age 85 benefit
base on a pro rata basis and (ii) your Annual Roll-up amount on a
dollar-for-dollar basis, but not less than zero. However, a RMD withdrawal from
our RMD program will not reduce your Annual Roll-up amount in the year you
first fund your Protected Benefit account.
Your Annual Roll-up amount at the end of the contract year is calculated as
follows:
.. Your Roll-up to age 85 benefit base on the preceding contract date
anniversary, multiplied by:
.. The Annual Roll-up rate that was in effect on the first day of the contract
year; less
.. Any withdrawals up to the Annual withdrawal amount resulting in a
dollar-for-dollar reduction of the Annual Roll-up amount; plus
.. A pro-rated Roll-up amount for any contribution to the Protected Benefit
account variable investment options during the contract year; plus
.. A pro-rated Roll-up amount for any transfer from the Investment account
variable investment options and/or Guaranteed interest option to the
Protected Benefit account variable investment options during the contract
year; plus
.. A pro-rated Roll-up amount for any contribution amounts to the Special DCA
program that are designated for future transfers to the Protected Benefit
account variable investment options during the contract year.
A PRO-RATED ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE CONTRACT YEAR
AFTER THE CONTRIBUTION OR TRANSFER. (SINCE THERE IS NO ANNUAL WITHDRAWAL AMOUNT
IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED,
ANY WITHDRAWALS IN THAT YEAR (OTHER THAN RMD WITHDRAWALS FROM OUR RMD PROGRAM)
RESULT IN A DOLLAR-FOR-DOLLAR REDUCTION OF THE ANNUAL ROLL-UP AMOUNT (BUT NOT
LESS THAN ZERO).)
In the event of your death, a pro-rated portion of the Roll-up amount will be
added to the Roll-up to age 85 benefit base.
Withdrawals in excess of the Annual withdrawal amount may have a harmful effect
on your Roll-up to age 85 benefit base and "Greater of" death benefit. A
withdrawal in excess of your Annual withdrawal amount will always reduce your
Roll-up to age 85 benefit base on a pro rata basis. When the owner reaches age
85, withdrawals will reduce your Roll-up to age 85 benefit base on a
dollar-for-dollar basis up to your Annual withdrawal amount. For more
information, see "How withdrawals affect your Guaranteed benefits" later in
this section.
DEFERRAL ROLL-UP AMOUNT AND ANNUAL ROLL-UP TO AGE 85 BENEFIT BASE ADJUSTMENT
The Deferral Roll-up amount is an amount credited to your Roll-up to age 85
benefit base on each contract date anniversary provided you have never taken a
withdrawal from your Protected Benefit account. This amount is calculated by
taking into account your Roll-up to age 85 benefit base from the preceding
contract date anniversary, the applicable Deferral Roll-up rate under your
contract, and contributions and transfers to the Protected Benefit account
during the contract year. The Deferral Roll-up amount adjustment to your
Roll-up to age 85 benefit base is the primary way to increase the value of the
Roll-up to age 85 component of your "Greater of" death benefit base. The
crediting of any Deferral Roll-up amount ends on the contract date anniversary
following the owner reaching age 85.
55
CONTRACT FEATURES AND BENEFITS
Your Deferral Roll-up amount at the end of the contract year is calculated as
follows:
.. your Roll-up to age 85 benefit base on the preceding contract date
anniversary, multiplied by:
.. the Deferral Roll-up rate that was in effect on the first day of the
contract year; plus
.. A pro-rated Deferral Roll-up amount for any contribution to the Protected
Benefit account variable investment options during the contract year; plus
.. A pro-rated Deferral Roll-up amount for any transfer from the Investment
account and/or Guaranteed interest option to the Protected Benefit account
variable investment options during the contract year; plus
.. A pro-rated Deferral Roll-up amount for any contribution amounts made
during the contract year to the Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options during the contract year.
A PRO-RATED DEFERRAL ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE
CONTRACT YEAR AFTER THE CONTRIBUTION OR TRANSFER.
In the event of your death, a pro-rated portion of the Deferral Roll-up amount
will be added to the Roll-up to age 85 benefit base.
ROLL-UP TO AGE 85 BENEFIT BASE RESET
THIS SECTION DESCRIBES HOW THE ROLL-UP TO AGE 85 BENEFIT BASE RESET WORKS IN
CONNECTION WITH THE CALCULATION OF YOUR "GREATER OF" DEATH BENEFIT.
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your Roll-up to age 85
benefit base will automatically reset to equal the Protected Benefit account
value, if higher, on every contract date anniversary from your contract date,
up to the contract date anniversary following your 85th birthday or contract
maturity, if earlier. See "Annual reset options" earlier in this section.
If a reset is not applicable on your contract date anniversary, the Roll-up to
age 85 benefit base will not be eligible to be reset again until the next
contract date anniversary. For jointly-owned contracts, eligibility to reset
the Roll-up to age 85 benefit base is based on the age of the older owner. For
non-naturally owned contracts, eligibility is based on the age of the annuitant
or older joint annuitant.
We will send you a notice in each year that the Roll-up to age 85 benefit base
is eligible to be reset. If you are not enrolled in either the automatic annual
reset program or the automatic customized reset program you will have 30 days
from your contract date anniversary to request a reset. At any time, you may
choose one of the three available reset methods: one-time reset option,
automatic annual reset program or automatic customized reset program. The
procedures for choosing a reset method are the same procedures described under
"GMIB benefit base reset" earlier in this section.
The total dollar amount charged on future contract date anniversaries may
increase as a result of the reset, even if the charge for the "Greater of"
death benefit has not been increased, since the charges may be applied to a
higher "Greater of" death benefit base than would have been otherwise applied.
See "Charges and expenses" later in this Prospectus for more information.
ANNUAL WITHDRAWAL AMOUNT AND YOUR ROLL-UP TO AGE 85 BENEFIT BASE
If you have the "Greater of" death benefit and the GMIB, both your Roll-up to
age 85 benefit base and GMIB benefit base are calculated the same way until age
85. Therefore, your Roll-up to age 85 benefit base and GMIB benefit base are
equal until age 85. Beginning after the contract date anniversary following the
owner's (or older joint owner, if applicable) 85th birthday, your Roll-up to
age 85 benefit base will (i) no longer roll up; (ii) no longer be eligible for
resets; and (iii) be reduced dollar-for-dollar by withdrawals up to your Annual
withdrawal amount. In contrast, the roll ups and resets for the GMIB benefit
base calculation continue until age 95. Therefore, after age 85, your Roll-up
to age 85 benefit base and your GMIB benefit base may differ.
WITHDRAWALS UP TO YOUR ANNUAL WITHDRAWAL AMOUNT AFFECT YOUR ROLL-UP TO AGE 85
BENEFIT BASE THE EXACT SAME WAY AS THEY AFFECT YOUR GMIB BENEFIT BASE PRIOR TO
THE CONTRACT DATE ANNIVERSARY FOLLOWING AGE 85.Beginning with the contract year
that follows the contract year in which you first fund your Protected Benefit
account, if Lifetime GMIB payments have not begun, you may withdraw up to your
Annual withdrawal amount without reducing your Roll-up to age 85 benefit base.
IT IS IMPORTANT TO NOTE THAT WITHDRAWALS IN EXCESS OF YOUR ANNUAL WITHDRAWAL
AMOUNT WILL HAVE A HARMFUL EFFECT ON YOUR ROLL-UP TO AGE 85 BENEFIT BASE AND
YOUR "GREATER OF" DEATH BENEFIT.An Excess withdrawal reduces your Roll-up to
age 85 benefit base on a pro rata basis. A withdrawal from your Protected
Benefit account in the first contract year in which the Protected Benefit
account is funded is an Excess withdrawal. A withdrawal that causes your
Protected Benefit account value to go to zero will terminate your "Greater of"
death benefit.
The reduction of your Roll-up to age 85 benefit base on a pro rata basis means
that we calculate the percentage of your current Protected Benefit account
value that is being withdrawn and we reduce your current Roll-up to age 85
benefit base by the same percentage. A pro rata withdrawal will have a
significant adverse effect on your Roll-up to age 85 benefit base in cases
where the Protected Benefit account value is less than the Roll-up to age 85
benefit base. For an example of how pro rata reduction works, see "How
withdrawals affect your Guaranteed benefits" later in this section.
For contracts with non-natural owners, the Roll-up to age 85 benefit base will
be based on the annuitant's (or older joint annuitant's) age.
Please see Appendix III later in this Prospectus for an example of how the
Roll-up to age 85 benefit base that is part of the "Greater of" Guaranteed
minimum death benefit is calculated.
-------------------
If you change ownership of the contract, generally the Guaranteed minimum death
benefit will automatically terminate, except under certain circumstances. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information" later in this Prospectus for more information.
The Guaranteed minimum death benefits are subject to state availability and
your age at contract issue. For a state-by-state description of all material
variations of this contract, see Appendix V later in this Prospectus.
56
CONTRACT FEATURES AND BENEFITS
For contracts with non-natural owners, the available death benefits are based
on the annuitant's age.
Please see both "Effect of your account values falling to zero" in "Determining
your contract's value" and "How withdrawals affect your Guaranteed benefits"
later in this section and the section entitled "Charges and expenses" later in
this Prospectus for more information on these Guaranteed benefits.
See Appendix III later in this Prospectus for examples of how the benefit bases
for the Guaranteed minimum death benefits work.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFITS
In general, withdrawals from your Protected Benefit account will reduce your
Guaranteed benefit bases on a pro rata basis. Reduction on a pro rata basis
means that we calculate the percentage of your current Protected Benefit
account value that is being withdrawn and we reduce your current Guaranteed
benefit bases by the same percentage.
For example, if your Protected Benefit account value is $30,000 and you
withdraw $12,000, you have withdrawn 40% of your Protected Benefit account
value. If your Guaranteed benefit base was $40,000 before the withdrawal, it
would be reduced by $16,000 ($40,000 X .40) and your new Guaranteed benefit
base after the withdrawal would be $24,000 ($40,000 - $16,000).
If your Protected Benefit account value is greater than your Guaranteed benefit
base, an Excess withdrawal will result in a reduction of your Guaranteed
benefit base that will be less than the withdrawal. For example, if your
Protected Benefit account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your Protected Benefit account value. If your Guaranteed
benefit base was $20,000 before the withdrawal, it would be reduced by $8,000
($20,000 X .40) and your new Guaranteed benefit base after the withdrawal would
be $12,000 ($20,000 - $8,000).
A pro rata deduction means that if you take a withdrawal that reduces your
Guaranteed benefit bases on a pro rata basis and your Protected Benefit account
value is less than your Guaranteed benefit base, the amount of the Guaranteed
benefit base reduction will exceed the amount of the withdrawal.
If you have the GMIB with the Highest Anniversary Value death benefit or the
"Greater of" death benefit and you take a withdrawal from your Protected
Benefit account, your Highest Anniversary Value benefit base for the respective
Guaranteed minimum death benefits will be reduced on a dollar-for-dollar basis
by withdrawals up to the Annual withdrawal amount, and on a pro rata basis by
Excess withdrawals. NOTE THAT ANY WITHDRAWAL FROM YOUR PROTECTED BENEFIT
ACCOUNT IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS
FUNDED IS AN EXCESS WITHDRAWAL. If you take a withdrawal from your Protected
Benefit account and you do not have the GMIB with the Highest Anniversary Value
death benefit, your Highest Anniversary Value benefit base will be reduced on a
pro rata basis.
Withdrawals affect your GMIB benefit base and Roll-up to age 85 benefit base,
as follows:
.. A withdrawal from your Protected Benefit account in the contract year in
which you first fund your Protected Benefit account will reduce your GMIB
benefit base and Roll-up to age 85 benefit base on a pro rata basis.
.. Beginning with the contract year that follows the contract year in which
you fund your Protected Benefit account, if your Lifetime GMIB payments
have not begun, withdrawals up to your Annual withdrawal amount will not
reduce your GMIB benefit base.
.. Beginning with the contract year that follows the contract year in which
you fund your Protected Benefit account and until the contract date
anniversary after age 85, if your Lifetime GMIB payments have not begun,
withdrawals up to your Annual withdrawal amount will not reduce your
Roll-up to age 85 benefit base.
.. Beginning on the contract date anniversary after age 85, withdrawals will
reduce your Roll-up to age 85 benefit base on a dollar-for-dollar basis up
to your Annual withdrawal amount.
.. The portion of a withdrawal in excess of your Annual withdrawal amount
("Excess withdrawal") will always reduce your GMIB benefit base and Roll-up
to age 85 benefit base on a pro rata basis. This means that once a
withdrawal is taken that causes the sum of the withdrawals from your
Protected Benefit account to exceed the Annual withdrawal amount, that
portion of the withdrawal that exceeds the Annual withdrawal amount and any
subsequent withdrawals from your Protected Benefit account in that contract
year will reduce the GMIB benefit base and Roll-up to age 85 benefit base
on a pro rata basis.
Withdrawals affect your RMD Wealth Guard death benefit base, as follows:
.. A withdrawal from your Protected Benefit account prior to the calendar year
in which you turn age 701/2 will be treated as an Excess RMD withdrawal and
will reduce your RMD Wealth Guard death benefit base on a pro rata basis.
.. A withdrawal from your Protected Benefit account beginning from the
calendar year in which you turn age 701/2 will be treated as a RMD Wealth
Guard withdrawal and will count towards your RMD Wealth Guard withdrawal
amount.
.. A withdrawal from your Protected Benefit account beginning from the
calendar year in which you turn age 701/2 in excess of your RMD Wealth
Guard withdrawal amount will be treated as an Excess RMD withdrawal. The
portion of a withdrawal in excess of your RMD Wealth Guard withdrawal
amount will reduce your RMD Wealth Guard death benefit base on a pro rata
basis. This means that once a withdrawal is taken that causes the sum of
the withdrawals from your Protected Benefit account to exceed the RMD
Wealth Guard withdrawal amount, that portion of the withdrawal that exceeds
the RMD Wealth Guard withdrawal amount and any subsequent withdrawals from
your Protected Benefit account in that calendar year will reduce the RMD
Wealth Guard death benefit base on a pro rata basis.
Please see Appendix VII later in this Prospectus for examples of how
withdrawals affect your Guaranteed benefit bases. For information on how RMD
payments affect your Guaranteed benefits, see "Lifetime required minimum
distribution withdrawals" in "Accessing your money" later in this Prospectus.
For information on how RMD payments affect your RMD Wealth Guard death benefit,
see "RMDs for contracts with the RMD Wealth Guard death benefit" in "Accessing
your money" later in this Prospectus. For information about the RMD Wealth
Guard death benefit, see "RMD Wealth Guard death benefit" earlier in this
Prospectus.
57
CONTRACT FEATURES AND BENEFITS
DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
You can drop or change your Guaranteed benefits, subject to our rules. Your
ability to do so depends on whether you have funded your Protected Benefit
account. If you have not funded your Protected Benefit account, we call this a
"pre-funding" drop or change. If you have funded your Protected Benefit
account, we call this a "post-funding" drop. Also, in order to make a change to
your Guaranteed minimum death benefit, you must meet the eligibility
requirements for the new benefit. If you drop a Guaranteed benefit, you will
not be permitted to add it back to your contract.
PRE-FUNDING DROP OR CHANGE
<R>
Prior to funding your Protected Benefit account, you can drop your GMIB,
Guaranteed minimum death benefit, or change your Guaranteed minimum death
benefit. The Return of Principal death benefit cannot be dropped prior to
funding your Protected Benefit account. For contracts with the GMIB, the
Guaranteed minimum death benefit generally cannot be changed without first
dropping the GMIB. In Appendix I, we provide a chart that lists the possible
Guaranteed benefit combinations under the Retirement Cornerstone(R) Series E
contract and our rules for dropping and changing benefits prior to funding your
Protected Benefit account.
</R>
POST-FUNDING DROP
If you funded your Protected Benefit account at issue and your contract has
been in force for at least four years, you have the option to drop both your
GMIB and Guaranteed minimum death benefit. Also, in some cases, you can drop
your GMIB and retain your Guaranteed minimum death benefit. If you funded your
Protected Benefit account after issue, you generally cannot drop your
Guaranteed benefit(s) until the later of: (i) the contract date anniversary
following the date the Protected Benefit account was funded and (ii) four years
from contract issue.
If you decide to drop all Guaranteed benefits post-funding, we require that you
complete the administrative form we provide for this purpose. You must either
take a full withdrawal of your Protected Benefit account or make a one-time
transfer to the Investment account variable investment options and guaranteed
interest option. The Guaranteed benefits and any applicable charges will be
terminated as of the business day we receive the properly completed
administrative form at our processing office. Please note that when a
Guaranteed benefit (other than the Return of Principal death benefit) is
dropped on any date other than a contract date anniversary, we will deduct a
pro rata portion of the charge for that year.
For contracts with the GMIB, the Guaranteed minimum death benefit cannot be
dropped without first dropping the GMIB. In Appendix I, we provide a chart that
lists the possible Guaranteed benefit combinations under the Retirement
Cornerstone(R) Series E contract and our rules for dropping and changing
benefits if you have already funded your Protected Benefit account.
If you drop the GMIB from your contract and retain the GMDB, the ATP will no
longer be in effect and any account value in the AXA Ultra Conservative
Strategy investment option will be allocated according to your instructions on
file for the Protected Benefit account. If you drop the GMIB from your contract
and do not retain the GMDB and you make a one-time transfer to the Protected
Benefit account, any account value in the AXA Ultra Conservative Strategy
investment option will be allocated according to your instructions on file for
the Investment account (including the guaranteed interest option). Please note
that if you drop the GMIB from your contract, you may not retain the "Greater
of" GMDB.
<R>
DROPPING OR CHANGING YOUR GUARANTEED BENEFITS IN THE EVENT OF A FEE CHANGE. In
the event that we exercise our contractual right to change the fee for the
GMIB, "Greater of" death benefit, or RMD Wealth Guard death benefit, you may be
given a one-time opportunity to drop your Guaranteed benefits or change your
GMDB if it is not yet funded, subject to our rules. You may drop or change your
Guaranteed benefits only within 30 days of the fee change notification. This
right to drop or change your Guaranteed benefits is in addition to any other
rights you may have, as described in Appendix I "Dropping or changing your
Guaranteed benefits". See "Fee changes for the Guaranteed minimum income
benefit and "Greater of" death benefit" in "Charges and expenses" and Appendix
I "Dropping or changing your Guaranteed benefits" later in this Prospectus for
more information.
</R>
GUARANTEED BENEFIT OFFERS
From time to time, we may offer you some form of payment or incentive in return
for terminating or modifying certain guaranteed benefits. Previously, we made
offers to groups of contract owners that provided for an increase in account
value in return for terminating their guaranteed death or income benefits. In
the future, we may make additional offers to these and other groups of contract
owners.
When we make an offer, we may vary the offer amount, up or down, among the same
group of contract owners based on certain criteria such as account value , the
difference between account value and any applicable benefit base, investment
allocations and the amount and type of withdrawals taken. For example, for
guaranteed benefits that have benefit bases that can be reduced on either a pro
rata or dollar-for-dollar basis, depending on the amount of withdrawals taken,
we may consider whether you have taken any withdrawal that has caused a pro
rata reduction in your benefit base, as opposed to a dollar-for-dollar
reduction. Also, we may increase or decrease offer amounts from offer to offer.
In other words, we may make an offer to a group of contract owners based on an
offer amount, and, in the future, make another offer based on a higher or lower
offer amount to the remaining contract owners in the same group.
If you accept an offer that requires you to terminate a guaranteed benefit, we
will no longer charge you for it, and you will not be eligible for any future
offers related to that type of guaranteed benefit, even if such future offer
would have included a greater offer amount or different payment or incentive.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may exercise
your cancellation right under the contract to receive a refund. To exercise
this cancellation right, you must notify us with a signed letter of instruction
electing this right, to our processing office within 10 days after you receive
your contract. If state law requires, this "free look" period may be longer.
Other state variations may apply. For a state-by-state description of all
material variations of this contract, including specific information on your
"free look" period, see Appendix V later in this Prospectus.
58
CONTRACT FEATURES AND BENEFITS
<R>
Generally, your refund will equal your Total account value under the contract
on the day we receive notification of your decision to cancel the contract and
will reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, and (iii) any interest in the account for special
dollar cost averaging (if applicable), through the date we receive your
contract. Some states, however, require that we refund the full amount of your
contribution (not reflecting (i), (ii) or (iii) above). Please refer to your
contract or supplemental materials or contact us for more information. For any
IRA contract returned to us within seven days after you receive it, we are
required to refund the full amount of your contribution.
</R>
We may require that you wait six months before you may apply for a contract
with us again if:
.. you cancel your contract during the free look period; or
<R>
.. you change your mind before you receive your contract.
Please note that if you exercise your right to cancel your contract, your
refund amount will be returned to you and will not be restored to your Prior
Contract. Please see "Tax information" later in this Prospectus for possible
consequences of cancelling your contract.
</R>
If you fully convert an existing traditional IRA contract to a Roth IRA
contract, you may cancel your Roth IRA contract and return to a traditional IRA
contract. Our processing office, or your financial professional, can provide
you with the cancellation instructions.
In addition to the cancellation right described above, you have the right to
surrender your contract, rather than cancel it. Please see "Surrendering your
contract to receive its cash value" in "Accessing your money" later in this
Prospectus. Surrendering your contract may yield results different than
canceling your contract, including a greater potential for taxable income. In
some cases, your cash value upon surrender may be greater than your
contributions to the contract. Please see "Tax information," later in this
Prospectus.
59
CONTRACT FEATURES AND BENEFITS
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "Total account value" is the total of: (i) the Protected Benefit account
value, and (ii) the Investment account value. Your "Protected Benefit account
value" is the total value you have in: (i) the Protected Benefit account
variable investment options, and (ii) amounts in the Special DCA program
designated for the Protected Benefit account variable investment options. Your
"Investment account value" is the total value you have in: (i) the Investment
account variable investment options, (ii) the guaranteed interest option, and
(iii) amounts in the Special DCA program designated for the Investment account
variable investment options and the guaranteed interest option. See "What are
your investment options under the contract?" in "Contract features and
benefits" for a detailed list of the Protected Benefit account variable
investment options and Investment account variable investment options.
Your contract also has a "cash value." Your contract's cash value is equal to
the Total account value, less: (i) the total amount or a pro rata portion of
the annual administrative charge; and (ii) any optional benefit charges. Please
see "Surrendering your contract to receive its cash value" in "Accessing your
money" later in this Prospectus.
YOUR CONTRACT'S VALUE IN THE VARIABLE INVESTMENT OPTIONS
Each variable investment option (including the AXA Ultra Conservative Strategy
investment option) invests in shares of a corresponding Portfolio. Your value
in each variable investment option (including the AXA Ultra Conservative
Strategy investment option) is measured by "units." The value of your units
will increase or decrease as though you had invested it in the corresponding
Portfolio's shares directly. Your value, however, will be reduced by the amount
of the fees and charges that we deduct under the contract.
The unit value for each variable investment option (including the AXA Ultra
Conservative Strategy investment option) depends on the investment performance
of that option, less daily charges for:
(i)operations expenses;
(ii)administration expenses; and
(iii)distribution charges.
On any day, your value in any variable investment option (including the AXA
Ultra Conservative Strategy investment option) equals the number of units
credited to that option, adjusted for any units purchased for or deducted
from your contract under that option, multiplied by that day's value for one
unit. The number of your contract units in any variable investment option
(including the AXA Ultra Conservative Strategy investment option) does not
change unless they are:
(i)increased to reflect subsequent contributions;
(ii)decreased to reflect withdrawals; or
(iii)increased to reflect transfers into, or decreased to reflect a transfer
out of, a variable investment option.
In addition, when we deduct any Guaranteed benefit charge, the number of units
credited to your contract will be reduced. Your units are also reduced when we
deduct the annual administrative charge. A description of how unit values are
calculated can be found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus transfers and
withdrawals out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, minus any
amounts that have been transferred to the variable investment options you have
selected, and charges we deduct.
EFFECT OF YOUR ACCOUNT VALUES FALLING TO ZERO
In general, your contract will terminate without value if your Total account
value falls to zero as the result of withdrawals, or the payment of any
applicable charges when due, or a combination of two, as described below:
.. If you have Investment account value only and it falls to zero as the
result of withdrawals or the payment of any applicable charges, your
contract will terminate.
.. Your Return of Principal, Highest Anniversary Value, and "Greater of"
Guaranteed minimum death benefits will terminate without value if your
Protected Benefit account value falls to zero as the result of withdrawals
or the payment of any applicable charges. This will happen whether or not
you also have the GMIB or receive Lifetime GMIB payments. Unless you have
amounts allocated to your Investment account, your contract will also
terminate.
.. If you have the RMD Wealth Guard death benefit and your Protected Benefit
account value falls to zero before the owner reaches age 95, you will
receive periodic payments until we have returned the value of the RMD
Wealth Guard death benefit base, less any RMD withdrawals previously taken
from the Protected Benefit account before it fell to zero. We will treat
this as a period certain annuity for the period measured from the owner's
age when the Protected Benefit account value falls to zero to age 95. Your
contract will terminate, unless you have amounts allocated to the
Investment account. Any remaining RMD payments from the Investment account
will continue uninterrupted. The period certain annuity, which will begin
one modal period from the date the Protected Benefit account falls to zero,
will be treated as a
60
DETERMINING YOUR CONTRACT'S VALUE
separate annuity contract for purposes of the required minimum distribution
rules. Any remaining RMD payments from the entire contract must be taken
from the Investment account in the calendar year the Protected Benefit
account falls to zero. See "RMD Wealth Guard death benefit" in "Contract
features and benefits" earlier in this Prospectus; as well as "Tax
information" later in the Prospectus for more information.
.. If you have the GMIB and your Protected Benefit account value falls to zero
as the result of the payment of any applicable charges or a withdrawal that
is not an Excess withdrawal, you will receive Lifetime GMIB payments if the
no lapse guarantee is still in effect, in accordance with the terms of the
GMIB. Unless you have amounts allocated to your Investment account, your
contract will also terminate.
.. If your Protected Benefit account value falls to zero due to an Excess
withdrawal, your GMIB will terminate and you will not receive Lifetime GMIB
payments. Unless you have amounts allocated to your Investment account,
your contract will also terminate.
Certain withdrawals, even one that does not cause your Total account value to
fall to zero, will be treated as a request to surrender your contract and
terminate your Guaranteed minimum death benefit. See "Withdrawals treated as
surrenders" in "Accessing your money."
As discussed earlier in this Prospectus, we reserve the right to discontinue or
limit your ability to make subsequent contributions to the
contract or subsequent transfers or contributions to the Protected Benefit
account variable investment options, either directly or through the Special DCA
program. If we exercise this right, you will not have the ability to fund the
contract and any Guaranteed benefits in order to avoid contract and/or
Guaranteed benefit termination.
Withdrawals and/or deductions of charges during or following a period of poor
market performance in which your account values decrease, increases the
possibility that such a withdrawal or deduction could cause your account values
to fall to zero.
61
DETERMINING YOUR CONTRACT'S VALUE
3. Transferring your money among investment options
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TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your Total account value among the investment options, subject
to the following:
.. You may not transfer any amount to the Special DCA program.
.. Amounts allocated to the Investment account variable investment options or
guaranteed interest option can be transferred among the Investment account
variable investment options. If you elect the "Greater of" GMDB, you may
transfer amounts allocated to the Investment account variable investment
options and the guaranteed interest option to the Protected Benefit account
variable investment options until the contract date anniversary following
owner age 70. If you do not elect the "Greater of" GMDB and you select the
GMIB, you may transfer amounts allocated to the Investment account variable
investment options and the guaranteed interest option to the Protected
Benefit account variable investment options until the contract date
anniversary following owner age 80. Transfers into your Protected Benefit
account will be allocated in accordance with your allocation instructions
on file. See the limitations on amounts that may be transferred out of the
guaranteed interest option below.
.. If you elect the RMD Wealth Guard death benefit, you may transfer amounts
allocated to the Investment account variable investment options and the
guaranteed interest option to the Protected Benefit account variable
investment options at any time prior to your 71st birthday or your first
RMD withdrawal whichever is earlier.
.. Transfers are also subject to the limitations described below:
-- If you are under age 66, you may transfer 100% of your Investment account
value variable investment options to the Protected Benefit account
variable investment options. If you are age 66 or older, the maximum
amount you may transfer to the Protected Benefit account is equal to the
Investment account value as of the transaction date minus your total
contributions to the Investment account from age 66 through age 70.
For example, assume you are 68 years old and your Investment account
value on the date of your transfer request is $100,000. Further assume
that your total contributions to the Investment account from age 66 to 68
were equal to $20,000. The maximum amount you may transfer from the
Investment account variable investment options to the Protected Benefit
account variable investment options would be equal to $80,000 ($100,000 -
$20,000).
.. Amounts invested in the Protected Benefit account variable investment
options can only be transferred among the Protected Benefit account
variable investment options. Transfers out of the Protected Benefit account
variable investment options into the Investment account variable investment
options or guaranteed interest option are not permitted. However, if the
owner elects to drop all Guaranteed benefits, the entire Protected Benefit
account value must be withdrawn from the contract or transferred into the
Investment account variable investment options or guaranteed interest
option. See "Dropping or changing your Guaranteed benefits" in "Contract
features and benefits" earlier in this Prospectus. See the limitations on
amounts that may be transferred into the guaranteed interest option below.
ONCE A WITHDRAWAL IS TAKEN FROM YOUR PROTECTED BENEFIT ACCOUNT, YOU CANNOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR PROTECTED BENEFIT ACCOUNT. YOU MAY,
HOWEVER, BE ABLE TO CONTINUE TO MAKE TRANSFERS FROM YOUR INVESTMENT ACCOUNT
TO THE PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS UNTIL SUCH
TIME YOU MAKE A SUBSEQUENT CONTRIBUTION TO YOUR INVESTMENT ACCOUNT AT WHICH
POINT TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT WILL NO LONGER BE
AVAILABLE. A subsequent contribution received by us in the first 90
calendar days after your contract is issued will not be counted towards
shutting down transfers to your Protected Benefit account. See "How
withdrawals affect your Guaranteed benefits" in "Contract features and
benefits" earlier in this Prospectus.
.. You may not transfer any amount to the AXA Ultra Conservative Strategy
investment option.
.. Beginning in the contract year that follows the contract year in which you
first fund your Protected Benefit account and until the contract date
anniversary through age 70, you may elect to have 100% of your Protected
Benefit account value in the AXA Ultra Conservative Strategy investment
option transferred out and allocated according to your allocation
instructions on file for the Protected Benefit account. You may only
initiate this transfer once per contract year and you must make this
election using our required form. This election is called the ATP exit
option. See ''Asset transfer program (''ATP'')'' in ''Contract features and
benefits'' for more information.
.. A transfer into the guaranteed interest option will not be permitted if
such transfer would result in more than 25% of the Total account value
being allocated to the guaranteed interest option, based on the Total
account value as of the previous business day. This restriction is waived
for amounts transferred from a dollar cost averaging program into the
guaranteed interest option.
.. We reserve the right to restrict transfers into and among variable
investment options, including limitations on the number, frequency, or
dollar amount of transfers.
.. We may charge a transfer charge for any transfers in excess of 12 transfers
in a contract year. For more information, see "Transfer charge" under
"Charges that AXA Equitable deducts" in "Charges and expenses" later in
this Prospectus.
.. For transfer restrictions regarding disruptive transfer activity, see
"Disruptive transfer activity" below.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
.. The maximum amount that may be transferred from the guaranteed interest
option to any investment option (including amounts transferred pursuant to
the fixed-dollar option and interest sweep option dollar cost averaging
programs described under "Allocating your contributions" in "Contract
features and benefits" earlier in this Prospectus) in any contract year is
the greatest of:
(a)25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or
(b)the total of all amounts transferred at your request from the guaranteed
interest option to any of the investment options in the prior contract
year; or
(c)25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you by
way of a supplement to this Prospectus. We will also tell you at least 45 days
in advance of the day that we intend to reimpose the transfer restrictions.
When we reimpose the transfer restrictions, if any dollar cost averaging
transfer out of the guaranteed interest option causes a violation of the 25%
outbound restriction, that dollar cost averaging program will be terminated for
the current contract year. A new dollar cost averaging program can be started
in the next or subsequent contract years.
<R>
You may request a transfer in writing (using our specific form), or through
Online Account Access. You must send in all written transfer requests on the
specific form we provide directly to our processing office. We will confirm all
transfers in writing.
</R>
Please see "Allocating your contributions" in "Contract features and benefits"
for more information about your role in managing your allocations.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed to accommodate programmed
transfers, frequent transfers or transfers that are large in relation to the
total assets of the underlying Portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying Portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a Portfolio to maintain larger amounts of cash or to liquidate
Portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a Portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the Portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a Portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a Portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than Portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
Portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying Portfolios for more information on how
Portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying Portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all contract owners; and (4) these procedures
do not apply to the AXA Ultra Conservative Strategy Portfolio.
We offer investment options with underlying Portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying Portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
Portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each Portfolio on a daily
basis. On any day when a Portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a contract is identified in connection with potentially disruptive
transfer activity for the first time, a letter is sent to the contract owner
explaining that there is a policy against disruptive transfer activity and that
if such activity continues certain transfer privileges may be eliminated. If
and when the contract owner is identified a second time as engaged in
potentially disruptive transfer activity under the contract, we currently
prohibit the use of voice, fax and automated transaction services. We currently
apply such action for the remaining life of each affected contract. We or a
trust may change the definition of potentially disruptive transfer activity,
the monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
Each unaffiliated trust may have its own policies and procedures regarding
disruptive transfer activity. If an unaffiliated trust advises us that there
may be disruptive activity from one of our contract owners, we will work with
the unaffiliated trust to review contract owner trading activity. Each trust
reserves the right to reject a transfer that it believes, in its sole
discretion, is disruptive (or potentially disruptive) to the management of one
of its Portfolios. Please see the prospectuses for the trusts for more
information.
It is possible that a trust may impose a redemption fee designed to discourage
frequent or disruptive trading by contract owners. As of the date of this
Prospectus, the trusts had not implemented such a fee. If a redemption fee is
implemented by a trust, that fee, like any other trust fee, will be borne by
the contract owner.
Contract owners should note that it is not always possible for us and the
underlying trusts to identify and prevent disruptive transfer activity. In
addition, because we do not monitor for all frequent trading at the separate
account level, contract owners may engage in frequent trading which may not be
detected, for example, due to low net inflows or outflows on the particular
day(s). Therefore, no assurance can be given that we or the trusts will
successfully impose restrictions on all potentially disruptive transfers.
Because there is no guarantee that disruptive trading will be stopped, some
contract owners may be treated differently than others, resulting in the risk
that some contract owners may be able to engage in frequent transfer activity
while others will bear the effect of that frequent transfer activity. The
potential effects of frequent transfer activity are discussed above.
REBALANCING AMONG YOUR INVESTMENT ACCOUNT VARIABLE INVESTMENT OPTIONS AND
GUARANTEED INTEREST OPTION
We offer two rebalancing programs that you can use to automatically reallocate
your Investment account value among your Investment account variable investment
options and the guaranteed interest option. Option I allows you to rebalance
your Investment account value among the Investment account variable investment
options. Option II allows you to rebalance your Investment account value among
the Investment account variable investment options and the guaranteed interest
option.
To enroll in one of our rebalancing programs, you must notify us in writing or
through Online Account Access and tell us:
(a)the percentage you want invested in each investment option (whole
percentages only), and
(b)how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract date. If you elect quarterly
rebalancing, the rebalancing in the last quarter of the contract year will
occur on the contract date anniversary.
Once it is available, you may elect or terminate the rebalancing program at any
time. You may also change your allocations under the program at any time. Once
enrolled in the rebalancing program, it will remain in effect until you
instruct us in writing to terminate the program. Requesting an investment
option transfer while enrolled in our rebalancing program will not
automatically change your allocation instructions for rebalancing your account
value. This means that upon the next scheduled rebalancing, we will transfer
amounts among your investment options pursuant to the allocation instructions
previously on file for your program. Changes to your allocation instructions
for the rebalancing program (or termination of your enrollment in the program)
must be in writing and sent to our processing office. Termination requests can
be made online through Online Account Access. See "How to reach us" in "Who is
AXA Equitable?" earlier in this Prospectus. There is no charge for the
rebalancing feature.
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REBALANCING DOES NOT ASSURE A PROFIT OR PROTECT AGAINST LOSS. YOU SHOULD
PERIODICALLY REVIEW YOUR ALLOCATION PERCENTAGES AS YOUR NEEDS CHANGE. YOU MAY
WANT TO DISCUSS THE REBALANCING PROGRAM WITH YOUR FINANCIAL PROFESSIONAL BEFORE
ELECTING THE PROGRAM.
--------------------------------------------------------------------------------
While your rebalancing program is in effect, we will transfer amounts among the
applicable investment options so that the percentage of your Investment account
value that you specify is invested in each option at the end of each
rebalancing date.
If you select Option II, you will be subject to our rules regarding transfers
from the guaranteed interest option to the Investment account variable
investment options. These rules are described in "Transferring your account
value" earlier in this section. Under Option II, a transfer into or out of the
guaranteed interest option to initiate the rebalancing program will not be
permitted if such transfer would violate these rules. If this occurs, the
rebalancing program will not go into effect.
You may not elect Option II if you are participating in any dollar cost
averaging program. You may not elect Option I if you are participating in the
general dollar cost averaging program.
Our optional rebalancing programs are not available for amounts allocated to
the Protected Benefit account variable investment options. For information
about rebalancing among the Protected Benefit account variable investment
options, see the section below.
REBALANCING AMONG YOUR PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS
You can rebalance your Protected Benefit account value by submitting a request
to rebalance as of the date we receive your request, however, scheduled
recurring rebalancing is not available. Therefore, any subsequent rebalancing
transactions would require a subsequent rebalancing request. Your rebalance
request must indicate the percentage you want rebalanced in each investment
option (whole percentages only). You can rebalance only to the investment
options available in your Protected Benefit account.
When we rebalance your Protected Benefit account, we will transfer amounts
among the investment options so that the percentage of your account value in
each option at the end of the rebalancing date matches the most recent
allocation instructions that we have on file. Rebalancing does not assure a
profit or protect against loss, so you should periodically review your
allocation percentages as your needs change. Amounts in the AXA Ultra
Conservative Strategy investment option are excluded from rebalancing.
SYSTEMATIC TRANSFER PROGRAM
Under the systematic transfer program, you may elect to have amounts from the
Investment account variable investment options
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
and the guaranteed interest option transferred to the Protected Benefit account
variable investment options. This can be done on a quarterly, semi-annual or
annual basis. There are four transfer options available under this program.
--------------------------------------------------------------------------------
PLEASE CHECK WITH YOUR FINANCIAL PROFESSIONAL OR ONE OF OUR CUSTOMER SERVICE
REPRESENTATIVES REGARDING THE AVAILABILITY OF OUR SYSTEMATIC TRANSFER PROGRAM
OPTIONS.
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(i)FIXED DOLLAR. Under this option, you can transfer a specified dollar amount,
subject to a minimum of $50. The dollar amount you select cannot be changed
while the program is in effect. If your Investment account value on the
transfer date is $50 or less, and you have not elected the systematic
transfer program to be in effect for a specified period of time, we will
transfer the entire amount and the program will end.
(ii)FIXED PERCENTAGE. Under this program, you can transfer a specified
percentage of your Investment account as of the date of the transfer. The
percentage you select cannot be changed while the program is in effect. If
your Investment account value on the transfer date is $50 or less, and you
have not elected the systematic transfer program to be in effect for a
specified period of time, we will transfer the entire amount and the
program will end.
(iii)TRANSFER THE GAINS. Under this option, you can transfer amounts in excess
of your "total net contributions" (described below) made to the Investment
account as of the date of the transfer. The calculated amount to be
transferred must be $50 or greater in order for the transfer to occur. If
you elect this option after issue, the first transfer will be for all
gains in the Investment account as of the date of the transfer. If there
are no gains in the Investment account, a transfer will not occur.
(iv)TRANSFER THE GAINS IN EXCESS OF A SPECIFIED PERCENTAGE. Under this option,
you can transfer amounts in excess of a specified percentage of your "total
net contributions" (described below) made to the Investment account as of
the date of the sweep. There is no restriction on the maximum percentage
you can request, however, the specified percentage cannot be changed while
the program is in effect. Also, the calculated amount to be transferred
must be $50 or greater in order for the transfer to occur. If you elect
this option after issue, the first transfer will be for all gains in the
Investment account in excess of a specified percentage. If there are no
gains in the Investment account, a transfer will not occur.
For all options, you may elect the systematic transfer program to be in effect
for a specified period of time. If you elect the systematic transfer program to
be in effect for a specified period of time, the program will continue in
effect until the end of the specified period of time or, if earlier, the date
you are no longer eligible to transfer amounts into the Protected Benefit
account. Any contributions made to the Investment account while the program is
in effect will be subject to transfer or sweep to the Protected Benefit account
until the date you are no longer eligible to transfer amounts into the
Protected Benefit account.
For options (iii) and (iv), the "net contribution amount" is the total
contributions made to the Investment account, adjusted for withdrawals and all
transfers to the Protected Benefit account. All subsequent contributions made
to the Investment account will increase the net contribution amount by the
dollar amount of the contribution as of the transaction date of the
contribution. All withdrawals and ad hoc transfers from the Investment account
will be withdrawn or transferred -- gains first. The net contribution amount
will only be reduced by a withdrawal or transfer to the extent that the
withdrawal or transfer is in excess of "gains" in the Investment account on the
date of the transfer. For this purpose, "gains" is equal to the Investment
account value immediately prior to the withdrawal or transfer in excess of net
contribution.
Please note the following under the Systematic transfer program:
.. As noted above, transfers can be made on a quarterly, semi-annual or annual
basis. You can choose a start date for transfers but it cannot be later
than the 28th day of the month or later than one year from the date you
enroll. The frequency for transfers cannot be changed while the program is
in effect. If you decide you want to change the frequency of transfers, you
must cancel your current program and re-enroll in the program.
.. Each transfer will be pro-rated from all of your investment options in the
Investment account, except for amounts allocated to the Special DCA
program. If either option (iii) or (iv) is selected and there are amounts
allocated to the Special DCA program, the calculation of the sweep will use
your Investment account value (including any amounts in the Special DCA
program that are designated for future transfers to the Investment
account). However, once the amount to be transferred is calculated, the
transfer will be pro-rated from the Investment account variable investment
options and the Guaranteed interest option. No amounts will be transferred
from the Special DCA program.
.. Under the Fixed percentage option, the calculation of the transfer will not
include any amounts in the Special DCA program and the transfer will be
pro-rated from the Investment account variable investment options and the
guaranteed interest option.
.. All transfers to the Protected Benefit account variable investment options
will be in accordance with your allocation instructions on file.
.. An ad hoc transfer from the Investment account to the Protected Benefit
account that is not part of the Systematic transfer program will not
terminate the program. Please note, however, that a transfer under options
(iii) or (iv) could decrease the net contribution amount that is used to
determine the gains on each transfer date.
.. You can only have one Systematic transfer program in effect at any one time.
.. You can cancel your Systematic transfer program at any time.
.. Transfers under your Systematic transfer program do not count toward the
transfers under the contract that may be subject to a transfer charge.
.. The Systematic transfer program is available with any dollar cost averaging
program available under your contract.
.. You can elect a rebalancing program for your Investment account value while
the Systematic transfer program is in effect. If a rebalancing transaction
date and Systematic transfer program transaction date happen to be on the
same Business day, the transfer under the Systematic transfer program will
be processed first. Then, we will process the rebalancing of your
Investment account value.
65
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
.. If all Guaranteed benefits are dropped post-funding of the Protected
Benefit account, your Systematic transfer program will be terminated.
.. If we exercise our right to discontinue contributions and/or transfers to
the Protected Benefit account variable investment options, or if you are
unable to make subsequent contributions and/or transfers to the Protected
Benefit account variable investment options due to any other contribution
or transfer restriction, your Systematic transfer program will be
terminated.
.. If you make a contribution to your Investment account following your first
withdrawal from the Protected Benefit account, your Systematic transfer
program will be terminated.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
4. Accessing your money
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WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your Total account value before payments
begin. The table below shows the methods available under each type of contract.
Your account value could become insufficient due to withdrawals and/or poor
market performance. For information on how withdrawals affect your Guaranteed
benefits and potentially cause your contract to terminate, please see "Effect
of your account values falling to zero" in "Determining your contract's value"
earlier in this Prospectus and "How withdrawals affect your Guaranteed
benefits" in "Contract features and benefits" earlier in this Prospectus.
If you take a withdrawal from the Protected Benefit account variable investment
options, the withdrawal may impact your existing benefits and you will no
longer be permitted to make subsequent contributions into the Protected Benefit
account variable investment options. The first withdrawal from your Protected
Benefit account may also affect the applicable Roll-up rate used in calculating
certain Guaranteed benefits. See "How you can purchase and contribute to your
contract" and "Annual Roll-up rate" and "Deferral Roll-up rate" under
"Guaranteed minimum income benefit" in "Contract features and benefits" earlier
in this Prospectus and "Rules regarding contributions to your contract" in
Appendix IX later in this Prospectus for more information.
---------------------------------------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
--------------------------------------------------
PRE-AGE LIFETIME
AUTO- 59 1/2 REQUIRED
MATIC SUB- MINIMUM
PAYMENT SYSTE- STANTIALLY DISTRIBU-
CONTRACT PLANS/(1)/ PARTIAL MATIC/(2)/ EQUAL TION
---------------------------------------------------------------------------------------------------------------
NQ Yes Yes Yes No No
---------------------------------------------------------------------------------------------------------------
Traditional IRA Yes Yes Yes Yes Yes
---------------------------------------------------------------------------------------------------------------
Roth IRA Yes Yes Yes Yes No
---------------------------------------------------------------------------------------------------------------
QP/(3)/ Yes Yes No No No
---------------------------------------------------------------------------------------------------------------
(1)Available for contracts with GMIB only.
(2)Available for withdrawals from your Investment account variable investment
options and guaranteed interest option only.
(3)All payments are made to the plan trust as the owner of the contract. See
"Appendix II: Purchase considerations for QP contracts" later in this
Prospectus.
AUTOMATIC PAYMENT PLANS
(FOR CONTRACTS WITH GMIB)
You may take automatic withdrawals from your Protected Benefit account under
either the Maximum payment plan or the Customized payment plan, as described
below. Under either plan, you may take withdrawals on a monthly, quarterly or
annual basis. The first payment date cannot be more than one full payment
period from the date the enrollment form is received at our processing office.
If a later date is specified, we will not process your enrollment form. You may
change the payment frequency of your withdrawals at any time, and the change
will become effective on the next contract date anniversary.
You may elect either the Maximum payment plan or the Customized payment plan
beginning in the contract year that follows the contract year in which you
first fund your Protected Benefit account. You must wait at least 28 days from
enrollment in a plan before automatic payments begin. We will make the
withdrawals on any day of the month that you select as long as it is not later
than the 28th day of the month. However, you must elect a date that is more
than three calendar days prior to your contract date anniversary.
Each scheduled payment cannot be less than $50. If scheduled payments would be
less than $50, the program will be terminated. This applies even if an RMD
withdrawal causes the reduction of scheduled amounts below $50. Scheduled
payments are taken pro rata from all Protected Benefit account variable
investment options (including the AXA Ultra Conservative Strategy investment
option). Scheduled payments are not taken out of the Special DCA programs.
If you take a partial withdrawal while an automatic payment plan is in effect:
After scheduled payments begin, a partial withdrawal (together with all
withdrawals to date in the contract year) that exceeds the Annual withdrawal
amount will terminate the program. You may set up a new program immediately,
but it will not begin until the next contract year.
After scheduled payments begin, a partial withdrawal (together with all
withdrawals to date in the contract year) that is less than or equal to the
Annual withdrawal amount may cause payments to be suspended until the next
contract year once the full Annual withdrawal amount for that contract year has
been paid out. After a partial withdrawal is taken, you will continue to
receive scheduled payments without a disruption in payments until the Annual
withdrawal amount is paid out. After the full Annual withdrawal amount has been
paid out, the program will be suspended for the remainder of the contract year.
MAXIMUM PAYMENT PLAN
If you have funded the GMIB, the Maximum payment plan is available beginning in
the contract year that follows the contract year in which you first fund your
Protected Benefit account. Under the Maximum payment plan, you can request us
to pay you the Annual withdrawal amount as scheduled payments. The payment
amount may increase or decrease annually as the result of a change in the
Annual Roll-up rate. Also, the payment amount may increase as the result of a
reset of your GMIB benefit base.
For monthly or quarterly payments, the Annual withdrawal amount will be divided
by 12 or 4 (as applicable). The program is designed to pay the entire Annual
withdrawal amount in each contract year, regardless of whether the program is
started at the beginning of the contract year or on some other date during the
contract year. Consequently, a program that commences on a date other than
during the first month or quarter, as applicable, following a contract date
anniversary will account for any payments that would have been
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ACCESSING YOUR MONEY
made since the beginning of the contract year, as if the program were in effect
on the contract date anniversary. A catch-up payment will be paid for the
number of payment dates that have elapsed from the beginning of the contract
year up to the date the enrollment is processed. The catch-up payment is made
immediately when the Maximum payment plan enrollment is processed. Thereafter,
scheduled payments will begin one payment period later.
A partial withdrawal taken in the same contract year prior to enrollment in the
Maximum payment plan will have the following effect:
.. If the amount of the partial withdrawal is more than the Annual withdrawal
amount, we will not process your enrollment form.
.. If the amount of the partial withdrawal is less than the Annual withdrawal
amount, then the partial withdrawal will be factored into the Maximum
payment plan payments for that contract year.
.. Annual frequency: If the amount of the partial withdrawal is less than the
Annual withdrawal amount, the remaining Annual withdrawal amount is paid on
the date the enrollment form is processed or a later date selected by the
owner. You may not select a date later than the next contract date
anniversary.
.. A partial withdrawal that is taken after you are enrolled in the program
but before the first payment is made terminates the program.
CUSTOMIZED PAYMENT PLAN
--------------------------------------------------------------------------------
PLEASE CHECK WITH YOUR FINANCIAL PROFESSIONAL OR ONE OF OUR CUSTOMER SERVICE
REPRESENTATIVES REGARDING THE AVAILABILITY OF OUR CUSTOMIZED PAYMENT PLAN
OPTIONS.
--------------------------------------------------------------------------------
If you have funded the GMIB, the Customized payment plan is available beginning
in the contract year that follows the contract year in which you first fund
your Protected Benefit account. Currently, any of the following five Customized
payment plan options can be elected. For options that are based on a withdrawal
percentage, the specified percentage is applied to your GMIB benefit base as of
the most recent contract date anniversary. See "Annual withdrawal amount" in
"Guaranteed minimum income benefit" under "Contract features and benefits"
earlier in this Prospectus.
The following payment options can be elected under the Customized payment plan.
For options (i)-(iii) and (v), your payment may increase or decrease annually
as the result of a change in the Annual Roll-up rate. Also, the payment amount
may increase as the result of a reset of your GMIB benefit base.
(i)Guaranteed minimum percentage: You can request us to pay you as scheduled
payments a withdrawal amount based on a withdrawal percentage that is fixed
at the lowest guaranteed Annual Roll-up rate of 4% under the GMIB Two-Year
Lock.
(ii)Fixed percentage below the Annual Roll-up rate: You can request us to pay
you as scheduled payments a withdrawal amount based on the applicable
Annual Roll-up rate MINUS a fixed percentage for each contract year. If in
any contract year the calculation would result in a payment that is less
than 4%, your withdrawal percentage for that contract year will be 4%. In
other words, the withdrawal percentage can never be less than 4%. Your
percentage requests must be in increments of 0.50%.
(iii)Fixed percentage: You can request us to pay you as scheduled payments a
withdrawal amount based on a fixed percentage. The percentage may not
exceed the Annual Roll-up rate in any contract year. If in any contract
year the fixed percentage is greater than your Annual Roll-up rate for
that contract year, we will pay you only the Annual withdrawal amount as
scheduled payments for that contract year. Your percentage requests must
be in increments of 0.50%.
(iv)Fixed dollar amount: You can request us to pay you as scheduled payments a
fixed dollar withdrawal amount each contract year. The fixed dollar amount
may not exceed your Annual withdrawal amount in any contract year. If in
any contract year the fixed dollar amount is greater than your Annual
withdrawal amount, we will pay you as scheduled payments only your Annual
withdrawal amount.
(v)Fixed dollar amount or fixed percentage from both your Protected Benefit
account and your Investment account: You can request us to pay you a fixed
dollar amount or fixed percentage as scheduled payments that may be greater
than your Annual withdrawal amount. The Annual withdrawal amount will be
withdrawn from your Protected Benefit account. We will pay you any requested
amount that is in excess of your Annual withdrawal amount from your
Investment account. If in any contract year there is insufficient value in
the Investment account to satisfy your requested fixed dollar or fixed
percentage withdrawal, we will pay you the maximum amount that can be
withdrawn from your Annual withdrawal amount and your Investment account as
scheduled payments for that contract year even though this amount will be
less than you requested.
For examples on how the Automatic payment plans work, please see Appendix VI.
For examples of how withdrawals affect your Guaranteed benefit bases, see
Appendix VII later in this Prospectus.
If you elect the ATP exit option while the Customized payment plan is in effect
and the GMIB benefit base is adjusted, the Customized payment plan will operate
in the same manner as though a partial withdrawal had been taken and may cause
payments to be suspended in the next contract year if a scheduled payment would
exceed the Annual withdrawal amount.
PARTIAL WITHDRAWALS AND SURRENDERS
You may take partial withdrawals from your contract at any time. All withdrawal
requests must be made on a specific form provided by us. Please see "How to
reach us" under "Who is AXA Equitable?" earlier in this Prospectus for more
information. Currently, the minimum withdrawal amount is $300. For discussion
on how amounts can be withdrawn, see "How withdrawals are taken from your Total
account value" below. You can also surrender your contract at any time.
Any request for a partial withdrawal that results in an Excess withdrawal will
suspend your participation in either the Maximum payment plan or Customized
payment plan.
SYSTEMATIC WITHDRAWALS
(ALL CONTRACTS EXCEPT QP)
You may take systematic withdrawals of a particular dollar amount, a particular
percentage of, or a specific investment option from your Investment account
variable investment options and guaranteed
68
ACCESSING YOUR MONEY
interest option. If there is insufficient account value in the specific
investment option you elected, your systematic withdrawals will continue from
the remaining Investment account variable investment option or the guaranteed
interest option on a pro rata basis.
You may elect a systematic withdrawal option up to 100% of your Investment
account value. HOWEVER, IF YOU ELECT A SYSTEMATIC WITHDRAWAL OPTION IN EXCESS
OF THESE LIMITS, AND MAKE A SUBSEQUENT CONTRIBUTION TO YOUR INVESTMENT ACCOUNT,
THE SYSTEMATIC WITHDRAWAL OPTION WILL BE TERMINATED. You may then elect a new
systematic withdrawal option within the limits described in the preceding
paragraph.
If you elect our systematic withdrawal program, you may request to have your
withdrawals made on any day of the month, subject to the following restrictions:
.. You must select a date that is more than three calendar days prior to your
contract date anniversary; and
.. You cannot select the 29th, 30th or 31st.
If you do not select a date, we will make the withdrawals the same day of the
month as the day we receive your request to elect the program, subject to the
same restrictions listed above. If you have also elected a GMIB Automatic
payment plan, unless you instruct us otherwise, your systematic withdrawal
option withdrawals will be on the same date as your automatic payment plan. You
must wait at least 28 days after your contract is issued before your systematic
withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59 1/2 and 70 1/2.
If the systematic withdrawal option is elected with an Automatic payment plan,
the payment frequency will be the same as the Automatic payment plan.
You may change the payment frequency, or the amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
partial withdrawal. You can cancel the systematic withdrawal option at any time.
If you take a partial withdrawal while you are taking systematic withdrawals,
your systematic withdrawal option will be terminated. You may then elect a new
systematic withdrawal option.
SUBSTANTIALLY EQUAL WITHDRAWALS
(TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your contract without triggering the 10% additional federal
income tax penalty, which normally applies to distributions made before age
59 1/2. Substantially equal withdrawals are also referred to as "72(t)
exception withdrawals". See "Tax information" later in this Prospectus. The
substantially equal withdrawals option is available only if 100% of your Total
account value is allocated to either the Protected Benefit account or the
Investment account. This option is not available if your Total account value is
split between the Protected Benefit account and the Investment account at the
time you elect this option. If you elect to take substantially equal
withdrawals, you may not elect any other automated withdrawal program. Once you
have elected substantially equal withdrawals, amounts can be allocated to
either or both the Investment account and the Protected Benefit account.
If you elect our substantially equal withdrawals option, we calculate the
permissible distributions for you using one of the IRS-approved methods for
doing this. You should be aware that the portion of any withdrawal from the
Protected Benefit account that is in excess of the Annual withdrawal amount
will reduce the benefit base(s) for your Guaranteed benefits on a pro rata
basis as of the date of the withdrawal. See "How withdrawals affect your
Guaranteed benefits" and "Annual withdrawal amount" under "Guaranteed minimum
income benefit" in "Contract features and benefits" for more information.
Our substantially equal withdrawals option is not the exclusive method of
meeting the penalty exception. After consultation with your tax adviser, you
may decide to use any permissible method. If you do not elect our substantially
equal withdrawals option, you would have to compute withdrawal amounts yourself
and request partial withdrawals.
Once you begin to take substantially equal withdrawals, you should not do any
of the following until after the later of age 59 1/2 or five full years after
the first withdrawal: (i) stop them; (ii) change the pattern of your
withdrawals (for example, by taking an additional partial withdrawal); or
(iii) contribute any more to the contract. If you alter the pattern of
withdrawals, you may be liable for the 10% federal tax penalty that would have
otherwise been due on prior withdrawals made under this option and for any
interest on the delayed payment of the penalty.
Making additional contributions to the contract is treated as changing the
pattern of withdrawals. It does not matter whether the additional contributions
are made by direct transfer or rollover; nor does it matter if they are made to
the Investment account or the Protected Benefit account. Because the penalty
exception method does not permit additional contributions or payment changes to
restore any Guaranteed benefit base under the contract, you and your tax
adviser should consider carefully whether you should elect the Substantially
equal withdrawals option or any other method of penalty exception withdrawals
if you have allocated or intend to allocate amounts to the Protected Benefit
account value after starting Substantially equal withdrawals.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may make a one-time change, without penalty,
from one of the IRS-approved methods of calculating fixed payments to another
IRS-approved method (similar to the required minimum distribution rules) of
calculating payments, which vary each year.
If the contract is eligible, you may elect to take substantially equal
withdrawals at any time before age 59 1/2. We will make the withdrawal on any
day of the month that you select as long as it is not later than the 28th day
of the month. However, you must elect a date that is more than three calendar
days prior to your contract date anniversary. We will calculate the amount of
your substantially equal withdrawals using the IRS-approved method we offer.
The payments will be made monthly, quarterly or annually as you select. These
payments will continue until (i) we receive written notice from you to cancel
this option; (ii) you take an additional partial withdrawal; or
69
ACCESSING YOUR MONEY
(iii) you contribute any more to the contract. You may elect to start receiving
substantially equal withdrawals again, but the payments may not restart in the
same calendar year in which you took a partial withdrawal or added amounts to
the contract. We will calculate the new withdrawal amount.
BECAUSE THE IRS-APPROVED PENALTY EXCEPTION METHODS DO NOT PERMIT YOU TO ADD
CONTRIBUTIONS OR CHANGE PAYMENTS TO RESTORE THE GUARANTEED BENEFIT BASE(S), AS
NOTED ABOVE, YOU AND YOUR TAX ADVISER SHOULD CONSIDER CAREFULLY WHETHER YOU
SHOULD ELECT THE SUBSTANTIALLY EQUAL WITHDRAWALS OPTION OR ANY OTHER METHOD OF
PENALTY EXCEPTION WITHDRAWALS IF YOU HAVE ALLOCATED ANY AMOUNTS TO THE
PROTECTED BENEFIT ACCOUNT. PLEASE NOTE THAT ELECTING TO TAKE SUBSTANTIALLY
EQUAL WITHDRAWALS FROM A CONTRACT WITH THE RMD WEALTH GUARD DEATH BENEFIT MAY
LIMIT THE UTILITY OF THAT BENEFIT. SEE THE DISCUSSION OF THE "RMD WEALTH GUARD
DEATH BENEFIT" UNDER "CONTRACT FEATURES AND BENEFITS" EARLIER IN THIS
PROSPECTUS.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(TRADITIONAL IRA CONTRACTS ONLY -- SEE "TAX INFORMATION" LATER IN THIS
PROSPECTUS)
We offer our "Automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. The Automatic RMD service generally offers RMD payments from your
Investment account value. This is not the exclusive way for you to meet these
rules. After consultation with your tax adviser, you may decide to compute RMDs
yourself and request partial withdrawals. Before electing this account-based
withdrawal option, you should consider whether annuitization might be better in
your situation. If you have funded your Guaranteed benefit(s), amounts
withdrawn from the contract to meet RMDs may reduce your benefit base(s) and
may limit the utility for most benefit(s), other than the RMD Wealth Guard
death benefit. Also, the actuarial present value of additional contract
benefits must be added to the Total account value in calculating RMD payments
from annuity contracts funding IRAs, which could increase the amount required
to be withdrawn. Please refer to "Tax information" later in this Prospectus.
This service is not available under QP contracts. All withdrawals from your
Protected Benefit account under a QP contract owned by a defined contribution
plan reduce your RMD Wealth Guard death benefit base on a pro rata basis until
such time as the contract is converted into a IRA. (See "Appendix II: Purchase
considerations for QP contracts" later in this Prospectus).
You may elect this service in the calendar year in which you reach age 70 1/2
or in any later year. The minimum amount we will pay out is $250. Currently,
RMD payments will be made annually. See "Required minimum distributions" in
"Traditional individual retirement annuities (traditional IRAs)" under "Tax
information" later in this Prospectus for your specific type of retirement
arrangement.
This service does not generate automatic RMD payments during the first calendar
year during which your contract is issued. Therefore, if you are making a
rollover or transfer contribution to the contract after
age 70 1/2, you must take any RMDs before the rollover or transfer.
--------------------------------------------------------------------------------
FOR TRADITIONAL IRA CONTRACTS, WE WILL SEND A FORM OUTLINING THE DISTRIBUTION
OPTIONS AVAILABLE IN THE YEAR YOU REACH AGE 70 1/2 (IF YOU HAVE NOT BEGUN YOUR
ANNUITY PAYMENTS BEFORE THAT TIME).
--------------------------------------------------------------------------------
RMDS FOR CONTRACTS WITH GMIB. (TRADITIONAL IRA CONTRACTS ONLY -- SEE "TAX
INFORMATION" LATER IN THIS PROSPECTUS)
<R>
For contracts with GMIB or with GMIB and either the "Greater of" death benefit
or the Highest Anniversary Value death benefit, if you elect our Automatic RMD
service, any lifetime RMD payment we make to you in the first contract year you
fund your Protected Benefit account will reduce your benefit bases on a
dollar-for-dollar basis. In subsequent contract years, if an Automatic RMD
service payment exceeds your Annual withdrawal amount, your benefit bases will
be reduced dollar-for-dollar by the amount of the RMD payment in excess of your
Annual withdrawal amount. For contracts with the Return of Principal death
benefit elected with the GMIB or the Highest Anniversary Value death benefit
elected without the GMIB, all withdrawals, including RMD payments through our
Automatic RMD service, reduce those benefit bases on a pro rata basis. Amounts
from both your Protected Benefit account and Investment account values are used
to determine your lifetime RMD payment each year.
</R>
The no lapse guarantee will not be terminated if a RMD payment using our
Automatic RMD service causes your cumulative withdrawals from the Protected
Benefit account in the contract year to exceed your Annual withdrawal amount.
If you elect either the Maximum payment plan or the Customized payment plan
(together, "automatic payment plans") and our Automatic RMD service, we will
make an extra payment, if necessary, in December that will equal your lifetime
RMD amount less all payments made through your payment date and any scheduled
December payment. The combined Automatic payment plan and RMD payment will not
be treated as an Excess withdrawal if the RMD, together with any withdrawal
taken under one of our automatic plans exceeds your Annual withdrawal amount.
The additional payment will reduce your GMIB benefit base and Roll-up to age 85
benefit base and Highest Anniversary Value benefit base (for contracts with the
"Greater of" death benefit) and Highest Anniversary Value benefit base for
contracts with GMIB and Highest Anniversary GMDB on a dollar-for-dollar basis.
Your Highest Anniversary Value benefit base is always reduced on a pro rata
basis for the Highest Anniversary Value GMDB if the GMIB is not also elected.
If you take any partial withdrawals in addition to your RMD and Automatic
payment plan payments, your applicable Automatic payment plan may be suspended
as discussed above. Any partial withdrawal taken from your Protected Benefit
account may cause an Excess withdrawal. Further, your GMIB benefit base and
Annual withdrawal amount will be reduced.
If you elect our Automatic RMD service and elect to take your Annual withdrawal
amount in partial withdrawals without electing one of our available Automatic
payment plans, we will make a payment, if necessary, in December that will
equal your RMD payment less all withdrawals made through your payment date. If
prior to your payment date you make a partial withdrawal that exceeds your
Annual withdrawal amount, but not your RMD amount, any portion of that partial
withdrawal taken from your Protected Benefit account will be treated as an
Excess withdrawal, as well as any subsequent partial withdrawals taken from
your Protected Benefit account made during the same contract year. However, if
by your payment date your withdrawals have not exceeded your RMD amount, the
RMD payment we make to you will not be treated as an Excess withdrawal.
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ACCESSING YOUR MONEY
Your RMD payment will be withdrawn on a pro rata basis from your Investment
account variable investment options and guaranteed interest option, excluding
amounts in the Special DCA program. If there is insufficient value or no value
in those options, we will withdraw amounts from your Special DCA program. If
there is insufficient value in those options, any additional amount of the RMD
payment or the total amount of the RMD payment will be withdrawn from your
Protected Benefit account variable investment options (including the AXA Ultra
Conservative Strategy investment option). For information on how RMD payments
are taken from your contract see "How withdrawals are taken from your Total
account value" below.
If you do not elect our Automatic RMD service and if your Annual withdrawal
amount is insufficient to satisfy the RMD payment, any additional withdrawal
taken in the same contract year (even one to satisfy your RMD payment) from
your Protected Benefit account will be treated as an Excess withdrawal.
RMDS FOR TRADITIONAL IRA CONTRACTS WITH THE RMD WEALTH GUARD DEATH
BENEFIT. (SEE "TAX INFORMATION" LATER IN THIS PROSPECTUS)
For contracts with the RMD Wealth Guard death benefit, we offer the RMD Wealth
Guard withdrawal service for RMD withdrawals from your Protected Benefit
account to help you meet lifetime required minimum distributions under federal
income tax rules. This is not the exclusive way for you to meet these rules.
After consultation with your tax adviser, you may decide to compute RMDs
yourself. If you enroll in our RMD Wealth Guard withdrawal service, you will be
able to elect to take RMD withdrawals from your Protected Benefit account value
and Investment account value. You may elect the RMD withdrawal service in the
calendar year in which you reach age 701/2 or in any later year. The minimum
amount we will pay out is $50. Withdrawals from the Protected Benefit account
up to your RMD Wealth Guard withdrawal amount will not reduce your RMD Wealth
Guard death benefit base. Excess RMD withdrawals, which are withdrawals in
excess of your RMD Wealth Guard withdrawal amount, will reduce your RMD Wealth
Guard death benefit base on a pro rata basis. RMD payments under our RMD Wealth
Guard withdrawal service can be paid monthly, quarterly or annually. See
"Required minimum distributions" in "Traditional individual retirement
annuities (traditional IRAs)" under "Tax information" later in this Prospectus
for your specific type of retirement arrangement.
Since RMDs are generally not required to be withdrawn from a Roth IRA during
your lifetime, if you convert your traditional IRA to a Roth IRA, before you
convert, you must drop the RMD Wealth Guard death benefit. For information on
dropping this benefit, see "Dropping or changing your Guaranteed benefits" in
"Contract features and benefits", earlier in this prospectus and under Appendix
I.
This service is not available under QP contracts. All withdrawals from your
Protected Benefit account under a QP contract owned by a defined contribution
plan reduce your RMD Wealth Guard death benefit base on a pro rata basis until
such time as the contract is converted into a IRA. (See "Appendix II: Purchase
considerations for QP contracts" later in this Prospectus).
For more information about the RMD Wealth Guard death benefit, see "RMD Wealth
Guard death benefit" under "Contract features and benefits" earlier in this
Prospectus.
HOW WITHDRAWALS ARE TAKEN FROM YOUR TOTAL ACCOUNT VALUE
Unless you specify otherwise, all withdrawals (other than Automatic payment
plan withdrawals and lump sum withdrawals of your Annual withdrawal amount and
substantially equal withdrawals) will be taken on a pro rata basis from your
Investment account variable investment options and guaranteed interest option,
excluding amounts in the Special DCA program. If there is insufficient value or
no value in those options, we will subtract amounts from the Special DCA
program. If there is insufficient value in those options, any additional amount
of the withdrawal required or the total amount of the withdrawal will be
withdrawn from your Protected Benefit account variable investment options
(including the AXA Ultra Conservative Strategy investment option). Any amounts
withdrawn from the Special DCA program that were designated for the Protected
Benefit account variable investment options will reduce your Guaranteed benefit
base(s).
Automatic payment plan withdrawals (other than fixed dollar amount or fixed
percentage withdrawals) and lump sum withdrawals of your Annual withdrawal
amount will always be taken on a pro rata basis only from your Protected
Benefit account variable investment options (including the AXA Ultra
Conservative Strategy investment option).
Lump sum, fixed dollar amount or fixed percentage withdrawals are first taken
on a pro rata basis from your Protected Benefit account variable investment
options (including the AXA Ultra Conservative Strategy investment option). If
there is insufficient value or no value in those options, we will subtract
amounts from your Investment account variable investment options and guaranteed
interest option, excluding amounts in the Special DCA program. If there is
insufficient value or no value in those options, we will subtract amounts from
the Special DCA program.
Substantially equal withdrawals are taken on a pro rata basis from your Total
account value. However, if after you have elected the substantially equal
withdrawals option your Total account value is split between the Protected
Benefit account value and the Investment account value, your substantially
equal withdrawals will be taken on a pro rata basis from your Investment
account variable investment options and guaranteed interest option, excluding
amounts in the Special DCA program. If there is insufficient value or no value
in those options, we will subtract amounts from the Special DCA program. If
there is insufficient value in those options, any additional amount of the
withdrawal required or the total amount of the withdrawal will be withdrawn
from your Protected Benefit account variable investment options (including the
AXA Ultra Conservative Strategy investment option). Any amounts withdrawn from
the Special DCA program that were designated for the Protected Benefit account
variable investment options will reduce your Guaranteed benefit base(s).
You may choose to have withdrawals subtracted from your contract based on the
following options:
(1)Take the entire withdrawal on a pro rata basis from the Protected Benefit
account variable investment options (including the AXA Ultra Conservative
Strategy investment option); or
(2)Take the entire withdrawal from the Investment account value, either on a
pro rata basis, or specifying which Investment account variable investment
options and/or guaranteed interest option the withdrawal should be taken
from;
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ACCESSING YOUR MONEY
(3)Request a withdrawal to be taken from the Protected Benefit account variable
investment options and take the remaining part of the withdrawal from the
Investment account variable investment options. You must specify the
investment options for the Investment account value. The withdrawal from the
Protected Benefit account variable investment options will be taken on a pro
rata basis (including the AXA Ultra Conservative Strategy investment
option); or
(4)Request a withdrawal to be taken from the Investment account variable
investment options and take the remaining part of the withdrawal from the
Protected Benefit account variable investment options. You must specify the
investment options for the Investment account value. The withdrawal from the
Protected Benefit account variable investment options will be taken on a pro
rata basis (including the AXA Ultra Conservative Strategy investment option).
For more information on how withdrawals affect your Guaranteed benefits, see
"How withdrawals affect your Guaranteed benefits" in "Contract features and
benefits" earlier in this Prospectus and Appendix VII later in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
Certain withdrawals may cause your contract and certain Guaranteed benefits to
terminate, as follows:
.. Any fee deduction and/or withdrawal that causes your Total account value to
fall to zero will terminate the contract and any applicable Guaranteed
benefit, subject to the following:
-- the GMIB (while the no lapse guarantee is in effect unless your Protected
Benefit account value falls to zero due to an "Excess withdrawal") will
continue as described under "Guaranteed minimum income benefit" in
"Contract features and benefits" earlier in this Prospectus; and
-- the RMD Wealth Guard death benefit (if your Protected Benefit account
falls to zero before the owner reaches age 95), will continue as
described under "Effect of your account values falling to zero" in
"Determining your contract's value" earlier in this Prospectus.
.. If you do not have the RMD Wealth Guard death benefit or the GMIB or if the
no lapse guarantee is no longer in effect, or you have not yet funded it,
the following applies:
-- a request to withdraw 90% or more of your cash value will terminate your
contract and any applicable Guaranteed minimum death benefit;
-- we reserve the right to terminate the contract and any applicable
Guaranteed minimum death benefit if no contributions are made during the
last three contract years and the cash value is less than $500; and
-- we reserve the right to terminate your contract and any applicable
Guaranteed minimum death benefit if any withdrawal would result in a
remaining cash values of less than $500.
If your contract is terminated, we will pay you the contract's cash value. See
"Surrendering your contract to receive its cash value" below. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while an
owner is living (or for contracts with non-natural owners, while an annuitant
is living) and before you begin to receive annuity payments (Lifetime GMIB
payments or otherwise). For a surrender to be effective, we must receive your
written request and your contract at our processing office. We will determine
your cash value on the date we receive the required information.
Upon your request to surrender your contract for its cash value, all benefits
under the contract, including the GMIB, will terminate as of the date we
receive the required information if your cash value in your Protected Benefit
account is greater than your Annual withdrawal amount remaining for that year.
If your cash value is not greater than your Annual withdrawal amount remaining
for that year and your no lapse guarantee is still in effect, then you will
receive your cash value and a supplementary life annuity contract under which
we will pay you Lifetime GMIB payments. For more information, please see
"Effect of your account values falling to zero" in "Determining your contract's
value" and "Guaranteed minimum income benefit" in "Contract features and
benefits" earlier in this Prospectus.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the business day the transaction
request is received by us in good order. These transactions may include
applying proceeds to a payout annuity, payment of a death benefit, payment of
any amount you withdraw and, upon surrender, payment of the cash value. We may
postpone such payments or applying proceeds for any period during which:
(1)the New York Stock Exchange is closed or restricts trading,
(2)the SEC determines that an emergency exists as a result of sales of
securities or determination of the fair value of a variable investment
option's assets is not reasonably practicable, or
(3)the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option or the Special DCA program, (other than for death benefits) for up to
six months while you are living.
All payments are made by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery or wire transfer service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
The following description assumes annuitization of your entire contract. For
partial annuitization, see "Partial Annuitization" below.
Deferred annuity contracts such as those in the Retirement Cornerstone(R)
Series E provide for conversion to annuity payout status at or before the
contract's "maturity date." This is called "annuitization." Upon annuitization,
your account value is applied to provide periodic
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ACCESSING YOUR MONEY
payments as described in this section; the contract and all its benefits
terminate; and will be converted to a supplementary contract for the periodic
payments ("payout option"). The supplementary contract does not have an account
value or cash value. If you choose a variable payout option, you will receive a
separate prospectus related to the contract you select.
You may choose to annuitize your contract at any time, which generally is at
least 13 months after the contract date. The contract's maturity date is the
latest date on which annuitization can occur. If you do not annuitize before
the maturity date and at the maturity date have not made an affirmative choice
as to the type of annuity payments to be received, we will convert your
contract to the default annuity payout option described in "Annuity maturity
date" later in this section. If you have the GMIB or a Guaranteed minimum death
benefit, your contract may have both a Protected Benefit account value and an
Investment account value. If there is a Protected Benefit account value and you
choose to annuitize your contract before the maturity date, the GMIB will
terminate without value even if your GMIB benefit base is greater than zero.
The payments that you receive under the payout annuity option you select may be
less than you would have received under GMIB. See "Guaranteed minimum income
benefit" in "Contract features and benefits" earlier in this Prospectus for
further information. Any Guaranteed minimum death benefit terminates upon
annuitization.
In general, your periodic payment amount upon annuitization is determined by
your Total account value, the form of the annuity payout option you elect as
described below, the timing of your purchase and the applicable annuity
purchase rate to which that value is applied. Once begun, annuity payments
cannot be stopped unless otherwise provided in the supplementary contract. Your
contract guarantees that upon annuitization, your account value will be applied
to a guaranteed annuity purchase rate for a life annuity. We reserve the right,
with advance notice to you, to change guaranteed annuity purchase rates any
time after your fifth contract date anniversary and at not less than five-year
intervals after the first change. (Please see your contract and SAI for more
information.) In the event that we exercise our contractual right to change the
guaranteed annuity purchase factors, we would segregate the account value based
on contributions and earnings received prior to and after the change. When your
contract is annuitized, we would calculate the payments by applying the
applicable purchase factors separately to the value of the contributions
received before and after the rate change. We will provide you with 60 days
advance written notice of such a change.
In addition, you may apply your Total account value or cash value, whichever is
applicable, to any other annuity payout option that we may offer at the time of
annuitization. We have the right to require you to provide any information we
deem necessary to provide an annuity upon annuitization. If the annuity payment
amount is later found to be based on incorrect information, it will be adjusted
on the basis of the correct information.
We currently offer you several choices of annuity payout options. The options
available directly under the contract entitle you to receive fixed annuity
payments. Options available under separate contracts and described in separate
prospectuses enable you to receive variable annuity payments.
The payments that you receive upon annuitization of your Protected Benefit
account value may be less than your Annual withdrawal amount or your Lifetime
GMIB payments. If you are considering annuitization, you should ask your
financial professional for information about the payment amounts that would be
made under the various choices that are available to you. You may also obtain
that information by contacting us. Annuitization of your Investment account
value after the date your Lifetime GMIB payments begin will not affect those
payments.
You can currently choose from among the annuity payout options listed below.
Restrictions may apply, depending on the type of contract you own or the
owner's and annuitant's ages at contract issue. Other than life annuity with
period certain, we reserve the right to add, remove or change any of these
annuity payout options at any time. In addition, if you are exercising your
GMIB, your choice of payout options are those that are available under the GMIB
(see "Guaranteed minimum income benefit" in "Contract features and benefits"
earlier in this Prospectus).
--------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
--------------------------------------------------------
.. LIFE ANNUITY: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living. It is possible that the Life annuity option could
result in only one payment if the annuitant dies immediately after
annuitization.
.. LIFE ANNUITY WITH PERIOD CERTAIN: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with a
period certain is the form of annuity under the contract that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
.. LIFE ANNUITY WITH REFUND CERTAIN: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has been recovered, payments to the
beneficiary will continue until that amount has been recovered. This payout
option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life, and after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide you with details.
We guarantee fixed annuity payments will be based either on the tables of
guaranteed annuity purchase factors in your contract or on our then current
annuity purchase factors, whichever is more favorable for you.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose.
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ACCESSING YOUR MONEY
PARTIAL ANNUITIZATION. Partial annuitization of nonqualified deferred annuity
contracts is permitted under certain circumstances. You may choose from the
life-contingent annuity payout options described here. We no longer offer a
period certain option for partial annuitization. We require you to elect
partial annuitization on the form we specify. Partial annuitization is not
available for the GMIB under a contract. For purposes of this contract, we will
effect any partial annuitization as a withdrawal applied to a payout annuity.
Please note that a withdrawal from your Protected Benefit account to purchase
an annuity payout contract will affect your Guaranteed benefit bases just like
any other withdrawal. See "How withdrawals are taken from your Total Account
Value" earlier in this Section. Also, see the discussion of "Partial
Annuitization" in "Tax Information" later in this Prospectus.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from your contract date. Please see Appendix V later in this
Prospectus for information on state variations. You can change the date your
annuity payments are to begin at any time. The date may not be later than the
annuity maturity date described below.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier. The amount of each annuity payment will be less with a greater
frequency of payments, or with a longer certain period of a life contingent
annuity. Once elected, the frequency with which you receive payments cannot be
changed.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay your Total account value in a single sum
rather than as payments under the payout option chosen. If you select an
annuity payout option and payments have begun, no change can be made.
ANNUITY MATURITY DATE
Your contract has a maturity date. In general, the maturity date is based on
the age of the original annuitant at contract issue and cannot be changed other
than in conformance with applicable law, even if you name a new annuitant. The
maturity date is generally the contract date anniversary that follows the
annuitant's 95th birthday (or older joint annuitant if your contract has joint
annuitants), unless you have elected otherwise. If you have a NQ contract with
the GMIB and the owner is older than the annuitant, the maturity date is based
on the age of the owner. The maturity date may not be less than thirteen months
from your contract date, unless otherwise stated in your contract. We will send
a notice with the contract statement one year prior to the maturity date and
with each quarterly statement until the maturity date. The notice will include
the date of maturity, describe the available annuity payout options, state the
availability of a lump sum payment option, and identify the default payout
option, if you do not provide an election by the time of your contract maturity
date.
If you have not funded the GMIB, you may either take a lump sum payment or
select an annuity payout option on the maturity date. If you do not make an
election at maturity, we will apply your Total account value to a life annuity
with payments based on the greater of guaranteed or then current annuity
purchase rates.
If you have funded the GMIB, the following applies on the maturity date:
.. For amounts allocated to your Investment account, you may select an annuity
payout option or take a lump sum payment.
.. If you do not make an election for your Protected Benefit account value on
your maturity date, we will apply the greater of the Protected Benefit
account value to (a) and the GMIB benefit base to (b) below:
(a)a fixed life annuity with payments based on the greater of the guaranteed
or then current annuity purchase rates, or
(b)a supplementary contract with annual payments equal to your GMIB benefit
base applied to the applicable GMIB payout factor.
If you elect payments on a joint life basis, the joint life must be your spouse
and the joint life GMIB payout factors will be reduced. See "Guaranteed minimum
income benefit" in "Contract features and benefits." You may also elect to have
your Protected Benefit account value paid to you in a lump sum or applied to an
annuity payout option we are offering at the time.
For amounts allocated to your Investment account, you must select an annuity
payout option or take a lump sum payment.
If you are the contract owner and your spouse is the sole primary beneficiary
or you jointly own the contract with your younger spouse, your spouse may elect
to continue the contract as successor owner upon your death. Under certain
circumstances, your surviving spouse may be substituted as annuitant as of the
date of your death. If your surviving spouse becomes the annuitant, the
maturity date of the contract may be changed based on the age of the new
annuitant. For information about spousal continuation please see "Spousal
continuation" later in this Prospectus.
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ACCESSING YOUR MONEY
5. Charges and expenses
--------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option (including the AXA Ultra Conservative Strategy investment
option). Together, they make up the daily "contract fee." These charges are
reflected in the unit values of each variable investment option:
.. An operations charge
.. An administration charge
.. A distribution charge
We deduct the following charges as described later in this section. When we
deduct these charges from your variable investment options (including the AXA
Ultra Conservative Strategy investment option), we reduce the number of units
credited to your contract:
.. On each contract date anniversary -- an annual administrative charge, if
applicable.
.. On each contract date anniversary -- a charge for each optional benefit you
elect: a Guaranteed minimum death benefit (other than the Return of
Principal death benefit) and the Guaranteed minimum income benefit.
.. At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state.
.. At the time you request a transfer in excess of 12 transfers in a contract
year -- a transfer charge (currently, there is no charge).
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. This does not mean that we may not also be compensated for such
expense or risk out of any other charges we are permitted to deduct by the
terms of the contracts.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
SEPARATE ACCOUNT ANNUAL EXPENSES
OPERATIONS CHARGE. We deduct a daily charge from the net assets in each
variable investment option (including the AXA Ultra Conservative Strategy
investment option) to compensate us for operations expenses, a portion of which
compensates us for mortality and expense risks, described below. In connection
with the Protected Benefit account variable investment options, a portion of
this charge compensates us for our costs in providing the Return of Principal
death benefit. Below is the daily charge shown as an annual rate of the net
assets in each variable investment option:
Series E: 0.80%
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATION CHARGE. We deduct a daily charge from the net assets in each
variable investment option (including the AXA Ultra Conservative Strategy
investment option). The charge, together with the annual administrative charge
described below, is to compensate us for administrative expenses under the
contracts. Below is the daily charge shown as an annual rate of the net assets
in each variable investment option:
Series E: 0.30%
DISTRIBUTION CHARGE. We deduct a daily charge from the net assets in each
variable investment option (including the AXA Ultra Conservative Strategy
investment option) to compensate us for a portion of our sales expenses under
the contracts. Below is the daily charge shown as an annual rate of the net
assets in each variable investment option:
Series E: 0.20%
ACCOUNT VALUE CHARGES
ANNUAL ADMINISTRATIVE CHARGE. We deduct an administrative charge from your
Total account value on each contract date anniversary. We deduct the charge if
your Total account value on the last business day of the contract year is less
than $50,000. If your Total account value on such date is $50,000 or more, we
do not deduct the charge. During the first two contract years, the charge is
equal to $30 or, if less, 2% of your Total account value. The charge is $30 for
contract years three and later.
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CHARGES AND EXPENSES
We will deduct this charge from your value in the Investment account variable
investment options and the guaranteed interest option (see Appendix V later in
this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from the Special
DCA account. If those amounts are insufficient, we will deduct all or a portion
of the charge from the Protected Benefit account variable investment options
(including the AXA Ultra Conservative Strategy investment option).
If the contract is surrendered or annuitized or a death benefit is paid on a
date other than a contract date anniversary, we will deduct a pro rata portion
of the charge for that year.
If your Total account value is insufficient to pay this charge, your contract
will terminate without value and you will lose any applicable Guaranteed
benefits except as noted under "Effect of your account values falling to zero"
in "Determining your contract's value" earlier in this Prospectus.
TRANSFER CHARGE
Currently, we do not charge for transfers among investment options under the
contract. However, we reserve the right to charge for any transfers in excess
of 12 per contract year. We will provide you with advance notice if we decide
to assess the transfer charge, which will never exceed $35 per transfer. The
transfer charge (if applicable), will be assessed at the time that the transfer
is processed. Any transfer charge will be deducted from the investment options
from which the transfer is made. We will not charge for transfers made in
connection with one of our dollar cost averaging programs. Also, transfers from
a dollar cost averaging program, our Systematic transfer program or our
rebalancing program do not count toward your number of transfers in a contract
year for the purposes of this charge.
SPECIAL SERVICE CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing the special service. Except
for the duplicate contract charge, we will deduct from your account value the
charge for the special service provided.
WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the amount you request.
DUPLICATE CONTRACT CHARGE. We charge $35 for providing a copy of your contract.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our processing office, or (iii) by
any other means we make available to you.
CHECK PREPARATION CHARGE. The standard form of payment for all withdrawals is
direct deposit. If direct deposit instructions are not provided, payment will
be made by check. Currently, we do not charge for check preparation, however,
we reserve the right to impose a charge. We reserve the right to charge a
maximum of $85.
<R>
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE. Currently, we are waiving the $65
charge for each third-party transfer or exchange; this waiver may be
discontinued at any time, with or without notice. Absent this waiver, we deduct
a charge for direct rollovers or direct transfers of amounts from your contract
to a third party, such as in the case of a trustee-to-trustee transfer for an
IRA contract, or if you request that your contract be exchanged for a contract
issued by another insurance company. We reserve the right to increase this
charge to a maximum of $125. Please see Appendix V later in this Prospectus for
variations in your state.
</R>
GUARANTEED BENEFIT CHARGES
<R>
RETURN OF PRINCIPAL DEATH BENEFIT. There is no additional charge for this death
benefit, but it must be elected with the Guaranteed minimum income benefit,
which does charge a fee. The Return of Principal death benefit, like all of the
guaranteed minimum death benefits, only applies to amounts you allocate to the
Protected Benefit account variable investment options and not with the contract
as a whole.
</R>
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT. If you elect the Highest Anniversary
Value death benefit, we deduct a charge annually from your Protected Benefit
account variable investment options (including the AXA Ultra Conservative
Strategy investment option) on each contract date anniversary for which it is
in effect. The charge is equal to 0.35% of the Highest Anniversary Value
benefit base. If you elect this benefit, but do not fund it until after your
contract date, we will deduct the full charge on the contract date anniversary
following the date on which you fund the benefit.
RMD WEALTH GUARD DEATH BENEFIT. If you elect the RMD Wealth Guard death
benefit, we will deduct a charge annually from your Protected Benefit account
variable investment options on each contract date anniversary for which it is
in effect. The current charge is equal to 0.90% of the RMD Wealth Guard death
benefit base in effect each contract date anniversary. If you have this
benefit, but do not fund it until after your contract date, we will deduct the
full charge on the contract date anniversary following the date on which you
fund the benefit. We reserve the right to increase the charge for this benefit
up to a maximum of 1.80%. See, "Fee changes for the Guaranteed minimum income
benefit, "Greater of" death benefit and RMD Wealth Guard death benefit" below
for more information.
"GREATER OF" DEATH BENEFIT. If you elect this death benefit, we deduct a charge
annually from your Protected Benefit account variable investment options
(including the AXA Ultra Conservative Strategy investment option) on each
contract date anniversary for which it is in effect. The current charge is
equal to 1.15% of the "Greater of" death benefit base. If you elect this
benefit, but do not fund it until after your contract date, we will deduct the
full charge on the contract date anniversary following the date on which you
fund the benefit.
We reserve the right to increase the charge for this benefit up to a maximum of
2.30%. See "Fee changes for the Guaranteed minimum income benefit and "Greater
of" death benefit" below for more information.
GUARANTEED MINIMUM INCOME BENEFIT CHARGE. If you have the GMIB, we deduct a
charge annually from your Protected Benefit account variable investment options
(including the AXA Ultra Conservative Strategy investment option) on each
contract date anniversary until such time that your Lifetime GMIB payments
begin or you elect another annuity payout option, whichever occurs first. The
current charge is equal to 1.15% of the GMIB benefit base in effect on each
contract date anniversary. If you have this benefit, but do not fund it until
after your contract date, we will deduct the full charge on the contract date
anniversary following the date on which you fund the benefit.
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CHARGES AND EXPENSES
We reserve the right to increase the charge for this benefit up to a maximum of
2.30%. See "Fee changes for the Guaranteed minimum income benefit and "Greater
of" death benefit" below for more information.
-------------------
For the Highest Anniversary Value death benefit, "Greater of" death benefit,
GMIB and RMD Wealth Guard death benefit, we will deduct each charge from your
Protected Benefit account variable investment options (including, if
applicable, the AXA Ultra Conservative Strategy investment option) on a pro
rata basis. If those amounts are insufficient to pay the charge and you have no
amounts in the Special DCA program designated for the Protected Benefit account
variable investment options, your benefit will terminate without value and you
will lose any applicable Guaranteed benefits except as noted under "Effect of
your account values falling to zero" in "Determining your contract's value"
earlier in this Prospectus. Your contract will also terminate if you do not
have any Investment account value.
For the Highest Anniversary Value death benefit, the "Greater of" death
benefit, the GMIB and RMD Wealth Guard death benefit, if any of the events
listed below occur on a date other than a contract date anniversary, we will
deduct a pro rata portion of the charge for that year. The pro rata portion of
the charge will be based on the fee that is in effect at the time the charge is
assessed.
.. A death benefit is paid;
.. you surrender the contract to receive its cash value;
.. you annuitize your Protected Benefit account value;
.. you transfer 100% of your Protected Benefit account value to the Investment
account (following the dropping of your Guaranteed benefits); or
.. you withdraw 100% of your Protected Benefit account value (following the
dropping of your Guaranteed benefits).
FEE CHANGES FOR THE GUARANTEED MINIMUM INCOME BENEFIT, "GREATER OF" DEATH
BENEFIT AND RMD WEALTH GUARD DEATH BENEFIT
We may increase or decrease the charge for the Guaranteed minimum income
benefit, "Greater of" death benefit and RMD Wealth Guard death benefit. You
will be notified of a change in the charge at least 30 days in advance. The
charge for each benefit may only change once in a 12 month period and will
never exceed the maximum shown in the fee table. If you are within your first
two contract years at the time we notify you of a revised charge, the revised
charge will be effective the first day of the third contract year or at least
30 days following the notification date and will be assessed beginning on your
third contract date anniversary. If you have reached your second contract date
anniversary at the time we notify you of a revised charge, the revised charge
will be effective 30 days after the notification date and will be assessed as
of your next contract date anniversary that is at least 30 days after the fee
change notification date and on all contract date anniversaries thereafter. A
pro rated charge assessed during any contract year will be based on the charge
in effect at that time. See "Guaranteed benefit charges" above for more
information. You may not opt out of a fee change but you may drop the benefit
if you notify us in writing within 30 days after a fee change is declared. See
"Dropping or changing your Guaranteed benefits" in "Contract features and
benefits," as well as Appendix I for more information.
EXERCISE OF THE GMIB IN THE EVENT OF A GMIB FEE INCREASE. In the event we
increase the charge for the GMIB, you may exercise the GMIB subject to the
following rules. If you are within your first two contract years at the time we
notify you of a GMIB fee increase, you may elect to exercise the GMIB during
the 30 day period beginning on your second contract date anniversary. If you
have reached your second contract date anniversary at the time we notify you of
a GMIB fee increase, you may elect to exercise the GMIB during the 30 day
period beginning on the date of the fee increase notification. NOTE THAT IF YOU
ARE WITHIN YOUR FIRST TWO CONTRACT YEARS AT THE TIME WE NOTIFY YOU OF A GMIB
FEE INCREASE, YOUR OPPORTUNITY TO DROP THE BENEFIT IS THE 30 DAY PERIOD
FOLLOWING NOTIFICATION, NOT THE 30 DAY PERIOD FOLLOWING YOUR SECOND CONTRACT
DATE ANNIVERSARY. We must receive your election to exercise the GMIB within the
applicable 30 day GMIB exercise period. Any applicable GMIB exercise waiting
period will be waived. Upon expiration of the 30 day exercise period, any
contractual waiting period will resume. If your GMIB exercise waiting period
has already elapsed when a fee increase is announced, you may exercise your
GMIB during either (i) the 30 day GMIB exercise period provided by your
contract or (ii) the 30 day exercise period provided by the fee increase. It is
possible that these periods may overlap. For more information on your
contract's GMIB exercise period and exercise rules, see "Exercise of GMIB" in
"Contract features and benefits". This feature may not be available in all
states. In addition, this feature may vary in your state. For a state-by-state
description of all material variations of this contract, see Appendix V later
in this Prospectus.
For single owner contracts, the payout can be either based on a single life
(the owner's life) or joint lives. For IRA contracts, the joint life must be
the spouse of the owner. For jointly owned contracts, payments can be based on
a single life (based on the life of the older owner) or joint lives. For
non-natural owners, payments are available on the same basis (based on the
annuitant or joint annuitant's life). Your Lifetime GMIB payments are
calculated by applying your GMIB benefit base (as of the date we receive your
election in good order) to guaranteed annuity purchase factors. See "Exercise
of Guaranteed minimum income benefit" under "Contract features and benefits"
for additional information regarding GMIB exercise.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity pay-out option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
.. Management fees.
.. 12b-1 fees.
.. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
.. Investment-related expenses, such as brokerage commissions.
77
CHARGES AND EXPENSES
These charges are reflected in the daily share price of each Portfolio. Since
shares of each Trust are purchased at their net asset value, these fees and
expenses are, in effect, passed on to the variable investment options
(including the AXA Ultra Conservative Strategy investment option) and are
reflected in their unit values. Certain Portfolios available under the contract
in turn invest in shares of other Portfolios of the Trusts and/or shares of
unaffiliated Portfolios (collectively, the "underlying Portfolios"). The
underlying Portfolios each have their own fees and expenses, including
management fees, operating expenses, and investment related expenses such as
brokerage commissions. For more information about these charges, please refer
to the prospectuses for the Trusts.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the daily contract
charge, or change the minimum initial contribution requirements. We also may
change the Guaranteed benefits, or offer variable investment options that
invest in shares of the Trusts that are not subject to the 12b-1 fee. We may
also change the crediting percentage that applies to contributions. Group
arrangements include those in which a trustee or an employer, for example,
purchases contracts covering a group of individuals on a group basis. Group
arrangements are not available for traditional IRA and Roth IRA contracts.
Sponsored arrangements include those in which an employer allows us to sell
contracts to its employees or retirees on an individual basis.
Our costs for sales, administration and operations generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make
no representations with regard to the impact of these and other applicable laws
on such programs. We recommend that employers, trustees, and others purchasing
or making contracts available for purchase under such programs seek the advice
of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
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CHARGES AND EXPENSES
6. Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time while you are alive and the contract is in force.
The change will be effective as of the date the written request is executed,
whether or not you are living on the date the change is received in our
processing office. We are not responsible for any beneficiary change request
that we do not receive. We will send you a written confirmation when we receive
your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. Under a contract
with a non-natural owner that has joint annuitants who continue to be spouses
at the time of death, the surviving annuitant is considered the beneficiary,
and will take the place of any other beneficiary. In a QP contract, the
beneficiary must be the plan trust. Where an NQ contract is owned for the
benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the minor. Where
an IRA contract is owned in a custodial individual retirement account, the
custodian must be the beneficiary.
The death benefit in connection with your Investment account is equal to your
Investment account value as of the date we receive satisfactory proof of the
owner's (or older joint owner's, if applicable) death, any required
instructions for the method of payment, forms necessary to effect payment and
any other information we may require.
The death benefit in connection with any amount in your Protected Benefit
account is equal to your Protected Benefit account value or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit), as
of the date we receive satisfactory proof of the owner's (or older joint
owner's, if applicable) death, any required instructions for the method of
payment, forms necessary to effect payment and any other information we may
require. However, this is not the case if the beneficiary of your contract is
your spouse and he or she decides to roll over the death benefit to another
contract issued by us. See "Effect of the owner's death" below. The amount of
the applicable Guaranteed minimum death benefit will be such Guaranteed minimum
death benefit as of the date of the owner's (or older joint owner's, if
applicable) death adjusted for any subsequent withdrawals. Payment of the death
benefit terminates the contract.
--------------------------------------------------------------------------------
WHEN WE USE THE TERMS "OWNER" AND "JOINT OWNER", WE INTEND THESE TO BE
REFERENCES TO ANNUITANT AND JOINT ANNUITANT, RESPECTIVELY, IF THE CONTRACT HAS
A NON-NATURAL OWNER. IF THE CONTRACT IS JOINTLY OWNED OR IS ISSUED TO A
NON-NATURAL OWNER, THE DEATH BENEFIT IS PAYABLE UPON THE DEATH OF THE OLDER
JOINT OWNER OR OLDER JOINT ANNUITANT, AS APPLICABLE.
--------------------------------------------------------------------------------
Subject to applicable laws and regulations, you may impose restrictions on the
timing and manner of the payment of the death benefit to your beneficiary. For
example, your beneficiary designation may specify the form of death benefit
payout (such as a life annuity), provided the payout you elect is one that we
offer both at the time of designation and when the death benefit is payable. In
general, the beneficiary will have no right to change the election. However,
you should be aware that (i) in accordance with current federal income tax
rules, we apply a predetermined death benefit annuity payout election only if
payment of the death benefit amount begins within one year following the date
of death, which payment may not occur if the beneficiary has failed to provide
all required information before the end of that period, (ii) we will not apply
the predetermined death benefit payout election if doing so would violate any
federal income tax rules or any other applicable law, and (iii) a beneficiary
or a successor owner who continues the contract under one of the continuation
options described below will have the right to change your annuity payout
election.
In general, if the annuitant dies, the owner (or older joint owner, if
applicable) will become the annuitant, and the death benefit is not payable. If
the contract had joint annuitants, it will become a single annuitant contract.
EFFECT OF THE OWNER'S DEATH
In general, if the owner dies while the contract is in force, the contract
terminates and the applicable death benefit is paid. If the contract is jointly
owned, the death benefit is payable upon the death of the older owner. If the
contract has a non-natural owner, the death benefit is payable upon the death
of the annuitant.
There are various circumstances, however, in which the contract can be
continued by a successor owner or under a Beneficiary continuation option
("BCO"). For contracts with spouses who are joint owners, the surviving spouse
will automatically be able to continue the contract under the "Spousal
continuation" feature or under our Beneficiary continuation option, as
discussed below. For contracts with non-spousal joint owners, the joint owner
will be able to continue the contract as a successor owner subject to the
limitations discussed below under "Non-spousal joint owner contract
continuation."
If you are the sole owner, your surviving spouse may have the option to:
.. take the death benefit proceeds in a lump sum;
.. continue the contract as a successor owner under "Spousal continuation" (if
your spouse is the sole primary beneficiary) or under our Beneficiary
continuation option, as discussed below; or
.. roll the death benefit proceeds over into another contract.
If your surviving spouse rolls over the death benefit proceeds into a contract
issued by us, the amount of the death benefit will be calculated as of the date
we receive all requirements necessary to issue your spouse's new contract. Any
death proceeds will remain invested in this contract until your spouse's new
contract is issued. The amount of the death benefit will be calculated to equal
the greater of the account value (as of the date your spouse's new contract is
issued) and the applicable Guaranteed minimum death benefit (as of
79
PAYMENT OF DEATH BENEFIT
the date of your death). This means that the death benefit proceeds could vary
up or down, based on investment performance, until your spouse's new contract
is issued.
If the surviving joint owner is not the surviving spouse, or, for single owner
contracts, if the beneficiary is not the surviving spouse, federal income tax
rules generally require payments of amounts under the contract to be made
within five years of an owner's death (the "5-year rule"). In certain cases, an
individual beneficiary or non-spousal surviving joint owner may opt to receive
payments over his/her life (or over a period not in excess of his/her life
expectancy) if payments commence within one year of the owner's death. Any such
election must be made in accordance with our rules at the time of death. If the
beneficiary of a contract with one owner or a younger non-spousal joint owner
continues the contract under the 5-year rule, in general, all Guaranteed
benefits and their charges will end. For more information on non-spousal joint
owner contract continuation, see the section immediately below.
NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION
Upon the death of either owner, the surviving joint owner becomes the sole
owner.
Any death benefit (if the older owner dies first) or cash value (if the younger
owner dies first) must be fully paid to the surviving joint owner within five
years. The surviving owner may instead elect to receive a life annuity,
provided payments begin within one year of the deceased owner's death. If the
life annuity is elected, the contract and all benefits terminate.
If the older owner dies first, we will increase the account value to equal the
Guaranteed minimum death benefit, if higher. The surviving owner can elect to
(1) take a lump sum payment; (2) annuitize within one year; (3) continue the
contract for up to five years and any GMIB and charge will be terminated; or
(4) continue the contract under the Beneficiary continuation option.
If the contract continues, any Guaranteed minimum death benefit and associated
charge will be discontinued. No subsequent contributions will be permitted.
If the younger owner dies first, the surviving owner can elect to (1) take a
lump sum payment; (2) annuitize within one year; (3) continue the contract for
up to five years; or (4) continue the contract under the Beneficiary
continuation option. If the contract continues under the "5-year rule", the
death benefit is not payable and the Guaranteed minimum death benefit, if
applicable, will continue without change. In general, the GMIB and charge will
be discontinued. No subsequent contributions will be permitted.
SPOUSAL CONTINUATION
If you are the contract owner and your spouse is the sole primary beneficiary
or you jointly own the contract with your younger spouse, your spouse may elect
to continue the contract as successor owner upon your death. Spousal
beneficiaries (who are not also joint owners) must be 85 or younger as of the
date of the deceased spouse's death in order to continue the contract under
Spousal continuation. The determination of spousal status is made under
applicable state law. However, in the event of a conflict between federal and
state law, we follow federal rules.
Upon your death, the younger spouse joint owner (for NQ contracts only) or the
spouse beneficiary (under a Single owner contract), may elect to receive the
death benefit, continue the contract under our Beneficiary continuation option
(as discussed below in this section) or continue the contract, as follows:
.. The applicable Guaranteed minimum death benefit option may continue as
follows:
-- If the surviving spouse is age 65 or younger on the date of your death
for contracts with the "Greater of" death benefit or the RMD Wealth Guard
death benefit, age 80 or younger for contracts with the Highest
Anniversary Value death benefit and you were age 84 or younger at death,
the Guaranteed minimum death benefit continues and will continue to grow
according to its terms until the contract date anniversary following the
date the surviving spouse reaches age 85, or in the case of the RMD
Wealth Guard death benefit, until the contract date anniversary following
the earlier of (i) the first RMD withdrawal from the Protected Benefit
account and (ii) the date the surviving spouse reaches age 85.
-- If the surviving spouse is age 65 or younger on the date of your death
for contracts with the "Greater of" death benefit or the RMD Wealth Guard
death benefit, age 80 or younger for contracts with the Highest
Anniversary Value death benefit and you were age 85 or older at death, we
will reinstate the Guaranteed minimum death benefit under the contract.
The benefit base (which had previously been frozen at age 85) will now
continue to grow according to its terms until the contract date
anniversary following the date the surviving spouse reaches age 85, or in
the case of the RMD Wealth Guard death benefit, until the contract date
anniversary following the earlier of (i) the first RMD withdrawal from
the Protected Benefit account and (ii) the date the surviving spouse
reaches age 85.
-- If the surviving spouse is age 66 or over on the date of your death for
the "Greater of" death benefit or the RMD Wealth Guard death benefit or
age 81 or older for the Highest Anniversary Value death benefit, any
applicable Guaranteed minimum death benefit will be frozen (subject to
adjustment for subsequent contributions and withdrawals) and the charge
will be discontinued.
-- If the "Greater of" death benefit continues, the Roll-up to age 85
benefit base reset, and any Deferral Roll-up amount or Annual Roll-up
amount, as applicable, will be based on the surviving spouse's age.
The GMIB may continue if the benefit had not already terminated and the benefit
will be based on the surviving spouse's age at the date of the deceased
spouse's death. See "Exercise rules" under ''Guaranteed minimum income benefit
(''GMIB'')'' in ''Contract features and benefits'' earlier in this Prospectus.
The RMD Wealth Guard death benefit will terminate if the surviving spouse is
not eligible to make contributions or transfers into the Protected Benefit
account and the Protected Benefit account has no value.
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PAYMENT OF DEATH BENEFIT
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For jointly owned NQ contracts, if the younger spouse dies first no death
benefit is paid, and the contract continues as follows:
.. The Guaranteed benefits continue to be based on the older spouse's age for
the life of the contract.
.. If the deceased spouse was the annuitant, the surviving spouse becomes the
annuitant. If the deceased spouse was a joint annuitant, the contract will
become a single annuitant contract.
If you divorce, Spousal continuation does not apply.
<R>
The determination of spousal status is made under applicable state law. In June
2013, the U.S. Supreme Court ruled that the portion of the federal Defense of
Marriage Act that precluded same-sex marriages from being recognized for
purposes of federal law was unconstitutional. The IRS adopted a rule
recognizing the marriage of same-sex individuals validly entered into in a
jurisdiction that authorizes same-sex marriages, even if the individuals are
domiciled in a jurisdiction that does not recognize the marriage. The IRS also
ruled that the term "spouse" does not include an individual who has entered
into a registered domestic partnership, civil union, or other similar
relationship that is not denominated as a "marriage" under the laws of that
jurisdiction. Absent further guidance, we intend to continue administering the
contract consistent with these IRS rulings. Therefore, exercise of any spousal
continuation right under a contract by an individual who does not meet the
definition of "spouse" under federal law may have adverse tax consequences. If
you are married to a same-sex spouse, you have all of the rights and privileges
under the contract as someone married to an opposite sex spouse. You should be
aware that the U.S. Supreme Court has agreed to hear another case addressing
same-sex marriage. It is not clear whether the outcome of this case will affect
our procedures. Consult with a tax adviser for more information on this subject.
</R>
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract with the deceased contract owner's name on it and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information. For a state-by-state
description of all material variations of this contract, including information
on the availability of the Beneficiary continuation option in your state, see
Appendix V later in this Prospectus.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian may reinvest the death benefit in an individual retirement
annuity contract, using the account beneficiary as the annuitant. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The Beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the Beneficiary continuation option
feature, we will increase the Protected Benefit account value to equal the
applicable death benefit if such death benefit is greater than such account
value, adjusted for any subsequent withdrawals.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70 1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The "5-year rule" is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the Beneficiary continuation option for IRA and Roth IRA contracts:
.. The contract continues with your name on it for the benefit of your
beneficiary.
.. The beneficiary replaces the deceased owner as annuitant.
.. This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
.. If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
.. The minimum amount that is required in order to elect the Beneficiary
continuation option is $5,000 for each beneficiary.
.. The beneficiary may make transfers among the Investment account variable
investment options and the guaranteed interest option (subject to our
rules) but no subsequent contributions will be permitted.
.. The Protected Benefit account variable investment options will no longer be
available and no value can be allocated to those investment options.
.. If any Guaranteed benefits are in effect under the contract, they will no
longer be in effect and charges for such benefits will stop.
.. The beneficiary may choose at any time to withdraw all or a portion of the
Total account value.
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PAYMENT OF DEATH BENEFIT
.. Any partial withdrawal must be at least $300.
.. Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
.. Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking required minimum distributions based
on the remaining life expectancy of the deceased beneficiary or to receive
any remaining interest in the contract in a lump sum. The option elected
will be processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
BENEFICIARY CONTINUATION OPTION FOR NQ CONTRACTS ONLY. This feature, also known
as Inherited annuity, may only be elected when the NQ contract owner dies
before the annuity maturity date, whether or not the owner and the annuitant
are the same person. For purposes of this discussion, "beneficiary" refers to
the successor owner. This feature must be elected within 9 months following the
date of your death and before any other inconsistent election is made.
Beneficiaries who do not make a timely election will not be eligible for this
option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the Beneficiary continuation option for NQ contracts:
.. This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
.. The beneficiary automatically replaces the existing annuitant.
.. The contract continues with your name on it for the benefit of your
beneficiary.
.. If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
.. The minimum amount that is required in order to elect the Beneficiary
continuation option is $5,000 for each beneficiary.
.. The beneficiary may make transfers among the Investment account variable
investment options but no subsequent contributions will be permitted.
.. The Protected Benefit account variable investment options will no longer be
available and no value can be allocated to those investment options.
.. If any Guaranteed benefits are in effect under the contract, they will no
longer be in effect and charges for such benefits will stop.
.. If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary may also take withdrawals, in addition to scheduled payments,
at any time.
.. Any partial withdrawals must be at least $300.
.. Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
.. Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
IF THE DECEASED IS THE OWNER OR THE OLDER JOINT OWNER:
.. As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the Beneficiary
continuation option feature, we will increase the Protected Benefit account
value to equal the applicable death benefit if such death benefit is
greater than such Protected Benefit account value adjusted for any
subsequent withdrawals.
IF THE DECEASED IS THE YOUNGER NON-SPOUSAL JOINT OWNER:
.. The account value will not be reset to the death benefit amount.
-------------------
A surviving spouse should speak to his or her tax professional about whether
Spousal continuation or the Beneficiary continuation option is appropriate for
him or her. Factors to consider include, but are not limited to, the surviving
spouse's age, need for immediate income and a desire to continue any Guaranteed
benefits under the contract.
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PAYMENT OF DEATH BENEFIT
7. Tax information
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OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Retirement Cornerstone(R) Series E contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA or QP. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and IRS interpretations of the
Internal Revenue Code. These tax rules may change without notice. We cannot
predict whether, when, or how these rules could change. Any change could affect
contracts purchased before the change. Congress may also consider proposals in
the future to comprehensively reform or overhaul the United States tax and
retirement systems, which if enacted, could affect the tax benefits of a
contract. We cannot predict what, if any, legislation will actually be proposed
or enacted.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. We also do not discuss
the Employee Retirement Income Security Act of 1974 ("ERISA"). Transfers of the
contract, rights or values under the contract, or payments under the contract,
for example, amounts due to beneficiaries, may be subject to federal or state
gift, estate, or inheritance taxes. You should not rely only on this document,
but should consult your tax adviser before your purchase.
FATCA
<R>
Even though this section in the Prospectus discusses consequences to United
States individuals you should be aware that the Foreign Account Tax Compliance
Act ("FATCA") which applies beginning in 2014 to certain U.S.-source payments
may require AXA Equitable and its affiliates to obtain specified documentation
of an entity's status before payment is made in order to avoid punitive 30%
FATCA withholding. The FATCA rules are initially directed at foreign entities,
and may presume that various U.S. entities are "foreign" unless the U.S. entity
has documented its U.S. status by providing Form W-9. Also, in future years
FATCA and related rules may require us to document the status of certain
contractholders, as well as report contract values and other information for
such contractholders. For this reason AXA Equitable and its affiliates intend
to require appropriate status documentation at purchase, change of ownership,
and affected payment transactions including death benefit payments. FATCA and
its related guidance is extraordinarily complex and its effect varies
considerably by type of payor, type of payee and type of recipient.
</R>
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs"): an individual retirement annuity
contract such as the ones offered in this Prospectus, or a custodial or
trusteed individual retirement account. Annuity contracts can also be purchased
in connection with retirement plans qualified under Section 401(a) of the Code
("QP contracts"). How these arrangements work, including special rules
applicable to each, are noted in the specific sections for each type of
arrangement, below. You should be aware that the funding vehicle for a
tax-qualified arrangement does not provide any tax deferral benefit beyond that
already provided by the Code for all permissible funding vehicles. Before
choosing an annuity contract, therefore, you should consider the annuity's
features and benefits compared with the features and benefits of other
permissible funding vehicles and the relative costs of annuities and other
arrangements. You should be aware that cost may vary depending on the features
and benefits made available and the charges and expenses of the investment
options or funds that you elect.
Certain provisions of the Treasury Regulations on required minimum
distributions concerning the actuarial present value of additional contract
benefits could increase the amount required to be distributed from annuity
contracts funding qualified plans and IRAs. For this purpose additional annuity
contract benefits may include, but are not limited to the various Guaranteed
benefits. You should consider the potential implication of these Regulations
before you purchase this annuity contract or purchase additional features under
this annuity contract. See also Appendix II at the end of this Prospectus for a
discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
If permitted under the terms of the contract, you can make transfers among
investment options inside the contract without triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract. Only section 1035 exchanges are permitted to fund a Retirement
Cornerstone Series E NQ contract. See "Exchange Program" in "Retirement
Cornerstone(R) Series E at a glance -- key features" earlier in this Prospectus.
CONTRACT EARNINGS
Generally, you are not taxed on contract earnings until you receive a
distribution from your contract, whether as a withdrawal or as an annuity
payment. However, earnings are taxable, even without a distribution:
.. if a contract fails investment diversification requirements as specified in
federal income tax rules (these rules are based on or are similar to those
specified for mutual funds under the securities laws);
.. if you transfer a contract, for example, as a gift to someone other than
your spouse (or former spouse);
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TAX INFORMATION
.. if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
.. if the owner is other than an individual (such as a corporation,
partnership, trust, or other non-natural person). This provision does not
apply to a trust which is a mere agent or nominee for an individual, such
as a grantor trust.
Federal tax law requires that all nonqualified deferred annuity contracts that
AXA Equitable and its affiliates issue to you during the same calendar year be
linked together and treated as one contract for calculating the taxable amount
of any distribution from any of those contracts.
ANNUITY PAYMENTS
The following applies to an annuitization of the entire contract. In certain
cases, the contract can be partially annuitized. See "Partial Annuitization"
below.
Annuitization under a Retirement Cornerstone(R) Series E contract occurs when
your interest under the contract is or has been applied to one or more payout
options intended to amortize amounts over your life or over a period certain
generally limited by the period of your life expectancy. (We do not currently
offer a period certain option without life contingencies.) Annuity payouts can
also be determined on a joint life basis. After annuitization, no further
contributions to the contract may be made, the annuity payout amount must be
paid at least annually, and annuity payments cannot be stopped except by death
or surrender (if permitted under the terms of the contract).
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your unrecovered investment in the contract. Generally, your investment in the
contract equals the contributions you made, less any amounts you previously
withdrew that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments. If you have a loss on a variable annuity payout in a taxable
year, you may be able to adjust the tax-free amount in subsequent years.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
Your rights to apply amounts under this contract to an annuity payout option
are described elsewhere in this Prospectus. If you hold your contract to the
maximum maturity age under the contract we require that a choice be made
between taking a lump sum settlement of any remaining account value or applying
any such account value to an annuity payout option we may offer at the time
under the contract. If no affirmative choice is made, we will apply any
remaining account value or interest in the contract to the default option under
the contract at such age. While there is no specific federal tax guidance as to
whether or when an annuity contract is required to mature, or as to the form of
the payments to be made upon maturity, we believe that this contract
constitutes an annuity contract under current federal tax rules.
ANNUITY PAYMENTS UNDER THE NO LAPSE GUARANTEE IF YOU HAVE THE GMIB
If the value of the Protected Benefit account falls to zero before the maturity
date and the no lapse guarantee is still in effect, we will issue a
supplementary contract as described earlier in this Prospectus in "Guaranteed
minimum income benefit" under "Contract features and benefits". The payments
under the no lapse guarantee will be treated as annuity payments. If you have
no value remaining in the Investment account, the entire contract will be
annuitized. If you have value remaining in the Investment account, the contract
will be treated as partially annuitized as described below. Since the value of
the Protected Benefit account has fallen to zero, all of the account value
under the contract is allocated to the Investment account, and all of the basis
or investment in the contract will remain with the Investment account. Since no
investment in the contract is allocated to the stream of payments under the no
lapse guarantee, all amounts will be fully taxable over your life.
PARTIAL ANNUITIZATION
The consequences described above for annuitization of the entire contract apply
to the portion of the contract which is partially annuitized. A nonqualified
deferred annuity contract is treated as being partially annuitized if a portion
of the contract is applied to an annuity payout option on a life-contingent
basis or for a period certain of at least 10 years. We do not currently offer a
period certain option without life contingencies. In order to get annuity
payment tax treatment for the portion of the contract applied to the annuity
payout, payments must be made at least annually in substantially equal amounts,
the payments must be designed to amortize the amount applied over life or the
period certain, and the payments cannot be stopped, except by death or
surrender (if permitted under the terms of the contract). The investment in the
contract is split between the partially annuitized portion and the deferred
amount remaining based on the relative values of the amount applied to the
annuity payout and the deferred amount remaining at the time of the partial
annuitization. Also, the partial annuitization has its own annuity starting
date.
WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your Total account value less your total investment in
the contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a reduction of your investment in the contract and is not taxable.
Collateral assignments are taxable to the extent of any earnings in the
contract at the time any portion of the contract's value is assigned as
collateral. Therefore, if you assign your contract as collateral for a loan
with a third party after the contract is issued, you may have taxable income
even though you receive no payments under the contract. AXA Equitable will
report any income attributable to a collateral assignment on Form 1099-R. Also,
if AXA Equitable makes payments or distributions to the assignee pursuant to
directions under the collateral assignment agreement, any gains in such
payments may be taxable to you and reportable on Form 1099-R even though you do
not receive them.
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TAXATION OF ANNUAL WITHDRAWALS PRIOR TO THE BEGINNING OF LIFETIME GMIB PAYMENTS
We treat any withdrawals under the contract as non-annuity payments for income
tax purposes. (This includes Annual withdrawal amounts received before the
entire contract is annutized as described above under "Annuity Payments.")
1035 EXCHANGES
You may purchase a nonqualified deferred annuity contract through an exchange
of another contract. Normally, exchanges of contracts are taxable events. The
exchange will not be taxable under Section 1035 of the Internal Revenue Code if:
.. the contract that is the source of the funds you are using to purchase the
nonqualified deferred annuity contract is another nonqualified deferred
annuity contract or life insurance or endowment contract.
.. the owner and the annuitant are the same under the source contract and the
contract issued in exchange. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
In some cases you may make a tax-deferred 1035 exchange from a nonqualified
deferred annuity contract to a "qualified long-term care contract" meeting all
specified requirements under the Code or an annuity contract with a "qualified
long-term care contract" feature (sometimes referred to as a "combination
annuity" contract).
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the contract issued in exchange.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to purchase or contribute to another nonqualified
deferred annuity contract on a tax-deferred basis. If requirements are met, the
owner may also directly transfer amounts from a nonqualified deferred annuity
contract to a "qualified long-term care contract" or "combination annuity" in
such a partial 1035 exchange transaction. Special forms, agreement between the
carriers, and provision of cost basis information may be required to process
this type of an exchange.
<R>
If you are purchasing your contract through a Section 1035 exchange, you should
be aware that AXA Equitable cannot guarantee that the exchange from the source
contract to the contract you are applying for will be treated as a Section 1035
exchange.
</R>
Even if the contract owner and the insurance companies agree that a full or
partial 1035 exchange is intended, the IRS has the ultimate authority to review
the facts and determine that the transaction should be recharacterized as
taxable in whole or in part.
Section 1035 exchanges are generally not available after the death of the
owner. The destination contract must meet specific post-death payout
requirements to prevent avoidance of the death of owner rules. See "Payment of
death benefit".
SURRENDERS
If you surrender or cancel the contract, the distribution is taxable as
ordinary income (not capital gain) to the extent it exceeds your investment in
the contract.
DEATH BENEFIT PAYMENTS MADE TO A BENEFICIARY AFTER YOUR DEATH
For the rules applicable to death benefits, see "Payment of death benefit"
earlier in this Prospectus. The tax treatment of a death benefit taken as a
single sum is generally the same as the tax treatment of a withdrawal from or
surrender of your contract. The tax treatment of a death benefit taken as
annuity payments is generally the same as the tax treatment of annuity payments
under your contract.
Under the Beneficiary continuation option, the tax treatment of a withdrawal
after the death of the owner taken as a single sum or taken as withdrawals
under the 5-year rule is generally the same as the tax treatment of a
withdrawal from or surrender of your contract.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59 1/2, a penalty tax of 10% of
the taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59 1/2 penalty tax include
distributions made:
.. on or after your death; or
.. because you are disabled (special federal income tax definition); or
.. in the form of substantially equal periodic annuity payments at least
annually over your life (or life expectancy), or the joint lives of you and
your beneficiary (or joint life expectancies) using an IRS-approved
distribution method. We do not anticipate that GMIB Annual withdrawal
amount payments made before age 59 1/2 will qualify for this exception.
Please note that it is your responsibility to claim the penalty exception on
your own income tax return and to document eligibility for the exception to the
IRS.
ADDITIONAL TAX ON NET INVESTMENT INCOME
Taxpayers who have modified adjusted gross income ("MAGI") over a specified
amount and who also have specified net investment income in any year may have
to pay an additional surtax of 3.8%. (This tax has been informally referred to
as the "Net Investment Income Tax" or "NIIT"). For this purpose net investment
income includes distributions from and payments under nonqualified annuity
contracts. The threshold amount of MAGI varies by filing status: $200,000 for
single filers; $250,000 for married taxpayers filing jointly, and $125,000 for
married taxpayers filing separately. The tax applies to the lesser of a) the
amount of MAGI over the applicable threshold amount or b) the net investment
income. You should discuss with your tax adviser the potential effect of this
tax.
INVESTOR CONTROL ISSUES
Under certain circumstances, the IRS has stated that you could be treated as
the owner (for tax purposes) of the assets of Separate Account No. 70. If you
were treated as the owner, you would be taxable on income and gains
attributable to the shares of the underlying Portfolios.
The circumstances that would lead to this tax treatment would be that, in the
opinion of the IRS, you could control the underlying investment of Separate
Account No. 70. The IRS has said that the owners of variable annuities will not
be treated as owning the separate account assets provided the underlying
Portfolios are restricted to variable life and annuity assets. The variable
annuity owners must have the right only to
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choose among the Portfolios, and must have no right to direct the particular
investment decisions within the Portfolios.
Although we believe that, under current IRS guidance, you would not be treated
as the owner of the assets of Separate Account No. 70, there are some issues
that remain unclear. For example, the IRS has not issued any guidance as to
whether having a larger number of Portfolios available could cause you to be
treated as the owner. We do not know whether the IRS will ever provide such
guidance or whether such guidance, if unfavorable, would apply retroactively to
your contract. Furthermore, the IRS could reverse its current guidance at any
time. We reserve the right to modify your contract as necessary to prevent you
from being treated as the owner of the assets of Separate Account No. 70.
INDIVIDUAL RETIREMENT ARRANGEMENTS (IRAS)
GENERAL
"IRA" stands for individual retirement arrangement. There are two basic types
of such arrangements, individual retirement accounts and individual retirement
annuities. In an individual retirement account, a trustee or custodian holds
the assets funding the account for the benefit of the IRA owner. The assets
typically include mutual funds and/or individual stocks and/or securities in a
custodial account, and bank certificates of deposit in a trusteed account. In
an individual retirement annuity, an insurance company issues an annuity
contract that serves as the IRA.
There are two basic types of IRAs, as follows:
.. Traditional IRAs, typically funded on a pre-tax basis; and
.. Roth IRAs, funded on an after-tax basis.
Regardless of the type of IRA, your ownership interest in the IRA cannot be
forfeited. You or your beneficiaries who survive you are the only ones who can
receive the IRA's benefits or payments. All types of IRAs qualify for tax
deferral regardless of the funding vehicle selected.
<R>
You can hold your IRA assets in as many different accounts and annuities as you
would like, as long as you meet the rules for setting up and making
contributions to IRAs. However, if you own multiple IRAs, you may be required
to combine IRA values or contributions for tax purposes. For further
information about individual retirement arrangements, you can read Internal
Revenue Service Publications 590-A ("Contributions to Individual Retirement
Arrangements (IRAs)") and 590-B ("Distributions from Individual Retirement
Arrangements (IRAs)"). These publications are usually updated annually, and can
be obtained by contacting the IRS or from the IRS website (www.irs.gov).
</R>
AXA Equitable designs its IRA contracts to qualify as individual retirement
annuities under Section 408(b) of the Internal Revenue Code. You may purchase
the contract as a traditional IRA or Roth IRA. We also offer Inherited IRA
contracts for payment of post-death required minimum distributions from
traditional IRAs and Roth IRAs, respectively.
This Prospectus contains the information that the IRS requires you to have
before you purchase an IRA. The first section covers some of the special tax
rules that apply to traditional IRAs. The next section covers Roth IRAs. The
disclosure generally assumes direct ownership of the individual retirement
annuity contract. For contracts owned in a custodial individual retirement
account, the disclosure will apply only if you terminate your account or
transfer ownership of the contract to yourself.
We describe the amount and types of charges that may apply to your
contributions under "Charges and expenses" earlier in this Prospectus. We
describe the method of calculating payments under "Accessing your money"
earlier in this Prospectus. We do not guarantee or project growth in any
variable income annuitization option payments (as opposed to payments from a
fixed income annuitization option).
We have not applied for opinion letters approving the respective forms of the
traditional and Roth IRA contracts for use as a traditional and Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
You can cancel either type of the Retirement Cornerstone(R) Series E IRA
contract (traditional IRA or Roth IRA) by following the directions in "Your
right to cancel with a certain number of days" under "Contract features and
benefits" earlier in this Prospectus. If you cancel a traditional IRA or Roth
IRA contract, we may have to withhold tax, and we must report the transaction
to the IRS. A contract cancellation could have an unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to purchase a traditional IRA or as additional contributions
to an existing IRA:
.. "regular" contributions out of earned income or compensation; or
.. tax-free "rollover" contributions; or
.. direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
The Retirement Cornerstone(R) Series E traditional IRA contract may be funded
only through a direct rollover or transfer of funds from a contract previously
issued by us. Partial rollovers or partial direct transfers from eligible Prior
Contracts are not permitted. See "How you can make your contributions" in
"Contract features and benefits" earlier in this Prospectus or "Rollover
contributions to this Roth IRA contract" later in this section for more
information. Contributions to this contract cannot be made through "regular"
IRA contributions out of your current compensation or from any source other
than eligible prior Contracts described above. See "Exchange Program" in
"Retirement Cornerstone(R) Series E at a glance -- key features" earlier in
this Prospectus.
ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS TO TRADITIONAL IRAS
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
.. qualified plans;
.. governmental employer 457(b) plans;
.. 403(b) plans; and
.. other IRAs, including SEP, SIMPLE and SARSEP IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
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Any amount contributed to a traditional IRA after you reach age 70 1/2 must be
net of your required minimum distribution for the year in which the rollover or
direct transfer contribution is made.
ROLLOVERS FROM "ELIGIBLE RETIREMENT PLANS" OTHER THAN TRADITIONAL IRAS
Your plan administrator will tell you whether or not your distribution is
eligible to be rolled over. Spousal beneficiaries and spousal alternate payees
under qualified domestic relations orders may roll over funds on the same basis
as the plan participant.
There are two ways to do rollovers:
.. Direct rollover:
You tell the trustee or custodian of the eligible retirement plan to send the
distribution directly to your traditional IRA issuer. Direct rollovers are
not subject to mandatory federal income tax withholding. This is the only
type of rollover permitted to be made to a Retirement Cornerstone(R) Series E
IRA contract.
.. Do it yourself:
You actually receive a distribution that can be rolled over and you roll it
over to a traditional IRA within 60 days after the date you receive the
funds. The distribution from your eligible retirement plan will be net of 20%
mandatory federal income tax withholding. If you want, you can replace the
withheld funds yourself and roll over the full amount. Although in general
60-day rollovers are permitted under the tax law, we will not accept any
personal checks and require contributions to be made only through direct
transfers from, or rollovers to be made directly from, another eligible
contract issued by us.
All distributions from a qualified plan, 403(b) plan or governmental employer
457(b) plan are eligible rollover distributions, unless the distributions are:
.. "required minimum distributions" after age 70 1/2 or retirement from
service with the employer; or
.. substantially equal periodic payments made at least annually for your life
(or life expectancy) or the joint lives (or joint life expectancies) of you
and your designated beneficiary; or
.. substantially equal periodic payments made for a specified period of 10
years or more; or
.. hardship withdrawals; or
.. corrective distributions that fit specified technical tax rules; or
.. loans that are treated as distributions; or
.. death benefit payments to a beneficiary who is not your surviving spouse; or
.. qualified domestic relations order distributions to a beneficiary who is
not your current spouse or former spouse.
You should discuss with your tax adviser whether you should consider rolling
over funds from one type of tax qualified retirement plan to another because
the funds will generally be subject to the rules of the recipient plan. For
example, funds in a governmental employer 457(b) plan are not subject to the
additional 10% federal income tax penalty for premature distributions, but they
may become subject to this penalty if you roll the funds to a different type of
eligible retirement plan such as a traditional IRA, and subsequently take a
premature distribution.
<R>
Rollovers from an eligible retirement plan to a traditional IRA are not subject
to the "one-per-year limit" noted later in this Section.
</R>
ROLLOVERS OF AFTER-TAX CONTRIBUTIONS FROM ELIGIBLE RETIREMENT PLANS OTHER THAN
TRADITIONAL IRAS
Any non-Roth after-tax contributions you have made to a qualified plan or
403(b) plan (but not a governmental employer 457(b) plan) may be rolled over to
a traditional IRA (either in a direct rollover or a rollover you do yourself).
When the recipient plan is a traditional IRA, you are responsible for
recordkeeping and calculating the taxable amount of any distributions you take
from that traditional IRA. See "Taxation of Payments" later in this section
under "Withdrawals, payments and transfers of funds out of traditional IRAs."
After-tax contributions in a traditional IRA cannot be rolled over from your
traditional IRA into, or back into, a qualified plan, 403(b) plan or
governmental employer 457(b) plan.
<R>
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
</R>
You may roll over amounts from one traditional IRA to one or more of your other
traditional IRAs if you complete the transaction within 60 days after you
receive the funds. You may make such a rollover only once in every 12-month
period for the same funds. We call this the "ONE-PER-YEAR LIMIT." It is the IRA
owner's responsibility to determine if this rule is met. Trustee-to-trustee or
custodian-to-custodian direct transfers are not rollover transactions. You can
make these more frequently than once in every 12-month period.
SPOUSAL ROLLOVERS AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, the deceased spouse's traditional IRA to
one or more other traditional IRAs. Also, in some cases, traditional IRAs can
be transferred on a tax-free basis between spouses or former spouses as a
result of a court-ordered divorce or separation decree.
EXCESS CONTRIBUTIONS TO TRADITIONAL IRAS
Excess contributions to IRAs are subject to a 6% excise tax for the year in
which made and for each year after until withdrawn. The following are excess
contributions to IRAs:
.. regular contributions of more than the maximum regular contribution amount
for the applicable taxable year; or
.. regular contributions to a traditional IRA made after you reach age 70 1/2,
or
.. rollover contributions of amounts which are not eligible to be rolled over,
for example, minimum distributions required to be made after age 70 1/2
You can avoid or limit the excise tax by withdrawing an excess contribution
(rollover or regular). See IRS Publications 590-A and 590-B for further details.
RECHARACTERIZATIONS
Amounts that have been contributed as traditional IRA funds may subsequently be
treated as Roth IRA funds. Special federal income tax rules allow you to change
your mind again and have amounts that
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are subsequently treated as Roth IRA funds, once again treated as traditional
IRA funds. You do this by using the forms we prescribe. This is referred to as
having "recharacterized" your contribution.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF TRADITIONAL IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a traditional IRA at any time. You do not need to wait
for a special event like retirement.
TAXATION OF PAYMENTS. Amounts distributed from traditional IRAs are not subject
to federal income tax until you or your beneficiary receive them. Taxable
payments or distributions include withdrawals from your contract, surrender of
your contract and annuity payments from your contract. Death benefits are also
taxable.
We report all payments from traditional IRA contracts on IRS Form 1099-R. You
are responsible for reporting these amounts correctly on your individual income
tax return and keeping supporting records. Except as discussed below, the total
amount of any distribution from a traditional IRA must be included in your
gross income as ordinary income.
If you have ever made nondeductible (after-tax) IRA contributions to any
traditional IRA (it does not have to be to this particular traditional IRA
contract), those contributions are recovered tax-free when you get
distributions from any traditional IRA. It is your responsibility to keep
permanent tax records of all of your nondeductible contributions to traditional
IRAs so that you can correctly report the taxable amount of any distribution on
your own tax return. At the end of any year in which you have received a
distribution from any traditional IRA, you calculate the ratio of your total
nondeductible traditional IRA contributions (less any amounts previously
withdrawn tax-free) to the total account balances of all traditional IRAs you
own at the end of the year plus all traditional IRA distributions made during
the year. Multiply this by all distributions from the traditional IRA during
the year to determine the nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
.. the amount received is a withdrawal of certain excess contributions, as
described in IRS Publications 590-A and 590-B; or
.. the entire amount received is rolled over to another traditional IRA or
other eligible retirement plan which agrees to accept the funds. (See
"Rollovers from eligible retirement plans other than traditional IRAs" in
"Traditional individual retirement annuities (traditional IRAs)" earlier in
this section for more information.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a 403(b) plan or a governmental employer
457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from
your traditional IRA into, or back into, a qualified plan, 403(b) plan or
governmental employer 457(b) plan. Before you decide to roll over a
distribution from a traditional IRA to another eligible retirement plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types it accepts. You should also check with the
administrator of the receiving plan about any documents required to be
completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
<R>
IRA DISTRIBUTIONS DIRECTLY TRANSFERRED TO CHARITY. Specified distributions from
IRAs directly transferred to charitable organizations have been tax-free to IRA
owners age 70 1/2 or older in past years. This is a temporary provision and
must be extended by Congress to be in effect for a particular year. In past
years Congress has sometimes extended this provision retroactively. You can
direct AXA Equitable to make a distribution directly to a charitable
organization you request whether or not such distribution might be eligible for
favorable tax treatment. If favorable tax treatment is important to you, you
should check with your own tax advisor to see if this provision is in effect
before you request a charitable direct transfer from your IRA.
</R>
ANNUITY PAYMENTS UNDER THE RMD WEALTH GUARD REFUND FEATURE
If you have the RMD Wealth Guard death benefit and your Protected Benefit
account value falls to zero before you reach age 95 or before your death, we
will issue you a supplementary contract with the same owner and beneficiary.
You will receive periodic refund payments until we have returned the value of
the RMD Wealth Guard death benefit base, less any RMD withdrawals previously
taken from the Protected Benefit account before it fell to zero. See "RMD
Wealth Guard Refund feature" in "Contract features and benefits" earlier in
this Prospectus for additional information.
The payments under the RMD Wealth Guard Refund feature will be treated as
annuity payments. If you have no value remaining in the Investment account, the
entire contract will be annuitized. If you have value remaining in the
Investment account, the contract will be treated as partially annuitized.
REQUIRED MINIMUM DISTRIBUTIONS
BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS. Distributions must
be made from traditional IRAs according to rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations require
that the actuarial present value of additional annuity contract benefits must
be added to the dollar amount credited for purposes of calculating certain
types of required minimum distributions from individual retirement annuity
contracts. For this purpose additional annuity contract benefits may include,
but are not limited to, Guaranteed benefits. This could increase the amount
required to be distributed from the contracts if you take annual withdrawals
instead of annuitizing. Please consult your tax adviser concerning
applicability of these complex rules to your situation.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70 1/2.
WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The
first required minimum distribution is for the calendar year in which you turn
age 70 1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70 1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1st - April 1st). Distributions must start no later than your
"Required Beginning
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Date", which is April 1st of the calendar year after the calendar year in which
you turn age 70 1/2. If you choose to delay taking the first annual minimum
distribution, then you will have to take two minimum distributions in that year
-- the delayed one for the first year and the one actually for that year. Once
minimum distributions begin, they must be made at some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value, the actuarial present value of additional annuity contract
benefits, if applicable, and the divisor change.
If you initially choose an account-based method, you may later apply your
traditional IRA funds to a life annuity-based payout with any certain period
not exceeding remaining life expectancy, determined in accordance with IRS
tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, if you are taking account-based withdrawals from all of your traditional
IRAs, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain. You can add these required minimum
distribution amount calculations together. As long as the total amount you take
out every year satisfies your overall traditional IRA required minimum
distribution amount, you may choose to take your annual required minimum
distribution from any one or more traditional IRAs that you own.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70 1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70 1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in
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the year of death. HOWEVER, NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO KEEP
AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE MUST
DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF THE
ANNUITANT.
If you die before your Required Beginning Date for lifetime required minimum
distribution payments, and the death beneficiary is a non-individual, such as
the estate, the rules continue to apply the 5-year rule discussed earlier under
"Individual beneficiary". PLEASE NOTE THAT WE NEED AN INDIVIDUAL ANNUITANT TO
KEEP AN ANNUITY CONTRACT IN FORCE. IF THE BENEFICIARY IS NOT AN INDIVIDUAL, WE
MUST DISTRIBUTE AMOUNTS REMAINING IN THE ANNUITY CONTRACT AFTER THE DEATH OF
THE ANNUITANT.
SPOUSAL CONTINUATION
If the contract is continued under Spousal continuation, the required minimum
distribution rules are applied as if your surviving spouse is the contract
owner.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
IRA death benefits are taxed the same as IRA distributions.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
You cannot get loans from a traditional IRA. You cannot use a traditional IRA
as collateral for a loan or other obligation. If you borrow against your IRA or
use it as collateral, its tax-favored status will be lost as of the first day
of the tax year in which this prohibited event occurs. If this happens, you
must include the value of the traditional IRA in your federal gross income.
Also, the early distribution penalty tax of 10% may apply if you have not
reached age 59 1/2 before the first day of that tax year.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a traditional IRA made before you reach age 59 1/2. Some of
the available exceptions to the pre-age 59 1/2 penalty tax include
distributions:
.. made on or after your death; or
.. made because you are disabled (special federal income tax definition); or
.. used to pay certain extraordinary medical expenses (special federal income
tax definition); or
.. used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
.. used to pay certain first-time home buyer expenses (special federal income
tax definition; $10,000 lifetime total limit for these distributions from
all your traditional and Roth IRAs); or
.. used to pay certain higher education expenses (special federal income tax
definition); or
.. in the form of substantially equal periodic payments made at least annually
over your life (or your life expectancy) or over the joint lives of you and
your beneficiary (or your joint life expectancies) using an IRS-approved
distribution method.
Please note that it is your responsibility to claim the penalty exception on
your own income tax return and to document eligibility for the exception to the
IRS.
To meet the substantially equal periodic payments exception, you could elect
the substantially equal withdrawals option. See "Substantially equal
withdrawals" under "Accessing your money" earlier in this Prospectus. We will
calculate the substantially equal payments, using your choice of IRS-approved
methods we offer. Although substantially equal withdrawals are not subject to
the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments
and transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals begin, the distributions should not be stopped
or changed until after the later of your reaching age 59 1/2 or five years
after the date of the first distribution, or the penalty tax, including an
interest charge for the prior penalty avoidance, may apply to all prior
distributions under either option. Also, it is possible that the IRS could view
any additional withdrawal or payment you take from, or any additional
contributions or transfers you make to, your contract as changing your pattern
of substantially equal withdrawals for purposes of determining whether the
penalty applies.
Making additional contributions to the contract is treated as changing the
pattern of withdrawals. It does not matter whether the additional contributions
are made by direct transfer or rollover; nor does it matter if they are made to
the Investment account or the Protected Benefit account. Because the penalty
exception method does not permit additional contributions or payment changes to
restore any benefit base under the contract, you and your tax adviser should
consider carefully whether you should elect the Substantially equal withdrawals
option or any other method of penalty exception withdrawals if you have
allocated, or intend to allocate, amounts to the Protected Benefit account
value after starting Substantially equal withdrawals.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "Traditional individual
retirement annuities (traditional IRAs)."
The Retirement Cornerstone(R) Series E Roth IRA contract is designed to qualify
as a Roth individual retirement annuity under Sections 408A(b) and 408(b) of
the Internal Revenue Code.
CONTRIBUTIONS TO ROTH IRAS. Individuals may make four different types of
contributions to a Roth IRA:
.. regular after-tax contributions out of earnings; or
.. taxable rollover contributions from traditional IRAs or other eligible
retirement plans ("conversion rollover" contributions); or
.. tax-free rollover contributions from other Roth individual retirement
arrangements or designated Roth accounts under defined contribution plans;
or
.. tax-free direct custodian-to-custodian transfers from other Roth IRAs
("direct transfers").
All contributions to a Retirement Cornerstone(R) Series E Roth IRA contract
must be a direct transfer or rollover contribution. We do not accept regular
contributions out of earnings.
See "Exchange Program" in "Retirement Cornerstone(R) Series E at a glance --
key features" earlier in this Prospectus.
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ROLLOVERS AND DIRECT TRANSFER CONTRIBUTIONS TO ROTH IRAS
WHAT IS THE DIFFERENCE BETWEEN ROLLOVER AND DIRECT TRANSFER TRANSACTIONS? The
difference between a rollover transaction and a direct transfer transaction is
the following: in a rollover transaction you actually take possession of the
funds rolled over or are considered to have received them under tax law in the
case of a change from one type of plan to another. In a direct transfer
transaction, you never take possession of the funds, but direct the first Roth
IRA custodian, trustee or issuer to transfer the first Roth IRA funds directly
to the recipient Roth IRA custodian, trustee or issuer. You can make direct
transfer transactions only between identical plan types (for example, Roth IRA
to Roth IRA).
You may make rollover contributions to a Roth IRA from these sources only:
.. another Roth IRA;
.. a traditional IRA, including a SEP-IRA or SIMPLE IRA (after a two-year
rollover limitation period for SIMPLE IRA funds), in a taxable conversion
rollover ("conversion rollover");
.. a "designated Roth contribution account" under a 401(k) plan, a 403(b) plan
or a governmental employer Section 457(b) plan (direct or 60-day); or
.. from non-Roth accounts under another eligible retirement plan, as described
below under "Conversion rollover contributions to Roth IRAs."
You may make direct transfer contributions to a Roth IRA only from another Roth
IRA.
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make IRA rollover transactions (Roth IRAs or
otherwise) only once in any 12-month period for the same funds. We call this
the "one-per-year limit." It is the Roth IRA owner's responsibility to
determine if this rule is met. Trustee-to-trustee or custodian-to-custodian
direct transfers can be made more frequently than once a year. Also, if you
send us the rollover contribution to apply it to a Roth IRA, you must do so
within 60 days after you receive the proceeds from the original IRA to get
rollover treatment. Although in general 60-day rollovers are permitted under
the tax law, we will not accept any personal checks and require contributions
to be made only through direct transfers from, or rollovers to be made directly
from, another eligible contract issued by us.
The surviving spouse beneficiary of a deceased individual can roll over or
directly transfer an inherited Roth IRA to one or more other Roth IRAs. In some
cases, Roth IRAs can be transferred on a tax-free basis between spouses or
former spouses as a result of a court-ordered divorce or separation decree.
CONVERSION ROLLOVER CONTRIBUTIONS TO ROTH IRAS
In a conversion rollover transaction, you withdraw (or are considered to have
withdrawn) funds from a traditional IRA you maintain and convert it to a Roth
IRA within 60 days after you receive (or are considered to have received) the
traditional IRA proceeds. Amounts can also be rolled over from non-Roth
accounts under another eligible retirement plan, including a Code
Section 401(a) qualified plan, a 403(b) plan, and a governmental employer
Section 457(b) plan.
<R>
Unlike a rollover from a traditional IRA to another traditional IRA, a
conversion rollover transaction from a traditional IRA or other eligible
retirement plan to a Roth IRA is not tax-free. Instead, the distribution from
the traditional IRA or other eligible retirement plan is generally fully
taxable. If you are converting a traditional IRA, and you have ever made
nondeductible regular contributions to any traditional IRA -- whether or not it
is the traditional IRA you are converting -- a pro rata portion of the
distribution is tax-free. Even if you are under age 59 1/2, the early
distribution penalty tax does not apply to conversion rollover contributions to
a Roth IRA. Conversion rollover contributions to Roth IRAs are not subject to
the "one-per-year limit" noted earlier in this section.
</R>
You cannot make conversion contributions to a Roth IRA to the extent that the
funds in your traditional IRA or other eligible retirement plan are subject to
the lifetime annual required minimum distribution rules.
You cannot convert and reconvert an amount during the same taxable year, or if
later, during the 30-day period following a recharacterization. If you
reconvert during either of these periods, it will be a failed Roth IRA
conversion.
The IRS and Treasury have issued Treasury Regulations addressing the valuation
of annuity contracts funding traditional IRAs in the conversion to Roth IRAs.
Although these Regulations are not clear, they could require an individual's
gross income on the conversion of a traditional IRA to a Roth IRA to be
measured using various actuarial methods and not as if the annuity contract
funding the traditional IRA had been surrendered at the time of conversion.
This could increase the amount of income reported in certain circumstances.
RECHARACTERIZATIONS
You may be able to treat a contribution made to one type of IRA as having been
made to a different type of IRA. This is called recharacterizing the
contribution.
For recharacterization purposes, a distribution from a traditional IRA that is
received in one tax year and rolled over into a Roth IRA in the next year, but
still within 60 days of the distribution from the traditional IRA, is treated
as a contribution to the Roth IRA in the year of the distribution from the
traditional IRA.
Roth IRA conversion contributions from a SEP-IRA or SIMPLE IRA can be
recharacterized to a SEP-IRA or SIMPLE IRA (including the original SEP-IRA or
SIMPLE IRA). You cannot recharacterize back to the original plan a contribution
directly rolled over from an eligible retirement plan which is not a
traditional IRA.
The recharacterization of a contribution is not treated as a rollover for
purposes of the 12-month limitation period described above. This rule applies
even if the contribution would have been treated as a rollover contribution by
the second IRA if it had been made directly to the second IRA rather than as a
result of a recharacterization of a contribution to the first IRA.
To recharacterize a contribution, you must use our forms.
WITHDRAWALS, PAYMENTS AND TRANSFERS OF FUNDS OUT OF ROTH IRAS
NO FEDERAL INCOME TAX LAW RESTRICTIONS ON WITHDRAWALS. You can withdraw any or
all of your funds from a Roth IRA at any time; you do not need to wait for a
special event like retirement.
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DISTRIBUTIONS FROM ROTH IRAS
Distributions include withdrawals from your contract, surrender of your
contract and annuity payments from your contract. Death benefits are also
distributions.
You must keep your own records of regular and conversion contributions to all
Roth IRAs to assure appropriate taxation. You may have to file information on
your contributions to and distributions from any Roth IRA on your tax return.
You may have to retain all income tax returns and records pertaining to such
contributions and distributions until your interests in all Roth IRAs are
distributed.
Like traditional IRAs, taxable distributions from a Roth IRA are not entitled
to special favorable ten-year averaging and long-term capital gain treatment
available in limited cases to certain distributions from qualified plans.
The following distributions from Roth IRAs are free of income tax:
.. rollovers from a Roth IRA to another Roth IRA;
.. direct transfers from a Roth IRA to another Roth IRA;
.. qualified distributions from a Roth IRA; and
.. return of excess contributions or amounts recharacterized to a traditional
IRA.
QUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Qualified distributions from Roth IRAs
made because of one of the following four qualifying events or reasons are not
includable in income:
.. you are age 59 1/2 or older; or
.. you die; or
.. you become disabled (special federal income tax definition); or
.. your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1)Regular contributions.
(2)Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a)Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b)Nontaxable portion.
(3)Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped, then added together as follows:
(1)All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2)All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
(3)All conversion contributions made during the year are added together.
Any recharacterized contributions that end up in a Roth IRA are added to the
appropriate contribution group for the year that the original contribution
would have been taken into account if it had been made directly to the Roth IRA.
Any recharacterized contribution that ends up in an IRA other than a Roth IRA
is disregarded for the purpose of grouping both contributions and
distributions. Any amount withdrawn to correct an excess contribution
(including the earnings withdrawn) is also disregarded for this purpose.
REQUIRED MINIMUM DISTRIBUTIONS DURING LIFE
Lifetime required minimum distributions do not apply.
REQUIRED MINIMUM DISTRIBUTIONS AT DEATH
Same as traditional IRA under "What are the required minimum distribution
payments after you die?", assuming death before the Required Beginning Date.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH
Distributions to a beneficiary generally receive the same tax treatment as if
the distribution had been made to you.
BORROWING AND LOANS ARE PROHIBITED TRANSACTIONS
Same as traditional IRA.
EXCESS CONTRIBUTIONS TO ROTH IRAS
Generally the same as traditional IRA, except that regular contributions made
after age 70 1/2 are not excess contributions.
Excess rollover contributions to Roth IRAs are contributions not eligible to be
rolled over.
You can withdraw or recharacterize any contribution to a Roth IRA before the
due date (including extensions) for filing your federal income tax return for
the tax year. If you do this, you must also withdraw or recharacterize any
earnings attributable to the contribution.
EARLY DISTRIBUTION PENALTY TAX
Same as traditional IRA.
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FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts
and specified tax-favored savings or retirement plans or arrangements. You may
be able to elect out of this income tax withholding in some cases. Generally,
we do not have to withhold if your distributions are not taxable. The rate of
withholding will depend on the type of distribution and, in certain cases, the
amount of your distribution. Any income tax withheld is a credit against your
income tax liability. If you do not have sufficient income tax withheld or do
not make sufficient estimated income tax payments, you may incur penalties
under the estimated income tax rules.
You must file your request not to withhold in writing before the payment or
distribution is made. Our processing office will provide forms for this
purpose. You cannot elect out of withholding unless you provide us with your
correct Taxpayer Identification Number and a United States residence address.
You cannot elect out of withholding if we are sending the payment out of the
United States.
You should note the following special situations:
.. We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
.. We are required to withhold on the gross amount of a distribution from a
Roth IRA to the extent it is reasonable for us to believe that a
distribution is includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U. S. entity recipients
which are treated as foreign because they fail to document their U.S. status
before payment is made. We do not discuss these rules here in detail. However,
we may require additional documentation in the case of payments made to United
States persons living abroad and non-United States persons (including U.S.
entities treated as foreign) prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. Generally, an election out of
federal withholding will also be considered an election out of state
withholding. In some states, you may elect out of state withholding, even if
federal withholding applies. In some states, the income tax withholding is
completely independent of federal income tax withholding. If you need more
information concerning a particular state or any required forms, call our
processing office at the toll-free number.
FEDERAL INCOME TAX WITHHOLDING ON PERIODIC ANNUITY PAYMENTS
Federal tax rules require payers to withhold differently on "periodic" and
"non-periodic" payments. Payers are to withhold from periodic annuity payments
as if the payments were wages. The annuity contract owner is to specify marital
status and the number of withholding exemptions claimed on an IRS Form W-4P or
similar substitute election form. If the owner does not claim a different
number of withholding exemptions or marital status, the payer is to withhold
assuming that the owner is married and claiming three withholding exemptions.
If the owner does not provide the owner's correct Taxpayer Identification
Number a payer is to withhold from periodic annuity payments as if the owner
were single with no exemptions.
A contract owner's withholding election remains effective unless and until the
owner revokes it. The contract owner may revoke or change a withholding
election at any time.
FEDERAL INCOME TAX WITHHOLDING ON NON-PERIODIC ANNUITY PAYMENTS (WITHDRAWALS)
Non-periodic distributions include partial withdrawals, total surrenders and
death benefits. Payers generally withhold federal income tax at a flat 10% rate
from (i) the taxable amount in the case of nonqualified contracts, and (ii) the
payment amount in the case of traditional IRAs and Roth IRAs, where it is
reasonable to assume an amount is includable in gross income.
As described below, there is no election out of federal income tax withholding
if the payment is an eligible rollover distribution from a qualified plan. If a
non-periodic distribution from a qualified plan is not an eligible rollover
distribution then election out is permitted. If there is no election out, the
10% withholding rate applies.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
The plan administrator is responsible for making all required notifications on
tax matters to plan participants and to the IRS. See Appendix II at the end of
this Prospectus.
MANDATORY WITHHOLDING FROM QUALIFIED PLAN DISTRIBUTIONS
Unless the distribution is directly rolled over to another eligible retirement
plan, eligible rollover distributions from qualified plans are subject to
mandatory 20% withholding. The plan administrator is responsible for
withholding from qualified plan distributions and communicating to the
recipient whether the distribution is an eligible rollover distribution.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 70 for taxes. We
do not now, but may in the future set up reserves for such taxes.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate account. These tax benefits, which may
include the foreign tax credit and the corporate dividends received deduction,
are not passed back to you, since we are the owner of the assets from which tax
benefits may be derived.
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8. More information
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ABOUT SEPARATE ACCOUNT NO. 70
Each variable investment option is a subaccount of Separate Account No. 70. We
established Separate Account No. 70 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account No. 70 and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. For example, we may withdraw amounts from Separate Account
No. 70 that represent our investments in Separate Account No. 70 or that
represent fees and charges under the contracts that we have earned. Also, we
may, at our sole discretion, invest Separate Account No. 70 assets in any
investment permitted by applicable law. The results of Separate Account
No. 70's operations are accounted for without regard to AXA Equitable's other
operations. The amount of some of our obligations under the contracts is based
on the assets in Separate Account No. 70. However, the obligations themselves
are obligations of AXA Equitable.
Separate Account No. 70 is registered under the Investment Company Act of 1940
and is registered and classified under that act as a "unit investment trust."
The SEC, however, does not manage or supervise AXA Equitable or Separate
Account No. 70. Although Separate Account No. 70 is registered, the SEC does
not monitor the activity of Separate Account No. 70 on a daily basis. AXA
Equitable is not required to register, and is not registered, as an investment
company under the Investment Company Act of 1940.
Each subaccount (variable investment option) within Separate Account No. 70
invests solely in the applicable class of shares issued by the corresponding
Portfolio of the applicable Trust.
We reserve the right subject to compliance with laws that apply:
(1)to add variable investment options to, or to remove variable investment
options from, Separate Account No. 70, or to add other separate accounts;
(2)to combine any two or more variable investment options;
(3)to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4)to operate Separate Account No. 70 or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against an
underlying mutual fund would be assessed against Separate Account No. 70 or
a variable investment option directly);
(5)to deregister Separate Account No. 70 under the Investment Company Act of
1940;
(6)to restrict or eliminate any voting rights as to Separate Account No. 70;
(7)to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies;
(8)to limit or terminate contributions or transfers into any of the variable
investment options; and
(9)to limit the number of variable investment options you may select.
If the exercise of these rights results in a material change in the underlying
investment of Separate Account No. 70, you will be notified of such exercise,
as required by law.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each Portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust serves for the benefit
of each Trust's shareholders. The Board of Trustees may take many actions
regarding the Portfolios (for example, the Board of Trustees can establish
additional Portfolios or eliminate existing Portfolios; change Portfolio
investment objectives; and change Portfolio investment policies and
strategies). In accordance with applicable law, certain of these changes may be
implemented without a shareholder vote and, in certain instances, without
advanced notice. More detailed information about certain actions subject to
notice and shareholder vote for each Trust, and other information about the
Portfolios, including portfolio investment objectives, policies, restrictions,
risks, expenses, its Rule 12b-1 plan and other aspects of its operations,
appears in the prospectuses for each Trust, which generally accompany this
prospectus, or in their respective SAIs, which are available upon request.
ABOUT THE GENERAL ACCOUNT
This contract is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a contract's account value or any Guaranteed benefits with which the
contract was issued. AXA Equitable is solely responsible to the contract owner
for the contract's account value and such Guaranteed benefits. The general
obligations and any Guaranteed benefits under the contract are supported by AXA
Equitable's general account and are subject to AXA Equitable's claims paying
ability. An owner should look to the financial strength of AXA Equitable for
its claims paying ability. Assets in the general account are not segregated for
the exclusive benefit of any particular contract or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings
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are subject to change and have no bearing on the performance of the variable
investment options. You may also speak with your financial representative.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Interests under
the contracts in the general account have not been registered and are not
required to be registered under the Securities Act of 1933 because of
exemptions and exclusionary provisions that apply. The general account is not
required to register as an investment company under the Investment Company Act
of 1940 and it is not registered as an investment company under the Investment
Company Act of 1940. The contract is a "covered security" under the federal
securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account . The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
<R>
</R>
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our "business day" is generally any day the New York Stock Exchange ("NYSE") is
open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of
an earlier close of regular trading). A business day does not include a day on
which we are not open due to emergency conditions determined by the Securities
and Exchange Commission. We may also close early due to such emergency
conditions. Contributions will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
.. If your contribution, transfer or any other transaction request containing
all the required information reaches us on any of the following, we will
use the next business day:
-- on a non-business day;
-- after 4:00 p.m. Eastern Time on a business day; or
-- after an early close of regular trading on the NYSE on a business day.
.. If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
.. When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
.. If we have entered into an agreement with your broker-dealer for automated
processing of contributions and/or transfers upon receipt of customer
order, your contribution and/or transfer will be considered received at the
time your broker-dealer receives your contribution and/or transfer and all
information needed to process your application, along with any required
documents. Your broker-dealer will then transmit your order to us in
accordance with our processing procedures. However, in such cases, your
broker-dealer is considered a processing office for the purpose of
receiving the contribution and/or transfer. Such arrangements may apply to
initial contributions, subsequent contributions, and/or transfers, and may
be commenced or terminated at any time without prior notice. If required by
law, the "closing time" for such orders will be earlier than 4:00 p.m.,
Eastern Time.
CONTRIBUTIONS AND TRANSFERS
.. Contributions allocated to the variable investment options are invested at
the unit value next determined after the receipt of the contribution.
.. Contributions allocated to the guaranteed interest option will receive the
crediting rate in effect on that business day for the specified time period.
.. Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges and
trustee to trustee transfers. Your financial professional can provide
information or you can call our processing office.
.. Transfers to or from variable investment options will be made at the unit
value next determined after the receipt of the transfer request.
.. Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
.. For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts, we have the right to vote on certain
matters involving the Portfolios, such as:
.. the election of trustees; or
.. the formal approval of independent public accounting firms selected for
each Trust; or
.. any other matters described in the prospectus for each Trust or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a Portfolio for which no instructions have been
received in the same proportion as we vote shares of that Portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote
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directly because of amounts we have in a Portfolio in the same proportions that
contract owners vote. One effect of proportional voting is that a small number
of contract owners may determine the outcome of a vote.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable annuity and/or variable life insurance products,
and to separate accounts of insurance companies, both affiliated and
unaffiliated with AXA Equitable. AXA Premier VIP Trust and EQ Advisors Trust
also sell their shares to the trustee of a qualified plan for AXA Equitable. We
currently do not foresee any disadvantages to our contract owners arising out
of these arrangements. However, the Board of Trustees or Directors of each
Trust intends to monitor events to identify any material irreconcilable
conflicts that may arise and to determine what action, if any, should be taken
in response. If we believe that a Board's response insufficiently protects our
contract owners, we will see to it that appropriate action is taken to do so.
SEPARATE ACCOUNT NO. 70 VOTING RIGHTS
If actions relating to the Separate Account require contract owner approval,
contract owners will be entitled to one vote for each unit they have in the
variable investment options. Each contract owner who has elected a variable
annuity payout option may cast the number of votes equal to the dollar amount
of reserves we are holding for that annuity in a variable investment option
divided by the annuity unit value for that option. We will cast votes
attributable to any amounts we have in the variable investment options in the
same proportion as votes cast by contract owners.
CHANGES IN APPLICABLE LAW
The voting rights we describe in this Prospectus are created under applicable
federal securities laws. To the extent that those laws or the regulations
published under those laws eliminate the necessity to submit matters for
approval by persons having voting rights in separate accounts of insurance
companies, we reserve the right to proceed in accordance with those laws or
regulations.
<R>
CYBERSECURITY
Our variable product business is highly dependent upon the effective operation
of our computer systems and those of our business partners, so our business is
potentially susceptible to operational and information security risks resulting
from a cyber-attack. These risks include, among other things, the theft,
misuse, corruption and destruction of data maintained online or digitally,
denial of service attacks on websites and other operational disruption and
unauthorized release of confidential customer information. Cyber-attacks
affecting us, any third party administrator, the underlying funds,
intermediaries and other affiliated or third-party service providers may
adversely affect us and your Contract Value. For instance, cyber-attacks may
interfere with our processing of contract transactions, including the
processing of orders from our website or with the underlying funds, impact our
ability to calculate account unit values, cause the release and possible
destruction of confidential customer or business information, impede order
processing, subject us and/or our service providers and intermediaries to
regulatory fines and financial losses and/or cause reputational damage. Cyber
security risks may also impact the issuers of securities in which the
underlying funds invest, which may cause the funds underlying your Contract to
lose value. There can be no assurance that we or the underlying funds or our
service providers will avoid losses affecting your Contract due to
cyber-attacks or information security breaches in the future.
</R>
MISSTATEMENT OF AGE
If the age of any person upon whose life or age a benefit provided under a
Guaranteed benefit has been misstated, any such benefit will be that which
would have been purchased on the basis of the correct age. If that person would
not have been eligible for that Guaranteed benefit at the correct age, (i) the
benefit will be rescinded; (ii) any charges that were deducted for the benefit
will be refunded and applied to the Total account value of the contract, and
(iii) only the death benefit provided by amounts allocated to the Investment
account will apply.
STATUTORY COMPLIANCE
We have the right to change your contract without the consent of any other
person in order to comply with any laws and regulations that apply, including
but not limited to changes in the Internal Revenue Code, in Treasury
Regulations or in published rulings of the Internal Revenue Service and in
Department of Labor regulations.
Any change in your contract must be in writing and made by an authorized
officer of AXA Equitable. We will provide notice of any contract change.
The benefits under your contract will not be less than the minimum benefits
required by any state law that applies.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 70, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 70, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The
financial statements of AXA Equitable have relevance to the contracts only to
the extent that they bear upon the ability of AXA Equitable to meet its
obligations under the contracts. The SAI is available free of charge. You may
request one by writing to our processing office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
notification of any change at our processing office.
We may refuse to process a change of ownership of an NQ contract to an entity
without appropriate documentation of status on IRS Form W-9 (or, if IRS Form
W-9 cannot be provided because the entity is not a U.S. entity, on the
appropriate type of Form W-8).
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Following a change of ownership, the existing beneficiary designations will
remain in effect until the new owner provides new designations.
Any Guaranteed benefit in effect will generally terminate if you change
ownership of the contract. A Guaranteed benefit will not terminate if the
ownership of the contract is transferred from a non-natural owner to an
individual but the contract will continue to be based on the annuitant's life.
It will also not terminate if you transfer your individually-owned contract to
a trust held for your (or your and your immediate family's) benefit; it will
continue to be based on your life. If you were not the annuitant under the
individually-owned contract, you will become the annuitant when ownership is
changed. Please speak with your financial professional for further information.
For a state-by-state description of all material variations of this contract,
including information regarding the termination of benefits under your
contract, see Appendix V later in this Prospectus.
In general, you cannot assign or transfer ownership of an IRA or QP contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your IRA or QP contract to
another similar arrangement under federal income tax rules.
Loans are not available under your NQ contract.
In certain circumstances, you may collaterally assign all or a portion of the
value of your NQ contract as security for a loan with a third party lender. The
terms of the assignment are subject to our approval. The amount of the
assignment may never exceed your Total account value on the day prior to the
date we receive all necessary paperwork to effect the assignment. Only one
assignment per contract is permitted. You must indicate that you have not
purchased, and will not purchase, any other AXA Equitable (or affiliate's) NQ
deferred annuity contract in the same calendar year that you purchase the
contract.
A collateral assignment does not terminate your benefits under the contract.
However, a collateral assignment will terminate your optional benefits. All
withdrawals, distributions and benefit payments, as well as the exercise of any
benefits, are subject to the assignee's prior approval and payment directions.
We will follow such directions until AXA Equitable receives written
notification satisfactory to us that the assignment has been terminated. If the
owner or beneficiary fails to provide timely notification of the termination,
it is possible that we could pay the assignee more than the amount of the
assignment, or continue paying the assignee pursuant to existing directions
after the collateral assignment has in fact been terminated. Our payment of any
death benefit to the beneficiary will also be subject to the terms of the
assignment until we receive written notification satisfactory to us that the
assignment has been terminated.
In some cases, an assignment or change of ownership may have adverse tax
consequences. See "Tax information" earlier in this Prospectus.
ABOUT CUSTODIAL IRAS
For certain custodial IRA accounts, after your contract has been issued, we may
accept transfer instructions by telephone, mail, facsimile or electronically
from a broker-dealer, provided that we or your broker-dealer have your written
authorization to do so on file. Accordingly, AXA Equitable will rely on the
stated identity of the person placing instructions as authorized to do so on
your behalf. AXA Equitable will not be liable for any claim, loss, liability or
expenses that may arise out of such instructions. AXA Equitable will continue
to rely on this authorization until it receives your written notification at
its processing office that you have withdrawn this authorization. AXA Equitable
may change or terminate telephone or electronic or overnight mail transfer
procedures at any time without prior written notice and restrict facsimile,
internet, telephone and other electronic transfer services because of
disruptive transfer activity.
HOW DIVORCE MAY AFFECT YOUR GUARANTEED BENEFITS
Our optional benefits do not provide a cash value or any minimum account value.
In the event that you and your spouse become divorced after you purchase a
contract with a Guaranteed benefit, we will not divide the benefit base(s) used
to calculate the benefits as part of the divorce settlement or judgment. As a
result of the divorce, we may be required to withdraw amounts from the
Protected Benefit account to be paid to an ex-spouse. Any such withdrawal will
be considered a withdrawal from the contract even if the withdrawal is made to
fund an AXA Equitable contract owned by your ex-spouse. This means that your
Guaranteed benefit will be reduced.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by AXA Advisors and it also serves as principal
underwriter of Separate Account No. 70. The offering of the contracts is
intended to be continuous.
<R>
AXA Advisors is an affiliate of AXA Equitable. AXA Advisors is under the common
control of AXA Financial, Inc. It's principal business address is 1290 Avenue
of the Americas, New York, NY 10104. AXA Advisors is registered with the SEC as
a broker-dealer and is a member of the Financial Industry Regulatory Authority,
Inc. ("FINRA") and it acts as a distributor for other AXA Equitable life and
annuity products.
</R>
The contracts are sold by financial professionals of AXA Advisors and its
affiliates. AXA Equitable pays compensation to AXA Advisors based on contracts
sold. AXA Equitable may also make additional payments to AXA Advisors. All
payments will be in compliance with all applicable FINRA rules and other laws
and regulations.
Although AXA Equitable takes into account all of its distribution and other
costs in establishing the level of fees and charges under its contracts, none
of the compensation paid to AXA Advisors discussed in this section of the
Prospectus is imposed as separate fees or charges under your contract. AXA
Equitable, however, intends to recoup amounts it pays for distribution and
other services through the fees and charges of the contracts and payments it
receives for providing administrative, distribution and other services to the
Portfolios. For information about the fees and charges under the contract, see
"Fee table" and "Charges and expenses" earlier in this Prospectus.
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<R>
COMPENSATION. AXA Equitable pays compensation to AXA Advisors based on
contributions made on the contracts sold through AXA Advisors
(''contribution-based compensation''). The contribution-based compensation will
generally not exceed ongoing annual compensation of up to 1.20% of the Total
account value of the contract sold (''asset-based compensation''). Total
compensation paid to a financial professional electing to receive both
contribution-based and asset-based compensation could over time exceed the
total compensation that would otherwise be paid on the basis of contributions
alone. The compensation paid by AXA Advisors varies among financial
professionals. Therefore, you should contact your financial professional for
information about the compensation he or she receives and any related
incentives, as described immediately below.
</R>
AXA Advisors also pays a portion of the compensation it receives to its
managerial personnel. AXA Advisors also pays its financial professionals and
managerial personnel other types of compensation including service fees,
expense allowance payments and health and retirement benefits. AXA Advisors
also pays its financial professionals, managerial personnel and persistency
bonuses. AXA Advisors may offer sales incentive programs to financial
professionals who meet specified production levels for the sales of both AXA
Equitable contracts and contracts offered by other companies. These incentives
provide non-cash compensation such as stock options awards and/or stock
appreciation rights, expense-paid trips, expense-paid education seminars and
merchandise.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their contract.
DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of contribution-based compensation and/or
asset-based compensation for the sale of an AXA Equitable contract than it pays
for the sale of a contract or other financial product issued by a company other
than AXA Equitable. AXA Advisors may pay higher compensation on certain
products in a class than others based on a group or sponsored arrangement, or
between older and newer versions or series of the same contract. This practice
is known as providing "differential compensation." Differential compensation
may involve other forms of compensation to AXA Advisors personnel. Certain
components of the compensation paid to managerial personnel are based on
whether the sales involve AXA Equitable contracts. Managers earn higher
compensation (and credits toward awards and bonuses) if the financial
professionals they manage sell a higher percentage of AXA Equitable contracts
than products issued by other companies. Other forms of compensation provided
to its financial professionals include health and retirement benefits, expense
reimbursements, marketing allowances and contribution-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
contracts and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable contract over a contract
or other financial product issued by a company not affiliated with AXA
Equitable. However, under applicable rules of the FINRA, AXA Advisors financial
professionals may only recommend to you products that they reasonably believe
are suitable for you based on the facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals of AXA Advisors may nonetheless face
conflicts of interest because of the differences in compensation from one
product category to another, and because of differences in compensation between
products in the same category. For more information, contact your financial
professional.
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Appendix I: Dropping or changing your Guaranteed benefits
--------------------------------------------------------------------------------
PRE-FUNDING DROP OR CHANGE
The following table is designed to show your options if you decide to drop your
Guaranteed benefit(s) prior to the funding of your Protected Benefit account.
In general, you can drop your GMIB and change your Guaranteed minimum death
benefit. However, in general, your Guaranteed minimum death benefit cannot be
dropped or changed without first dropping your GMIB. You may drop the "Greater
of" death benefit without dropping the GMIB only if we exercise our contractual
right to change the fee for the "Greater of" death benefit without a change to
the fee for GMIB. All requests to drop or change a Guaranteed benefit must be
submitted on an administrative form we provide for this specific purpose.
-----------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION PRE-FUNDING DROP OF: YOUR OPTION(S) OR RESULT FOLLOWING THE DROP OR CHANGE
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . You can change your death . You can drop the Highest
.. Return of Principal death benefit to the Highest Anniversary Value death
benefit Anniversary Value death benefit, either
benefit. If you do not pre-funding or
make this change, the post-funding.
Return of Principal death . You can drop the Return
benefit will remain. of Principal death
benefit post-funding only.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . You can keep your Highest . You can drop the Highest
.. Highest Anniversary Value Anniversary Value death Anniversary Value death
death benefit benefit. benefit, either
-or- pre-funding or
. You can change your death post-funding.
benefit to the Return of . You can drop the Return
Principal death benefit. of Principal death
benefit post-funding only.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . The Return of Principal . You can drop the Return
.. Highest Anniversary Value death benefit will of Principal death
death benefit automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . By dropping your GMIB, . You can drop the Highest
.. "Greater of" death benefit you are no longer Anniversary Value death
eligible to have the benefit, either
"Greater of" death pre-funding or
benefit. post-funding.
. You can change your death . You can drop the Return
benefit to the Highest of Principal death
Anniversary Value death benefit post-funding only.
benefit. If you do not
make this change, the
Return of Principal death
benefit will
automatically become your
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . You can change your death . You can drop the Highest
.. "Greater of" death benefit benefit to the Highest Anniversary Value death
Anniversary Value death benefit, either
benefit. If you do not pre-funding or post-
make this change, the funding.
Return of Principal death . You can drop the Return
benefit will of Principal death
automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB "Greater of" death benefit/(1)/ . You can change your death . You can drop the Highest
.. "Greater of" death benefit benefit to the Highest Anniversary Value death
Anniversary Value death benefit, either
benefit. If you do not pre-funding or post-
make this change, the funding.
Return of Principal death . You can drop the Return
benefit will of Principal death
automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
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APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
----------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION PRE-FUNDING DROP OF: YOUR OPTION(S) OR RESULT FOLLOWING THE DROP OR CHANGE
----------------------------------------------------------------------------------------------------------------------------
.. Highest Anniversary Value Highest Anniversary Value . The Return of Principal . You can drop the Return
death benefit death benefit death benefit will of Principal death
automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
----------------------------------------------------------------------------------------------------------------------------
.. Return of Principal death Not Applicable: The Return of
benefit Principal death benefit cannot
be dropped prior to funding the
Protected Benefit account
----------------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard death RMD Wealth Guard death . You may elect the Return . You can drop the Return
benefit benefit of Principal death of Principal death
benefit or Highest benefit post- funding
Anniversary Value death only.
benefit. . You can drop the Highest
Anniversary Value death
benefit either
pre-funding or
post-funding.
----------------------------------------------------------------------------------------------------------------------------
(1)You may drop the "Greater of" death benefit without dropping the GMIB only
if we exercise our contractual right to change the fee for the "Greater of"
death benefit without a change to the fee for the GMIB. We must receive your
request to drop the "Greater of" death benefit within 30 days of the fee
change notification.
POST-FUNDING DROP
The following table is designed to show your options if you decide to drop your
Guaranteed benefit(s) after you have funded your Protected Benefit account. In
general, you can drop both your GMIB and Guaranteed minimum death benefit or,
in some cases, drop your GMIB and retain your Guaranteed minimum death benefit.
However, in general, your Guaranteed minimum death benefit cannot be dropped
without first dropping your GMIB. You may drop the "Greater of" death benefit
without dropping the GMIB only if we exercise our contractual right to change
the fee for the "Greater of" death benefit without a change to the fee for the
GMIB. All requests to drop a Guaranteed benefit must be submitted on an
administrative form we provide for this specific purpose. Please see "Dropping
or changing your Guaranteed benefits" in "Contract features and benefits" for
information on when you are eligible to drop your Guaranteed benefits after
having funded your Protected Benefit account.
------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION POST-FUNDING DROP OF:/(1)/ YOUR OPTION(S) OR RESULT FOLLOWING THE DROP
------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . The Return of Principal . You can drop the Return
.. Return of Principal death death benefit will remain of Principal death
benefit in effect. benefit by notifying us
and taking a full
withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . Your Guaranteed benefits Not Applicable.
.. Return of Principal death will terminate by
benefit notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . Your Highest Anniversary . You can drop the Highest
.. Highest Anniversary Value Value death benefit Anniversary Value death
death benefit remains in effect. benefit by notifying us
and taking a full
withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------
I-2
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
------------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION POST-FUNDING DROP OF:/(1)/ YOUR OPTION(S) OR RESULT FOLLOWING THE DROP
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . Your Guaranteed benefits Not Applicable.
.. Highest Anniversary Value will terminate by
death benefit notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . By dropping your GMIB, . You can drop the Return
.. "Greater of" death benefit you are no longer of Principal death
eligible to have the benefit at a later date.
"Greater of" death
benefit.
. The Return of Principal
death benefit will become
your new Guaranteed
minimum death benefit.
The Return of Principal
benefit base will equal
all contributions and
transfers to your
Protected Benefit
account, adjusted for
withdrawals on a pro rata
basis.
------------------------------------------------------------------------------------------------------------------------------
.. GMIB . Your Guaranteed benefits Not Applicable.
.. "Greater of" death benefit Both benefits will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
.. GMIB . The Return of Principal . You can drop the Return
.. "Greater of" death benefit "Greater of" death benefit/(2)/ death benefit will of Principal death
automatically become your benefit at a later date.
new Guaranteed minimum
death benefit.
------------------------------------------------------------------------------------------------------------------------------
.. Highest Anniversary Value Highest Anniversary Value . Your Guaranteed benefit Not Applicable.
death benefit death benefit will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
.. Return of Principal death Return of Principal death . Your Guaranteed benefit Not Applicable.
benefit benefit will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
I-3
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION POST-FUNDING DROP OF:/(1)/ YOUR OPTION(S) OR RESULT FOLLOWING THE DROP
------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard death RMD Wealth Guard death . Your Guaranteed benefit . Not applicable.
benefit benefit will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
or making a one-time
transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
. Your death benefit will
be equal to the return of
your account value.
------------------------------------------------------------------------------------------------------------------
(1)When a Guaranteed benefit (other than the Return of Principal death benefit)
is dropped on any date other than a contract date anniversary, we will
deduct a pro rata portion of the charge for that year.
(2)You may drop the "Greater of" death benefit without dropping the GMIB only
if we exercise our contractual right to change the fee for the "Greater of"
death benefit without a change to the fee for the GMIB. We must receive your
request to drop the "Greater of" death benefit within 30 days of the fee
change notification.
I-4
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
Appendix II: Purchase considerations for QP contracts
--------------------------------------------------------------------------------
<R>
Trustees who are considering the purchase of a Retirement Cornerstone(R) Series
E contract should discuss with their tax and ERISA advisers whether this is an
appropriate investment vehicle for the employer's plan. The QP contract and
this Prospectus should be reviewed in full, and the following factors, among
others, should be noted. Trustees should consider whether the plan provisions
permit the investment of plan assets in the QP contract, the distribution of
such an annuity, the purchase of the Guaranteed benefits, and the payment of
death benefits in accordance with the requirements of the federal income tax
rules. Assuming continued plan qualification and operation, earnings on
qualified plan assets will accumulate value on a tax-deferred basis even if the
plan is not funded by the Retirement Cornerstone(R) Series E QP contract or
another annuity contract. Therefore, the plan trust should purchase a
Retirement Cornerstone(R) Series E QP contract to fund a plan for the
contract's features and benefits and not for tax deferral, after considering
the relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles. There are significant issues in the purchase
of a Retirement Cornerstone(R) Series E contract in a defined benefit plan.
</R>
This QP contract accepts only transfer contributions from other investments
within an existing qualified plan trust. We will not accept ongoing payroll
contributions or contributions directly from the employer. For 401(k) plans, no
employee after-tax contributions are accepted. A "designated Roth contribution
account" is not available in the QP contract. Checks written on accounts held
in the name of the employer instead of the plan or the trust will not be
accepted. Only one additional transfer contribution may be made per contract
year.
If amounts attributable to an excess or mistaken contribution must be
withdrawn, there may be a benefit base adjustment to a Guaranteed benefit. If
in a defined benefit plan the plan's actuary determines that an overfunding in
the QPDB contract has occurred, then any transfers of plan assets out of the
QPDB contract may also result in a benefit base adjustment on the amount being
transferred.
In order to purchase the QPDB contract for a defined benefit plan, the plan's
actuary will be required to determine a current dollar value of each plan
participant's accrued benefit so that individual contracts may be established
for each plan participant. We do not permit defined contribution or defined
benefit plans to pool plan assets attributable to the accrued benefits of
multiple plan participants.
For defined benefit plans, the maximum percentage of actuarial value of the
plan participant's normal retirement benefit that can be funded by a QPDB
contract is 80%. The total account value under a QPDB contract may at any time
be more or less than the lump sum actuarial equivalent of the accrued benefit
for a defined benefit plan participant. AXA Equitable does not guarantee that
the Total account value under a QPDB contract will at any time equal the
actuarial value of 80% of a participant/employee's accrued benefit.
While the contract is owned by the plan trust, all payments under the contract
will be made to the plan trust owner. If the plan rolls over a contract into an
IRA for the benefit of a former plan participant through a contract conversion,
it is the plan's responsibility to adjust the value of the contract to the
actuarial equivalent of the participant's benefit, prior to the contract
conversion.
AXA Equitable's only role is that of the issuer of the contract. AXA Equitable
is not the plan administrator. AXA Equitable will not perform or provide any
plan recordkeeping services with respect to the QP contracts. The plan's
administrator will be solely responsible for performing or providing for all
such services. There is no loan feature offered under the QP contracts, so if
the plan provides for loans and a participant takes a loan from the plan, other
plan assets must be used as the source of the loan and any loan repayments must
be credited to other investment vehicles and/or accounts available under the
plan. AXA Equitable will never make payments under a QP contract to any person
other than the plan trust owner.
Given that required minimum distributions ("RMDs") must generally commence from
the plan for annuitants after age 70 1/2, trustees should consider the
following in connection with the GMIB:
.. whether RMDs the plan administrator must make under QP contracts would
cause withdrawals to be treated as Excess withdrawals and reduce the value
of the Guaranteed benefits;
.. that provisions in the Treasury Regulations on RMDs require that the
actuarial present value of additional annuity contract benefits be added to
the dollar amount credited for purposes of calculating RMDs. This could
increase the amounts required to be distributed; and
.. that if the Protected Benefit account value goes to zero as provided under
the contract, resulting payments will be made to the plan trust and that
portion of the Retirement Cornerstone(R) Series E contract may not be
rollover eligible.
For QPDC contracts only: You should not elect the RMD Wealth Guard death
benefit under a QPDC contract unless you intend to convert to an IRA prior to
taking lifetime RMDs, because withdrawals from your Protected Benefit account
reduce your RMD Wealth Guard death benefit base on a pro rata basis, until any
such time as the QPDC contract is converted to an IRA.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
II-1
APPENDIX II: PURCHASE CONSIDERATIONS FOR QP CONTRACTS
Appendix III: Guaranteed benefit base examples
--------------------------------------------------------------------------------
Assuming $100,000 is invested in the Protected Benefit investment options, with
no additional contributions, no transfers and no withdrawals, the Guaranteed
minimum death benefit base and Guaranteed minimum income benefit base for an
owner age 60 would be calculated as follows:
----------------------------------------------------------------------------------------------------------------
GUARANTEED
MINIMUM
GUARANTEED MINIMUM DEATH BENEFIT INCOME BENEFIT
-------------------------------- --------------
HIGHEST
ANNIVERSARY
PROTECTED VALUE TO ROLL-UP TO
END OF BENEFIT RETURN OF RMD WEALTH AGE 85 AGE 85 ''GREATER
CONTRACT ACCOUNT PRINCIPAL GUARD DEATH BENEFIT BENEFIT OF'' BENEFIT GMIB BENEFIT
YEAR VALUE BENEFIT BASE BENEFIT BASE BASE BASE BASE BASE
----------------------------------------------------------------------------------------------------------------
1 $103,000 $100,000/(1)/ $103,000/(2)/ $103,000/(4)/ $104,000 $104,000/(7)/ $104,000
----------------------------------------------------------------------------------------------------------------
2 $107,120 $100,000/(1)/ $107,120/(2)/ $107,120/(4)/ $108,160 $108,160/(7)/ $108,160
----------------------------------------------------------------------------------------------------------------
3 $113,547 $100,000/(1)/ $113,547/(2)/ $113,547/(4)/ $113,547/(6)/ $113,547/(7)/ $113,547
----------------------------------------------------------------------------------------------------------------
4 $120,360 $100,000/(1)/ $120,360/(2)/ $120,360/(4)/ $120,360/(6)/ $120,360/(7)/ $120,360
----------------------------------------------------------------------------------------------------------------
5 $128,785 $100,000/(1)/ $128,785/(2)/ $128,785/(4)/ $128,785/(6)/ $128,785/(7)/ $128,785
----------------------------------------------------------------------------------------------------------------
6 $126,210 $100,000/(1)/ $128,785/(3)/ $128,785/(5)/ $133,937 $133,937/(7)/ $133,937
----------------------------------------------------------------------------------------------------------------
7 $128,734 $100,000/(1)/ $128,785/(3)/ $128,785/(5)/ $139,294 $139,294/(7)/ $139,294
----------------------------------------------------------------------------------------------------------------
PROTECTED BENEFIT ACCOUNT VALUE
The Protected Benefit account values for contract years 1 through 7 are based
on hypothetical rates of return of 3.00%, 4.00%, 6.00%, 6.00%, 7.00%, (2.00)%,
and 2.00%, respectively. We are using these rates solely to illustrate how the
benefit is calculated. The rates of return bear no relationship to past or
future investment results.
For example, at the end of contract year 1, the Protected Benefit account value
equals $103,000
Calculated as follows: $100,000 x (1+3.00%) = $103,000
Your applicable death benefit in connection with the Protected Benefit variable
investment options is equal to the Protected Benefit account value or the
Guaranteed minimum death benefit base, if greater.
GUARANTEED MINIMUM INCOME BENEFIT
GMIB BENEFIT BASE
The example assumes no withdrawals under the contract, therefore the Deferral
Roll-up rate would apply. At the end of contract year 1, the GMIB benefit base
is equal to the initial contribution to the Protected Benefit account,
multiplied by [1+ the Deferral Roll-up rate of 4.00%]. For contract years 2, 6
and 7, the GMIB benefit base is equal to the previous year's GMIB benefit base
multiplied by [1+ the Deferral Roll-up rate of 4.00%]. At the end of contract
years 3 through 5, the GMIB benefit base is reset to the current Protected
Benefit account value.
For example:
.. At the end of contract year 2, the GMIB benefit base equals $108,160
Calculated as follows: $104,000 x (1+4.00%) = $108,160
.. At the end of contract year 4, the GMIB benefit base equals $120,360
The GMIB benefit base is being 'reset' to equal the Protected Benefit
account value of $120,360
GUARANTEED MINIMUM DEATH BENEFIT
RETURN OF PRINCIPAL BENEFIT BASE
(1)At the end of contract years 1 through 7, the Return of Principal death
benefit base is equal to the initial contribution to the Protected Benefit
account variable investment options.
III-1
APPENDIX III: GUARANTEED BENEFIT BASE EXAMPLES
RMD WEALTH GUARD BENEFIT BASE
(2)At the end of contract years 1 through 5, the RMD Wealth Guard death benefit
base is equal to the current Protected Benefit account value.
For example:
. At the end of contract year 2, the RMD Wealth Guard death benefit base
equals the Protected Benefit account value of $107,120.
(3)At the end of contract years 6 and 7, the RMD Wealth Guard death benefit
base is equal to the RMD Wealth Guard death benefit base at the end of the
prior year since it is higher than the current Protected Benefit account
value.
For example:
. At the end of contract year 6, the RMD Wealth Guard death benefit base
equals $128,785 or the RMD Wealth Guard death benefit base at the end of
year 5.
HIGHEST ANNIVERSARY VALUE BENEFIT BASE
(4)At the end of contract years 1 through 5, the Highest Anniversary Value
benefit base is equal to the current Protected Benefit account value.
For example:
. At the end of contract year 2, the Highest Anniversary Value benefit base
equals the Protected Benefit account value of $107,120
(5)At the end of contract years 6 and 7, the benefit base is equal to the
Highest Anniversary Value benefit base at the end of the prior year since it
is higher than the current Protected Benefit account value.
For example:
. At the end of contract year 6, Highest Anniversary Value benefit base
equals $128,785 or the Highest Anniversary Value benefit base at the end
of year 5.
ROLL-UP TO AGE 85 BENEFIT BASE
The example assumes no withdrawals under the contract, therefore the Deferral
Roll-up rate would apply. The Deferral Roll-up rate for the Roll-up to age 85
benefit base is assumed to be the Deferral Roll-up rate, which is 4.00%. At the
end of contract year 1, the Roll-up to age 85 benefit base is equal to the
initial contribution to the Protected Benefit account, multiplied by [1 + the
Deferral Roll-up rate of 4.00%]. At the end of contract years 2, 6 and 7, the
Roll-up to age 85 benefit base is equal to the previous year's Roll-up to age
85 benefit base, multiplied by [1 + the Deferral Roll-up rate of 4.00%]. At the
end of contract years 3 through 5, the Roll-up to age 85 benefit base is reset
to the current Protected Benefit account value.
For example:
. At the end of contract year 2, Roll-up to age 85 benefit base equals
$108,160
Calculated as follows: $104,000 x (1+4.00%) = $108,160
(6)At the end of contract year 4, the Roll-up to age 85 benefit base is reset
to the current account value.
. At the end of contract year 4, Roll-up to age 85 benefit base equals
$120,360
The GMIB benefit base is being "reset" to equal the Protected Benefit
account value of $120,360
"GREATER OF" DEATH BENEFIT BASE
The "Greater of" death benefit base is the greater of (i) the Roll-up to age 85
benefit base, and (ii) the Highest Anniversary Value benefit base.
(7)At the end of contract years 1 through 7, the benefit base is based on the
Roll-Up to age 85 benefit base.
For example:
. At the end of contract year 6, Greater of Death Benefit Base equals the
Roll-Up to age 85 benefit base of $133,937
III-2
APPENDIX III: GUARANTEED BENEFIT BASE EXAMPLES
Appendix IV: Hypothetical illustrations
--------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
<R>
The following table illustrates the changes in account values (Investment
account value and Protected Benefit account value), cash value and the values
of the "Greater of" death benefit, the Guaranteed minimum income benefit
("GMIB"), and the Annual withdrawal amount, under certain hypothetical
circumstances for the Retirement Cornerstone(R) Series E contract. The table
illustrates the operation of the contract based on a male, issue age 65, who
makes a single $100,000 contribution and takes no withdrawals. Also, the table
illustrates that $60,000 is allocated to the Protected Benefit account variable
investment options, and $40,000 is allocated to the Investment account variable
investment options. The amounts shown are for the beginning of each contract
year and assume that all of the account values are invested in Portfolios that
achieve investment returns at constant gross annual rates of 0% and 6% (i.e.,
before any investment management fees, 12b-1 fees or other expenses are
deducted from the underlying Portfolio assets). After the deduction of the
arithmetic average of the investment management fees, 12b-1 fees and other
expenses of all of the underlying portfolios (as described below), the
corresponding net annual rates of return would be (2.44)%, 3.56% for the Series
E Protected Benefit account variable investment options and (2.72)%, 3.28% for
the Series E Investment account variable investment options.
</R>
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your Protected
Benefit account value annually for the "Greater of" death benefit and GMIB
features, as well as the annual administrative charge. If the net annual rates
of return did reflect these charges, the net annual rates of return shown would
be lower; however, the values shown in the following table reflects the
following contract charges: the "Greater of" death benefit charge, the GMIB
charge, any applicable administrative charge. Please note that charges for the
"Greater of" death benefit and GMIB are always deducted from the Protected
Benefit account value.
The values shown under "Next Year's Annual withdrawal amount" for ages 70
through 95 reflect the Annual withdrawal amount available without reducing the
"Greater of" death benefit base or GMIB benefit base. A "0" under the Protected
Benefit account value column at age 95 indicates that the "Greater of" death
benefit has terminated due to insufficient account value. However, the Lifetime
GMIB payments under the GMIB have begun, and the owner is receiving lifetime
payments.
<R>
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in the table reflects (1) investment management
fees equivalent to an effective annual rate of 0.37% for the Protected Benefit
account variable investment options and of 0.58% for the Investment account
variable investment options, (2) an assumed average asset charge for all other
expenses of the underlying portfolios equivalent to an effective annual rate of
0.52% for the Protected Benefit account variable investment options and 0.59%
for the Investment account variable investment options and (3) 12b-1 fees
equivalent to an effective annual rate of 0.25% for the Protected Benefit
account variable investment options and 0.25% for the Investment account
variable investment options. These rates are the arithmetic average for all
Portfolios that are available as investment options. In other words, they are
based on the hypothetical assumption that account values are allocated equally
among the Protected Benefit account variable investment options and Investment
account variable investment options, respectively. The actual rates associated
with any contract will vary depending upon the actual allocation of the Total
account value among the investment options. These rates do not reflect the fees
and expenses for the AXA Ultra Conservative Strategy Portfolio, which is not
available for direct allocations. These rates also do not reflect expense
limitation arrangements in effect with respect to certain of the underlying
portfolios as described in the prospectuses for the underlying portfolios. With
these expense limitation arrangements, the charges shown above would be lower.
This would result in higher values than those shown in the following tables.
</R>
Because your circumstances will no doubt differ from those in the illustration
that follows, values under your contract will differ, in most cases
substantially. Please note that in certain states, we apply annuity purchase
factors that are not based on the sex of the annuitant. Upon request, we will
furnish you with a personalized illustration.
IV-1
APPENDIX IV: HYPOTHETICAL ILLUSTRATIONS
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE - SERIES E
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED MINIMUM INCOME BENEFIT - TWO YEAR LOCK
<R>
-----------------------------------------------------------------------------------------------------------
PROTECT GUARANTEE
------- ---------
PROTECTED NEXT YEAR'S
CONTRACT INVESTMENT BENEFIT "GREATER OF" GMIB BENEFIT ANNUAL WITHDRAWAL
AGE YEAR ACCOUNT VALUE ACCOUNT VALUE CASH VALUE/(+)/ DEATH BENEFIT BASE AMOUNT
-----------------------------------------------------------------------------------------------------------
0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
-----------------------------------------------------------------------------------------------------------
65 0 40,000 40,000 60,000 60,000 100,000 100,000 60,000 60,000 60,000 60,000 0 0
-----------------------------------------------------------------------------------------------------------
66 1 38,911 41,311 57,103 60,703 96,014 102,014 62,400 62,400 62,400 62,400 2,496 2,496
-----------------------------------------------------------------------------------------------------------
67 2 37,852 42,666 54,218 61,373 92,071 104,038 64,896 64,896 64,896 64,896 2,596 2,596
-----------------------------------------------------------------------------------------------------------
68 3 36,822 44,064 51,345 62,007 88,167 106,071 67,492 67,492 67,492 67,492 2,700 2,700
-----------------------------------------------------------------------------------------------------------
69 4 35,820 45,509 48,479 62,602 84,299 108,111 70,192 70,192 70,192 70,192 2,808 2,808
-----------------------------------------------------------------------------------------------------------
70 5 34,845 47,001 45,619 63,154 80,464 110,154 72,999 72,999 72,999 72,999 2,920 2,920
-----------------------------------------------------------------------------------------------------------
71 6 33,896 48,541 42,761 63,658 76,657 112,199 75,919 75,919 75,919 75,919 3,037 3,037
-----------------------------------------------------------------------------------------------------------
72 7 32,974 50,133 39,903 64,110 72,877 114,243 78,956 78,956 78,956 78,956 3,158 3,158
-----------------------------------------------------------------------------------------------------------
73 8 32,076 51,776 37,042 64,505 69,118 116,282 82,114 82,114 82,114 82,114 3,285 3,285
-----------------------------------------------------------------------------------------------------------
74 9 31,203 53,474 34,175 64,840 65,378 118,313 85,399 85,399 85,399 85,399 3,416 3,416
-----------------------------------------------------------------------------------------------------------
75 10 30,354 55,227 31,299 65,107 61,653 120,334 88,815 88,815 88,815 88,815 3,553 3,553
-----------------------------------------------------------------------------------------------------------
80 15 26,412 64,892 16,686 65,240 43,098 130,132 108,057 108,057 108,057 108,057 4,322 4,322
-----------------------------------------------------------------------------------------------------------
85 20 23,004 76,250 1,390 62,728 24,395 138,978 131,467 131,467 131,467 131,467 5,259 5,259
-----------------------------------------------------------------------------------------------------------
90 25 20,036 89,594 0 57,491 20,036 147,085 0 131,467 0 159,950 *$7,673 6,398
-----------------------------------------------------------------------------------------------------------
95 30 17,450 105,275 0 49,276 17,450 154,551 0 131,467 0 194,604 7,673 **$15,220
-----------------------------------------------------------------------------------------------------------
</R>
* Payments of $7,673 will continue as lifetime payments
** Payments of at least $15,220 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
BENEFIT ACCOUNT VALUE, INVESTMENT ACCOUNT VALUE, CASH VALUE AND GUARANTEED
BENEFITS FOR A CONTRACT WOULD BE DIFFERENT FROM THE ONES SHOWN IF THE ACTUAL
GROSS RATE OF INVESTMENT RETURN AVERAGED 0% OR 6% OVER A PERIOD OF YEARS, BUT
ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL CONTRACT YEARS. WE
CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT RESULTS CAN BE
ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME. IN FACT, FOR
ANY GIVEN PERIOD OF TIME, THE INVESTMENT RESULTS COULD BE NEGATIVE.
IV-2
APPENDIX IV: HYPOTHETICAL ILLUSTRATIONS
Appendix V: State contract availability and/or variations of certain features
and benefits
--------------------------------------------------------------------------------
The following information is a summary of the states where the Retirement
Cornerstone(R) Series E contracts or certain features and/or benefits are
either not available as of the date of this Prospectus or vary from the
contract's features and benefits as previously described in this Prospectus.
Certain features and/or benefits may have been approved in your state after
your contract was issued and cannot be added. Please contact your financial
professional for more information about availability in your state.
STATES WHERE CERTAIN RETIREMENT CORNERSTONE(R) SERIES E CONTRACT'S FEATURES
AND/OR BENEFITS ARE NOT AVAILABLE OR VARY:
<R>
----------------------------------------------------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
----------------------------------------------------------------------------------------------------------------------------------
ALABAMA See "Your right to cancel within If you reside in the state of Alabama, you
a certain number of days" in may cancel your variable annuity contract
"Contract features and benefits" and return it to us within 15 days from the
date you received it. Your refund will
equal your account value under the contract
on the day we receive notification to
cancel the contract.
----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA See "We require that the You are not required to use our forms when
following types of making a transaction request. If a written
communications be on specific request contains all the information
forms we provide for that required to process the request, we will
purpose (and submitted in the honor it. Although you are not required to
manner that the forms specify)" use our withdrawal request form, if you do
in "Who is AXA Equitable" and not specify whether we should process a
"Effect of Excess withdrawals" withdrawal that results in an Excess
in "Contract features and withdrawal, and the transaction results in
benefits" an Excess withdrawal, we will not process
that request.
See "Asset transfer program If you elect the GMIB, the ATP will
("ATP")" in "Contract features commence on the valuation day of your
and benefits" second monthiversary.
See "Your right to cancel within If you reside in the state of California
a certain number of days" in and you are age 60 or older at the time the
"Contract features and benefits" contract is issued, you may return your
Retirement Cornerstone(R) Series E contract
within 30 days from the date that you
receive it and receive a refund as
described below. This is also referred to
as the ''free look'' period.
If you allocate your entire initial
contribution to the EQ/Money Market
variable investment option (and/or
guaranteed interest option, if available),
the amount of your refund will be equal to
your contribution, unless you make a
transfer, in which case the amount of your
refund will be equal to your Total account
value on the date we receive your request
to cancel at our processing office. This
amount could be less than your initial
contribution. If you allocate any portion
of your initial contribution to the
variable investment options (other than the
EQ/Money Market variable investment
option), your refund will be equal to your
Total account value on the date we receive
your request to cancel at our processing
office.
See ''Transfers of ownership, Guaranteed benefits do not terminate upon a
collateral assignments, loans change of owner or absolute assignment of
and borrowing'' in ''More the contract. Guaranteed benefits will
Information'' continue to be based on the original
measuring life (i.e., owner, older joint
owner, annuitant, older joint annuitant).
----------------------------------------------------------------------------------------------------------------------------------
COLORADO See "Your right to cancel within If you reside in the state of Colorado, you
a certain number of days" in may cancel your variable annuity contract
"Contract features and benefits" and return it to us within 15 days from the
date you received it. Your refund will
equal your account value under the contract
on the day we receive notification to
cancel the contract.
----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT See "Charge for each additional The charge for transfers does not apply.
transfer in excess of 12
transfers per contract year" in
"Fee table" and "Transfer
charge" in "Charges and expenses"
----------------------------------------------------------------------------------------------------------------------------------
</R>
V-1
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
<R>
----------------------------------------------------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT See "GMIB "no lapse The no-lapse guarantee will not terminate
(CONTINUED) guarantee"" under "Guaranteed if your aggregate withdrawals from your
minimum income benefit" in Protected Benefit account in any contract
"Contract features and benefits" year following the contract year in which
you first fund your Protected Benefit
Account exceed your Annual Withdrawal
Amount unless the excess withdrawal drives
your account value to zero.
See "Disruptive transfer The ability to restrict transfers due to
activity" in "Transferring your market timing can only be determined by the
money among investment options" underlying fund managers. AXA Equitable's
right to restrict transfers due to market
timing does not apply.
See "Transfer Charge" in The charge for excessive transfers does not
"Charges and Expenses" apply.
The ability to reserve the right to impose
a limit on the number of free transfers
does not apply.
See "Special service charges" in The charge for third-party transfers or
"Charges and Expenses" exchanges does not apply.
The maximum charge for check preparation is
$9 per occurrence.
See "Misstatement of age" in We will not deduct interest for any
"More information" overpayments made by us due to a
misstatement of age or sex. Any
overpayments will be deducted from future
payments.
See "Transfers of ownership, Benefits terminate upon any change of owner
collateral assignments, loans who is the measuring life, unless the
and borrowing" in "More change of ownership is due to a divorce
information" where the spouse is awarded 100% of the
account value and chooses to continue the
contract in his or her name and meets the
age requirements of the applicable benefit
on the date the change in ownership occurs.
Benefits do not terminate upon assignment.
Your contract cannot be assigned to an
institutional investor or settlement
company, either directly or indirectly, nor
may the ownership be changed to an
institutional investor or settlement
company.
----------------------------------------------------------------------------------------------------------------------------------
DELAWARE See "Your right to cancel within If you reside in the state of Delaware, at
a certain number of days" in the time the contract was issued, you may
"Contract features and benefits" return your Retirement Cornerstone(R)
Series E replacement contract within 20
days from the date you received it and
receive a full refund of your contribution.
See "Greater of death benefit" If the Guaranteed minimum income benefit is
under "Guaranteed benefit elected or if the Guaranteed minimum income
charges" in "Charges and benefit is elected with the Return of
expenses" Principal death benefit, Highest
Anniversary Value death benefit, or
"Greater of" death benefit, the maximum
charge for each benefit is 1.65%. If the
RMD Wealth Guard death benefit is elected
the maximum charge is 1.40%.
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA See "How you can purchase and In the second paragraph of this section,
contribute to your contract" in item (ii) regarding the $2,500,000
"Contract features and benefits" limitation on contributions is deleted. The
remainder of this section is unchanged.
See "How you can purchase and We may not discontinue the acceptance of
contribute to your contract" in contributions.
"Contract features and benefits"
See "When to expect payments" in For any payment we defer for more than 30
"Accessing your money" days, we will pay interest to that payment
based on an annual interest rate that is
equal to, or greater than, the Moody's
Corporate Bond Yield Average Monthly
Corporate Rate.
See "Selecting an annuity payout The following sentence replaces the first
option" under "Your annuity sentence of the second paragraph in this
payout options" in "Accessing section:
your money"
See "Annuity maturity date" Requests to start receiving annuity
under "Your annuity payout payments before the maturity date must be
options" in "Accessing your made in writing at least 30 days prior to
money" the date annuity payments are to begin.
See "Special service charges" in The charge for third-party transfer or
"Charges and expenses" exchange applies to any transfer or
exchange of your contract, even if it is to
another contract issued by AXA Equitable.
We will not impose a charge for third-party
transfers or exchanges if the contract
owner is age 65 or older at issue.
----------------------------------------------------------------------------------------------------------------------------------
</R>
V-2
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
<R>
----------------------------------------------------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
----------------------------------------------------------------------------------------------------------------------------------
FLORIDA You can choose the date annuity payments
(CONTINUED) begin but it may not be earlier than twelve
months from the Retirement Cornerstone(R)
Series E contract date.
See "Your right to cancel within If you reside in the state of Florida, you
a certain number of days" in may cancel your variable annuity contract
"Contract features and benefits" and return it to us within 21 days from the
date that you receive it. You will receive
an unconditional refund equal to the
greater of the cash surrender value
provided in the annuity contract, plus any
fees or charges deducted from the
contributions or imposed under the
contract, or a refund of all contributions
paid.
See "Transferring your account We may not require a minimum time period
value" in "Transferring your between transfers or establish a daily
money among investment options" maximum transfer limit.
See "Check preparation charge" The maximum charge for check preparation is
under "Special service charges" $25.
in "Charges and expenses"
See "Misstatement of age" in After the second contract date anniversary,
"More information" Guaranteed benefits may not be terminated
for misstatement of age.
See "Transfers of ownership, Your Guaranteed benefits will terminate
collateral assignments, loans with all transfers of ownership, even with
and borrowing" in "More a change of owner from a trust to an
information" individual, unless the change of ownership
is due to a divorce where the spouse is
awarded 100% of the Total account value,
chooses to continue the contract in his or
her name and meets the age requirements of
the applicable rider on the date the change
in ownership occurs.
----------------------------------------------------------------------------------------------------------------------------------
IOWA See "Your right to cancel within If you reside in the state of Iowa, you may
a certain number of days" in cancel your variable annuity contract and
"Contract features and benefits" return it to us within 15 days from the
date you received it. Your refund will
equal your account value under the contract
on the day we receive notification to
cancel the contract.
----------------------------------------------------------------------------------------------------------------------------------
NEW YORK See "Greater of" death benefit The "Greater of" death benefit and the RMD
and RMD Wealth Guard death Wealth Guard death benefit are not
benefit in "Definitions of key available. The only Guaranteed minimum
terms", in "Guaranteed minimum death benefits that are available are the
death benefits" and throughout Return of Principal death benefit and the
this Prospectus. Highest Anniversary Value death benefit.
Both of these death benefits are available
in combination with the Guaranteed minimum
income benefit. They are also available
without the Guaranteed minimum income
benefit.
See "GMIB Benefit base" under For the GMIB, there are caps on the GMIB
"Guaranteed minimum income benefit base, which are based on a
benefit" in "Contract features percentage of total contributions and
and benefits" transfers to the Protected Benefit account:
</R>
Initial Cap Amount
Funding Age ----------
-----------
20-49 350% on GMIB benefit base
50+ No Cap on GMIB benefit base
<R>
The cap is determined by the age of the
owner at the time of first funding of the
Protected Benefit account. If the
Protected Benefit account is funded at age
50 or greater there is no cap. If the
Protected Benefit account is funded at
ages 20 to 49, the cap percentage is set
to 350% and does not change for the life
of the contract, unless there is a GMIB
benefit base reset at age 50 or greater.
If there is a GMIB benefit base reset at
age 50 or greater, there is no cap,
regardless of the age of the owner at
first funding. If there is a GMIB benefit
base reset prior to age 50, the GMIB
benefit base will be capped at 350%,
multiplied by the Protected Benefit
account value at time of the GMIB benefit
base reset, plus 350% of all contributions
and transfers made to the Protected
Benefit account after the reset. Neither a
GMIB benefit base reset nor withdrawals
from your Protected Benefit account will
lower the cap amount.
See "Withdrawals treated as We do not have the right to terminate the
surrenders" in "Accessing contract if no contributions are made
your money" during the last three contract years and
the cash value is less than $500.
See "Your annuity payout Your choice of annuity payout options
options" in "Accessing your includes a straight life fixed income
money" annuity.
------------------------------------------------------------------------------------------------------------------
</R>
V-3
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
<R>
------------------------------------------------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
------------------------------------------------------------------------------------------------------------------------------
NEW YORK See "Charges and expenses" Deductions for charges from the guaranteed
(CONTINUED) interest option and the Special DCA
account are not permitted.
The charge for third-party transfer or
exchange does not apply.
The check preparation charge does not
apply.
See "Transfers of ownership, Collateral assignments are not limited to
collateral assignments, loans the period prior to the first contract
and borrowing" in "More date anniversary. You may assign all or a
information" portion of your NQ contract at any time,
pursuant to the terms described in this
Prospectus.
------------------------------------------------------------------------------------------------------------------------------
NORTH DAKOTA See "Your right to cancel If you reside in the state of North Dakota
within a certain number of at the time the contract is issued, you
days" in "Contract features may return your Retirement Cornerstone(R)
and benefits" Series E contract within 20 days from the
date that you receive it and receive a
full refund of your contributions.
See "Your beneficiary and Amounts allocated to the Guaranteed
payment of benefit" in interest option will continue to earn
"Payment of death benefit" interest until the applicable death
benefit is paid. This means that your
death benefit (other than the applicable
guaranteed minimum death benefit) will be
increased by the amount of interest
credited to any assets in the Guaranteed
interest option up until the date on which
we pay the death benefit.
------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA and Roth IRA Available for direct rollovers from U.S.
source 401(a) plans and direct transfers
from the same type of U.S. source IRAs.
QP (Defined Benefit) contracts Not Available
See "Purchase considerations We do not offer contracts to charitable
for a charitable remainder remainder trusts in Puerto Rico.
trust" under "Owner and
annuitant requirements" in
"Contract features and
benefits"
See "How you can make Specific requirements for purchasing QP
contributions" in "Contract contracts in Puerto Rico are outlined
features and benefits" below in "Purchase considerations for QP
(Defined Contribution) contracts in Puerto
Rico".
See "Guaranteed minimum Restrictions for the GMIB on a Puerto Rico
income benefit" in "Contract QPDC contract are described below, under
features and benefits" "Purchase considerations for QP (Defined
Contribution) contracts in Puerto Rico",
and in your contract.
See "Transfers of ownership, Transfers of ownership of QP contracts are
collateral assignments, loans governed by Puerto Rico law. Please
and borrowing" in "More consult your tax, legal or plan advisor if
information" you intend to transfer ownership of
your contract.
"Purchase considerations for PURCHASE CONSIDERATIONS FOR QP (DEFINED
QP (Defined Contribution) CONTRIBUTION) CONTRACTS IN PUERTO RICO:
contracts in Puerto Rico" -- Trustees who are considering the purchase
this section replaces of a Retirement Cornerstone(R) Series E QP
"Appendix II: Purchase contract in Puerto Rico should discuss
considerations for QP with their tax, legal and plan advisors
contracts" in this Prospectus. whether this is an appropriate investment
vehicle for the employer's plan. Trustees
should consider whether the plan
provisions permit the investment of plan
assets in the QP contract, the Guaranteed
minimum income benefit, and the payment of
death benefits in accordance with the
requirements of Puerto Rico income tax
rules. The QP contract and this Prospectus
should be reviewed in full, and the
following factors, among others, should be
noted.
LIMITS ON CONTRACT OWNERSHIP
. The QP contract is offered only as a
funding vehicle to qualified plan
trusts of single participant defined
contribution plans that are
tax-qualified under Puerto Rico law,
not United States law. The contract is
not available to US qualified plans or
to defined benefit plans qualifying
under Puerto Rico law.
. The QP contract owner is the qualified
plan trust. The annuitant under the
contract is the self-employed Puerto
Rico resident, who is the sole plan
participant.
------------------------------------------------------------------------------------------------------------------------------
</R>
V-4
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
<R>
--------------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
--------------------------------------------------------------------------------------------
PUERTO RICO . This product should not be purchased
(CONTINUED) if the self-employed individual
anticipates having additional
employees become eligible for the
plan. We will not allow additional
contracts to be issued for
participants other than the original
business owner.
. If the business that sponsors the plan
adds another employee who becomes
eligible for the plan, no further
contributions may be made to the
contract. If the employer moves the
funds to another funding vehicle that
can accommodate more than one
employee, this move could result in
the loss of guaranteed benefits in the
contract.
LIMITS
ON
CONTRIBUTIONS:
. All contributions must be direct
transfers from other investments
within an existing qualified plan
trust.
. Employer payroll contributions are not
accepted.
. Only one additional transfer
contribution may be made per contract
year.
. Checks written on accounts held in the
name of the employer instead of the
plan or the trustee will not be
accepted.
. As mentioned above, if a new employee
becomes eligible for the plan, the
trustee will not be permitted to make
any further contributions to the
contract established for the original
business owner.
LIMITS
ON
PAYMENTS:
. Loans are not available under the
contract.
. All payments are made to the plan
trust as owner, even though the plan
participant/annuitant is the ultimate
recipient of the benefit payment.
. AXA Equitable does no tax reporting or
withholding of any kind. The plan
administrator or trustee will be
solely responsible for performing or
providing for all such services.
. AXA Equitable does not offer contracts
that qualify as IRAs under Puerto Rico
law. The plan trust will exercise the
GMIB and must continue to hold the
supplementary contract for the
duration of the GMIB payments. The
contract cannot be converted to an IRA.
PLAN
TERMINATION:
. If the plan participant terminates the
business, and as a result wishes to
terminate the plan, the trust would
have to be kept in existence to
receive payments. This could create
expenses for the plan.
. If the plan participant terminates the
plan and the trust is dissolved, or if
the plan trustee (which may or may not
be the same as the plan participant)
is unwilling to accept payment to the
plan trust for any reason, AXA
Equitable would have to change the
contract from a Puerto Rico QP to NQ
in order to make payments to the
individual as the new owner. Depending
on when this occurs, it could be a
taxable distribution from the plan,
with a potential tax of the entire
account value of the contract. Puerto
Rico income tax withholding and
reporting by the plan trustee could
apply to the distribution transaction.
. If the plan trust is receiving GMIB
payments and the trust is subsequently
terminated, transforming the contract
into an individually owned NQ
contract, the trustee would be
responsible for the applicable Puerto
Rico income tax withholding and
reporting on the present value of the
remaining annuity payment stream.
. AXA Equitable is a U.S. insurance
company, therefore distributions under
the NQ contract could be subject to
United States taxation and withholding
on a "taxable amount not determined"
basis.
We require owners or beneficiaries of
annuity contracts in Puerto Rico which are
not individuals to document their status
to avoid 30% FATCA withholding from
U.S.-source income.
--------------------------------------------------------------------------------------------
</R>
V-5
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
<R>
---------------------------------------------------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
---------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND See "Your right to cancel If you reside in the state of Rhode
within a certain number of Island, you may cancel your variable
days" in "Contract features annuity contract and return it to us
and benefits" within 15 days from the date you received
it. Your refund will equal your account
value under the contract on the day we
receive notification to cancel the
contract.
---------------------------------------------------------------------------------------------------------------------------------
TEXAS See "Your right to cancel If you reside in the state of Texas, you
within a certain number of may cancel your variable annuity contract
days" in "Contract features and return it to us within 15 days from
and benefits" the date you received it. Your refund will
equal your account value under the
contract on the day we receive
notification to cancel the contract.
---------------------------------------------------------------------------------------------------------------------------------
WASHINGTON D.C. See "Your right to cancel If you reside in the district of
within a certain number of Washington, D.C., at the time the contract
days" in "Contract features was issued, you may return your Retirement
and benefits" Cornerstone (R) Series E replacement
contract within 10 days from the date you
received it and receive a refund of your
Total account value under the contract on
the day we receive notification to cancel
the contract.
---------------------------------------------------------------------------------------------------------------------------------
</R>
V-6
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
Appendix VI: Examples of Automatic payment plans
--------------------------------------------------------------------------------
The following examples illustrate the amount of the automatic withdrawals that
would be taken under the various payment plans described in "Accessing your
money" under "Automatic payment plans." The examples assume a $100,000
allocation to the Protected Benefit account variable investment options with
assumed investment performance of 0%. (The last example assumes an allocation
to the Investment account.) The examples show how the different automatic
payment plans can be used without reducing your GMIB benefit base. The examples
are based on the applicable Roll-up rate shown below and assumes that the GMIB
benefit base does not reset. Also, the examples reflect the effect on both the
GMIB benefit base and the Roll-up to age 85 benefit base (used in the
calculation of the "Greater of" death benefit).
MAXIMUM PAYMENT PLAN
FULL ANNUAL WITHDRAWAL AMOUNT PAYMENT
Under this payment plan, you will receive the Annual withdrawal amounts as
scheduled payments. In this example, the "Withdrawal" column reflects the
Annual withdrawal amounts for the years shown. Amounts in the "Withdrawal"
column are calculated by multiplying the "Beginning of the year GMIB benefit
base" by the "Annual Roll-up rate" in effect for each year.
--------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
--------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
--------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
--------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
--------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
--------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
--------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981 4.7%
--------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618 5.2%
--------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872 5.4%
--------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $7,636 6.0%
--------------------------------------------------------------------------------
10 7.3%/(b)/ $127,260 $9,290 7.3%
--------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
CUSTOMIZED PAYMENT PLANS
GUARANTEED MINIMUM PERCENTAGE
Under this payment plan, you will receive as scheduled payments a withdrawal
amount that is based on withdrawal percentage that is fixed at the lowest
guaranteed Deferral Roll-up rate or Annual Roll-up rate of 4.0%. In this
example, amounts in the "Withdrawal" column are calculated by multiplying the
"Beginning of the year GMIB benefit base" by 4.0%.
--------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
--------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
--------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
--------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
--------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
--------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
--------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,090 4.0%
--------------------------------------------------------------------------------
7 5.2%/(b)/ $128,151 $5,126 4.0%
--------------------------------------------------------------------------------
8 5.4%/(b)/ $129,688 $5,188 4.0%
--------------------------------------------------------------------------------
VI-1
APPENDIX VI: EXAMPLES OF AUTOMATIC PAYMENT PLANS
--------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
--------------------------------------------------------------------------------
9 6.0%/(b)/ $131,504 $5,260 4.0%
--------------------------------------------------------------------------------
10 7.3%/(b)/ $134,134 $5,365 4.0%
--------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
FIXED PERCENTAGE BELOW THE ANNUAL ROLL-UP RATE (1.0% BELOW)
Under this payment plan, you will receive as scheduled payments a withdrawal
amount that is based on a fixed percentage that is less than the applicable
Annual Roll-up rate in effect for each contract year. In this example, the
contract owner has requested that we pay scheduled payments that are 1.00%
below the Annual Roll-up rate in effect for each year. Amounts in the
"Withdrawal" column are calculated by multiplying the "Beginning of the year
GMIB benefit base" by the "Percentage of GMIB benefit base withdrawn."
-----------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
-----------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
-----------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
-----------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
-----------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
-----------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
-----------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,090/(c)/ 4.0%/(c)/
-----------------------------------------------------------------------------------
7 5.2%/(b)/ $128,151 $5,382 4.2%
-----------------------------------------------------------------------------------
8 5.4%/(b)/ $129,432 $5,695 4.4%
-----------------------------------------------------------------------------------
9 6.0%/(b)/ $130,726 $6,536 5.0%
-----------------------------------------------------------------------------------
10 7.3%/(b)/ $132,034 $8,318 6.3%
-----------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
(c)In contract year 6, the fixed percentage would have resulted in a payment
less than 4.0%. In this case, the withdrawal percentage is 4.0%.
FIXED PERCENTAGE OF 5.5%
Under this payment plan, you will receive a withdrawal amount based on a fixed
percentage that cannot exceed the Annual Roll-up rate in effect for each year.
In this example, the contract owner has elected to receive withdrawals at a
fixed percentage of 5.5%. Amounts in the "Withdrawal" column are calculated by
multiplying the "Beginning of the year GMIB benefit base" by the "Percentage of
GMIB benefit base withdrawn."
-----------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
-----------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
-----------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
-----------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
-----------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
-----------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
-----------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981/(c)/ 4.7%/(c)/
-----------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618/(c)/ 5.5%/(c)/
-----------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872/(c)/ 5.4%/(c)/
-----------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $6,999/(c)/ 5.2%/(c)/
-----------------------------------------------------------------------------------
10 7.3%/(b)/ $127,896 $7,034/(d)/ 5.5%/(d)/
-----------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
(c)In contract years 6, 7 and 8 the contract owner received withdrawal amounts
based on the Annual Roll-up rate for each contract year. In each year, the
Annual Roll-up rate was less than the withdrawal percentage selected.
(d)In contract years 9 and 10, the contract owner received withdrawal amounts
of 5.5% even though the Annual Roll-up rates in effect in those years were
greater.
VI-2
APPENDIX VI: EXAMPLES OF AUTOMATIC PAYMENT PLANS
FIXED DOLLAR OF $7,000
Under this payment plan, you will receive a withdrawal amount that is based on
a fixed dollar amount. The fixed dollar amount may not exceed the Annual
withdrawal amount in any contract year. In this example, the contract owner has
elected to receive withdrawals of $7,000. Amounts in the "Withdrawal" column
are calculated by multiplying the "Beginning of the year GMIB benefit base" by
the "Percentage of GMIB benefit base withdrawn."
-----------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
-----------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
-----------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
-----------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
-----------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
-----------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
-----------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981/(c)/ 4.7%/(c)/
-----------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618/(c)/ 5.2%/(c)/
-----------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872/(c)/ 5.4%/(c)/
-----------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $7,000 5.5%
-----------------------------------------------------------------------------------
10 7.3%/(b)/ $127,895 $7,000 5.5%
-----------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
(c)In contract years 6 through 8, the contract owner received the Annual
withdrawal amount for those years.
FIXED PERCENTAGE OF 5.50% FROM BOTH YOUR PROTECTED BENEFIT ACCOUNT AND YOUR
INVESTMENT ACCOUNT
Under this payment plan, you can receive a fixed dollar amount or an amount
based on a fixed percentage as scheduled payments that may be greater than your
Annual withdrawal amount. Your Annual withdrawal amount will be withdrawn
first. Any requested amount in excess of the Annual withdrawal amount will be
withdrawn from your Investment account. In this example, the contract owner has
elected to receive withdrawals at a fixed percentage of 5.50%.
--------------------------------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE WITHDRAWAL FROM ADDITIONAL WITHDRAWAL
ANNUAL BEGINNING OF YEAR GMIB PROTECTED BENEFIT FROM INVESTMENT PERCENTAGE OF GMIB
YEAR ROLL-UP RATE BENEFIT BASE ACCOUNT VALUE ACCOUNT BENEFIT BASE WITHDRAWN
--------------------------------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981 $1,018 5.5%
--------------------------------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618 $ 382 5.5%
--------------------------------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872 $ 127 5.5%
--------------------------------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $6,999 $ 0 5.5%
--------------------------------------------------------------------------------------------------------
10 7.3%/(b)/ $127,896 $7,034 $ 0 5.5%
--------------------------------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
VI-3
APPENDIX VI: EXAMPLES OF AUTOMATIC PAYMENT PLANS
Appendix VII: Examples of how withdrawals affect your Guaranteed benefit bases
--------------------------------------------------------------------------------
EXAMPLES FOR GMIB
EXAMPLE #1
As described below, this example assumes that Protected Benefit account value
is LESS THAN the GMIB benefit base at the time of the first withdrawal.
Assuming $100,000 is invested in the Protected Benefit variable investment
options, with no additional contributions, and no transfers, the GMIB benefit
base and the Guaranteed minimum death benefit base for an owner age 60 would be
calculated as follows:
--------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT
--------------------------------
HIGHEST
PROTECTED RETURN OF ANNIVERSARY ROLL-UP
END OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE TO AGE 85 "GREATER OF"
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
--------------------------------------------------------------------------------------------------------------------
0 $100,000 $100,000/(3)/ $100,000/(1)/ $100,000/(2)/ $100,000/(3)/ $100,000
--------------------------------------------------------------------------------------------------------------------
1 3.0 % $103,000 $ 0 4.0% $104,000/(3)/ $100,000/(1)/ $103,000/(2)/ $104,000/(3)/ $104,000
--------------------------------------------------------------------------------------------------------------------
2 4.0 % $107,120 $ 0 4.0% $108,160/(3)/ $100,000/(1)/ $107,120/(2)/ $108,160/(3)/ $108,160
--------------------------------------------------------------------------------------------------------------------
3 6.0 % $113,547 $ 0 4.0% $113,547/(3)/ $100,000/(1)/ $113,547/(2)/ $113,547/(3)/ $113,547
--------------------------------------------------------------------------------------------------------------------
4 6.0 % $120,360 $ 0 4.0% $120,360/(3)/ $100,000/(1)/ $120,360/(2)/ $120,360/(3)/ $120,360
--------------------------------------------------------------------------------------------------------------------
5 7.0 % $128,785 $ 0 4.0% $128,785/(3)/ $100,000/(1)/ $128,785/(2)/ $128,785/(3)/ $128,785
--------------------------------------------------------------------------------------------------------------------
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the Guaranteed benefit bases are as follows:
(1)The RETURN OF PRINCIPAL BENEFIT BASE is equal to the initial contribution to
the Protected Benefit variable investment options, or $100,000.
(2)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is equal to the greater of the
Protected Benefit account value and the Highest Anniversary Value benefit
base as of the last contract date anniversary.
For example:
. At the end of contract year 3, the Highest Anniversary Value benefit base
is $113,547. This is because the Protected Benefit account value
($113,547) is greater than the Highest Anniversary Value benefit base as
of the last contract date anniversary.
(3)The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GMIB BENEFIT BASE (the "Roll-up
benefit bases") are equal to the Roll-up benefit bases as of the last
contract date anniversary plus the Deferral Roll-up amount (the Roll-up
benefit bases as of the last contract date anniversary multiplied by the
assumed Deferral Roll-up rate). Unless you decline or elect a different
annual reset option, you will be enrolled in the automatic annual reset
program and your Roll-up benefit bases will automatically "reset" to equal
the Protected Benefit account, if higher than the prior Roll-up benefit
bases, every contract year from your contract issue date, up to the contract
anniversary following your 85th birthday (for the Roll-up to age 85 benefit
base) or your 95th birthday (for the GMIB benefit base). Beginning in the
contract year that follows the contract year in which you fund your
Protected Benefit account, if your Lifetime GMIB payments have not begun,
you can withdraw up to your Annual withdrawal amount without reducing your
Roll-up benefit bases. However, those same withdrawals will reduce the
Annual Roll-up amount that would otherwise be applied to the Roll-up benefit
bases at the end of the contract year. Remember that the Roll-up amount
applicable under your contract does not become part of your Roll-up benefit
bases until the end of the contract year except in the year in which you
die. In the event of your death, a pro-rata portion of the Roll-up amount
will be added to the Roll-up to age 85 benefit base.
For example:
. At the end of contract year 2, the Roll-up benefit bases are equal to
$108,160. This is calculated by taking the Roll-up benefit bases as of
the last contract date anniversary $104,000, and multiplying it by
Roll-up rate of 4%. ($104,000 x 1.04 = $108,160).
VII-1
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
For both Alternatives below, the Annual withdrawal amount in contract year 6
equals $5,151 [4% (Roll-up rate) x $128,785 (the GMIB benefit base)].
---------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT
--------------------------------
HIGHEST
PROTECTED RETURN OF ANNIVERSARY ROLL-UP
END OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE TO AGE 85 "GREATER OF"
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
---------------------------------------------------------------------------------------------------------------------
Alternative #1: Owner withdraws the
Annual withdrawal amount, which equals $5,151
Year 6 (5.0)% $122,346 $5,151 4.0% $128,785/(6)/ $95,790/(4)/ $123,634/(5)/ $128,785/(6)/ $128,785
---------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,151/(7)/
Alternative #2: Owner withdraws $7,000, which is in excess of the Annual withdrawal amount
Year 6 (5.0)% $122,346 $7,000 4.0% $126,839/(10)/ $94,279/(8)/ $121,766/(9)/ $126,839/(10)/ $126,839
---------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,074/(11)/
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS ANNUAL WITHDRAWAL AMOUNT)
The pro-rata calculation for the Return of Principal benefit base is as
follows: Since the withdrawal amount of $5,151 equals 4.21% of the Protected
Benefit account value ($5,151 divided by $122,346 = 4.21%), each benefit base
would be reduced by 4.21%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(4)The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (Return of Principal benefit base as of the last contract date
anniversary)-$4,210 (4.21% x $100,000) = $95,790.
(5)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced dollar-for-dollar, as
follows: $128,785 (Highest Anniversary Value benefit base as of the last
contract date anniversary) - $5,151 = $123,634.
(6)The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GMIB BENEFIT BASE are equal to
$128,785, (the Roll-up benefit bases as of the last contract date
anniversary). Since the full Annual withdrawal amount was taken, the Roll-up
benefit bases neither decrease nor increase;
(7)As a result of the withdrawal in contract year 6, the Annual withdrawal
amount in contract year 7 is $5,151 [4% (Roll-up rate) x $128,785 (the
Roll-up benefit bases as of the sixth contract anniversary)].
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES AN "EXCESS WITHDRAWAL")
The pro-rata calculation for the reduction in the Return of Principal benefit
base is as follows: Since the withdrawal amount of $7,000 equals 5.721% of the
Protected Benefit account value ($7,000 divided by $122,346 = 5.721%), each
benefit base would be reduced by 5.721%.
The pro-rata calculation for the reduction in the Roll-up benefit bases is as
follows: $7,000 (the amount of the withdrawal) - $5,151 (the Annual withdrawal
amount) = $1,849 (the "Excess withdrawal" amount). Since the amount of the
Excess withdrawal equals 1.511% of the Protected Benefit account value ($1,849
divided by $122,346 = 1.511%), the Roll-up benefit bases would be reduced by
1.511%.
Please note that the Excess withdrawal in this example does not represent a RMD
payment made through our automatic RMD service. For more information on RMD
payments through our automatic RMD service, please see "Lifetime required
minimum distribution withdrawals" in "Accessing your money" earlier in this
Prospectus.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(8)The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (Return of Principal benefit base as of the last contract date
anniversary) - $5,721 (5.721% x $100,000) = $94,279.
(9)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced dollar-for-dollar and
pro-rata, as follows: $128,785 (Highest Anniversary Value benefit base as of
the last contract date anniversary) - $5,151 (Annual Withdrawal Amount) -
$1,868 [($128,785 - $5,151) x 1.511%] = $121,766.
(10)The ROLL-UP TO AGE 85 BENEFIT BASE and the GMIB benefit base are reduced
pro-rata, as follows: $128,785 (the Roll-up benefit bases as of the last
contract date anniversary) - $1,946 (1.511% x $128,785) = $126,839.
(11)As a result of the Excess withdrawal in contract year 6, the Annual
withdrawal amount in contract year 7 is $5,074 [4% (Roll-up rate)
x $126,839 (the Roll-up benefit bases as of the sixth contract
anniversary)].
VII-2
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
EXAMPLE #2
As described below, this example assumes that Protected Benefit account value
is GREATER THAN the GMIB benefit base at the time of the first withdrawal.
Assuming $100,000 is invested in the Protected Benefit variable investment
options, with no additional contributions, and no transfers, the GMIB benefit
base and the Guaranteed minimum death benefit base for an owner age 60 would be
calculated as follows:
--------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT
- --------------------------------
HIGHEST
PROTECTED RETURN OF ANNIVERSARY ROLL-UP
END OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE TO AGE 85 "GREATER OF"
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
--------------------------------------------------------------------------------------------------------------------
0 $100,000 $100,000/(3)/ $100,000/(1)/ $100,000/(2)/ $100,000/(3)/ $100,000
--------------------------------------------------------------------------------------------------------------------
1 3.0% $103,000 $ 0 4.0% $104,000/(3)/ $100,000/(1)/ $103,000/(2)/ $104,000/(3)/ $104,000
--------------------------------------------------------------------------------------------------------------------
2 4.0% $107,120 $ 0 4.0% $108,160/(3)/ $100,000/(1)/ $107,120/(2)/ $108,160/(3)/ $108,160
--------------------------------------------------------------------------------------------------------------------
3 6.0% $113,547 $ 0 4.0% $113,547/(3)/ $100,000/(1)/ $113,547/(2)/ $113,547/(3)/ $113,547
--------------------------------------------------------------------------------------------------------------------
4 6.0% $120,360 $ 0 4.0% $120,360/(3)/ $100,000/(1)/ $120,360/(2)/ $120,360/(3)/ $120,360
--------------------------------------------------------------------------------------------------------------------
5 7.0% $128,785 $ 0 4.0% $128,785/(3)/ $100,000/(1)/ $128,785/(2)/ $128,785/(3)/ $128,785
--------------------------------------------------------------------------------------------------------------------
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the Guaranteed benefit bases are as follows:
(1)The RETURN OF PRINCIPAL BENEFIT BASE is equal to the initial contribution to
the Protected Benefit variable investment options, or $100,000.
(2)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is equal to the greater of the
Protected Benefit account value and the Highest Anniversary Value benefit
base as of the last contract date anniversary.
For example:
. At the end of contract year 3, the Highest Anniversary Value benefit base
is $113,547. This is because the Protected Benefit account value
($113,547) is greater than the Highest Anniversary Value benefit base as
of the last contract date anniversary ($107,120).
(3)The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GMIB BENEFIT BASE (the "Roll-up
benefit bases") are equal to the Roll-up benefit bases as of the last
contract date anniversary plus the Deferral Roll-up amount (the Roll-up
benefit bases as of the last contract date anniversary multiplied by Roll-up
rate). Unless you decline or elect a different annual reset option, you will
be enrolled in the automatic annual reset program and your Roll-up benefit
bases will automatically "reset" to equal the Protected Benefit account, if
higher than the prior Roll-up benefit bases, every contract year from your
contract issue date, up to the contract date anniversary following your 85th
birthday (for the Roll-up to age 85 benefit base) or your 95th birthday (for
the GMIB benefit base). Beginning in the contract year that follows the
contract year in which you fund your Protected Benefit account, if your
Lifetime GMIB payments have not begun, you can withdraw up to your Annual
withdrawal amount without reducing your Roll-up benefit bases. However,
those same withdrawals will reduce the Annual Roll-up amount that would
otherwise be applied to the Roll-up benefit bases at the end of the contract
year. Remember that the Roll-up amount applicable under your contract does
not become part of your Roll-up benefit bases until the end of the contract
year except in the year in which you die. In the event of your death, a
pro-rata portion of the Roll-up amount will be added to the Roll-up to age
85 benefit base.
For example:
. At the end of contract year 2, the Roll-up benefit bases are equal to
$108,160. This is calculated by taking the Roll-up benefit bases as of
the last contract date anniversary $104,000, and multiplying it by
Roll-up rate of 4% ($104,000 x 1.04 = $108,160).
. At the end of contract year 3, the Roll-up benefit bases are equal to
$113,547. This is because the Protected Benefit account value ($113,547)
is greater than the Roll-up benefit bases as the last contract date
anniversary ($108,160) plus Roll-up amount ($4,326).
VII-3
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
For both Alternatives below, the Annual withdrawal amount in contract year 6
equals $5,151 [4% (Roll-up rate) x $128,785 (the GMIB benefit base)].
------------------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM
DEATH BENEFIT
-------------
HIGHEST
END PROTECTED RETURN OF ANNIVERSARY
OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE ROLL-UP TO AGE 85
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT "GREATER OF" BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
------------------------------------------------------------------------------------------------------------------------------
Alternative #1: Owner withdraws the
Annual withdrawal amount, which equals
$5,151
Year 6 5.0% $135,224 $5,151 4.0% $130,073/(6)/ $96,190/(4)/ $130,073/(5)/ $130,073/(6)/ $130,073
------------------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,203/(7)/
Alternative #2: Owner withdraws $7,000, which
is in excess of the Annual withdrawal amount
Year
6 5.0 % $135,224 $7,000 4.0% $128,224/(10)/ $94,823/(8)/ $128,224/(9)/ $128,224/(10)/ $128,224
------------------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,129/(11)/
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS ANNUAL WITHDRAWAL AMOUNT)
The pro-rata calculation for the Return of Principal benefit base is as
follows: Since the withdrawal amount of $5,151 equals 3.810% of the Protected
Benefit account value ($5,151 divided by $135,224 = 3.810%), each benefit base
would be reduced by 3.810%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(4)The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (benefit base as of the last contract date anniversary)- $3,810
(3.810% x $100,000) = $96,190.
(5)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced dollar-for-dollar as
follows: $128,785 (Highest Anniversary Value benefit base as of the last
contract date anniversary) - $5,151 = $123,634. The Highest Anniversary
Value benefit base is reset to the Protected Benefit account value after
withdrawal ($130,073).
(6)The ROLL-UP TO AGE 85 BENEFIT BASE AND GMIB BENEFIT BASE are reset to the
Protected Benefit Account Value after withdrawal $130,073.
(7)As a result of the withdrawal in contract year 6, the Annual withdrawal
amount in contract year 7 is $5,203 [4% (Roll-up rate) x $130,073 (the
Roll-up benefit bases as of the sixth contract anniversary)].
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES AN "EXCESS WITHDRAWAL")
The pro-rata calculation for the reduction in the Return of Principal benefit
base is as follows: Since the withdrawal amount of $7,000 equals 5.177% of the
Protected Benefit account value ($7,000 divided by $135,224 = 5.177%), each
benefit base would be reduced by 5.177%.
The pro-rata calculation for the reduction in the Highest Anniversary Value
benefit base and the Roll-up benefit bases is as follows: $7,000 (the amount of
the withdrawal) - $5,151 (the Annual withdrawal amount) = $1,849 (the "Excess
withdrawal" amount). Since the amount of the Excess withdrawal equals 1.367% of
the Protected Benefit account value ($1,849 divided by $135,224 = 1.367%), the
Highest Anniversary Value benefit base and the Roll-up benefit bases would be
reduced by 1.367%.
Please note that the Excess withdrawal in this example does not represent a RMD
payment made through our automatic RMD service. For more information on RMD
payments through our automatic RMD service, please see "Lifetime required
minimum distribution withdrawals" in "Accessing your money" earlier in this
Prospectus.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(8)The Return of Principal benefit base is reduced pro-rata, as follows:
$100,000 (Return of Principal benefit base as of the last contract date
anniversary) - $5,177 (5.177% x $100,000) = $94,823.
(9)The Highest Anniversary Value benefit base is reduced dollar-fordollar and
pro-rata, as follows: $128,785 (Highest Anniversary Value benefit base as of
the last contract date anniversary) - $5,151 (Annual Withdrawal Amount) -
$1,690 [($128,785 - $5,151) x 1.367%] = $121,944. The Highest Anniversary
Value benefit base is reset to the Protected Benefit account value after
withdrawals ($128,224).
(10)The Roll-up to age 85 benefit base and the GMIB benefit base are reduced
pro-rata, as follows: $128,785 (the Roll-up benefit bases as of the last
contract date anniversary) - $1,760 (1.367% x $128,785) = $127,025. The
Roll-up to age 85 benefit base and GMIB benefit base are reset to the
Protected Benefit Account Value after withdrawal $128,224.
(11)As a result of the Excess withdrawal in contract year 6, the Annual
withdrawal amount in contract year 7 is $5,129 [4% (Roll-up rate)
x $128,224 (the Roll-up benefit bases as of the sixth contract
anniversary)].
VII-4
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
EXAMPLE FOR RMD WEALTH GUARD DEATH BENEFIT
EXAMPLE #3
Assuming $100,000 is invested in the Protected Benefit variable investment
options, with no additional contributions, and no transfers, the RMD Wealth
Guard death benefit base for an owner age 65 would be calculated as follows:
---------------------------------------------------------------------------------------------
PROTECTED PROTECTED
ASSUMED BENEFIT BENEFIT RMD WEALTH
END NET ACCOUNT VALUE ACCOUNT VALUE GUARD DEATH
OF CONTRACT YEAR AGE RETURN BEFORE WITHDRAWAL WITHDRAWAL AFTER WITHDRAWAL BENEFIT BASE
---------------------------------------------------------------------------------------------
0 65 $100,000 $100,000 $100,000/(1)/
---------------------------------------------------------------------------------------------
1 66 3.0% $103,000 $ 0 $103,000 $103,000/(1)/
---------------------------------------------------------------------------------------------
2 67 4.0% $107,120 $ 0 $107,120 $107,120/(1)/
---------------------------------------------------------------------------------------------
3 68 (1.0)% $106,049 $5,000 $101,049 $102,069/(1)(2)/
---------------------------------------------------------------------------------------------
4 69 3.0% $104,080 $ 0 $104,080 $104,080/(1)/
---------------------------------------------------------------------------------------------
5 70 4.0% $108,243 $ 0 $108,243 $108,243/(1)/
---------------------------------------------------------------------------------------------
Alternative #1: Contract Year 6 (Owner withdraws RMD withdrawal amount)
6 71 5.0% $113,656 $4,293 $109,363 $109,363/(3)/
---------------------------------------------------------------------------------------------
7 72 3.0% $112,644 $ 0 $112,644 $109,363/(4)/
---------------------------------------------------------------------------------------------
Alternative #2: Contract Year 6 (Owner takes a withdrawal in excess of RMD withdrawal
limit)
6 71 5.0% $113,656 $6,000 $107,656 $107,656/(5)/
---------------------------------------------------------------------------------------------
7 72 3.0% $110,885 $ 0 $110,885 $107,656/(6)/
---------------------------------------------------------------------------------------------
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the RMD Wealth Guard death benefit base is as
follows:
(1)The RMD Wealth Guard death benefit base is equal to the greater of the
Protected Benefit account value and the RMD Wealth Guard death benefit base
as of the last contract date anniversary.
For example:
. At the end of contract year 2, the RMD Wealth Guard death benefit base is
$107,120. This is because the Protected Benefit account value ($107,120)
is greater than the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($103,000).
(2)The RMD Wealth Guard death benefit base would be reduced by a withdrawal on
a pro rata basis because the contract owner has not yet reached the calendar
year in which he or she will turn age 701/2 and is not yet eligible for
RMDs; accordingly, all withdrawals made prior to the calendar year in which
the contract owner turns age 701/2 are treated as Excess RMD withdrawals and
reduce the benefit base on a pro rata basis.
For example:
. At the end of contract year 3, the RMD Wealth Guard death benefit base is
$102,069. After a withdrawal of $5,000, the Protected Benefit account
value is $101,049 (= $107,120 x (1 - 1.0%) - $5,000). Since the
withdrawal amount of $5,000 equals 4.715% of the Protected Benefit
account value before the withdrawal ($5,000 divided by $106,049 =
4.715%), the RMD Wealth Guard death benefit base would be reduced by
$5,051 (4.715% of $107,120) to be $102,069 (= $107,120 - $5,051). The RMD
Wealth Guard death benefit base is greater than the Protected Benefit
account value. As you can see, when the benefit base is greater than the
account value, a pro rata deduction means the benefit base is reduced by
more than the amount of the withdrawals.
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS RMD WITHDRAWAL AMOUNT)
(3)The RMD Wealth Guard death benefit base would not be reduced by a RMD
withdrawal because it is not an Excess RMD withdrawal.
For example:
. At the end of contract year 6, the RMD Wealth Guard death benefit base is
$109,363. This is because the Protected Benefit account value ($109,363)
is greater than the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($108,243). In addition, since the withdrawal
of the $4,293 was not an Excess RMD withdrawal, it did not reduce the
benefit base.
(4)After the contract anniversary date following the first RMD withdrawal, the
RMD Wealth Guard death benefit base stops resetting.
For example:
. At the end of contract year 7, the RMD Wealth Guard death benefit base is
$109,363. This is the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($109,363).
VII-5
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES A WITHDRAWAL IN EXCESS OF RMD
WITHDRAWAL LIMIT)
(5)The RMD Wealth Guard death benefit base would be reduced by the portion of
the withdrawal amount in excess of RMD withdrawal limit on a pro rata basis.
For example:
. At the end of contract year 6, the RMD Wealth Guard death benefit base is
$107,656. The withdrawal amount of $6,000 exceeds the RMD withdrawal
limit ($4,293) by $1,707. The portion of the withdrawal amount in excess
of RMD withdrawal limit ($1,707) equals 1.502% of the Protected Benefit
account value ($1,707 divided by $113,656 = 1.502%) and RMD Wealth Guard
death benefit base would be reduced by 1.502% to be $106,618 (= $108,243
- $1,625). The RMD Wealth Guard death benefit base resets to the
Protected Benefit account value ($107,656).
(6)After a withdrawal is taken in the calendar year in which the age turns
701/2 or later year, the RMD Wealth Guard death benefit base stops resetting.
For example:
. At the end of contract year 7, the RMD Wealth Guard death benefit base is
$107,656. This is the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($107,656).
VII-6
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
Appendix VIII: Formula for asset transfer program for Guaranteed minimum income
benefit
--------------------------------------------------------------------------------
As explained in the ''Guaranteed minimum income benefit (''GMIB'')'' section in
this Prospectus, if you have the GMIB the portion of your contract invested in
the Protected Benefit account will be subject to predetermined mathematical
formulas that require transfers between the Protected Benefit account variable
investment options which you have selected and the AXA Ultra Conservative
Strategy investment option. This Appendix provides additional information
regarding the formulas. The formulas are set when we issue your contract and do
not change while the GMIB is in effect. On each valuation day, the formulas
determine whether a transfer into or out of the AXA Ultra Conservative Strategy
investment option is required. For purposes of these calculations, amounts in
the Special DCA program designated for the Protected Benefit account variable
investment options are excluded from amounts that are transferred into the AXA
Ultra Conservative Strategy investment option.
First, the following ATP formula is used to calculate a contract ratio:
Contract Ratio = 1 - (A / B)
WHERE:
A = Protected Benefit account value on the valuation day.
B = The current value of the GMIB benefit base on the valuation day including
the pro rata portion of the applicable Roll-up amount.
Please see the ''Guaranteed minimum income benefit (''GMIB'')'' section in this
Prospectus for more information on the GMIB benefit base.
The contract ratio is then compared to predetermined ''transfer points'' to
determine what portion of Protected Benefit account value needs to be held in
the AXA Ultra Conservative Strategy investment option. For your GMIB, there is
a minimum and maximum transfer point, which is determined according to the
following table.
--------------------------------------------------------------------------
ATP YEAR ANNIVERSARY MINIMUM TRANSFER POINT MAXIMUM TRANSFER POINT
--------------------------------------------------------------------------
First day of first ATP year 15% 25%
--------------------------------------------------------------------------
1st 18% 28%
--------------------------------------------------------------------------
2nd 21% 31%
--------------------------------------------------------------------------
3rd 24% 34%
--------------------------------------------------------------------------
4th 27% 37%
--------------------------------------------------------------------------
5th 30% 40%
--------------------------------------------------------------------------
6th 33% 43%
--------------------------------------------------------------------------
7th 36% 46%
--------------------------------------------------------------------------
8th 39% 49%
--------------------------------------------------------------------------
9th 42% 52%
--------------------------------------------------------------------------
10th (and later) 45% 55%
--------------------------------------------------------------------------
The minimum and maximum transfer points are interpolated between the beginning
of the ATP year Protected Benefit account value and end of ATP year Protected
Benefit account value during the course of the ATP year. For example, during
the first ATP year, the minimum transfer point moves from 15% on the first day
of the first ATP year to 18% on the first day on the second ATP year. The
maximum transfer point moves similarly during the first ATP year from 25% on
the first day of the first ATP year to 28% on the first day on the second ATP
year. The ranges for the first and second ATP year are shown in the charts
below to illustrate the interpolation of transfer points between the beginning
of an ATP year and the end of an ATP year.
-------------------------------------------------------------------------------
FIRST ATP YEAR RANGE:
-------------------------------------------------------------------------------
MAY 14
MAY 15 FIRST ATP
(DAY 1 OF YEAR
FIRST ATP YEAR) AUG 15 NOV 15 FEB 15 ANNIVERSARY
-------------------------------------------------------------------------------
Minimum Transfer Point 15% 15.75% 16.5% 17.25% 18%
-------------------------------------------------------------------------------
Maximum Transfer Point 25% 25.75% 26.5% 27.25% 28%
-------------------------------------------------------------------------------
VIII-1
APPENDIX VIII: FORMULA FOR ASSET TRANSFER PROGRAM FOR
GUARANTEED MINIMUM INCOME BENEFIT
--------------------------------------------------------------------------------
SECOND ATP YEAR RANGE:
--------------------------------------------------------------------------------
MAY 14
MAY 14 SECOND ATP
(DAY 1 OF YEAR
SECOND ATP YEAR) AUG 15 NOV 15 FEB 15 ANNIVERSARY
--------------------------------------------------------------------------------
Minimum Transfer Point 18% 18.75% 19.5% 20.25% 21%
--------------------------------------------------------------------------------
Maximum Transfer Point 28% 28.75% 29.5% 30.25% 31%
--------------------------------------------------------------------------------
On each valuation day, the portion of your Protected Benefit account value to
be held in the AXA Ultra Conservative Strategy investment option is determined
by comparing the contract ratio to the transfer points. If the contract ratio
is equal to or less than the minimum transfer point, all of the account value
in the AXA Ultra Conservative Strategy investment option, if any, will be
transferred to the Protected Benefit account variable investment options
selected by you. If the contract ratio on the valuation day exceeds the minimum
transfer point but is less than the maximum transfer point, amounts may be
transferred either into or out of the AXA Ultra Conservative Strategy
investment option depending on the account value already in the AXA Ultra
Conservative Strategy investment option and the Special DCA program designated
for the Protected Benefit account variable investment options. If the contract
ratio on the valuation day is equal to or greater than the maximum transfer
point, the total amount of the account value that is invested in the Protected
Benefit account variable investment options selected by you, excluding amounts
invested in the Special DCA program designated for the Protected Benefit
account variable investment options, will be transferred into the AXA Ultra
Conservative Strategy investment option.
A separate formula, called the transfer amount formula, is used to calculate
the amount that must be transferred either into or out of the AXA Ultra
Conservative Strategy investment option. For example, the transfer amount
formula seeks to reallocate account value such that for every 1% by which the
contract ratio exceeds the minimum transfer point on a given valuation day, 10%
of the Protected Benefit account value will be held in the AXA Ultra
Conservative Strategy investment option and the Special DCA program designated
for the Protected Benefit account variable investment options. When the
contract ratio exceeds the minimum transfer point by 10% (i.e., it reaches the
maximum transfer point), amounts will be transferred into the AXA Ultra
Conservative Strategy investment option such that 100% of Protected Benefit
account value will be invested in the AXA Ultra Conservative Strategy
investment option and the Special DCA program designated for the Protected
Benefit account variable investment options.
The transfer amount formula first determines the target percentage that must be
in the AXA Ultra Conservative Strategy investment option after the ATP transfer
as follows:
A - B
ATP% = -----
0.1
WHERE:
ATP% = Required percentage of account value in the AXA Ultra Conservative Strategy
investment option and the Special DCA pro-gram designated for the Protected
Benefit account variable investment options after the ATP transfer.
A = The contract ratio calculated on the valuation day.
B = The minimum transfer point on the valuation day.
0.1 = The 10% differential between the minimum transfer point and the maximum
transfer point.
The required amount of account value in the AXA Ultra Conservative Strategy
investment option after the ATP transfer is calculated as follows:
ATP Amount = (A X B) - C
WHERE:
A = The ATP%.
B = Protected Benefit account value on the valuation day.
C = Account value in the Special DCA program designated for the Protected Benefit
account variable investment options on the valuation day.
The ATP Amount cannot be less than $0.
The transfer amount formula is used to determine the transfer amount as follows:
ATP transfer amount = (ATP amount) - (account value currently in AXA Ultra
Conservative Strategy investment option)
The ATP transfer amount is the amount that must be moved either in or out of
the AXA Ultra Conservative Strategy investment option.
.. If the ATP transfer amount is positive, it will be moved into the AXA Ultra
Conservative Strategy investment option if it meets the minimum transfer
threshold.
VIII-2
APPENDIX VIII: FORMULA FOR ASSET TRANSFER PROGRAM FOR
GUARANTEED MINIMUM INCOME BENEFIT
.. If the ATP transfer amount is negative, it will be moved out of the AXA
Ultra Conservative Strategy investment option if it meets the minimum
transfer threshold described below.
The minimum amount that will be transferred is the greater of 1% of the
Protected Benefit account value or $1,000. The test for whether the ATP
transfer amount meets the minimum transfer threshold is as follows:
.. If the ATP transfer amount is less than the minimum transfer amount, the
ATP transfer will not be processed.
.. If the ATP transfer amount is greater than or equal to the minimum transfer
amount, the ATP transfer will be processed.
The following are examples of transactions under the ATP:
-------------------------------------------------------------------------------------------------------------------------------
EXAMPLE 1 EXAMPLE 2 EXAMPLE 3
-------------------------------------------------------------------------------------------------------------------------------
CONTRACT RATIO 25% 37% 45%
-------------------------------------------------------------------------------------------------------------------------------
VALUATION DAY 4/th/ ATP year anniversary 5/th/ ATP year anniversary 6/th/ ATP year anniversary
-------------------------------------------------------------------------------------------------------------------------------
TRANSFER POINTS Minimum = 27% Minimum = 30% Minimum = 33%
Maximum = 37% Maximum = 40% Maximum = 43%
-------------------------------------------------------------------------------------------------------------------------------
ASSUMPTIONS Protected Benefit account value Protected Benefit account value Protected Benefit account value
= $100,000 = $100,000 = $100,000
AXA Ultra Conservative Strategy AXA Ultra Conservative Strategy AXA Ultra Conservative Strategy
investment option = $40,000 investment option = $40,000 investment option = $40,000
Special DCA program = $20,000 Special DCA program designated Special DCA program designated
for the Protected Benefit account for the Protected Benefit account
variable investment options = variable investment options =
$20,000 $20,000
-------------------------------------------------------------------------------------------------------------------------------
TRANSFER POINT Contract ratio is less than the Contract ratio is greater than the Contract ratio is greater than the
VALUATION minimum transfer point minimum transfer point but less maximum transfer point.
therefore, all amounts must be than maximum transfer point. Therefore, all amounts not in the
moved out of the AXA Ultra Must determine amount to move Special DCA program must be
Conservative Strategy investment in or out of the AXA Ultra moved into the AXA Ultra
option. Conservative Strategy investment Conservative Strategy investment
option, if necessary. option.
-------------------------------------------------------------------------------------------------------------------------------
ATP% 0% (0.37 - 0.3) / 0.1 = 0.7 OR 100%
(Contract Ratio - 70%
Minimum Transfer
Point) / 0.1
-------------------------------------------------------------------------------------------------------------------------------
ATP AMOUNT (0 * $100,000) - $20,000 = (0.7 * $100,000) - $20,000 = (1 * $100,000) - $20,000 =
(ATP%*Protected -$20,000 (cannot be less than $0) $50,000 $80,000
Benefit account ATP Amount = $0
value) -Special DCA
program designated
for the Protected
Benefit account
variable investment
options
-------------------------------------------------------------------------------------------------------------------------------
TRANSFER AMOUNT $0 - $40,000 = -$40,000, SCENARIO 1 - using current $80,000 - $40,000 = $40,000
(ATP Amount) - (transferred out of the AXA Ultra assumptions: (transferred into the AXA Ultra
(Protected Benefit Conservative Strategy investment $50,000 - $40,000 = $10,000 Conservative Strategy investment
account value option) (transferred into the AXA Ultra option)
currently in AXA Conservative Strategy investment
Ultra Conservative option)
Strategy investment SCENARIO 2 - if current amount
option) in AXA Ultra Conservative
Strategy investment option =
$65,000 instead of $40,000:
$50,000 - $65,000 = -
$15,000
(transferred out of the AXA Ultra
Conservative Strategy investment
option)
-------------------------------------------------------------------------------------------------------------------------------
ATP transfers into the AXA Ultra Conservative Strategy investment option will
be transferred out of your Protected Benefit account variable investment
options. No amounts will be transferred out of the Special DCA program. ATP
transfers out of the AXA Ultra Conservative Strategy investment option will be
allocated among the Protected Benefit account variable investment options
included in your contract's allocation instructions. No amounts will be
transferred into or out of the Special DCA program as a result of any ATP
transfer.
VIII-3
APPENDIX VIII: FORMULA FOR ASSET TRANSFER PROGRAM FOR
GUARANTEED MINIMUM INCOME BENEFIT
Your first ATP year is established at the time of your initial contribution or
transfer to the Protected Benefit account. For example, if you make an initial
contribution or transfer to the Protected Benefit account in the third contract
year, that would be your first ATP year. The ATP year increases by one each
subsequent contract year until you make an additional contribution or transfer
to the Protected Benefit account.
SUBSEQUENT CONTRIBUTIONS AND TRANSFERS
Each time you make a subsequent contribution or transfer to your Protected
Benefit account we will apply a set back adjustment formula. We use the formula
to determine whether (and to what extent) your applicable transfer points may
be "set back". Any set back of your transfer points will apply on the next
business day. The formula we use to calculate the set back applicable to you
may not be altered once you have the benefit. In general, the formula adjusts
your applicable transfer points to reflect the weighted average age of all
contributions and transfers made to the Protected Benefit account in relation
to the GMIB benefit base on the day prior to the contribution or transfer.
The set back adjustment formula determines the adjustment as follows:
ATP Year Set Back (A - 1) X (B + C)
= ----------------
D + C
WHERE:
ATP Year Set Back = The number of years by which the beginning of contract
year ATP year will be set back.
A = The ATP year at the beginning of the contract year.
B = Total contract year to date contributions and transfers to the
Protected Benefit account as of the day prior to the transaction date
of the ATP set back calculation.
C = The contribution and/or transfer to the Protected Benefit account on
the transaction date of the ATP set back calculation.
D = The value of the GMIB benefit base including the pro rata Roll-up
amount as of the day prior to the ATP set back calculation.
The result is rounded (either up or down as applicable) and the ATP year will
be set back by the whole number of years produced by the formula. For example,
if the result is 2.58, the number will be rounded up to 3 and the ATP year will
be set back by 3 years. Therefore, if prior to the contribution or transfer you
were in ATP year 6, month 8, you will be set back to ATP year 3, month 8.
The following is an example of the ATP year set back:
-----------------------------------------------------------------------------------------------------------------------------
CONTRIBUTION/TRANSFER #1 CONTRIBUTION/TRANSFER #2 CONTRIBUTION/TRANSFER #3
-----------------------------------------------------------------------------------------------------------------------------
CURRENT ATP YEAR ATP year 4
[A = 4]
-----------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------
ASSUMPTIONS Contract is in month 3 of the Contract is now in month 5 of Contract is now in month 7 of
current contract year. the same contract year. the same contract year.
Total contract year to date Total contract year to date Total contract year to date
contributions and transfers to the contributions and transfers to the contributions and transfers to the
Protected Benefit account as of Protected Benefit account as of Protected Benefit account as of
the valuation day prior to the the valuation day prior to the the valuation day prior to the
transaction date of the ATP set transaction date of the ATP set transaction date of the ATP set
back calculation = $0 [B = 0] back calculation = $300 back calculation = $600
The contribution and/or transfer [B = 300] [B = 600]
to the Protected Benefit account The contribution and/or transfer The contribution and/or transfer
on the transaction date of the to the Protected Benefit account to the Protected Benefit account
ATP set back calculation = $300 on the transaction date of the on the transaction date of the
[C = 300] ATP set back calculation = $300 ATP set back calculation =
Value of the GMIB benefit base [C = 300] $1,200 [C = 1,200]
including the pro rata Roll-up Value of the GMIB benefit base Value of the GMIB benefit base
amount as of the valuation day including the pro rata Roll-up including the pro rata Roll-up
prior to the ATP set back amount as of the valuation day amount as of the valuation day
calculation = $616.92 prior to the ATP set back prior to the ATP set back
[D = 616.92] calculation = $926.11 calculation = $1,238.41
[D = 926.11] [D = 1,238.41]
-----------------------------------------------------------------------------------------------------------------------------
VIII-4
APPENDIX VIII: FORMULA FOR ASSET TRANSFER PROGRAM FOR
GUARANTEED MINIMUM INCOME BENEFIT
--------------------------------------------------------------------------------------------------
CONTRIBUTION/TRANSFER #1 CONTRIBUTION/TRANSFER #2
--------------------------------------------------------------------------------------------------
ATP YEAR SET BACK (4-1) X (0 +300) = 0.98 (4-1) X (300 +300) = 1.47
(A - 1) X (B + C) 616.92 + 300 926.11 + 300
D + C Rounded to the nearest whole Rounded to the nearest whole
year = 1 year = 1
--------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------
NEW ATP YEAR New ATP year = 4-1 = 3 (ATP New ATP year = 4-1 = 3 (ATP
Current ATP year - ATP year set year is set back by 1) year has already been set back to
back = New ATP year NEW ATP YEAR = 3 year 3. No additional set back
will occur.)
--------------------------------------------------------------------------------------------------
------------------------------------------------------------------
CONTRIBUTION/TRANSFER #3
------------------------------------------------------------------
ATP YEAR SET BACK (4-1) X (600 +1200) = 2.21
(A - 1) X (B + C) 1,238.41 + 1200
D + C Rounded to the nearest whole
year = 2
------------------------------------------------------------------
------------------------------------------------------------------
NEW ATP YEAR New ATP year = 4-2 = 2 (ATP
Current ATP year - ATP year set year is set back by 1 additional
back = New ATP year year)
NEW ATP YEAR = 2
------------------------------------------------------------------
ATP EXIT OPTION
When the ATP exit option is processed your Guaranteed benefit base(s) will be
adjusted as follows:
New Benefit Base = (1- 3%) X A _ D
-------------
1 - B + C
WHERE:
New Benefit Base = The new value that the GMIB benefit base and if applicable, the
Roll-up to age 85 benefit base and Highest Anniver-sary Value
benefit base will be adjusted to if this value is less than the
current value of the respective benefit bases.
A = The Protected Benefit account value as of the day prior to the ATP
exit option.
B = The [interpolated] minimum transfer point as of the next valuation
day.
C = The total rider charge percentage for both the GMIB and GMDB benefits.
D = The prorated Roll-up amount from the last contract date anniversary
to the next valuation day plus the prorated Roll-up amount for
contributions and transfers in that contract year as of the next
valuation day minus the contract year-to-date withdrawals up to the
Annual withdrawal amount.
3% = cushion in investment performance to decrease the probability of an
ATP transfer on the upcoming valuation day.
<R>
For example, the ATP exit option is processed during the seventh month of the
fifth ATP year. The number of completed months in the current ATP year is six.
The minimum transfer point is 28.5%, which is derived by interpolating the
fourth ATP year anniversary minimum transfer point and the fifth ATP year
anniversary minimum transfer point [=(27% + 30%)/2]. The cushion is 3%. Assume
that your Protected Benefit account value is $100,000, GMIB benefit base is
$150,000 Highest Anniversary Value benefit base is $110,000, Roll-up to age 85
benefit base is $150,000 and the Roll-up rate is the 5% Annual Roll-up rate.
Note that the "Greater of" death benefit base ($150,000) is the greater of the
Highest Anniversary Value benefit base ($110,000) and the Roll-up to age 85
benefit base ($150,000). Also assume that no withdrawal has been taken in this
contract year and that the pro-rated Roll-up amount (net of withdrawals) is
$3,750 (=5%X$150,000X6/12 - 0).
</R>
When the ATP exit option is processed, the new benefit base is:
<R>
New benefit base = (1- 3%) X 100,000 _ 3,750 = $127,686
-------------------
1 - .285 + 0.023
</R>
<R>
Your Highest Anniversary Value benefit base stays at the current value
($110,000), as the new benefit base ($127,686) is greater than your current
Highest Anniversary Value benefit base. Your GMIB benefit base and your Roll-up
to age 85 benefit base are adjusted to the new benefit base ($127,686), as the
new benefit base is less than your current GMIB and Roll-up to age 85 benefit
bases. Your "Greater of" death benefit base is also adjusted to the new benefit
base ($127,686), as it is the greater of the Highest Anniversary Value benefit
base ($110,000) and the Roll-up to age 85 benefit base ($127,686).
Furthermore, if a contribution in the amount of $20,000 is made after the ATP
exit option is processed, the Highest Anniversary Value benefit base would be
$130,000 ($110,000 + $20,000) and the Roll-up to age 85 benefit base, GMIB
benefit base and "Greater of" death benefit base would be $147,686 ($127,686 +
$20,000).
</R>
VIII-5
APPENDIX VIII: FORMULA FOR ASSET TRANSFER PROGRAM FOR
GUARANTEED MINIMUM INCOME BENEFIT
Conversely, if the $20,000 contribution is made before requesting the ATP exit
option:
.. The contribution would result in a transfer on the next valuation date from
the AXA Ultra Conservative Strategy investment option so that only 10% of
the Protected Benefit account value would remain invested in the AXA Ultra
Conservative Strategy investment option.
.. If the ATP exit option is then processed the new benefit base would be:
<R>
New benefit base = (1- 3%) X 120,000 _ 3,750 = $153,974
-------------------
1 -0.285 + 0.023
</R>
<R>
Your GMIB benefit base is adjusted to $153,974.
</R>
VIII-6
APPENDIX VIII: FORMULA FOR ASSET TRANSFER PROGRAM FOR
GUARANTEED MINIMUM INCOME BENEFIT
Appendix IX: Rules regarding contributions to your contract
--------------------------------------------------------------------------------
The following tables describes the contribution rules for all contract Series E
and types.
<R>
-----------------------------------------------------------------------------------------------
CONTRACT TYPE NQ
-----------------------------------------------------------------------------------------------
ISSUE AGES . 0-80
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $25,000
CONTRIBUTION AMOUNT
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT . $500
CONTRIBUTION AMOUNT
(IF PERMITTED)
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS . The only source of contributions that is permitted to be made to
a contract is a 1035 exchange from a Prior Contract.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS . If you elect the GMIB with the "Greater of" GMDB, you may make
ON CONTRIBUTIONS TO THE subsequent contributions to your contract which are allocated to
CONTRACT/(1)/ your Protected Benefit account through age 70, or if later, the
first contract date anniversary. If you do not elect the "Greater
of" GMDB, you may make subsequent contributions to your contract
which are allocated to your Protected Benefit account through age
80, or if later, the first contract date anniversary. However,
regardless of the benefits elected, once you make a withdrawal
from your Protected Benefit account, subsequent contributions
will no longer be permitted to be allocated to your Protected
Benefit account.
. You may make subsequent contributions to your contract which are
allocated to your Investment account through age 85 or the first
contract date anniversary.
-----------------------------------------------------------------------------------------------
</R>
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
IX-1
APPENDIX IX: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
<R>
-----------------------------------------------------------------------------------------------
CONTRACT TYPE TRADITIONAL IRA
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-80
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $25,000
CONTRIBUTION AMOUNT
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT . $50
CONTRIBUTION AMOUNT
(IF PERMITTED)
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS . The only sources of contributions that are permitted to be made
to a contract are rollovers or direct transfers from a Prior
Contract.
. Eligible rollover distributions from 403(b) plans, qualified
plans and governmental employer 457(b) plans.
. Rollovers from another traditional individual retirement annuity
contract issued by us, including SEP, SIMPLE or SARSEP IRAs.
. Direct custodian-to-custodian transfers from another traditional
individual retirement annuity contract issued by us, including
SEP, SIMPLE or SARSEP IRAs.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS . If you elect the GMIB with the "Greater of" GMDB, you may make
ON CONTRIBUTIONS TO THE subsequent contributions to your contract which are allocated to
CONTRACT/(1)/ your Protected Benefit account through age 70, or if later, the
first contract date anniversary. If you do not elect the "Greater
of" GMDB, you may make subsequent contributions to your contract
which are allocated to your Protected Benefit account through age
80, or if later, the first contract date anniversary. However,
regardless of the benefits elected, once you make a withdrawal
from your Protected Benefit account, subsequent contributions
will no longer be permitted to be allocated to your Protected
Benefit account.
. You may make subsequent contributions to your contract which are
allocated to your Investment account through age 85 or the first
contract date anniversary.
. Contributions made after age 701/2 must be net of required
minimum distributions.
. If you elect the RMD Wealth Guard death benefit, you may make
subsequent contributions to your contract which are allocated to
your Protected Benefit account through age 65, or if later, the
first contract date anniversary. If you do not elect the RMD
Wealth Guard death benefit, you may make subsequent contributions
through age 80, or if later, the first contract date anniversary.
However, regardless of the benefits you elected, once you make a
withdrawal from your Protected Benefit account, subsequent
contributions will no longer be permitted to be allocated to your
Protected Benefit account.
-----------------------------------------------------------------------------------------------
</R>
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
IX-2
APPENDIX IX: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
<R>
-----------------------------------------------------------------------------------------------
CONTRACT TYPE ROTH IRA
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-80
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $25,000
CONTRIBUTION AMOUNT
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT . $50
CONTRIBUTION AMOUNT
(IF PERMITTED)
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS . The only sources of contributions that are permitted to be made
to a contract are rollovers or direct transfers from a Prior
Contract.
. Rollovers from another Roth IRA.
. Rollovers from a "designated Roth contribution account" under
specified retirement plans.
. Conversion rollovers from a traditional IRA or other eligible
retirement plan.
. Direct custodian-to-custodian transfers from another Roth IRA.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS . If you elect the GMIB with the "Greater of" GMDB, you may make
ON CONTRIBUTIONS TO THE subsequent contributions to your contract which are allocated to
CONTRACT/(1)/ your Protected Benefit account through age 70, or if later, the
first contract date anniversary. If you do not elect the "Greater
of" GMDB, you may make subsequent contributions to your contract
which are allocated to your Protected Benefit account through age
80, or if later, the first contract date anniversary. However,
regardless of the benefits elected, once you make a withdrawal
from your Protected Benefit account, subsequent contributions
will no longer be permitted to be allocated to your Protected
Benefit account.
. You may make subsequent contributions to your contract which are
allocated to your Investment account through age 85 or the first
contract date anniversary.
. Conversion rollovers after age 701/2 must be net of required
minimum distributions for the traditional IRA or other eligible
retirement plan that is the source of the conversion rollover.
-----------------------------------------------------------------------------------------------
</R>
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
IX-3
APPENDIX IX: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
<R>
-----------------------------------------------------------------------------------------------
CONTRACT TYPE QP
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-80
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $25,000
CONTRIBUTION AMOUNT
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT . $500
CONTRIBUTION AMOUNT (IF
SUBSEQUENT
CONTRIBUTIONS ARE
PERMITTED)
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS . The only source of contributions that is permitted to be made to
a contract is a transfer from a Prior Contract. The Prior
Contract which is the source of the transfer must be owned by the
same existing qualified plan trust.
. The plan must be qualified under Section 401(a) of the Internal
Revenue Code.
. For 401(k) plans, transferred contributions may not include any
after-tax contributions, including designated Roth contributions.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS . A separate QP contract must be established for each plan
ON CONTRIBUTIONS TO THE participant, even defined benefit plan participants.
CONTRACT/(1)/ . We do not accept contributions directly from the employer.
. Only one subsequent contribution can be made during a contract
year.
. Contributions made after the annuitant's age 70 1/2 must be net
of any required minimum distributions.
. If you elect the GMIB with the "Greater of" GMDB, you may make
subsequent contributions to to your contract which are allocated
to your Protected Benefit account through age 70, or if later,
the first contract date anniversary. If you do not elect the
"Greater of" GMDB, you may make subsequent contributions to your
contract, which are allocated to your Protected Benefit account
through age 75, or if later, the first contract date anniversary.
However, regardless of the benefits elected, once you make a
withdrawal from your Protected Benefit account, subsequent
contributions to your Protected Benefit account will no longer be
permitted to be allocated to your Protected Benefit account.
. You may make subsequent contributions to your Investment account
through age 75 or the first contract date anniversary.
. For QPDC contracts only: If you elect the RMD Wealth Guard death
benefit, you may make subsequent contributions to your contract
which are allocated to your Protected Benefit account through age
65, or if later, the first contract date anniversary. If you do
not elect the RMD Wealth Guard death benefit, you may make
subsequent contributions through age 80, or if later, the first
contract date anniversary. However, regardless of the benefits
you elected, once you make a withdrawal from your Protected
Benefit account, subsequent contributions will no longer be
permitted to your Protected Benefit account.
See Appendix II earlier in this Prospectus for a discussion on purchase considerations for QP
contracts.
-----------------------------------------------------------------------------------------------
</R>
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
IX-4
APPENDIX IX: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
Appendix X: Exchange program
--------------------------------------------------------------------------------
<R>
The Retirement Cornerstone(R) Series E contract is offered only through an
exchange program under which a Prior Contract may be exchanged for a Retirement
Cornerstone(R) Series E contract. This is called an "exchange" under securities
law. For purposes of this Prospectus, the word "exchange" includes a rollover
or transfer, as applicable, for federal income tax purposes.
</R>
The charts set forth in this Appendix provide a summary comparison of some of
the important features of Prior Contracts and the Retirement Cornerstone(R)
Series E contract. It is important to note that we did not provide disclosures
of guaranteed benefits that may have been available under a Prior Contract,
since you would not be eligible to exchange to a Retirement Cornerstone(R)
Series E contract if you elected one or more of the guaranteed benefits. You
should not rely solely on the information contained in the charts in examining
the differences between your existing contract and the Retirement
Cornerstone(R) Series E contract. There may be other differences important for
you to consider prior to exchanging to a Retirement Cornerstone(R) Series E
contract. You should read the Prospectus and other information related to your
existing contract prior to exchanging to a Retirement Cornerstone(R) Series E
contract. Please note, these charts do not create or modify any existing rights
or benefits, all of which are only established by your existing contract.
<R>
You should carefully consider whether an exchange is appropriate for you by
considering the benefits and guarantees provided by your Prior Contract to the
benefits and guarantees provided by the Retirement Cornerstone(R) Series E
contract. Under this exchange program, among other conditions, the Prior
Contract cannot have elected a living or guaranteed benefit nor have any
remaining or outstanding withdrawal charges. The account value attributable to
your existing contract would not be subject to any withdrawal charge under a
Retirement Cornerstone(R) Series E contract, but would be subject to all other
charges and fees under a Retirement Cornerstone(R) Series E contract. You
should also review the fees and charges of your Prior Contract and the fees and
charges of the Retirement Cornerstone(R) Series E contract, which may be higher
than the fees and charges under the Prior Contract. Any such exchange program
will be made available on terms and conditions determined by us and will comply
with applicable law. For information of eligible Prior Contracts, see "Exchange
Program" in "Retirement Cornerstone(R) Series E at a glance -- key features"
earlier in this Prospectus. If you are considering exchanging your Prior
Contract for a Retirement Cornerstone(R) Series E contract and would like a
copy of the Prospectus, please contact your financial professional, who will be
able to explain the benefits and features of this contract and provide you with
the proper forms and application necessary to complete the transaction.
</R>
X-1
APPENDIX X: EXCHANGE PROGRAM
A. THE ACCUMULATOR(R) SERIES ('02/'04 THROUGH SERIES 9.0)
<R>
--------------------------------------------------------------------------------------------
PRIOR CONTRACTS
--------------------------------------------------------------------------------------------
THE ACCUMULATOR(R) SERIES ('02/'04 THROUGH SERIES'07/'07.5) FOR:
ACCUMULATOR(R); ACCUMULATOR(R) PLUS/SM/; ACCUMULATOR(R) ELITE/SM/; AND
ACCUMULATOR(R) SELECT/ SM/ SERIES/1/
--------------------------------------------------------------------------------------------
Annual Administrative Charge: If your account value on a contract date $30
anniversary is less than $50,000/2,3/. $0
If your account value on a contract date
anniversary is $50,000 or more/2/.
--------------------------------------------------------------------------------------------
Total Separate Account Annual 1.25% - 1.70%
Expenses:
--------------------------------------------------------------------------------------------
Death Benefit: The greater of: (i) your account value (without
adjustment for any otherwise applicable negative
market value adjustment), less any outstanding loan
balance plus accrued interest as of the date we receive
satisfactory proof of death, any required instructions,
information and forms necessary to effect payment; and
(ii) your total contributions, adjusted for withdrawals
and any withdrawal charges and any taxes that may
apply, less any outstanding loan balance plus accrued
interest.
--------------------------------------------------------------------------------------------
Return of Principal Death Benefit No Charge
Charge/4/:
--------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable
Benefit Charge/4/:
--------------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable
Charge/4/:
--------------------------------------------------------------------------------------------
</R>
<R>
-------------------------------------------------------------------------
-------------------------------------------------------------------------
THE ACCUMULATOR(R) SERIES (8.0/8.2/8.3) THROUGH
SERIES 9.0) FOR: ACCUMULATOR(R); ACCUMULATOR(R) PLUS/SM/;
ACCUMULATOR(R) ELITE/SM/; AND ACCUMULATOR(R) SELECT/SM/
SERIES/1/
-------------------------------------------------------------------------
$30 If your account value on a contract date anniversary is less $30 $30
$0 than $50,000/2,3/. $0 $0
If your account value on a contract date anniversary is
$50,000 or more/2/.
--------------------------------------------------------------------------------------------
1.30% - 1.70%
-------------------------------------------------------------------------
The greater of: (i) your account value, less any outstanding loan
balance plus accrued interest, if applicable, as of the date we receive
satisfactory proof of death, any required instructions, information
and forms necessary to effect payment; and (ii) your total
contributions, adjusted for withdrawals and any withdrawal charges
and any taxes that may apply, less any outstanding loan balance
plus accrued interest.
-------------------------------------------------------------------------
No Charge
-------------------------------------------------------------------------
Not Applicable
-------------------------------------------------------------------------
Not Applicable
-------------------------------------------------------------------------
</R>
<R>
---------------------------------------------------------
NEW CONTRACT
---------------------------------------------------------
RETIREMENT CORNERSTONE(R) SERIES E
---------------------------------------------------------
$30 $30 If your account value on a contract date $30
$0 $0 anniversary is less than $50,000/2,3/. $0
If your account value on a contract date
anniversary is $50,000 or more/2/.
---------------------------------------------------------------------------
1.30%
---------------------------------------------------------
For the purposes of determining the death benefit under
your Retirement Cornerstone(R) Series E contract, we
treat your Investment account and any Guaranteed
minimum death benefit funded by your Protected
Benefit account differently.
The death benefit in connection with your Investment
account is equal to your Investment account value as of
the date we receive satisfactory proof of death, any
required instructions for the method of payment, and
any required information and forms necessary to effect
payment. The death benefit payable in connection with
your Protected Benefit account will be based on the
greater of (i) your Protected Benefit account value, and
(ii) the benefit base of your Guaranteed minimum death
benefit.
---------------------------------------------------------
No Additional Charge*
*PLEASE BE ADVISED THAT THE RETURN OF PRINCIPAL
DEATH BENEFIT DOES NOT HAVE AN ADDITIONAL
CHARGE, BUT THIS GUARANTEED BENEFIT MUST BE
ELECTED IN COMBINATION WITH THE GUARANTEED
MINIMUM INCOME BENEFIT, WHICH DOES HAVE A
CHARGE.
---------------------------------------------------------
0.35% (current and maximum)
---------------------------------------------------------
1.15% (current)
2.30% (maximum)
---------------------------------------------------------
</R>
X-2
APPENDIX X: EXCHANGE PROGRAM
<R>
-------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW CONTRACT
-------------------------------------------------------------------------------------------------------------------
THE THE RETIREMENT
ACCUMULATOR(R) ACCUMULATOR(R) CORNERSTONE(R)
SERIES ('02/'04 SERIES SERIES E
THROUGH (8.0/8.2/8.3)
SERIES'07/'07.5) THROUGH
FOR: SERIES 9.0)
ACCUMULATOR(R); FOR:
ACCUMULATOR(R) ACCUMULATOR(R);
PLUS/SM/; ACCUMULATOR(R)
ACCUMULATOR(R) PLUS/SM/;
ELITE/SM/; AND ACCUMULATOR(R)
ACCUMULATOR(R) ELITE/SM/;
SELECT/ SM/ AND
SERIES/1/ ACCUMULATOR(R)
SELECT/SM/
SERIES/1/
-------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard Death Benefit Not Applicable Not 0.90% (current)
Charge/4/: Applicable 1.80% (maximum)
-------------------------------------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable Not 1.15% (current)
Benefit Charge/4/: Applicable 2.30% (maximum)
-------------------------------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed 1% - 3% 1% - 3% 1%
Interest Rate in the Guaranteed
Interest Option:
-------------------------------------------------------------------------------------------------------------------
Loan Features (if your Yes for
employer's plan permits): Yes Accumulator(R) No
Series
8.0/8.2/8.3
--------------------
No for
Accumulator(R)
Series 9.0
- - ---------------------
Fixed Maturity Options/5/: Yes No No
-------------------------------------------------------------------------------------------------------------------
Variable Investment Options with Not Applicable Not 7
your Protected Benefit Account/6/: Applicable Various Classes
-------------------------------------------------------------------------------------------------------------------
Variable Investment Options with 37 23-36 109
your Investment Account/6/: Classes B and IB Classes B Various Classes
and IB
(Series
8.0/8.2/8.3)
Class IB
(Series 9.0)
-------------------------------------------------------------------------------------------------------------------
Sources of Permitted Subsequent . Full or . Full or . Full
Contributions partial partial exchange,
exchange, exchange, rollover or
rollover or rollover direct
direct or transfer
transfer direct from a Prior
from another transfer Contract
annuity from
contract or another
other annuity
eligible contract
investment or
. After tax other
check eligible
investment
. After
tax
check
-------------------------------------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the administrative charge for that year.
/3./ During the first two contract years this charge, if applicable, is equal
to the lesser of $30 or 2% of your Total account value. Thereafter, the
charge, if applicable, is $30 for each contract year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-3
APPENDIX X: EXCHANGE PROGRAM
B. ACCUMULATOR (SERIES 1995 THROUGH SERIES 2001)
<R>
---------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS
---------------------------------------------------------------------------------------------------------
INCOME MANAGER /SM/ ACCUMULATOR; INCOME MANAGER/ SM/ ROLLOVER IRA; INCOME INCOME
MANAGER/ SM/ ROLLOVER IRA & CHOICE INCOME PLAN (YEAR 1995)/1 / MANAGER/ SM/
ACCUMULATOR
(YEAR 1996);
INCOME
MANAGER/ SM/
ROLLOVER IRA
AND THE CHOICE
INCOME PLAN
(YEAR 1996);
ACCUMULATOR
(IRA AND NQ)
(YEAR 1997);
ACCUMULATOR/SM/
SELECT/ /(IRA
AND NQ) (YEAR
1997);
ACCUMULATOR/
SM/ (IRA,NQ
AND QP) (YEAR
1998);
ACCUMULATOR/SM/
SELECT/ /(IRA,
NQ AND QP)
(YEAR 1998)/1 /
---------------------------------------------------------------------------------------------------------
Annual Contract Fee: If the initial contribution is less $30 None
than $25,000. $0
If the initial contribution is more
than $25,000.
---------------------------------------------------------------------------------------------------------
Total Separate Account Annual 1.15% 1.20%-1.60%
Expenses:
---------------------------------------------------------------------------------------------------------
Death Benefit: The death benefit is equal to the return of your The death
account value as of the date we receive satisfactory benefit is
proof of death and all information and forms equal to the
necessary to effect payment. return of
your account
value as of
the date we
receive
satisfactory
proof of
death and all
information
and forms
necessary to
effect
payment.
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable Not Applicable
Charge/4/:
---------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable Not Applicable
Benefit Charge/4/:
---------------------------------------------------------------------------------------------------------
</R>
<R>
---------------------------------------------------------
NEW CONTRACT
---------------------------------------------------------
INCOME RETIREMENT CORNERSTONE(R) SERIES E
MANAGER/ SM/
ACCUMULATOR
(YEAR 1996);
INCOME
MANAGER/ SM/
ROLLOVER IRA
AND THE CHOICE
INCOME PLAN
(YEAR 1996);
ACCUMULATOR
(IRA AND NQ)
(YEAR 1997);
ACCUMULATOR/SM/
SELECT/ /(IRA
AND NQ) (YEAR
1997);
ACCUMULATOR/
SM/ (IRA,NQ
AND QP) (YEAR
1998);
ACCUMULATOR/SM/
SELECT/ /(IRA,
NQ AND QP)
(YEAR 1998)/1 /
-------------------------------------------------------------------------
None If your account value on a $30
contract date anniversary is less $0
than $50,000/2,3/.
If your account value on a
contract date anniversary is
$50,000 or more/2/.
-------------------------------------------------------------------------
1.20%-1.60% 1.30%
-------------------------------------------------------------------------
The death
benefit is For the purposes of determining the death benefit under
equal to the your Retirement Cornerstone(R) Series E contract, we
return of treat your Investment account and any Guaranteed
your account minimum death benefit funded by your Protected
value as of Benefit account differently.
the date we The death benefit in connection with your Investment
receive account is equal to your Investment account value as of
satisfactory the date we receive satisfactory proof of death, any
proof of required instructions for the method of payment, and
death and all any required information and forms necessary to effect
information payment. The death benefit payable in connection with
and forms your Protected Benefit account will be based on the
necessary to greater of (i) your Protected Benefit account value, and
effect (ii) the benefit base of your Guaranteed minimum
payment. death benefit.
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Not Applicable No Additional Charge*
*PLEASE BE ADVISED THAT THE RETURN OF
PRINCIPAL DEATH BENEFIT DOES NOT HAVE AN
ADDITIONAL CHARGE, BUT THIS GUARANTEED
BENEFIT MUST BE ELECTED IN COMBINATION WITH
THE GUARANTEED MINIMUM INCOME BENEFIT,
WHICH DOES HAVE A CHARGE.
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Not Applicable 0.35% (current and maximum)
-------------------------------------------------------------------------
</R>
X-4
APPENDIX X: EXCHANGE PROGRAM
<R>
----------------------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW CONTRACT
----------------------------------------------------------------------------------------------------------------------------------
INCOME MANAGER/SM/ ACCUMULATOR; INCOME MANAGER/SM/ INCOME MANAGER/SM/ RETIREMENT
ROLLOVER IRA; INCOME MANAGER/SM/ ROLLOVER IRA & ACCUMULATOR (YEAR 1996); CORNERSTONE(R)
CHOICE INCOME PLAN (YEAR 1995)/1 / INCOME MANAGER/SM/ ROLLOVER SERIES E
IRA AND THE CHOICE INCOME
PLAN (YEAR 1996); ACCUMULATOR
(IRA AND NQ) (YEAR 1997);
ACCUMULATOR/SM/ SELECT/ /(IRA
AND NQ) (YEAR 1997);
ACCUMULATOR/SM/ (IRA,NQ AND
QP) (YEAR 1998);
ACCUMULATOR/SM/ SELECT/
/(IRA, NQ AND QP) (YEAR
1998)/1 /
----------------------------------------------------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable Not Applicable 1.15%
Charge/4/: (current)
2.30%
(maximum)
----------------------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard Death Not Applicable Not Applicable 0.90%
Benefit Charge/4/: (current)
1.80%
(maximum)
----------------------------------------------------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable Not Applicable 1.15%
Benefit Charge/4/: (current)
2.30%
(maximum)
----------------------------------------------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed 3% 3% 1%
Interest Rate in the
Guaranteed Interest Option:
----------------------------------------------------------------------------------------------------------------------------------
Loan Features (if No No No
your employer's plan permits):
----------------------------------------------------------------------------------------------------------------------------------
Fixed Maturity Options/5/: No No No
----------------------------------------------------------------------------------------------------------------------------------
Variable Investment Options Not Applicable Not Applicable 7
with your Protected Benefit Various
Account/6/: Classes
----------------------------------------------------------------------------------------------------------------------------------
Variable Investment Options 9 6-24 109
with your Investment Various
Account/6/: Classes
----------------------------------------------------------------------------------------------------------------------------------
Sources of Permitted . Full or partial . Full or partial exchange, . Full
Subsequent Contributions exchange, rollover rollover or direct exchange,
or direct transfer transfer from another rollover
from another annuity contract or other or direct
annuity contract or eligible investment transfer
other eligible . After tax check from a
investment Prior
. After tax check Contract
----------------------------------------------------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the administrative charge for that year.
/3./ During the first two contract years this charge, if applicable, is equal
to the lesser of $30 or 2% of your Total account value. Thereafter, the
charge, if applicable, is $30 for each contract year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-5
APPENDIX X: EXCHANGE PROGRAM
B. ACCUMULATOR (SERIES 1995 THROUGH SERIES 2001)
<R>
-------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW
CONTRACT
-------------------------------------------------------------------------------------
RETIREMENT
ACCUMULATOR/ ACCUMULATOR CORNERSTONE(R)
SM/ (YEARS SELECT/SM/ SERIES E
1999, 2000 (YEARS
AND 1999 AND
2001)/1 / 2000)/ 1/
-------------------------------------------------------------------------------------
Annual If the $30 None If your $30
Contract Fee: account $0 account $0
value on value on
a a
contract contract
date date
anniversary anniver-sary
is less is less
is less than
than $50,000/2,3/.
$25,000. If your
If the account
account value on
value on a
a contract
contract date
date anniver-sary
anniversary is
is less $50,000
is more or
than more/2/.
$25,000.
-------------------------------------------------------------------------------------
Total Separate Account Annual 1.35% - 1.65% 1.60% - 1.30%
Expenses: 170%
-------------------------------------------------------------------------------------
Death Benefit: The greater The For the
of: (i) your greater purposes of
account value, of: (i) determining
less any your the death
outstanding account benefit under
loan balance value, your
plus accrued less any Re-tirement
interest as of outstanding Cornerstone(R)
the date we loan Series E
receive balance contract, we
satisfactory plus treat your
proof of accrued Investment
death, any interest account and
required as of the any Guaranteed
instructions, date we minimum death
information receive benefit funded
and forms satisfactory by your
necessary to proof of Protected
effect death, Benefit
payment; and any account
(ii) your required differently.
total instructions, The death
contributions, information benefit in
ad-justed for and forms connection
withdrawals necessary with your
and any to effect Investment
withdrawal payment; account is
charges and and (ii) equal to your
any taxes that your Investment
may apply, total account value
less any contributions, as of the date
outstanding adjusted we receive
loan balance for satisfactory
plus accrued with-drawals proof of
interest. and any death, any
withdrawal required
charges instructions
and any for the method
taxes of payment,
that may and any
apply, required
less any information
outstanding and forms
loan necessary to
balance effect
plus payment. The
accrued death benefit
interest. payable in
con-nection
with your
Protected
Benefit
account will
be based on
the greater of
(i) your
Protected
Benefit
account value,
and (ii) the
benefit base
of your
Guaranteed
minimum death
benefit.
-------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable Not No Additional
Charge/4/: Applicable Charge*
*PLEASE BE
ADVISED THAT
THE RETURN OF
PRINCIPAL
DEATH BENEFIT
DOES NOT HAVE
AN ADDITIONAL
CHARGE, BUT
THIS
GUARANTEED
BENEFIT MUST
BE ELECTED IN
COMBINATION
WITH THE
GUARANTEED
MINIMUM INCOME
BENEFIT, WHICH
DOES HAVE A
CHARGE.
-------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable Not 0.35% (current
Benefit Charge/4/: Applicable and maximum)
-------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable Not 1.15% (current)
Charge/4/: Applicable 2.30% (maximum)
-------------------------------------------------------------------------------------
RMD Wealth Guard Death Benefit Not Applicable Not 0.90% (current)
Charge/4/: Applicable 1.80% (maximum)
-------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable Not 1.15% (current)
Benefit Charge/4/: Applicable 2.30% (maximum)
-------------------------------------------------------------------------------------
</R>
X-6
APPENDIX X: EXCHANGE PROGRAM
<R>
------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW
CONTRACT
------------------------------------------------------------------------------------------
RETIREMENT
ACCUMULATOR/ ACCUMULATOR CORNERSTONE(R)
SM/ (YEARS SELECT/SM/ SERIES E
1999, 2000 (YEARS
AND 1999 AND
2001)/1 / 2000)/ 1/
------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed 3% No 1%
Interest Rate in the Guaranteed
Interest Option:
------------------------------------------------------------------------------------------
Loan Features (if your employer's Yes Yes No
plan permits):
------------------------------------------------------------------------------------------
Fixed Maturity Options/5/: Yes Yes No
------------------------------------------------------------------------------------------
Variable Investment Options with Not Not 7
your Protected Benefit Account/6/: Applicable Applicable Various
Classes
------------------------------------------------------------------------------------------
Variable Investment Options with 26 - 32 22 - 31 109
your Investment Account/6/: Various
Classes
------------------------------------------------------------------------------------------
Sources of Permitted Subsequent . Full or . Full . Full
Contributions partial or exchange,
exchange, partial rollover
rollover exchange, or
or rollover direct
direct or transfer
transfer direct from a
from transfer Prior
another from Contract
annuity another
contract annuity
or contract
other or
eligible other
investment eligible
. After investment
tax . After
check tax
check
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the administrative charge for that year.
/3./ During the first two contract years this charge, if applicable, is equal
to the lesser of $30 or 2% of your Total account value. Thereafter, the
charge, if applicable, is $30 for each contract year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-7
APPENDIX X: EXCHANGE PROGRAM
B. ACCUMULATOR (SERIES 1995 THROUGH SERIES 2001)
<R>
---------------------------------------------------------------------------------------------------
PRIOR CONTRACTS
---------------------------------------------------------------------------------------------------
ACCUMULATOR PLUS/SM/ (YEAR 1999)/1/
---------------------------------------------------------------------------------------------------
Annual Contract Fee: None
---------------------------------------------------------------------------------------------------
Total Separate Account Annual 1.60%
Expenses:
---------------------------------------------------------------------------------------------------
Death Benefit: The death benefit is equal to the return of your account value
as of the date we receive satisfactory proof of death and all
information and forms necessary to effect payment.
---------------------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable
Charge/4/:
---------------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable
Benefit Charge/4/:
---------------------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable
Charge/4/:
</R>
<R>
------------------------------------------------------------------------------------------------------------------------------------
NEW CONTRACT
------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATOR PLUS/SM/ (YEARS 2000 AND 2001)/1/ RETIREMENT CORNERSTONE(R) SERIES E
------------------------------------------------------------------------------------------------------------------------------------
None If your account value on a $30
contract date anniversary $0
is less than $50,000/2,3/.
If your account value on a
contract date anniversary
is $50,000 or more/2/.
------------------------------------------------------------------------------------------------------------------------------------
1.60%-1.70% 1.30%
------------------------------------------------------------------------------------------------------------------------------------
The greater of: (i) your account value, less any outstanding loan For the purposes of determining the death benefit under
balance plus accrued interest as of the date we receive sat- your Retirement Cornerstone(R) Series E contract, we treat
isfactory proof of death, any required instructions, information your Investment account and any Guaranteed minimum
and forms necessary to effect payment; and (ii) your total con- death benefit funded by your Protected Benefit account
tributions, adjusted for withdrawals and any withdrawal differently.
charges and any taxes that may apply, less any outstanding The death benefit in connection with your Investment
loan balance plus accrued interest. account is equal to your Investment account value as
of the date we receive satisfactory proof of death, any
required instructions for the method of payment, and
any required information and forms necessary to effect
payment. The death benefit payable in connection with
your Protected Benefit account will be based on the
greater of (i) your Protected Benefit account value, and
(ii) the benefit base of your Guaranteed minimum
death benefit.
------------------------------------------------------------------------------------------------------------------------------------
Not Applicable No Additional Charge*
*PLEASE BE ADVISED THAT THE RETURN OF PRINCIPAL
DEATH BENEFIT DOES NOT HAVE AN ADDITIONAL CHARGE,
BUT THIS GUARANTEED BENEFIT MUST BE ELECTED IN
COMBINATION WITH THE GUARANTEED MINIMUM IN-
COME BENEFIT, WHICH DOES HAVE A CHARGE.
------------------------------------------------------------------------------------------------------------------------------------
Not Applicable 0.35% (current and maximum)
------------------------------------------------------------------------------------------------------------------------------------
Not Applicable 1.15% (current)
2.30% (maximum)
</R>
X-8
APPENDIX X: EXCHANGE PROGRAM
<R>
------------------------------------------------------------------------------------------------------------------------------
PRIOR NEW
CONTRACTS CONTRACT
------------------------------------------------------------------------------------------------------------------------------
ACCUMULATOR PLUS/SM/ (YEAR 1999)/1/
ACCUMULATOR RETIREMENT
PLUS/SM/ CORNERSTONE(R)
(YEARS SERIES
2000 AND E
2001)/1/
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard Death Benefit Not Applicable Not 0.90%
Charge/4/: Applicable (current)
1.80%
(maximum)
------------------------------------------------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable Not 1.15%
Benefit Charge/4/: Applicable (current)
2.30%
(maximum)
------------------------------------------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed No No 1%
Interest Rate in the Guaranteed
Interest Option:
------------------------------------------------------------------------------------------------------------------------------
Loan Features (if your No Yes No
employer's plan permits):
------------------------------------------------------------------------------------------------------------------------------
Fixed Maturity Options/5/: No No No
------------------------------------------------------------------------------------------------------------------------------
Variable Investment Options with Not Applicable Not 7
your Protected Benefit Account/6/: Applicable
Various
Classes
------------------------------------------------------------------------------------------------------------------------------
Variable Investment Options with 28 31-32 109
your Investment Account/6/:
Various
Classes
------------------------------------------------------------------------------------------------------------------------------
Sources of Permitted Subsequent Full or partial exchange, rollover or direct transfer from . Full .
Contributions another annuity contract or other eligible investment or Full
After tax check partial exchange,
exchange, rollover
rollover or
or direct
direct transfer
transfer from
from a
another Prior
annuity Contract
contract
or
other
eligible
investment
. After
tax
check
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the administrative charge for that year.
/3./ During the first two contract years this charge, if applicable, is equal
to the lesser of $30 or 2% of your Total account value. Thereafter, the
charge, if applicable, is $30 for each contract year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-9
APPENDIX X: EXCHANGE PROGRAM
B. ACCUMULATOR (SERIES 1995 THROUGH SERIES 2001)
<R>
---------------------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW
CONTRACT
---------------------------------------------------------------------------------------------------------------------------------
ACCUMULATOR(R) ELITE/SM/ (YEAR 2001) RETIREMENT
CORNERSTONE(R)
SERIES E
---------------------------------------------------------------------------------------------------------------------------------
Annual Contract Fee: None If your $30
account
value on
a
contract
date
anniversary
is less
than
$50,000/2,3/.
If your $0
account
value on
a
contract
date
anniversary
is
$50,000
or
more/2/.
---------------------------------------------------------------------------------------------------------------------------------
Total Separate Account Annual 1.60% 1.30%
Expenses:
---------------------------------------------------------------------------------------------------------------------------------
Death Benefit: The death benefit is equal to the return of your account value as of the For the
date we receive satisfactory proof of death and all information and purposes of
forms necessary to effect payment. determining
the death
benefit under
your
Retirement
Cornerstone(R)
Series E
contract, we
treat your
Investment
account and
any Guaranteed
minimum death
benefit funded
by your
Protected
Benefit
account
differently.
The death
benefit in
connection
with your
Investment
account is
equal to your
Investment
account value
as of the date
we receive
satisfactory
proof of
death, any
required
instructions
for the method
of payment,
and any
required
information
and forms
necessary to
effect
payment. The
death benefit
payable in
connection
with your
Protected
Benefit
account will
be based on
the greater of
(i) your
Protected
Benefit
account value,
and (ii) the
benefit base
of your
Guaranteed
minimum death
benefit.
---------------------------------------------------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable No Additional
Charge/4/: Charge*
*PLEASE BE
ADVISED THAT
THE RETURN OF
PRINCIPAL
DEATH BENEFIT
DOES NOT HAVE
AN ADDITIONAL
CHARGE, BUT
THIS
GUARANTEED
BENEFIT MUST
BE ELECTED IN
COMBINATION
WITH THE
GUARANTEED
MINI-MUM
INCOME
BENEFIT, WHICH
DOES HAVE A
CHARGE.
---------------------------------------------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable 0.35% (current
Benefit Charge/4/: and maximum)
---------------------------------------------------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable 1.15% (current)
Charge/4/: 2.30% (maximum)
---------------------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard Death Benefit Not Applicable 0.90% (current)
Charge/4/: 1.80% (maximum)
---------------------------------------------------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable 1.15% (current)
Benefit Charge/4/: 2.30% (maximum)
---------------------------------------------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed No 1%
Interest Rate in the Guaranteed
Interest Option:
---------------------------------------------------------------------------------------------------------------------------------
Loan Features (if your Yes No
employer's plan permits):
---------------------------------------------------------------------------------------------------------------------------------
</R>
X-10
APPENDIX X: EXCHANGE PROGRAM
<R>
------------------------------------------------------------------------------------------
PRIOR NEW CONTRACT
CONTRACTS
------------------------------------------------------------------------------------------
RETIREMENT
ACCUMULATOR(R) CORNERSTONE(R)
ELITE/SM/ SERIES E
(YEAR
2001)
------------------------------------------------------------------------------------------
Fixed Maturity Options/5/: Yes No
------------------------------------------------------------------------------------------
Variable Investment Options with Not 7
your Protected Benefit Account/6/: Applicable Various Classes
------------------------------------------------------------------------------------------
Variable Investment Options with 28 109
your Investment Account/6/: Various Classes
------------------------------------------------------------------------------------------
Sources of Permitted Subsequent . Full . Full exchange,
Contributions or rollover or
partial direct transfer
exchange, from a Prior
rollover Contract
or
direct
transfer
from
another
annuity
contract
or
other
eligible
investment
. After
tax
check
------------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the administrative charge for that year.
/3./ During the first two contract years this charge, if applicable, is equal
to the lesser of $30 or 2% of your Total account value. Thereafter, the
charge, if applicable, is $30 for each contract year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-11
APPENDIX X: EXCHANGE PROGRAM
C. EQUI-VEST(R) (SERIES 100-500 THROUGH SERIES 801)
<R>
------------------------------------------------------------------------------------------------------------------------------------
PRIOR NEW
CONTRACTS CONTRACT
------------------------------------------------------------------------------------------------------------------------------------
EQUI-VEST(R) (SERIES 100-500)/1/ RETIREMENT
EQUI-VEST(R) CORNERSTONE(R)
(SERIES SERIES E
201)/1/
EMPLOYER-SPONSORED
RETIREMENT
PLANS
------------------------------------------------------------------------------------------------------------------------------------
Annual Administrative Series 100 and 200 The lesser of $30 or If $30 If $30
Charge: Series 300, 400 and 500/2/ 2% of your account your (current) your $0
value, plus any total $65 account
amounts previously account (maximum) value
withdrawn during the value $0 on a
contract year. on contract
$30 (current) the date
$65 (maximum) last anniversary
day is
of less
your than
contract $50,000/3,4/.
year If
is your
less account
than value
$25,000/3,4/. on a
If contract
your date
total anniversary
account is
value $50,000
on or
the more/4/.
last
day
of
your
contract
year
is
$25,000
or
more;
or
if
the
total
account
values
of
all
EQUI-VEST(R)
contracts,
owned
by
the
same
person,
when
added
together,
exceeds
$100,
000/4/.
------------------------------------------------------------------------------------------------------------------------------------
Total Separate Account Annual 1.34%-2.00% 1.20% 1.30%
Expenses:
------------------------------------------------------------------------------------------------------------------------------------
Death Benefit: The death benefit is equal to the return of your The For the
account value as of the date we receive satisfactory greater purposes
proof of death and all information and forms of: (i) of
necessary to effect payment. your determining
account the death
value, benefit
less any under your
outstanding Retirement
loan Cornerstone(R)
balance Series E
plus contract,
accrued we treat
interest your
as of the Investment
date we account
receive and any
satisfactory Guaranteed
proof of minimum
death, any death
required benefit
instructions, funded by
information your
and forms Protected
necessary Benefit
to effect account
payment; differently.
and (ii) The death
your total benefit in
contributions, connection
adjusted with your
for Investment
withdrawals account is
and any equal to
withdrawal your
charges Investment
and any account
taxes that value as
may apply, of the
less any date we
outstanding receive
loan satisfactory
balance proof of
plus death, any
accrued required
interest. instructions
for the
method of
payment,
and any
required
information
and forms
necessary
to effect
payment.
The death
benefit
payable in
connection
with your
Protected
Benefit
account
will be
based on
the
greater of
(i) your
Protected
Benefit
account
value, and
(ii) the
benefit
base of
your
Guaranteed
minimum
death
benefit.
------------------------------------------------------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable Not No
Charge/5/: Applicable Additional
Charge*
*PLEASE BE
ADVISED
THAT THE
RETURN OF
PRINCIPAL
DEATH
BENEFIT
DOES NOT
HAVE AN
ADDITIONAL
CHARGE,
BUT THIS
GUARANTEED
BENEFIT
MUST BE
ELECTED IN
COMBINATION
WITH THE
GUARANTEED
MINIMUM
INCOME
BENEFIT,
WHICH DOES
HAVE A
CHARGE.
------------------------------------------------------------------------------------------------------------------------------------
</R>
<R>
-------------------
NEW
CONTRACT
-------------------------------------------
RETIREMENT
EQUI-VEST(R) CORNERSTONE(R)
(SERIES SERIES E
201)/1/
EMPLOYER-SPONSORED
RETIREMENT
PLANS
-------------------------------------------
If $30 If $30
your (current) your $0
total $65 account
account (maximum) value
value $0 on a
on contract
the date
last anniversary
day is
of less
your than
contract $50,000/3,4/.
year If
is your
less account
than value
$25,000/3,4/. on a
If contract
your date
total anniversary
account is
value $50,000
on or
the more/4/.
last
day
of
your
contract
year
is
$25,000
or
more;
or
if
the
total
account
values
of
all
EQUI-VEST(R)
contracts,
owned
by
the
same
person,
when
added
together,
exceeds
$100,
000/4/.
-------------------------------------------
1.20% 1.30%
-------------------------------------------
The For the
greater purposes
of: (i) of
your determining
account the death
value, benefit
less any under your
outstanding Retirement
loan Cornerstone(R)
balance Series E
plus contract,
accrued we treat
interest your
as of the Investment
date we account
receive and any
satisfactory Guaranteed
proof of minimum
death, any death
required benefit
instructions, funded by
information your
and forms Protected
necessary Benefit
to effect account
payment; differently.
and (ii) The death
your total benefit in
contributions, connection
adjusted with your
for Investment
withdrawals account is
and any equal to
withdrawal your
charges Investment
and any account
taxes that value as
may apply, of the
less any date we
outstanding receive
loan satisfactory
balance proof of
plus death, any
accrued required
interest. instructions
for the
method of
payment,
and any
required
information
and forms
necessary
to effect
payment.
The death
benefit
payable in
connection
with your
Protected
Benefit
account
will be
based on
the
greater of
(i) your
Protected
Benefit
account
value, and
(ii) the
benefit
base of
your
Guaranteed
minimum
death
benefit.
-------------------------------------------
Not No
Applicable Additional
Charge*
*PLEASE BE
ADVISED
THAT THE
RETURN OF
PRINCIPAL
DEATH
BENEFIT
DOES NOT
HAVE AN
ADDITIONAL
CHARGE,
BUT THIS
GUARANTEED
BENEFIT
MUST BE
ELECTED IN
COMBINATION
WITH THE
GUARANTEED
MINIMUM
INCOME
BENEFIT,
WHICH DOES
HAVE A
CHARGE.
-------------------------------------------
</R>
X-12
APPENDIX X: EXCHANGE PROGRAM
<R>
-----------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW
CONTRACT
-----------------------------------------------------------------------------------------
EQUI-VEST(R) EQUI-VEST(R) RETIREMENT
(SERIES (SERIES CORNERSTONE(R)
100-500)/1/ 201)/1/ SERIES E
EMPLOYER-SPONSORED
RETIREMENT
PLANS
-----------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Not 0.35%
Benefit Charge/5/: Applicable Applicable (current
and
maximum)
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Not 1.15%
Charge/5/: Applicable Applicable (current)
2.30%
(maximum)
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
RMD Wealth Guard Death Benefit Not Not 0.90%
Charge/5/: Applicable Applicable (current)
1.80%
(maximum)
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Not 1.15%
Benefit Charge/5/: Applicable Applicable (current)
2.30%
(maximum)
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed 1%-3% 1%-1.5% 1%
Interest Rate in the Guaranteed
Interest Option:
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Fixed Maturity Options/6/: Yes No No
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Loan Features (if your No Yes No
employer's plan permits):
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Variable Investment Options with Not Not 7
your Protected Benefit Account/7/: Applicable Applicable Various
Classes
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Variable Investment Options with 99 98 109
your Investment Account/7/: Various Various Various
classes classes classes
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Sources of Permitted Subsequent . Full or . Full . Full
Contributions partial or exchange,
exchange, partial rollover
rollover rollover or
or or direct
direct direct transfer
transfer transfer from
from from a
another another Prior
annuity annuity Contract
contract contract
or or
other other
eligible eligible
investment investment
. After .
tax Payroll
check contribution
-----------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ For the EQUI-VEST(R) series 300, 400 and 500 contracts, during the first
two contract years this charge, if it applies, is equal to the lesser of
$30 or 2% of your Total account value, plus any amounts previously
withdrawn during the contract year. Thereafter, the charge is $30 for each
contract year.
/3./ For the EQUI-VEST(R) Series 201 contract, during the first two contract
years this charge, if applicable, is equal to the lesser of $30 or 2% of
your Total account value. For the Retirement Cornerstone(R) Series E
contract, during the first two contract years this charge, if applicable,
is equal to the lesser of $30 or 2% of your Total account value.
Thereafter, the charge, if applicable, is $30 for each contract year.
<R>
/4./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
/5./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/6./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/7./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-13
APPENDIX X: EXCHANGE PROGRAM
C. EQUI-VEST(R) (SERIES 100-500 THROUGH SERIES 801)
<R>
----------------------------------------------------------------------------------------------
PRIOR CONTRACTS
----------------------------------------------------------------------------------------------
EQUI-VEST(R) EXPRESS/SM/ (SERIES 700)/1/
----------------------------------------------------------------------------------------------
Annual Administrative Charge: If your total account value $30 (current) $50
on the last day of your $65 (maximum) $0
contract year is less than
$25,000 for NQ contracts
(or less than $20,000 for
IRA contracts)/2/.
If your total account value $0
on the last day of your
contract year is $25,000 or
more for NQ contracts (or
$20,000 or more for IRA
contracts).
-------------------------------------------------------------------------------------------------------------------
Total Separate Account Annual 0.95% - 2.00%
Expenses:
----------------------------------------------------------------------------------------------
Death Benefit: The death benefit is equal to the return of your account
value as of the date we receive satisfactory proof of the
annuitant's death and all information and forms necessary
to effect payment.
----------------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable
Charge/4/:
----------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable
Benefit Charge/4/:
----------------------------------------------------------------------------------------------
</R>
<R>
-------------------------------------------------------------------------------------------------------
NEW CONTRACT
-------------------------------------------------------------------------------------------------------
EQUI-VEST(R) RETIREMENT
EXPRESS/SM/ (SERIES CORNERSTONE(R)
701)/1/ SERIES E
-------------------------------------------------------------------------------------------------------
$30 (current) If your total account value on $50 If your account value on a $30
$65 (maximum) the last day of your contract $0 contract date anniversary is $0
year is less than $100,000. less than $50,000/2,3/.
If your total account value on If your account value on a
the last day of your contract contract date anniversary is
year is $100,000 or more. $50,000 or more/3/.
$0
-----------------------------------------------------------------------------------------------------------------------------
1.10% 1.30%
-------------------------------------------------------------------------------------------------------
The death benefit is equal to the return of your For the purposes of determining the death benefit
account value as of the date we receive under your Retirement Cornerstone(R) Series E
satisfactory proof of the annuitant's death and all contract, we treat your Investment account and
information and forms necessary to effect payment. any Guaranteed minimum death benefit funded by
your Protected Benefit account differently.
The death benefit in connection with your
Investment account is equal to your Investment
account value as of the date we receive
satisfactory proof of death, any required
instructions for the method of payment, and any
required information and forms necessary to
effect payment. The death benefit payable in
connection with your Protected Benefit account
will be based on the greater of (i) your
Protected Benefit account value, and (ii) the
benefit base of your Guaranteed minimum death
benefit.
-------------------------------------------------------------------------------------------------------
Not Applicable No Additional Charge*
*PLEASE BE ADVISED THAT THE RETURN OF PRINCIPAL
DEATH BENEFIT DOES NOT HAVE AN ADDITIONAL CHARGE,
BUT THIS GUARANTEED BENEFIT MUST BE ELECTED IN
COMBINATION WITH THE GUARANTEED MINIMUM INCOME
BENEFIT, WHICH DOES HAVE A CHARGE.
-------------------------------------------------------------------------------------------------------
Not Applicable 0.35% (current and maximum)
-------------------------------------------------------------------------------------------------------
</R>
X-14
APPENDIX X: EXCHANGE PROGRAM
<R>
------------------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW CONTRACT
------------------------------------------------------------------------------------------------------------------------------
EQUI-VEST(R) EQUI-VEST(R) EXPRESS/SM/ RETIREMENT
EXPRESS/SM/ (SERIES 701)/1/ CORNERSTONE(R)
(SERIES 700)/1/ SERIES E
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Not Not Applicable 1.15% (current)
"Greater Applicable 2.30% (maximum)
of"
Death
Benefit
Charge/4/:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
RMD Not Not Applicable 0.90% (current)
Wealth Applicable 1.80% (maximum)
Guard
Death
Benefit
Charge/4/:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Not Not Applicable 1.15% (current)
Guaranteed Applicable 2.30% (maximum)
Minimum
Income
Benefit
Charge/4/:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
No No 1%
Lifetime
Minimum
Guaranteed
Interest
Rate
in
the
Guaranteed
Interest
Option:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Yes No No
Fixed
Maturity
Options/5/:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Loan No No No
Features
(if
your employer's
plan
permits):
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Not Not Applicable 7
Variable Applicable Various Classes
Investment
Options
with
your
Protected
Benefit
Account/6/:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
99 99 109
Variable Various Various classes Various Classes
Investment classes
Options
with
your
Investment
Account/6/:
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
. Full or . Full or partial . Full exchange,
Sources partial exchange, rollover or rollover or direct
of exchange, direct transfer from transfer from a
Permitted rollover another annuity Prior Contract
Subsequent or contract or other
Contributions direct eligible investment
transfer . After tax check
from
another
annuity
contract
or
other
eligible
investment
. After
tax
check
------------------------------------------------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ For the EQUI-VEST(R) Express/SM/ Series 700 contract, during the first two
contract years this charge, if applicable, is equal to the lesser of $30
or 2% of your Total account value plus any prior withdrawals during the
contract year. For the Retirement Cornerstone(R) Series E contract, during
the first two contract years this charge, if applicable, is equal to the
lesser of $30 or 2% of your Total account value. Thereafter, the charge,
if applicable, is $30 for each contract year.
/3./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-15
APPENDIX X: EXCHANGE PROGRAM
C. EQUI-VEST(R) (SERIES 100-500 THROUGH SERIES 801)
<R>
---------------------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
EQUI-VEST(R) (SERIES 800)/1/
EQUI-VEST(R)
(SERIES
801)/1/
---------------------------------------------------------------------------------------------------------------------------------
Annual Administrative Charge: If your total account value on the $30 If your total account value on the $50
last day of your contract year is (current) last day of your contract year is $0
less than $25,000 for NQ $65 less than $100,000.
contracts (or less than $20,000 (maximum) If your total account value on the
for IRA contracts)/2/. $0 last day of your contract year is
If your total account value on the $100,000 or more.
last day of your contract year is
$25,000 or more for NQ contracts
(or $20,000 or more for IRA
contracts).
---------------------------------------------------------------------------------------------------------------------------------
Total Separate Account Annual 1.20%-2.00% 1.25%
Expenses:
---------------------------------------------------------------------------------------------------------------------------------
Death Benefit: The death benefit is equal to the return of The death benefit is equal to the return of
your account value as of the date we receive your account value as of the date we receive
satisfactory proof of the annuitant's death satisfactory proof of the annuitant's death
and all information and forms necessary to and all information and forms necessary to
effect payment. effect payment.
---------------------------------------------------------------------------------------------------------------------------------
Return of Principal Death Benefit Not Applicable Not Applicable
Charge/4/:
---------------------------------------------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable Not Applicable
Benefit Charge/4/:
---------------------------------------------------------------------------------------------------------------------------------
</R>
<R>
---------------------------------------------
NEW
CONTRACT
--------------------------------------------------------
RETIREMENT
CORNERSTONE(R)
SERIES E
--------------------------------------------------------
$30 $50 If your account value on a $30
(current) $0 contract date anniversary is less $0
$65 than $50,000/2,3/.
(maximum) If your account value on a
$0 contract date anniversary is
$50,000 or more/3/.
-------------------------------------------------------------------
1.30%
---------------------------------------------
For the purposes of determining the death
benefit under your Retirement Cornerstone(R)
Series E contract, we treat your Investment
account and any Guaranteed minimum death
benefit funded by your Protected Benefit
account differently.
The death benefit in connection with your
Investment account is equal to your
Investment account value as of the date we
receive satisfactory proof of death, any
required instructions for the method of
payment, and any required information and
forms necessary to effect payment. The death
benefit payable in connection with your
Protected Benefit account will be based on
the greater of (i) your Protected Benefit
account value, and (ii) the benefit base of
your Guaranteed minimum death benefit.
---------------------------------------------
No Additional Charge*
*PLEASE BE ADVISED THAT THE RETURN OF
PRINCIPAL DEATH BENEFIT DOES NOT HAVE AN
ADDITIONAL CHARGE, BUT THIS GUARANTEED
BENEFIT MUST BE ELECTED IN COMBINATION WITH
THE GUARANTEED MINIMUM INCOME BENEFIT, WHICH
DOES HAVE A CHARGE.
---------------------------------------------
0.35% (current and maximum)
---------------------------------------------
</R>
X-16
APPENDIX X: EXCHANGE PROGRAM
<R>
---------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW
CONTRACT
----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------
EQUI-VEST(R) (SERIES 800)/1/ RETIREMENT
EQUI-VEST(R) CORNERSTONE(R)
(SERIES SERIES E
801)/1/
---------------------------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable Not Applicable 1.15%
Charge/4/: (current)
2.30%
(maximum)
---------------------------------------------------------------------------------------------------------
RMD Wea lth Guard Death Not Applicable Not Applicable 0.90%
Benefit Charge/4/: (current)
1.80%
(maximum)
---------------------------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable Not Applicable 1.15%
Benefit Charge/4/: (current)
2.30%
(maximum)
---------------------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed 1%-3% 1%-3% 1%
Interest Rate in the Guaranteed
Interest Option:
---------------------------------------------------------------------------------------------------------
Fixed Maturity Options/5/: Yes No No
---------------------------------------------------------------------------------------------------------
Loan Features (if your No No No
employer's plan permits):
---------------------------------------------------------------------------------------------------------
Variable Investment Options Not Applicable Not Applicable 7
with your Protected Benefit Various
Account/6/: Classes
---------------------------------------------------------------------------------------------------------
Variable Investment Options 99 104 109
with your Investment Account/6/: Various Various Various
Classes Classes Classes
---------------------------------------------------------------------------------------------------------
Sources of Permitted . Full or . Full or . Full
Subsequent Contributions partial partial exchange,
exchange, exchange, rollover
rollover rollover or direct
or direct or direct transfer
transfer transfer from a
from from Prior
another another Contract
annuity annuity
contract contract
or other or other
eligible eligible
investment investment
. After tax . After tax
check check
---------------------------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ For EQUI-VEST(R) Series 800 contract, during the first two contract years
this charge, if applicable, is equal to the lesser of $30 or 2% of your
Total account value plus any prior withdrawals during the contract year.
For the Retirement Cornerstone(R) Series E contract, during the first two
contract years this charge, if applicable, is equal to the lesser of $30
or 2% of your Total account value. Thereafter, the charge, if applicable,
is $30 for each contract year.
/3./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
<R>
/4./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/5./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/6./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-17
APPENDIX X: EXCHANGE PROGRAM
C. EQUI-VEST(R) (SERIES 100-500 THROUGH SERIES 801)
<R>
---------------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW CONTRACT
---------------------------------------------------------------------------------------------------------------------------
EQUI-VEST(R) (SERIES RETIREMENT
EQUI-VEST(R) TSA ADVANTAGE/SM/ 100-400)/1/ CORNERSTONE(R)
(SERIES 600)/1/ EMPLOYER-SPONSORED SERIES E
RETIREMENT PLANS
---------------------------------------------------------------------------------------------------------------------------
Annual Administrative Charge: The lesser of a Series The If your $30
current charge of $30 100 and lesser of account $0
(maximum charge $65) 200/2/ $30 or 2% value on
or 2% of your account Series of your a contract
value, less any 300 and account date
amount previously 400/2,3/ value, anniversary
withdrawn during the plus any is less
contract year. prior than
withdrawals $50,000/3,4/.
during If your
the account
contract value on
year. a contract
$30 date
(current) anniversary
$65 is
(maximum) $50,000
or
more/4/.
---------------------------------------------------------------------------------------------------------------------------
Total Separate Account Annual 1.20% - 2.00% 1.34% - 2.00% 1.30%
Expenses:
---------------------------------------------------------------------------------------------------------------------------
Death Benefit: The greater of: (i) The greater of: (i) For the purposes of
your account value, your account value, determining the
less any outstanding less any outstanding death benefit under
loan balance plus loan balance plus your Retirement
accrued interest as accrued interest as Cornerstone(R)
of the date we of the date we Series E contract,
receive satisfactory receive satisfactory we treat your
proof of death, any proof of death, any Investment account
required required and any Guaranteed
instructions, instructions, minimum death
in-formation and in-formation and benefit funded by
forms necessary to forms necessary to your Protected
effect payment; and effect payment; and Benefit account
(ii) your total (ii) your total differently.
contributions, contributions, The death benefit in
adjusted for adjusted for connection with your
withdrawals and any withdrawals and any Investment account
withdrawal charges withdrawal charges is equal to your
and any taxes that and any taxes that Investment account
may apply, less any may apply, less any value as of the date
outstanding loan outstanding loan we receive
balance plus accrued balance plus accrued satisfactory proof
interest. interest. of death, any
re-quired
instructions for the
method of payment,
and any required
information and
forms necessary to
effect pay-ment. The
death benefit
payable in
connection with your
Protected Benefit
account will be
based on the greater
of (i) your
Protected Benefit
account value, and
(ii) the benefit
base of your
Guaranteed minimum
death benefit.
---------------------------------------------------------------------------------------------------------------------------
Return of Principal Death Not Applicable Not Applicable No Additional Charge*
Benefit Charge/5/: *PLEASE BE ADVISED
THAT THE RETURN OF
PRINCIPAL DEATH
BENEFIT DOES NOT
HAVE AN ADDITIONAL
CHARGE, BUT THIS
GUARANTEED BENEFIT
MUST BE ELECTED IN
COMBINATION WITH THE
GUARANTEED MINIMUM
INCOME BENEFIT,
WHICH DOES HAVE A
CHARGE.
---------------------------------------------------------------------------------------------------------------------------
Highest Anniversary Value Death Not Applicable Not Applicable 0.35% (current and
Benefit Charge/5/: maximum)
---------------------------------------------------------------------------------------------------------------------------
"Greater of" Death Benefit Not Applicable Not Applicable 1.15% (current)
Charge/5/: 2.30% (maximum)
---------------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard Death Bene- Not Applicable Not Applicable 0.90% (current)
fit Charge/5/: 1.80% (maximum)
---------------------------------------------------------------------------------------------------------------------------
Guaranteed Minimum Income Not Applicable Not Applicable 1.15% (current)
Benefit Charge/5/: 2.30% (maximum)
---------------------------------------------------------------------------------------------------------------------------
</R>
X-18
APPENDIX X: EXCHANGE PROGRAM
<R>
---------------------------------------------------------------------------------------------------------------------------------
PRIOR CONTRACTS NEW CONTRACT
---------------------------------------------------------------------------------------------------------------------------------
EQUI-VEST(R) (SERIES RETIREMENT
EQUI-VEST(R) TSA ADVANTAGE/SM/ 100-400)/1/ CORNERSTONE(R)
(SERIES 600)/1/ EMPLOYER-SPONSORED SERIES E
RETIREMENT PLANS
---------------------------------------------------------------------------------------------------------------------------------
Lifetime Minimum Guaranteed 1% - 3% 1% - 4% 1%
Interest Rate in the Guaranteed
Interest Option:
---------------------------------------------------------------------------------------------------------------------------------
Fixed Maturity Options/6/: Yes Yes No
---------------------------------------------------------------------------------------------------------------------------------
Loan Features (if your Yes Yes No
employer's plan permits):
---------------------------------------------------------------------------------------------------------------------------------
Variable Investment Options with Not Applicable Not Applicable 7
your Protected Benefit Account/7/: Various Classes
---------------------------------------------------------------------------------------------------------------------------------
Variable Investment Options with 99 99 109
your Investment Account/7/: Various Classes Various Classes Various Classes
---------------------------------------------------------------------------------------------------------------------------------
Sources of Permitted Subsequent . Full or . Full or partial . Full exchange,
Contributions partial rollover or rollover or
rollover direct transfer direct transfer
or direct from another from a Prior
transfer annuity contract Contract
from or other
another eligible
annuity investment
contract . Payroll
or other contribution
eligible
investment
. Payroll
contribution
---------------------------------------------------------------------------------------------------------------------------------
</R>
/1./ If you elected a Guaranteed benefit under a Prior Contract, you would not
be eligible for the exchange program. Therefore, in the column for "Prior
Contracts", Guaranteed benefits are either not reflected or categorized as
"Not Applicable".
/2./ Depending on your Employer's plan, we may be instructed to withdraw a plan
operating expense charge from your account value for administrative and
record-keeping services related to the contract. The charge is determined
through an arrangement between your Employer and a third party. We will
remit the amount withdrawn to either your Employer or your Employer's
designee. Please refer to your contract for more information.
/3./ For EQUI-VEST(R) Employer Sponsored Plans Series 300-400 contracts, during
the first two contract years, this charge, if it applies, is equal to the
lesser of $30 or 2% of your Total account value plus any amount previously
withdrawn during the contract year. Thereafter, the charge is $30 for each
contract year. For the Retirement Cornerstone(R) Series E contract, during
the first two contract years this charge, if applicable, is equal to the
lesser of $30 or 2% of your Total account value. Thereafter, the charge,
if applicable, is $30 for each contract year.
/4./ If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
<R>
/5./ The Return of Principal death benefit and the "Greater of" death benefit
can only be elected in combination with the GMIB. The Highest Anniversary
Value death benefit can be elected with or without selecting the GMIB. If
you elect the GMIB and do not elect a guaranteed minimum death benefit,
you will automatically receive the Return of Principal death benefit. The
RMD Wealth Guard death benefit cannot be elected in combination with the
GMIB. Please see "Retirement Cornerstone(R) Series E at a glance - key
features" in the Retirement Cornerstone(R) Series E Prospectus for more
information related to these guaranteed benefits.
/6./ Fixed Maturity Options offer a fixed rate of interest if held to maturity.
Fixed Maturity Options generally have maturity dates that range from one
to ten years. Withdrawals or transfers from a Fixed Maturity Option prior
to maturity may be subject to market value adjustment, which may increase
or decrease the account value. See "fixed maturity options" in your
Prospectus for more information.
/7./ The number of investment options available under a particular contract is
subject to change. Please refer to your Prospectus for more information on
investment options available under your contract.
</R>
X-19
APPENDIX X: EXCHANGE PROGRAM
Appendix XI: Condensed financial information
--------------------------------------------------------------------------------
<R>
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account No. 70 with the same daily asset charges of
1.30%.
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014.
</R>
<R>
--------------------------------------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
--------------------------------------------------------------------------------------------
7TWELVE/TM/ BALANCED PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 10.98
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,675
--------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE-ALT 25
--------------------------------------------------------------------------------------------
Unit value $ 11.23
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 350
--------------------------------------------------------------------------------------------
ALL ASSET GROWTH-ALT 20
--------------------------------------------------------------------------------------------
Unit value $ 13.91
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 628
--------------------------------------------------------------------------------------------
ALL ASSET MODERATE GROWTH-ALT 15
--------------------------------------------------------------------------------------------
Unit value $ 10.78
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 662
--------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VPS INTERNATIONAL GROWTH PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 11.54
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 505
--------------------------------------------------------------------------------------------
AMERICAN CENTURY VP MID CAP VALUE FUND
--------------------------------------------------------------------------------------------
Unit value $ 20.38
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,354
--------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) BOND FUND/SM/
--------------------------------------------------------------------------------------------
Unit value $ 10.07
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 627
--------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL CAPITALIZATION FUND/SM/
--------------------------------------------------------------------------------------------
Unit value $ 11.75
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 326
--------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)
--------------------------------------------------------------------------------------------
Unit value $ 9.82
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 960
--------------------------------------------------------------------------------------------
AXA AGGRESSIVE STRATEGY
--------------------------------------------------------------------------------------------
Unit value $ 13.39
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 78,119
--------------------------------------------------------------------------------------------
AXA BALANCED STRATEGY
--------------------------------------------------------------------------------------------
Unit value $ 13.08
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 91,852
--------------------------------------------------------------------------------------------
</R>
XI-1
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
-----------------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
-----------------------------------------------------------------------
AXA CONSERVATIVE GROWTH STRATEGY
-----------------------------------------------------------------------
Unit value $ 12.47
-----------------------------------------------------------------------
Number of units outstanding (000's) 48,006
-----------------------------------------------------------------------
AXA CONSERVATIVE STRATEGY
-----------------------------------------------------------------------
Unit value $ 11.31
-----------------------------------------------------------------------
Number of units outstanding (000's) 29,801
-----------------------------------------------------------------------
AXA GROWTH STRATEGY
-----------------------------------------------------------------------
Unit value $ 14.35
-----------------------------------------------------------------------
Number of units outstanding (000's) 91,406
-----------------------------------------------------------------------
AXA INTERNATIONAL CORE MANAGED VOLATILITY
-----------------------------------------------------------------------
Unit value $ 11.02
-----------------------------------------------------------------------
Number of units outstanding (000's) 263
-----------------------------------------------------------------------
AXA LARGE CAP VALUE MANAGED VOLATILITY
-----------------------------------------------------------------------
Unit value $ 17.75
-----------------------------------------------------------------------
Number of units outstanding (000's) 240
-----------------------------------------------------------------------
AXA MODERATE ALLOCATION
-----------------------------------------------------------------------
Unit value $ 12.93
-----------------------------------------------------------------------
Number of units outstanding (000's) 4,693
-----------------------------------------------------------------------
AXA MODERATE GROWTH STRATEGY
-----------------------------------------------------------------------
Unit value $ 13.71
-----------------------------------------------------------------------
Number of units outstanding (000's) 202,854
-----------------------------------------------------------------------
AXA ULTRA CONSERVATIVE STRATEGY
-----------------------------------------------------------------------
Unit value $ 10.23
-----------------------------------------------------------------------
Number of units outstanding (000's) 155
-----------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH
-----------------------------------------------------------------------
Unit value $ 16.63
-----------------------------------------------------------------------
Number of units outstanding (000's) 561
-----------------------------------------------------------------------
BLACKROCK GLOBAL ALLOCATION V.I. FUND
-----------------------------------------------------------------------
Unit value $ 12.87
-----------------------------------------------------------------------
Number of units outstanding (000's) 3,721
-----------------------------------------------------------------------
BLACKROCK LARGE CAP GROWTH V.I. FUND
-----------------------------------------------------------------------
Unit value $ 19.80
-----------------------------------------------------------------------
Number of units outstanding (000's) 900
-----------------------------------------------------------------------
CHARTER/SM/ SMALL CAP VALUE
-----------------------------------------------------------------------
Unit value $ 17.06
-----------------------------------------------------------------------
Number of units outstanding (000's) 242
-----------------------------------------------------------------------
CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH PORTFOLIO
-----------------------------------------------------------------------
Unit value $ 10.63
-----------------------------------------------------------------------
Number of units outstanding (000's) 641
-----------------------------------------------------------------------
</R>
XI-2
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
---------------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
---------------------------------------------------------------------
CLEARBRIDGE VARIABLE EQUITY INCOME PORTFOLIO
---------------------------------------------------------------------
Unit value $ 10.59
---------------------------------------------------------------------
Number of units outstanding (000's) 160
---------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN DYNAMIC WEALTH STRATEGIES
---------------------------------------------------------------------
Unit value $ 12.00
---------------------------------------------------------------------
Number of units outstanding (000's) 103,758
---------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN SMALL CAP GROWTH
---------------------------------------------------------------------
Unit value $ 22.11
---------------------------------------------------------------------
Number of units outstanding (000's) 739
---------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE EQUITY
---------------------------------------------------------------------
Unit value $ 18.22
---------------------------------------------------------------------
Number of units outstanding (000's) 3,867
---------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY INCOME
---------------------------------------------------------------------
Unit value $ 18.56
---------------------------------------------------------------------
Number of units outstanding (000's) 682
---------------------------------------------------------------------
EQ/COMMON STOCK INDEX
---------------------------------------------------------------------
Unit value $ 19.43
---------------------------------------------------------------------
Number of units outstanding (000's) 630
---------------------------------------------------------------------
EQ/CORE BOND INDEX
---------------------------------------------------------------------
Unit value $ 10.70
---------------------------------------------------------------------
Number of units outstanding (000's) 14,262
---------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY PLUS
---------------------------------------------------------------------
Unit value $ 8.92
---------------------------------------------------------------------
Number of units outstanding (000's) 135
---------------------------------------------------------------------
EQ/EQUITY 500 INDEX
---------------------------------------------------------------------
Unit value $ 19.20
---------------------------------------------------------------------
Number of units outstanding (000's) 2,626
---------------------------------------------------------------------
EQ/GAMCO MERGERS AND ACQUISITIONS
---------------------------------------------------------------------
Unit value $ 12.64
---------------------------------------------------------------------
Number of units outstanding (000's) 459
---------------------------------------------------------------------
EQ/GAMCO SMALL COMPANY VALUE
---------------------------------------------------------------------
Unit value $ 21.56
---------------------------------------------------------------------
Number of units outstanding (000's) 4,915
---------------------------------------------------------------------
EQ/HIGH YIELD BOND
---------------------------------------------------------------------
Unit value $ 10.59
---------------------------------------------------------------------
Number of units outstanding (000's) 308
---------------------------------------------------------------------
EQ/INTERMEDIATE GOVERNMENT BOND
---------------------------------------------------------------------
Unit value $ 10.25
---------------------------------------------------------------------
Number of units outstanding (000's) 6,321
---------------------------------------------------------------------
</R>
XI-3
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
------------------------------------------------------------
EQ/INTERNATIONAL EQUITY INDEX
------------------------------------------------------------
Unit value $11.43
------------------------------------------------------------
Number of units outstanding (000's) 614
------------------------------------------------------------
EQ/INVESCO COMSTOCK
------------------------------------------------------------
Unit value $18.91
------------------------------------------------------------
Number of units outstanding (000's) 827
------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX
------------------------------------------------------------
Unit value $19.80
------------------------------------------------------------
Number of units outstanding (000's) 654
------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX
------------------------------------------------------------
Unit value $19.03
------------------------------------------------------------
Number of units outstanding (000's) 445
------------------------------------------------------------
EQ/MFS INTERNATIONAL GROWTH
------------------------------------------------------------
Unit value $12.71
------------------------------------------------------------
Number of units outstanding (000's) 797
------------------------------------------------------------
EQ/MID CAP INDEX
------------------------------------------------------------
Unit value $20.54
------------------------------------------------------------
Number of units outstanding (000's) 873
------------------------------------------------------------
EQ/MONEY MARKET
------------------------------------------------------------
Unit value $ 9.36
------------------------------------------------------------
Number of units outstanding (000's) 2,305
------------------------------------------------------------
EQ/MORGAN STANLEY MID CAP GROWTH
------------------------------------------------------------
Unit value $17.56
------------------------------------------------------------
Number of units outstanding (000's) 1,315
------------------------------------------------------------
EQ/NATURAL RESOURCES
------------------------------------------------------------
Unit value $ 8.89
------------------------------------------------------------
Number of units outstanding (000's) 85
------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL
------------------------------------------------------------
Unit value $15.62
------------------------------------------------------------
Number of units outstanding (000's) 1,226
------------------------------------------------------------
EQ/PIMCO GLOBAL REAL RETURN
------------------------------------------------------------
Unit value $ 9.95
------------------------------------------------------------
Number of units outstanding (000's) 236
------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND
------------------------------------------------------------
Unit value $ 9.60
------------------------------------------------------------
Number of units outstanding (000's) 1,378
------------------------------------------------------------
EQ/REAL ESTATE PLUS
------------------------------------------------------------
Unit value $11.15
------------------------------------------------------------
Number of units outstanding (000's) 271
------------------------------------------------------------
</R>
XI-4
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
-----------------------------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
-----------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX
-----------------------------------------------------------------------------------
Unit value $20.38
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 577
-----------------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH STOCK
-----------------------------------------------------------------------------------
Unit value $19.82
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 2,063
-----------------------------------------------------------------------------------
FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO
-----------------------------------------------------------------------------------
Unit value $18.75
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 3,348
-----------------------------------------------------------------------------------
FIDELITY(R) VIP MID CAP PORTFOLIO
-----------------------------------------------------------------------------------
Unit value $18.03
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 1,568
-----------------------------------------------------------------------------------
FIDELITY(R) VIP STRATEGIC INCOME PORTFOLIO
-----------------------------------------------------------------------------------
Unit value $12.32
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 2,133
-----------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME ALLOCATION PORTFOLIO
-----------------------------------------------------------------------------------
Unit value $10.16
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 16
-----------------------------------------------------------------------------------
FIRST TRUST/DOW JONES DIVIDEND & INCOME ALLOCATION PORTFOLIO
-----------------------------------------------------------------------------------
Unit value $12.51
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 432
-----------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS ALLOCATION VIP FUND
-----------------------------------------------------------------------------------
Unit value $14.57
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 703
-----------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND
-----------------------------------------------------------------------------------
Unit value $14.19
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 2,040
-----------------------------------------------------------------------------------
FRANKLIN RISING DIVIDENDS VIP FUND
-----------------------------------------------------------------------------------
Unit value $12.84
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 1,550
-----------------------------------------------------------------------------------
FRANKLIN STRATEGIC INCOME VIP FUND
-----------------------------------------------------------------------------------
Unit value $12.84
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 2,500
-----------------------------------------------------------------------------------
GOLDMAN SACHS VIT MID CAP VALUE FUND
-----------------------------------------------------------------------------------
Unit value $20.29
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 889
-----------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS FUND
-----------------------------------------------------------------------------------
Unit value $10.14
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 118
-----------------------------------------------------------------------------------
</R>
XI-5
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
-------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
-------------------------------------------------------------
HARTFORD GROWTH OPPORTUNITIES HLS FUND
-------------------------------------------------------------
Unit value $10.80
-------------------------------------------------------------
Number of units outstanding (000's) 98
-------------------------------------------------------------
INVESCO V.I. DIVERSIFIED DIVIDEND FUND
-------------------------------------------------------------
Unit value $17.58
-------------------------------------------------------------
Number of units outstanding (000's) 582
-------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND
-------------------------------------------------------------
Unit value $15.68
-------------------------------------------------------------
Number of units outstanding (000's) 2,423
-------------------------------------------------------------
INVESCO V.I. HIGH YIELD FUND
-------------------------------------------------------------
Unit value $11.82
-------------------------------------------------------------
Number of units outstanding (000's) 1,045
-------------------------------------------------------------
INVESCO V.I. INTERNATIONAL GROWTH FUND
-------------------------------------------------------------
Unit value $13.77
-------------------------------------------------------------
Number of units outstanding (000's) 1,681
-------------------------------------------------------------
INVESCO V.I. MID CAP CORE EQUITY FUND
-------------------------------------------------------------
Unit value $15.32
-------------------------------------------------------------
Number of units outstanding (000's) 470
-------------------------------------------------------------
INVESCO V.I. SMALL CAP EQUITY FUND
-------------------------------------------------------------
Unit value $20.18
-------------------------------------------------------------
Number of units outstanding (000's) 253
-------------------------------------------------------------
IVY FUNDS VIP ASSET STRATEGY
-------------------------------------------------------------
Unit value $12.25
-------------------------------------------------------------
Number of units outstanding (000's) 1,962
-------------------------------------------------------------
IVY FUNDS VIP DIVIDEND OPPORTUNITIES
-------------------------------------------------------------
Unit value $16.99
-------------------------------------------------------------
Number of units outstanding (000's) 524
-------------------------------------------------------------
IVY FUNDS VIP ENERGY
-------------------------------------------------------------
Unit value $12.42
-------------------------------------------------------------
Number of units outstanding (000's) 1,315
-------------------------------------------------------------
IVY FUNDS VIP GLOBAL NATURAL RESOURCES
-------------------------------------------------------------
Unit value $ 8.51
-------------------------------------------------------------
Number of units outstanding (000's) 858
-------------------------------------------------------------
IVY FUNDS VIP HIGH INCOME
-------------------------------------------------------------
Unit value $15.58
-------------------------------------------------------------
Number of units outstanding (000's) 4,025
-------------------------------------------------------------
IVY FUNDS VIP MID CAP GROWTH
-------------------------------------------------------------
Unit value $20.34
-------------------------------------------------------------
Number of units outstanding (000's) 1,320
-------------------------------------------------------------
</R>
XI-6
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
-------------------------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
-------------------------------------------------------------------------------
IVY FUNDS VIP SCIENCE AND TECHNOLOGY
-------------------------------------------------------------------------------
Unit value $21.74
-------------------------------------------------------------------------------
Number of units outstanding (000's) 1,445
-------------------------------------------------------------------------------
IVY FUNDS VIP SMALL CAP GROWTH
-------------------------------------------------------------------------------
Unit value $17.46
-------------------------------------------------------------------------------
Number of units outstanding (000's) 605
-------------------------------------------------------------------------------
LAZARD RETIREMENT EMERGING MARKETS EQUITY PORTFOLIO
-------------------------------------------------------------------------------
Unit value $11.06
-------------------------------------------------------------------------------
Number of units outstanding (000's) 3,914
-------------------------------------------------------------------------------
LORD ABBETT SERIES FUND -- BOND DEBENTURE PORTFOLIO
-------------------------------------------------------------------------------
Unit value $12.28
-------------------------------------------------------------------------------
Number of units outstanding (000's) 1,193
-------------------------------------------------------------------------------
MFS(R) INTERNATIONAL VALUE PORTFOLIO
-------------------------------------------------------------------------------
Unit value $15.11
-------------------------------------------------------------------------------
Number of units outstanding (000's) 3,639
-------------------------------------------------------------------------------
MFS(R) INVESTORS GROWTH STOCK SERIES
-------------------------------------------------------------------------------
Unit value $18.56
-------------------------------------------------------------------------------
Number of units outstanding (000's) 410
-------------------------------------------------------------------------------
MFS(R) INVESTORS TRUST SERIES
-------------------------------------------------------------------------------
Unit value $18.11
-------------------------------------------------------------------------------
Number of units outstanding (000's) 259
-------------------------------------------------------------------------------
MFS(R) UTILITIES SERIES
-------------------------------------------------------------------------------
Unit value $18.25
-------------------------------------------------------------------------------
Number of units outstanding (000's) 1,258
-------------------------------------------------------------------------------
MULTIMANAGER AGGRESSIVE EQUITY
-------------------------------------------------------------------------------
Unit value $18.18
-------------------------------------------------------------------------------
Number of units outstanding (000's) 287
-------------------------------------------------------------------------------
MULTIMANAGER MID CAP GROWTH
-------------------------------------------------------------------------------
Unit value $21.49
-------------------------------------------------------------------------------
Number of units outstanding (000's) 330
-------------------------------------------------------------------------------
MULTIMANAGER MID CAP VALUE
-------------------------------------------------------------------------------
Unit value $22.18
-------------------------------------------------------------------------------
Number of units outstanding (000's) 198
-------------------------------------------------------------------------------
NEUBERGER BERMAN ABSOLUTE RETURN MULTI-MANAGER PORTFOLIO
-------------------------------------------------------------------------------
Unit value $ 9.84
-------------------------------------------------------------------------------
Number of units outstanding (000's) 10
-------------------------------------------------------------------------------
NEUBERGER BERMAN INTERNATIONAL EQUITY PORTFOLIO
-------------------------------------------------------------------------------
Unit value $ 9.34
-------------------------------------------------------------------------------
Number of units outstanding (000's) 37
-------------------------------------------------------------------------------
</R>
XI-7
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
<R>
UNIT VALUES AND NUMBER OF UNITS OUTSTANDING AT YEAR END FOR EACH VARIABLE
INVESTMENT OPTION, EXCEPT FOR THOSE OPTIONS BEING OFFERED FOR THE FIRST TIME
AFTER DECEMBER 31, 2014. (CONTINUED)
</R>
<R>
-------------------------------------------------------------------------
FOR THE YEAR ENDING
DECEMBER 31, 2014
-------------------------------------------------------------------------
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO
-------------------------------------------------------------------------
Unit value $ 8.29
-------------------------------------------------------------------------
Number of units outstanding (000's) 1,326
-------------------------------------------------------------------------
PIMCO REAL RETURN PORTFOLIO
-------------------------------------------------------------------------
Unit value $11.43
-------------------------------------------------------------------------
Number of units outstanding (000's) 3,349
-------------------------------------------------------------------------
PIMCO TOTAL RETURN PORTFOLIO
-------------------------------------------------------------------------
Unit value $11.68
-------------------------------------------------------------------------
Number of units outstanding (000's) 6,307
-------------------------------------------------------------------------
PROFUND VP BIOTECHNOLOGY
-------------------------------------------------------------------------
Unit value $32.54
-------------------------------------------------------------------------
Number of units outstanding (000's) 779
-------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
-------------------------------------------------------------------------
Unit value $ 9.61
-------------------------------------------------------------------------
Number of units outstanding (000's) 91
-------------------------------------------------------------------------
QS LEGG MASON DYNAMIC MULTI-STRATEGY VIT PORTFOLIO
-------------------------------------------------------------------------
Unit value $10.05
-------------------------------------------------------------------------
Number of units outstanding (000's) 41
-------------------------------------------------------------------------
T. ROWE PRICE HEALTH SCIENCES PORTFOLIO-II
-------------------------------------------------------------------------
Unit value $32.49
-------------------------------------------------------------------------
Number of units outstanding (000's) 1,356
-------------------------------------------------------------------------
TEMPLETON DEVELOPING MARKETS VIP FUND
-------------------------------------------------------------------------
Unit value $ 9.80
-------------------------------------------------------------------------
Number of units outstanding (000's) 503
-------------------------------------------------------------------------
TEMPLETON GLOBAL BOND VIP FUND
-------------------------------------------------------------------------
Unit value $12.72
-------------------------------------------------------------------------
Number of units outstanding (000's) 5,711
-------------------------------------------------------------------------
VAN ECK VIP GLOBAL HARD ASSETS FUND
-------------------------------------------------------------------------
Unit value $ 9.49
-------------------------------------------------------------------------
Number of units outstanding (000's) 1,980
-------------------------------------------------------------------------
</R>
XI-8
<R>
APPENDIX XI: CONDENSED FINANCIAL INFORMATION
</R>
Statement of additional information
--------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Who is AXA Equitable? 2
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
HOW TO OBTAIN A RETIREMENT CORNERSTONE(R) 15.0 SERIES E STATEMENT OF ADDITIONAL
INFORMATION FOR SEPARATE ACCOUNT NO. 70
Send this request form to:
Retirement Service Solutions
P.O. Box 1547
Secaucus, NJ 07096-1547
------------------------------------------------------------------------------------------------------
Please send me a Retirement Cornerstone(R) 15.0 Series E SAI for SEPARATE ACCOUNT NO. 70
dated May 26, 2015.
------------------------------------------------------------------------------------------------------
Name
------------------------------------------------------------------------------------------------------
Address
------------------------------------------------------------------------------------------------------
City State Zip
<R>
#846860
</R>