Separate Account No. 70 of AXA Equitable Life Insurance
Filed: 25 Jun 15, 12:00am
1290 Avenue of the Americas
New York, NY 10104
Richard Goldberger
Senior Director & Counsel
201-743-7174 (Tel.)
212-314-3959 (Fax)
June 25, 2015
VIA EDGAR
Ms. Deborah Skeens
United States Securities and Exchange Commission
Office of Insurance Products
Division of Investment Management
Mail Stop 8629
Washington, DC 20549-8629
| Re: | AXA Equitable Life Insurance Company |
Correspondence filing related to AXA Equitable’s Post-Effective Amendment No. 4 and Amendment No. 32 (“N-4 Amendment”) to Form N-4 Registration Statement File Nos. 333-190033 and 811-22651 with respect to Separate Account No. 70 of AXA Equitable
Dear Ms. Skeens:
The purpose of this letter is to provide a response to staff comments received on the N-4 Amendment filed by AXA Equitable Life Insurance Company (“the Company”) on May 5, 2015, as provided by telephone on June 8 and June 11, 2015. We first set forth each specific staff comment and then provide our response.
| 1. | Contract Identifier |
Comment: As the filing includes a supplement to the original Investment Edge prospectus, please include the class identifier for that contract in the submission.
Response 1:
The class identifier for the older contract, C000131283, has been added to the submission.
| 2. | Financial Statements, Exhibits and Other Information |
Comment: Please confirm that the financial statements, exhibits and other required information will be filed by a post-effective amendment to the registration statement.
Response 2:
We confirm that the financial statements, exhibits and other required information will be filed by a post-effective amendment to the registration statement.
| 3. | Definitions of key terms |
Comment: Please add the definition of “Account value” to the glossary.
Response 3:
The definition of “Account value” has been added to the “Definition of key terms” section. We also revised the definition of “Cash value” to match the definition for that term in the “Determining your contract’s value” section of the prospectus.
| 4. | Fee Table |
Comment: In the fee table, please move footnote 2 to be adjacent to “6.00%” in the Investment Edge column and consider splitting the table in the footnote 2 into two.
Response 4(a):
We have made these changes.
| 5. | Fee Table |
Comment: Please indicate which fees apply to the Inherited NQ contract.
Response 5:
In the “Contract features and benefits” section, we added disclosure to the “Inherited NQ beneficiary payout contract” subsection that an Inherited NQ contract is not a separate series, but will be issued as an Investment Edge, Investment Edge Select or Investment Edge ADV series contract. This clarifies that the Inherited NQ contract is a type of Investment Edge contract, just as IRA, SEP and Inherited IRA, etc., are Investment Edge contract types. We don’t have separate disclosure for any of these contract types regarding fees, and we think it would be misleading to do so just for Inherited NQ.
| 6. | Fee Table |
Comment: Please move the caveat about the applicability of the Annual Fund Facilitation Fee to the footnotes.
Response 6:
We have made this change.
| 7. | Fee Table |
Comment: Please indicate whether the Expense Limitation Arrangement applies to non-affiliated funds.
Response 7:
We have added disclosure indicating that the Expense Limitation Arrangement does not apply to non-affiliated funds.
| 8. | Fee Table |
Comment: In the footnote to the Fee Table section describing the Protected premium death benefit charge, please add some information about the Net Amount at Risk.
Response 8:
We have added disclosure that defines the Net Amount at Risk.
| 9. | Fee Table |
Comment: In the footnote for the Protected premium death benefit charge table, clarify that the charge increases automatically as the contract holder ages.
Response 9:
We added disclosure that the charge increases automatically on the contract date anniversary following the contract owner reaching the next age bracket.
| 10. | Fee Table Examples |
Comment: Please include the maximum Fund Facilitation Fee in the example.
Response 10:
Currently we do not offer any funds that charge the Fund Facilitation Fee, and we do not expect to offer such funds in the foreseeable future. Even if we do ever introduce one or more such funds, contract holders will always have the option to invest in funds that do not charge this fee. Accordingly, we do not think it is appropriate to include the fee amount in the Examples section of the Fee Table at this time. If we do start offering one or more funds that charge the Fund Facilitation Fee in the future, we will first file a supplement to the prospectus that updates the Examples section of the Fee Table to reflect the maximum fee amount.
| 11. | Fee Table Examples |
Comment: Please reflect the Protected Premium Death Benefit charge in the example.
Response 11:
In the introductory text, we indicate that for purposes of the example, we assume that the account value accumulates daily consistent with the assumed 5% growth rate, so that there is never a positive value for the Net Amount at Risk that would trigger a charge for the Protected premium death benefit.
| 12. | Portfolios of the Trusts |
Comment: Please bold the sentence noting that the volatility management strategy may suppress the value of the guaranteed benefit.
Response 11:
We have made this change.
| 13. | Portfolios of the Trusts |
Comment: Please indicate that the Asset Transfer Program disclosure is a separate subsection.
Response 13:
We added a subheading to make this clear.
| 14. | Breakpoint Credit |
Comment: Please make it clearer that accrued BPC credits are not included for purposes of calculating the BPC Threshold on a quarterversary Valuation Date.
Response 14:
We have revised this language to make it clear.
| 15. | Inherited NQ beneficiary payout contract |
Comment: Please specify which charges apply to the Inherited NQ contract and that it can be issued as any of the three Investment Edge series.
Response 15:
Please see our response to comment 5.
| 16. | Inherited NQ beneficiary payout contract |
Comment: Please bold the cautionary language aimed at the prospective purchaser.
Response 16:
We have made this change.
| 17. | Inherited NQ beneficiary payout contract |
Comment: For Income Edge Beneficiary Advantage and Beneficiary NQ Stretch, please state that you believe these options comply with current tax law, the basis for that belief and, for Beneficiary NQ Stretch, whether you received a Private Letter Ruling with respect to that feature.
Response 17:
We have added this disclosure.
| 18. | Tax Information |
Comment: In the discussions of Income Edge Early Retirement Option and Income Edge Beneficiary Advantage, please state the basis for believing that these options comply with current tax law.
Response 18:
We have added this disclosure.
| 19. | Early distribution penalty tax |
Comment: Please bold the warning about potential penalties if the substantially equal periodic payment exception does not apply.
Response 19:
We have made this change.
| 20. | Protected premium death benefit example (Appendix VII) |
Comment: Please add a definition of Net Amount at Risk.
Response 20:
We have made this change.
| 21. | Fee waiver for electronic delivery |
Comment: The Commission’s position is that an issuer cannot charge contract owners for paper copies of documents that the issuer is required to provide under the applicable securities laws. Accordingly, please remove references to the Contract Maintenance Fee Tier I, which specifies a maximum $50 annual charge for contract owners who do not elect electronic delivery, from the prospectus.
Response 21:
We have modified our customer service procedures so that any contract owner who signs up for electronic delivery will nevertheless have the ability, for the duration of the contract, to receive upon request and free of charge a paper copy of any document we provide electronically. We have updated the prospectus to make clear
that any contract owner who signs up for electronic delivery has this option. We believe this modification alleviates the Commission’s concern that contract owners who enroll in electronic delivery are foregoing their right to receive free paper copies of documents that the Company is obliged to provide under the contract.
Please contact the undersigned at (201) 743-7174 and Shane Daly at (212) 314-3912 or Dodie Kent, Esq. of Sutherland at (212) 389-5080 if you have any questions or comments.
| Very truly yours, |
/s/ Richard Goldberger |
Richard Goldberger |
cc: Dodie Kent, Esq.
AXA Equitable Life Insurance Company
1290 Avenue of the Americas, New York, NY 10104
Investment Edge(R) 15.0
A variable annuity contract
PROSPECTUS DATED JULY 20, 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 SUPERSEDES 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 INVESTMENT EDGE(R) 15.0 ?
Investment Edge(R) 15.0 ("Investment Edge") is a variable annuity contract
issued by AXA EQUITABLE LIFE INSURANCE COMPANY. The series consists of
Investment Edge(R), Investment Edge(R) Select and Investment Edge(R) ADV. The
contract provides for the accumulation of retirement savings. The contract also
offers death benefit protection and a number of payout options. You invest to
accumulate value on a tax-deferred basis in one or more of our variable
investment options.
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 described in this Prospectus may vary in your state. For a
state-by-state description of all material variations to this contract, see
Appendix III later in this Prospectus. We can refuse to accept any application.
We can refuse to accept any contribution from you at any time, including after
you purchase the contract.
Our variable investment options are subaccounts of 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:
VARIABLE INVESTMENT OPTIONS
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AXA PREMIER VIP TRUST
.. AXA Aggressive Allocation
.. AXA Moderate Allocation
.. AXA Moderate-Plus Allocation
.. Charter/SM/ Aggressive Growth
.. Charter/SM/ Alternative 100 Moderate
.. Charter/SM/ Conservative
.. Charter/SM/ Growth
.. Charter/SM/ Income Strategies
.. Charter/SM/ Interest Rate Strategies
.. Charter/SM/ International Moderate
.. Charter/SM/ Moderate
.. Charter/SM/ Moderate Growth
.. Charter/SM/ Real Assets
.. Charter/SM/ Small Cap Growth
.. Charter/SM/ Small Cap Value
EQ ADVISORS TRUST
.. All Asset Aggressive - Alt 25
.. All Asset Aggressive - Alt 50
.. All Asset Aggressive - Alt 75
<R>
.. AXA/AB Dynamic Moderate Growth/(1)/
</R>
.. AXA/DoubleLine Opportunistic Core Plus Bond
<R>
.. AXA/AB Short Duration Government Bond/(2)/
.. AXA/AB Small Cap Growth/(3)/
</R>
.. AXA/Loomis Sayles Growth
.. AXA Natural Resources
<R>
.. AXA Smart Beta Equity
</R>
.. AXA/Templeton Global Equity Managed Volatility
.. EQ/BlackRock Basic Value Equity
.. EQ/Boston Advisors Equity Income
.. EQ/Calvert Socially Responsible
.. EQ/Common Stock Index
.. EQ/Convertible Securities
.. EQ/Core Bond Index
.. EQ/Emerging Markets Equity PLUS
.. EQ/Energy ETF
.. 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/Large Cap Growth Index
.. EQ/Large Cap Value Index
.. EQ/Low Volatility Global ETF
.. 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 Technology
AIM VARIABLE INSURANCE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) -- SERIES II
.. Invesco V.I. Balanced-Risk Allocation
.. Invesco V.I. Global Health Care
.. Invesco V.I. Global Real Estate
.. Invesco V.I. High Yield
.. Invesco V.I. International Growth
.. Invesco V.I. Small Cap Equity
ALLIANCEBERNSTEIN VARIABLE PRODUCT SERIES FUND, INC. - CLASS B
<R>
.. AB VPS Global Thematic Growth/(4)/
.. AB VPS Growth and Income/(5)/
</R>
<R>
.. AB VPS Real Estate Investment/(6)/
.. AB VPS Small/Mid Cap Value/(7)/
</R>
ALPS VARIABLE INSURANCE TRUST -- CLASS III SHARES
.. ALPS | Red Rock Listed Private Equity
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. -- CLASS II
.. American Century VP Inflation Protection
.. American Century VP Mid Cap Value
AMERICAN FUNDS INSURANCE SERIES(R) -- CLASS 4 SHARES
.. American Funds Insurance Series(R) Asset Allocation Fund/SM/
.. American Funds Insurance Series(R) Global Growth Fund/SM/
.. American Funds Insurance Series(R) Global Small Capitalization Fund/SM/
.. American Funds Insurance Series(R) Growth-Income Fund/SM/
.. American Funds Insurance Series(R) International Growth and Income Fund/SM/
.. American Funds Insurance Series(R) New World Fund(R)
BLACKROCK VARIABLE SERIES FUNDS, INC. -- CLASS III
.. BlackRock Global Allocation V.I.
.. BlackRock Global Opportunities V.l.
DELAWARE VIP(R) -- SERVICE CLASS
.. Delaware VIP(R) Diversified Income Series
.. Delaware VIP(R) Emerging Markets Series
.. Delaware VIP(R) Limited-Term Diversified Income Series
EATON VANCE VARIABLE TRUST
.. Eaton Vance VT Floating-Rate Income
FEDERATED INSURANCE SERIES -- SERVICE SHARES
.. Federated High Income Bond Fund II
.. Federated Kaufman Fund II
FIDELITY(R) VARIABLE INSURANCE PRODUCTS (VIP) -- 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 Mutual Shares VIP
.. Franklin Rising Dividends VIP
.. Templeton Global Bond VIP
GUGGENHEIM VARIABLE TRUST
.. Guggenheim VIF Global Managed Futures Strategy
HARTFORD HLS FUNDS -- CLASS IC SHARES
.. Hartford Capital Appreciation HLS
.. Hartford Growth Opportunities HLS
JPMORGAN INSURANCE TRUST -- CLASS 2 SHARES
.. JPMorgan Insurance Trust Global Allocation
.. JPMorgan Insurance Trust Income Builder
IVY FUNDS VARIABLE INSURANCE PORTFOLIOS
.. Ivy Funds VIP Asset Strategy
.. Ivy Funds VIP Energy
.. Ivy Funds VIP Micro Cap Growth
.. Ivy Funds VIP Science and Technology
<R>
</R>
JANUS ASPEN SERIES -- SERVICE SHARES
<R>
.. Janus Aspen Balanced
</R>
.. Janus Aspen Flexible Bond
.. Janus Aspen INTECH U.S. Low Volatility
LAZARD RETIREMENT SERIES, INC. -- SERVICE SHARES
.. Lazard Retirement Emerging Markets Equity
LEGG MASON -- SHARE CLASS II
.. ClearBridge Variable Aggressive Growth
<R>
.. ClearBridge Variable Dividend Strategy/(8)/
</R>
.. QS Legg Mason Dynamic Multi-Strategy VIT
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) Research Series
.. MFS(R) Utilities Series
.. MFS(R) Value 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
PIMCO VARIABLE INSURANCE TRUST -- ADMINISTRATIVE CLASS
.. PIMCO Global Bond (Unhedged)
PIMCO VARIABLE INSURANCE TRUST -- ADVISOR CLASS
.. PIMCO CommodityRealReturn(R) Strategy
.. PIMCO Emerging Markets Bond
.. PIMCO Global Multi-Asset Managed Allocation
.. PIMCO Total Return
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.
Investment Edge(R) 15.0
#868233
PUTNAM VARIABLE TRUST
.. Putnam VT Absolute Return 500
.. Putnam VT Diversified Income
.. Putnam VT Global Asset Allocation
.. Putnam VT Research Fund
SEI INSURANCE PRODUCT TRUST
.. SEI VP Balanced Strategy
.. SEI VP Conservative Strategy
.. SEI VP Market Growth Strategy
.. SEI VP Market Plus Strategy
.. SEI VP Moderate Strategy
T. ROWE PRICE EQUITY SERIES, INC.
.. T. Rowe Price Equity-Income Portfolio II
.. T. Rowe Price Health Sciences Portfolio II
VAN ECK VIP TRUST -- INITIAL CLASS
.. Van Eck VIP Unconstrained Emerging Markets Bond
VAN ECK VIP TRUST -- S CLASS
.. Van Eck VIP Global Hard Assets
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<R>
(1)Formerly known as EQ/AllianceBernstein Dynamic Wealth Strategies.
(2)Formerly known as EQ/AllianceBernstein Short Duration Government Bond.
(3)Formerly known as EQ/AllianceBernstein Small Cap Growth.
(4)Formerly known as AllianceBernstein VPS Global Thematic Growth.
(5)Formerly known as AllianceBernstein VPS Growth and Income.
(6)Formerly known as AllianceBernstein VPS Real Estate Investment.
(7)Formerly known as AllianceBernstein VPS Small/Mid Cap Value.
(8)Formerly known as ClearBridge Variable Equity Income.
</R>
You may allocate amounts to any of the variable investment options. 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 and allocations to any of the variable
investment options, to add variable investment options, and to limit the number
of variable investment options which you may elect. The contract also includes
a dollar cost averaging program that allows for systematic transfers of amounts
in the EQ/Money Market variable investment option to other variable investment
options.
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 employer-funded traditional IRA for a simplified employee pension plan
("SEP") sponsored by the contract owner's employer.
.. An annuity that is an investment vehicle for a qualified plan ("QP")
(whether defined contribution or defined benefit; transfer contributions
only).
The following contracts are intended for specified post-death payments to
beneficiaries, with continuing access to the contract's account balance:
.. Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA") (direct transfer and specified direct rollover
contributions only).
.. An inherited NQ beneficiary payout contract (a specific form of NQ contract
that we refer to as "Inherited NQ") (contributions from specified Section
1035 exchanges only).
Not all types of contracts are available with each version of the Investment
Edge(R) series contracts. See "Rules regarding contributions to your contract"
in Appendix II for more information.
The registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated July 20, 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.
Contents of this Prospectus
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<R>
Definitions of key terms 5
Who is AXA Equitable? 7
How to reach us 8
Investment Edge(R) Series at a glance -- key
features 10
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FEE TABLE 13
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Examples 15
Condensed financial information 16
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1. CONTRACT FEATURES AND BENEFITS 17
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How you can purchase and contribute to your
contract 17
Owner and annuitant requirements 17
How you can make your contributions 17
What are your investment options under the
contract? 18
Portfolios of the Trusts 19
Allocating your contributions 30
Dollar cost averaging 30
Breakpoint Credit 31
Annuity purchase factors 31
Protected premium death benefit 32
Inherited IRA beneficiary continuation contract 32
Inherited NQ beneficiary payout contract 34
Your right to cancel within a certain number of
days 36
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2. DETERMINING YOUR CONTRACT'S VALUE 37
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Your account value and cash value 37
Your contract's value in the variable investment
options 37
Insufficient account value 37
</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.
3
CONTENTS OF THIS PROSPECTUS
<R>
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3. TRANSFERRING YOUR MONEY AMONG INVESTMENT
OPTIONS 38
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Transferring your account value 38
Rebalancing your account value 38
Disruptive transfer activity 38
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4. ACCESSING YOUR MONEY 40
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Withdrawing your account value 40
How withdrawals (and Income Edge scheduled payments, if
applicable) are taken from your account value 45
Effect of withdrawals on your Protected premium death
benefit 45
Withdrawals treated as surrenders 46
Surrendering your contract to receive its cash value 46
When to expect payments 46
Your annuity payout options 46
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5. CHARGES AND EXPENSES 48
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Charges that AXA Equitable deducts 48
Charges that the Trusts deduct 52
Other distribution arrangements 52
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6. PAYMENT OF DEATH BENEFIT 53
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Your beneficiary and payment of benefit 53
Non-spousal single owner contract continuation 54
Non-spousal joint owner contract continuation 54
Spousal continuation 54
Beneficiary continuation option 55
Income Edge for Beneficiaries option
Special Rules for NQ contracts when Income Edge or Income
Edge Early Retirement Option is in effect 58
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7. TAX INFORMATION 59
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Overview 59
Contracts that fund a retirement arrangement 59
Transfers among investment options 59
Taxation of nonqualified annuities 59
Individual retirement arrangements (IRAs) 63
Traditional individual retirement annuities (traditional IRAs) 63
Simplified Employee Pensions (SEPs) 68
Roth individual retirement annuities (Roth IRAs) 68
Federal and state income tax withholding and information
reporting 71
Special rules for contracts funding qualified plans 72
Impact of taxes to AXA Equitable 72
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8. MORE INFORMATION 73
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About Separate Account No. 70 73
About the Trusts 73
About the general account 73
About other methods of payment 74
Dates and prices at which contract events occur 74
</R>
<R>
About your voting rights 75
Cybersecurity 75
Statutory compliance 75
About legal proceedings 75
Financial statements 75
Transfers of ownership, collateral assignments,
loans and borrowing 75
About Custodial IRAs 76
Distribution of the contracts 76
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APPENDICES
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</R>
I -- Condensed financial information I-1
II -- Rules regarding contributions to your
contract II-1
III -- State contract availability and/or
variations of certain features and
benefits III-1
IV -- Purchase Considerations for QP Contracts IV-1
V -- Hypothetical Illustration V-1
VI -- Income Edge scheduled payment amount
expressed as a Percentage of Account
Value VI-1
VII -- Protected premium death benefit example VII-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
--------------------------------------------------------------------------------
<R>
ACCOUNT VALUE -- Your account value is the total of the values you have in the
variable investment options.
</R>
ANNUITANT -- The "annuitant" is the person who is the measuring life for
determining the contract's maturity date (if applicable). The annuitant is not
necessarily the contract's owner. Where the owner of the contract is a
non-natural person, such as a company or trust, the annuitant is the measuring
life for determining benefits under the contract.
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.
<R>
CASH VALUE -- At any time before annuity payments begin, your contract's "cash
value" is equal to the account value plus any accrued but unpaid Breakpoint
credit amount, less: (i) as applicable, the total amount or a pro rata portion
of the annual administrative charge, and any accrued Protected premium death
benefit charge; and (ii) any applicable withdrawal charges.
</R>
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. If the contract date anniversary falls on a
non-business day, then the transaction date for any transaction that is
scheduled to occur on such anniversary will be the immediately preceding
business day.
CONTRACT YEAR -- The "contract year" is the 12-month period beginning on your
contract date and each 12-month period after that date.
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,
which will generally reflect any gain or loss in the investment options.
INCOME EDGE PAYMENT PROGRAM -- A payment program available for NQ contracts
only, which, when elected, will pay out your entire account value via scheduled
payments over a set period of time, with a portion of each payment being a
return of your cost basis in the contract and thus excludable from taxes. We
offer several versions of the Income Edge payment program, each of which is
described in detail in this Prospectus:
.. Income Edge -- the standard form of Income Edge payment program.
.. Income Edge Early Retirement Option -- available for election by contract
holders under the age of 59 1/2.
.. Income Edge Beneficiary Advantage -- available for election by (a)
Investment Edge NQ contract death beneficiaries and (b) beneficiaries of
non-qualified deferred annuity contracts not issued by AXA Equitable.
When used in this Prospectus, "Income Edge payment program" refers generally to
all forms of Income Edge payment programs, unless we indicate otherwise.
INCOME EDGE ANNIVERSARY DATE -- The anniversary of your Income Edge Effective
Date. Your Income Edge Anniversary Date represents the last day of your annual
Income Edge payout period.
INCOME EDGE EFFECTIVE DATE -- Generally, the date on which we receive your
election to begin payments under an Income Edge payment program. However, for
Income Edge Beneficiary Advantage, the Income Edge Effective Date is the date
by which we have received your Income Edge election, along with all required
information, exchanges and cost basis.
INHERITED NQ CONTRACT -- A specific form of NQ contract that is offered to
beneficiaries of NQ contracts not issued by AXA Equitable for purposes of
making post-death required payments. Contributions to an Inherited NQ contract
must be made through a Section 1035 exchange.
IRA -- Individual retirement annuity contract, either traditional IRA or Roth
IRA (may also refer to an individual retirement account or an individual
retirement arrangement).
MATURITY DATE -- The contract's "maturity date" is generally the contract date
anniversary that follows the annuitant's 95th birthday. Inherited IRA and
Inherited NQ contracts do not have maturity dates.
NET AMOUNT AT RISK -- If you elect the optional Protected premium death
benefit, we use the Net Amount at Risk (NAR) to calculate the daily charge for
this benefit. On each day of your contract, your NAR is equal to (A) minus (B),
where (A) equals your Protected premium death benefit base, and (B) equals your
account value on that day. If (A) is less than or equal to (B), then your NAR
for that day equals zero.
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.
PROTECTED PREMIUM DEATH BENEFIT -- An optional rider that provides a guaranteed
minimum death benefit equal to the amount of your total contributions to the
contract, adjusted for any withdrawals.
QP CONTRACT -- An annuity contract that is an investment vehicle for a
qualified plan.
SEP IRA -- A traditional IRA used as a funding vehicle for a simplified
employee pension plan established by the IRA owner's employer.
TAX-FREE AMOUNT -- the portion of each payment under an Income Edge payment
program that represents a return of your cost basis in the contract and is thus
excludable from taxes.
5
DEFINITIONS OF KEY TERMS
To make this Prospectus easier to read, 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
-----------------------------------------------------------------------------
account value Annuity Account Value
cost basis Your investment in the contract
(generally equals the contributions
you made, less any amounts you
previously withdrew that were not
taxable)
Income Edge payment program Non-Qualified Payment Program
Protected premium death benefit Guaranteed minimum death benefit
unit Accumulation Unit
-----------------------------------------------------------------------------
6
DEFINITIONS OF KEY TERMS
Who is AXA Equitable?
--------------------------------------------------------------------------------
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.
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 U.S. Virgin Islands. Our home office is
located at 1290 Avenue of the Americas, New York, NY 10104.
7
WHO IS AXA EQUITABLE?
HOW TO REACH US
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 and check
to the appropriate location, as follows:
--------------------------------------------------------------------------------
FOR CORRESPONDENCE WITH CHECKS:
FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
Retirement Service Solutions
P.O. Box 1577
Secaucus, NJ 07096-1577
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
Retirement Service Solutions
500 Plaza Drive, 6th Floor
Secaucus, NJ 07094
--------------------------------------------------------------------------------
FOR CORRESPONDENCE WITHOUT CHECKS:
FOR ALL OTHER 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
FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY EXPRESS DELIVERY:
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 (IN ELECTRONIC FORM, OR IF YOU DO NOT ENROLL IN ELECTRONIC
DELIVERY(1), IN PAPER FORM):
.. written confirmation of financial transactions and certain nonfinancial
transactions, including termination of a systematic withdrawal option;
----------
(1)Please note that if you are not enrolled in electronic delivery, an annual
administrative charge will apply. Please see "Fee Table" and "Charges and
Expenses" later in this Prospectus for more information.
.. 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 or, for NQ contracts following election of an Income Edge payment
program, an Annual Payout Statement.
--------------------------------------------------------------------------------
ONLINE ACCOUNT ACCESS ("OAA") SYSTEM:
OAA is designed to provide this information through the Internet. You can
obtain information on:
.. your current account value;
.. your current allocation percentages;
.. the number of units you have in the variable investment options; and
.. the daily unit values for the variable investment options.
In addition, you can do the following:
.. change your allocation percentages and/or transfer among the investment
options;
.. obtain performance information regarding the variable investment options;
.. elect to receive certain contract statements electronically;
.. change your address;
.. change your OAA password; and
.. access Frequently Asked Questions and Service Forms.
OAA is normally available seven days a week, 24 hours a day. You may use OAA 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
personal identification information before we will act on 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.
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).
--------------------------------------------------------------------------------
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.
8
WHO IS AXA EQUITABLE?
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE (AND SUBMITTED IN THE MANNER THAT THE FORMS SPECIFY):
(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 rollovers;
(8)election of an annuity payout option;
(9)election of a version of Income Edge (for NQ contracts only);
(10)death claims;
(11)change in ownership (NQ only, if available under your contract);
(12)purchase by, or change of ownership to, a nonnatural owner;
(13)requests to collaterally assign your NQ contract;
(14)requests to drop your Protected premium death benefit;
(15)requests to transfer into and among the investment options, re-allocate,
rebalance and change your future allocations; and
(16)withdrawal requests.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1)beneficiary changes;
(2)contract surrender; and
(3)dollar cost averaging (if available).
TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1)dollar cost averaging (if available);
(2)substantially equal withdrawals;
(3)systematic withdrawals;
(4)the date annuity payments are to begin; and
(5)RMD payments from inherited IRAs.
-------------------
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 would normally be the
owner. If there are joint owners, both must sign.
9
WHO IS AXA EQUITABLE?
Investment Edge(R) Series at a glance -- key features
--------------------------------------------------------------------------------
THREE CONTRACT SERIES This Prospectus describes the Investment Edge(R) series
contracts -- Investment Edge(R), Investment Edge(R) Select
and Investment Edge(R) ADV. Each version provides for the
accumulation of retirement savings and death benefit
protection. Each version also offers various payout options.
Each version provides a different charge structure. For
details, please see the "Fee table" and "Charges and
expenses" later in this Prospectus.
Each version is subject to contribution rules, which are
described in "Contribution amounts" later in this section
and in "How you can purchase and contribute to your
contract" in "Contract features and benefits" and in "Rules
regarding contributions to your contract" in Appendix II
later in this Prospectus.
Throughout the Prospectus, any differences among the
contract versions are identified.
You should work with your financial professional to decide
which version of the 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.
-------------------------------------------------------------------------------------
PROFESSIONAL INVESTMENT The variable investment options in your Investment Edge(R)
MANAGEMENT series contract invest in different Portfolios managed by
professional investment advisers.
-------------------------------------------------------------------------------------
TAX CONSIDERATIONS . 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.
------------------------------------------------------------
. For NQ contracts, the opportunity to elect a version of
Income Edge, which will permit you to recover your
account value and cost basis over a specified period.
INCOME EDGE DOES NOT GUARANTEE YOUR ACCOUNT VALUE NOR A
RETURN OF PRINCIPAL: YOUR ACCOUNT VALUE REMAINS SUBJECT
TO MARKET PERFORMANCE AFTER ELECTION OF INCOME EDGE.
------------------------------------------------------------
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
these 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.
-------------------------------------------------------------------------------------
CONTRIBUTION AMOUNTS The chart below shows the minimum initial and, in
parenthesis, additional contribution amounts under the
contracts. 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 II for more information, including important
limitations on contributions.
INVESTMENT INVESTMENT INVESTMENT
EDGE(R) EDGE(R) SELECT EDGE(R) ADV
---------------------------------------------------------------------------------------------------
NQ $10,000($500) $25,000($500) $25,000($500)
---------------------------------------------------------------------------------------------------
Traditional IRA $10,000($50) $25,000($50) $25,000($50)
---------------------------------------------------------------------------------------------------
Roth IRA $10,000($50) $25,000($50) $25,000($50)
---------------------------------------------------------------------------------------------------
SEP IRA $10,000($500) $25,000($500) $25,000($500)
---------------------------------------------------------------------------------------------------
QP $10,000($500) $25,000($500) $25,000(n/a)
---------------------------------------------------------------------------------------------------
Inherited IRA Beneficiary Continuation contract $10,000($1,000) $25,000($1,000) $25,000($1,000)
(traditional IRA or Roth IRA) ("Inherited IRA")
---------------------------------------------------------------------------------------------------
Inherited NQ $10,000(n/a) $25,000(n/a) $25,000(n/a)
---------------------------------------------------------------------------------------------------
. 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.
------------------------------------------------------------
10
INVESTMENT EDGE(R) SERIES AT A GLANCE -- KEY FEATURES
-----------------------------------------------------------------------------------------
We currently do not accept any contribution to your
contract if: (i) the sum total of all contributions under
all Investment Edge(R) series contracts with the same owner
or annuitant would then total more than $1,500,000 (ii) or
the aggregate contributions under all AXA Equitable annuity
accumulation contracts with the same owner or annuitant
would then total more than $2,500,000.
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, to add variable investment options, and
to limit the number of variable investment options which
you may elect.
-----------------------------------------------------------------------------------------
ACCESS TO YOUR MONEY . Partial withdrawals
. Several withdrawal options on a periodic basis
. Contract surrender
You may incur a withdrawal charge for certain withdrawals
or if you surrender your contract. You may also incur
income tax and a tax penalty.
-----------------------------------------------------------------------------------------
PAYOUT OPTIONS . Income Edge payment program (for NQ contracts only).
When elected, an Income Edge payment program will pay
out your entire account value via scheduled payments
over a set period of time, with a portion of each
payment being a return of your cost basis in the
contract and thus excludable from taxes. Unlike
traditional forms of annuitization, an Income Edge
payment program allows for a form of annuity payout
that provides continuing access to your contract's
account value. We offer several versions of Income Edge
payment program, each of which is described in detail
in this Prospectus:
-- Income Edge -- the standard form of Income Edge
payment program.
-- Income Edge Early Retirement Option -- available for
election by contract holders under the age of 59 1/2.
-- Income Edge Beneficiary Advantage -- available for
election by (a) Investment Edge NQ contract death
beneficiaries and (b) beneficiaries of non-qualified
deferred annuity contracts not issued by AXA
Equitable (Inherited NQ contract holders).
. Other payout options through supplementary contracts.
Please see "Your annuity payout options" in "Accessing
your money" for additional information.
-----------------------------------------------------------------------------------------
STANDARD DEATH BENEFIT . Your 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 all
information and forms necessary to effect payment.
-----------------------------------------------------------------------------------------
PROTECTED PREMIUM DEATH . Greater of your account value or total contributions to
BENEFIT your contract, adjusted pro-rata for any withdrawals
you have made.
This guaranteed benefit is supported by AXA Equitable's
general account and is subject to AXA Equitable's claims
paying ability. Contract owners should look to the
financial strength of AXA Equitable for its claims
paying ability.
-----------------------------------------------------------------------------------------
ADDITIONAL FEATURES . Dollar cost averaging
. Recurring/Scheduled account value rebalancing
. Free transfers
. Waiver of withdrawal charge for certain withdrawals,
disability, terminal illness, or confinement to a
nursing home
. Spousal continuation
. Beneficiary continuation option (IRA and NQ only)
-----------------------------------------------------------------------------------------
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 II for owner and annuitant issue ages
applicable to your contract.
-----------------------------------------------------------------------------------------
YOUR RIGHT TO CANCEL To exercise your cancellation right you must mail the
contract, with a signed letter of instruction electing this
right, to our processing office within 10 days after you
receive it. 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.
-----------------------------------------------------------------------------------------
THE TABLE ABOVE SUMMARIZES ONLY CERTAIN CURRENT KEY FEATURES OF THE CONTRACT.
THE TABLE ALSO SUMMARIZES CERTAIN CURRENT LIMITATIONS, RESTRICTIONS AND
EXCEPTIONS TO THOSE FEATURES 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. PLEASE SEE APPENDIX III LATER IN THIS
PROSPECTUS FOR MORE INFORMATION ON STATE AVAILABILITY AND/OR VARIATIONS OF
CERTAIN FEATURES AND BENEFITS.
11
INVESTMENT EDGE(R) SERIES AT A GLANCE -- KEY FEATURES
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.
CURRENTLY, YOU MAY PURCHASE A INVESTMENT EDGE(R) ADV CONTRACT ONLY IF YOU ARE A
PARTICIPANT IN AN ACCOUNT ESTABLISHED UNDER A FEE-BASED PROGRAM SPONSORED AND
MAINTAINED BY A REGISTERED BROKER-DEALER OR OTHER FINANCIAL INTERMEDIARY WE
APPROVE (INCLUDING AXA ADVISORS, LLC, ONE OF THE DISTRIBUTORS OF THE CONTRACTS
AND AN AFFILIATE OF AXA EQUITABLE). WE MAY, IN THE FUTURE, OFFER INVESTMENT
EDGE(R) ADV CONTRACTS THROUGH OTHER MEANS. THE FEES AND EXPENSES OF A FEE-BASED
PROGRAM ARE SEPARATE FROM AND IN ADDITION TO THE FEES AND EXPENSES OF THE
CONTRACT AND GENERALLY PROVIDE FOR VARIOUS BROKERAGE SERVICES. IF YOU PURCHASE
A INVESTMENT EDGE(R) ADV CONTRACT THROUGH A FEE-BASED ARRANGEMENT AND LATER
TERMINATE THE ARRANGEMENT, YOUR CONTRACT WILL CONTINUE IN FORCE. THERE MAY BE
CHARGES ASSOCIATED WITH THE FEE-BASED ARRANGEMENT SHOULD YOU DECIDE TO NO
LONGER PARTICIPATE IN THE ARRANGEMENT. PLEASE CONSULT WITH YOUR PROGRAM SPONSOR
FOR MORE DETAILS ABOUT YOUR FEE-BASED PROGRAM.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees, death or income
guarantee benefits and/or charges that are different from those in the
contracts offered by this Prospectus. Not every contract 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 this
contract and any optional benefit is appropriate for you based on a thorough
analysis of your particular insurance needs, financial objectives, investment
goals, tax planning needs, time horizons and risk tolerance.
12
INVESTMENT EDGE(R) SERIES AT A GLANCE -- KEY FEATURES
Fee table
--------------------------------------------------------------------------------
<R>
The following tables describe the fees and expenses that you will pay when
buying, owning, and surrendering a contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
</R>
The first table describes fees and expenses that you will pay at the time you
surrender the contract, if you make certain withdrawals or transfers, request
special services or apply your cash value to certain payout options. Charges
designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state, may also apply./(1)/
<R>
--------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN TRANSACTIONS
--------------------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions INVESTMENT INVESTMENT INVESTMENT
withdrawn (deducted if you surrender your contract or make EDGE(R) EDGE(R) SELECT EDGE(R) ADV
certain withdrawals or apply your cash value to certain ---------- -------------- -----------
payout options).
6.00%/(2)/ N/A N/A
--------------------------------------------------------------------------------------------------
</R>
Charge for each additional transfer in excess of Maximum Charge: $35
12 transfers per contract year:/(3)/ Current Charge: $0
Special service charges:/(4)/
. Express mail charge Current and Maximum Charge: $35
. Wire transfer charge Current and Maximum Charge: $90
. Check preparation charge/(5)/ Maximum Charge: $85
Current Charge: $0
. Charge for third party transfer or
exchange/(5)/ Maximum Charge: $125
Current Charge: $65/(6)/
. Duplicate contract charge Current and Maximum Charge: $35
. Duplicate Annual and/or Quarterly Statement Maximum Charge: $35
of Account or Annual Payout Statement charge Current Charge: $0
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.
--------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE ON EACH CONTRACT DATE ANNIVERSARY
--------------------------------------------------------------------------------------------------------
Current and Maximum annual Contract Maintenance Fee
Tier I/(7)/
If you are not enrolled in electronic delivery $50
If you are enrolled in electronic delivery $0
Current and Maximum annual Contract Maintenance Fee
Tier II/(8)(9)/
If your account value on your contract date anniversary $50
is less than $50,000
If your account value on your contract date anniversary $0
is $50,000 or higher
--------------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY
NET ASSETS/(10)/
--------------------------------------------------------------------------------------------------------
SEPARATE ACCOUNT ANNUAL EXPENSES/(11)/: INVESTMENT INVESTMENT INVESTMENT
EDGE(R) EDGE(R) SELECT EDGE(R) ADV
-------------- -------------- -----------
Operations 0.70% 0.75% 0.20%
Administrative 0.30% 0.30% 0.10%
Distribution 0.10% 0.20% 0.00%
----- ----- -----
Total Separate account annual expenses ("Contract fee") 1.10%/(12)/ 1.25%/(12)/ 0.30%
--------------------------------------------------------------------------------------------------------
<R>
ANNUAL FUND FACILITATION FEE/(13)/: Maximum charge: 0.70%
Current charge:
0.00%
--------------------------------------------------------------------------
</R>
13
FEE TABLE
<R>
--------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE EACH YEAR IF
YOU FUND THE FOLLOWING OPTIONAL BENEFIT
--------------------------------------------------------
PROTECTED PREMIUM DEATH BENEFIT CHARGE
(calculated daily as a percentage of your Net Amount at
Risk./(14)/ Deducted annually on each contract date
anniversary for which the benefit is in effect./(15)/)
</R>
<R>
---------------------------------------------------------------
CURRENT MAXIMUM CURRENT MAXIMUM
ANNUAL ANNUAL ANNUAL ANNUAL
AGE/(16)/ CHARGE CHARGE AGE/(16)/ CHARGE CHARGE
---------------------------------------------------------------
(less or =)65 0.6% 1.2% 89 12.0% 24.0%
---------------------------------------------------------------
66-70 1.2% 2.4% 90 13.5% 27.0%
---------------------------------------------------------------
71-75 1.8% 3.6% 91 14.5% 29.0%
---------------------------------------------------------------
76-80 3.6% 7.2% 92 16.0% 32.0%
---------------------------------------------------------------
81-85 7.2% 14.4% 93 17.0% 34.0%
---------------------------------------------------------------
86 9.0% 18.0% 94 18.5% 37.0%
---------------------------------------------------------------
87 10.0% 20.0% 95 20.0% 40.0%
---------------------------------------------------------------
88 11.0% 22.0%
---------------------------------------------------------------
</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.
---------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY
NET ASSETS/(10)/
---------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2014
(expenses that are deducted from Portfolio assets including
management fees, 12b-1 fees, service fees, and/or other Lowest Highest
expenses)/(/*/)/ 0.62% 8.84%
---------------------------------------------------------------------------
<R>
(*)"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 the
Expense Limitation Arrangement. The Expense Limitation Arrangement does not
apply to unaffiliated Portfolios. The range of expense in the table below
includes the effect of the Expense Limitation Arrangements.
</R>
<R>
---------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY
NET ASSETS
---------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2014 after Lowest Highest
the effect of Expense Limitation Arrangements/(17)/ 0.62% 3.26%
---------------------------------------------------------------------------
</R>
For complete information regarding the Expense Limitation Arrangements see the
prospectuses for the underlying Portfolios.
Notes:
(1)The current tax charge that might be imposed varies by jurisdiction and
currently ranges from 0% to 3.5%.
(2)Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year
in which you make a withdrawal or surrender your contract to receive its
cash value. For each contribution, we consider the contract year in which we
receive that contribution to be "contract year 1"
<R>
Surrender Surrender
Contract Year Charge Contract Year Charge
1............. 6.00% 4............. 4.00%
2............. 6.00% 5............. 3.00%
3............. 5.00% 6+............ 0.00%
</R>
<R>
</R>
(3)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.
(4)These charges may increase over time to cover our administrative costs. We
may discontinue these services at any time, with or without notice.
(5)The sum of these charges will never exceed 2% of the amount disbursed or
transferred.
(6)This charge is currently waived. This waiver may be discontinued at any
time, with or without notice.
14
FEE TABLE
(7)We will deduct this charge on any contract date anniversary following the
first contract date anniversary (or, for NQ contracts where an Income Edge
payment program has been elected, the first Income Edge Anniversary Date) if
you were not enrolled in electronic delivery for the entirety of the
preceding contract year (or, for NQ contracts where an Income Edge payment
program has been elected, the preceding Annual Payout Period). 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. Otherwise, we will deduct the full charge.
<R>
If you enroll in electronic delivery, you can still contact us to receive a
free paper copy of any document we previously provided you electronically
without being charged the Contract Maintenance Fee Tier I. See "Account
value charges" in "Charges and expenses" for more information.
</R>
(8)Beginning with your first contract date anniversary, we will deduct this
charge on any contract date anniversary on which your account value is less
than $50,000. 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. Otherwise, we
will deduct the full charge. This charge will no longer apply to NQ
contracts following election of an Income Edge payment program, even if your
account value falls below $50,000.
(9)This charge does not apply to Investment Edge(R) ADV contracts.
(10)Daily net assets is the sum of the value of the amounts invested in all
your portfolios before we deduct applicable contract charges, which are set
forth in the tables above.
(11)The separate account annual expenses compensate us for certain risks we
assume and expenses we incur under the contract. We expect to make a profit
from these charges.
(12)Investment Edge(R) and Investment Edge Select(R) contract owners only: You
may be eligible for a reduction in the Contract fee. See "Breakpoint
Credit" in "Contract features and benefits" for more information.
<R>
(13)This fee DOES NOT APPLY to any variable investment options that we
currently offer.
(14)On each day of your contract, your NAR is equal to (A) minus (B), where (A)
equals your Protected premium death benefit base; and (B) equals your
account value on that day. Your NAR can never be less than zero. For more
information, see "Protected premium death benefit charge" in "Charges and
expenses" later in this Prospectus.
(15)If on any date other than the contract date anniversary your contract is
surrendered or annuitized, an Income Edge payment program is elected and
becomes effective, a death benefit is paid, or the Protected Premium death
benefit is otherwise terminated, we will deduct the cumulative accrued
charge for that year from your account value.
(16)Age at issue, and subsequently, as of your most recent contract date
anniversary. For jointly owned contracts, the charge is based on the age of
the older joint owner. The daily charge percentage increases automatically
on each contract date anniversary following the date on which you reach the
next age bracket shown in the table.
(17)"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>
EXAMPLES
<R>
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.
The examples below show the expenses that a hypothetical contract owner would
pay in the situations illustrated. These examples use an average annual
administrative charge based on anticipated sales and contract sizes, which
results in an estimated administrative charge of 0.10% of contract value.
</R>
The annual administrative charge and any applicable withdrawal charge do apply
to the amounts allocated to the dollar cost averaging program (as available).
<R>
These examples assume that you invest $10,000 in the contract for the time
periods indicated and elect the Protected premium death benefit, that your
investment has a 5% return each year, and that on each valuation day your
account value increases to reflect this assumed growth rate. Based on these
assumptions, your account value is always greater than the Protected premium
death benefit base, so your Net Amount at Risk (as described in "Protected
premium death benefit charge" in the "Charges and expenses" section later in
the Prospectus) never results in a charge for the Protected premium death
benefit. For an example of how the Protected premium death benefit charge is
calculated when your Net Amount at Risk is positive, see Appendix VII.
Other than the administrative charge, the examples also assume separate account
annual expenses and total annual expenses of the Portfolios (before expense
limitations). These examples 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 examples 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>
INVESTMENT EDGE
---------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR IF YOU DO NOT SURRENDER YOUR
CONTRACT AT THE END OF THE CONTRACT AT THE END OF THE
APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD
---------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------------------------------------------------------------------------------------------------
(a)assuming maximum fees and
expenses of any of the
Portfolios $1,653 $3,488 $5,015 $8,262 $1,053 $2,988 $4,715 $8,262
---------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Portfolios $ 791 $1,091 $1,315 $2,198 $ 191 $ 591 $1,015 $2,198
---------------------------------------------------------------------------------------------------
</R>
15
FEE TABLE
<R>
INVESTMENT EDGE SELECT
---------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR IF YOU DO NOT SURRENDER YOUR
CONTRACT AT THE END OF THE CONTRACT AT THE END OF THE
APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD
---------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------------------------------------------------------------------------------------------------
(a)assuming maximum fees and
expenses of any of the
Portfolios $1,069 $3,028 $4,770 $8,329 $1,069 $3,028 $4,770 $8,329
---------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Portfolios $ 207 $ 638 $1,096 $2,362 $ 207 $ 638 $1,096 $2,362
---------------------------------------------------------------------------------------------------
</R>
<R>
INVESTMENT EDGE ADV
---------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR IF YOU DO NOT SURRENDER YOUR
CONTRACT AT THE END OF THE CONTRACT AT THE END OF THE
APPLICABLE TIME PERIOD APPLICABLE TIME PERIOD
---------------------------------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS 1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------------------------------------------------------------------------------------------------
(a)assuming maximum fees and
expenses of any of the
Portfolios $969 $2,773 $4,412 $7,882 $969 $2,773 $4,412 $7,882
---------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Portfolios $107 $ 334 $ 579 $1,281 $107 $ 334 $ 579 $1,281
---------------------------------------------------------------------------------------------------
</R>
For information on how your contract works under certain hypothetical
circumstances, please see Appendix V at the end of this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix I at the end of this Prospectus or 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.
16
FEE TABLE
1. Contract features and benefits
--------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We can refuse to accept any application or contribution from
you at any time, including after you purchase the contract. We require a
minimum contribution for each type of contract purchased. Maximum contribution
limitations also apply. The tables in Appendix II summarize our current rules
regarding contributions to your contract, which rules are subject to change. In
some states our rules may vary. Both the owner and the annuitant named in the
contract must meet the issue age requirements shown in the table, and rules for
contributions are based on the age of the older of the original owner and
annuitant.
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, to add variable investment options, and to limit the number
of variable investment options which you may elect.
--------------------------------------------------------------------------------
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
total of all contributions under all Investment Edge(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 contribution limitations based on certain criteria, including issue
age, the total amount of contributions, variable investment option allocations
and selling broker-dealer compensation. These contribution limitations may not
be applicable in your state. Please see Appendix III later in this Prospectus.
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner.
--------------------------------------------------------------------------------
THE "OWNER" IS THE PERSON WHO IS THE NAMED OWNER IN THE CONTRACT AND, IF AN
INDIVIDUAL, IS THE MEASURING LIFE FOR DETERMINING CERTAIN CONTRACT FEATURES.
THE "ANNUITANT" IS THE PERSON WHO IS THE MEASURING LIFE FOR DETERMINING THE
CONTRACT'S MATURITY DATE (IF APPLICABLE). THE ANNUITANT IS NOT NECESSARILY THE
CONTRACT OWNER. WHERE THE OWNER OF A CONTRACT IS A NON-NATURAL PERSON SUCH AS A
COMPANY OR TRUST, THE ANNUITANT (OR THE OLDER OF TWO JOINT ANNUITANTS, IF
APPLICABLE) IS THE MEASURING LIFE FOR DETERMINING CERTAIN CONTRACT FEATURES.
--------------------------------------------------------------------------------
Owners which are not individuals may be required to document their status to
avoid 30% FATCA withholding from U.S.-source income.
For NQ contracts a joint annuitant may also be named, but the joint annuitants
must be spouses. In addition, special rules regarding joint owners and
annuitants apply in connection with election of an Income Edge payment program.
See "Income Edge Payment Program" in "Accessing your money" later in this
Prospectus.
Under Inherited NQ contracts, the owner and annuitant must be the same
individual. You must own an Inherited NQ contract in your capacity as the
beneficiary of a deceased owner's nonqualified deferred annuity contract issued
by another insurance company. See "Inherited NQ beneficiary payment contract"
later in this section for Inherited NQ (including Income Edge Beneficiary
Advantage) requirements.
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. See "Inherited IRA
beneficiary continuation contract" later in this section for Inherited IRA
owner and annuitant requirements.
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 and must be age 85 or younger. 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. Spousal continuation is
discussed in the "Payment of death benefit" section.
Investment Edge(R) Select and Investment Edge(R) ADV contracts are not
available for purchase by non-natural owners. In addition, Investment Edge(R)
Select contracts are not available for purchase by Charitable Remainder Trusts.
In general, we will not permit a contract to be owned by a minor unless it is
pursuant to the Uniform Gifts 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. See Appendix IV at the end of
this Prospectus for more information regarding QP contracts.
Certain features of 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 features will be based on the age of the annuitant or the older of two
joint annuitants, if applicable. Under QP contracts, all features are based on
the age of the annuitant. If the contract is jointly owned, these features will
be based on the older of the two owners. 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.
HOW YOU CAN MAKE YOUR CONTRIBUTIONS
Except as noted below, contributions must be by check drawn on a U.S. bank, in
U.S. dollars, and made payable to AXA Equitable. We
17
CONTRACT FEATURES AND BENEFITS
may also apply contributions made pursuant to an exchange intended to be a
Section 1035 tax-free exchange or a direct transfer. We do not accept starter
checks or travelers' checks. All checks are subject to our ability to collect
the funds. We reserve the right to reject a payment if it is received in an
unacceptable form.
For NQ contracts, special rules regarding contributions via Section 1035
exchanges apply to election of an Income Edge payment program, and special
rules regarding contributions apply once Income Edge is in effect. See "Income
Edge Payment Program" in "Accessing your money" later in this Prospectus. For
Inherited NQ contracts, contributions must be made via one or more Section 1035
exchanges. See "Inherited NQ beneficiary payout contract" later in this section.
If your contract is sold by a financial professional of AXA Advisors, AXA
Advisors will direct us to hold your initial contribution, whether received via
check or wire, in a non-interest bearing "Special Bank Account for the
Exclusive Benefit of Customers" while AXA Advisors ensures your application is
complete and that suitability standards are met. AXA Advisors will either
complete this process or instruct us to return your contribution to you within
the applicable Financial Industry Regulatory Authority ("FINRA") time
requirements. Upon timely and successful completion of this review, AXA
Advisors will instruct us to transfer your contribution into our non-interest
bearing suspense account and transmit your application to us, so that we can
consider your application for processing.
--------------------------------------------------------------------------------
THE "CONTRACT DATE" IS THE EFFECTIVE DATE OF A 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. 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 contribution will be applied within two business
days. If any information we require to issue your contract is missing or
unclear, we will hold your contribution 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 return the contribution to you, unless you or your
financial professional acting on your behalf, specifically direct us to keep
your contribution until we receive the required information. The contribution
will be applied as of the date we receive the missing information.
If your financial professional is with a selling broker-dealer other than AXA
Advisors, your initial contribution must generally be accompanied by a
completed application and any other form we need to process the payments. If
any information is missing or unclear, we will hold the contribution, whether
received via check or wire, in a non-interest bearing suspense account 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 return the contribution to you unless
you or your financial professional on your behalf, specifically direct us to
keep your contribution until we receive the required information. The
contribution will be applied as of the date we receive the missing information.
--------------------------------------------------------------------------------
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."
--------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
The contract provides the variable investment options available for investing.
This section lists each of the variable investment options. The next section,
"Allocating your contributions," discusses dollar cost averaging in general.
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 and their advisers. We may, at any time, exercise our rights to
limit or terminate your contributions, allocations and transfers to any of the
variable investment options, to add variable investment options and to limit
the number of variable investment options which you may elect.
18
CONTRACT FEATURES AND BENEFITS
PORTFOLIOS OF THE TRUSTS
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, LLC and AXA Distributors, LLC (together,
the "Distributors") 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. It may be more profitable for us to offer affiliated
Portfolios than to offer unaffiliated Portfolios.
AXA Equitable or the Distributors 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. The Distributors 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, LLC, 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.
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."
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) are designed to reduce the overall
volatility of your 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 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 Fund
Portfolios, invest exclusively in other Portfolios that do not use the AXA
volatility management strategy). THIS MAY EFFECTIVELY SUPPRESS THE VALUE OF THE
GUARANTEED BENEFIT. 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
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
19
CONTRACT FEATURES AND BENEFITS
"(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 account value and guaranteed
benefit in the same manner described above. Please see the Portfolio
prospectuses for more information about the Portfolios' objective and
strategies.
<R>
ASSET TRANSFER PROGRAM. Portfolio allocations in certain AXA variable annuity
contracts with guaranteed benefits are subject to our Asset Transfer Program
(ATP) feature. The ATP helps us manage our financial exposure in connection
with providing certain guaranteed benefits, by using predetermined mathematical
formulas to move account value between the AXA Ultra Conservative Strategy
Portfolio (an investment option utilized solely by the ATP) and the other
Portfolios offered under those contracts. 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. This means that Portfolio investments in contracts with no ATP
feature, such as yours, could still be adversely impacted. 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:
</R>
(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 total 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.
---------------------------------------------------------------------------------------------------------------------
INVESTMENT
AXA PREMIER VIP MANAGER (OR
TRUST PORTFOLIO SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE Class B Seeks to achieve long-term capital . AXA Equitable (check mark)
ALLOCATION appreciation. Funds Management
Group, LLC
---------------------------------------------------------------------------------------------------------------------
AXA MODERATE Class B Seeks to achieve long-term capital . AXA Equitable (check mark)
ALLOCATION appreciation and current income. Funds Management
Group, LLC
---------------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS Class B Seeks to achieve long-term capital . AXA Equitable (check mark)
ALLOCATION appreciation and current income, with a Funds Management
greater emphasis on capital appreciation. Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Class B Seeks long-term capital appreciation and . AXA Equitable
AGGRESSIVE GROWTH current income, with a greater emphasis Funds Management
on capital appreciation. Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Class B Seeks long-term capital appreciation. . AXA Equitable
ALTERNATIVE 100 Funds Management
MODERATE Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Class B Seeks a high level of current income. . AXA Equitable
CONSERVATIVE Funds Management
Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ GROWTH Class B Seeks long-term capital appreciation and . AXA Equitable
current income. Funds Management
Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ INCOME Class B Seeks a high level of current income. . AXA Equitable
STRATEGIES Funds Management
Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Class B Seeks to achieve long-term total return, . AXA Equitable
INTEREST RATE consistent with the preservation of capital Funds Management
STRATEGIES and prudent investment management. Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Class B Seeks long-term capital appreciation and . AXA Equitable
INTERNATIONAL current income, with a greater emphasis Funds Management
MODERATE on current income. Group, LLC
---------------------------------------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE Class B Seeks long-term capital appreciation and . AXA Equitable
current income, with a greater emphasis Funds Management
on current income. Group, LLC
---------------------------------------------------------------------------------------------------------------------
20
CONTRACT FEATURES AND BENEFITS
----------------------------------------------------------------------------------------------------------------
INVESTMENT
AXA PREMIER VIP MANAGER (OR
TRUST PORTFOLIO SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ Class B Seeks long-term capital appreciation and . AXA Equitable
MODERATE GROWTH current income, with a greater emphasis Funds Management
on current income. Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ REAL Class B Seeks to achieve maximum real return. . AXA Equitable
ASSETS Funds Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Class B Seeks to achieve long-term growth of . AXA Equitable
CAP GROWTH capital. Funds Management
Group, LLC
----------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL Class B Seeks to achieve long-term growth of . AXA Equitable
CAP VALUE capital. Funds Management
Group, LLC
<R>
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENT
EQ ADVISORS MANAGER (OR
TRUST PORTFOLIO SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------------------
ALL ASSET Class IB Seeks long-term capital appreciation and . AXA Equitable
AGGRESSIVE - ALT current income, with a greater emphasis Funds Management
25 on capital appreciation. Group, LLC
-------------------------------------------------------------------------------------------------------------------------------
ALL ASSET Class IB Seeks long-term capital appreciation. . AXA Equitable
AGGRESSIVE - ALT Funds Management
50 Group, LLC
-------------------------------------------------------------------------------------------------------------------------------
ALL ASSET Class IB Seeks long-term capital appreciation. . AXA Equitable
AGGRESSIVE - ALT Funds Management
75 Group, LLC
-------------------------------------------------------------------------------------------------------------------------------
AXA/DOUBLELINE Class IB Seeks to maximize current income and . DoubleLine
OPPORTUNISTIC total return. Capital LP
CORE PLUS BOND
-------------------------------------------------------------------------------------------------------------------------------
AXA/AB DYNAMIC Class IB Seeks to achieve total return from long- . AllianceBernstein (delta)
MODERATE GROWTH term growth of capital and income. L.P.
(formerly EQ/AllianceBernstein
Dynamic Wealth
Strategies)
-------------------------------------------------------------------------------------------------------------------------------
AXA/AB SHORT Class IB Seeks to achieve a balance of current . AllianceBernstein
DURATION income and capital appreciation, L.P.
GOVERNMENT BOND consistent with a prudent level of risk.
(formerly
EQ/AllianceBernstein
Short Duration
Government Bond)
-------------------------------------------------------------------------------------------------------------------------------
AXA/AB SMALL CAP Class IB Seeks to achieve long-term growth of . AllianceBernstein
GROWTH (formerly capital. L.P.
EQ/AllianceBernstein
Small Cap Growth)
-------------------------------------------------------------------------------------------------------------------------------
AXA/LOOMIS SAYLES Class IB Seeks to achieve capital appreciation. . Loomis, Sayles &
GROWTH Company, L.P.
-------------------------------------------------------------------------------------------------------------------------------
AXA NATURAL Class IB Seeks to achieve long-term growth of . AllianceBernstein
RESOURCES capital. L.P.
-------------------------------------------------------------------------------------------------------------------------------
AXA SMARTBETA EQUITY Class IB Seeks to achieve long-term capital . AXA Rosenberg
appreciation. Management, LLC
-------------------------------------------------------------------------------------------------------------------------------
AXA/TEMPLETON Class IB Seeks to achieve long-term capital growth . AXA Equitable (check mark)
GLOBAL EQUITY with an emphasis on risk adjusted returns Funds Management
MANAGED VOLATILITY and managing volatility in the Portfolio. Group, LLC
. BlackRock
Investment
Management, LLC
. Templeton
Investment
Counsel, LLC
-------------------------------------------------------------------------------------------------------------------------------
</R>
21
CONTRACT FEATURES AND BENEFITS
------------------------------------------------------------------------------------------------------------------
INVESTMENT
EQ ADVISORS MANAGER (OR
TRUST PORTFOLIO SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC Class IB Seeks to achieve capital appreciation and . BlackRock
VALUE EQUITY secondarily, income. Investment
Management, LLC
------------------------------------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS Class IB Seeks a combination of growth and . Boston Advisors,
EQUITY INCOME income to achieve an above-average and LLC
consistent total return.
------------------------------------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY Class IB Seeks to achieve long-term capital . Calvert
RESPONSIBLE appreciation. Investment
Management Inc.
------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK Class IB Seeks to achieve a total return before . AllianceBernstein
INDEX expenses that approximates the total L.P.
return performance of the Russell 3000(R)
Index, including reinvestment of
dividends, at a risk level consistent with
that of the Russell 3000(R) Index.
------------------------------------------------------------------------------------------------------------------
EQ/CONVERTIBLE Class IB Seeks a high level of total return. . AXA Equitable
SECURITIES Funds Management
Group, LLC
. Palisade Capital
Management, L.L.C.
------------------------------------------------------------------------------------------------------------------
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 . AllianceBernstein
EQUITY PLUS capital. L.P.
. AXA Equitable
Funds Management
Group, LLC
. EARNEST Partners,
LLC
------------------------------------------------------------------------------------------------------------------
EQ/ENERGY ETF Class IB Seeks long-term capital appreciation. . AXA Equitable
Funds Management
Group, LLC
------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Class IB Seeks to achieve a total return before . AllianceBernstein
expenses that approximates the total L.P.
return performance of the Standard &
Poor's 500 Composite Stock Price Index,
including reinvestment of dividends, at a
risk level consistent with that of the
Standard & Poor's 500 Composite Stock
Price Index.
------------------------------------------------------------------------------------------------------------------
EQ/GAMCO MERGERS Class IB Seeks to achieve capital appreciation. . GAMCO Asset
AND ACQUISITIONS Management, Inc.
------------------------------------------------------------------------------------------------------------------
EQ/GAMCO SMALL Class IB Seeks to maximize capital appreciation. . GAMCO Asset
COMPANY VALUE 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
------------------------------------------------------------------------------------------------------------------
22
CONTRACT FEATURES AND BENEFITS
------------------------------------------------------------------------------------------------------------------
INVESTMENT
EQ ADVISORS MANAGER (OR
TRUST PORTFOLIO SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE Class IB Seeks to achieve a total return before . AXA Equitable
GOVERNMENT BOND expenses that approximates the total Funds Management
return performance of the Barclays Group, LLC
Intermediate U.S. Government Bond . SSgA Funds
Index, including reinvestment of Management, Inc.
dividends, at a risk level consistent with
that of the Barclays Intermediate U.S.
Government Bond Index.
------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL Class IB Seeks to achieve a total return (before . AllianceBernstein
EQUITY INDEX expenses) that approximates the total L.P.
return performance of a composite 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/LARGE CAP GROWTH Class IB Seeks to achieve a total return before . AllianceBernstein
INDEX expenses that approximates the total L.P.
return performance of the 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 Class IB Seeks to achieve a total return before . SSgA Funds
INDEX 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/LOW VOLATILITY Class IB Seeks long-term capital appreciation with . AXA Equitable
GLOBAL ETF lower absolute volatility than the broad Funds Management
equity markets. Group, LLC
------------------------------------------------------------------------------------------------------------------
EQ/MFS Class IB Seeks to achieve capital appreciation. . Massachusetts
INTERNATIONAL Financial
GROWTH Services Company
d/b/a MFS
Investment
Management
------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX Class IB Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the Standard &
Poor's Mid Cap 400 Index, including
reinvestment of dividends, at a risk level
consistent with that of the Standard &
Poor's Mid Cap 400 Index.
------------------------------------------------------------------------------------------------------------------
EQ/MONEY MARKET Class IB Seeks to obtain a high level of current . The Dreyfus
income, preserve its assets and maintain Corporation
liquidity.
------------------------------------------------------------------------------------------------------------------
EQ/MORGAN STANLEY Class IB Seeks to achieve capital growth. . Morgan Stanley
MID CAP GROWTH Investment
Management Inc.
------------------------------------------------------------------------------------------------------------------
EQ/OPPENHEIMER Class IB Seeks to achieve capital appreciation. . OppenheimerFunds,
GLOBAL Inc.
------------------------------------------------------------------------------------------------------------------
EQ/PIMCO GLOBAL Class IB Seeks to achieve maximum real return, . Pacific
REAL RETURN consistent with preservation of capital Investment
and prudent investment management. Management
Company LLC
------------------------------------------------------------------------------------------------------------------
23
CONTRACT FEATURES AND BENEFITS
-----------------------------------------------------------------------------------------------------------------
INVESTMENT
EQ ADVISORS MANAGER (OR
TRUST PORTFOLIO SUB-ADVISER(S), AS VOLATILITY
NAME SHARE CLASS OBJECTIVE APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA Class IB Seeks to generate a return in excess of . Pacific
SHORT BOND traditional money market products while Investment
maintaining an emphasis on preservation Management
of capital and liquidity. Company LLC
-----------------------------------------------------------------------------------------------------------------
EQ/REAL ESTATE PLUS Class IB Seeks to provide long-term capital . AllianceBernstein
appreciation and current income. L.P.
. AXA Equitable
Funds Management
Group, LLC
. Pacific
Investment
Management
Company LLC
-----------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY Class IB Seeks to replicate as closely as possible . AllianceBernstein
INDEX (before expenses) the total return of the L.P.
Russell 2000 Index.
-----------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE Class IB Seeks to achieve long-term capital . T. Rowe Price
GROWTH STOCK appreciation and secondarily, income. Associates, Inc.
-----------------------------------------------------------------------------------------------------------------
MULTIMANAGER Class IB Seeks to achieve long-term growth of . Allianz Global
TECHNOLOGY capital. Investors U.S. LLC
. AXA Equitable
Funds Management
Group, LLC
. SSgA Funds
Management, Inc.
. Wellington
Management
Company, LLP
--------------------------------------------------------------------------------------------------------------------
AIM VARIABLE
INSURANCE FUNDS
(INVESCO VARIABLE
INSURANCE
FUNDS) - SERIES II INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------------------
INVESCO V.I. The Fund's investment objective is total return with a low to . Invesco Advisers, Inc.
BALANCED-RISK moderate correlation to traditional financial market indices.
ALLOCATION FUND
--------------------------------------------------------------------------------------------------------------------
INVESCO V.I. GLOBAL The fund's investment objective is long-term growth of capital. . Invesco Advisers, Inc.
HEALTH CARE FUND
--------------------------------------------------------------------------------------------------------------------
INVESCO V.I. GLOBAL The fund's investment objective is total return through . Invesco Advisers, Inc.
REAL ESTATE FUND growth of capital and current income. . Invesco Asset Management
Limited
--------------------------------------------------------------------------------------------------------------------
INVESCO V.I. HIGH The fund's investment objective is total return, comprised . Invesco Advisers, Inc.
YIELD FUND of current income and capital appreciation.
--------------------------------------------------------------------------------------------------------------------
INVESCO V.I. The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
INTERNATIONAL capital.
GROWTH FUND
--------------------------------------------------------------------------------------------------------------------
INVESCO V.I. SMALL The fund's investment objective is long-term growth of . Invesco Advisers, Inc.
CAP EQUITY FUND capital.
<R>
--------------------------------------------------------------------------------------------------------------
AB
VARIABLE PRODUCT
SERIES FUND, INC.
- CLASS B INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------------
AB VPS GLOBAL The Portfolio's investment objective is long-term growth . AllianceBernstein L.P.
THEMATIC GROWTH of capital.
(formerly
AllianceBernstein
VPS Global
Thematic Growth)
--------------------------------------------------------------------------------------------------------------
AB VPS GROWTH AND The Portfolio's investment objective is long-term growth . AllianceBernstein L.P.
INCOME (formerly of capital.
AllianceBernstein
VPS Growth and
Income)
--------------------------------------------------------------------------------------------------------------
AB VPS REAL ESTATE The Portfolio's investment objective is total return from . AllianceBernstein L.P.
INVESTMENT long-term growth of capital and income.
(formerly
AllianceBernstein
VPS Real Estate
Investment)
--------------------------------------------------------------------------------------------------------------
</R>
24
CONTRACT FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------------------------------------
AB
VARIABLE PRODUCT
SERIES FUND, INC.
- CLASS B INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
AB VPS SMALL/MID The Portfolio's investment objective is long-term growth . AllianceBernstein L.P.
CAP VALUE of capital.
(formerly
AllianceBernstein
VPS Small/Mid Cap
Value)
</R>
---------------------------------------------------------------------------------------------------------------------
ALPS VARIABLE
INVESTMENT TRUST -
CLASS III SHARES INVESTMENT ADVISOR (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISOR(S), AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------------
ALPS | RED ROCK To seek to maximize total return, which consists of appreciation . ALPS Advisors, Inc/Red
LISTED PRIVATE on its investments and a variable income stream. Rocks Capital, LLC
EQUITY PORTFOLIO
------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY
VARIABLE
PORTFOLIOS, INC. -
CLASS II INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP The fund pursues long-term total return using a strategy that . American Century
INFLATION seeks to protect against U.S. inflation. Investment Management,
PROTECTION FUND Inc.
------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP The fund seeks long-term capital growth. Income is a . American Century
MID CAP VALUE FUND secondary objective. Investment Management,
Inc.
----------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS
INSURANCE
SERIES(R) - CLASS
4 SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE
----------------------------------------------------------------------------------------------------------------
ASSET ALLOCATION The Fund's investment objective is to provide you with . Capital Research and
FUND/SM/ high total return (including income and capital gains) Management Company
consistent with preservation of capital over the long term.
----------------------------------------------------------------------------------------------------------------
GLOBAL GROWTH The fund's investment objective is to provide you with . Capital Research and
FUND/SM/ long-term growth of capital. Management Company
----------------------------------------------------------------------------------------------------------------
GROWTH-INCOME The fund's investment objectives are to achieve long-term . Capital Research and
FUND/SM/ growth of capital and income. Management Company
----------------------------------------------------------------------------------------------------------------
GLOBAL SMALL The fund's investment objective is to provide you with . Capital Research and
CAPITALIZATION long-term growth of capital. Management Company
FUND/SM/
----------------------------------------------------------------------------------------------------------------
INTERNATIONAL The fund's investment objective is to provide you with long- . Capital Research and
GROWTH AND INCOME term growth of capital while providing current income. Management Company
FUND/SM/
----------------------------------------------------------------------------------------------------------------
NEW WORLD FUND(R) The fund's investment objective is long-term capital . Capital Research and
appreciation. Management Company
----------------------------------------------------------------------------------------------------------------
BLACKROCK VARIABLE
SERIES
FUNDS, INC. -
CLASS III INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------
BLACKROCK GLOBAL To seek high total investment return. . BlackRock Advisors, LLC
ALLOCATION V.I.
FUND
------------------------------------------------------------------------------------------
BLACKROCK GLOBAL To seek long-term growth of capital. . BlackRock Advisors, LLC
OPPORTUNITIES
V.I. FUND
-----------------------------------------------------------------------------------------------------------
DELAWARE VIP(R)
TRUST - SERVICE
CLASS INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-----------------------------------------------------------------------------------------------------------
DELAWARE VIP(R) Seeks maximum total return, consistent with reasonable . Delaware Management
DIVERSIFIED risk. Company
INCOME SERIES
-----------------------------------------------------------------------------------------------------------
DELAWARE VIP(R) Seeks long-term capital appreciation. . Delaware Management
EMERGING MARKETS Company
SERIES
-----------------------------------------------------------------------------------------------------------
DELAWARE VIP(R) Seeks maximum total return, consistent with reasonable . Delaware Management
LIMITED-TERM risk. Company
DIVERSIFIED
INCOME SERIES
-----------------------------------------------------------------------------------------------
EATON VANCE
VARIABLE TRUST INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-----------------------------------------------------------------------------------------------
EATON VANCE VT To provide a high level of current income. . Eaton Vance Management
FLOATING-RATE
INCOME FUND
------------------------------------------------------------------------------------------------------------
FEDERATED
INSURANCE SERIES -
SERVICE SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------
FEDERATED HIGH Seeking high current income by investing primarily in a . Federated Investment
INCOME BOND FUND professionally managed, diversified portfolio of fixed- Management Company
II income securities.
------------------------------------------------------------------------------------------------------------
25
CONTRACT FEATURES AND BENEFITS
-------------------------------------------------------------------------------------------------------------
FEDERATED
INSURANCE SERIES -
SERVICE SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
FEDERATED KAUFMANN Seeking capital appreciation by investing principally in . Federated Equity
FUND II common stocks. Management Company of
Pennsylvania
. Sub-Adviser: Federated
Global Investment
Management Corporation
------------------------------------------------------------------------------------------------------------
FIDELITY(R)
VARIABLE INSURANCE
PRODUCTS (VIP) -
SERVICE CLASS 2 INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP Seeks long-term capital appreciation. . Fidelity Management &
CONTRAFUND(R) Research Company (FMR)
PORTFOLIO
------------------------------------------------------------------------------------------------------------
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 may also . Fidelity Management &
STRATEGIC INCOME seek capital appreciation. Research Company (FMR)
PORTFOLIO
-------------------------------------------------------------------------------------------------------
FIRST TRUST
VARIABLE INSURANCE
TRUST INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------
FIRST TRUST/DOW Seeks to provide total return by allocating among . First Trust Advisors L.P.
JONES DIVIDEND & dividend-paying stocks and investment grade bonds.
INCOME ALLOCATION
PORTFOLIO
-------------------------------------------------------------------------------------------------------
FIRST TRUST MULTI Seeks to maximize current income, with a secondary . First Trust Advisors L.P.
INCOME ALLOCATION objective of capital appreciation.
PORTFOLIO
-------------------------------------------------------------------------------------------------------
FRANKLIN TEMPLETON
VARIABLE INSURANCE
PRODUCTS TRUST -
CLASS 2 INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------
FRANKLIN FOUNDING The Fund's principal investment goal is capital . Fund Administrator:
FUNDS ALLOCATION appreciation. Its secondary goal is income. Franklin Templeton
VIP FUND Services, LLC
----------------------------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP Seeks to maximize income while maintaining prospects . Franklin Advisers, Inc.
FUND for capital appreciation.
----------------------------------------------------------------------------------------------------------------
FRANKLIN MUTUAL The Fund's principal investment goal is capital . Franklin Mutual Advisers,
SHARES VIP FUND appreciation. Its secondary goal is income. LLC
----------------------------------------------------------------------------------------------------------------
FRANKLIN RISING Seeks long-term capital appreciation, with preservation of . Franklin Advisory
DIVIDENDS VIP FUND capital as an important consideration. Services, LLC
----------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL Seeks high current income, consistent with preservation of . Franklin Advisers, Inc.
BOND VIP FUND capital. Capital appreciation is a secondary consideration.
-----------------------------------------------------------------------------------------------------------
GUGGENHEIM
VARIABLE TRUST INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-----------------------------------------------------------------------------------------------------------
GUGGENHEIM VIF The Fund seeks to generate positive total returns over . Security Investors, LLC,
GLOBAL MANAGED time. which operates under the
FUTURES STRATEGY name Guggenheim
FUND Investments.
-----------------------------------------------------------------------------------------------------------
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 Company, LLC
FUND . Sub-Adviser: Wellington
Management Company LLP
-----------------------------------------------------------------------------------------
HARTFORD GROWTH The Fund seeks capital appreciation. . Hartford Funds Management
OPPORTUNITIES HLS Company, LLC
FUND . Sub-Adviser: Wellington
Management Company LLP
-------------------------------------------------------------------------------------
IVY FUNDS VARIABLE
INSURANCE
PORTFOLIOS INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------
IVY FUNDS VIP ASSET To seek to provide total return. . Waddell & Reed Investment
STRATEGY Management Company
(WRIMCO)
-------------------------------------------------------------------------------------
26
CONTRACT FEATURES AND BENEFITS
--------------------------------------------------------------------------------------------------------
IVY FUNDS VARIABLE
INSURANCE
PORTFOLIOS INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------------------------------
IVY FUNDS VIP ENERGY To seek to provide capital growth and appreciation. . Waddell & Reed Investment
Management Company
(WRIMCO)
--------------------------------------------------------------------------------------------------------
IVY FUNDS VIP MICRO To seek to provide growth of capital. . Waddell & Reed Investment
CAP GROWTH Management Company
(WRIMCO)
. Sub-Adviser: Wall Street
Associates, LLC (WSA)
--------------------------------------------------------------------------------------------------------
IVY FUNDS VIP To seek to provide growth of capital. . Waddell & Reed Investment
SCIENCE AND Management Company
TECHNOLOGY (WRIMCO)
<R>
</R>
<R>
JANUS ASPEN SERIES
-
SERVICE SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
BALANCED PORTFOLIO Seeks long-term capital growth, consistent with . Janus Capital Management
preservation of capital and balanced by current income. LLC
-------------------------------------------------------------------------------------------------------------
FLEXIBLE BOND Seeks to obtain maximum total return, consistent with . Janus Capital Management
PORTFOLIO preservation of capital. LLC
-------------------------------------------------------------------------------------------------------------
JANUS ASPEN INTECH Seeks capital appreciation. . INTECH Investment
U.S. LOW Management LLC
VOLATILITY
PORTFOLIO
-------------------------------------------------------------------------------------------------------------
JPMORGAN INSURANCE
TRUST - CLASS 2
SHARES
PORTFOLIO NAME OBJECTIVE INVESTMENT MANAGER
-------------------------------------------------------------------------------------------------------------
JPMORGAN INSURANCE The Portfolio seeks to maximize long-term total return. . J.P. Morgan Investment
TRUST GLOBAL Management Inc.
ALLOCATION
PORTFOLIO
-------------------------------------------------------------------------------------------------------------
JPMORGAN INSURANCE The Portfolio seeks to maximize income while maintaining . J.P. Morgan Investment
TRUST INCOME prospects for capital appreciation. Management Inc.
BUILDER PORTFOLIO
</R>
------------------------------------------------------------------------------------------
LAZARD RETIREMENT
SERIES, INC. -
SERVICE SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------
LAZARD RETIREMENT Seeks long-term capital appreciation. . Lazard Asset Management
EMERGING MARKETS LLC
EQUITY PORTFOLIO
<R>
---------------------------------------------------------------------------------------------------------------
LEGG MASON
PARTNERS VARIABLE
EQUITY TRUST -
SHARE CLASS II INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S),AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------
CLEARBRIDGE The fund seeks capital appreciation. . Legg Mason Partners Fund
VARIABLE Advisor, LLC (Investment
AGGRESSIVE GROWTH Manager)
PORTFOLIO . Sub-Adviser: ClearBridge
Investments, LLC
---------------------------------------------------------------------------------------------------------------
CLEARBRIDGE The fund seeks dividend income, growth of dividend . Legg Mason Partners Fund
VARIABLE DIVIDEND income and long-term capital appreciation. Advisor, LLC (Investment
STRATEGY Manager)
PORTFOLIO . Sub-Adviser: ClearBridge
(formerly Investments, LLC
ClearBridge
Variable Equity
Income)
---------------------------------------------------------------------------------------------------------------
QS LEGG MASON The fund seeks the highest total return (that is, a . Legg Mason Partners Fund
DYNAMIC MULTI- combination of income and long-term capital Advisor, LLC (Investment
STRATEGY VIT appreciation) over time consistent with its asset mix. The Manager)
PORTFOLIO fund will seek to reduce volatility as a secondary . Sub-Adviser: QS Legg
objective. Mason Global Asset
Allocation, LLC
. Sub-Adviser: Western
Asset Management Company
</R>
------------------------------------------------------------------------------------------------------------
LORD ABBETT SERIES
FUND, INC. - INVESTMENT MANAGER
CLASS VC (OR SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------------------------
LORD ABBETT BOND The fund's investment objective is to seek high current . Lord, Abbett & Co. LLC
DEBENTURE income and the opportunity for capital appreciation to
PORTFOLIO (VC) produce a high total return.
------------------------------------------------------------------------------------------------------------
27
CONTRACT FEATURES AND BENEFITS
-------------------------------------------------------------------------------------------------------------
MFS(R) VARIABLE
INSURANCE TRUSTS - INVESTMENT MANAGER
SERVICE CLASS (OR SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
MFS(R) The fund's investment objective is to seek capital . Massachusetts Financial
INTERNATIONAL appreciation. Services Company
VALUE PORTFOLIO
-------------------------------------------------------------------------------------------------------------
MFS(R) INVESTORS The fund's investment objective is to seek capital . Massachusetts Financial
TRUST SERIES appreciation. Services Company
-------------------------------------------------------------------------------------------------------------
MFS(R) RESEARCH The fund's investment objective is to seek capital . Massachusetts Financial
SERIES appreciation. Services Company
-------------------------------------------------------------------------------------------------------------
MFS(R) UTILITIES The fund's investment objective is to seek total return. . Massachusetts Financial
SERIES Services Company
-------------------------------------------------------------------------------------------------------------
MFS(R) VALUE SERIES The fund's investment objective is to seek capital . Massachusetts Financial
appreciation. Services Company
------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN
ADVISERS
MANAGEMENT TRUST - INVESTMENT MANAGER
S CLASS SHARES (OR SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN The fund seeks capital appreciation with an emphasis on . Neuberger Berman
ABSOLUTE RETURN absolute (i.e., positive) returns. Management LLC
MULTI-MANAGER
PORTFOLIO
------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN The fund seeks long-term growth of capital by investing . Neuberger Berman
INTERNATIONAL primarily in common stocks of foreign companies. Management LLC
EQUITY PORTFOLIO/
/(Formerly
Neuberger Berman
International
Portfolio)
------------------------------------------------------------------------------------------------------------------
NORTHERN LIGHTS INVESTMENT MANAGER
VARIABLE TRUST (OR SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
------------------------------------------------------------------------------------------------------------------
7TWELVE/TM/ The Portfolio seeks to provide superior risk-adjusted returns . 7Twelve Advisors, LLC
BALANCED PORTFOLIO when compared to the bond and equity markets in general.
----------------------------------------------------------------------------------------------------------------
PIMCO VARIABLE
INSURANCE TRUST -
ADMINISTRATIVE INVESTMENT MANAGER
CLASS (OR SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
----------------------------------------------------------------------------------------------------------------
PIMCO GLOBAL BOND Seeks maximum total return, consistent with preservation of . Pacific Investment
PORTFOLIO capital and prudent investment management. Management Company LLC
(UNHEDGED)
----------------------------------------------------------------------------------------------------------------
PIMCO VARIABLE
INSURANCE TRUST - INVESTMENT MANAGER
ADVISOR CLASS (OR SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-----------------------------------------------------------------------------------------------------------------------
PIMCO Seeks maximum real return consistent with prudent investment . Pacific Investment
COMMODITYREALRETURN(R) management. Management Company LLC
STRATEGY PORTFOLIO
-----------------------------------------------------------------------------------------------------------------------
PIMCO EMERGING Seeks maximum total return, consistent with preservation of . Pacific Investment
MARKETS BOND capital and prudent investment management. Management Company LLC
PORTFOLIO
-----------------------------------------------------------------------------------------------------------------------
PIMCO GLOBAL The Portfolio seeks total return which exceeds that of a blend . Pacific Investment
MULTI-ASSET of 60% MSCI World Index/40% Barclay's U.S. Aggregate Management Company LLC
MANAGED Index.
ALLOCATION
PORTFOLIO
-----------------------------------------------------------------------------------------------------------------------
PIMCO TOTAL RETURN Seek maximum total return, consistent with preservation of . Pacific Investment
PORTFOLIO capital and prudent investment management. Management Company LLC
---------------------------------------------------------------------------------------------------------------------
PUTNAM VARIABLE
TRUST - IB SHARE
CLASS INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------------
PUTNAM VT ABSOLUTE Seeks to earn a positive total return that exceeds the return on . Putnam Investment
RETURN 500 FUND U.S. Treasury bills by 500 basis points (or 5.00%) on an Management, LLC
annualized basis over a reasonable period of time (generally at . The Putnam Advisory
least three years or more) regardless of market conditions. Company, LLC
. Putnam Investments
Limited, LLC
---------------------------------------------------------------------------------------------------------------------
PUTNAM VT Seeks high a level of current income as Putnam Investment . Putnam Investment
DIVERSIFIED Management, LLC believes is consistent with preservation of Management, LLC
INCOME FUND capital. . Putnam Investments
Limited, LLC
---------------------------------------------------------------------------------------------------------------------
PUTNAM VT GLOBAL Seeks long-term return consistent with preservation of . Putnam Investment
ASSET ALLOCATION capital. Management, LLC
FUND . Putnam Investments
Limited.
. The Putnam Advisory
Company, LLC
---------------------------------------------------------------------------------------------------------------------
28
CONTRACT FEATURES AND BENEFITS
--------------------------------------------------------------------------------
PUTNAM VARIABLE
TRUST - IB SHARE
CLASS INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
--------------------------------------------------------------------------------
PUTNAM VT RESEARCH Seeks capital appreciation. . Putnam Investment
FUND Management, LLC
. Putnam Investments
Limited.
. The Putnam Advisory
Company, LLC
------------------------------------------------------------------------------------------------------------
SEI INSURANCE
PRODUCT TRUST INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
------------------------------------------------------------------------------------------------------------
SEI VP Balanced Capital appreciation while maintaining broad equity and . SEI Investments
Strategy Fund fixed income market participation. Management Corporation
------------------------------------------------------------------------------------------------------------
SEI VP Conservative Manage risk of loss while providing the opportunity for . SEI Investments
Strategy Fund modest capital appreciation. Management Corporation
------------------------------------------------------------------------------------------------------------
SEI VP Market Capital appreciation while maintaining broad equity and . SEI Investments
Growth Strategy fixed income market participation. Management Corporation
Fund
------------------------------------------------------------------------------------------------------------
SEI VP Market Plus Long-term capital appreciation. . SEI Investments
Strategy Fund Management Corporation
------------------------------------------------------------------------------------------------------------
SEI VP Moderate Capital appreciation, while managing the risk of loss. . SEI Investments
Strategy Fund Management Corporation
------------------------------------------------------------------------------------------------------------
T. ROWE PRICE
EQUITY SERIES, INC. INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------
T. ROWE PRICE Seeks a high level of dividend income and long-term . T. Rowe Price Associates,
EQUITY INCOME capital growth primarily through investments in stocks. Inc.
PORTFOLIO - II
-------------------------------------------------------------------------------------------------------------
T. ROWE PRICE Seeks long-term capital appreciation. . T. Rowe Price Associates,
HEALTH SCIENCES Inc.
PORTFOLIO - II
-------------------------------------------------------------------------------------------------------------
VAN ECK VIP TRUST
- INITIAL SHARES INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
----------------------------------------------------------------------------------------------------------
VAN ECK VIP Seeks high total return -- income plus capital . Van Eck Associates
UNCONSTRAINED appreciation -- by investing globally, primarily in a Corporation
EMERGING MARKETS variety of debt securities.
BOND FUND
-------------------------------------------------------------------------------------------------------------------
VAN ECK VIP TRUST
- S CLASS INVESTMENT MANAGER (OR
PORTFOLIO NAME OBJECTIVE SUB-ADVISER(S), AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------------
VAN ECK VIP GLOBAL Seeks long-term capital appreciation by investing primarily in . Van Eck Associates
HARD ASSETS FUND hard asset securities. Income is a secondary consideration. Corporation
-------------------------------------------------------------------------------------------------------------------
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVE, 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.
29
CONTRACT FEATURES AND BENEFITS
ALLOCATING YOUR CONTRIBUTIONS
Your initial contribution and any subsequent contributions will be allocated
according to the investment allocations on file. If you would like your
subsequent contributions to be allocated differently, you must submit (either
in writing or electronically, depending on the form being used) new allocation
instructions on a form that we provide. The maximum number of investment
options that may be listed in your allocation instructions on file or for
rebalancing (whether scheduled/recurring or one time) is 100.
TRANSFERS. Generally, you may transfer your account value among the variable
investment options. We may, at any time, exercise our right to terminate
transfers to any of the variable investment options, to add variable investment
options, and to limit the number of variable investment options which you may
elect.
Transfer requests do not change the allocation instructions on file for any
future contribution or scheduled/recurring rebalancing. This means that upon
the next scheduled/recurring rebalancing, we will transfer amounts among your
investment options pursuant to the allocation instructions previously on file
for your account. For more information about transferring your account value,
please see "Transferring your money among investment options" later in this
Prospectus.
You may also provide instructions for a one-time rebalancing of your account.
ALLOCATION INSTRUCTION CHANGES. You may change your instructions for
allocations of future contributions. Please note that an allocation change for
future contributions will not automatically change the scheduled/recurring
rebalancing instructions on file for your account.
YOUR RESPONSIBILITY FOR ALLOCATION DECISIONS
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 select investment allocations and make
other decisions under the contract. 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. If your financial professional is a registered
representative with a broker-dealer other than AXA Advisors, you should speak
with him/her regarding any different arrangements that may apply.
DOLLAR COST AVERAGING
We offer a dollar cost averaging program via scheduled transfers from the
EQ/Money Market investment option to the other available variable investment
options. The program allows you to gradually allocate amounts to available
variable investment options by periodically transferring approximately the same
dollar amount to the variable 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. This
plan of investing, however, does not guarantee that you will earn a profit or
be protected against losses. We may, at any time, exercise our right to
terminate transfers to any of the variable investment options, to add variable
investment options, and to limit the number of variable investment options
which you may elect. For NQ contracts, existing dollar cost averaging programs
will continue after the election of an Income Edge payment program.
--------------------------------------------------------------------------------
UNITS MEASURE YOUR VALUE IN EACH VARIABLE INVESTMENT OPTION.
--------------------------------------------------------------------------------
You may dollar cost average from the EQ/Money Market investment option, subject
to the following:
.. Initial contributions to the program must be at least $5,000 (i.e., your
value in the EQ/Money Market variable investment option must be at least
$5,000 when you begin the program).
.. Contributions into the program may be new contributions, or you may
transfer amounts allocated to other variable investment options to initiate
the program. You can make additional contributions to a program after a
program has started.
.. You may choose either a 3 month, 6 month, or 12 month time period for
participation in the dollar cost averaging program; however, you may only
have one time period in effect at any time and once you select a time
period, you may not change it and subsequent contributions or transfers
into the program will not extend the duration of an existing program.
.. Currently, your account value may only be transferred from the program into
the variable investment options on a monthly basis. We may offer these
programs in the future with transfers on a different basis.
.. For the program, you may select different variable investment options than
those in your allocation instructions on file, except that you may not do
so on your initial application for the contract.
.. If the value in the EQ/Money Market variable investment option is less than
or equal to the scheduled transfer amount, the entire amount in the account
will be transferred and the program will terminate.
.. You can enroll in a dollar cost averaging program on your contract
application or at any time after your contract has been issued. A program
will become effective on the date we receive your first contribution
directing us to allocate funds to the EQ/Money Market variable investment
option. 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 dollar cost averaging 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.
30
CONTRACT FEATURES AND BENEFITS
.. 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 program that we have on
file for you, and your program will terminate.
.. The scheduled/recurring rebalancing program is available while the dollar
cost averaging program is in effect, and for NQ contracts, remains
available after election of an Income Edge payment program.
.. You may cancel your participation in the program at any time by notifying
us in writing. If you terminate your program, we will allocate any
remaining amounts in your program pursuant to your program allocations
instructions on file.
We do not deduct a transfer charge for any transfer made in connection with our
dollar cost averaging program. Note that participation in the dollar cost
averaging program is not cancelled by your request for a one-time rebalancing
of your account. The dollar cost averaging program is not available in all
states. See Appendix III later in this Prospectus for more information on state
availability.
BREAKPOINT CREDIT
(INVESTMENT EDGE(R) AND INVESTMENT EDGE(R) SELECT CONTRACTS ONLY)
If you are an Investment Edge(R) or Investment Edge Select(R) contract owner,
you may be eligible for an annual reduction in the Contract fee of up to 0.10%
of your account value. This credit, which we refer to as the Breakpoint Credit
("BPC") is calculated quarterly and credited to your account annually as
follows:
.. On each Valuation Date, if your account value is at least equal to the BPC
Threshold, we will calculate a credit equal to 0.025% of your account value
on that Valuation Date. We will then credit your account with the aggregate
BPC on the Crediting Date. "Valuation Date", "BPC Threshold" and "Crediting
Date" are defined below.
.. There are four Valuation Dates each year: (a) Three "quarterversaries",
which are the dates that occur every three months on the same calendar day
as your Contract Date, but excluding your contract date anniversary) and
(b) your contract date anniversary. If a quarterversary falls on a
non-Business Day, the Valuation Date for that quarterversary will be the
next Business Day. If your Contract Date falls after the 28th of a month,
the Valuation Date for each quarterversary will be the first Business Day
of the following month. If your contract date anniversary occurs on a day
other than a Business Day, the Valuation Date will be the Business Day
immediately preceding your Contract date anniversary.
<R>
.. The BPC Threshold is (a) on a quarterversary Valuation Date, $500,000,
without deduction of any accrued fees for the Protected premium death
benefit (if elected) and without including any accrued BPCs from prior
quarterversaries; and (b) on the contract date anniversary Valuation Date,
$500,000, after deduction of all fees and charges.
</R>
.. The Crediting Date is the date on which we credit your account with the
BPC, and is the Valuation Date associated with your contract date
anniversary.
.. If during a contract year your account value meets the BPC Threshold on one
or more, but not all, Valuation Dates, you will be credited with the
aggregate accrued BPC for the Valuation Dates on which your account value
did meet the BPC Threshold. For example, if your account value satisfied
the BPC Threshold on the first and third quarterversaries, but not on the
second quarterversary or your contract date anniversary, your account will
be credited on the Crediting Date with the aggregate BPC calculated for
your first and third quarterversaries.
.. On the Crediting Date, the BPC will be credited to your account pro rata
according to your allocation instructions on file. If you have set up a
dollar cost averaging program, the BPC will be credited according to your
allocation instructions for the dollar cost averaging program.
.. The BPC is not a contribution for purposes of the rules governing
contributions to your contract.
.. Upon your death, or if you surrender or annuitize your contract, we will
credit your account with a prorated amount of any accrued BPC.
.. If you elect an Income Edge payment program, you will continue to be
eligible for the BPC in accordance with the rules above. Valuation Dates
for quarterversaries will be determined based on your Income Edge
Anniversary Date and your account will be credited with the BPC on your
Income Edge Anniversary Date. Any BPC amounts that had accrued prior to
your Income Edge payment program election will be credited on your Income
Edge Effective Date.
.. Investment Edge(R) ADV contract owners are not eligible for the BPC.
EXAMPLE: BPC CALCULATION
------------------------------------------------------------------------------------------------
ELIGIBLE
ACCOUNT FOR
VALUATION DATE VALUE BPC? BPC AMOUNT
------------------------------------------------------------------------------------------------
First Quarterversary $480,000 No $0
------------------------------------------------------------------------------------------------
Second Quarterversary $530,000 Yes $132.50 ($530,000 * 0.025%)
------------------------------------------------------------------------------------------------
Third Quarterversary $520,000 Yes $130.00 ($520,000 * 0.025%)
------------------------------------------------------------------------------------------------
Contract anniversary date $550,000 Yes $137.50 ($550,000 * 0.025%)
------------------------------------------------------------------------------------------------
The BPC that will be credited to your account on the Crediting Date is $400.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under certain annuity payout options. Annuity payout options are
discussed under "Your annuity payout options" in "Accessing your money" later
in this Prospectus. Annuity purchase
31
CONTRACT FEATURES AND BENEFITS
factors are based on interest rates, mortality tables, frequency of payments,
the form of annuity benefit, 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.
PROTECTED PREMIUM DEATH BENEFIT
At issue, you may elect the optional Protected premium death benefit (PPDB).
The PPDB is equal to the greater of (a) your Protected premium death benefit
base on the date of death and (b) your account value on the date of claim.
The Protected premium death benefit base is not an account value or cash value.
It is equal to:
.. your initial contribution and any subsequent contributions to your
contract, less
.. a deduction that reflects any withdrawals you make (including any
applicable withdrawal charges). The way we calculate this deduction is
described in "Pro rata treatment of withdrawals" below.
The date of claim is the date on which we receive satisfactory proof of the
owner's (or older joint owner's, if applicable) death, and any required
instructions for the method of payment, forms necessary to effect payment and
any other information we may require.
For purposes of calculating your PPDB, any accrued but unpaid Breakpoint Credit
amount will be added to your account value and any accrued but unpaid PPDB
charge will be deducted from your account value.
PRO RATA TREATMENT OF WITHDRAWALS. For purposes of calculating your PPDB, any
withdrawals you make from your contract reduce the value of your Protected
premium death benefit base on a pro rata basis. Reduction on a pro rata basis
means that that we calculate the percentage of your current account value that
is being withdrawn (including the amount of any applicable withdrawal charge)
and we reduce your Protected premium death benefit base by the same percentage.
For example, assume your total contributions to your contract are $100,000 and
your account value is $80,000. Prior to any withdrawals, your Protected premium
death benefit base would be $100,000. If you make a $10,000 withdrawal, that
withdrawal represents a 12.5% reduction in your account value. Accordingly,
your Protected premium death benefit base is reduced by 12.5% to $87,500 (12.5%
of $100,000 is $12,500, and $100,000 minus $12,500 is $87,500).
You may terminate the PPDB at any time, and once you do so, you may not reelect
it. The PPDB is not available for election after issue. For NQ contracts, if
you elect an Income Edge payment program, the PPDB will be automatically
terminated on your Income Edge Effective Date.
Please refer to "Protected premium death benefit charge" in "Charges and
expenses" for information about how we calculate the charge for this guaranteed
benefit and, if your account value is low, the risk that this charge could
cause your contract and the guaranteed benefit to terminate.
The PPDB is not available for election by Inherited NQ contract holders.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
THE INHERITED IRA BENEFICIARY CONTINUATION CONTRACT IS INTENDED TO PROVIDE
OPTIONS TO BENEFICIARIES IN COMPLYING WITH FEDERAL INCOME TAX RULES. THERE ARE
A NUMBER OF LIMITATIONS ON WHO CAN PURCHASE THE CONTRACT, HOW THE CONTRACT IS
PURCHASED, AND THE FEATURES THAT ARE AVAILABLE UNDER THE CONTRACT. A
PROSPECTIVE PURCHASER SHOULD SEEK TAX ADVICE BEFORE MAKING A DECISION TO
PURCHASE THE CONTRACT.
We offer the Inherited IRA beneficiary continuation contract to eligible
beneficiaries under individual retirement arrangements (traditional or Roth)
where the original individual retirement account or annuity was not issued by
AXA Equitable. The beneficiary may want to change the investments of the
"original IRA" inherited from the now-deceased IRA owner, but must take
post-death required minimum distribution ("RMD") payments from an IRA that was
inherited. The Inherited IRA beneficiary continuation contract has provisions
intended to meet post-death RMD rules, which are similar to those of the
Beneficiary continuation option ("BCO") restricted to eligible beneficiaries of
contracts issued by AXA Equitable. See "Beneficiary continuation option for
traditional IRA and Roth IRA contracts only" under "Beneficiary continuation
option" in "Payment of death benefit" later in this Prospectus. Further, since
the Inherited IRA beneficiary continuation contract is intended to replace the
investment originally selected by the now-deceased IRA owner, a prospective
purchaser should carefully consider the features and investments available
under the Inherited IRA beneficiary continuation contract, and the limitations
and costs under the contract in comparison with the existing arrangement before
making any purchase decision. Distributions from an Inherited IRA beneficiary
continuation contract must begin no later than December 31 of the year
following the date of death of the original IRA owner. Finally, the contract
may not be available in all states. Please speak with your financial
professional for further information.
WHO CAN PURCHASE AN INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
The Inherited IRA beneficiary continuation contract is offered only to
beneficiaries of non-AXA Equitable contracts as follows:
.. beneficiaries of IRAs who are individuals ("IRA beneficiaries"); and
.. eligible non-spousal individual beneficiaries of deceased plan participants
in qualified plans, 403(b) plans and governmental employer 457(b) plans
("Non-spousal Applicable Plan beneficiaries"). The purpose is to enable
such beneficiaries to elect certain post-death RMD payment choices
available to them under federal income tax rules, which may not be offered
under the Applicable Plan.
Certain trusts with only individual beneficiaries are treated as individuals
and are eligible to purchase the Inherited IRA beneficiary continuation
contract if such trust is either an IRA beneficiary or a Non-spousal Applicable
Plan beneficiary.
HOW AN INHERITED IRA BENEFICIARY CONTINUATION CONTRACT IS PURCHASED
IRA BENEFICIARY. A traditional Inherited IRA beneficiary continuation contract
can only be purchased by a direct transfer of the beneficiary's interest under
the deceased owner's original traditional IRA. An Inherited Roth IRA
beneficiary continuation contract can only be purchased by a direct transfer of
the beneficiary's interest under the deceased owner's original Roth IRA. In this
32
CONTRACT FEATURES AND BENEFITS
discussion, "you" refers to the owner of the Inherited IRA beneficiary
continuation contract. The owner of the Inherited IRA beneficiary continuation
contract owns the contract in his/her capacity as beneficiary of the original
traditional or Roth IRA, and not in his/her own right. For this reason, the
contract must also contain the name of the deceased owner.
NON-SPOUSAL APPLICABLE PLAN BENEFICIARY. In the case of a non-spousal
beneficiary under a deceased plan participant's Applicable Plan, the Inherited
IRA can only be purchased by a direct rollover of the death benefit under the
Applicable Plan. In this discussion, "you" refers to the owner of the Inherited
IRA beneficiary continuation contract. The owner of the Inherited IRA
beneficiary continuation contract owns the contract in his/her capacity as
beneficiary of the deceased plan participant, and not in his/her own right. For
this reason, the contract must also contain the name of the deceased plan
participant. In this discussion, references to "deceased owner" include
"deceased plan participant"; references to "original IRA" include "the deceased
plan participant's interest or benefit under the Applicable Plan", and
references to "individual beneficiary of a traditional IRA" include "individual
non-spousal beneficiary under an Applicable Plan."
LIMITATIONS ON CERTAIN FEATURES UNDER THE INHERITED IRA BENEFICIARY
CONTINUATION CONTRACT
This contract is intended only for beneficiaries who plan to take payments at
least annually over their life expectancy. These payments generally must begin
no later than December 31st of the calendar year following the year the
deceased owner died. Beneficiaries who do not want to take annual scheduled
payments and want to wait until the 5th year after death to withdraw the entire
amount of the Inherited IRA funds should not purchase this contract. Because of
the contract's focus on payments, certain features noted below more suitable to
long-term accumulation vehicles are not available under this contract.
WHEN THE INHERITED IRA BENEFICIARY CONTINUATION CONTRACT IS OWNED BY AN IRA
BENEFICIARY:
.. The Inherited IRA beneficiary continuation contract can be purchased even
though you have already begun taking post-death RMD payments of your
interest as a beneficiary from the deceased owner's original IRA. You
should discuss with your own tax adviser when payments must begin or must
be made.
.. The initial contribution must be a direct transfer from the deceased
owner's original IRA and is subject to minimum contribution amounts. See
Appendix II later in this Prospectus for more information.
.. Subsequent contributions of at least $1,000 are permitted but must be
direct transfers of your interest as a beneficiary from another IRA with a
financial institution other than AXA Equitable, where the deceased owner is
the same as under the original IRA contract.
.. The Inherited IRA contract is designed to pay you at least annually (but
you can elect to receive payments monthly or quarterly). Payments are
generally made over your life expectancy determined in the calendar year
after the deceased owner's death and determined on a term certain basis. If
you maintain another IRA of the same type (traditional or Roth) of the same
deceased owner and you are also taking distributions over your life from
that inherited IRA, you may qualify to take an amount from that other
inherited IRA which would otherwise satisfy the amount required to be
distributed from the AXA Equitable Inherited IRA contract. If you choose
not to take a payment from your Inherited IRA contract in any year, you
must notify us in writing before we make the payment from the Inherited IRA
contract, and we will not make any future payment unless you request in
writing a reasonable time before we make such payment. If you choose to
take a required payment from another inherited IRA, you are responsible for
calculating the appropriate amount and reporting it on your income tax
return. Please feel free to speak with your financial professional, or call
our processing office, if you have any questions.
WHEN THE INHERITED IRA BENEFICIARY CONTINUATION CONTRACT IS OWNED BY A
NON-SPOUSAL APPLICABLE PLAN BENEFICIARY:
.. The initial contribution must be a direct rollover from the deceased plan
participant's Applicable Plan and is subject to minimum contribution
amounts. See Appendix II later in this Prospectus for more information.
.. There are no subsequent contributions.
.. You must receive payments at least annually (but can elect to receive
payments monthly or quarterly). Payments are made over your life expectancy
determined in the calendar year after the deceased owner's death and
determined on a term certain basis. Shorter payment periods are not
permitted.
.. You must receive payments from the Inherited IRA contract even if you are
receiving payments from another IRA derived from the deceased plan
participant.
FEATURES OF THE INHERITED IRA BENEFICIARY CONTINUATION CONTRACT WHICH APPLY TO
EITHER TYPE OF OWNER:
.. The beneficiary of the original IRA (or the Non-spousal Applicable Plan
beneficiary) will be the annuitant under the Inherited IRA beneficiary
continuation contract. In the case where the beneficiary is a "see-through
trust," the oldest beneficiary of the trust will be the annuitant.
.. An inherited IRA beneficiary continuation contract is not available for
owners over age 70.
.. You may make transfers among the investment options. In addition, you may
participate in the dollar cost averaging program.
.. You may choose at any time to withdraw all or a portion of the account
value. Any partial withdrawal must be at least $300. Withdrawal charges
will apply as described in "Charges and expenses" later in this Prospectus.
.. If you die, we will pay to a beneficiary that you choose the account value.
.. Upon your death, your beneficiary has the option to continue taking
required minimum distributions based on your remaining life expectancy 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.
33
CONTRACT FEATURES AND BENEFITS
INHERITED NQ BENEFICIARY PAYOUT CONTRACT
THE INHERITED NQ BENEFICIARY PAYOUT CONTRACT ("INHERITED NQ") IS INTENDED TO
PROVIDE OPTIONS TO INDIVIDUALS WHO ARE BENEFICIARIES UNDER NONQUALIFIED
DEFERRED ANNUITY CONTRACTS ISSUED BY OTHER INSURANCE COMPANIES. QUALIFYING
INDIVIDUALS DIRECT THE ISSUING INSURANCE COMPANY TO EXCHANGE THEIR INTEREST IN
THE ORIGINAL CONTRACT'S DEATH BENEFIT WITH AN INHERITED NQ CONTRACT, WHICH IS
INTENDED TO COMPLY WITH FEDERAL INCOME TAX RULES GOVERNING PAYMENTS FOLLOWING
THE DEATH OF THE HOLDER OF A CONTRACT, WHILE PROVIDING THE INHERITED NQ
CONTRACT OWNER WITH CONTINUING ACCESS TO THE INHERITED NQ CONTRACT'S ACCOUNT
VALUE AS SCHEDULED PAYMENTS ARE MADE.
THERE ARE A NUMBER OF LIMITATIONS ON WHO CAN PURCHASE AN INHERITED NQ CONTRACT,
HOW THE CONTRACT IS PURCHASED, AND THE FEATURES THAT ARE AVAILABLE UNDER THE
CONTRACT. THERE IS A SHORT TIMEFRAME FOR PURCHASING AN INHERITED NQ CONTRACT
AND PROVIDING AXA EQUITABLE WITH ALL OF THE NECESSARY INFORMATION TO MAKE
PAYMENTS. ALSO, WHETHER AN INHERITED NQ CONTRACT CAN BE ISSUED AND THE FORM OF
PAYOUT UNDER THE CONTRACT IS DEPENDENT IN PART ON THE AGREEMENT AND COOPERATION
OF THE INSURANCE COMPANY THAT ISSUED THE ORIGINAL NONQUALIFIED DEFERRED ANNUITY
CONTRACT. BEFORE MAKING A DECISION TO PURCHASE AN INHERITED NQ CONTRACT, A
PROSPECTIVE PURCHASER SHOULD SEEK TAX ADVICE AND REVIEW THE ISSUING INSURANCE
COMPANY'S REQUIREMENTS APPLICABLE TO AN EXCHANGE.
<R>
An Inherited NQ contract is issued as an Investment Edge(R), Investment Edge(R)
Select or Investment Edge(R) ADV series contract. The Inherited NQ contract
provides a non-life contingent, variable annuity payout for the purpose of
distributing to a beneficiary certain payments required after the death of a
"holder" (typically, the owner) of a nonqualified deferred annuity contract. We
offer the Inherited NQ contract to an individual who is a beneficiary upon the
death of the owner under an original nonqualified deferred annuity contract not
issued by AXA Equitable ("source contract"). We offer two payout options under
the Inherited NQ contract, "Income Edge Beneficiary Advantage" and "Beneficiary
NQ Stretch," both of which are described below.
</R>
The beneficiary under the source contract may want to change the investments of
the inherited source contract while still taking the payments required with
respect to the death of the owner of the source contract. The beneficiary may
also want continuing access to the Inherited NQ contract's account value as
scheduled payments are made, and may also wish to elect the contract's Income
Edge Beneficiary Advantage option. SINCE AN INHERITED NQ CONTRACT IS INTENDED
TO REPLACE THE INVESTMENTS ORIGINALLY SELECTED BY THE NOW-DECEASED OWNER OF THE
SOURCE CONTRACT, A PROSPECTIVE PURCHASER SHOULD CAREFULLY CONSIDER THE
INVESTMENTS AND FEATURES AVAILABLE UNDER THE INHERITED NQ CONTRACT (SUCH AS THE
CHOICE BETWEEN THE BENEFICIARY NQ STRETCH AND INCOME EDGE BENEFICIARY ADVANTAGE
PAYOUT METHODS), AND THE LIMITATIONS AND COSTS UNDER THE INHERITED NQ CONTRACT
AS COMPARED TO THE AVAILABLE INVESTMENTS AND FEATURES UNDER THE SOURCE CONTRACT
BEFORE MAKING ANY PURCHASE DECISION.
Since, as discussed below, the Inherited NQ contract can only be purchased
through a Section 1035 exchange, a prospective purchaser should also confirm
with the insurance company that issued the source contract the requirements for
exchanging the death benefit under the source contract with an Inherited NQ
contract. Finally, the Inherited NQ contract may not be available in all
states. Please speak with your financial professional for further information.
<R>
</R>
WHO CAN PURCHASE AN INHERITED NQ CONTRACT
The Inherited NQ contract is offered only to individuals who are death
beneficiaries under non-AXA Equitable nonqualified deferred annuity contracts.
The Inherited NQ contract is not available to non-natural persons or purchasers
over the age of 70. Joint owners or annuitants are not permitted.
The owner of the Inherited NQ contract owns the contract in his/her capacity as
beneficiary of the deceased owner of the source contract. For this reason, the
Inherited NQ contract must also contain the name of the deceased owner.
WHEN CAN AN INHERITED NQ CONTRACT BE PURCHASED
An Inherited NQ contract can only be purchased after the death of the owner of
the source contract and before the first anniversary of the owner's death,
which is the last possible date that scheduled payments under the Inherited NQ
contract must start (the "Required Payment Starting Date").
HOW AN INHERITED NQ CONTRACT IS PURCHASED
An Inherited NQ contract can only be purchased through a Section 1035 exchange
of the beneficiary's interest after the death of the owner under the source
contract. If the source contract is owned by a non-natural owner, the deceased
individual whose death triggers the requirement to make post-death payments
from or with respect to the proceeds of the source contract must have been the
primary annuitant deemed to be the "holder" or owner of the source contract
under federal income tax rules.
The source contract must be a nonqualified deferred annuity contract, and
cannot be a life insurance contract.
An individual may not purchase an Inherited NQ contract if he/she has already
elected, received, or started to receive any form of beneficiary payout in
accordance with Section 72(s) of the Code for his/her share of the death
proceeds of the source contract with the insurance company which issued the
source contract.
An individual must apply the entire value of his/her beneficiary share in the
source contract to the Inherited NQ contract; we do not accept partial
exchanges. The individual need not be the only beneficiary under the source
contract. If the individual is one of several beneficiaries, we will accept an
exchange into the Inherited NQ contact as long as the beneficiary's entire
share under the source contract is exchanged.
Similarly, if the individual is a beneficiary under more than one source
contract owned by the same deceased owner, the individual may direct each
insurance company issuing each such source contract to make a Section 1035
exchange into the Inherited NQ contract. Each of the multiple Section 1035
exchanges must meet the requirements described in this section, and must
include a contribution of at least $1,000.
No contributions will be accepted after we begin scheduled payments under the
Inherited NQ contracts. See the description under "Income Edge Beneficiary
Advantage" below for the requirements regarding provision of cost basis
information.
We must receive all contributions and the information we require from the
insurance company (or companies) that issued the source
34
CONTRACT FEATURES AND BENEFITS
contract(s) in sufficient time for us to begin making scheduled payments under
the Inherited NQ contract, which must be no later than twelve months after the
date of death of the deceased owner of the source contract. Our deadline is
generally 9 months after the date of death of the deceased owner of the source
contract. No additional contributions are allowed once we have begun making
payments.
If the insurance company that issued the source contract does not provide us
with a 1035 exchange contribution and the information we need in a timely
manner, we may not be able to issue the Inherited NQ contract or honor an
election for Income Edge Beneficiary Advantage. See "Payment options under an
Inherited NQ contract" below.
PAYMENT OPTIONS UNDER AN INHERITED NQ CONTRACT
<R>
There are two payment options under the Inherited NQ contract, "Income Edge
Beneficiary Advantage" and "Beneficiary NQ Stretch." We describe these options
and the conditions and limitations that apply to each option later in this
section.
</R>
Regardless of payment option, there are some features, conditions and
limitations that are common to both options:
.. The Inherited NQ contract is intended only for beneficiaries under source
contracts who plan to take payments from the Inherited NQ contract at least
annually over a period measured by their life expectancy. We call these
"scheduled payments." These scheduled payments must begin no later than the
Required Payment Starting Date. Beneficiaries who do not want to take
scheduled payments at least annually and want to wait up to five years
after the death of the owner of the source contract to withdraw the entire
amount of their interest in the source contract should not purchase an
Inherited NQ contract. Because of the Inherited NQ contract's focus on
scheduled payments, certain features more suitable to long-term
accumulation vehicles are not available under the Inherited NQ contract.
.. We have no minimum age requirement for issuing an Inherited NQ contract,
but we will not issue an Inherited NQ contract to an individual over age 70.
.. The Inherited NQ contract owner must receive scheduled payments at least
annually (but can elect to receive scheduled payments monthly or
quarterly). The Inherited NQ contract owner can choose a date to start
scheduled payments earlier than the Required Payment Starting Date, as long
as we have the Section 1035 exchange contribution(s) and information we
need to start scheduled payments on the earlier date.
.. The amount of the first scheduled payment is determined by dividing the
account value as of the date payments begin by the owner's life expectancy.
Each subsequent annual scheduled payment is determined by dividing the
remaining annuity account value as of the anniversary date by the initial
life expectancy, reduced by 1 for each subsequent year.
For example, if on the date of the first scheduled payment your account
value is $100,000 and your life expectancy is 20 years, the amount of the
first scheduled payment will be $5,000. If on the date of the second
scheduled payment your account value is $99,750, the amount of the second
scheduled payment will be $5,200 ($99,750 divided by 19).
.. Payment amounts are taken on a pro rata basis from your variable investment
options.
.. The Inherited NQ contract owner may make transfers among the variable
investment options.
.. Once scheduled payments begin, they cannot be stopped until the account
value falls to zero.
.. No form of annuity benefit other than scheduled payments as described in
this section is available under the Inherited NQ contract.
<R>
.. An Inherited NQ contract owner may choose to withdraw all or a portion of
his/her account value at any time. Any partial withdrawal must be at least
$300. Unlike Income Edge Beneficiary Advantage scheduled payments, no
portion of such withdrawals will represent a return of cost basis in the
contract, and thus will not affect the Tax-Free Amount applicable to
subsequent Income Edge Beneficiary Advantage scheduled payments. Withdrawal
charges will apply, as described in "Charges and expenses" later in this
Prospectus.
</R>
.. Change of ownership of an Inherited NQ contract is not permitted.
.. The Protected premium death benefit is not available under an Inherited NQ
contract.
.. At the death of the Inherited NQ contract owner, we will continue scheduled
payments to a successor beneficiary/owner chosen by the Inherited NQ
contract owner. The successor beneficiary/owner has the same rights as the
Inherited NQ contract owner to take partial withdrawals in addition to
scheduled payments and to fully surrender (redeem) the Inherited NQ
contract. If there is more than one individual or entity chosen by the
Inherited NQ contract owner to be successor beneficiary/owner, we will make
payments in equal shares unless the Inherited NQ contract owner instructed
us in writing to pay one or more successor beneficiary/owner differently.
INCOME EDGE BENEFICIARY ADVANTAGE
Under the Income Edge Beneficiary Advantage payment option for an Inherited NQ
contract ("Income Edge BA"), we take into account the "cost basis" in
calculating and reporting income amounts with respect to scheduled payments. A
portion of each scheduled payment is a return of the cost basis in the contract
and thus excludable from taxes. The "cost basis" in an Inherited NQ contract
with Income Edge BA is the amount of investment in the source contract carried
over from the source contract to the Inherited NQ contract (as reported to us
in the context of the Section 1035 exchange by the insurance company which
issued the source contract), plus or minus any subsequent adjustments.
The payment period for scheduled payments is initially based on the age of the
Inherited NQ contract owner, using an IRS table for post-death payments and
rounding down to the nearest whole number. The Inherited NQ contract owner may
select a shorter payment period, which will generally result in larger payments.
The conditions applicable to an Income Edge BA election are as follows:
.. Income Edge BA must be elected on our form.
35
CONTRACT FEATURES AND BENEFITS
.. The account value of the Inherited NQ contract must be at least $50,000.
.. The account value of the Inherited NQ contract must be greater than the
cost basis reported to us in the context of the Section 1035 exchange by
the insurance company which issued the source contract.
.. We must have received all Section 1035 exchange contributions from each
source contract at least three months prior to the Required Payment
Starting Date.
.. We must have all cost basis information, in good order, from the insurance
company which issued the source contract, at least three months prior to
the Required Payment Starting Date. If there are multiple source contracts
for the same deceased owner, as long as we have cost basis information in
good order for any source contract, we will use that amount as the cost
basis.
.. We may impose a charge approximating premium tax in certain states.
.. If an Inherited NQ contract owner elects Income Edge BA, and we cannot
honor or implement that election because of a failure to meet any of the
conditions for Income Edge BA noted above, we will begin scheduled payments
under the Beneficiary NQ Stretch payment option for the Inherited NQ
contract no later than the Required Payment Starting Date, which is one
year after the date of death of the deceased owner of the source contract.
Income Edge BA payment may not be available in all states. We also offer a
version of Income Edge Beneficiary Advantage as a death benefit option for a
beneficiary under an NQ Investment Edge contract where the contract owner dies
before an annuity option under the contract has been elected. See "Payment of
death benefit" later in this Prospectus.
<R>
Even though the private letter ruling we received from the IRS in connection
with the standard form of Income Edge does not specifically address Income Edge
BA, we believe, based on our review and interpretation of applicable federal
tax law, that the Income Edge BA payout methodology constitutes a series of
"substantially equal periodic payments" over a "period not extending beyond the
life expectancy" of a beneficiary within the applicable requirements of 72(s)
of the Code and therefore complies with current federal tax law requirements
applicable to post-death payouts from variable annuity contracts. See "Income
Edge payment program" under "Tax Information" later in this Prospectus.
</R>
BENEFICIARY NQ STRETCH
Under the Beneficiary NQ Stretch payment option for the Inherited NQ contract,
we do not report all scheduled payments as being a partial return of cost
basis. Instead, we report scheduled payments as taxable to the extent that
there is income in the contract.
Beneficiary NQ Stretch must be elected on our form. However, for an Inherited
NQ contract owner who elected Income Edge BA, Beneficiary NQ Stretch will apply
by default if one or more of the conditions for honoring or implementing an
Income Edge BA election could not be met before the Required Payment Starting
Date.
The payment period is based on the age of the Inherited NQ contract owner,
using an IRS table for post-death payments and rounding down to the nearest
whole number. A shorter payment period may not be elected under Beneficiary NQ
Stretch.
<R>
Beneficiary NQ Stretch is similar to the Beneficiary Continuation Option we
offer to beneficiaries under traditional IRA, Roth IRA and NQ contracts and for
which we received a private letter ruling from the IRS. Based on our
interpretation of the requirements of Section 72(s) of the Code, we believe
that the Beneficiary NQ Stretch payout methodology complies with current
federal tax law requirements applicable to post-death payouts from variable
annuity contracts.
</R>
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply. Please
contact your financial professional and/or see Appendix III to find out what
applies in your state.
Generally, your refund will equal your account value under the contract on the
day we receive notification to cancel the contract and will reflect any
investment gain or loss in the variable investment options (less the daily
charges we deduct), through the date we receive your contract. Some states,
however, require that we refund the full amount of your contribution. In
addition, in some states, the amount of your refund (either your account value
or the full amount of your contributions), and the length of your "free look"
period, depend on whether you purchased the contract as a replacement. 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.
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
.. you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
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," 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.
36
CONTRACT FEATURES AND BENEFITS
2. Determining your contract's value
--------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in the variable
investment options.
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value plus any
accrued but unpaid Breakpoint credit amount, less: (i) as applicable, the total
amount or a pro rata portion of the annual administrative charge, and any
accrued Protected premium death benefit charge; and (ii) any applicable
withdrawal 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 invests in shares of a corresponding Portfolio.
Your value in each variable 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 depends on the investment
performance of that option, less daily charges for:
(i)operations expenses;
(ii)administrative expenses;
(iii)distribution charges; and
(iv)the fund facilitation fee (if any).
On any day, your value in any variable 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 does
not change unless they are:
(i)increased to reflect additional contributions;
(ii)decreased to reflect a withdrawal (plus withdrawal charges if applicable);
or
(iii)increased to reflect a transfer into, or decreased to reflect a transfer
out of, a variable investment option.
Your units are also reduced when we deduct the annual administrative charge,
and any Protected premium death benefit charge. A description of how unit
values are calculated is found in the SAI.
INSUFFICIENT ACCOUNT VALUE
Your account value will fall to zero and your contract will terminate without
value if your account value is insufficient to pay any applicable charges when
due. Your account value could become insufficient due to withdrawals (including
withdrawals for the payment of fees and charges under the contract) and/or poor
market performance. Upon such termination, you will lose all your rights under
your contract and any applicable guaranteed benefit including the Protected
premium death benefit, if elected.
37
DETERMINING YOUR CONTRACT'S VALUE
3. Transferring your money among investment options
--------------------------------------------------------------------------------
TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your account value among the investment options, subject to the
following:
.. 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.
.. 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, at any time, change our transfer rules.
We may also, at any time, exercise our right to terminate transfers to any
of the variable investment options, to add variable investment options, and
to limit the number of variable investment options which you may elect.
.. Our current transfer restrictions are set forth in the "Disruptive transfer
activity" section below.
Some states may have additional transfer restrictions. Please see Appendix III
later in this Prospectus.
We will confirm all transfers in writing or, if you are enrolled in electronic
delivery, electronically.
Please see "Allocating your contributions" in "Contract features and benefits"
for more information about your role in managing your allocations.
REBALANCING YOUR ACCOUNT VALUE
Our rebalancing program offers two options -- scheduled/recurring rebalancing
and one-time rebalancing -- that you can use to automatically reallocate your
account value among the variable investment options.
To enroll in the scheduled/recurring rebalancing program, you must notify us in
writing by completing our investment option selection form, telling us:
(a)in whole percentages only, the percentage you want invested in each variable
investment option, and
(b)how often you want the rebalancing to occur (quarterly, semiannually, or
annually).
While your scheduled/recurring rebalancing program is in effect, we will
transfer amounts among each variable investment option, so that the percentage
of your account value that you specify is invested in each option at the end of
each rebalancing date. Your entire account value must be included in the
scheduled/recurring rebalancing program. Currently, we permit rebalancing of up
to 100 investment options.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
You may elect or terminate the scheduled/recurring rebalancing program at any
time. You may also change your allocations under the scheduled/recurring
program at any time. Once enrolled in the scheduled/recurring 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
scheduled/recurring 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 scheduled/recurring program. Changes to your allocation instructions
for the scheduled/recurring rebalancing program (or termination of your
enrollment in the program) may be requested through Online Account Access;
otherwise, they must be made in writing and sent to our processing office. The
scheduled/recurring rebalancing program is available while the dollar cost
averaging program is in effect, and for NQ contracts, remains available after
election of an Income Edge payment program.
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
38
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
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; and (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.
We offer investment options with underlying Portfolios that are a 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 into 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.
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.
39
TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
4. Accessing your money
--------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. Withdrawals will be deducted pro rata from the applicable investment
options (excluding amounts in the dollar cost averaging program (if any), from
which withdrawals are deducted only if there is insufficient value in all other
variable investment options) unless you instruct us otherwise (except scheduled
payments from an Income Edge payment program, which are always deducted pro
rata). The table below shows the methods available under each type of contract.
More information follows the table.
Please see "How withdrawals (and Income Edge scheduled payments, if applicable)
are taken from your account value" and "Effect of withdrawals on your Protected
premium death benefit" later in this section and "Insufficient account value"
in "Determining your contract's value" earlier in this Prospectus for more
information on how withdrawals affect your Protected premium death benefit and
could potentially cause your contract to terminate.
METHOD OF WITHDRAWAL AND INCOME EDGE AVAILABILITY
-----------------------------------------------------------------------------------------------------------
PRE-AGE LIFETIME
59 1/2 REQUIRED INCOME
SUB- MINIMUM EDGE
SYSTE- STANTIALLY DISTRIBU- PAYMENT
CONTRACT PARTIAL MATIC EQUAL TION PROGRAM
-----------------------------------------------------------------------------------------------------------
NQ Yes Yes Yes No Yes/(3)/
-----------------------------------------------------------------------------------------------------------
Traditional IRA Yes Yes Yes Yes No
-----------------------------------------------------------------------------------------------------------
Roth IRA Yes Yes Yes No No
-----------------------------------------------------------------------------------------------------------
SEP IRA Yes Yes Yes Yes No
-----------------------------------------------------------------------------------------------------------
QP/(2)/ Yes No No No No
-----------------------------------------------------------------------------------------------------------
Inherited IRA Yes No No /(1)/ No
-----------------------------------------------------------------------------------------------------------
Inherited NQ Yes No No No Yes/(4)/
-----------------------------------------------------------------------------------------------------------
(1)The contract pays out post-death required minimum distributions. See
"Inherited IRA beneficiary continuation contract" in "Contract features and
benefits" earlier in this Prospectus.
(2)All payments are made to the plan trust as owner of the contract. See
"Appendix IV: Purchase considerations for QP contracts" later in this
Prospectus.
(3)Includes Income Edge Early Retirement Option and (for your beneficiary)
Income Edge Beneficiary Advantage.
(4)Income Edge Beneficiary Advantage is available if the conditions for its
election are satisfied.
--------------------------------------------------------------------------------
ALL REQUESTS FOR WITHDRAWALS MUST BE MADE ON A SPECIFIC FORM THAT WE PROVIDE.
PLEASE SEE "HOW TO REACH US" UNDER "WHO IS AXA EQUITABLE?" EARLIER IN THIS
PROSPECTUS FOR MORE INFORMATION.
--------------------------------------------------------------------------------
PARTIAL WITHDRAWALS
(ALL CONTRACTS)
You may take partial withdrawals from your account value at any time. The
minimum amount you may withdraw is $300.
For Investment Edge(R) contracts, partial withdrawals will be subject to a
withdrawal charge if they exceed the 10% free withdrawal amount. For more
information, see "10% free withdrawal amount" in "Charges and expenses" later
in this Prospectus.
Any partial withdrawal request will terminate the systematic withdrawal option.
For NQ and Inherited NQ contracts, special rules apply to partial withdrawals
(also referred to as redemptions) following election of any version of Income
Edge. Please see "Income Edge Payment Program" later in this section and
"Inherited NQ beneficiary payment contract" in "Contract Features and Benefits"
for more information.
SYSTEMATIC WITHDRAWALS
(ALL CONTRACTS EXCEPT QP, INHERITED IRA, AND INHERITED NQ)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value.
If your contract is subject to withdrawal charges, you may take systematic
withdrawals of a fixed dollar amount or percentage of account value on a
monthly, quarterly or annual basis as long as the withdrawals do not exceed the
following percentages of your account value on the date of the withdrawal: 0.8%
monthly, 2.4% quarterly and 10.0% annually. The minimum amount you may take in
each systematic withdrawal is $250. If the amount withdrawn would be less than
$250 on the date a withdrawal is to be taken, we will not make a payment and we
will terminate your systematic withdrawal election.
If your contract is subject to withdrawal charges and any applicable withdrawal
charges on your contract have expired, you may elect a systematic withdrawal
option in excess of your percentages of your account value as of the beginning
of the contract year, as described in the preceding paragraph, up to 100% of
your account value. HOWEVER, IF YOU ELECT A SYSTEMATIC WITHDRAWAL OPTION IN
EXCESS OF THESE LIMITS, AND MAKE A SUBSEQUENT CONTRIBUTION TO YOUR CONTRACT,
THE SYSTEMATIC WITHDRAWAL OPTION WILL BE TERMINATED. You may then elect a new
systematic withdrawal option within the limits described in the preceding
paragraph. For Investment Edge(R) Select and Investment Edge(R) ADV series
contracts, you may not elect a systematic withdrawal option in excess of 10% of
your account value annually.
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. You must wait at least 28 days after your
contract is issued before your systematic withdrawals can begin.
40
ACCESSING YOUR MONEY
You may elect to take systematic withdrawals at any time however:
.. for NQ contracts, you may not elect to take systematic withdrawals once you
have elected an Income Edge payment program; and
.. 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.
You may change the payment frequency, or the amount or 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. In addition, for NQ contracts, the option is automatically canceled upon
election of an Income Edge Payment Program.
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. In addition, you may not take systematic
withdrawals if you are taking substantially equal withdrawals as described
below. For IRA contracts, if a required minimum distribution withdrawal is made
while the systematic withdrawal option is in effect, the option will be
terminated.
For Investment Edge(R) contracts, systematic withdrawals are not subject to a
withdrawal charge, and they will not reduce the contribution amounts in the
contract that are subject to withdrawal charges. However, partial withdrawals
taken while systematic withdrawals are being taken will be subject to
withdrawal charges to the extent they exceed the 10% free withdrawal amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(ALL CONTRACTS EXCEPT QP, INHERITED IRA, AND INHERITED NQ)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59 1/2. For traditional IRA, Roth IRA and SEP IRA contracts, substantially
equal withdrawals are also referred to as "72(t) exception withdrawals". For NQ
contracts, substantially equal withdrawals are also referred to as "72(q)
exception withdrawals." See "Tax information" later in this Prospectus. We use
one of the IRS-approved methods for doing this; this is not the exclusive
method of meeting this exception. After consultation with your tax adviser, you
may decide to use another method which would require you to compute amounts
yourself and request partial withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not (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 until after the later of age 59 1/2 or five full years after the first
withdrawal. If you stop or 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.
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.
You may elect to take substantially equal withdrawals at any time before you
reach 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 or within 28
days of the date on which your contract was issued. 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,
and will continue until (i) we receive written notice from you to cancel this
option; (ii) you take an additional partial withdrawal; (iii) you contribute
any more to the contract or; (iv) for NQ contracts, you elect an Income Edge
payment program after the mandatory period (which is after five years from the
first 72(q) exception withdrawal and you have reached age 59 1/2).
Unless you are eligible to and have elected an Income Edge payment program, 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.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge, and they will not reduce the contribution amounts in the
contract that are subject to withdrawal charges. However, partial withdrawals
taken while substantially equal withdrawals are being taken will be subject to
withdrawal charges to the extent that they exceed the 10% free withdrawal
amount, and will also terminate the substantially equal withdrawals option.
INCOME EDGE EARLY RETIREMENT OPTION. Under certain NQ contracts, prior to age
59 1/2 you may be able to elect a version of Income Edge that we call Income
Edge Early Retirement Option, which is a variable annuity payout option also
intended to qualify for the exception under Section 72(q) of the Internal
Revenue Code. Unlike the 72(q) exception withdrawals discussed immediately
above, Income Edge Early Retirement Option cannot be stopped and restarted at a
later time. See "Income Edge Early Retirement Option" later in this section for
more information.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(TRADITIONAL IRA AND SEP 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. 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. In such a case, a withdrawal charge may apply.
Before electing this account based withdrawal option, you should consider
whether annuitization might be better in your situation.
You may elect this service in the 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 and will be taken pro rata from all investment options.
See "Required minimum distributions" in "Tax information" later in this
Prospectus.
This service is not available under QP contracts.
This service does not generate automatic RMD payments during the first calendar
year in which your contract was 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. If you do not, any withdrawals that you
take during the first contract year to satisfy your RMDs may be subject to
withdrawal charges, if applicable, if they exceed the free withdrawal amount.
41
ACCESSING YOUR MONEY
--------------------------------------------------------------------------------
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).
--------------------------------------------------------------------------------
If you elect our RMD service, 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 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 service, subject to the
restrictions listed above. You must wait at least 28 days after your contract
is issued before your RMD service withdrawals can begin. You must elect a date
that is more than three calendar days prior to your contract anniversary.
For Investment Edge(R) contracts, we do not impose a withdrawal charge on RMD
payments taken through our automatic RMD service, and they will not reduce the
contribution amounts in the contract that are subject to withdrawal charges.
However, partial withdrawals taken while RMD payments are being taken will be
subject to withdrawal charges to the extent that they exceed the 10% free
withdrawal amount.
If you elect systematic withdrawals AND our automatic RMD service, any RMD
payment made while the systematic withdrawal program is in effect will
terminate the systematic withdrawal program.
INCOME EDGE PAYMENT PROGRAM
(NQ CONTRACTS ONLY)
An Income Edge payment program, when elected, will pay out your entire account
value via scheduled payments over a set period of time, with a portion of each
payment being a return of your cost basis in the contract and thus excludable
from taxes (the "Tax-Free Amount").(1) Unlike traditional forms of
annuitization, an Income Edge payment program allows for a form of annuity
payout that provides continuing access to your contract's account value by
allowing you to take partial withdrawals or surrender your contract during the
payout period.
We offer several Income Edge payment program versions, each of which is
described in detail in this Prospectus:
.. Income Edge -- the standard form of Income Edge payment program, described
immediately below.
.. Income Edge Early Retirement Option -- available for election by contract
holders under the age of 59 1/2. See "Income Edge Early Retirement Option"
later in this section.
.. Income Edge Beneficiary Advantage -- available for election:
-- by Investment Edge contract beneficiaries as a death benefit option, as
described in "Income Edge Beneficiary Advantage for NQ contracts only" in
the "Payment of death benefit" section; and
-- as one of two payout options under an Inherited NQ contract, as described
in "Inherited NQ beneficiary payout contract" in the "Contract features
and benefits" section.
----------
(1)Unlike systematic withdrawals and 72(q) exception withdrawals, these
payments cannot be stopped once they begin.
When used in this Prospectus, "Income Edge Payment Program" refers generally to
all forms of Income Edge payment programs, unless we indicate otherwise.
.. INCOME EDGE
In order to elect the standard form of Income Edge, at the time of election
your account value must be (i) at least $50,000 and (ii) more than your cost
basis in the contract. In addition, there are certain age requirements for
electing this feature, which are described below, and in some states there may
be other limitations regarding election of Income Edge. Please see Appendix III
later in this Prospectus for more information. You also cannot elect Income
Edge while you are receiving systematic withdrawals or "substantially equal
withdrawals", until the mandatory period has elapsed. See "Substantially equal
withdrawals" earlier in this section. For contracts purchased through a Section
1035 exchange, Income Edge cannot be elected unless all expected contributions
have been received; in addition, you will be responsible for ensuring that the
cost basis information for all contracts being exchanged into the Investment
Edge(R) contract has been reported to us by the original insurance companies.
Finally, for contracts with a non-natural owner, Income Edge may only be
elected where the contract is owned by a trust or other entity as an agent or
nominee for an individual.
MAXIMUM PAYMENT PERIOD. There are two methods for determining the maximum
period of time over which we will make payments under this feature: Single
Election and Joint Election. Under Single Election, payments will be made over
a defined period which, while not life contingent, is measured by the age of
one person -- the owner or, for jointly owned contracts or contracts with a
non-natural owner and joint annuitants, the person selected upon election (the
Applicable Individual). Under Joint Election, the defined period is measured by
the age of the younger of two persons selected upon election (also the
Applicable Individual) who may be, but need not be, spouses. For contracts with
non-natural owners, choosing the Single Election method will result in the
defined period being measured by the age of the annuitant or, in the case of
joint annuitants, the age of the younger joint annuitant. At the same time that
you elect Income Edge, you may add a successor owner or joint annuitant to your
contract in order to choose the Joint Election method. Note that under both
methods, the defined period is also used to determine the maximum period over
which your cost basis in the contract will be recovered.
In order to elect the Single Election method, the Applicable Individual must be
at least age 59 1/2 but not older than age 85 at the time that Income Edge is
elected. Note that for jointly owned contracts where the Single Election method
is chosen, the owner who is not chosen as the Applicable Individual need not
satisfy this age requirement. In order to elect the Joint Election method, both
persons who are eligible to be designated as the Applicable Individual must be
at least age 59 1/2 but not older than age 85 at the time that Income Edge is
elected. In order to elect the Joint Election method for contracts with either
(i) an individual owner or (ii) a non-natural owner with a single annuitant,
the individual added to the contract as either a successor owner or joint
annuitant for purposes of electing the Joint Election method must meet the age
requirements set forth above. In addition, please note that adding a successor
owner or joint annuitant to the contract in connection with making the election
may change your beneficiary designation. See "Your beneficiary and payment of
death benefit" in "Payment of Death Benefit" later in this Prospectus.
42
ACCESSING YOUR MONEY
If the Single Election method is chosen, the maximum period over which you will
receive payments (and recover your cost basis in the contract) is determined by
the following formula: Age 95 minus the age of the Applicable Individual at the
time that Income Edge is elected. If the Joint Election method is chosen, that
period is determined by the following formula: Age 100 minus the age of the
Applicable Individual at the time that Income Edge is elected. Under either
method, a shorter period than that calculated by the applicable formula can be
chosen; however, for Investment Edge(R) Select and Investment Edge(R) ADV
contracts, that period cannot be shorter than 10 years and for Investment
Edge(R) contracts, that period cannot be shorter than 15 years. Please see the
following table for examples of the payment period calculation.
------------------------------------------------------------------
AGE OF
APPLICABLE MAXIMUM
CHOSEN PAYMENT INDIVIDUAL AT PAYMENT SHORTER PAYMENT
PERIOD METHOD TIME OF ELECTION PERIOD PERIOD AVAILABLE?
------------------------------------------------------------------
Single Election 63 32 years Yes (at least 10
years or 15 years,
depending on
contract version)
------------------------------------------------------------------
Single Election 81 14 years Yes for Investment
Edge(R) Select and
Investment Edge(R)
ADV contracts (at
least 10 years); No
for Investment
Edge(R) contracts
------------------------------------------------------------------
Joint Election 63 37 years Yes (at least 10 or
15 years depending
on contract version)
------------------------------------------------------------------
Joint Election 81 19 years Yes (at least 10 or
15 years depending
on contract version)
------------------------------------------------------------------
The amount of the payments we will make is redetermined on an annual basis,
meaning that the amount of your payments may vary each year of the payment
period (called an Annual Payout Period). In contrast, the amount of each
payment that is considered to be the return of a portion of your cost basis in
the contract is determined at the time that you elect Income Edge and does not
change during the payment period.
Your Income Edge payment program becomes effective on the Income Edge Effective
Date, which is the date by which we have received your election to begin Income
Edge payments along with all required information, exchanges and cost basis.
You may choose to receive monthly, quarterly, or annual payments ("payment
modes") during each Annual Payout Period over the payment period. A change in
your chosen payment frequency is not permitted. You may request to have your
payments made on any day of the month, subject to the following restrictions:
.. you must select a date that is no more than one payment mode away from the
date on which you elect Income Edge; and
.. you cannot select the 29th, 30th, or 31st.
If you do not select a date, we will make the payments on the same day of the
month as the day we receive your request to elect Income Edge, subject to the
restrictions listed above.
For the first Annual Payout Period, the total amount of payments for that year
is calculated by dividing your account value at the time that you elect Income
Edge by the payment period selected.(1) For each subsequent Annual Payout
Period the total amount of payments for that year is calculated by dividing
your account value on the last day of the preceding Annual Payout Period by the
remaining number of years in the payment period as of the first day of the
current Annual Payout Period. If not sooner, your account value will always
equal zero by the end of the payment period selected. Note that we reserve the
right to change the manner in which Income Edge scheduled payments are
calculated, but such a change will not affect any payments made pursuant to an
Income Edge election that preceded the effective date of the change. Please see
below for an example of the payment amount calculation.
In addition, see Appendix VI for a demonstration of the payment amount
calculation as a percentage of account value.
EXAMPLE
Income Edge is elected on 6/15/2015 with the Single Life election method by an
80 year old contract holder whose account value is $150,000 at the time of
election. The contract owner has chosen to receive quarterly payments over the
maximum payment period.
--------------------------------------------------------------------
REMAINING
ANNUAL ACCOUNT VALUE FOR NUMBER OF YEARS TOTAL PAYMENTS FOR
PAYOUT PAYMENT IN PAYMENT ANNUAL PAYOUT
PERIOD YEAR CALCULATION PERIOD PERIOD
--------------------------------------------------------------------
1 $150,000 15 $10,000 (in
(as of 6/15/15) quarterly payments
of $2,500)
--------------------------------------------------------------------
2 $155,000 14 $11,071.43 (in
(as of 6/14/16) quarterly payments
of $2,767.86)
--------------------------------------------------------------------
3 $140,000 13 $10,769.23 (in
(as of 6/14/17) quarterly payments
of $2,692.31)
--------------------------------------------------------------------
--
--------------------------------------------------------------------
15 $12,000 1 (Annual $12,000 (in
(as of 6/14/29) Payout Period quarterly payments
Year 15) of $3,000)
--------------------------------------------------------------------
Note, however, that if your account value is less than or equal to the amount
of any Income Edge scheduled payment on the date that such payment is due, the
entire amount of your account value will be paid and your contract will
terminate. In addition, if your account value is greater than the amount of the
last Income Edge scheduled payment on the date that such payment is due, the
last Income Edge scheduled payment will be equal to your entire account value.
Income Edge scheduled payments will be taken pro rata out of all investment
options. For Investment Edge(R) contracts, Income Edge scheduled payments are
not subject to withdrawal charges and they will not reduce the contribution
amounts in the contract that are subject to withdrawal charges. However, such
payments will reduce the 10% free withdrawal amount. If your contract
terminates for any reason prior to the end of Income Edge scheduled payments,
no further Income Edge scheduled payments will be made.
----------
(1)Note that during the first Annual Payout Period your monthly or quarterly
payments must be at least $250.
43
ACCESSING YOUR MONEY
A portion of each Income Edge scheduled payment represents a return of your
cost basis in the contract, and is called the Tax-Free Amount. The Tax-Free
Amount for each Annual Payout Period is calculated at the time that you elect
Income Edge and does not change once it is calculated. It is calculated by
dividing the remaining cost basis in the contract at the time that Income Edge
is elected by the number of years in the payment period selected at the time of
election. That number is then divided by the number of Income Edge scheduled
payments in each Annual Payout Period to determine the Tax-Free Amount that
applies to each Income Edge scheduled payment.
For example, if the remaining cost basis in the contract at the time that
Income Edge is elected is $100,000, and the payment period chosen at election
is 10 years, then the Tax-Free Amount for each Annual Payout Period is $10,000.
And if that contract owner had selected quarterly payments, then $2,500 (1/4th
of $10,000) would be the amount of each Income Edge scheduled payment that
would represent a return of cost basis in the contract.
Your actual cost basis in the contract is reduced by the Tax-Free Amount upon
receipt of each Income Edge scheduled payment. Income Edge is designed to
deplete your entire cost basis in the contract by the end of the payment period
selected. Special rules may apply if you have purchased more than one
non-qualified annuity contract from AXA Equitable in the same calendar year.
Please see "Tax Information" later in this Prospectus for more information.
All options selected as part of electing Income Edge (e.g., Joint Election,
payment period) are final, although you may cancel your election if your
request to do so is received prior to the date on which your first Income Edge
scheduled payment is made.
Once Income Edge scheduled payments begin, they cannot be stopped, although the
contract can be fully redeemed (surrendered) for the then-current account value
net of withdrawal charges, if applicable. In addition, upon election of Income
Edge the following limitations on your contract apply:
. Additional contributions -- including Section 1035 exchanges -- to your
contract are not permitted.
. Contract ownership cannot be changed, and no rights under the contract
may be assigned.
. Any systematic withdrawal option or 72(q) substantially equal withdrawal
option that is in effect will end.
. You may not select any of the other annuity payout options available
under your contract, and the maturity date is no longer applicable.
. If you have elected the Joint Election payment method, the joint owner,
successor owner, or joint annuitant, as applicable, supersedes all
inconsistent beneficiary designations.
. Any existing instructions that you specified regarding the manner in
which the death benefit should be paid out will no longer be in effect.
. The beneficiary continuation option, spousal continuation option, and
other annuity options are not available to beneficiaries.
. The Protected premium death benefit, if elected, will be terminated on
the Income Edge Effective Date. Any accrued Protected premium death
benefit charge will be deducted on that date.
In addition, we may impose a premium tax charge on contracts issued in certain
states upon election of Income Edge. If such a charge is applicable, it will be
taken out of your account value on the date that you elect Income Edge on a pro
rata basis prior to calculating the Income Edge scheduled payment(s) due during
the first Annual Payout Period.
See "Special Rules for NQ contracts when Income Edge is in effect" in "Payment
of Death Benefit" for more information on rules that apply upon the death of
the owner.
PARTIAL WITHDRAWALS. You may make partial withdrawals (redemptions) following
election of Income Edge, subject to withdrawal charges, if applicable. Note
that unlike Income Edge scheduled payments, no portion of such withdrawals will
represent a return of your cost basis in the contract, and thus will not affect
the Tax-Free Amount applicable to subsequent Income Edge scheduled payments. In
addition, the withdrawal charge schedule remains unchanged upon election of
Income Edge, and any withdrawal charge waivers that were in effect at the time
that Income Edge was elected will continue to be in effect in accordance with
their terms.
.. INCOME EDGE EARLY RETIREMENT OPTION
Income Edge Early Retirement Option ("Income Edge ERO") is a version of Income
Edge available for election by Investment Edge NQ contract owners aged between
10 and 591/2. To elect Income Edge ERO, your account value must be (i) at least
$50,000 and (ii) more than your cost basis in the contract. Like the
"substantially equal withdrawals" option discussed earlier in this section,
Income Edge ERO is intended to meet the "substantially equal periodic payments"
exception provided under Section 72(q) of the Internal Revenue Code that
otherwise applies a 10% additional federal income tax penalty to distributions
taken before age 591/2. Unlike the "substantially equal withdrawals" option:
.. Income Edge ERO will pay out your entire account value via scheduled
payments over a set period of time, with a portion of each payment
representing a return of your cost basis in the contract.
.. Income Edge ERO scheduled payments cannot be stopped once they begin, and
annuitization options under the contract are no longer available.
The features of Income Edge discussed immediately above also apply to Income
Edge ERO, subject to these distinctions:
.. We will continue to make payments under Income Edge ERO even after you are
age 591/2 until all payments are made under the contract, unless you
request to surrender (redeem) your contract. Depending both on your age and
the length of time you have been receiving payments under Income Edge ERO,
we may have to report such redemption as being subject to a federal tax
penalty.
.. Income Edge ERO is only available for election by individual contract
owners. Income Edge ERO cannot be elected under a jointly owned contract or
by non-natural owners.
.. PAYMENT PERIOD. The discussion in "Income Edge" above concerning the
determination of the payment period and the choice between "Single
Election" and "Joint Election" does not apply to Income Edge ERO. Rather,
the period of time over which Income Edge ERO scheduled payments are made
is calculated based on your life expectancy when payments begin. We
44
ACCESSING YOUR MONEY
determine your life expectancy by referring to an IRS table used for
determining "substantially equal periodic payments" and round down to the
nearest whole number. Unlike Income Edge, you cannot select a payment period
that is shorter than the life expectancy period we determine.
The amount of the first scheduled payment is determined by dividing the
account value as of the date payments start by your life expectancy as
determined above. Each subsequent annual scheduled payment is determined by
dividing the remaining account value as of the anniversary date by the
initial life expectancy, reduced by 1 for each subsequent year.
.. PARTIAL WITHDRAWALS. As with Income Edge, you have the ability to take
partial withdrawals (redemptions) after you elect Income Edge ERO, subject
to withdrawal charges, if applicable. However, IF YOU TAKE PARTIAL
WITHDRAWALS OR FULLY SURRENDER (REDEEM) YOUR CONTRACT (I) PRIOR TO AGE
591/2 OR (II) AFTER AGE 59 1/2 BUT PRIOR TO HAVING RECEIVED FIVE FULL YEARS
OF INCOME EDGE ERO SCHEDULED PAYMENTS, THERE MAY BE ADVERSE TAX
CONSEQUENCES. Although we believe that the Income Edge ERO payment program
constitutes substantially equal periodic payments for purposes of Section
72(q) of the Code, taking a withdrawal will alter your payment pattern and
we can no longer report the Income Edge ERO scheduled payment amounts as
being available for the exception. See "Tax Information" later in this
Prospectus for more information.
If you are under age 591/2, you should carefully consider whether to elect
Income Edge ERO or instead wait until you are older than age 591/2 and elect
Income Edge. As discussed above, Income Edge ERO has certain limitations that
do not apply to Income Edge, and even though there are no contractual
restrictions on your ability to take withdrawals that are in addition to your
scheduled payments, or to fully redeem your contract, adverse tax consequences
may apply if you are under age 591/2 and/or have not received five full years
of scheduled Income Edge ERO payments.
.. INCOME EDGE BENEFICIARY ADVANTAGE
The Income Edge Beneficiary Advantage ("Income Edge BA") payment option is a
form of Income Edge payment program available under NQ contracts (a) to
Investment Edge contract beneficiaries as a death benefit option; and (b) as
one of two payout options for beneficiaries under an Inherited NQ contract.
Features of the version of Income Edge BA available for election by an
Investment Edge contract beneficiary include the following:
.. We will determine a payment period at the time that scheduled payments
begin. The payment period is based on your beneficiary's age, using an IRS
table for post-death payments and rounding down to the nearest whole
number. Before scheduled payments start, your beneficiary may choose a
shorter payment period than the one we determine, but a payment period must
be at least 15 years (for beneficiaries of Investment Edge(R) contracts) or
10 years (for beneficiaries of Investment Edge(R) Select and Investment
Edge(R) ADV contracts).
.. Your beneficiary may choose at any time to withdraw all or a portion of the
account value. Any partial withdrawal must be at least $300. Unlike Income
Edge BA scheduled payments, no portion of such withdrawals will represent a
return of cost basis in the contract, and thus will not affect the Tax-Free
Amount applicable to subsequent Income Edge BA scheduled payments.
Withdrawal charges will apply.
This version of Income Edge BA is described in more detail in "Income Edge
Beneficiary Advantage for NQ contracts only" in the "Payment of death benefit"
section of the Prospectus.
Features of the version of Income Edge BA available for election by
beneficiaries under an Inherited NQ contract include the following:
.. We will determine a payment period at the time that scheduled payments are
due to begin. The payment period is based on the Inherited NQ contract
owner's life expectancy. The Inherited NQ contract owner may select a
shorter payment period, which will generally result in larger payments.
.. The Inherited NQ contract owner may choose at any time to withdraw all or a
portion of the account value. Any partial withdrawal must be at least $300.
Unlike Income Edge BA scheduled payments, no portion of such withdrawals
will represent a return of cost basis in the contract, and thus will not
affect the Tax-Free Amount applicable to subsequent Income Edge BA
scheduled payments. Withdrawal charges will apply.
This version of Income Edge BA is described in more detail in "Inherited NQ
beneficiary payout contract" in the "Contract features and benefits" section of
the Prospectus.
HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
We will subtract your withdrawals on a pro rata basis from your account value
in the variable investment options. We treat scheduled payments under any form
of Income Edge payment program in the same manner. If there is insufficient
value or no value in the variable investment options, any additional amount of
the withdrawal (or, if applicable, Income Edge scheduled payment) required or
the total amount as applicable will be withdrawn from amounts in the dollar
cost averaging program (if any). A partial withdrawal (or, if applicable, an
Income Edge payment program scheduled payment) from amounts in the dollar cost
averaging program (if any) will not terminate the dollar cost averaging program.
If you direct us to subtract an automated withdrawal (systematic withdrawals,
substantially equal withdrawals, or lifetime required minimum distribution
withdrawals) from specific variable investment option(s), and the value in the
selected investment option(s) drops below the requested withdrawal amount, the
requested amount will be taken on a pro rata basis from all other investment
options in the contract on the business day after the withdrawal was scheduled
to occur. All subsequent automated withdrawals will be processed on a pro-rata
basis from all other investment options.
For non-automated lump sum withdrawals (i.e., partial withdrawals), if you
direct us to subtract such a withdrawal from specific investment option(s) and
the value in the selected investment option(s) is less than the requested
withdrawal amount, the request will not be processed and we will ask you to
amend the request before it can be processed.
EFFECT OF WITHDRAWALS ON YOUR PROTECTED PREMIUM DEATH BENEFIT
(NOT APPLICABLE IF YOU HAVE ELECTED AN INCOME EDGE PAYMENT PROGRAM)
If you elected the PPDB, all withdrawals from your contract, whether partial
withdrawals, systematic withdrawals, substantially equal withdrawals, or
lifetime required minimum distribution withdrawals,
45
ACCESSING YOUR MONEY
will reduce your PPDB on a pro rata basis. See "Protected premium death
benefit" in "Contract features and benefits" earlier in this Prospectus for
more information.
WITHDRAWALS TREATED AS SURRENDERS
(NOT APPLICABLE TO SCHEDULED PAYMENTS UNDER ANY FORM OF INCOME EDGE)
If you request to withdraw more than 90% of a contract's current cash value, or
if your account value is reduced to zero as a result of a withdrawal, we will
treat it as a request to surrender the contract for its cash value. In
addition, we have the right to pay the cash value and terminate the contract if
you make a withdrawal that would result in a cash value of less than $500. 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 the annuitant
is living) and before you begin to receive annuity payments. 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. You may also surrender your contract while an Income Edge
payment program is in effect.
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 date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge, if applicable) 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 which 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 may defer payments for a reasonable amount of time (not to exceed 10 days)
while we are waiting for a contribution check to clear.
All payments are made to a bank account designated by you or by check which
will be mailed to you (or the payee named in a tax-free exchange) by U.S. mail,
if you request that we do so subject to any charges. We can also send any
payment to you by using an express delivery or wire transfer service (subject
to applicable charges; see "Charges and Expenses" later in this Prospectus).
YOUR ANNUITY PAYOUT OPTIONS
(NOT APPLICABLE WHEN ANY VERSION OF INCOME EDGE HAS BEEN ELECTED, OR TO
INHERITED IRA OR INHERITED NQ CONTRACTS)
The following description assumes annuitization of your entire contract. For
partial annuitization, see "Partial annuitization" below. For NQ contracts, see
"Income Edge Payment Program" earlier in this section for details regarding the
Income Edge payment program.
Deferred annuity contracts such as Investment Edge(R) 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 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 annuity 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 issue date. Please see Appendix III later in
this Prospectus for information on state variations. 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.
In general, your periodic payment amount upon annuitization is determined by
the account value or cash value of your Investment Edge(R) contract at the time
of annuitization, the form of the annuity payout option you elect and the
annuity purchase rate to which that value is applied, as described below. 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 60 days advance written 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. For example, assume the contract owner is a 70-year old male
and contributes $100,000. Seven years later we announce a change in the
guaranteed annuity purchase rate. After this change, the contract owner
contributes $45,000. At age 85, the contract owner elects to annuitize the
contract. At this time the annuity account value is $260,000, of which $200,000
is attributable to the initial contribution and $60,000 is attributable to the
subsequent contribution. Assume the guaranteed annuity purchase rate at the
time the contract was issued was 5.63 per $1,000. After the change, the
guaranteed annuity purchase rate is 4.79 per $1,000. The guaranteed monthly
payment when the contract is annuitized would be $1,413.40 (=200,000 x 5.63 /
1,000 + 60,000 x 4.79 / 1,000).
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 payout option. If an annuity payout is
later found to be based on incorrect information, it will be adjusted on the
basis of the correct information.
46
ACCESSING YOUR MONEY
You can currently choose from among the payout annuity 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.
-------------------------------------------------------------
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.
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,
including non-life contingent annuities. 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, and the timing of your purchase as it
relates to any withdrawal charges that apply under your Investment Edge(R)
series contract.
For Investment Edge(R) contracts, there is no withdrawal charge imposed if you
select a life annuity, life annuity with period certain or life annuity with
refund certain. If we are offering non-life contingent forms of annuities, the
withdrawal charge will be imposed.
PARTIAL ANNUITIZATION. Partial annuitization of nonqualified deferred annuity
contracts, as described in "Partial Annuitization" in "Tax Information", is
permitted under certain circumstances. You may choose from the life-contingent
annuity payout options described here. We currently do not offer a period
certain option for partial annuitization. We require you to elect partial
annuitization on the form we specify. For purposes of this contract we will
effect any partial annuitization as a withdrawal applied to a payout annuity.
Partial annuitization is available until your annuity maturity date. See "How
withdrawals are taken from your account value" earlier in this section.
For NQ contracts, any partial annuitization must take place prior to election
of the Income Edge payment program. In that case, only the cost basis for the
portion of the contract that has not been annuitized will be available under
the Income Edge payment program. See "Income Edge Payment Program" earlier in
this section.
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 III 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 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 the 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 by which you must either take a lump sum
payment or select an annuity payout option. 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. For
contracts with joint annuitants, the maturity age is based on the older
annuitant. The maturity date is generally the contract date anniversary that
follows the annuitant's 95th birthday. We will send a notice with the contract
statement one year prior to the maturity date. If you do not respond to the
notice within the 30 days following the maturity date, your contract will be
annuitized automatically. 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. The default
payout option is the Life annuity with period certain not to exceed 10 years.
Any death benefit you had under your contract will no longer be in effect. You
will not be permitted to make any additional withdrawals.
Please see Appendix III later in this Prospectus for variations that may apply
in your state.
47
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. These charges are reflected in the unit values of each
variable investment option:
.. An operations charge
.. An administrative charge
.. A distribution charge
We may also deduct the following charges from your account value. If we deduct
these charges from your variable investment options we reduce the number of
units credited to your contract:
.. On each contract date anniversary (or, for NQ contracts where an Income
Edge payment program has been elected, the Income Edge Anniversary Date) --
an annual administrative charge, if applicable.
.. At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge (if applicable).
.. At the time annuity payments are to begin including, for NQ contracts,
Income Edge payment program scheduled payments -- 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).
.. Charge for third-party transfer or exchange.
.. Special services charges (if applicable).
.. Duplicate Annual and/or Quarterly Statement of Account or Annual Payout
Statement charge (if applicable).
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted.
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. Nor does it 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 to compensate us for operations expenses, a portion
of which compensates us for mortality and expense risks. Below is the daily
charge shown as an annual rate of the net assets in each variable investment
option for each contract in the Investment Edge(R) series:
Investment Edge(R): 0.70%
Investment Edge(R) Select: 0.75%
Investment Edge(R) ADV: 0.20%
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. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
ADMINISTRATIVE CHARGE. We deduct a daily charge from the net assets in each
variable 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:
Investment Edge(R): 0.30%
Investment Edge(R) Select: 0.30%
Investment Edge(R) ADV: 0.10%
DISTRIBUTION CHARGE. We deduct a daily charge from the net assets in each
variable 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:
Investment Edge(R): 0.10%
Investment Edge(R) Select: 0.20%
Investment Edge(R) ADV: 0.00%
We sometimes refer to the total amount of Separate account annual expenses as
the "Contract fee". You may be eligible for a reduction in the Contract fee.
See "Breakpoint Credit" in "Contract features and benefits" for more
information.
ANNUAL FUND FACILITATION FEE. We may deduct a fund facilitation fee in order to
make certain variable investment options available under the contract. The fee
applies to variable investment options that do not provide us with the amount
of revenue we require in order for us to meet our expenses and revenue targets.
48
CHARGES AND EXPENSES
The fee is based on the net assets in each variable investment option for which
we specify that the fee applies. It is expressed as an annual percentage rate
and is deducted daily from the unit value of the applicable variable investment
option.
If the contract is surrendered or annuitized (not including election of an
Income Edge payment program) 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 account value is insufficient to pay this charge, your
contract will terminate without value.
Currently, we do not charge this fee for any variable investment option that we
offer.
ACCOUNT VALUE CHARGES
The following charges are intended to compensate us for the cost of providing
administrative services in connection with your contract:
.. CONTRACT MAINTENANCE FEE TIER I. We deduct a $50 administrative charge from
your account value on each contract date anniversary following the first
contract date anniversary unless you are enrolled in electronic delivery
for the entirety of the preceding contract year. Once an Income Edge
payment program has been elected, the charge is deducted on the Income Edge
Anniversary Date. The charge is to compensate us for the cost of providing
administrative services in connection with the contract.
<R>
PAPER COPIES OF DOCUMENTS. Even if you enroll in electronic delivery, upon
request you may still receive a free paper copy of any document we
previously sent you electronically, and you will not be charged the Contract
Maintenance Fee Tier I. If you wish to obtain a free paper copy of a
document we have sent you in electronic format, please call one of our
customer service representatives at 1 (800) 789-7771.
</R>
We will deduct this charge from your value in the variable investment
options on a pro rata basis. If those amounts are insufficient, we will
deduct all or a portion of the charge (as applicable) from amounts in the
dollar cost averaging program (if any).
If the contract is surrendered or annuitized (not including election of an
Income Edge payment program) 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. The full amount of the charge will be deducted if you change
your status with respect to enrollment in electronic delivery in between
contract date anniversaries (or, for NQ contracts where an Income Edge
payment program has been elected, Income Edge Anniversary Dates).
If your account value is insufficient to pay this charge, your contract will
terminate without value.
.. CONTRACT MAINTENANCE FEE TIER II. We will deduct a $50 dollar charge on any
contract date anniversary on which your account value is less than $50,000.
This charge will no longer apply to NQ contracts following Income Edge
election, even if your account value falls below $50,000.
We will deduct this charge from your value in the variable investment
options on a pro rata basis. If those amounts are insufficient, we will
deduct all or a portion of the charge (as applicable) from amounts in the
dollar cost averaging program (if any).
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.
If your account value is insufficient to pay this charge, your contract will
terminate without value.
TRANSFER CHARGE
Currently, we do not charge for transfers among investment options under the
contract. In addition we reserve the right, at any time but always with prior
notice, to charge for any transfers in excess of 12 per contract year (or, for
NQ contracts where an Income Edge payment program has been elected, per Annual
Payout Period).
In the event that such a charge is imposed, it will be subject to the following:
.. We reserve the right to waive such charge for transfers requested
electronically.
.. The charge will never exceed $35 and will be assessed at the time that the
transfer is processed.
.. For the purposes of this charge, all transfers made on the same business
day as to a particular contract will be considered one transfer.
.. Any transfer charge will be deducted from the investment option(s) from
which the transfer was made.
.. No charge will be imposed for transfers made in connection with the dollar
cost averaging program.
SPECIAL SERVICES CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing each special service. For
certain services, we will deduct from your account value any withdrawal charge
that applies and the charge for the special service. Please note that we may
discontinue some or all of these services without notice.
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, which would be deducted from the
amount you request following imposition of such a charge. We reserve the right
to charge a maximum of $85.
49
CHARGES AND EXPENSES
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. This charge will be deducted from the
amount you request. We reserve the right to increase this charge to a maximum
of $125. Please see Appendix III later in this Prospectus for variations in
your state.
DUPLICATE ANNUAL AND/OR QUARTERLY STATEMENT OF ACCOUNT OR ANNUAL PAYOUT
STATEMENT CHARGE. Currently, we do not charge for providing a duplicate copy of
your Annual or Quarterly Statement of Account or Annual Payout Statement.
However, we reserve the right to impose such a charge, regardless of whether
you are enrolled in electronic delivery or whether the request is for an
electronic or hard copy duplicate of the applicable document. Any such charge
would be deducted from your account value in the variable investment options at
the time of the request on a pro rata basis.
WITHDRAWAL CHARGE
(FOR INVESTMENT EDGE(R) CONTRACTS ONLY)
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value. For more information about the withdrawal charge if you
select an annuity payout option, see "Your annuity payout options -- The amount
applied to purchase an annuity payout option" in "Accessing your money" earlier
in this Prospectus.
The withdrawal charge equals a percentage of the contributions withdrawn even
if the account value is less than total net contributions.
The percentage of the withdrawal charge that applies to each contribution
depends on how long each contribution has been invested in the contract. We
determine the withdrawal charge separately for each contribution according to
the following table:
----------------------------------------------------------------------------------------
WITHDRAWAL CHARGE AS A % OF CONTRIBUTION CONTRACT YEAR
----------------------------------------------------------------------------------------
1 2 3 4 5 6+
----------------------------------------------------------------------------------------
Investment Edge(R) 6% 6% 5% 4% 3% 0%/(1)/
----------------------------------------------------------------------------------------
(1)Charge does not apply in the 6th and subsequent contract years following
contribution.
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1," and the withdrawal
charge is reduced or expires on each applicable contract date anniversary.
Amounts withdrawn that are not subject to the withdrawal charge are not
considered withdrawals of any contribution. We also treat contributions that
have been invested the longest as being withdrawn first. We treat contributions
as withdrawn before earnings for purposes of calculating the withdrawal charge.
However, federal income tax rules treat earnings under your contract as
withdrawn first. See "Tax information" later in this Prospectus.
Please see Appendix III later in this Prospectus for possible withdrawal charge
schedule variations in your state.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to that
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each investment option. The withdrawal
charge helps cover our sales expenses.
We offer two versions of the contract that do not include a withdrawal charge.
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the beginning of each contract
year. For NQ contracts, following election of an Income Edge payment program,
the amount is determined using your account value at the beginning of each
Annual Payout Period. In the first contract year, the 10% free withdrawal
amount is determined using all contributions received in the first 90 days of
the contsract year. Additional contributions during the contract year do not
increase your 10% free withdrawal amount. The 10% free withdrawal amount does
not apply if you surrender your contract except where required by law.
SUBSTANTIALLY EQUAL WITHDRAWALS. For Investment Edge(R) contracts,
substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge. See "Substantially equal withdrawals" in "Accessing your
money" earlier in this Prospectus for more information.
INCOME EDGE. Payments made under any form of Income Edge payment program that
we offer are not subject to withdrawal charges.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. There are
specific circumstances (described below) under which the withdrawal charge will
not apply. At any time after the first contract date anniversary, you may
submit a claim to have the withdrawal charge waived if you(1) meet certain
requirements. You are not eligible to make a claim prior to your first contract
date anniversary. Also, your claim must be on the specific form we provide for
this purpose.
The withdrawal charge does not apply if:
(i)We receive proof satisfactory to us (including certification by a licensed
physician) that an owner (or older joint owner, if applicable) is unable to
perform three of the following "activities of daily living":
-- "Bathing" means washing oneself by sponge bath; or in either a tub or
shower, including the task of getting into or out of the tub or shower.
-- "Continence" means the ability to maintain control of bowel and bladder
function; or, when unable to maintain control of bowel or bladder
function, the ability to perform associated personal hygiene (including
caring for catheter or colostomy bag).
----------
(1)When used in this section, "you" means (a) for single owner contracts, the
owner; (b) for jointly owned contracts, the older owner; (c) for contracts
with non-natural owner(s) and a single annuitant, the Annuitant; and (d) for
contracts with non-natural owner(s) and joint annuitants, the older
annuitant.
50
CHARGES AND EXPENSES
-- "Dressing" means putting on and taking off all items of clothing and any
necessary braces, fasteners or artificial limbs.
-- "Eating" means feeding oneself by food into the body from a receptacle
(such as a plate, cup or table) or by a feeding tube or intravenously.
-- "Toileting" means getting to and from the toilet, getting on and off the
toilet, and performing associated personal hygiene.
-- "Transferring" means moving into or out of a bed, chair or wheelchair.
(ii)We receive proof satisfactory to us (including certification by a licensed
physician) that an owner's (or older joint owner's, if applicable) life
expectancy is six months or less; or
(iii)An owner (or older joint owner, if applicable) has been confined to a
nursing home for more than 90 days (or such other period, as required in
your state) as verified by a licensed physician. A nursing home for this
purpose means one that is (a) approved by Medicare as a provider of
skilled nursing care service, or (b) licensed as a skilled nursing home by
the state or territory in which it is located (it must be within the
United States, Puerto Rico, or U.S. Virgin Islands) and meets all of the
following:
-- its main function is to provide skilled, intermediate, or custodial
nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for residents.
Some states may not permit us to waive the withdrawal charge in the above
circumstances, or may limit the circumstances for which the withdrawal charge
may be waived. Your financial professional can provide more information or you
may contact our processing office.
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 payout option. For NQ contracts, we
also deduct this charge from your account value as of the date that you elect
an Income Edge payment program. The current tax charge that might be imposed
varies by jurisdiction and ranges from 0% to 3.5%.
Please call our processing office for more information.
FEE-BASED EXPENSES (INVESTMENT EDGE(R) ADV CONTRACTS ONLY)
The fees and expenses of a fee-based program are separate from and in addition
to the fees and expenses of the contract. Please consult with your program
sponsor for more details about your fee-based program. You should consider
maintaining sufficient assets outside of this contract in order to pay advisory
or custodial account expenses. Withdrawals from your Investment Edge(R) ADV
contract to pay those expenses will be treated like any other withdrawal.
PROTECTED PREMIUM DEATH BENEFIT CHARGE
If you elect the Protected premium death benefit (PPDB), we deduct a charge
annually on each contract date anniversary for which the benefit is in effect.
This charge is calculated daily as a percentage of your Net Amount at Risk
(NAR) and varies according to your age as of your most recent contract date
anniversary. For jointly owned contracts, we look to the age of the older joint
owner when determining the charge. The following table shows the current and
maximum annual charges for the benefit:
---------------------------------------------------------------------
CURRENT MAXIMUM CURRENT MAXIMUM
ANNUAL ANNUAL ANNUAL ANNUAL
CHARGE CHARGE CHARGE CHARGE
AGE (% OF NAR) (% OF NAR) AGE (% OF NAR) (% OF NAR)
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(less or =)65 0.6% 1.2% 89 12.0% 24.0%
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66-70 1.2% 2.4% 90 13.5% 27.0%
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71-75 1.8% 3.6% 91 14.5% 29.0%
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76-80 3.6% 7.2% 92 16.0% 32.0%
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81-85 7.2% 14.4% 93 17.0% 34.0%
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86 9.0% 18.0% 94 18.5% 37.0%
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87 10.0% 20.0% 95 20.0% 40.0%
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88 11.0% 22.0%
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<R>
The daily charge percentage increases automatically on each contract date
anniversary following the date on which you reach the next age bracket shown in
the table. We reserve the right to increase the charges for this benefit up to
the maximum charges shown above.
</R>
NET AMOUNT AT RISK: On each day of your contract, your NAR is equal to (A)
minus (B), where:
(A) equals your Protected premium death benefit base; and (B) equals your
account value on that day. If (A) is less than or equal to (B), then your NAR
for that day equals zero.
There will be no accrued charge for the PPDB for any day on which your NAR is
less than or equal to zero.
The charge for a non-business day will be determined using the NAR calculated
for the immediately following business day.
We will deduct the PPDB charge from your account value in the variable
investment options on a pro rata basis. If those amounts are insufficient, we
will deduct all or a portion of the charge (as applicable) from amounts in the
dollar cost averaging program (if any). If on any date other than the contract
date anniversary your contract is surrendered or annuitized, the Income Edge
Effective Date, a death benefit is paid, or the PPDB is terminated, we will
deduct the cumulative accrued charge for that year from your account value.
For an example of how the PPDB and the PPDB charge are calculated, see
"Appendix VII: Protected premium death benefit example."
SPOUSAL CONTINUATION. If either (a) the surviving younger spouse under a
spousal joint owner contract or (b) the sole spousal beneficiary of a single
owner contract elects to continue their contract in which the PPDB had been
elected, and that spouse is eligible to continue the PPDB, we will use the
surviving spouse's age as of the
51
CHARGES AND EXPENSES
anniversary preceding the date of claim as the determining age for calculating
the initial daily PPDB charge. Any accrued PPDB charge as of the date of claim
will be deducted from the account value on that date. Thereafter, the PPDB
charge will be deducted from the account value on each contract date
anniversary. If the surviving spouse decides to terminate the PPDB on the date
of claim, any accrued PPDB charges up until the date of claim will be deducted
from the account value (prior to any reset) on the next contract date
anniversary. See "Spousal continuation" in "Payment of death benefit" for more
information about spousal continuation options.
OTHER IMPORTANT CONSIDERATIONS
.. If you have a positive NAR, in a rising market your account value may
eventually increase to the point where your NAR reaches zero. As long as
your NAR stays at zero you will not be charged for the PPDB.
.. If your account value declines, whether due to withdrawals, the deduction
of fees and/or poor market performance, and you have a positive NAR, the
dollar amount of the PPDB charge increases. Furthermore, if your account
value continues to decline, the fee will represent an increasing percentage
of your account value and could substantially reduce your remaining account
value.
.. LOW ACCOUNT VALUE. If your account value is low, deduction of the charge on
your contract anniversary, together with any other charges deducted that
day, will further deplete your account value. Furthermore, if on any
Business Day your account value, including any accrued but unpaid
Breakpoint Credit, is less than or equal to the accrued but unpaid amount
of the charge for the PPDB, your contract, including the PPDB, will
terminate without value and you will lose all your rights and benefits
under the contract, including the PPDB. If your account value is low, we
recommend speaking to your financial adviser about possible options
available to you, including (a) ceasing withdrawals, (b) dropping the PPDB
and/or (c) making additional contributions (if permitted under your
contract).
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.
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 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.
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.
52
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 during your lifetime and while the contract is in
force. A beneficiary 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 are not liable for any payments we
make or actions we take before we receive the change. 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. For NQ contracts where an Income Edge
payment program has been elected with the Joint Election payment method, the
joint owner, successor owner, or joint annuitant, as applicable, supersedes any
inconsistent beneficiary designations. This means that a previous beneficiary
designation may be invalidated.
The death benefit is equal to your account value (the standard death benefit)
or, if elected, the Protected premium death benefit. We determine the amount of
the 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 ("date of claim"). Payment of the death benefit terminates the
contract.
If there are multiple beneficiaries, any accrued Breakpoint Credit Contract
Maintenance Fee Tier I and Contract Maintenance Fee Tier II, and, if the
Protected premium death benefit was in effect at the time of your death, any
accrued Protected premium death benefit charge will be applied pro rata to each
beneficiary's portion of the death benefit payment.
--------------------------------------------------------------------------------
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 (the "1-year rule"), 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. See
"Special Rules for NQ contracts when Income Edge or Income Edge Early
Retirement Option is in effect" later in this section for more information
regarding special rules applicable to such contracts.
There are various circumstances, however, in which the contract can be
continued by a successor owner or under a Beneficiary continuation option. For
NQ 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
NQ 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 of an NQ contract and your spouse is the sole primary
beneficiary, 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" or
under our Beneficiary continuation option;
.. elect Income Edge Beneficiary Advantage, as discussed below; or
.. for traditional and Roth IRA contracts, roll the death benefit proceeds
over into another similar arrangement.
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
53
PAYMENT OF DEATH BENEFIT
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 account value as of the date your
spouse's new contract is issued . This means that the death benefit proceeds
could vary up or down, based on investment performance, until your spouse's new
contract is issued.
NON-SPOUSAL SINGLE OWNER CONTRACT CONTINUATION
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 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, continue the contract
under the Beneficiary Continuation option or elect Income Edge Beneficiary
Advantage. If the Protected premium death benefit (PPDB), if any, was greater
than the account value on the date of claim, then we will reset the account
value to equal the PPDB. If the contract continues, withdrawal charges, if
applicable under your contract, will no longer apply, the PPDB (and associated
charge) is terminated and no additional contributions will be permitted. Any
such election must be made in accordance with our rules at the time of death.
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 generally 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 terms of the supplemental contract
supersede the terms of the contract.
If the older owner dies first, the surviving owner can elect to (1) take the
death benefit as a lump sum payment; (2) annuitize within one year;
(3) continue the contract for up to five years; (4) continue the contract under
the Beneficiary continuation option; or (5) elect Income Edge Beneficiary
Advantage. If the PPDB, if any, was greater than the account value on the date
of claim, then we will reset the account value to equal the PPDB. If the
contract continues, withdrawal charges, if applicable under your contract, will
no longer apply, the PPDB (and associated charge) is terminated and no
additional contributions will be permitted.
If the younger owner dies first, the surviving owner can elect to (1) take the
death benefit as a lump sum payment; (2) annuitize within one year;
(3) continue the contract for up to five years; (4) continue the contract under
the Beneficiary continuation option; or (5) elect Income Edge Beneficiary
Advantage. If the contract continues (other than under the Beneficiary
continuation option or through an election of Income Edge Beneficiary
Advantage), withdrawal charges, if applicable under your contract, will
continue to apply and no additional contributions will be permitted. The PPDB,
if any, will remain in effect based on the older owner's age, and becomes
payable to the beneficiary if the older owner dies within five years. Charges
for the PPDB will continue to apply. If Income Edge Beneficiary Advantage is
elected, the PPDB, if any, will be terminated on the Income Edge Effective
Date, and any accrued PPDB charge will be deducted on that date.
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, or if the contract
owner is a non-natural person and you and your younger spouse are joint
annuitants, 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.
In addition, where such a 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.
For jointly owned NQ contracts where an Income Edge payment program has not
been elected or, if elected, payments have not yet begun, if the YOUNGER spouse
dies first no death benefit is paid, and the contract continues as follows:
.. 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 the annuitant was neither the deceased or the surviving spouse, the
surviving spouse can elect to become the annuitant and supersede the named
annuitant. Alternatively, the surviving spouse can allow the named
annuitant to remain on the contract and instead become the annuitant upon
the death of the named annuitant.
.. The withdrawal charge schedule, if applicable, remains in effect.
.. The Protected premium death benefit, if any, will remain in effect based on
the older spouse's age, and charges for the PPDB will continue to apply.
.. An Income Edge payment program may be elected at any time so long as the
eligibility rules for the feature are satisfied.
For jointly owned NQ contracts where an Income Edge payment program has not
been elected or, if elected, payments have not yet begun, if the OLDER spouse
dies first, the surviving owner can (1) take the death benefit as a lump sum
payment; (2) annuitize within one year; (3) continue the contract under the
Spousal continuation option; (4) continue the contract under the Beneficiary
continuation option; or (5) elect Income Edge Beneficiary Advantage. If the
PPDB, if any, was greater than the account value on the date of claim, then we
will reset the account value to equal the PPDB.
If the contract continues under the Spousal continuation option:
.. The surviving spouse becomes the sole owner. If the deceased spouse was the
annuitant, the surviving spouse becomes the annuitant.
.. If the surviving spouse is age 86 or older, election of an Income Edge
payment program is not available. A surviving spouse aged 86 or older who
wishes to elect Income Edge should consider electing Income Edge
Beneficiary Advantage instead of Spousal continuation.
54
PAYMENT OF DEATH BENEFIT
.. If the deceased spouse was a joint annuitant, the contract will become a
single annuitant contract. If the annuitant was neither the deceased or the
surviving spouse, the surviving spouse can elect to become the annuitant
and supersede the named annuitant. Alternatively, the surviving spouse can
allow the named annuitant to remain on the contract and instead become the
annuitant upon the death of the named annuitant.
.. The PPDB, if any, will remain in effect if on the date of the older
spouse's death the surviving spouse is 95 or younger. For details of how we
calculate charges for the PPDB under joint owner spousal continuation, see
"Protected premium death benefit charge" in "Charges and expenses".
.. Withdrawal charges, if applicable under the contract, will no longer apply
to the account value on the date of the older spouse's death, but they will
apply to the amount of any subsequent contributions by the surviving spouse.
For single owner NQ contracts with a SOLE SPOUSAL BENEFICIARY where Income Edge
or Income Edge Early Retirement Option has not been elected or, if elected,
payments have not yet begun, the sole spousal beneficiary can (1) take the
death benefit as a lump sum payment within five years of the deceased owner's
death; (2) annuitize within one year; (3) continue the contract (but only if
age 85 or younger on the date of death of the deceased owner) under the Spousal
continuation option; (4) continue the contract under the Beneficiary
continuation option; or (5) elect Income Edge Beneficiary Advantage. If the
PPDB, if any, was greater than the account value on the date of claim, then we
will reset the account value to equal the PPDB.
If the contract continues under the Spousal continuation option:
.. The sole spousal beneficiary becomes the sole owner. If the deceased owner
was also the annuitant, the sole spousal beneficiary becomes the annuitant.
.. If the deceased owner was a joint annuitant, the contract will become a
single annuitant contract. If the deceased owner was not the annuitant, the
sole spousal beneficiary can elect to become the annuitant and supersede
the named annuitant. Alternatively, the sole spousal beneficiary can allow
the named annuitant to remain on the contract and instead become the
annuitant upon the death of the named annuitant.
.. A sole spousal beneficiary who is age 85 or younger can elect Income Edge
Beneficiary Advantage at any time prior to age 86, rather than having to
make such election within 9 months of the date of death. For information
about Income Edge Beneficiary Advantage, see "Income Edge Beneficiary
Advantage for NQ contracts only" later in this section.
.. The PPDB, if any, will remain in effect if on the date of the deceased
owner's death the sole spousal beneficiary is 85 or younger. For details of
how we calculate charges for the PPDB under spousal continuation, see
"Protected premium death benefit charge" in "Charges and expenses".
.. Withdrawal charges, if applicable under the contract, will no longer apply
to the account value as of the date of the deceased spouse's death, but
they will apply to the amount of any subsequent contributions by the sole
spousal beneficiary.
NON-NATURAL OWNER WITH SPOUSAL JOINT ANNUITANTS. For contracts with a
non-natural owner and spousal joint annuitants:
.. If the younger spouse dies first, no death benefit is payable. The
contract, including the PPDB (if elected), continues unchanged and
withdrawal charges (if applicable) will continue to apply.
.. If the older spouse dies first, the surviving younger spouse can (1) take
the death benefit as a lump sum payment; (2) annuitize within one year; (3)
continue the contract under the Spousal continuation option; (4) continue
the contract under the Beneficiary continuation option; or (5) elect Income
Edge Beneficiary Advantage. If the PPDB, if any, was greater than the
account value on the date of claim, then we will reset the account value to
equal the PPDB. If the contract continues under the spousal continuation
option, the PPDB, if any, will remain in effect if on the date of the older
spouse's death the surviving spouse is 95 or younger. For details of how we
calculate charges for the PPDB under spousal continuation, see "Protected
premium death benefit charge" in "Charges and expenses". If Income Edge
Beneficiary Advantage is elected, the PPDB, if any, will be terminated on
the Income Edge Effective Date, and any accrued PPDB charge will be
deducted on that date.
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.
If you divorce, Spousal continuation does not apply.
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.
BENEFICIARY CONTINUATION OPTION
We make this option available to beneficiaries under traditional IRA, Roth IRA
and NQ contracts. For NQ contracts, where Income Edge or Income Edge Early
Retirement Option has not been elected or, if elected, payments have not yet
begun, this feature permits a designated individual, on the contract owner's
death, to either:
.. maintain a contract with the deceased contract owner's name on it and
receive distributions under the contract; or
55
PAYMENT OF DEATH BENEFIT
.. elect Income Edge Beneficiary Advantage,
instead of receiving the death benefit in a single sum. Each of these options
is described below.
Please speak with your financial professional for further information.
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.
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 options but no
additional contributions will be permitted.
.. The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
.. 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 has not
elected Income Edge or Income Edge Early Retirement Option and dies before the
annuity maturity date, whether or not the owner and the annuitant are the same
person. In addition, this feature may be available following election of Income
Edge or Income Edge Early Retirement Option if the NQ contract owner dies
before the first Income Edge or Income Edge Early Retirement Option scheduled
payment is made. 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.
If you are interested in electing an Income Edge payment program, please see
"Income Edge Beneficiary Advantage for NQ contracts only" later in this section.
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 options but no
additional contributions will be permitted.
.. 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 take withdrawals, in addition to scheduled payments, at any
time.
.. Any partial withdrawals must be at least $300.
56
PAYMENT OF DEATH BENEFIT
.. 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.
.. All payments are taxable to the extent there are gains remaining in the
contract.
IF THE DECEASED IS THE OWNER OR THE OLDER JOINT OWNER:
.. No withdrawal charges, if applicable, will apply to any withdrawals by the
beneficiary.
IF THE DECEASED IS THE YOUNGER NON-SPOUSAL JOINT OWNER:
.. The contract's withdrawal charge schedule, if applicable, will continue to
be applied to any withdrawal or surrender other than scheduled payments;
the contract's free withdrawal amount will continue to apply to withdrawals
but does not apply to surrenders.
.. We do not impose a withdrawal charge on scheduled payments except if, when
added to any withdrawals previously taken in the same contract year,
including for this purpose a contract surrender, the total amount of
withdrawals and scheduled payments exceed the 10% free withdrawal amount.
See the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus.
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, and any need for immediate income.
INCOME EDGE BENEFICIARY ADVANTAGE FOR NQ CONTRACTS ONLY. The Income Edge
Beneficiary Advantage payment option is a form of Income Edge payment program
available under NQ contracts in the circumstances described below. We also
offer a version of Income Edge Beneficiary Advantage under the Inherited NQ
contract, which is a contract we offer to individual beneficiaries under
nonqualified deferred annuity contracts issued by other insurance companies for
the purpose of making post-death payments on the death of the holder. See
"Inherited NQ beneficiary payout contract" in "Contract features and benefits"
earlier in this Prospectus.
Under the Income Edge Beneficiary Advantage death benefit option for the
Investment Edge NQ contract ("Income Edge BA"), we take into account the cost
basis in calculating and reporting income amounts for "scheduled payments" (as
described below) we make to your beneficiary. A portion of each scheduled
payment is a return of the cost basis in the contract and thus excludable from
taxes.
The conditions for electing Income Edge BA are as follows:
.. The deceased NQ contract owner cannot have previously elected Income Edge,
Income Edge Early Retirement Option, or any other annuity payout option.
However, Income Edge BA may be available following election of Income Edge
or Income Edge Early Retirement Option if the NQ contract owner dies before
the first scheduled payment is made under Income Edge or Income Edge Early
Retirement Option.
.. Income Edge BA is available only to beneficiaries who are individuals. This
option is available whether or not the owner and the annuitant are the same
person. For example, if an Investment Edge NQ contract is owned by a trust
and the annuitant dies, Income Edge BA is available for a beneficiary who
is an individual, as the primary annuitant is treated as the owner for
purposes of triggering required payments.
.. Income Edge BA is intended only for beneficiaries who plan to take payments
at least annually over a period measured by their life expectancy. We call
these "scheduled payments." Scheduled payments must begin no later than one
year after the death of your death (the "Required Payment Starting Date").
Beneficiaries who do not want to take scheduled payments at least annually
and prefer to wait up to five years after your death to withdraw the entire
amount of their death benefit should instead consider the Beneficiary
continuation option for NQ contracts as discussed earlier in this section.
.. Income Edge BA 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.
.. There are no minimum age restrictions for a beneficiary's election of
Income Edge BA. A surviving spouse must be age 85 or younger under a single
life contract, or 95 or younger under a joint life contract, to elect
Income Edge BA.
.. The account value from the Investment Edge NQ contract allocated to your
beneficiary must be (a) at least $50,000 and (b) greater than the
corresponding cost basis allocated to your beneficiary.
.. If your Investment Edge NQ contract was issued in whole or in part from a
Section 1035 exchange from another nonqualified deferred annuity contract
(or life insurance policy), Income Edge BA is not available to any of your
beneficiaries unless we have received all Section 1035 exchange
contributions and at least some related cost basis information from the
issuing insurance company or companies.
If there are multiple beneficiaries under an Investment Edge NQ contract, the
account value is split among the beneficiaries in accordance with your
instructions, and we treat the separate shares of each beneficiary as a
separate contract for the purpose of determining whether Income Edge BA is
available.
We do not need to receive Income Edge BA elections from all eligible
beneficiaries before we commence payments. Each eligible beneficiary can submit
his/her own election. If the conditions for Income Edge BA are met, we will
establish a supplementary payout contract for that beneficiary based on his/her
own life expectancy. The supplementary payout contract will be issued in the
beneficiary's name with your name on it to reflect the status of the
supplementary contract as a beneficiary payout contract. We will also allocate
the cost basis of your Investment Edge contract to the supplementary payout
contracts in proportion to each beneficiary's share of the account value of
your Investment Edge contract.
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PAYMENT OF DEATH BENEFIT
We may impose a charge approximating premium tax in certain states on the
election of Income Edge BA.
If the conditions for electing Income Edge BA are met:
.. PAYMENT PERIOD. We will determine a payment period at the time that
scheduled payments begin. We will not use the life expectancy of more than
one individual to determine the payment period. The payment period is based
on your beneficiary's age, using an IRS table for post-death payments and
rounding down to the nearest whole number. Before scheduled payments start,
your beneficiary may choose a shorter payment period than the one we
determine, but a payment period must be at least 15 years (for
beneficiaries of Investment Edge(R) contracts) or 10 years (for
beneficiaries of Investment Edge(R) Select and Investment Edge(R) ADV
contracts). However, if your beneficiary's life expectancy period is
shorter than the applicable 15- or 10-year minimum, we will use the shorter
life expectancy period.
.. Your beneficiary must receive scheduled payments at least annually, but can
elect to receive scheduled payments monthly or quarterly.
.. We will make the first scheduled payment no later than the Required Payment
Starting Date. Your beneficiary can choose a date to start scheduled
payments earlier than the Required Payment Starting Date, as long as we
have all information we need to start scheduled payments on the earlier
date.
.. The amount of the first scheduled payment is determined by dividing the
account value as of the date payments start by the payment period as
determined above. Each subsequent annual scheduled payment is determined by
dividing the remaining account value as of the contract anniversary date by
the initial payment period reduced by 1 for each subsequent year.
.. Payment amounts are taken on a pro rata basis from your variable investment
options.
.. Your beneficiary may make transfers among the variable investment options.
.. Once scheduled payments begin, they cannot be stopped until the account
value falls to zero.
.. No other form of payout or annuity benefit is available after Income Edge
BA is elected.
.. PARTIAL WITHDRAWALS. Your beneficiary may choose at any time to withdraw
all or a portion of the account value. Any partial withdrawal must be at
least $300. Unlike Income Edge BA scheduled payments, no portion of such
withdrawals will represent a return of cost basis in the contract, and thus
will not affect the Tax-Free Amount applicable to subsequent Income Edge BA
scheduled payments. Withdrawal charges will apply as described in "Charges
and expenses" later in this Prospectus.
.. Change of ownership of the supplementary contract is not permitted after
Income Edge BA is elected.
.. At the death of a beneficiary who has elected Income Edge BA, the spousal
continuation and beneficiary continuation options are not available. We
will continue scheduled payments to a successor beneficiary chosen by your
beneficiary. The successor beneficiary has the same rights as your
beneficiary to take partial withdrawals in addition to scheduled payments
and to fully surrender (redeem) the contract. If there is more than one
individual or entity chosen by your beneficiary to be a successor
beneficiary, we will make payments in equal shares unless your beneficiary
had instructed us in writing to pay one or more successor beneficiaries in
a different manner.
SPECIAL RULES FOR NQ CONTRACTS WHEN INCOME EDGE OR INCOME EDGE EARLY RETIREMENT
OPTION IS IN EFFECT
For NQ contracts where Income Edge or Income Edge Early Retirement Option has
been elected prior to the owner's death, the following rules apply upon the
death of the owner:
.. Any successor owner or joint annuitant named in connection with the
election of Income Edge will supersede any inconsistent designated
beneficiary.
.. If the owner dies after the first scheduled payment under Income Edge or
Income Edge Early Retirement Option is made, scheduled payments will
continue and will be made to the beneficiary on the same schedule as they
would otherwise have been made.
.. The beneficiary (including a joint owner, successor owner, or joint
annuitant, as applicable) may instead surrender the contract and take a
lump sum payment of the account value.
.. For contracts with named or designated multiple beneficiaries, each
beneficiary must choose, as to their share of the proceeds of the contract,
whether to (i) continue receiving scheduled payments; or (ii) surrender the
contract and take a lump sum payment. Each beneficiary will be able to
claim their proportionate share of the Tax-Free Amount remaining at the
time that all required paperwork for their election is received in good
order.
Scheduled payments under Income Edge or Income Edge Early Retirement Option
will continue to be made to the deceased owner until all required paperwork
from the beneficiary is received in good order. In the case of multiple
beneficiaries, scheduled payments to the deceased owner will continue and be
adjusted accordingly until all required paperwork has been received in good
order from each beneficiary. Until claimed by the appropriate beneficiary,
contract proceeds will remain invested as they were at the time of the owner's
death, and will thus be subject to market performance during that time.
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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 Investment Edge(R) series contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ (including for this purpose Inherited NQ), traditional
IRA, Roth IRA (including for this purpose both types of Inherited 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 Internal Revenue Service ("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
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
contract holders, as well as report contract values and other information for
such contract holders. 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.
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. See Appendix IV at the end of this Prospectus
for a discussion of QP contracts.
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
contract benefits may include, but are not limited to, guaranteed death
benefits. Currently we believe that these provisions would not apply an
Investment Edge contract because of the type of benefits provided under the
contract.
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 nonquali-fied annuity
contract.
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);
.. if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
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TAX INFORMATION
.. 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 an Investment Edge(R) series contract occurs when your
entire 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. Except as provided in
"Income Edge" later in this section (including for this purpose "Income Edge
Early Retirement Option" and "Income Edge Beneficiary Advantage"), 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).
Annuitization payments that are based on life or life expectancy are considered
annuity payments for income tax purposes.
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 portion 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 annuity value 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.
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-contigent
basis or for a period certain of at least 10 years. 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. We do not currently offer a period certain option without life
contingencies for partial annuitizations.
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 account value less your 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.
INCOME EDGE PAYMENT PROGRAM
The Income Edge payment program is a form of variable annuity payout discussed
previously in "Income Edge Payment Program" in the "Accessing your money"
section of the Prospectus. An Income Edge payment program is intended to
annuitize amounts over a specified period of time. Unlike traditional forms of
annuitization, an Income Edge payment program allows for a mode of
annuitization that provides continuing access to the contract's account balance.
INCOME EDGE. Under the standard form of Income Edge payment program, the
payment period is generally determined at the time that Income Edge is elected
based on your (and a joint annuitant's, if applicable) age. The account value
is then divided by the Annual Payout Periods remaining in the payment period to
compute that Annual Payout Period's payout amount. All amounts in the contract
are fully distributed under Income Edge by the end of the payment period, if
not sooner. You are permitted to select a shorter payment period.
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TAX INFORMATION
Federal tax law requires that once pay-outs have begun:
.. the Tax-Free Amount will be a fixed dollar amount that will not change from
year to year (it will be determined at the time of election) and will be
reported on IRS form 1099-R each year;
.. no further contributions are permitted;
.. once the pay-out starts, it cannot be stopped (except upon surrender or
redemption of the contract, if permitted); and
.. Section 1035 exchanges are not available (inbound or outbound).
We believe that the Income Edge variable annuity payout feature complies with
current Federal tax law requirements. Although a ruling is not required as a
pre-condition for treating Income Edge as a variable payout annuity, we have
received a private letter ruling from the IRS confirming our belief.
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INCOME EDGE EARLY RETIREMENT OPTION. The payment period for Income Edge Early
Retirement Option ("Income Edge ERO") is determined based on your age at the
time that Income Edge ERO is elected, with reference to an IRS table and
rounding down to the nearest whole number. Also, you are not permitted to
select a shorter payment period or use more than one individual's life
expectancy to determine the payment period. Even though the private letter
ruling we received from the IRS in connection with the standard form of Income
Edge does not specifically address Income Edge ERO, we believe, based on our
review and interpretation of applicable federal tax law, that the Income Edge
ERO payout methodology constitutes a series of "substantially equal periodic
payments" within the applicable requirements of Section 72(q) of the Code and
therefore complies with current federal tax law requirements applicable to
variable annuity payouts.
INCOME EDGE BENEFICIARY ADVANTAGE. Whether your beneficiary elects Income Edge
Beneficiary Advantage ("Income Edge BA") as a death benefit option under
Investment Edge, as described in the "Payment of death benefit" section of the
Prospectus, or you elect Income Edge BA under an Inherited NQ beneficiary
payment contract, as described in the "Contract features and benefits" section
of the Prospectus, the Income Edge BA payment period is determined at the time
that required payments after the death of the contract holder begin. The
payment period is based on the recipient's age at the time that Income Edge BA
payments begin, using an IRS table for post-death payments and rounding down to
the nearest whole number. The recipient may select a shorter payment period,
but is not permitted to use more than one individual's life expectancy to
determine payment period. Even though the private letter ruling we received
from the IRS in connection with the standard form of Income Edge does not
specifically address Income Edge BA, we believe, based on our review and
interpretation of applicable federal tax law, that the Income Edge BA payout
methodology constitutes a series of "substantially equal periodic payments"
over a "period not extending beyond the life expectancy" of a beneficiary
within the applicable requirements of 72(s) of the Code and therefore complies
with current federal tax law requirements applicable to post-death payouts from
variable annuity contracts.
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UNRECOVERED TAX-FREE AMOUNT IN A GIVEN YEAR. We report Tax-Free Amount on IRS
Form 1099-R each year. If the scheduled payment amount in any year is less than
the Tax-Free Amount this results in unrecovered Tax-Free Amount or a "loss in
basis" for that year. The unrecovered Tax-Free Amount may be used later by
making an election on a personal income tax return; however, the Tax-Free
Amount reported by us in following years will not change. IRS Publication 939
(GENERAL RULE FOR PENSIONS AND ANNUITIES) provides an explanation and example
of how to elect to re-compute your tax-free annuity amounts.
We will notify you of any unrecovered cost basis in loss years (and every year
thereafter) so you can take appropriate action in consultation with an
independent tax advisor on your tax return and amortize the unrecovered amounts
over the remaining payment period.
Any "unrecovered Tax-Free Amount" must be used by the end of the payment period
by amortizing it over the payments from this contract.
If you completely surrender the contract before the end of the payment period
and you have a loss, you may be able to report it as an ordinary loss on your
tax return. You should discuss this with your tax advisor.
PARTIAL REDEMPTIONS. While an Income Edge payment program is in effect, there
is flexibility to take additional amounts after Income Edge scheduled payments
begin; however, such amounts are generally fully includable in income as
amounts not received as an annuity after the annuity starting date. This is
regardless of whether there are any gains in the contract. The Tax-Free Amount
for future Income Edge scheduled payments is not recalculated due to a partial
redemption. Income Edge scheduled payments will continue as planned; however, a
partial redemption may cause future Income Edge scheduled payments to be
smaller and that, consequently, could cause Income Edge scheduled payments to
be less than the Tax-Free Amount for a given year.
.. The above description also applies to Income Edge Beneficiary Advantage
(whether elected by your beneficiary as a death benefit option under
Investment Edge, as described in the "Payment of death benefit" section of
the Prospectus, or you elect Income Edge Beneficiary Advantage under an
Inherited NQ beneficiary payment contract, as described in the "Contract
features and benefits" section of the Prospectus).
.. The above description also applies to Partial withdrawals (redemptions)
under Income Edge Early Retirement Option. However, if you take a partial
withdrawal before (a) you reach age 59 1/2 or (b) regardless of age, if you
have not received five full years of scheduled payments, a penalty tax,
including an interest charge for the prior penalty avoidance, may apply to
all prior payments and distributions.
1035 EXCHANGES
You may purchase a nonqualified deferred annuity 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
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TAX INFORMATION
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 issued in exchange contract.
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.
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; the insurance company issuing the source contract controls the tax
information reporting of the transaction as a Section 1035 exchange. Because
information reports are not provided and filed until the calendar year after
the exchange transaction, the insurance company issuing the source contract
shows its agreement that the transaction is a 1035 exchange by providing to us
the cost basis of the exchanged source contract when it transfers the money to
us on your behalf.
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. In addition, Income Edge
scheduled payments made to a beneficiary after death will receive the same tax
treatment as if they were paid to the owner. The same rules apply to Income
Edge Early Retirement Option and Income Edge Beneficiary Advantage payments
which continue after the death of the owner or beneficiary/owner, as the case
may be.
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 payments 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.
We believe that the substantially equal withdrawals option and Income Edge
Early Retirement Option should each qualify for the substantially equal
periodic payment exception. See "Substantially equal withdrawals" and "Income
Edge Early Retirement Option" in the "Accessing your money" section earlier in
this Prospectus. The substantially equal periodic payment exception may not
apply to:
.. The substantially equal withdrawals option if you stop or change the
payment pattern before the later of (a) reaching age 59 1/2 or (b) five
years after the date of the first distribution.
.. Income Edge Early Retirement Option if you take withdrawals before the
later of (a) reaching age 59 1/2 or (b) five years after the date of the
first scheduled payment.
IF THE SUBSTANTIALLY EQUAL PERIODIC PAYMENT EXCEPTION DOES NOT APPLY IN EITHER
OF THESE CASES, YOU MAY BE LIABLE FOR A PENALTY TAX, INCLUDING AN INTEREST
CHARGE FOR THE PRIOR PENALTY AVOIDANCE.
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 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, or an unlimited right
to transfer among them, 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
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your contract as necessary to prevent you from being treated as the owner of
the assets of Separate Account No. 70.
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.
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.
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).
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. Inherited IRA contracts are available for all
versions of Investment Edge(R) series contracts.
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).
Except as applicable to SEP-IRA Contracts (see "Simplified Employee Pension
Plans (SEP Plans)" later in this section), we have not applied for opinion
letters approving the respective forms of the traditional IRA and Roth IRA
contracts (including Inherited 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 any version of the Investment Edge(R) series IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel within 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 subsequent 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").
When you make a contribution to your IRA, we require you to tell us whether it
is a regular contribution, rollover contribution, or direct transfer
contribution, and to supply supporting documentation in some cases.
Because the minimum initial contribution AXA Equitable requires to purchase
this contract is larger than the maximum regular contribution you can make to
an IRA for a taxable year, this contract must be purchased through a rollover
or direct transfer contribution. Subsequent contributions may also be "regular"
contributions out of compensation.
See "Simplified Employee Pension Plans (SEP Plans)" later in this section for
information about contributions to a SEP-IRA Contract.
REGULAR CONTRIBUTIONS TO TRADITIONAL IRAS
LIMITS ON CONTRIBUTIONS. The "maximum regular contribution amount" for any
taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the
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particular taxable year. The maximum regular contribution amount depends on
age, earnings, and year, among other things. Generally, $5,500 is the maximum
amount that you may contribute to all IRAs (traditional IRAs and Roth IRAs) for
2015, after adjustment for cost-of-living changes. When your earnings are below
$5,500, your earned income or compensation for the year is the most you can
contribute. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a traditional IRA. You cannot make
regular traditional IRA contributions for the tax year in which you reach age
70 1/2 or any tax year after that.
If you are at least age 50 at any time during the taxable year for which you
are making a regular contribution to your IRA, you may be eligible to make
additional "catch-up contributions" of up to $1,000 to your traditional IRA.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to determine the
amount of regular contributions you are permitted to make to traditional IRAs
(and Roth IRAs discussed below). Even if one spouse has no compensation or
compensation under $5,500, married individuals filing jointly can contribute up
to $11,000 per year to any combination of traditional IRAs and Roth IRAs. Any
contributions to Roth IRAs reduce the ability to contribute to traditional IRAs
and vice versa. The maximum amount may be less if earned income is less and the
other spouse has made IRA contributions. No more than a combined total of
$5,500 can be contributed annually to either spouse's traditional and Roth
IRAs. Each spouse owns his or her traditional IRAs and Roth IRAs even if the
other spouse funded the contributions. A working spouse age 70 1/2 or over can
contribute up to the lesser of $5,500 or 100% of "earned income" to a
traditional IRA for a non-working spouse until the year in which the nonworking
spouse reaches age 70 1/2. Catch-up contributions may be made as described
above for spouses who are at least age 50 but under age 70 1/2 at any time
during the taxable year for which the contribution is made.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
The federal tax rules governing contributions to IRAs made from current
compensation are complex and are subject to numerous technical requirements and
limitations which vary based on an individual's personal situation (including
his/her spouse). IRS Publication 590-A, "Contributions to Individual Retirement
Arrangements (IRAs)" which is updated annually and is available at www.irs.gov,
contains pertinent explanations of the rules applicable to the current year.
The amount of permissible contributions to IRAs, the amount of IRA
contributions which may be deductible, and the individual's income limits for
determining contributions and deductions all may be adjusted annually for cost
of living.
NONDEDUCTIBLE REGULAR CONTRIBUTIONS. If you are not eligible to deduct part or
all of the traditional IRA contribution, you may still make nondeductible
contributions on which earnings will accumulate on a tax-deferred basis. The
combined deductible and nondeductible contributions to your traditional IRA (or
the non-working spouse's traditional IRA) may not, however, exceed the maximum
$5,000 per person limit for the applicable taxable year ($5,500 for 2015 after
adjustment). The dollar limit is $1,000 higher for people eligible to make age
50-70 1/2"catch-up" contributions ($6,500 for 2015). You must keep your own
records of deductible and nondeductible contributions in order to prevent
double taxation on the distribution of previously taxed amounts. See
"Withdrawals, payments and transfers of funds out of traditional IRAs" later in
this section for more information.
If you are making nondeductible contributions in any taxable year, or you have
made nondeductible contributions to a traditional IRA in prior years and are
receiving distributions from any traditional IRA, you must file the required
information with the IRS. Moreover, if you are making nondeductible traditional
IRA contributions, you must retain all income tax returns and records
pertaining to such contributions until interests in all traditional IRAs are
fully distributed.
WHEN YOU CAN MAKE REGULAR CONTRIBUTIONS. If you file your tax returns on a
calendar year basis like most taxpayers, you have until the April 15 return
filing deadline (without extensions) of the following calendar year to make
your regular traditional IRA contributions for a taxable year. Make sure you
designate the year for which you are making the contribution.
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 traditional IRAs.
Direct transfer contributions may only be made directly from one traditional
IRA to another.
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. A non-spousal death beneficiary may also be able to
make a direct rollover to an inherited IRA contract with special rules and
restrictions under certain circumstances.
There are two ways to do rollovers:
.. 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.
.. 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.
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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.
Rollovers from an eligible retirement plan to a traditional IRA are not subject
to the "one-per-year limit" noted later in this section.
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.
ROLLOVERS FROM TRADITIONAL IRAS TO TRADITIONAL IRAS
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 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
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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"
under "Rollover and direct transfer contributions to 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.
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.
REQUIRED MINIMUM DISTRIBUTIONS
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. Distributions must be made from
traditional IRAs according to rules contained in the Code and Treasury
Regulations. 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 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, using the method that you picked for that
particular IRA. 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
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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 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.
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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 annual 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.
SIMPLIFIED EMPLOYEE PENSIONS (SEPS)
An employer can establish a Simplified Employee Pension Plan (SEP plan) for its
employees, and can make contributions to a contract for each eligible employee.
A self-employed individual may be an employer for this purpose. A SEP-IRA
contract is a form of traditional IRA contract, owned by the employee-annuitant
who is a participant under the SEP plan and most of the rules which apply to
traditional IRAs apply. See the discussion above under "Traditional individual
retirement annuities (traditional IRAs)."
A major difference is the amount of permissible contributions. An employer can
annually contribute an amount for an employee up to the lesser of 25% of
eligible compensation or $40,000 ($53,000 after cost-of-living adjustment for
2015). This amount may be further adjusted for cost-of-living changes in future
years. Rules similar to the federal tax rules governing qualified plans apply
to which employees must be covered and calculation of employer contributions
under a SEP plan.
Employers must rely on their own tax and legal advisors regarding the
establishment and operation of their SEP plans. An employer sponsoring a SEP
plan should discuss with its tax advisor the requirements under the SEP plan to
make contributions for its employees and should consider the availability of
other funding vehicles for the SEP plan, given the limits on the amount and
timing of contributions under the Investment Edge(R) SEP-IRA contract.
Participating employees who are considering the purchase of an Investment
Edge(R) series SEP-IRA contract through a sponsoring employer's SEP plan
contributions should discuss with their employers and their tax advisors that
the Investment Edge(R) series SEP-IRA contract is not a model traditional IRA
established on an IRS form. AXA Equitable intends to apply for an opinion
letter that the Investment Edge(R) series SEP-IRA contract may be used in
connection with an employer's SEP plan established using an IRS Form 5305-SEP.
It is not clear whether, or when, the IRS would issue any such opinion letter.
AXA Equitable requires a minimum contribution to purchase an Investment Edge(R)
Select or Investment Edge(R) ADV SEP-IRA contract which may be larger than the
employer contribution with respect to compensation for an employee. In such a
case the contract would have to be purchased through a direct transfer from
another traditional IRA or through a rollover from another eligible retirement
plan, or some combination of contributions permissible under the SEP plan, Code
and SEP-IRA contract terms.
Under federal income tax rules employees participating in an employer's SEP
plan are not prohibited from making traditional IRA contributions with respect
to the employee's compensation to the same traditional IRA which is being
funded through employer contributions under the SEP plan. Please note that the
terms of the Investment Edge(R) series SEP-IRA contract do not permit the
Investment Edge(R) series SEP-IRA contract owner to make traditional IRA
contributions at the same time as the employer sponsoring the SEP plan is
making employer contributions to the Investment Edge(R) series SEP-IRA
contract. However, if the Investment Edge(R) series SEP-IRA contract owner
requests in writing supported by appropriate documentation that either (i) the
sponsoring employer has terminated the SEP plan or (ii) the Investment Edge(R)
series SEP-IRA contract owner has separated from service with the sponsoring
employer, we will remove the "SEP-IRA" designation from the contract on our
records and merely retain the "traditional IRA" designation. No fees or charges
will be imposed on any such change of designation. Thereafter, we will no
longer accept employer contributions. If the IRA contract owner is eligible to
make contributions, we will accept traditional IRA regular contributions
described earlier in this section under "Traditional individual retirement
annuities (traditional IRAs)."
Please also note, if the sponsoring employer's plan is a "Salary Reduction
Simplified Employee Pension Plan" or "SARSEP" established before 1997 that the
Investment Edge(R) series SEP-IRA contract does not accept salary reduction or
employer contributions.
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 IRAs."
The Investment Edge(R) 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").
Regular after-tax, direct transfer and rollover contributions may be made to a
Roth IRA contract. See "Rollovers and direct transfer contributions to Roth
IRAs" later in this section for more information. If
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you use the forms we require, we will also accept traditional IRA funds which
are subsequently recharacterized as Roth IRA funds following special federal
income tax rules.
Because the minimum initial contribution required to purchase this contract is
larger than the maximum regular contribution you can make to an IRA for a
taxable year, this contract must be purchased through a rollover or direct
transfer contribution. Subsequent contributions may also be "regular"
contributions out of compensation.
REGULAR CONTRIBUTIONS TO ROTH IRAS
LIMITS ON REGULAR CONTRIBUTIONS. The "maximum regular contribution amount" for
any taxable year is the most that can be contributed to all of your IRAs
(traditional and Roth) as regular contributions for the particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally, $5,500 is the maximum amount that you may
contribute to all IRAs (traditional IRAs and Roth IRAs) for 2015, after
adjustment for cost-of-living changes. This limit does not apply to rollover
contributions or direct custodian-to-custodian transfers into a Roth IRA. Any
contributions to Roth IRAs reduce your ability to contribute to traditional
IRAs and vice versa. When your earnings are below $5,500, your earned income or
compensation for the year is the most you can contribute. If you are married
and file a joint income tax return, you and your spouse may combine your
compensation to determine the amount of regular contributions you are permitted
to make to Roth IRAs and traditional IRAs. See the discussion under "Special
rules for spouses" earlier in this section under traditional IRAs.
If you or your spouse are at least age 50 at any time during the taxable year
for which you are making a regular contribution, you may be eligible to make
additional catch-up contributions of up to $1,000.
With a Roth IRA, you can make regular contributions when you reach 70 1/2, as
long as you have sufficient earnings. The amount of permissible contributions
to Roth IRAs for any year depends on the individual's income limits and marital
status. For example, if you are married and filing separately for any year your
ability to make regular Roth IRA contributions is greatly limited. The amount
of permissible contributions and income limits may be adjusted annually for
cost of living. Please consult IRS Publication 590-A, "Contributions to
Individual Retirement Arrangements (IRAs)" for the rules applicable to the
current year.
WHEN YOU CAN MAKE CONTRIBUTIONS. Same as traditional IRAs.
DEDUCTIBILITY OF CONTRIBUTIONS. Roth IRA contributions are not tax deductible.
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 can also make rollover transactions between identical plan
types. However, you can only make rollovers between different plan types (for
example, traditional 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, 403(b) plan,
or 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 Roth IRA to Roth IRA rollover
transactions 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.
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) all or a portion of 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.
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 all or part of 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
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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.
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.
HOW TO RECHARACTERIZE. To recharacterize a contribution, you generally must
have the contribution transferred from the first IRA (the one to which it was
made) to the second IRA in a deemed trustee-to-trustee transfer. If the
transfer is made by the due date (including extensions) for your tax return for
the year during which the contribution was made, you can elect to treat the
contribution as having been originally made to the second IRA instead of to the
first IRA. It will be treated as having been made to the second IRA on the same
date that it was actually made to the first IRA. You must report the
recharacterization and must treat the contribution as having been made to the
second IRA, instead of the first IRA, on your tax return for the year during
which the contribution was made.
The contribution will not be treated as having been made to the second IRA
unless the transfer includes any net income allocable to the contribution. You
can take into account any loss on the contribution while it was in the IRA when
calculating the amount that must be transferred. If there was a loss, the net
income you must transfer may be a negative amount.
No deduction is allowed for the contribution to the first IRA and any net
income transferred with the recharacterized contribution is treated as earned
in the second IRA. The contribution will not be treated as having been made to
the second IRA to the extent any deduction was allowed with respect to the
contribution to the first IRA.
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.
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
includible 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).
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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.
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 includible 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
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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 includible in gross income.
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 IV 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
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 in shares issued by the corresponding Portfolio of its 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 close a variable investment option to transfers and contributions; and
(9)to add variable investment options and to limit the number of variable
investment options which you may elect.
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 are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
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The general account is subject to regulation and supervision by the
New York State Department of Financial Services 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.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgement of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
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 recurring 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 (or, for NQ
contracts where an Income Edge payment program has been elected, an Income
Edge Anniversary Date) 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, CREDITS AND TRANSFERS
.. Contributions allocated to the variable investment options are invested at
the unit value next determined after the receipt of the contribution.
.. Transfers to or from variable investment options will be made at the unit
value next determined after receipt of the transfer request.
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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 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.
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 AUVs, 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.
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 (i) annuity
payments begin; or (ii) Income Edge or Income Edge Early Retirement Option
scheduled payments begin. Transfer of an Inherited
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NQ contract is not permitted. Transfer of ownership will terminate any Income
Edge payment program election that was in effect prior to the transfer. We will
continue to treat you as the owner until we receive written notification of any
change at our processing office. You may also add an owner to your contact if
the new owner is younger than the original owner and (i) your contract had only
one owner when issued; and (ii) it is done before annuity payments begin or you
elect Income Edge. With respect to ownership transfers and/or assignments in
connection with a divorce, you should consider that it may be difficult to
effect such transactions following election of an Income Edge payment program.
In addition, effectuating such a transfer after election of an Income Edge
payment program may have adverse tax consequences. Please consult your tax
advisor for more information.
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).
Following a change of ownership, the existing beneficiary designations will
remain in effect until the new owner provides new designations.
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 or 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. In the case of such
a transfer, which involves a surrender of your contract, we will impose a
withdrawal charge, if one applies.
Loans are not available under Investment Edge(R) series contracts.
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 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. Collateral
assignments are not available after any type of Income Edge or another form of
annuity payout is elected. Collateral assignments must be removed before Income
Edge or another form of annuity payout is elected. See "Income Edge Payment
Program" in "Accessing Your Money" earlier in this Prospectus.
Following a collateral assignment, all withdrawals, distributions and payments
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.
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.
DISTRIBUTION OF THE CONTRACTS
The contracts are distributed by both AXA Advisors, LLC ("AXA Advisors") and
AXA Distributors, LLC ("AXA Distributors") (together, the "Distributors"). The
Distributors serve as principal underwriters of Separate Account No. 70. The
offering of the contracts is intended to be continuous.
AXA Advisors is an affiliate of AXA Equitable, and AXA Distributors is an
indirect wholly owned subsidiary of AXA Equitable. The Distributors are under
the common control of AXA Financial, Inc. Their principal business address is
1290 Avenue of the Americas, New York, NY 10104. The Distributors are
registered with the SEC as broker-dealers and are members of the Financial
Industry Regulatory Authority, Inc. ("FINRA"). Both broker-dealers also act as
distributors for other AXA Equitable life and annuity products.
The contracts are sold by financial professionals of AXA Advisors and its
affiliates. The contracts are also sold by financial professionals of
unaffiliated broker-dealers that have entered into selling agreements with the
Distributors ("Selling broker-dealers").
AXA Equitable pays compensation to both Distributors based on contracts sold.
AXA Equitable may also make additional payments to the Distributors, and the
Distributors may, in turn, make additional payments to certain Selling
broker-dealers. 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 the Distributors or the Selling broker-dealers
discussed in this section of the Prospectus are 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
contract 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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AXA ADVISORS COMPENSATION.
FOR INVESTMENT EDGE(R), AND INVESTMENT EDGE(R) SELECT CONTRACTS:
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 8.50% of total
contributions. AXA Advisors, in turn, may pay a portion of the
contribution-based compensation received from AXA Equitable to the AXA Advisors
financial professional and/or the Selling broker-dealer making the sale. In
some instances, a financial professional or a Selling broker-dealer may elect
to receive reduced contribution-based compensation on a contract in combination
with 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 or a Selling broker-dealer 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 and among Selling broker-dealers.
FOR INVESTMENT EDGE(R) ADV CONTRACTS:
AXA Equitable pays compensation to AXA Advisors based on the advisory fee
associated with the custodial account. For contracts sold through AXA Advisors,
AXA Advisors will retain 50% of the advisory fee and the financial professional
will get the other 50%.
For all contract versions, 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
Selling broker-dealers sales bonuses (based on selling certain products during
specified periods) and persistency bonuses. AXA Advisors may offer sales
incentive programs to financial professionals and Selling broker-dealers 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.
For Investment Edge(R), and Investment Edge(R) Select contracts, when a
contract is sold by a Selling broker-dealer, the Selling broker-dealer, not AXA
Advisors, determines the compensation paid to the Selling broker-dealer's
financial professional for the sale of the contract. Therefore, you should
contract your financial professional for information about the compensation he
or she receives and any related incentives, as described immediately below.
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, which 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 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 among
products in the same category. For more information, contact your financial
professional.
AXA DISTRIBUTORS COMPENSATION.
FOR ALL CONTRACT VERSIONS EXCEPT INVESTMENT EDGE(R) ADV:
AXA Equitable pays contribution-based and asset-based compensation (together
"compensation") to AXA Distributors. Contribution-based compensation is paid
based on AXA Equitable contracts sold through AXA Distributors' Selling
broker-dealers. Asset-based compensation is paid based on the aggregate account
value of contracts sold through certain of AXA Distributors' Selling
broker-dealers. This compensation will generally not exceed 7.50% of the total
contributions made under the contracts. AXA Distributors, in turn, pays the
contribution-based compensation it receives on the sale of a contract to the
Selling broker-dealer making the sale. In some instances, the Selling
broker-dealer may elect to receive reduced contribution-based compensation on
the sale of the contract in combination with annual asset-based compensation of
up to 1.25% of the contract's Total account value. If a Selling broker-dealer
elects to receive reduced contribution-based compensation on a contract, the
contribution-based compensation which AXA Equitable pays to AXA Distributors
will be reduced by the same amount, and AXA Equitable will pay AXA Distributors
asset-based compensation on the contract equal to the asset-based compensation
which AXA Distributors pays to the Selling broker-dealer. Total Compensation
paid to a Selling broker-dealer 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
contribution-based and asset-based compensation paid by AXA Distributors varies
among Selling broker-dealers.
The Selling broker-dealer, not AXA Distributors, determines the compensation
paid to the Selling broker-dealer's financial professional for the sale of the
contract. Therefore, you should contact your financial
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professional for information about the compensation he or she receives and any
related incentives, such as differential compensation paid for various products.
FOR INVESTMENT EDGE(R) ADV CONTRACTS:
For contracts sold through AXA Distributors, AXA Distributors will not receive
any compensation.
AXA Equitable also pays AXA Distributors compensation to cover its operating
expenses and marketing services under the terms of AXA Equitable's distribution
agreements with AXA Distributors.
ADDITIONAL PAYMENTS BY AXA DISTRIBUTORS TO SELLING BROKER-DEALERS. (THE
FOLLOWING SECTION APPLIES TO ALL CONTRACT VERSIONS EXCEPT INVESTMENT EDGE(R)
ADV) AXA Distributors may pay, out of its assets, certain Selling
broker-dealers and other financial intermediaries additional compensation in
recognition of services provided or expenses incurred. AXA Distributors may
also pay certain Selling broker-dealers or other financial intermediaries
additional compensation for enhanced marketing opportunities and other services
(commonly referred to as "marketing allowances"). Services for which such
payments are made may include, but are not limited to, the preferred placement
of AXA Equitable products on a company and/or product list; sales personnel
training; product training; business reporting; technological support; due
diligence and related costs; advertising, marketing and related services;
conference; and/or other support services, including some that may benefit the
contract owner. Payments may be based on ongoing sales, on the aggregate
account value attributable to contracts sold through a Selling broker-dealer or
such payments may be a fixed amount. For certain selling broker-dealers, AXA
Distributors increases the marketing allowance as certain sales thresholds are
met. AXA Distributors may also make fixed payments to Selling broker-dealers,
for example in connection with the initiation of a new relationship or the
introduction of a new product.
Additionally, as an incentive for the financial professionals of Selling
broker-dealers to promote the sale of AXA Equitable products, AXA Distributors
may increase the sales compensation paid to the Selling broker-dealer for a
period of time (commonly referred to as "compensation enhancements"). AXA
Distributors also has entered into agreements with certain selling
broker-dealers in which the selling broker-dealer agrees to sell certain AXA
Equitable contracts exclusively.
These additional payments may serve as an incentive for Selling broker-dealers
to promote the sale of AXA Equitable contracts over contracts and other
products issued by other companies. Not all Selling broker-dealers receive
additional payments, and the payments vary among Selling broker-dealers. The
list below includes the names of Selling broker-dealers that we are aware (as
of December 31, 2014) received additional payments. These additional payments
ranged from $40.15 to $4,874,706.21. AXA Equitable and its affiliates may also
have other business relationships with Selling broker-dealers, which may
provide an incentive for the Selling broker-dealers to promote the sale of AXA
Equitable contracts over contracts and other products issued by other
companies. The list below includes any such Selling broker-dealer. For more
information, ask your financial professional.
1st Global Capital Corporation
Allstate Financial Services, LLC
American Portfolios Financial Services
Ameriprise Financial Services
BBVA Compass Investment Solutions, Inc.
Cambridge Investment Research
Capital Investment Group
CCO Investment Services Corporation
Centaurus Financial, Inc.
Cetera Advisors, LLC
Cetera Advisors Networks, LLC
Cetera Financial Specialists, LLC
Cetera Investment Services, LLC
CFD Investments, Inc.
Citigroup Global Markets, Inc.
Commonwealth Financial Network
CUNA Brokerage Services
Cuso Financial Services, L.P.
Essex National Securities, Inc.
Farmer's Financial Solution
First Allied Securities Inc.
First Citizens Investor Services, Inc.
First Southeast Investor Services
First Tennessee Brokerage Inc.
Founders Financial Securities
FSC Securities Corporation
Geneos Wealth Management Inc.
GWN Securities, Inc.
H.D. Vest Investment Securities, Inc.
Harbour Investments
ICA/First Dakota, Inc.
IFC Holdings, Inc.
Independent Financial Group, LLC
Investacorp, Inc.
Investment Professionals, Inc.
Investors Capital Corporation
James T. Borello & Company
Janney Montgomery Scott LLC
JP Turner & Company, LLC
Key Investment Services LLC
Kovack Securities
Legend Equities
Lincoln Financial Advisors Corp.
Lincoln Financial Services Corp.
LPL Financial Corporation
Lucia Securities, LLC
Mercap Securities, LLC
Merrill Lynch Life Agency, Inc.
MetLife Securities, Inc.
Morgan Stanley Smith Barney
Mutual Service Corporation
National Planning Corporation
Navy Federal Brokerage Services
New England Securities, Inc.
Next Financial Group, Inc.
NFP Securities Inc.
PNC Investments
Prime Capital Services
Primerica Financial Services
Questar Capital Corporation
Raymond James & Associates
Raymond James Insurance Group
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RBC Capital Markets Corporation
Robert W Baird & Company
Royal Alliance Associates, Inc.
Sage Point Financial, Inc.
Santander Securities Corporation
Securities America Inc.
Signator Financial Services
Signator Investors, Inc.
SII Investments
Sorrento Pacific Financial LLC
Southwest Securities, Inc.
Summit Brokerage Services, Inc.
SunTrust Investments
SWS Financial Services
Tavenner Group
Tower Squares Securities
TransAmerica Financial Advisors
Triad Advisors
U.S. Bancorp Investments, Inc.
UBS Financial Services, Inc.
UVEST Financial Services Group
Valmark Securities, Inc.
VOYA Financial Advisors
Walnut Street Services
Waterstone Financial Group
Wells Fargo Advisors Financial Network, LLC
Wells Fargo Advisors, LLC
Wells Fargo Investments, LLC
Wesom Financial Services, LLC
Woodbury Financial Services, Inc.
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Appendix I: Condensed financial information
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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
0.30%.
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.
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FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
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7TWELVE/TM/ BALANCED PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $ 9.91 $ 9.97
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
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ALL ASSET AGGRESSIVE-ALT 25
---------------------------------------------------------------------------------------------
Unit value $10.29 $10.09
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
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ALL ASSET AGGRESSIVE-ALT 50
---------------------------------------------------------------------------------------------
Unit value $10.08 $ 9.94
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
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ALL ASSET AGGRESSIVE-ALT 75
---------------------------------------------------------------------------------------------
Unit value $ 9.83 $ 9.82
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Number of units outstanding (000's) -- --
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ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $ 9.73 --
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
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ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $10.27 --
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VPS REAL ESTATE INVESTMENT PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $10.77 --
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
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ALLIANCEBERNSTEIN VPS SMALL/MID CAP VALUE PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $10.09 --
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
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AMERICAN CENTURY VP INFLATION PROTECTION FUND
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Unit value $10.03 $ 9.73
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Number of units outstanding (000's) -- --
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AMERICAN CENTURY VP MID CAP VALUE FUND
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Unit value $11.89 $10.26
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Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) ASSET ALLOCATION FUND/SM/
---------------------------------------------------------------------------------------------
Unit value $10.79 $10.29
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------------
I-1
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
--------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL GROWTH FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $10.69 $10.51
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL CAPITALIZATION FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $10.48 $10.32
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GROWTH-INCOME FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $11.54 $10.49
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) INTERNATIONAL GROWTH AND INCOME FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $ 9.79 $10.16
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)
--------------------------------------------------------------------------------------------------------
Unit value $ 9.27 $10.12
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION
--------------------------------------------------------------------------------------------------------
Unit value $10.77 $10.32
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION
--------------------------------------------------------------------------------------------------------
Unit value $10.41 $10.14
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS ALLOCATION
--------------------------------------------------------------------------------------------------------
Unit value $10.58 $10.23
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AXA SMART BETA/TM/ EQUITY
--------------------------------------------------------------------------------------------------------
Unit value $10.97 $10.26
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH
--------------------------------------------------------------------------------------------------------
Unit value $11.28 $10.49
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
AXA/TEMPLETON GLOBAL EQUITY MANAGED VOLATILITY
--------------------------------------------------------------------------------------------------------
Unit value $10.37 $10.29
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
BLACKROCK GLOBAL ALLOCATION V.I. FUND
--------------------------------------------------------------------------------------------------------
Unit value $10.39 $10.22
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
--------------------------------------------------------------------------------------------------------
BLACKROCK GLOBAL OPPORTUNITIES V.I. FUND
--------------------------------------------------------------------------------------------------------
Unit value $ 9.98 $10.47
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 11 --
--------------------------------------------------------------------------------------------------------
I-2
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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>
-----------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-----------------------------------------------------------------------------------
CHARTER/SM/ AGGRESSIVE GROWTH
-----------------------------------------------------------------------------------
Unit value $10.27 $10.18
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ ALTERNATIVE 100 MODERATE
-----------------------------------------------------------------------------------
Unit value $ 9.85 $ 9.90
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ CONSERVATIVE
-----------------------------------------------------------------------------------
Unit value $10.19 $10.02
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ GROWTH
-----------------------------------------------------------------------------------
Unit value $10.28 $10.14
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ INCOME STRATEGIES
-----------------------------------------------------------------------------------
Unit value $10.41 $ 9.98
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ INTEREST RATE STRATEGIES
-----------------------------------------------------------------------------------
Unit value $10.22 $ 9.99
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ INTERNATIONAL MODERATE
-----------------------------------------------------------------------------------
Unit value $ 9.85 $ 9.92
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ MODERATE
-----------------------------------------------------------------------------------
Unit value $10.23 $10.08
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM /MODERATE GROWTH
-----------------------------------------------------------------------------------
Unit value $10.29 $10.13
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ REAL ASSETS
-----------------------------------------------------------------------------------
Unit value $ 9.69 $ 9.71
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP GROWTH
-----------------------------------------------------------------------------------
Unit value $10.27 $10.58
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 9 --
-----------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP VALUE
-----------------------------------------------------------------------------------
Unit value $ 9.91 $10.48
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH PORTFOLIO
-----------------------------------------------------------------------------------
Unit value $10.69 --
-----------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------
</R>
I-3
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
-----------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-----------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE EQUITY INCOME PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $10.65 --
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
DELAWARE VIP(R) DIVERSIFIED INCOME SERIES
-----------------------------------------------------------------------------------------
Unit value $10.42 $ 9.96
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
DELAWARE VIP(R) EMERGING MARKETS SERIES
-----------------------------------------------------------------------------------------
Unit value $ 8.98 $ 9.82
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
DELAWARE VIP(R) LIMITED-TERM DIVERSIFIED INCOME SERIES
-----------------------------------------------------------------------------------------
Unit value $10.13 $ 9.99
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EATON VANCE VT FLOATING-RATE INCOME FUND
-----------------------------------------------------------------------------------------
Unit value $10.11 $10.07
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN DYNAMIC WEALTH STRATEGIES
-----------------------------------------------------------------------------------------
Unit value $10.64 $10.19
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN SHORT DURATION GOVERNMENT BOND
-----------------------------------------------------------------------------------------
Unit value $ 9.90 $ 9.98
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN SMALL CAP GROWTH
-----------------------------------------------------------------------------------------
Unit value $10.70 $10.36
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE EQUITY
-----------------------------------------------------------------------------------------
Unit value $11.43 $10.45
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY INCOME
-----------------------------------------------------------------------------------------
Unit value $11.38 $10.50
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
-----------------------------------------------------------------------------------------
Unit value $11.87 $10.48
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/COMMON STOCK INDEX
-----------------------------------------------------------------------------------------
Unit value $11.66 $10.44
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
EQ/CONVERTIBLE SECURITIES
-----------------------------------------------------------------------------------------
Unit value $11.12 $10.26
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------
I-4
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
------------------------------------------------------------------------
EQ/CORE BOND INDEX
------------------------------------------------------------------------
Unit value $10.12 $ 9.91
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY PLUS
------------------------------------------------------------------------
Unit value $ 9.38 $ 9.71
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/ENERGY ETF
------------------------------------------------------------------------
Unit value $ 8.49 $10.05
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
------------------------------------------------------------------------
Unit value $11.78 $10.46
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/GAMCO MERGERS AND ACQUISITIONS
------------------------------------------------------------------------
Unit value $10.25 $10.12
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/GAMCO SMALL COMPANY VALUE
------------------------------------------------------------------------
Unit value $10.82 $10.53
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/HIGH YIELD BOND
------------------------------------------------------------------------
Unit value $10.25 $10.08
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/INTERMEDIATE GOVERNMENT BOND
------------------------------------------------------------------------
Unit value $10.04 $ 9.92
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/INTERNATIONAL EQUITY INDEX
------------------------------------------------------------------------
Unit value $ 9.41 $10.14
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX
------------------------------------------------------------------------
Unit value $11.72 $10.48
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX
------------------------------------------------------------------------
Unit value $11.71 $10.43
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/LOW VOLATILITY GLOBAL ETF
------------------------------------------------------------------------
Unit value $10.77 $ 9.98
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
EQ/MFS INTERNATIONAL GROWTH
------------------------------------------------------------------------
Unit value $ 9.50 $10.03
------------------------------------------------------------------------
Number of units outstanding (000's) -- --
------------------------------------------------------------------------
I-5
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
--------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
--------------------------------------------------------------------------
EQ/MID CAP INDEX
--------------------------------------------------------------------------
Unit value $11.24 $10.34
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/MONEY MARKET
--------------------------------------------------------------------------
Unit value $ 9.96 $ 9.99
--------------------------------------------------------------------------
Number of units outstanding (000's) 7 --
--------------------------------------------------------------------------
EQ/MORGAN STANLEY MID CAP GROWTH
--------------------------------------------------------------------------
Unit value $10.57 $10.68
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/NATURAL RESOURCES PLUS
--------------------------------------------------------------------------
Unit value $ 8.75 $10.06
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL
--------------------------------------------------------------------------
Unit value $10.50 $10.35
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/PIMCO GLOBAL REAL RETURN
--------------------------------------------------------------------------
Unit value $10.42 $ 9.69
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND
--------------------------------------------------------------------------
Unit value $ 9.95 $ 9.99
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/REAL ESTATE PLUS
--------------------------------------------------------------------------
Unit value $11.01 $ 9.47
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX
--------------------------------------------------------------------------
Unit value $10.85 $10.38
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH STOCK
--------------------------------------------------------------------------
Unit value $11.35 $10.48
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
FEDERATED HIGH INCOME BOND FUND II
--------------------------------------------------------------------------
Unit value $10.29 $10.08
--------------------------------------------------------------------------
Number of units outstanding (000's) 4 --
--------------------------------------------------------------------------
FEDERATED KAUFMAN FUND II
--------------------------------------------------------------------------
Unit value $11.54 $10.58
--------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------
FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO
--------------------------------------------------------------------------
Unit value $11.66 $10.48
--------------------------------------------------------------------------
Number of units outstanding (000's) 12 --
--------------------------------------------------------------------------
I-6
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
-----------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-----------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID CAP PORTFOLIO
-----------------------------------------------------------------------------------------------
Unit value $11.13 $10.53
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FIDELITY(R) VIP STRATEGIC INCOME PORTFOLIO
-----------------------------------------------------------------------------------------------
Unit value $10.26 $ 9.96
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME ALLOCATION PORTFOLIO
-----------------------------------------------------------------------------------------------
Unit value $10.21 --
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES DIVIDEND & INCOME ALLOCATION PORTFOLIO
-----------------------------------------------------------------------------------------------
Unit value $11.13 $10.15
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS ALLOCATION VIP FUND
-----------------------------------------------------------------------------------------------
Unit value $10.50 $10.24
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND
-----------------------------------------------------------------------------------------------
Unit value $10.62 $10.18
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FRANKLIN MUTUAL SHARES VIP FUND
-----------------------------------------------------------------------------------------------
Unit value $11.04 $10.33
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
FRANKLIN RISING DIVIDENDS VIP FUND
-----------------------------------------------------------------------------------------------
Unit value $11.19 $10.32
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13 --
-----------------------------------------------------------------------------------------------
GUGGENHEIM VT GLOBAL MANAGED FUTURES STRATEGY FUND
-----------------------------------------------------------------------------------------------
Unit value $11.66 $10.43
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS FUND
-----------------------------------------------------------------------------------------------
Unit value $10.20 --
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
HARTFORD GROWTH OPPORTUNITIES HLS FUND
-----------------------------------------------------------------------------------------------
Unit value $10.86 --
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
INVESCO V.I. BALANCED-RISK ALLOCATION FUND
-----------------------------------------------------------------------------------------------
Unit value $10.36 $ 9.83
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
INVESCO V.I. GLOBAL HEALTH CARE FUND
-----------------------------------------------------------------------------------------------
Unit value $12.65 $10.63
-----------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-----------------------------------------------------------------------------------------------
I-7
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
--------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
--------------------------------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND
--------------------------------------------------------------------------------------
Unit value $10.88 $ 9.54
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
INVESCO V.I. HIGH YIELD FUND
--------------------------------------------------------------------------------------
Unit value $10.25 $10.12
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 --
--------------------------------------------------------------------------------------
INVESCO V.I. INTERNATIONAL GROWTH FUND
--------------------------------------------------------------------------------------
Unit value $10.17 $10.19
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 --
--------------------------------------------------------------------------------------
INVESCO V.I. SMALL CAP EQUITY FUND
--------------------------------------------------------------------------------------
Unit value $10.72 $10.53
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
IVY FUNDS VIP ASSET STRATEGY
--------------------------------------------------------------------------------------
Unit value $ 9.95 $10.54
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 1 --
--------------------------------------------------------------------------------------
IVY FUNDS VIP ENERGY
--------------------------------------------------------------------------------------
Unit value $ 8.66 $ 9.71
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
IVY FUNDS VIP MICRO CAP GROWTH
--------------------------------------------------------------------------------------
Unit value $10.61 $10.83
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 --
--------------------------------------------------------------------------------------
IVY FUNDS VIP SCIENCE AND TECHNOLOGY
--------------------------------------------------------------------------------------
Unit value $11.24 $10.96
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
JANUS ASPEN BALANCED PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $11.10 $10.29
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
JANUS ASPEN FLEXIBLE BOND PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $10.40 $ 9.96
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
JANUS ASPEN INTECH U.S. LOW VOLATILITY PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $11.93 $10.17
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
LAZARD RETIREMENT EMERGING MARKETS EQUITY PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $ 9.11 $ 9.59
--------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND -- BOND DEBENTURE PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $10.51 $10.11
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 6 --
--------------------------------------------------------------------------------------
I-8
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
-------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-------------------------------------------------------------------------------------------
MFS(R) INTERNATIONAL VALUE PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $10.28 $10.20
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
MFS(R) INVESTORS TRUST SERIES
-------------------------------------------------------------------------------------------
Unit value $11.58 $10.49
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
MFS(R) RESEARCH SERIES
-------------------------------------------------------------------------------------------
Unit value $11.52 $10.51
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
MFS(R) UTILITIES SERIES
-------------------------------------------------------------------------------------------
Unit value $11.15 $ 9.94
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
MFS(R) VALUE SERIES
-------------------------------------------------------------------------------------------
Unit value $11.55 $10.51
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
MULTIMANAGER TECHNOLOGY
-------------------------------------------------------------------------------------------
Unit value $12.09 $10.68
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
NEUBERGER BERMAN ABSOLUTE RETURN MULTI-MANAGER PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $ 9.89 --
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
NEUBERGER BERMAN INTERNATIONAL EQUITY PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $ 9.40 --
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $ 7.90 $ 9.75
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
PIMCO EMERGING MARKETS BOND PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $ 9.91 $ 9.80
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
PIMCO GLOBAL BOND PORTFOLIO (UNHEDGED)
-------------------------------------------------------------------------------------------
Unit value $ 9.80 $ 9.63
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
PIMCO GLOBAL MULTI-ASSET MANAGED ALLOCATION PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $10.29 $ 9.86
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
PIMCO TOTAL RETURN PORTFOLIO
-------------------------------------------------------------------------------------------
Unit value $10.28 $ 9.90
-------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
-------------------------------------------------------------------------------------------
I-9
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
---------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
---------------------------------------------------------------------------------------
PUTNAM VT ABSOLUTE RETURN 500 FUND
---------------------------------------------------------------------------------------
Unit value $10.45 $10.09
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
---------------------------------------------------------------------------------------
Unit value $ 9.67 --
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
QS LEGG MASON DYNAMIC MULTI-STRATEGY VIT PORTFOLIO
---------------------------------------------------------------------------------------
Unit value $10.11 --
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
SEI VP BALANCED STRATEGY FUND
---------------------------------------------------------------------------------------
Unit value $10.40 $10.03
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
SEI VP CONSERVATIVE STRATEGY FUND
---------------------------------------------------------------------------------------
Unit value $10.28 $10.01
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
SEI VP MARKET GROWTH STRATEGY FUND
---------------------------------------------------------------------------------------
Unit value $10.44 $10.08
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
SEI VP MARKET PLUS STRATEGY FUND
---------------------------------------------------------------------------------------
Unit value $10.59 $10.19
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
SEI VP MODERATE STRATEGY FUND
---------------------------------------------------------------------------------------
Unit value $10.49 $10.01
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME PORTFOLIO-II
---------------------------------------------------------------------------------------
Unit value $11.01 $10.31
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
T. ROWE PRICE HEALTH SCIENCES PORTFOLIO-II
---------------------------------------------------------------------------------------
Unit value $13.78 $10.53
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
TEMPLETON GLOBAL BOND VIP FUND
---------------------------------------------------------------------------------------
Unit value $10.19 $10.03
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
VAN ECK VIP GLOBAL HARD ASSETS FUND
---------------------------------------------------------------------------------------
Unit value $ 7.86 $ 9.77
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
VAN ECK VIP UNCONSTRAINED EMERGING MARKETS BOND FUND
---------------------------------------------------------------------------------------
Unit value $ 9.95 $ 9.76
---------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
---------------------------------------------------------------------------------------
I-10
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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
1.25%.
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.
--------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
--------------------------------------------------------------------------------------------------------
7TWELVE/TM/ BALANCED PORTFOLIO
--------------------------------------------------------------------------------------------------------
Unit value $ 9.80 $ 9.95
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 751 68
--------------------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE-ALT 25
--------------------------------------------------------------------------------------------------------
Unit value $10.17 $10.07
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 30 3
--------------------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE-ALT 50
--------------------------------------------------------------------------------------------------------
Unit value $ 9.96 $ 9.93
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 19 --
--------------------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE-ALT 75
--------------------------------------------------------------------------------------------------------
Unit value $ 9.72 $ 9.81
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 14 2
--------------------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VPS GLOBAL THEMATIC GROWTH PORTFOLIO
--------------------------------------------------------------------------------------------------------
Unit value $ 9.70 --
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VPS GROWTH AND INCOME PORTFOLIO
--------------------------------------------------------------------------------------------------------
Unit value $10.24 --
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) -- --
--------------------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VPS REAL ESTATE INVESTMENT PORTFOLIO
--------------------------------------------------------------------------------------------------------
Unit value $10.74 --
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 --
--------------------------------------------------------------------------------------------------------
ALLIANCEBERNSTEIN VPS SMALL/MID CAP VALUE PORTFOLIO
--------------------------------------------------------------------------------------------------------
Unit value $10.06 --
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 13 --
--------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP INFLATION PROTECTION FUND
--------------------------------------------------------------------------------------------------------
Unit value $ 9.91 $ 9.72
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 137 8
--------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP MID CAP VALUE FUND
--------------------------------------------------------------------------------------------------------
Unit value $11.76 $10.24
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 188 2
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) ASSET ALLOCATION FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $10.67 $10.27
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 318 17
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL GROWTH FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $10.57 $10.49
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 77 4
--------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL CAPITALIZATION FUND/SM/
--------------------------------------------------------------------------------------------------------
Unit value $10.37 $10.30
--------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 57 1
--------------------------------------------------------------------------------------------------------
I-11
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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>
------------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GROWTH-INCOME FUND/SM/
------------------------------------------------------------------------------------------------------------
Unit value $11.42 $10.48
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 91 6
------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) INTERNATIONAL GROWTH AND INCOME FUND/SM/
------------------------------------------------------------------------------------------------------------
Unit value $ 9.68 $10.15
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 94 --
------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)
------------------------------------------------------------------------------------------------------------
Unit value $ 9.17 $10.11
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 196 7
------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE ALLOCATION
------------------------------------------------------------------------------------------------------------
Unit value $10.65 $10.30
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 37 2
------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION
------------------------------------------------------------------------------------------------------------
Unit value $10.30 $10.12
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 540 22
------------------------------------------------------------------------------------------------------------
AXA MODERATE-PLUS ALLOCATION
------------------------------------------------------------------------------------------------------------
Unit value $10.46 $10.21
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 440 47
------------------------------------------------------------------------------------------------------------
AXA SMART BETA/TM/ EQUITY
------------------------------------------------------------------------------------------------------------
Unit value $10.85 $10.25
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 12 --
------------------------------------------------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH
------------------------------------------------------------------------------------------------------------
Unit value $11.16 $10.48
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 36 --
------------------------------------------------------------------------------------------------------------
AXA/TEMPLETON GLOBAL EQUITY MANAGED VOLATILITY
------------------------------------------------------------------------------------------------------------
Unit value $10.26 $10.27
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 63 --
------------------------------------------------------------------------------------------------------------
BLACKROCK GLOBAL ALLOCATION V.I. FUND
------------------------------------------------------------------------------------------------------------
Unit value $10.27 $10.21
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 527 77
------------------------------------------------------------------------------------------------------------
BLACKROCK GLOBAL OPPORTUNITIES V.I. FUND
------------------------------------------------------------------------------------------------------------
Unit value $ 9.86 $10.45
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 86 --
------------------------------------------------------------------------------------------------------------
CHARTER/SM/ AGGRESSIVE GROWTH
------------------------------------------------------------------------------------------------------------
Unit value $10.15 $10.16
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 91 2
------------------------------------------------------------------------------------------------------------
CHARTER/SM/ ALTERNATIVE 100 MODERATE
------------------------------------------------------------------------------------------------------------
Unit value $ 9.74 $ 9.88
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 248 29
------------------------------------------------------------------------------------------------------------
CHARTER/SM/ CONSERVATIVE
------------------------------------------------------------------------------------------------------------
Unit value $10.07 $10.00
------------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 601 69
------------------------------------------------------------------------------------------------------------
</R>
I-12
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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>
---------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
---------------------------------------------------------------------------------------
CHARTER/SM/ GROWTH
---------------------------------------------------------------------------------------
Unit value $10.16 $10.12
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 432 141
---------------------------------------------------------------------------------------
CHARTER/SM/ INCOME STRATEGIES
---------------------------------------------------------------------------------------
Unit value $10.29 $ 9.97
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 132 --
---------------------------------------------------------------------------------------
CHARTER/SM/ INTEREST RATE STRATEGIES
---------------------------------------------------------------------------------------
Unit value $10.10 $ 9.98
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 328 --
---------------------------------------------------------------------------------------
CHARTER/SM/ INTERNATIONAL MODERATE
---------------------------------------------------------------------------------------
Unit value $ 9.74 $ 9.90
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 34 --
---------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE
---------------------------------------------------------------------------------------
Unit value $10.11 $10.06
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 903 34
---------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE GROWTH
---------------------------------------------------------------------------------------
Unit value $10.17 $10.11
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 421 10
---------------------------------------------------------------------------------------
CHARTER/SM/ REAL ASSETS
---------------------------------------------------------------------------------------
Unit value $ 9.58 $ 9.69
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 17 --
---------------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP GROWTH
---------------------------------------------------------------------------------------
Unit value $10.16 $10.56
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 21 --
---------------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP VALUE
---------------------------------------------------------------------------------------
Unit value $ 9.80 $10.46
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 124 2
---------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH PORTFOLIO
---------------------------------------------------------------------------------------
Unit value $10.63 --
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 85 --
---------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE EQUITY INCOME PORTFOLIO
---------------------------------------------------------------------------------------
Unit value $10.59 --
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 47 --
---------------------------------------------------------------------------------------
DELAWARE VIP(R) DIVERSIFIED INCOME SERIES
---------------------------------------------------------------------------------------
Unit value $10.31 $ 9.94
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 296 14
---------------------------------------------------------------------------------------
DELAWARE VIP(R) EMERGING MARKETS SERIES
---------------------------------------------------------------------------------------
Unit value $ 8.88 $ 9.80
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 28 2
---------------------------------------------------------------------------------------
DELAWARE VIP(R) LIMITED-TERM DIVERSIFIED INCOME SERIES
---------------------------------------------------------------------------------------
Unit value $10.01 $ 9.98
---------------------------------------------------------------------------------------
Number of units outstanding (000's) 385 --
---------------------------------------------------------------------------------------
</R>
I-13
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
------------------------------------------------------------------------------------
EATON VANCE VT FLOATING-RATE INCOME FUND
------------------------------------------------------------------------------------
Unit value $ 9.99 $10.05
------------------------------------------------------------------------------------
Number of units outstanding (000's) 382 14
------------------------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN DYNAMIC WEALTH STRATEGIES
------------------------------------------------------------------------------------
Unit value $10.52 $10.17
------------------------------------------------------------------------------------
Number of units outstanding (000's) 155 21
------------------------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN SHORT DURATION GOVERNMENT BOND
------------------------------------------------------------------------------------
Unit value $ 9.79 $ 9.97
------------------------------------------------------------------------------------
Number of units outstanding (000's) 46 18
------------------------------------------------------------------------------------
EQ/ALLIANCEBERNSTEIN SMALL CAP GROWTH
------------------------------------------------------------------------------------
Unit value $10.58 $10.34
------------------------------------------------------------------------------------
Number of units outstanding (000's) 119 2
------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE EQUITY
------------------------------------------------------------------------------------
Unit value $11.30 $10.43
------------------------------------------------------------------------------------
Number of units outstanding (000's) 343 37
------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY INCOME
------------------------------------------------------------------------------------
Unit value $11.25 $10.48
------------------------------------------------------------------------------------
Number of units outstanding (000's) 60 2
------------------------------------------------------------------------------------
EQ/CALVERT SOCIALLY RESPONSIBLE
------------------------------------------------------------------------------------
Unit value $11.74 $10.46
------------------------------------------------------------------------------------
Number of units outstanding (000's) 20 --
------------------------------------------------------------------------------------
EQ/COMMON STOCK INDEX
------------------------------------------------------------------------------------
Unit value $11.53 $10.42
------------------------------------------------------------------------------------
Number of units outstanding (000's) 69 3
------------------------------------------------------------------------------------
EQ/CONVERTIBLE SECURITIES
------------------------------------------------------------------------------------
Unit value $10.99 $10.25
------------------------------------------------------------------------------------
Number of units outstanding (000's) 201 --
------------------------------------------------------------------------------------
EQ/CORE BOND INDEX
------------------------------------------------------------------------------------
Unit value $10.01 $ 9.90
------------------------------------------------------------------------------------
Number of units outstanding (000's) 126 3
------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY PLUS
------------------------------------------------------------------------------------
Unit value $ 9.27 $ 9.70
------------------------------------------------------------------------------------
Number of units outstanding (000's) 42 --
------------------------------------------------------------------------------------
EQ/ENERGY ETF
------------------------------------------------------------------------------------
Unit value $ 8.40 $10.03
------------------------------------------------------------------------------------
Number of units outstanding (000's) 41 --
------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
------------------------------------------------------------------------------------
Unit value $11.65 $10.44
------------------------------------------------------------------------------------
Number of units outstanding (000's) 654 13
------------------------------------------------------------------------------------
EQ/GAMCO MERGERS AND ACQUISITIONS
------------------------------------------------------------------------------------
Unit value $10.14 $10.10
------------------------------------------------------------------------------------
Number of units outstanding (000's) 92 4
------------------------------------------------------------------------------------
I-14
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
------------------------------------------------------------------------
EQ/GAMCO SMALL COMPANY VALUE
------------------------------------------------------------------------
Unit value $10.70 $10.51
------------------------------------------------------------------------
Number of units outstanding (000's) 518 43
------------------------------------------------------------------------
EQ/HIGH YIELD BOND
------------------------------------------------------------------------
Unit value $10.13 $10.07
------------------------------------------------------------------------
Number of units outstanding (000's) 42 --
------------------------------------------------------------------------
EQ/INTERMEDIATE GOVERNMENT BOND
------------------------------------------------------------------------
Unit value $ 9.93 $ 9.90
------------------------------------------------------------------------
Number of units outstanding (000's) 14 --
------------------------------------------------------------------------
EQ/INTERNATIONAL EQUITY INDEX
------------------------------------------------------------------------
Unit value $ 9.30 $10.12
------------------------------------------------------------------------
Number of units outstanding (000's) 343 3
------------------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX
------------------------------------------------------------------------
Unit value $11.59 $10.46
------------------------------------------------------------------------
Number of units outstanding (000's) 208 14
------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX
------------------------------------------------------------------------
Unit value $11.58 $10.41
------------------------------------------------------------------------
Number of units outstanding (000's) 73 2
------------------------------------------------------------------------
EQ/LOW VOLATILITY GLOBAL ETF
------------------------------------------------------------------------
Unit value $10.65 $ 9.97
------------------------------------------------------------------------
Number of units outstanding (000's) 37 4
------------------------------------------------------------------------
EQ/MFS INTERNATIONAL GROWTH
------------------------------------------------------------------------
Unit value $ 9.39 $10.01
------------------------------------------------------------------------
Number of units outstanding (000's) 82 --
------------------------------------------------------------------------
EQ/MID CAP INDEX
------------------------------------------------------------------------
Unit value $11.11 $10.32
------------------------------------------------------------------------
Number of units outstanding (000's) 386 9
------------------------------------------------------------------------
EQ/MONEY MARKET
------------------------------------------------------------------------
Unit value $ 9.85 $ 9.98
------------------------------------------------------------------------
Number of units outstanding (000's) 2,570 1,199
------------------------------------------------------------------------
EQ/MORGAN STANLEY MID CAP GROWTH
------------------------------------------------------------------------
Unit value $10.45 $10.66
------------------------------------------------------------------------
Number of units outstanding (000's) 93 23
------------------------------------------------------------------------
EQ/NATURAL RESOURCES PLUS
------------------------------------------------------------------------
Unit value $ 8.65 $10.04
------------------------------------------------------------------------
Number of units outstanding (000's) 28 --
------------------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL
------------------------------------------------------------------------
Unit value $10.38 $10.33
------------------------------------------------------------------------
Number of units outstanding (000's) 91 7
------------------------------------------------------------------------
EQ/PIMCO GLOBAL REAL RETURN
------------------------------------------------------------------------
Unit value $10.31 $ 9.68
------------------------------------------------------------------------
Number of units outstanding (000's) 60 --
------------------------------------------------------------------------
I-15
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
---------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
---------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND
---------------------------------------------------------------------------------------------
Unit value $ 9.84 $ 9.97
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 108 --
---------------------------------------------------------------------------------------------
EQ/REAL ESTATE PLUS
---------------------------------------------------------------------------------------------
Unit value $10.89 $ 9.46
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 79 --
---------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX
---------------------------------------------------------------------------------------------
Unit value $10.73 $10.36
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 169 3
---------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH STOCK
---------------------------------------------------------------------------------------------
Unit value $11.23 $10.47
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 291 31
---------------------------------------------------------------------------------------------
FEDERATED HIGH INCOME BOND FUND II
---------------------------------------------------------------------------------------------
Unit value $10.18 $10.06
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 352 4
---------------------------------------------------------------------------------------------
FEDERATED KAUFMAN FUND II
---------------------------------------------------------------------------------------------
Unit value $11.42 $10.56
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 28 --
---------------------------------------------------------------------------------------------
FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $11.53 $10.46
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 314 6
---------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID CAP PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $11.01 $10.51
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 159 2
---------------------------------------------------------------------------------------------
FIDELITY(R) VIP STRATEGIC INCOME PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $10.15 $ 9.94
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 655 7
---------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME ALLOCATION PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $10.16 --
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 --
---------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES DIVIDEND & INCOME ALLOCATION PORTFOLIO
---------------------------------------------------------------------------------------------
Unit value $11.01 $10.13
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 100 6
---------------------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS ALLOCATION VIP FUND
---------------------------------------------------------------------------------------------
Unit value $10.39 $10.23
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 222 4
---------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND
---------------------------------------------------------------------------------------------
Unit value $10.50 $10.16
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,000 40
---------------------------------------------------------------------------------------------
FRANKLIN MUTUAL SHARES VIP FUND
---------------------------------------------------------------------------------------------
Unit value $10.91 $10.32
---------------------------------------------------------------------------------------------
Number of units outstanding (000's) 19 --
---------------------------------------------------------------------------------------------
I-16
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
-----------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-----------------------------------------------------------------------------------
FRANKLIN RISING DIVIDENDS VIP FUND
-----------------------------------------------------------------------------------
Unit value $11.07 $10.31
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 441 22
-----------------------------------------------------------------------------------
GUGGENHEIM VT GLOBAL MANAGED FUTURES STRATEGY FUND
-----------------------------------------------------------------------------------
Unit value $11.53 $10.41
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 24 --
-----------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS FUND
-----------------------------------------------------------------------------------
Unit value $10.14 --
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 6 --
-----------------------------------------------------------------------------------
HARTFORD GROWTH OPPORTUNITIES HLS FUND
-----------------------------------------------------------------------------------
Unit value $10.80 --
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 13 --
-----------------------------------------------------------------------------------
INVESCO V.I. BALANCED-RISK ALLOCATION FUND
-----------------------------------------------------------------------------------
Unit value $10.25 $ 9.82
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 198 44
-----------------------------------------------------------------------------------
INVESCO V.I. GLOBAL HEALTH CARE FUND
-----------------------------------------------------------------------------------
Unit value $12.51 $10.61
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 43 --
-----------------------------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND
-----------------------------------------------------------------------------------
Unit value $10.75 $ 9.52
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 192 9
-----------------------------------------------------------------------------------
INVESCO V.I. HIGH YIELD FUND
-----------------------------------------------------------------------------------
Unit value $10.13 $10.10
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 480 13
-----------------------------------------------------------------------------------
INVESCO V.I. INTERNATIONAL GROWTH FUND
-----------------------------------------------------------------------------------
Unit value $10.05 $10.17
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 100 4
-----------------------------------------------------------------------------------
INVESCO V.I. SMALL CAP EQUITY FUND
-----------------------------------------------------------------------------------
Unit value $10.60 $10.51
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 41 2
-----------------------------------------------------------------------------------
IVY FUNDS VIP ASSET STRATEGY
-----------------------------------------------------------------------------------
Unit value $ 9.84 $10.52
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 498 11
-----------------------------------------------------------------------------------
IVY FUNDS VIP ENERGY
-----------------------------------------------------------------------------------
Unit value $ 8.56 $ 9.69
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 416 21
-----------------------------------------------------------------------------------
IVY FUNDS VIP MICRO CAP GROWTH
-----------------------------------------------------------------------------------
Unit value $10.49 $10.82
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 70 2
-----------------------------------------------------------------------------------
IVY FUNDS VIP SCIENCE AND TECHNOLOGY
-----------------------------------------------------------------------------------
Unit value $11.12 $10.94
-----------------------------------------------------------------------------------
Number of units outstanding (000's) 152 6
-----------------------------------------------------------------------------------
I-17
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
-----------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-----------------------------------------------------------------------------------------
JANUS ASPEN BALANCED PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $10.98 $10.27
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 164 5
-----------------------------------------------------------------------------------------
JANUS ASPEN FLEXIBLE BOND PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $10.28 $ 9.94
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 130 2
-----------------------------------------------------------------------------------------
JANUS ASPEN INTECH U.S. LOW VOLATILITY PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $11.80 $10.15
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 80 1
-----------------------------------------------------------------------------------------
LAZARD RETIREMENT EMERGING MARKETS EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $ 9.01 $ 9.57
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 121 5
-----------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND -- BOND DEBENTURE PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $10.40 $10.09
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 411 24
-----------------------------------------------------------------------------------------
MFS(R) INTERNATIONAL VALUE PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $10.17 $10.18
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 374 17
-----------------------------------------------------------------------------------------
MFS(R) INVESTORS TRUST SERIES
-----------------------------------------------------------------------------------------
Unit value $11.45 $10.48
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 27 --
-----------------------------------------------------------------------------------------
MFS(R) RESEARCH SERIES
-----------------------------------------------------------------------------------------
Unit value $11.39 $10.49
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 46 2
-----------------------------------------------------------------------------------------
MFS(R) UTILITIES SERIES
-----------------------------------------------------------------------------------------
Unit value $11.03 $ 9.93
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 356 10
-----------------------------------------------------------------------------------------
MFS(R) VALUE SERIES
-----------------------------------------------------------------------------------------
Unit value $11.42 $10.50
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 145 7
-----------------------------------------------------------------------------------------
MULTIMANAGER TECHNOLOGY
-----------------------------------------------------------------------------------------
Unit value $11.96 $10.67
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 59 3
-----------------------------------------------------------------------------------------
NEUBERGER BERMAN ABSOLUTE RETURN MULTI-MANAGER PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $ 9.84 --
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 28 --
-----------------------------------------------------------------------------------------
NEUBERGER BERMAN INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $ 9.34 --
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 2 --
-----------------------------------------------------------------------------------------
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $ 7.81 $ 9.74
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 61 1
-----------------------------------------------------------------------------------------
I-18
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
--------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
--------------------------------------------------------------------------------------
PIMCO EMERGING MARKETS BOND PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $ 9.79 $ 9.78
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 40 1
--------------------------------------------------------------------------------------
PIMCO GLOBAL BOND PORTFOLIO (UNHEDGED)
--------------------------------------------------------------------------------------
Unit value $ 9.70 $ 9.61
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 31 --
--------------------------------------------------------------------------------------
PIMCO GLOBAL MULTI-ASSET MANAGED ALLOCATION PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $10.18 $ 9.84
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 4 --
--------------------------------------------------------------------------------------
PIMCO TOTAL RETURN PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $10.16 $ 9.88
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 299 19
--------------------------------------------------------------------------------------
PUTNAM VT ABSOLUTE RETURN 500 FUND
--------------------------------------------------------------------------------------
Unit value $10.33 $10.08
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 36 --
--------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
--------------------------------------------------------------------------------------
Unit value $ 9.61 --
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 61 --
--------------------------------------------------------------------------------------
QS LEGG MASON DYNAMIC MULTI-STRATEGY VIT PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $10.05 --
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 5 --
--------------------------------------------------------------------------------------
SEI VP BALANCED STRATEGY FUND
--------------------------------------------------------------------------------------
Unit value $10.28 $10.02
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 151 2
--------------------------------------------------------------------------------------
SEI VP CONSERVATIVE STRATEGY FUND
--------------------------------------------------------------------------------------
Unit value $10.17 $10.00
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 408 32
--------------------------------------------------------------------------------------
SEI VP MARKET GROWTH STRATEGY FUND
--------------------------------------------------------------------------------------
Unit value $10.32 $10.07
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 207 1
--------------------------------------------------------------------------------------
SEI VP MARKET PLUS STRATEGY FUND
--------------------------------------------------------------------------------------
Unit value $10.47 $10.17
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 65 30
--------------------------------------------------------------------------------------
SEI VP MODERATE STRATEGY FUND
--------------------------------------------------------------------------------------
Unit value $10.37 $10.00
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 320 33
--------------------------------------------------------------------------------------
T. ROWE PRICE EQUITY INCOME PORTFOLIO-II
--------------------------------------------------------------------------------------
Unit value $10.88 $10.29
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 119 7
--------------------------------------------------------------------------------------
T. ROWE PRICE HEALTH SCIENCES PORTFOLIO-II
--------------------------------------------------------------------------------------
Unit value $13.62 $10.51
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 189 5
--------------------------------------------------------------------------------------
I-19
APPENDIX I: CONDENSED FINANCIAL INFORMATION
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)
-------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31
-------------------------------
2014 2013
-------------------------------------------------------------------------------------
TEMPLETON GLOBAL BOND VIP FUND
-------------------------------------------------------------------------------------
Unit value $10.07 $10.02
-------------------------------------------------------------------------------------
Number of units outstanding (000's) 574 23
-------------------------------------------------------------------------------------
VAN ECK VIP GLOBAL HARD ASSETS FUND
-------------------------------------------------------------------------------------
Unit value $ 7.77 $ 9.75
-------------------------------------------------------------------------------------
Number of units outstanding (000's) 43 1
-------------------------------------------------------------------------------------
VAN ECK VIP UNCONSTRAINED EMERGING MARKETS BOND FUND
-------------------------------------------------------------------------------------
Unit value $ 9.84 $ 9.74
-------------------------------------------------------------------------------------
Number of units outstanding (000's) 12 --
-------------------------------------------------------------------------------------
I-20
APPENDIX I: CONDENSED FINANCIAL INFORMATION
Appendix II: Rules regarding contributions to your contract
--------------------------------------------------------------------------------
THE FOLLOWING TABLES DESCRIBE THE RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT. THE MINIMUM
INITIAL CONTRIBUTION AMOUNT IS $10,000 FOR ALL INVESTMENT EDGE(R) CONTRACT TYPES AND $25,000 FOR ALL
INVESTMENT EDGE(R) SELECT AND INVESTMENT EDGE(R) ADV CONTRACT TYPES.
------------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE NQ
------------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 0-85
------------------------------------------------------------------------------------------------------------------------------
MINIMUM ADDITIONAL . $500
CONTRIBUTION AMOUNT
------------------------------------------------------------------------------------------------------------------------------
SOURCE OF . After-tax money.
CONTRIBUTIONS . Paid to us by check or transfer of contract value in a tax-deferred exchange under Section 1035 of
the Internal Revenue Code.
------------------------------------------------------------------------------------------------------------------------------
LIMITATIONS ON . No additional contributions after the date on which the older of the original Owner(s) and
CONTRIBUTIONS Annuitant(s) reaches age 86 or, if later, the first contract date anniversary.
. No additional contributions after election of an Income Edge payment program.
------------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE TRADITIONAL IRA
------------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 20-85
------------------------------------------------------------------------------------------------------------------------------
MINIMUM ADDITIONAL . $50
CONTRIBUTION AMOUNT
------------------------------------------------------------------------------------------------------------------------------
SOURCE OF . Eligible rollover distributions from 403(b) plans, qualified plans, and governmental employer 457(b)
CONTRIBUTIONS plans.
. Rollovers from another traditional individual retirement arrangement.
. Direct custodian-to-custodian transfers from another traditional individual retirement arrangement.
. Regular IRA contributions.
. Additional catch-up contributions.
------------------------------------------------------------------------------------------------------------------------------
LIMITATIONS ON . No additional contributions after the date on which the Owner reaches age 86 or, if later, the first
CONTRIBUTIONS contract date anniversary.
. Contributions made after age 70 1/2 must be net of required minimum distributions.
. Although we accept regular IRA contributions (limited to $5,500) under traditional IRA contracts, we
intend that the contract be used primarily for rollover and direct transfer contributions.
. Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age
50 but under age 70 1/2 at any time during the calendar year for which the contribution is made.
------------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE ROTH IRA
------------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 20-85
------------------------------------------------------------------------------------------------------------------------------
MINIMUM ADDITIONAL . $50
CONTRIBUTION AMOUNT
------------------------------------------------------------------------------------------------------------------------------
SOURCE OF . Rollovers from another Roth IRA.
CONTRIBUTIONS . 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.
. Regular Roth IRA contributions.
. Additional catch-up contributions.
------------------------------------------------------------------------------------------------------------------------------
LIMITATIONS ON . No additional contributions after the date on which the Owner reaches age 86 or, if later, the first
CONTRIBUTIONS contract date anniversary.
. Conversion rollovers after age 70 1/2 must be net of required minimum distributions for the
traditional IRA or other eligible retirement plan that is the source of the conversion rollover.
. Although we accept Roth IRA contributions (limited to $5,500) under Roth IRA contracts, we intend
that the contract be used primarily for rollover and direct transfer contributions.
. Additional catch-up contributions of up to $1,000 per calendar year where the owner is at least age
50 at any time during the calendar year for which the contribution is made.
------------------------------------------------------------------------------------------------------------------------------
II-1
APPENDIX II: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
-------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE SEP IRA
-------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 20-85
-------------------------------------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT FOR ALL SERIES:
CONTRIBUTION AMOUNT . $50
(IF PERMITTED)
-------------------------------------------------------------------------------------------------------------------------
SOURCE OF . An employer can annually contribute an amount for an employee up to the lesser of 25% of
CONTRIBUTIONS eligible compensation or $40,000 ($53,000 after cost-of-living adjustment for 2015).
. Eligible rollover distributions from 403(b) plans, qualified plans and governmental employer
457(b) plans.
. Rollovers from another traditional individual retirement arrangement.
. Direct custodian-to-custodian transfers from another traditional individual retirement
arrangement.
. Regular traditional IRA contributions are not permitted unless and until the SEP-IRA
designation is removed on our records and the contract is designated as a traditional IRA only.
-------------------------------------------------------------------------------------------------------------------------
LIMITATIONS ON . No additional contributions after the date on which the Owner reaches age 86 or, if later, the
CONTRIBUTIONS first contract date anniversary.
. Contributions made after age 70 1/2 must be net of required minimum distributions.
-------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE QP
-------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 20-85
-------------------------------------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT . $500
CONTRIBUTION AMOUNT
(IF SUBSEQUENT
CONTRIBUTIONS ARE
PERMITTED)
-------------------------------------------------------------------------------------------------------------------------
SOURCE OF . Only transfer contributions from other investments within an existing qualified plan trust.
CONTRIBUTIONS . 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.
-------------------------------------------------------------------------------------------------------------------------
LIMITATIONS ON . No additional contributions after the date on which the Annuitant reaches age 75 or, if later,
CONTRIBUTIONS the first contract date anniversary.
. A separate QP contract must be established for each plan participant, even defined benefit plan
participants.
. 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.
. No minimum contribution amount limitation for Investment Edge(R) ADV.
. See Appendix IV later in this Prospectus for a discussion on purchase considerations for QP
contracts.
-------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE INHERITED IRA BENEFICIARY CONTINUATION CONTRACT (TRADITIONAL IRA OR ROTH IRA)
-------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 0-70
-------------------------------------------------------------------------------------------------------------------------
MINIMUM ADDITIONAL . $1,000
CONTRIBUTION AMOUNT
-------------------------------------------------------------------------------------------------------------------------
SOURCE OF . Direct custodian-to-custodian transfers of your interest as a death beneficiary of the deceased
CONTRIBUTIONS owner's traditional individual retirement arrangement or Roth IRA to an IRA of the same type.
. Non-spousal beneficiary direct rollover contributions may be made to an Inherited IRA contract
under specified circumstances from these "Applicable Plans": qualified plans, 403(b) plans and
governmental employer 457(b) plans.
-------------------------------------------------------------------------------------------------------------------------
LIMITATIONS ON . No additional contributions after the date on which the Owner reaches age 86 or, if later, the
CONTRIBUTIONS first contract date anniversary.
. Any additional contributions must be from the same type of IRA of the same deceased owner.
. No additional contributions are permitted to Inherited IRA contracts issued as a non-spousal
beneficiary direct rollover from an Applicable Plan.
-------------------------------------------------------------------------------------------------------------------------
II-2
APPENDIX II: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
------------------------------------------------------------------------------------------------------------------------------
CONTRACT TYPE INHERITED NQ
------------------------------------------------------------------------------------------------------------------------------
ISSUE AGES . 0-70
------------------------------------------------------------------------------------------------------------------------------
MINIMUM CONTRIBUTION . Account value must be at least $50,000 in order to elect Income Edge Beneficiary Advantage.
AMOUNT
------------------------------------------------------------------------------------------------------------------------------
SOURCES OF CONTRIBUTIONS . Paid to us in an exchange under Section 1035 of the Internal Revenue Code of your interests as
a death beneficiary of the deceased owner's non-qualified deferred annuity contract.
. All contributions must be received before payments start and within twelve months after the
date of death of the deceased owner.
------------------------------------------------------------------------------------------------------------------------------
See "Contract features and benefits" and "Tax information" earlier in this
Prospectus for a more detailed discussion of sources of contributions and
certain contribution limitations. For information on when contributions are
credited under your contract see "Dates and prices at which contract events
occur" in "More information" earlier in this Prospectus. Please review your
contract for information on contribution limitations.
II-3
APPENDIX II: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
Appendix III: State contract availability and/or variations of certain features
and benefits
--------------------------------------------------------------------------------
The following information is a summary of the states where the Investment
Edge(R) series 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.
STATES WHERE CERTAIN INVESTMENT EDGE(R) SERIES CONTRACTS' FEATURES AND/OR
BENEFITS ARE NOT AVAILABLE OR VARY:
<R>
------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
------------------------------------------------------------------------------
CALIFORNIA See "We require that the You are not required to use our
following types of forms when making a transaction
communications be on specific request, including a withdrawal
forms we provide for that request. If a written request
purpose (and submitted in the contains all the information
manner that the forms specify)" required to process the request,
in "Who is AXA Equitable" and we will honor it.
"Withdrawing your account
value" in "Accessing your money"
See "Your right to cancel If you reside in California and
within a certain number of you are age 60 or older at the
days" in "Contract features and time the contract is issued, you
benefits" may return your variable annuity
contract within 30 days from the
date that you receive it and
receive a refund as described
below.
If you allocate your entire
initial contribution to the
EQ/Money Market option, 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
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 variable
investment options other than
the EQ/Money Market option, your
refund will be equal to your
account value on the date we
receive your request to cancel
at our processing office.
"RETURN OF CONTRIBUTION" FREE
LOOK TREATMENT AVAILABLE THROUGH
CERTAIN SELLING BROKERS-DEALERS
Certain selling broker-dealers
offer an allocation method
designed to preserve your right
to a return of your
contributions during the free
look period. At the time of
application, you will instruct
your financial professional as
to how your initial contribution
and any subsequent contributions
should be treated for the
purpose of maintaining your free
look right under the contract.
Please consult your financial
professional to learn more about
the availability of "return of
contribution" free look
treatment.
If you choose "return of
contribution" free look
treatment of your contract, we
will allocate your entire
contribution and any subsequent
contributions made during the 40
day period following the
Contract Date, to the EQ/Money
Market investment option. In the
event you choose to exercise
your free look right under the
contract, you will receive a
refund equal to your
contributions.
If you choose the "return of
contribution" free look
treatment and your contract is
still in effect on the 40th day
(or next business day) following
the Contract Date, we will
automatically reallocate your
account value to the investment
options chosen on your
application.
------------------------------------------------------------------------------
</R>
III-1
APPENDIX III: STATE CONTRACT AVAILABILITY AND/OR
VARIATIONS OF CERTAIN FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
-------------------------------------------------------------------------------
CALIFORNIA Any transfers made prior to the
(CONTINUED) expiration of the 30 day free
look will terminate your right
to "return of contribution"
treatment in the event you
choose to exercise your free
look right under the contract.
Any transfer made prior to the
40th day following the Contract
Date will cancel the automatic
reallocation on the 40th day (or
next business day) following the
Contract Date described above.
If you do not want AXA Equitable
to perform this scheduled
one-time reallocation, you must
call one of our customer service
representatives at 1 (800)
789-7771 before the 40th day
following the Contract Date to
cancel.
See "Disability, terminal The withdrawal charge waiver
illness, or confinement to under item (i) also applies if
nursing home'' under we receive satisfactory proof
"Withdrawal charge" in "Charges that the owner (or older joint
and expenses" owner, if applicable) suffers
from significant cognitive
impairment (such as a result of
Alzheimer's disease).
The withdrawal charge waiver
under item (ii) applies if we
receive satisfactory proof that
the life expectancy of the owner
(or older joint owner, if
applicable) is 12 months or less.
The withdrawal charge waiver
under item (iii) applies if we
receive satisfactory proof that
the owner (or older joint owner,
if applicable) is (a) receiving,
as prescribed by a physician,
registered nurse, or licensed
social worker, home care or
community-based services
(including adult day care,
personal care, homemaker
services, hospice services or
respite care); or (b) confined
in a skilled nursing facility,
convalescent nursing home, or
extended care facility, or is
confined in a residential care
facility or residential care
facility for the elderly, as
defined in the California Health
and Safety Code.
-------------------------------------------------------------------------------
CONNECTICUT See "Charge for each additional The charge for transfers does
transfer in excess of 12 not apply.
transfers per contract year" in
"Fee table" and "Transfer
charge" in "Charges and
expenses"
See "Disability, terminal For Investment Edge contracts
illness, or confinement to a only:
nursing home" under "Withdrawal The withdrawal charge waiver
charge" in "Charges and under item (i) does not apply.
expenses"
See "Special service charges" The maximum third party transfer
in "Charges and Expenses" or exchange charge is $49.
The maximum charge for check
preparation is $9.
See "Transfers of ownership, Your contract may not be
collateral assignments, loans directly or indirectly assigned
and borrowing" in "More nor may the ownership be changed
information" to an institutional investor or
settlement company.
See "Disruptive transfer Restrictions on transfers due to
activity" in "Transferring your market timing may only be
money among investment options" determined by the underlying
fund managers.
-------------------------------------------------------------------------------
FLORIDA See "Your right to cancel If you reside in the state of
within a certain number of Florida, you may cancel your
days" in "Contract features and variable annuity contract and
benefits 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 "Withdrawal charge" in If you are age 65 or older at
"Charges and expenses" the time your contract is
issued, the applicable
withdrawal charge will not
exceed 10% of the amount
withdrawn.
See "Account value charges" in The Contract Maintenance Fee
"Charges and expenses" Tier I is not applicable and we
refer to the Contract
Maintenance Fee Tier II as the
Contract Maintenance Fee.
See "Special services charges" The maximum charge for check
in "Charges and expenses" preparation is $25.
The charge for third party
transfers does not apply.
-------------------------------------------------------------------------------
</R>
III-2
APPENDIX III: STATE CONTRACT AVAILABILITY AND/OR
VARIATIONS OF CERTAIN FEATURES AND BENEFITS
<R>
--------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
--------------------------------------------------------------------------------
NEW YORK See "Investment Edge(R) Series In contracts issued in New York:
at a glance - key features" . The terms "Non-Qualified
Payment Program" or "Payment
Program" (as applicable) are
used in place of "Income
Edge payment program"; and
. The terms "Non-Qualified
Payment Program Series",
"Non-Qualified Early
Retirement Option Payment
Program", and "Non-Qualified
Beneficiary Option Payment
Program " are used in place
of Income Edge Series
Payment Program", "Income
Edge Early Retirement
Option", and "Income Edge
Beneficiary Advantage",
respectively.
In contracts issued in New York,
the Protected premium death
benefit is referred to as the
Return of premium death benefit.
See "Income Edge Payment At the time of your election of
Program" in "Accessing your the standard form of Income Edge
money" or Income Edge Beneficiary
Advantage, your account value
must be at least $25,000.
See "The amount applied to If a non-life contingent annuity
purchase an annuity payout is elected (period certain
option" under "Your annuity only): The amount applied to an
payout options" in "Accessing annuity benefit will be the
your money" greater of the cash value or 95%
of what the cash value would be
if there were no withdrawal
charge applied; however, the
income provided will never be
less than that resulting from
the account value applied to the
table of guaranteed annuity
purchase factors.
See "Your annuity payout We do not have the right to
options" in "Accessing your change the guaranteed annuity
money" purchase rates after your fifth
contract date anniversary.
See "Charges and expenses" The charge for third-party
transfers or exchange does not
apply.
The check preparation charge
does not apply.
We do not have the right to
increase fees after the contract
has been issued.
The Contract Maintenance Fee
Tier I is not applicable and we
refer to the Contract
Maintenance Fee Tier II as the
Contract Maintenance Fee.
See "Disability, terminal Item (i) is deleted and replaced
illness, or confinement to a with the following: An owner (or
nursing older joint owner, if
home'' under "Withdrawal applicable) has qualified to
charge" in "Charges and receive Social Security
expenses" disability benefits as certified
by the Social Security
Administration or meets the
definition of a total disability
as specified in the contract. To
qualify, a recertification
statement from a physician will
be required every 12 months from
the date disability is
determined.
See "Transfers of ownership, Collateral assignments are not
collateral assignments, loans limited to the period prior to
and borrowing" in "More the first contract date
information" anniversary. You may assign all
or a portion of your NQ contract
at any time, pursuant to the
terms described in this
Prospectus.
--------------------------------------------------------------------------------
NORTH DAKOTA See "Your right to cancel You may cancel your variable
within a certain number of annuity contract and return it
days" in "Contract features and to us within 20 days from the
benefits" date you receive it. You will
receive an unconditional refund
equal to your contributions,
including any contract fees or
charges.
--------------------------------------------------------------------------------
PENNSYLVANIA Required disclosure for Any person who knowingly and
Pennsylvania customers with intent to defraud any
insurance company or other
person files an application for
insurance or statement of claim
containing any materially false
information or conceals for the
purpose of misleading,
information concerning any fact
material thereto commits a
fraudulent insurance act, which
is a crime and subjects such
person to criminal and civil
penalties.
--------------------------------------------------------------------------------
</R>
III-3
APPENDIX III: STATE CONTRACT AVAILABILITY AND/OR
VARIATIONS OF CERTAIN FEATURES AND BENEFITS
<R>
-------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
-------------------------------------------------------------------------------
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.
Inherited IRA Not Available
QP (Defined Benefit) contracts Not Available
SEP Not available
Investment Edge(R) ADV series Not Available
contracts
See "Purchase considerations We do not offer contracts to
for a charitable remainder charitable remainder trusts in
trust" under "Owner and Puerto Rico.
annuitant requirements" in
"Contract features and benefits"
See "How you can make Specific requirements for
contributions" in "Contract purchasing QP contracts in
features and benefits" Puerto Rico are outlined below
in "Purchase considerations for
QP (Defined Contribution)
contracts in Puerto Rico".
See "Transfers of ownership, Transfers of ownership of QP
collateral assignments, loans contracts are governed by Puerto
and borrowing" in "More Rico law. Please consult your
information" tax, legal or plan advisor if
you intend to transfer ownership
of your contract.
"Purchase considerations for QP PURCHASE CONSIDERATIONS FOR QP
(Defined Contribution) (DEFINED CONTRIBUTION) CONTRACTS
contracts in Puerto Rico" -- IN PUERTO RICO:
this section replaces "Appendix Trustees who are considering the
IV: Purchase considerations for purchase of an Investment
QP contracts" in this Edge(R) series QP contract in
Prospectus. Puerto Rico should discuss with
their tax, legal and plan
advisors 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, 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.
SOURCE OF INCOME
. Because this contract is
issued by a United States
insurance company, amounts
paid from the contract
produce U.S.-source income,
not Puerto Rico-source
income. A Puerto Rico
qualified plan investing in
assets producing Puerto
Rico-source income is likely
to generate a more favorable
tax result for a participant
under a Puerto Rico
qualified plan.
LIMITS ON CONTRACT OWNERSHIP:
. QP contracts are not
available to defined benefit
plans. Defined benefit plans
must use Non-Qualified
contracts to invest in
Investment Edge(R). There is
no qualified plan contract
endorsement available for
defined benefit plans with
Investment Edge(R). The plan
and trust, if properly
qualified, contain the
requisite provisions of the
Internal Revenue Code to
maintain their tax exempt
status. A non-qualified
contract cannot be converted
to an IRA.
. 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.
. This product should not be
purchased 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.
-------------------------------------------------------------------------------
</R>
III-4
APPENDIX III: STATE CONTRACT AVAILABILITY AND/OR
VARIATIONS OF CERTAIN FEATURES AND BENEFITS
-------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
-------------------------------------------------------------------------------
PUERTO RICO If the business that sponsors
(CONTINUED) 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 withdrawal charges, if
applicable.
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 for payment to the
plan participant. 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.
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.
. 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.
-------------------------------------------------------------------------------
III-5
APPENDIX III: STATE CONTRACT AVAILABILITY AND/OR
VARIATIONS OF CERTAIN FEATURES AND BENEFITS
-------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
-------------------------------------------------------------------------------
PUERTO RICO Tax information -- special Income from NQ contracts we
(CONTINUED) rules for NQ contracts issue is U.S. source. A Puerto
Rico resident is subject to U.S.
taxation on such U.S. source
income. Only Puerto Rico source
income of Puerto Rico residents
is excludable from U.S.
taxation. Income from NQ
contracts is also subject to
Puerto Rico tax. The calculation
of the taxable portion of
amounts distributed from a con-
tract may differ in the two
jurisdictions. Therefore, you
might have to file both U.S. and
Puerto Rico tax returns, showing
different amounts of income from
the contract for each tax
return. Puerto Rico generally
provides a credit against Puerto
Rico tax for U.S. tax paid.
Depending on your personal
situation and the timing of the
different tax liabilities, you
may not be able to take full
advantage of this credit.
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.
-------------------------------------------------------------------------------
TEXAS See "Your right to cancel If you reside in the state of
within a certain number of Texas, you may cancel your
days" in "Contract features and variable annuity contract 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.
-------------------------------------------------------------------------------
III-6
APPENDIX III: STATE CONTRACT AVAILABILITY AND/OR
VARIATIONS OF CERTAIN FEATURES AND BENEFITS
Appendix IV: Purchase considerations for QP contracts
--------------------------------------------------------------------------------
Trustees who are considering the purchase of an Investment Edge(R) series
contract should discuss with their tax and ERISA advisers whether this is an
appropriate investment vehicle for the employer's plan. There are significant
issues in the purchase of an Investment Edge(R) series contract in a defined
benefit 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, 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 an Investment Edge(R) series QP contract or another annuity contract.
Therefore, plan trusts should purchase an Investment Edge(R) series 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.
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 sponsoring the plan.
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, withdrawal charges may apply. If in a defined benefit plan the
plan's actuary determines that an overfunding in the QP contract has occurred,
then any transfers from the QP contract may also result in withdrawal charges.
In order to purchase the QP 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 QP
contract is 80%. The total account value under a QP 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
account value under a QP 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.
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.
IV-1
APPENDIX IV: PURCHASE CONSIDERATIONS FOR QP CONTRACTS
Appendix V: Hypothetical illustration
--------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES
<R>
The following tables illustrate the changes in account values under certain
hypothetical circumstances for the Investment Edge(R) series contracts
(Investment Edge(R), Investment Edge(R) Select and Investment Edge(R) ADV). The
tables illustrate the operation of the contract based on a male, issue age 65,
who makes a single $100,000 contribution and takes no withdrawals. 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 (2.83)%, 3.17% for the Investment Edge(R) variable
investment options and (2.98)%, 3.02% for the Investment Edge(R) Select
variable investment options; (2.03)%, 3.97% for the Investment Edge(R) ADV
variable investment options; at the 0% and 6% gross annual rates, respectively.
</R>
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the annual administrative charge. If the net
annual rates of return did reflect this charge, the net annual rates of return
shown would be lower; however, the values shown in the following tables reflect
any applicable administrative charge and withdrawal charge.
<R>
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.57%, (2) an assumed average
asset charge for all other expenses of the underlying portfolios equivalent to
an effective annual rate of 0.91% and (3) 12b-1 fees equivalent to an effective
annual rate of 0.25%. These rates are the arithmetic average for all Portfolios
that are available as investment options. 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 illustrations
that follow, values under your contract will differ, in most cases
substantially. Upon request, we will furnish you with a personalized
illustration.
V-1
APPENDIX V: HYPOTHETICAL ILLUSTRATION
ILLUSTRATION OF ACCOUNT VALUES
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 ACCOUNT VALUE
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.
VARIABLE DEFERED ANNUITY
INVESTMENT EDGE(R)
$100,000 SINGLE CONTRIBUTION, $80,000 COST BASIS AND NO WITHDRAWALS
MALE, NON QUALIFIED, ISSUE AGE 60
INCOME EDGE - PAYMENT BEGINS AT AGE 65
FEDERAL INCOME TAX RATE 28%
<R>
-----------------------------------------------------------------------------------------------------
WITH INCOME EDGE (APPLICABLE TO NON-QUALIFIED MARKET)
CONTRACT TAX-FREE AFTER-TAX
AGE YEAR ACCOUNT VALUE CASH VALUE PRE-TAX PAYMENT AMOUNT INCOME
-----------------------------------------------------------------------------------------------------
0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
-----------------------------------------------------------------------------------------------------
60 0 $100,000 $100,000 $94,000 $ 94,000 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------
61 1 97,170 103,170 91,170 97,170 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------
62 2 94,370 106,390 88,370 100,390 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------
63 3 91,649 109,713 86,649 104,713 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------
64 4 89,006 113,141 85,006 109,141 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------------
65 5 83,014 112,326 80,014 109,326 3,423 4,352 3,077 3,077 3,326 3,995
-----------------------------------------------------------------------------------------------------
66 6 77,294 111,344 77,294 111,344 3,321 4,493 3,077 3,077 3,252 4,097
-----------------------------------------------------------------------------------------------------
67 7 71,836 110,184 71,836 110,184 3,221 4,639 3,077 3,077 3,180 4,202
-----------------------------------------------------------------------------------------------------
68 8 66,630 108,836 66,630 108,836 3,123 4,791 3,077 3,077 3,110 4,311
-----------------------------------------------------------------------------------------------------
69 9 61,665 107,289 61,665 107,289 3,029 4,947 3,077 3,077 3,029 4,423
-----------------------------------------------------------------------------------------------------
70 10 56,934 105,531 56,934 105,531 2,936 5,109 3,077 3,077 2,936 4,540
-----------------------------------------------------------------------------------------------------
75 15 36,463 93,123 36,463 93,123 2,510 6,008 3,077 3,077 2,510 5,188
-----------------------------------------------------------------------------------------------------
80 20 20,600 73,288 20,600 73,288 2,131 7,087 3,077 3,077 2,131 5,964
-----------------------------------------------------------------------------------------------------
85 25 8,555 43,624 8,555 43,624 1,781 8,415 3,077 3,077 1,781 6,920
-----------------------------------------------------------------------------------------------------
90 30 0 0 0 0 1,297 10,752 3,077 3,077 1,297 8,603
-----------------------------------------------------------------------------------------------------
</R>
V-2
APPENDIX V: HYPOTHETICAL ILLUSTRATION
VARIABLE DEFERED ANNUITY
INVESTMENT EDGE(R)
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 60
NON QUALIFIED WITHOUT INCOME EDGE OR QUALIFIED
<R>
-------------------------------------------------
CONTRACT
AGE YEAR ACCOUNT VALUE CASH VALUE
-------------------------------------------------
0% 6% 0% 6%
-------------------------------------------------
60 0 $100,000 $100,000 $94,000 $ 94,000
-------------------------------------------------
61 1 97,170 103,170 91,170 97,170
-------------------------------------------------
62 2 94,370 106,390 88,370 100,390
-------------------------------------------------
63 3 91,649 109,713 86,649 104,713
-------------------------------------------------
64 4 89,006 113,141 85,006 109,141
-------------------------------------------------
65 5 86,437 116,678 83,437 113,678
-------------------------------------------------
66 6 83,941 120,326 83,941 120,326
-------------------------------------------------
67 7 81,515 124,091 81,515 124,091
-------------------------------------------------
68 8 79,158 127,974 79,158 127,974
-------------------------------------------------
69 9 76,868 131,981 76,868 131,981
-------------------------------------------------
70 10 74,643 136,115 74,643 136,115
-------------------------------------------------
75 15 64,426 158,835 64,426 158,835
-------------------------------------------------
80 20 55,575 185,391 55,575 185,391
-------------------------------------------------
85 25 47,907 216,432 47,907 216,432
-------------------------------------------------
90 30 41,265 252,715 41,265 252,715
-------------------------------------------------
</R>
V-3
APPENDIX V: HYPOTHETICAL ILLUSTRATION
VARIABLE DEFERED ANNUITY
INVESTMENT EDGE(R) SELECT
$100,000 SINGLE CONTRIBUTION, $80,000 COST BASIS AND NO WITHDRAWALS
MALE, NON QUALIFIED, ISSUE AGE 60
INCOME EDGE - PAYMENT BEGINS AT AGE 65
FEDERAL INCOME TAX RATE 28%
<R>
-------------------------------------------------------------------------------------------------------
WITH INCOME EDGE (APPLICABLE TO NON-QUALIFIED MARKET)
CONTRACT
AGE YEAR ACCOUNT VALUE CASH VALUE PRE-TAX PAYMENT TAX-FREE AMOUNT AFTER-TAX INCOME
-------------------------------------------------------------------------------------------------------
0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
-------------------------------------------------------------------------------------------------------
60 0 $100,000 $100,000 $100,000 $100,000 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
61 1 97,020 103,020 97,020 103,020 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
62 2 94,079 106,081 94,079 106,081 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
63 3 91,225 109,235 91,225 109,235 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
64 4 88,457 112,484 88,457 112,484 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
65 5 82,369 111,504 82,369 111,504 3,402 4,326 3,077 3,077 3,311 3,976
-------------------------------------------------------------------------------------------------------
66 6 76,569 110,362 76,569 110,362 3,295 4,460 3,077 3,077 3,234 4,073
-------------------------------------------------------------------------------------------------------
67 7 71,047 109,046 71,047 109,046 3,190 4,598 3,077 3,077 3,159 4,172
-------------------------------------------------------------------------------------------------------
68 8 65,791 107,548 65,791 107,548 3,089 4,741 3,077 3,077 3,086 4,275
-------------------------------------------------------------------------------------------------------
69 9 60,790 105,858 60,790 105,858 2,990 4,889 3,077 3,077 2,990 4,381
-------------------------------------------------------------------------------------------------------
70 10 56,034 103,964 56,034 103,964 2,895 5,041 3,077 3,077 2,895 4,491
-------------------------------------------------------------------------------------------------------
75 15 35,589 91,032 35,589 91,032 2,454 5,883 3,077 3,077 2,454 5,097
-------------------------------------------------------------------------------------------------------
80 20 19,933 71,075 19,933 71,075 2,066 6,884 3,077 3,077 2,066 5,818
-------------------------------------------------------------------------------------------------------
85 25 8,197 41,949 8,197 41,949 1,711 8,106 3,077 3,077 1,711 6,698
-------------------------------------------------------------------------------------------------------
90 30 0 0 0 0 1,225 10,230 3,077 3,077 1,225 8,227
-------------------------------------------------------------------------------------------------------
</R>
V-4
APPENDIX V: HYPOTHETICAL ILLUSTRATION
VARIABLE DEFERED ANNUITY
INVESTMENT EDGE(R) SELECT
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 60
NON QUALIFIED WITHOUT INCOME EDGE OR QUALIFIED
<R>
------------------------------------------------
CONTRACT
AGE YEAR ACCOUNT VALUE CASH VALUE
------------------------------------------------
0% 6% 0% 6%
------------------------------------------------
60 0 $100,000 $100,000 $100,000 $100,000
------------------------------------------------
61 1 97,020 103,020 97,020 103,020
------------------------------------------------
62 2 94,079 106,081 94,079 106,081
------------------------------------------------
63 3 91,225 109,235 91,225 109,235
------------------------------------------------
64 4 88,457 112,484 88,457 112,484
------------------------------------------------
65 5 85,771 115,831 85,771 115,831
------------------------------------------------
66 6 83,165 119,279 83,165 119,279
------------------------------------------------
67 7 80,636 122,831 80,636 122,831
------------------------------------------------
68 8 78,183 126,491 78,183 126,491
------------------------------------------------
69 9 75,804 130,261 75,804 130,261
------------------------------------------------
70 10 73,495 134,144 73,495 134,144
------------------------------------------------
75 15 62,942 155,396 62,942 155,396
------------------------------------------------
80 20 53,871 180,056 53,871 180,056
------------------------------------------------
85 25 46,073 208,671 46,073 208,671
------------------------------------------------
90 30 39,369 241,876 39,369 241,876
------------------------------------------------
</R>
V-5
APPENDIX V: HYPOTHETICAL ILLUSTRATION
VARIABLE DEFERED ANNUITY
INVESTMENT EDGE(R) ADV
$100,000 SINGLE CONTRIBUTION, $80,000 COST BASIS AND NO WITHDRAWALS
MALE, NON QUALIFIED, ISSUE AGE 60
INCOME EDGE - PAYMENT BEGINS AT AGE 65
FEDERAL INCOME TAX RATE 28%
<R>
------------------------------------------------------------------------------------------------------
WITH INCOME EDGE (APPLICABLE TO NON-QUALIFIED MARKET)
CONTRACT
AGE YEAR ACCOUNT VALUE CASH VALUE PRE-TAX PAYMENT TAX-FREE AMOUNT AFTER-TAX INCOME
------------------------------------------------------------------------------------------------------
0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
------------------------------------------------------------------------------------------------------
60 0 $100,000 $100,000 $100,000 $100,000 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------
61 1 97,970 103,970 97,970 103,970 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------
62 2 95,931 108,048 95,931 108,048 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------
63 3 93,934 112,287 93,934 112,287 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------
64 4 91,977 116,695 91,977 116,695 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------
65 5 86,522 116,789 86,522 116,789 3,538 4,488 3,077 3,077 3,409 4,093
------------------------------------------------------------------------------------------------------
66 6 81,255 116,704 81,255 116,704 3,461 4,672 3,077 3,077 3,353 4,225
------------------------------------------------------------------------------------------------------
67 7 76,170 116,425 76,170 116,425 3,386 4,863 3,077 3,077 3,299 4,363
------------------------------------------------------------------------------------------------------
68 8 71,262 115,935 71,262 115,935 3,312 5,062 3,077 3,077 3,246 4,506
------------------------------------------------------------------------------------------------------
69 9 66,526 115,218 66,526 115,218 3,239 5,270 3,077 3,077 3,194 4,656
------------------------------------------------------------------------------------------------------
70 10 61,958 114,255 61,958 114,255 3,168 5,487 3,077 3,077 3,142 4,812
------------------------------------------------------------------------------------------------------
75 15 41,469 105,049 41,469 105,049 2,829 6,722 3,077 3,077 2,829 5,701
------------------------------------------------------------------------------------------------------
80 20 24,531 86,235 24,531 86,235 2,514 8,268 3,077 3,077 2,514 6,814
------------------------------------------------------------------------------------------------------
85 25 10,721 53,690 10,721 53,690 2,208 10,259 3,077 3,077 2,208 8,248
------------------------------------------------------------------------------------------------------
90 30 0 0 0 0 1,754 13,996 3,077 3,077 1,754 10,939
------------------------------------------------------------------------------------------------------
</R>
V-6
APPENDIX V: HYPOTHETICAL ILLUSTRATION
VARIABLE DEFERED ANNUITY
INVESTMENT EDGE(R) ADV
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 60
NON QUALIFIED WITHOUT INCOME EDGE OR QUALIFIED
<R>
------------------------------------------------
CONTRACT
AGE YEAR ACCOUNT VALUE CASH VALUE
------------------------------------------------
0% 6% 0% 6%
------------------------------------------------
60 0 $100,000 $100,000 $100,000 $100,000
------------------------------------------------
61 1 97,970 103,970 97,970 103,970
------------------------------------------------
62 2 95,931 108,048 95,931 108,048
------------------------------------------------
63 3 93,934 112,287 93,934 112,287
------------------------------------------------
64 4 91,977 116,695 91,977 116,695
------------------------------------------------
65 5 90,060 121,278 90,060 121,278
------------------------------------------------
66 6 88,182 126,042 88,182 126,042
------------------------------------------------
67 7 86,342 130,996 86,342 130,996
------------------------------------------------
68 8 84,539 136,147 84,539 136,147
------------------------------------------------
69 9 82,773 141,502 82,773 141,502
------------------------------------------------
70 10 81,042 147,069 81,042 147,069
------------------------------------------------
75 15 72,904 178,404 72,904 178,404
------------------------------------------------
80 20 65,558 216,472 65,558 216,472
------------------------------------------------
85 25 58,929 262,721 58,929 262,721
------------------------------------------------
90 30 52,945 318,909 52,945 318,909
------------------------------------------------
</R>
V-7
APPENDIX V: HYPOTHETICAL ILLUSTRATION
Appendix VI: Income Edge scheduled payment amount expressed as a Percentage of
Account Value
--------------------------------------------------------------------------------
(NOT APPLICABLE TO INCOME EDGE EARLY RETIREMENT OPTION OR INCOME EDGE
BENEFICIARY ADVANTAGE.)
Table B-1 below sets forth the maximum Payment Period available for select ages
under either a Single or Joint Election at the time that Income Edge is
elected. The Age column is used only for determining the length of the Payment
Period available under Income Edge; these are not annuity factors.
Table B-2 below is provided for your convenience and expresses a given Annual
Payout Period's Income Edge scheduled payment amounts as a (rounded) percentage
of the contract's account value at that time. The Income Edge Payment Amount
percentages are derived from the same payment method discussed earlier in this
Prospectus in "Income Edge" in the "Accessing your money" section. The
percentage is determined by dividing 1 by the number of remaining Annual Payout
Periods.
FOR EXAMPLE:
ELECTION OF INCOME EDGE. A contract owner is age 80 and chooses the Single
Election method when the contract's account value equals $180,000. Table B-1
below provides a maximum Payment Period of 15 years and the contract owner
elects to receive Income Edge scheduled payments over that maximum period.
FIRST INCOME EDGE ANNUAL PAYOUT PERIOD. The payment amount for the first
Annual Payout Period is equal to the account value at the time that you
elect Income Edge ($180,000) divided by the number of remaining Annual
Payout Periods (15), or $12,000.
Referring to Table B-2 below, the Income Edge scheduled payment amount for
the first Annual Payout Period can be expressed as a percentage of the
account value. As discussed above, the percentages in Table B-2 were
determined by dividing 1 by the remaining Annual Payout Periods. In this
example, dividing 1 by the remaining Annual Payout Periods (15) yields 6.7%.
Thus, the contract owner can expect to receive approximately 6.7% of the
Contract's account value as an Income Edge scheduled payment ($180,000
multiplied by 6.7%, or $12,000) for the first Annual Payout Period.
SECOND INCOME EDGE ANNUAL PAYOUT PERIOD. Assume the investment performance
following the first Annual Payout Period is positive and that the Contract's
account value on the day before the second Annual Payout Period begins is
$172,000. The $180,000 account value on the day before the first Income Edge
Anniversary Date minus the first Annual Payout Period payment amount of
$12,000 reduces the account value to $168,000. During the following year
assume the investments underlying the Contract gain $6,000 resulting in a
value of $172,000 on the day before the second Annual Payout Period begins.
The scheduled payment amount for the second Annual Payout Period will be
equal to $172,000 divided by the remaining Annual Payout Periods (14), or
$12,286. This amount can be expressed as a percentage of the account value
by dividing 1 by 14, yielding 7.1%.
We have the right, upon advance notice to you, to change at any time after the
Contract Date and before election of Income Edge the Maximum Payment Period
used in the table below for calculating Income Edge scheduled payment amounts.
TABLE B-1 TABLE B-2
-------------------------------------------------------------------------------
MAXIMUM PAYMENT PERIOD PAYMENT PERCENTAGE
-------------------------------------------------------------------------------
Age at Single Election Joint Election Number of Payment Amount
time of To Age To Age (Remaining) as a Percentage
Election 95 100 Annual Payout Periods of Account Value
-------------------------------------------------------------------------------
60 35 40 40 2.5%
-------------------------------------------------------------------------------
61 34 39 39 2.6%
-------------------------------------------------------------------------------
62 33 38 38 2.6%
-------------------------------------------------------------------------------
63 32 37 37 2.7%
-------------------------------------------------------------------------------
64 31 36 36 2.8%
-------------------------------------------------------------------------------
65 30 35 35 2.9%
-------------------------------------------------------------------------------
66 29 34 34 2.9%
-------------------------------------------------------------------------------
67 28 33 33 3.0%
-------------------------------------------------------------------------------
68 27 32 32 3.1%
-------------------------------------------------------------------------------
69 26 31 31 3.2%
-------------------------------------------------------------------------------
VI-1
APPENDIX VI: INCOME EDGE SCHEDULED PAYMENT AMOUNT EXPRESSED AS A PERCENTAGE OF
ACCOUNT VALUE
TABLE B-1 TABLE B-2
-------------------------------------------------------------------------------
MAXIMUM PAYMENT PERIOD PAYMENT PERCENTAGE
-------------------------------------------------------------------------------
Age at Single Election Joint Election Number of Payment Amount
time of To Age To Age (Remaining) as a Percentage
Election 95 100 Annual Payout Periods of Account Value
-------------------------------------------------------------------------------
70 25 30 30 3.3%
-------------------------------------------------------------------------------
71 24 29 29 3.4%
-------------------------------------------------------------------------------
72 23 28 28 3.6%
-------------------------------------------------------------------------------
73 22 27 27 3.7%
-------------------------------------------------------------------------------
74 21 26 26 3.8%
-------------------------------------------------------------------------------
75 20 25 25 4.0%
-------------------------------------------------------------------------------
76 19 24 24 4.2%
-------------------------------------------------------------------------------
77 18 23 23 4.3%
-------------------------------------------------------------------------------
78 17 22 22 4.5%
-------------------------------------------------------------------------------
79 16 21 21 4.8%
-------------------------------------------------------------------------------
80 15 20 20 5.0%
-------------------------------------------------------------------------------
81 14 19 19 5.3%
-------------------------------------------------------------------------------
82 13 18 18 5.6%
-------------------------------------------------------------------------------
83 12 17 17 5.9%
-------------------------------------------------------------------------------
84 11 16 16 6.3%
-------------------------------------------------------------------------------
85 10 15 15 6.7%
-------------------------------------------------------------------------------
86 9 14 14 7.1%
-------------------------------------------------------------------------------
87 8 13 13 7.7%
-------------------------------------------------------------------------------
88 7 12 12 8.3%
-------------------------------------------------------------------------------
89 6 11 11 9.1%
-------------------------------------------------------------------------------
90 5 10 10 10.0%
-------------------------------------------------------------------------------
91 4 9 9 11.1%
-------------------------------------------------------------------------------
92 3 8 8 12.5%
-------------------------------------------------------------------------------
93 2 7 7 14.3%
-------------------------------------------------------------------------------
94 1 6 6 16.7%
-------------------------------------------------------------------------------
95 5 5 20.0%
-------------------------------------------------------------------------------
96 4 4 25.0%
-------------------------------------------------------------------------------
97 3 3 33.3%
-------------------------------------------------------------------------------
98 2 2 50.0%
-------------------------------------------------------------------------------
99 1 1 100.0%
-------------------------------------------------------------------------------
VI-2
APPENDIX VI: INCOME EDGE SCHEDULED PAYMENT AMOUNT EXPRESSED AS A PERCENTAGE OF
ACCOUNT VALUE
Appendix VII: Protected premium death benefit example
--------------------------------------------------------------------------------
The Protected premium death benefit (PPDB) under the contract is equal to the
greater of (a) your Protected premium death benefit base on the date of death
and (b) your account value on the date of claim. The Protected premium death
benefit base is not an account value or cash value. It is equal to:
. your initial contribution and any subsequent contributions to your
contract, less
. a deduction that reflects any withdrawals you make (including any
applicable withdrawal charges).
The date of claim is the date on which we receive satisfactory proof of the
owner's (or older joint owner's, if applicable) death, and any required
instructions for the method of payment, forms necessary to effect payment and
any other information we may require.
For purposes of calculating your PPDB, any accrued but unpaid Breakpoint Credit
amount will be added to your account value and any accrued but unpaid PPDB
charge will be deducted from your account value.
Please see "Protected premium death benefit" under "Contract features and
benefits" earlier in this Prospectus for more detailed information.
<R>
PPDB CHARGE. We deduct the charge for the PPDB annually on each contract date
anniversary for which the benefit is in effect. This charge is calculated daily
as a percentage of your Net Amount at Risk (NAR) and varies according to your
age as of your most recent contract date anniversary. On each day of your
contract, your NAR is equal to (A) minus (B), where:
(A) equals your Protected premium death benefit base; and (B) equals your
account value on that day. If (A) is less than or equal to (B), then your NAR
for that day equals zero.
There will be no accrued charge for the PPDB for any day on which your NAR is
less than or equal to zero. For more information about the PPDB charge, see
"Protected premium death benefit charge" in the "Charges and expenses" section
earlier in this Prospectus.
</R>
EXAMPLES OF HOW WE CALCULATE THE PPDB CHARGE AMOUNT. Assume Jane is 66, elects
the PPDB, makes an initial contribution to her contract of $400,000, and makes
no additional contributions or withdrawals through the first year of her
contract. In her first contract year, the applicable PPDB charge for Jane is
1.2% of her NAR on an annual basis, or 0.00328767% daily. The specific PPDB
charge amount will depend on her daily NAR, as illustrated in the following
scenarios:
SCENARIO 1: On every day of the year until her first contract date anniversary,
Jane's account value was greater than or equal to $400,000.
CHARGE CALCULATION: Because Jane's account value was greater than or equal to
her total contributions on every day of the year, her NAR for each of those
days was also zero. Therefore, the amount of the PPDB charge for the year is $0.
SCENARIO 2: On every day of the year until her first contract date anniversary,
Jane's account value was greater than or equal to $400,000, except for March 16
($390,000), March 17 ($380,000), March 18 ($390,000), September 14 ($370,000)
and September 15 ($390,000).
CHARGE CALCULATION: For each of the 360 days on which Jane's account value was
greater than or equal to her total contributions, her NAR was zero. Therefore,
the amount of the PPDB charge for each of those days is $0. For the five days
on which her account value was less than her total contributions, her NAR and
the associated PPDB charge are shown in the table below:
----------------------------------------------------------------------------------------------------------------
DAY ACCOUNT VALUE NAR PPDB CHARGE
----------------------------------------------------------------------------------------------------------------
March 16 $390,000 $10,000 $0.33 ($10,000 * 0.00328767%)
----------------------------------------------------------------------------------------------------------------
March 17 $380,000 $20,000 $0.66 ($20,000 * 0.00328767%)
----------------------------------------------------------------------------------------------------------------
March 18 $390,000 $10,000 $0.33 ($10,000 * 0.00328767%)
----------------------------------------------------------------------------------------------------------------
September 14 $370,000 $30,000 $0.99 ($30,000 * 0.00328767%)
----------------------------------------------------------------------------------------------------------------
September 15 $390,000 $10,000 $0.33 ($10,000 * 0.00328767%)
----------------------------------------------------------------------------------------------------------------
TOTAL $2.64
----------------------------------------------------------------------------------------------------------------
<R>
The total annual PPDB charge of $2.64 will be deducted from Jane's account on
her contract date anniversary. If she decided to drop the PPDB on June 30, the
cumulative charge of $1.32 would be deducted on the immediately following
business day.
</R>
VII-1
APPENDIX VII: PROTECTED PREMIUM DEATH BENEFIT EXAMPLE
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
<R>
HOW TO OBTAIN AN INVESTMENT EDGE(R) 15.0 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
</R>
<R>
----------------------------------------------------------------------------------
Please send me an Investment Edge(R) 15.0 SAI for SEPARATE ACCOUNT
NO. 70 dated July 20, 2015.
----------------------------------------------------------------------------------
Name
----------------------------------------------------------------------------------
Address
----------------------------------------------------------------------------------
City State Zip
</R>
Investment Edge(R) 15.0
#868112