Separate Account No. 70 of AXA Equitable Life Insurance
Filed: 25 Aug 17, 12:00am
VIA EDGAR
August 25, 2017
U.S. Securities and Exchange Commission
100 F Street NE
Washington, D.C. 20549
| Re: | Initial Filing of the Registration Statement on Form N-4 for AXA Equitable Life Insurance Company (CIK # 0001537470) (“Registration Statement”) |
Commissioners:
On behalf of AXA Equitable Life Insurance Company (“AXA Equitable”), we are filing pursuant to the Securities Act of 1933 (“1933 Act”) and the Investment Company Act of 1940 (“1940 Act”), the above-referenced Registration Statement with respect to AXA Equitable’s Separate Account No. 70. Attached to this correspondence filing is a complete copy of the prospectus for the Staff’s review.
Retirement Cornerstone® Series 15B is covered by AXA Equitable’s Form N-4 Registration Statement File No. 333-178750 and has been offered continuously since it became effective under the 1933 Act. It is intended that once the Registration Statement becomes effective, and subject to state approval, Retirement Cornerstone® Series 17 will replace Retirement Cornerstone® Series 15B for new offers and sales.
The principal differences between the new Retirement Cornerstone® Series 17 and Retirement Cornerstone® Series 15B are:
| • | Eliminating Series L; |
| • | Eliminating the Asset transfer program; |
| • | Roll-up to age 85 has been changed to age 80; |
| • | Eliminated the Guaranteed minimum income benefit Two-Year lock option, only offering Multi-Year Lock which now has a 4% floor (changed from 3%); and |
| • | Guaranteed minimum income benefit minimum issue age changed from 20 to 45. |
We would greatly appreciate the Staff’s effort in providing us with comments by October 16, 2017, or as soon as practicable thereafter. We will then file a Pre-Effective Amendment that will address any Staff comments to the prospectus. Also, we will provide any additional exhibits that might be necessary.
Please contact the undersigned at if you have any questions or comments.
Very truly yours,
|
/s/ Julie Collett |
| Julie Collett |
AXA Equitable Life Insurance Company
1290 Avenue of the Americas, New York, NY 10104
Retirement Cornerstone(R) Series 17
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED , 2017
PLEASE READ AND KEEP THIS PROSPECTUS FOR FUTURE REFERENCE. IT CONTAINS
IMPORTANT INFORMATION THAT YOU SHOULD KNOW BEFORE PURCHASING OR TAKING ANY
OTHER ACTION UNDER YOUR CONTRACT. THIS PROSPECTUS SUPERCEDES ALL PRIOR
PROSPECTUSES AND SUPPLEMENTS. YOU SHOULD READ THE PROSPECTUSES FOR EACH TRUST,
WHICH CONTAIN IMPORTANT INFORMATION ABOUT THE PORTFOLIOS.
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WHAT IS THE RETIREMENT CORNERSTONE(R) SERIES 17?
The Retirement Cornerstone(R) Series 17 (the "Retirement Cornerstone (R)
Series") are deferred annuity contracts issued by AXA Equitable Life Insurance
Company. This Prospectus only describes Retirement Cornerstone(R) Series B
("Series B"), and Retirement Cornerstone(R) Series CP(R) ("Series CP(R)"). The
contracts provide for the accumulation of retirement savings and for income.
The contracts offer income and death benefit protection as well. They also
offer a number of payout options. You invest to accumulate value on a
tax-deferred basis in one or more of our "investment options": (i) variable
investment options, (ii) the guaranteed interest option, or (iii) the account
for special dollar cost averaging or the account for special money market
dollar cost averaging (together, the "Special DCA programs")./()/
For Series CP(R) contracts, we allocate credits and, under certain
circumstances, the Earnings bonus to your Total account value. Under the Series
CP(R) contracts, a portion of the withdrawal charge and contract fee are used
to recover the cost of providing the Credit. The charge associated with the
Credit may, over time, exceed the sum of the Credit and related earnings.
Expenses for a contract with a Credit may be higher than expenses for a
contract without a Credit.
This Prospectus is a disclosure document and describes all of the contract's
material features, benefits, rights and obligations, as well as other
information. The description of the contract's material provisions in this
Prospectus is current as of the date of this Prospectus. If certain material
provisions under the contract are changed after the date of this Prospectus in
accordance with the contract, those changes will be described in a supplement
to this Prospectus. You should carefully read this Prospectus in conjunction
with any applicable supplements.
The contract may not currently be available in all states. In addition, certain
features and benefits described in this Prospectus may vary in your state and
may not be available at the time you purchase the contract. For a
state-by-state description of all material variations of this contract, see
Appendix V later in this Prospectus. All features and benefits may not be
available in all contracts or from all selling broker-dealers. You may contact
us to purchase any version of the contract if a version is not offered by the
selling broker-dealer. We have the right to restrict availability of any
optional feature or benefit. Not all optional features and benefits may be
available in combination with other optional features and benefits. WE RESERVE
THE RIGHT TO DISCONTINUE ACCEPTANCE OF ANY APPLICATION OR CONTRIBUTION FROM YOU
AT ANY TIME, INCLUDING AFTER YOU PURCHASE THE CONTRACT. IF YOU HAVE ONE OR MORE
GUARANTEED BENEFITS AND WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF,
AND/OR PLACE ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS TO THE CONTRACT AND/OR
CONTRIBUTIONS AND/OR TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT VARIABLE
INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO FUND YOUR GUARANTEED
BENEFIT(S). THIS MEANS THAT IF YOU HAVE NOT YET ALLOCATED AMOUNTS TO THE
PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO
FUND YOUR GUARANTEED BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY
FUNDED YOUR GUARANTEED BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTED BENEFIT
ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTED BENEFIT ACCOUNT VALUE AND THE BENEFIT BASES ASSOCIATED WITH YOUR
GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS.
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(+)The account for special dollar cost averaging is only available with Series
B contracts. The account for special money market dollar cost averaging is
only available with Series CP(R) contracts.
In order to fund certain benefits, you must select specified investment
options. The specified investment options are made available under a portion of
the contract that we refer to as the Protected Benefit account. Only amounts
you allocate to the Protected Benefit account variable investment options and
amounts in a Special DCA program designated for future transfers to the
Protected Benefit account variable investment options will fund your Guaranteed
benefits. See "What are your investment options under the contract?" and
"Allocating your contributions" in "Contract features and benefits" later in
this Prospectus for more information on applicable allocation requirements.
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.
.. Traditional and Roth Inherited IRA beneficiary continuation contract
("Inherited IRA") (direct transfer and specified direct rollover
contributions only).
.. An annuity that is an investment vehicle for a qualified plan ("QP")
(whether defined contribution or defined benefit; transfer contributions
only).
.. An employer-funded traditional IRA for a simplified employee pension plan
("SEP") sponsored by the contract owner's employer.
Not all types of contracts are available with each version of the Retirement
Cornerstone(R) Series contracts. See "Rules regarding contributions to your
contract" in "Appendix VIII" for more information.
The optional Guaranteed benefits under the contract include: (i) the Guaranteed
minimum income benefit ("GMIB"), (ii) the Return of Principal death benefit;
(iii) the Highest Anniversary Value death benefit; (iv) the RMD Wealth Guard
death benefit; and (v) the "Greater of" death benefit (collectively, the
"Guaranteed benefits").
THE SEC HAS NOT APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS
PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE. THE CONTRACTS ARE NOT INSURED BY THE FDIC OR ANY OTHER
AGENCY. THEY ARE NOT DEPOSITS OR OTHER OBLIGATIONS OF ANY BANK AND ARE NOT BANK
GUARANTEED. THEY ARE SUBJECT TO INVESTMENT RISKS AND POSSIBLE LOSS OF PRINCIPAL.
(RC 17)
#435655
The registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated , 2017, 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.
Our variable investment options are subaccounts offered through Separate
Account No. 70. Each variable investment option, in turn, invests in a
corresponding securities portfolio ("Portfolio") of one of the trusts (the
"Trusts"). Below is a complete list of the variable investment options:
VARIABLE INVESTMENT OPTIONS
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AXA PREMIER VIP TRUST
.. AXA Moderate Allocation
.. Charter/SM/ Moderate
.. Charter/SM/ Moderate Growth
.. Charter /SM/ Small Cap Value
EQ ADVISORS TRUST
.. 1290 VT DoubleLine Dynamic Allocation
.. 1290 VT DoubleLine Opportunistic Bond
.. 1290 VT Equity Income
.. 1290 VT GAMCO Mergers & Acquisitions
.. 1290 VT GAMCO Small Company Value
.. 1290 VT High Yield Bond
.. 1290 VT Natural Resources
.. 1290 VT Real Estate
.. All Asset Growth - Alt 20
.. AXA Aggressive Strategy/(1)/
.. AXA Balanced Strategy/(1)/
.. AXA Conservative Growth Strategy/(1)/
.. AXA Conservative Strategy/(1)/
.. AXA Growth Strategy/(1)/
.. AXA Moderate Growth Strategy/(1)/
.. AXA International Core Managed Volatility
.. AXA Large Cap Value Managed Volatility
.. AXA Mid Cap Value Managed Volatility
.. AXA/AB Dynamic Aggressive Growth/(1)/
.. AXA/AB Dynamic Growth/(1)/
.. AXA/AB Dynamic Moderate Growth/(1)/
.. AXA/AB Small Cap Growth
.. AXA/Goldman Sachs Strategic Allocation/(1)/
.. AXA/Invesco Strategic Allocation/(1)/
.. AXA/Janus Enterprise
.. AXA/JPMorgan Strategic Allocation/(1)/
.. AXA/Legg Mason Strategic Allocation/(1)/
.. AXA/Loomis Sayles Growth
.. EQ/BlackRock Basic Value Equity
.. EQ/Common Stock Index
.. EQ/Core Bond Index
.. EQ/Emerging Markets Equity PLUS
.. EQ/Equity 500 Index
.. EQ/Intermediate Government Bond
.. EQ/International Equity Index
.. EQ/Invesco Comstock
.. EQ/Large Cap Growth Index
.. EQ/Large Cap Value Index
.. EQ/MFS International Growth
.. EQ/Mid Cap Index
.. EQ/Money Market
.. EQ/Oppenheimer Global
.. EQ/PIMCO Global Real Return
.. EQ/PIMCO Ultra Short Bond
.. EQ/Small Company Index
.. EQ/T. Rowe Price Growth Stock
.. Multimanager Aggressive Equity
.. Multimanager Mid Cap Growth
.. Multimanager Mid Cap Value
.. Multimanager Technology
AIM VARIABLE FUNDS (INVESCO VARIABLE INSURANCE FUNDS) -- SERIES II
.. Invesco V.I. Diversified
Dividend
.. Invesco V.I. Equity and Income
.. Invesco V.I. Global Real Estate
.. Invesco V.I. High Yield
.. Invesco V.I. International Growth
.. Invesco V.I. Mid Cap Core Equity
.. Invesco V.I. Small Cap Equity
AB VARIABLE PRODUCT SERIES FUND, INC. -- CLASS B
.. AB VPS International Growth
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC. -- CLASS II
.. American Century VP Mid Cap Value
AMERICAN FUNDS INSURANCE SERIES(R)
.. American Funds Insurance Series(R) Bond Fund
.. American Funds Insurance Series(R) Global Small Capitalization Fund
.. American Funds Insurance Series(R) New World Fund(R)
BLACKROCK VARIABLE SERIES FUNDS, INC. -- CLASS III
.. BlackRock Global Allocation V.I. Fund
.. BlackRock Large Cap Focus Growth V.I. Fund
EATON VANCE VARIABLE TRUST
.. Eaton Vance VT Floating-Rate Income
FIDELITY(R) VARIABLE INSURANCE PRODUCTS FUND -- SERVICE CLASS 2
.. Fidelity(R) VIP Contrafund(R)
.. Fidelity(R) VIP Mid Cap
.. Fidelity(R) VIP Strategic Income
FIRST TRUST VARIABLE INSURANCE TRUST
.. First Trust/Dow Jones Dividend & Income Allocation
.. First Trust Multi Income Allocation
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST -- CLASS 2
.. Franklin Founding Funds Allocation VIP
.. Franklin Income VIP
.. Franklin Rising Dividends VIP
.. Franklin Strategic Income VIP
.. Templeton Developing Markets VIP
.. Templeton Global Bond VIP
GOLDMAN SACHS VARIABLE INSURANCE TRUST -- SERVICE SHARES
.. Goldman Sachs VIT Mid Cap Value
HARTFORD HLS FUNDS -- CLASS IC SHARES
.. Hartford Capital Appreciation HLS
.. Hartford Growth Opportunities HLS
VARIABLE INVESTMENT OPTIONS
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IVY VARIABLE INSURANCE PORTFOLIOS
.. Ivy VIP Asset Strategy
.. Ivy VIP Dividend Opportunities
.. Ivy VIP Energy
.. Ivy VIP High Income
.. Ivy VIP Mid Cap Growth
.. Ivy VIP Natural Resources
.. Ivy VIP Science and Technology
.. Ivy VIP Small Cap Growth
LAZARD RETIREMENT SERIES, INC. -- SERVICE SHARES
.. Lazard Retirement Emerging Markets Equity
LEGG MASON -- SHARE CLASS II
.. ClearBridge Variable Aggressive Growth
.. ClearBridge Variable Appreciation
.. ClearBridge Variable Dividend Strategy
.. ClearBridge Variable Mid Cap
.. 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) Massachusetts Investors Growth Stock
.. MFS(R) Utilities Series
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST -- S CLASS SHARES
.. Neuberger Berman International Equity
.. Neuberger Berman U.S. Equity Index PutWrite Strategy
NORTHERN LIGHTS VARIABLE TRUST
.. 7Twelve/TM/ Balanced Portfolio
PIMCO VARIABLE INSURANCE TRUST -- ADVISOR CLASS
.. PIMCO CommodityRealReturn(R) Strategy
.. PIMCO Real Return
.. PIMCO Total Return
PROFUNDS VP
.. ProFund VP Biotechnology
PUTNAM VARIABLE TRUST
.. Putnam VT Diversified Income
T. ROWE PRICE EQUITY SERIES, INC.
.. T.Rowe Price Health Sciences Portfolio II
VANECK VIP TRUST -- S CLASS
.. VanEck VIP Global Hard Assets
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(1)This variable investment option is also available as a Protected Benefit
account variable investment option should you decide to fund your Guaranteed
benefits. For more information, please see "What are your investment options
under the contract?" under "Contract features and benefits" later in this
Prospectus.
Your investment results in a variable investment option will depend on the
investment performance of the related Portfolio. At any time, we have the right
to limit or terminate your contributions, allocations and transfers to any of
the variable investment options. IF YOU HAVE ONE OR MORE GUARANTEED BENEFITS
AND WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS TO THE CONTRACT AND/OR CONTRIBUTIONS
AND/OR TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT
OPTIONS, YOU MAY NO LONGER BE ABLE TO FUND YOUR GUARANTEED BENEFIT(S). THIS
MEANS THAT IF YOU HAVE NOT YET ALLOCATED AMOUNTS TO THE PROTECTED BENEFIT
ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO FUND YOUR
GUARANTEED BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY FUNDED YOUR
GUARANTEED BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTED BENEFIT ACCOUNT
VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTED BENEFIT ACCOUNT VALUE AND THE BENEFIT BASES ASSOCIATED WITH YOUR
GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS. Also, we limit the
number of variable investment options that you may select.
Contents of this Prospectus
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Definitions of key terms 5
Who is AXA Equitable? 8
How to reach us 9
Retirement Cornerstone(R) Series at a glance --
key features 11
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FEE TABLE 15
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Examples 17
Condensed financial information 18
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1. CONTRACT FEATURES AND BENEFITS 19
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How you can purchase and contribute to your
contract 19
Owner and annuitant requirements 19
How you can make your contributions 20
What are your investment options under the
contract? 21
Portfolios of the Trusts 23
Allocating your contributions 33
Dollar cost averaging 34
Credits and Earnings bonus 37
Annuity purchase factors 38
Guaranteed minimum income benefit 38
Death benefit 47
Guaranteed minimum death benefits 48
Series CP(R) and your Guaranteed benefit bases 55
How withdrawals affect your Guaranteed benefits 55
Dropping or changing your Guaranteed benefits 56
Guaranteed benefit offers 57
Inherited IRA beneficiary continuation contract 57
Your right to cancel within a certain number of
days 59
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2. DETERMINING YOUR CONTRACT'S VALUE 60
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Your account value and cash value 60
Your contract's value in the variable investment
options 60
Your contract's value in the guaranteed interest
option 60
Your contract's value in the account for special
dollar cost averaging 60
Effect of your account values falling to zero 60
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"We," "our," and "us" refer to AXA Equitable.
When we address the reader of this Prospectus with words such as "you" and
"your," we mean the person who has the right or responsibility that the
Prospectus is discussing at that point. This is usually the contract owner.
When we use the word "contract" it also includes certificates that are issued
under group contracts in some states.
3
CONTENTS OF THIS PROSPECTUS
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3. TRANSFERRING YOUR MONEY AMONG INVESTMENT
OPTIONS 62
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Transferring your account value 62
Disruptive transfer activity 63
Rebalancing among your Investment account variable
investment options and guaranteed interest option 64
Systematic transfer program 65
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4. ACCESSING YOUR MONEY 67
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Withdrawing your account value 67
How withdrawals are taken from your Total account value 71
Withdrawals treated as surrenders 72
Surrendering your contract to receive its cash value 72
When to expect payments 72
Your annuity payout options 73
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5. CHARGES AND EXPENSES 75
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Charges that AXA Equitable deducts 75
Charges that the Trusts deduct 79
Group or sponsored arrangements 79
Other distribution arrangements 80
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6. PAYMENT OF DEATH BENEFIT 81
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Your beneficiary and payment of benefit 81
Non-spousal joint owner contract continuation 82
Spousal continuation 82
Beneficiary continuation option 84
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7. TAX INFORMATION 86
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Overview 86
Contracts that fund a retirement arrangement 86
Transfers among investment options 86
Taxation of nonqualified annuities 86
Individual retirement arrangements (IRAs) 89
Traditional individual retirement annuities (traditional IRAs) 89
Roth individual retirement annuities (Roth IRAs) 94
Federal and state income tax withholding and information
reporting 97
Special rules for contracts funding qualified plans 98
Impact of taxes to AXA Equitable 98
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8. MORE INFORMATION 99
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About Separate Account No. 70 99
About the Trusts 99
About the general account 99
About other methods of payment 100
Dates and prices at which contract events occur 100
About your voting rights 101
Cybersecurity 101
Misstatement of age 102
Statutory compliance 102
About legal proceedings 102
Financial statements 102
Transfers of ownership, collateral assignments,
loans and borrowing 102
About Custodial IRAs 103
How divorce may affect your Guaranteed benefits 103
Distribution of the contracts 103
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APPENDICES
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I -- Dropping or changing your Guaranteed benefits I-1
II -- Purchase considerations for QP contracts II-1
III -- Guaranteed benefit base examples III-1
IV -- Hypothetical illustrations IV-1
V -- State contract availability and/or variations of
certain features and benefits V-1
VI -- Examples of Automatic payment plans VI-1
VII -- Examples of how withdrawals affect your
Guaranteed benefit bases VII-1
VIII -- Rules regarding contributions to your contract VIII-1
IX -- Condensed financial information IX-1
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STATEMENT OF ADDITIONAL INFORMATION
Table of contents 157
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4
CONTENTS OF THIS PROSPECTUS
Definitions of key terms
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ANNUAL ROLL-UP AMOUNT -- The "Annual Roll-up amount" is the amount credited to
your GMIB benefit base and Roll-up to age 80 benefit base (for contracts with
the "Greater of" Guaranteed minimum death benefit) if you have ever taken a
withdrawal from your Protected Benefit account.
ANNUAL ROLL-UP RATE -- The "Annual Roll-up rate" is the rate used to calculate
the Annual withdrawal amount and the Annual Roll-up amount.
ANNUAL WITHDRAWAL AMOUNT -- The "Annual withdrawal amount" is the amount that
can be withdrawn from your Protected Benefit account value without reducing
your GMIB benefit base. Also, withdrawals up to your Annual withdrawal amount
will not reduce your Roll-up to age 80 benefit base (used in the calculation of
the "Greater of" death benefit) up to age 80. It is equal to the Annual Roll-up
rate in effect on the first day of the contract year, multiplied by the GMIB
benefit base as of the most recent contract date anniversary.
ANNUITANT -- The "annuitant" is the person who is the measuring life for
determining the contract's maturity date. The annuitant is not necessarily the
contract's owner. Where the owner of the contract is non-natural, the annuitant
is the measuring life for determining benefits under the contract.
AUTOMATIC INVESTMENT PROGRAM ("AIP") -- The "Automatic investment program"
allows you to make on-going contributions to your contract through electronic
fund transfers from your financial institution.
BUSINESS DAY -- Our "business day" is generally any day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). If the Securities
and Exchange Commission determines the existence of emergency conditions on any
day, and consequently, the NYSE does not open, then that day is not a business
day.
CASH VALUE -- At any time before annuity payments begin, your contract's "cash
value" is equal to the Total account value, less: (i) the total amount or a pro
rata portion of the annual administrative charge, as well as any Guaranteed
benefit charges; and (ii) any applicable withdrawal charges.
CONTRACT DATE -- The "contract date" is the effective date of the contract.
This usually is the business day we receive the properly completed and signed
application, along with any other required documents, and your initial
contribution. Your contract date will be shown in your contract.
CONTRACT DATE ANNIVERSARY -- The end of each 12-month period is your "contract
date anniversary." For example, if your contract date is May 1st, your contract
date anniversary is April 30th.
CONTRACT YEAR -- The "contract year" is the 12-month period beginning on your
contract date and each 12-month period after that date.
CREDIT -- For Series CP(R) contracts, a 3% credit is applied to eligible
contributions.
CUSTOMIZED PAYMENT PLAN -- For contracts with GMIB, our "Customized payment
plan" allows you to request amounts up to your Annual withdrawal amount as
scheduled payments to you through one of five customized options.
DEFERRAL ROLL-UP RATE -- The "Deferral Roll-up rate" is used to calculate
amounts credited to your GMIB benefit base and the Roll-up to age 80 benefit
base (used in the calculation of the "Greater of" death benefit) if you have
never taken a withdrawal from your Protected Benefit account.
EARNINGS BONUS -- For Series CP(R) contracts, an amount equal to 5% of your
annual investment gains will be added to your Total account value on each
contract date anniversary.
EXCESS WITHDRAWAL -- For contracts with the GMIB, an "Excess withdrawal" is the
portion of a withdrawal from your Protected Benefit account in excess of your
Annual withdrawal amount and all subsequent withdrawals from your Protected
Benefit account in that same contract year. An Excess withdrawal will always
reduce your benefit bases on a pro rata basis. In the contract year in which
you first fund your Protected Benefit account all withdrawals (except for RMD
payments through our Automatic RMD service) will reduce your benefit bases on a
pro rata basis, because you do not have an Annual withdrawal amount in that
year.
EXCESS RMD WITHDRAWAL -- For contracts with the RMD Wealth Guard death benefit,
an "Excess RMD withdrawal" is:
.. the full amount of any withdrawal from your Protected Benefit Account taken
before the calendar year in which you turn age 701/2;
.. the full amount of any withdrawal from your Protected Benefit Account taken
during your first contract year, even if you turn age 701/2 during that
year; or
.. the portion of a withdrawal from your Protected Benefit account that
exceeds your RMD Wealth Guard withdrawal amount for the calendar year.
Excess RMD withdrawals will reduce your RMD Wealth Guard death benefit base on
a pro rata basis.
FREE LOOK -- If for any reason you are not satisfied with your contract, you
may exercise your cancellation right under the contract to receive a refund,
but only if you return your contract within the prescribed period. This is your
"Free look" right under the contract. Your refund will generally reflect any
gain or loss in your investment options, although in some states different
rules may apply.
GMIB BENEFIT BASE -- The GMIB benefit base is an amount used to determine your
Annual withdrawal amount and your Lifetime GMIB payments. Your GMIB benefit
base is created and increased by allocations and transfers to your Protected
Benefit account. The GMIB benefit base is not an account value or cash value.
The GMIB benefit base is also used to calculate the charge for the GMIB.
5
DEFINITIONS OF KEY TERMS
GENERAL DOLLAR COST AVERAGING -- Our "General dollar cost averaging program" is
a program that allows for the systematic transfers of amounts in the EQ/Money
Market variable investment option to the Investment account variable investment
options.
"GREATER OF" DEATH BENEFIT -- The "Greater of" death benefit is an optional
Guaranteed minimum death benefit in connection with your Protected Benefit
account value only. The death benefit is calculated using the greater of two
benefit bases -- the greater of the Roll-up to age 80 benefit base and the
Highest Anniversary Value benefit base. There is an additional charge for the
"Greater of" death benefit under the contract.
GUARANTEED MINIMUM INCOME BENEFIT ("GMIB") -- The GMIB is a benefit that
guarantees, subject to certain restrictions, annual lifetime payments or
"Lifetime GMIB payments". The GMIB also allows you to take certain withdrawals
prior to the beginning of your Lifetime GMIB payments that do not reduce your
GMIB benefit base (your "Annual withdrawal amount"). There is an additional
charge for the GMIB under the contract.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT -- The "Highest Anniversary Value death
benefit" is an optional Guaranteed minimum death benefit in connection with
your Protected Benefit account value only. The death benefit is calculated
using the highest value of your Protected Benefit account on your contract date
anniversary. There is an additional charge for the Highest Anniversary Value
death benefit under the contract.
INVESTMENT ACCOUNT VALUE -- The "Investment account value" is the total value
in: (i) the Investment account variable investment options, (ii) the Guaranteed
interest option, and (iii) amounts in a Special DCA program that are designated
for future transfers to the Investment account variable investment options.
INVESTMENT SIMPLIFIER -- Our "Investment simplifier" allows for systematic
transfers of amounts in the Guaranteed interest option to the Investment
account variable investment options. There are two options under the program --
the Fixed dollar option and the Interest sweep option.
IRA -- An individual retirement arrangement, including both an individual
retirement account and an individual retirement annuity contract, whether
traditional IRA or Roth IRA.
IRS -- Internal Revenue Service
LIFETIME GMIB PAYMENTS -- For contracts with the GMIB, "Lifetime GMIB payments"
are generally annual lifetime payments which are calculated by applying your
GMIB benefit base, less any applicable withdrawal charge remaining, to
guaranteed annuity purchase factors. Lifetime GMIB payments will begin at the
earliest of: (i) the next contract year following the date your Protected
Benefit account value falls to zero (provided the no lapse guarantee is in
effect); (ii) the contract date anniversary following your 95th birthday; or
(iii) your election to exercise the GMIB.
MATURITY DATE -- The contract's "maturity date" is generally the contract date
anniversary that follows the annuitant's 95th birthday.
MAXIMUM PAYMENT PLAN -- For contracts with GMIB, our "Maximum payment plan"
allows you to request your Annual withdrawal amount as scheduled payments.
NQ CONTRACT -- Nonqualified annuity contract.
OWNER -- The "owner" is the person who is the named owner in the contract and,
if an individual, is the measuring life for determining contract benefits.
PROTECTED BENEFIT ACCOUNT VALUE -- The "Protected Benefit account value" is the
total value in: (i) the Protected Benefit account variable investment options,
and (ii) amounts in a Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options.
QP CONTRACT -- An annuity contract that is an investment vehicle for a
qualified plan.
QPDB CONTRACT -- An annuity contract that is an investment vehicle for a
qualified defined benefit plan.
QPDC CONTRACT -- An annuity contract that is an investment vehicle for a
qualified defined contribution plan.
RMD WEALTH GUARD DEATH BENEFIT -- The RMD Wealth Guard death benefit is an
optional Guaranteed minimum death benefit in connection with the Protected
Benefit account value only. The RMD Wealth Guard death benefit base is created
and increased by allocations and any transfers to the Protected Benefit
account. The RMD Wealth Guard death benefit also enables you to take
withdrawals from your Protected Benefit account, other than Excess RMD
withdrawals, without reducing your RMD Wealth Guard death benefit base. The RMD
Wealth Guard death benefit base is not an account value or cash value. There is
an additional charge for the RMD Wealth Guard death benefit under the contract.
RMD WITHDRAWAL -- a withdrawal that is intended to satisfy the lifetime
required minimum distributions from certain tax-favored plans and arrangements
such as traditional IRAs under federal income tax rules.
RETURN OF PRINCIPAL DEATH BENEFIT -- The "Return of Principal" death benefit is
a death benefit in connection with your Protected Benefit account value only.
The benefit is calculated using the amounts of contributions and transfers to
the Protected Benefit account, adjusted for withdrawals. There is no additional
charge for this death benefit.
ROLL-UP TO AGE 80 BENEFIT BASE -- The "Roll-up to age 80 benefit base" is used
only in connection with the "Greater of" death benefit. It is equal to your
initial contribution and any subsequent contributions to the Protected Benefit
account variable investment options, either directly or through a Special DCA
program; plus any amounts contributed to a Special DCA program that are
designated for future transfers to the Protected Benefit account variable
investment options; plus any amounts transferred to the Protected Benefit
account variable investment options; less a deduction that reflects any "Excess
withdrawal" amounts (plus any applicable withdrawal charges); plus any
"Deferral Roll-up amount" or "Annual Roll-up amount" minus a deduction that
reflects any withdrawals up to the Annual withdrawal amount.
SAI -- Statement of Additional Information
SEC -- Securities and Exchange Commission
SEP IRA -- A traditional IRA used as a funding vehicle for a simplified
employee pension plan established by the IRA owner's employer.
6
DEFINITIONS OF KEY TERMS
SPECIAL DCA PROGRAMS -- We use the term "Special DCA Programs" to collectively
refer to our special dollar cost averaging program and special money market
dollar cost averaging program.
.. SPECIAL DOLLAR COST AVERAGING -- Our "Special dollar cost averaging
program" allows for systematic transfers of amounts in the account for
special dollar cost averaging into the Protected Benefit account variable
investment options, the Investment account variable investment options and
the Guaranteed interest option. The account for special dollar cost
averaging is part of our general account.
.. SPECIAL MONEY MARKET DOLLAR COST AVERAGING -- Our "Special money market
dollar cost averaging program" allows for systematic transfers of amounts
in the account for special money market dollar cost averaging into the
Protected Benefit account variable investment options, the Investment
account variable investment options and the Guaranteed interest option.
SYSTEMATIC TRANSFER PROGRAM -- Our "Systematic transfer program" is a program
that allows you to have amounts in the Investment account variable investment
options and the Guaranteed interest option automatically transferred to your
Protected Benefit account variable investment options.
TOTAL ACCOUNT VALUE -- Your "Total account value" is the total of (i) your
Protected Benefit account value and (ii) your Investment account value.
We sometimes use different words than in the contract or supplemental
materials. This is illustrated below. Although we use different words, they
have the same meaning in this Prospectus as in the contract or supplemental
materials. Your financial professional can provide further explanation about
your contract or supplemental materials.
-----------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
-----------------------------------------------------------------------------
Total account value Annuity Account Value
Unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Protected Benefit account variable Protected Benefit account
investment options and contributions
to a Special DCA program designated
for future transfers to the Protected
Benefit account variable investment
options
Investment account variable Investment account
investment options, the guaranteed
interest option and contributions to
a Special DCA program designated for
future transfers to the Investment
account variable investment options
Credit (for Series CP(R) contracts) Match
-----------------------------------------------------------------------------
7
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
$588.7 billion in assets as of December 31, 2016. For more than 150 years AXA
Equitable has been among the largest insurance companies in the United States.
We are licensed to sell life insurance and annuities in all fifty states, the
District of Columbia, Puerto Rico, and the U.S. Virgin Islands. Our home office
is located at 1290 Avenue of the Americas, New York, NY 10104.
8
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:
.. written confirmation of financial transactions and certain non-financial
transactions;
.. statement of your contract values at the close of each calendar year, and
any calendar quarter in which there was a financial transaction; and
.. annual statement of your contract values as of the close of the contract
year.
--------------------------------------------------------------------------------
ONLINE ACCOUNT ACCESS SYSTEM:
Online Account Access is designed to provide information about your contract
through the Internet. You can obtain information on:
.. your current Total account value, Protected Benefit account value, and
Investment account value;
.. your current allocation percentages;
.. the number of units you have in the variable investment options;
.. the daily unit values for the variable investment options; and
.. performance information regarding the variable investment options.
You can also:
.. change your allocation percentages and/or transfer among the investment
options subject to certain restrictions;
.. elect to receive certain contract statements electronically;
.. enroll in, modify or cancel a rebalancing program of your Investment
account value;
.. request a quote of your Annual withdrawal amount;
.. change your address;
.. change your Online Account Access password; and
.. access Frequently Asked Questions and Service Forms.
Online Account Access is normally available seven days a week, 24 hours a day.
You may access Online Account Access by visiting our website at www.axa.com. Of
course, for reasons beyond our control, this service 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 this service if we determine that you
engaged in a disruptive transfer activity, such as "market timing." See
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus for more information.
--------------------------------------------------------------------------------
CUSTOMER SERVICE REPRESENTATIVE:
You may also use our toll-free number (1-800-789-7771) to speak with one of our
customer service representatives. Our customer service representatives are
available on the following business days:
.. Monday through Thursday from 8:30 a.m. until 7:00 p.m., Eastern time.
.. Friday from 8:30 a.m. until 5:30 p.m., Eastern time.
9
WHO IS AXA EQUITABLE?
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1)authorization for telephone transfers by your financial professional;
(2)conversion of a traditional IRA to a Roth IRA contract;
(3)election of the automatic investment program;
(4)tax withholding elections (see withdrawal request form);
(5)election of the Beneficiary continuation option;
(6)IRA contribution recharacterizations;
(7)Section 1035 exchanges;
(8)direct transfers and specified direct rollovers;
(9)exercise of the GMIB or election of an annuity payout option;
(10)requests to reset your GMIB benefit base and your Roll-up to age 80 benefit
base (used to calculate the "Greater of" death benefit) by electing one of
the following: one-time reset option, automatic annual reset program or
automatic customized reset program;
(11)death claims;
(12)change in ownership (NQ only, if available under your contract);
(13)purchase by, or change of ownership to, a non-natural owner;
(14)requests for enrollment in either our Maximum payment plan or Customized
payment plan under the Guaranteed minimum income benefit;
(15)requests to drop or change your Guaranteed benefits;
(16)requests to collaterally assign your NQ contract;
(17)requests to transfer, re-allocate, rebalance, make subsequent contributions
and change your future allocations (except that certain transactions may be
permitted through the Online Account Access system);
(18)requests to enroll in or cancel the Systematic transfer program;
(19)transfers into and among investment options; and
(20)withdrawal requests.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES
OF REQUESTS:
(1)beneficiary changes;
(2)contract surrender;
(3)general dollar cost averaging;
(4)special dollar cost averaging (if available);
(5)special money market dollar cost averaging (if available); and
(6)Investment simplifier.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1)automatic investment program;
(2)general dollar cost averaging (including the fixed dollar and interest sweep
options);
(3)special dollar cost averaging (if available);
(4)special money market dollar cost averaging (if available);
(5)substantially equal withdrawals;
(6)systematic withdrawals;
(7)the date annuity payments are to begin; and
(8)RMD payments from inherited IRAs.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION AT
LEAST 30 CALENDAR DAYS PRIOR TO YOUR CONTRACT DATE ANNIVERSARY:
(1)automatic annual reset program; and
(2)automatic customized reset program.
-------------------
You must sign and date all these requests. Any written request that is not on
one of our forms must include your name and your contract number along with
adequate details about the notice you wish to give or the action you wish us to
take. We reserve the right to add, remove or change our administrative forms,
procedures and programs at any time.
SIGNATURES:
The proper person to sign forms, notices and requests is normally the owner. If
there are joint owners, both must sign.
10
WHO IS AXA EQUITABLE?
Retirement Cornerstone(R) Series at a glance -- key features
--------------------------------------------------------------------------------
TWO CONTRACT SERIES This Prospectus describes two series of the Retirement
Cornerstone(R) contract -- Series B and Series CP(R)
(together "the Retirement Cornerstone(R) Series"). Each
series provides for the accumulation of retirement savings
and income, offers income and death benefit protection, and
offers various payout options. Also, each series offers the
Guaranteed minimum income benefit and Guaranteed minimum
death benefits.
Each series provides a different schedule of expenses and
withdrawal charge periods. While certain series have no or
short surrender charge periods, these series typically have
higher separate account expenses. You should consider the
cumulative impact of these higher expenses over time when
deciding which series to purchase. For details, please see
the summary of the contract features below, the "Fee table"
and "Charges and expenses" later in this Prospectus.
Additionally, certain optional features may not be
exercised until after waiting periods that extends beyond
the applicable surrender charge period. So while you may
prefer the flexibility of a shorter surrender charge
period, you should consider this important fact if electing
an optional feature.
Each series is subject to different contribution rules,
which are described in "Contribution amounts" later in this
section and in "Rules regarding contributions to your
contract" in "Appendix VIII" later in this Prospectus.
The chart below shows the availability of certain key
features under each series of the contract.
SERIES B SERIES CP(R)
-------------------------------------------------------------------
Special dollar cost averaging Yes No
-------------------------------------------------------------------
Special money market dollar cost averaging No Yes
-------------------------------------------------------------------
Credits No Yes
Throughout the Prospectus, any differences among the
contract series are identified.
You should work with your financial professional to decide
which series 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. Not all series may be
available through your financial professional.
----------------------------------------------------------------------------------------
PROFESSIONAL INVESTMENT The Retirement Cornerstone(R) Series' variable investment
MANAGEMENT options invest in different Portfolios managed by
professional investment advisers.
----------------------------------------------------------------------------------------
GUARANTEED INTEREST OPTION . Principal and interest guarantees.
. Interest rates set periodically.
----------------------------------------------------------------------------------------
TAX ADVANTAGES . No tax on earnings inside the contract until you make
withdrawals from your contract or receive annuity
payments.
------------------------------------------------------------
. No tax on transfers among investment options inside the
contract.
------------------------------------------------------------
If you are purchasing or contributing to an annuity
contract which is an Individual Retirement Annuity (IRA),
or to fund an employer retirement plan (QP or Qualified
Plan), you should be aware that such annuities do not
provide tax deferral benefits beyond those already provided
by the Internal Revenue Code for these types of
arrangements. Before purchasing or contributing to one of
the contracts, you should consider whether its features and
benefits beyond tax deferral meet your needs and goals. You
may also want to consider the relative features, benefits
and costs of these annuities compared with any other
investment that you may use in connection with your
retirement plan or arrangement. Depending on your personal
situation, the contract's Guaranteed benefits (other than
the RMD Wealth Guard death benefit) may have limited
usefulness because of required minimum distributions
("RMDs").
----------------------------------------------------------------------------------------
GUARANTEED MINIMUM The GMIB guarantees, subject to certain restrictions,
INCOME BENEFIT ("GMIB") annual lifetime payments ("Lifetime GMIB payments"), which
will begin at the earliest of: (i) the next contract year
following the date your Protected Benefit account value
falls to zero, provided the no lapse guarantee is in
effect; (ii) the contract date anniversary following your
95th birthday; and (iii) your election to exercise the
GMIB. Lifetime GMIB payments can be on a single or joint
life basis.
Your ability to exercise the GMIB is subject to a waiting
period which begins on the date you first fund your
Protected Benefit account. The waiting period ranges from
10-15 years. If you reset your GMIB benefit base, a new
waiting period to exercise the GMIB may apply from the date
of the reset. See "Exercise rules" in "Contract features
and benefits" for complete details.
YOUR LIFETIME GMIB PAYMENTS ARE CALCULATED BY APPLYING A
PERCENTAGE TO YOUR GMIB BENEFIT BASE. YOUR GMIB BENEFIT
BASE IS TIED TO AMOUNTS YOU ALLOCATE TO YOUR PROTECTED
BENEFIT ACCOUNT. THE INVESTMENT OPTIONS AVAILABLE TO FUND
YOUR PROTECTED BENEFIT ACCOUNT ARE LIMITED. SEE "GMIB
BENEFIT BASE" IN "CONTRACT FEATURES AND BENEFITS" LATER IN
THIS PROSPECTUS.
----------------------------------------------------------------------------------------
11
RETIREMENT CORNERSTONE(R) SERIES AT A GLANCE -- KEY FEATURES
-------------------------------------------------------------------------------------------
GUARANTEED MINIMUM AN EXCESS WITHDRAWAL THAT REDUCES YOUR PROTECTED BENEFIT
INCOME BENEFIT ("GMIB") ACCOUNT VALUE TO ZERO WILL CAUSE YOUR GMIB TO TERMINATE.
(CONTINUED) EVEN IF AN EXCESS WITHDRAWAL DOES NOT CAUSE YOUR GMIB TO
TERMINATE, IT CAN GREATLY REDUCE YOUR GMIB BENEFIT BASE AND
THE VALUE OF YOUR BENEFIT. Beginning in the contract year
that follows the contract year in which you fund your
Protected Benefit account, and prior to the beginning of
your Lifetime GMIB payments, you can take your Annual
withdrawal amount without reducing your GMIB benefit base.
See "Guaranteed minimum income benefit" and "Annual
withdrawal amount" under "Guaranteed minimum income
benefit" in "Contract features and benefits" later in this
Prospectus. ANY AMOUNTS YOU WISH TO BE CREDITED TOWARD YOUR
GMIB MUST BE ALLOCATED TO THE PROTECTED BENEFIT ACCOUNT.
The Guaranteed benefits under the contract are supported by
AXA Equitable's general account and are subject to AXA
Equitable's claims paying ability. Contract owners should
look to the financial strength of AXA Equitable for its
claims paying ability.
-------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH . Return of Principal death benefit
BENEFITS ("GMDBS") . Highest Anniversary Value death benefit
. RMD Wealth Guard death benefit
. "Greater of" death benefit
ANY AMOUNTS YOU WISH TO BE CREDITED TOWARD YOUR GMDB MUST
BE ALLOCATED TO THE PROTECTED BENEFIT ACCOUNT.
The Return of Principal death benefit, Highest Anniversary
Value death benefit, and the "Greater of" death benefit are
available in combination with the GMIB. The Return of
Principal death benefit, the RMD Wealth Guard death
benefit, and the Highest Anniversary Value death benefit
are available without the GMIB. However, the "Greater of"
death benefit can only be selected in combination with the
GMIB. If you do not select either the Highest Anniversary
Value death benefit, the "Greater of" death benefit, or the
RMD Wealth Guard death benefit, the Return of Principal
death benefit will automatically be issued with all
eligible contracts. Eligible contracts are those that meet
the owner and annuitant issue age requirements described
under "Rules regarding contributions to your contract" in
"Appendix VIII".
The Return of Principal death benefit, like all of the
guaranteed minimum death benefits, only applies to amounts
you allocate to the Protected Benefit account variable
investment options and not to the contract as a whole.
The RMD Wealth Guard death benefit cannot be elected in
combination with the GMIB.
An Excess RMD withdrawal will reduce your RMD Wealth Guard
death benefit base on a pro rata basis. A pro rata
reduction to your RMD Wealth Guard death benefit base could
be greater than the dollar amount of the withdrawal and
could significantly reduce or eliminate the value of your
RMD Wealth Guard death benefit.
The Guaranteed benefits under the contract are supported by
AXA Equitable's general account and are subject to AXA
Equitable's claims paying ability. Contract owners should
look to the financial strength of AXA Equitable for its
claims paying ability.
-------------------------------------------------------------------------------------------
INVESTMENT ACCOUNT DEATH The death benefit in connection with your Investment
BENEFIT account is equal to the return of your account value as of
the day we receive satisfactory proof of the owner's (or
older joint owner's, if applicable) death, any required
instructions for method of payment, and any required
information and forms necessary to effect payment.
-------------------------------------------------------------------------------------------
DROPPING OR CHANGING YOUR You have the option to drop or change your Guaranteed
GUARANTEED BENEFITS benefits subject to our rules. IN SOME CASES, YOU MAY HAVE
TO WAIT A SPECIFIED TIME PERIOD IN ORDER TO DROP YOUR
BENEFITS. Please see "Dropping or changing your Guaranteed
benefits" in "Contract features and benefits," as well as
Appendix I, for more information.
-------------------------------------------------------------------------------------------
CREDIT AND EARNINGS BONUS You allocate your contributions among the available
(SERIES CP(R) CONTRACTS ONLY) investment options. We allocate a Credit to the
corresponding investment options at the same time. The
Credit will apply to subsequent contribution amounts only
to the extent that those amounts exceed total withdrawals
from the contract. The amount of Credit is 3% of each
contribution. The Credit is subject to recovery by us in
certain limited circumstances.
An amount equal to 5% of your annual investment gains will
be added to your Total account value on each contract date
anniversary. This amount is the Earnings bonus. We do not
recover amounts associated with the Earnings bonus on
investment gains. Please see "Credits and Earnings bonus"
in "Contract features and benefits" for more information.
-------------------------------------------------------------------------------------------
12
RETIREMENT CORNERSTONE(R) SERIES AT A GLANCE -- KEY FEATURES
----------------------------------------------------------------------------------
CONTRIBUTION AMOUNTS The chart below shows the minimum initial and, in
parenthesis, subsequent contribution amounts under the
contracts. Please see "How you can purchase and contribute
to your contract" in "Contract features and benefits",
"Simplified Employee Pension Plans (SEP Plans)" in "Tax
information" and "Rules regarding contributions to your
contract" in "Appendix VIII" for more information,
including important limitations on contributions.
SERIES B SERIES CP(R)
----------------------------------------------------------------------------------------------------------------
NQ $5,000($500)/(1)/ $10,000($500)/(1)/
----------------------------------------------------------------------------------------------------------------
Traditional or Roth IRA $5,000($50)/(1)/ $10,000($50)/(1)/
----------------------------------------------------------------------------------------------------------------
Inherited IRA Beneficiary continuation contract (traditional IRA or Roth $5,000($1,000) n/a
IRA) ("Inherited IRA")
----------------------------------------------------------------------------------------------------------------
QP $5,000($500) $10,000($500)
----------------------------------------------------------------------------------------------------------------
SEP IRA $5,000($500)/(1)/ $10,000($500)/(1)/
----------------------------------------------------------------------------------------------------------------
/(1)/$100 monthly and $300 quarterly under our automatic
investment program.
. Maximum contribution limitations apply to all
contracts. For more information, please see "How you
can purchase and contribute to your contract" in
"Contract features and benefits" later in this
Prospectus.
------------------------------------------------------------
Upon advance notice to you, we may exercise certain rights
we have under the contract regarding contributions,
including our rights to: (i) change minimum and maximum
contribution requirements and limitations, and (ii)
discontinue acceptance of contributions. Further, we may at
any time exercise our rights to limit or terminate your
contributions and transfers to any of the variable
investment options (including the Protected Benefit account
variable investment options) and to limit the number of
variable investment options which you may select.
----------------------------------------------------------------------------------
ACCOUNT TYPES You may allocate your contributions to the Investment
account, or, if you are eligible to have one or more
Guaranteed benefits and you wish to fund them, you may
allocate your contributions to the Protected Benefit
account. The Investment account offers more than 112
investment options and is designed to meet the asset
allocation and accumulation needs of a many types of
investors. The Protected Benefit account offers a limited
selection of core investment options that work in
conjunction with the optional Guaranteed benefits. You
should be aware that we select investment options for the
Protected Benefit account that generally offer lower
volatility in order to reduce our downside exposure in
providing the Guaranteed benefits. In rising market
conditions, this strategy may also result in periods of
underperformance.
INVESTMENT ACCOUNT
. Investment account variable investment options
. Guaranteed interest option
. Amounts in a Special DCA program designated for future
transfers to Investment account variable investment
options or the guaranteed interest option
PROTECTED BENEFIT ACCOUNT
. Protected Benefit account variable investment options
. Amounts in a Special DCA program designated for future
transfers to Protected Benefit account variable
investment options
----------------------------------------------------------------------------------
ACCESS TO YOUR MONEY . Partial withdrawals
. Several options for withdrawals on a periodic basis
. Contract surrender
. Various options for required minimum distributions
. Maximum payment plan (only under contracts with GMIB)
. Customized payment plan (only under contracts with GMIB)
Any income you receive may be subject to tax; also may be
subject to an additional 10% income tax penalty unless you
are age 59 1/2 or another exception applies. Also, certain
withdrawals will diminish the value of any Guaranteed
benefits you have funded. Withdrawal charges may also apply.
----------------------------------------------------------------------------------
PAYOUT OPTIONS . Fixed annuity payout options
. Other payout options through other contracts
----------------------------------------------------------------------------------
13
RETIREMENT CORNERSTONE(R) SERIES AT A GLANCE -- KEY FEATURES
---------------------------------------------------------------------------------------
ADDITIONAL FEATURES . Dollar cost averaging programs
. Automatic investment program
. Optional rebalancing (for amounts in the Investment
account variable investment options and guaranteed
interest option)
. Systematic transfer program (four options for transfers
from the Investment account to the Protected Benefit
account)
. Transfers among investment options at no charge
(subject to limitations)
. Waiver of withdrawal charge for certain withdrawals,
disability, terminal illness, or confinement to a
nursing home
. Option to drop or change your Guaranteed benefits after
issue, subject to our rules. Please see "Dropping or
changing your Guaranteed benefits" in "Contract
features and benefits," as well as Appendix I, for more
information.
. Spousal continuation
. Beneficiary continuation option
. Annual resets of your GMIB benefit base and Roll-up to
age 80 benefit base (used to calculate your "Greater
of" death benefit)
---------------------------------------------------------------------------------------
FEES AND CHARGES Please see "Fee table" later in this section for complete
details.
---------------------------------------------------------------------------------------
OWNER AND ANNUITANT ISSUE Please see "Rules regarding contributions to your contract"
AGES in "Appendix VIII" for owner and annuitant issue ages
applicable to your contract.
---------------------------------------------------------------------------------------
CONTRACT TERMINATION YOUR CONTRACT MAY TERMINATE WITHOUT VALUE IF YOUR TOTAL
ACCOUNT VALUE FALLS TO ZERO AS A RESULT OF EXCESS
WITHDRAWALS, OR THE PAYMENT OF ANY APPLICABLE CHARGES WHEN
DUE, OR A COMBINATION OF THE TWO. Please see "Effect of
your account values falling to zero" in "Determining your
contract's value" later in this Prospectus for more
information.
---------------------------------------------------------------------------------------
YOUR RIGHT TO CANCEL To exercise your cancellation right under the contract, you
must notify us with a signed letter of instruction electing
this right, to our processing office within 10 days after
you receive your contract. If state law requires, this
"free look" period may be longer. See "Your right to cancel
within a certain number of days" in "Contract features and
benefits" later in this Prospectus for more information.
---------------------------------------------------------------------------------------
GUARANTEED BENEFIT OFFERS From time to time, we may offer you some form of payment or
incentive in return for terminating or modifying certain
guaranteed benefits. See "Guaranteed benefit offers" in
"Contract features and benefits" for more information.
---------------------------------------------------------------------------------------
THE TABLE ABOVE SUMMARIZES ONLY CERTAIN CURRENT KEY FEATURES AND BENEFITS OF
THE CONTRACT. THE TABLE ALSO SUMMARIZES CERTAIN CURRENT LIMITATIONS,
RESTRICTIONS AND EXCEPTIONS TO THOSE FEATURES AND BENEFITS THAT WE HAVE THE
RIGHT TO IMPOSE UNDER THE CONTRACT AND THAT ARE SUBJECT TO CHANGE IN THE
FUTURE. IN SOME CASES, OTHER LIMITATIONS, RESTRICTIONS AND EXCEPTIONS MAY
APPLY. THE CONTRACT MAY NOT CURRENTLY BE AVAILABLE IN ALL STATES. CERTAIN
FEATURES AND BENEFITS DESCRIBED IN THIS PROSPECTUS MAY VARY IN YOUR STATE; ALL
FEATURES AND BENEFITS MAY NOT BE AVAILABLE IN ALL CONTRACTS, IN ALL STATES OR
FROM ALL SELLING BROKER-DEALERS. YOU MAY CONTACT US TO PURCHASE ANY VERSION OF
THE CONTRACT IF A VERSION IS NOT OFFERED BY THE SELLING BROKER-DEALER. FOR A
STATE-BY-STATE DESCRIPTION OF ALL MATERIAL VARIATIONS OF THIS CONTRACT, SEE
APPENDIX V LATER IN THIS PROSPECTUS.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. This Prospectus is a disclosure document
and describes all of the contract's material features, benefits, rights and
obligations, as well as other information. The Prospectus should be read
carefully before investing. Please feel free to speak with your financial
professional, or call us, if you have any questions.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, and have fees and charges, that are
different from those in the contracts offered by this Prospectus. Not every
contract we issue, including some described in this Prospectus, is offered
through every selling broker-dealer. Some selling broker-dealers may not offer
and/or limit the offering of certain features or options, as well as limit the
availability of the contracts, based on issue age or other criteria established
by the selling broker-dealer. Upon request, your financial professional can
show you information regarding other AXA Equitable annuity contracts that he or
she distributes. You can also contact us to find out more about the
availability of any of the AXA Equitable annuity contracts.
You should work with your financial professional to decide whether one or more
optional benefits are appropriate for you based on a thorough analysis of your
particular insurance needs, financial objectives, investment goals, time
horizons and risk tolerance.
14
RETIREMENT CORNERSTONE(R) SERIES AT A GLANCE -- KEY FEATURES
Fee table
--------------------------------------------------------------------------------
The following tables describe the fees and expenses that you will pay when
buying, owning and surrendering the contract. Each of the charges and expenses
is more fully described in "Charges and expenses" later in this Prospectus.
The first table describes fees and expenses that you will pay at the time that
you surrender the contract or if you make certain withdrawals, transfers or
request special services. Charges designed to approximate certain taxes that
may be imposed on us, such as premium taxes in your state, may also apply./(1)/
------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE AT THE TIME YOU REQUEST CERTAIN
TRANSACTIONS
------------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions
withdrawn (deducted if you surrender your contract or make
certain withdrawals or apply your cash value to certain SERIES B SERIES CP(R)
payout options)./(2)/ 7.00% 8.00%/(9)/
Charge for each additional transfer in excess of 12 Maximum Charge: $35
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
.. Duplicate contract charge Current and Maximum Charge: $35/(6)/
.. Check preparation charge/(5)/ Maximum Charge: $85
.. Charge for third party transfer or exchange/(5)/ Current Charge: $0
Maximum Charge: $125
Current Charge: $65/(6)/
--------------------------------------------------------------------------------------------------------
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
--------------------------------------------------------------------------
Maximum annual administrative charge/(7)/
If your account value on a contract date anniversary is $30
less than $50,000/(8)/
If your account value on a contract date anniversary is $0
$50,000 or more
-------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR VARIABLE INVESTMENT OPTIONS EXPRESSED
AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
-------------------------------------------------------------------------
SEPARATE ACCOUNT ANNUAL EXPENSES:/(9)/ SERIES B SERIES CP(R)
-------- ---------
Operations 0.80% 1.05%
Administration 0.30% 0.35%
Distribution 0.20% 0.25%
----- -----
Total separate account annual expenses ("Contract fee") 1.30% 1.65%
------------------------------------------------------------------------------------------------
CHARGES WE DEDUCT FROM YOUR ACCOUNT VALUE EACH YEAR IF YOU FUND ANY OF THE FOLLOWING
OPTIONAL BENEFITS
------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT CHARGE (Calculated as a
percentage of the applicable benefit base./(10) /Deducted
annually/(11) /on each contract date anniversary for which
the benefit is in effect.)
Return of Principal death benefit No Additional Charge
Highest Anniversary Value death benefit 0.35% (current and maximum)
------------------------------------------------------------------------------------------------
RMD Wealth Guard death benefit
Maximum Charge: 1.20% (for issue ages 20-64)
2.00% (for issue ages 65-68)
Current Charge/(12)/: 0.60% (for issue ages 20-64)
1.00% (for issue ages 65-68)
------------------------------------------------------------------------------------------------
"Greater of" death benefit
Maximum Charge: 2.30%
Current Charge/(13)/: [1.15]%
------------------------------------------------------------------------------------------------
15
FEE TABLE
GUARANTEED MINIMUM INCOME BENEFIT CHARGE (Calculated as a
percentage of the GMIB benefit base/(10)/. Deducted
annually/(11)/ on each contract date anniversary for which
the benefit is in effect.)
Maximum Charge: 2.30%
Current Charge/(13)/: [1.15]%
------------------------------------------------------------------------------
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
-----------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2016 (expenses that are deducted from Lowest Highest
Portfolio assets including management fees, 12b-1 fees, service fees, and/or other expenses)/(*)/ 0.61% 2.57%
-----------------------------------------------------------------------------------------------------------------
Notes:
(*)"Total Annual Portfolio Operating Expenses" are based, in part, on estimated
amounts of such expenses. 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, 2018 ("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, 2018.
The range of expenses in the table above does not include the effect of any
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.
----------------------------------------------------------------------------------------------------------------------------
PORTFOLIO OPERATING EXPENSES EXPRESSED AS AN ANNUAL PERCENTAGE OF DAILY NET ASSETS
----------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2016 after the effect of Expense Limitation Arrangements/(14)/ Lowest Highest
0.61% 1.62%
----------------------------------------------------------------------------------------------------------------------------
For complete information regarding the Expense Limitation Arrangements see
the prospectuses for the underlying Portfolios.
(1)The current tax charge that might be imposed varies by jurisdiction and
currently ranges from 0% to 3.5%.
(2)Deducted upon a withdrawal of amounts in excess of the free withdrawal
amount, if applicable:
The withdrawal charge percentage we use is determined by the contract year
in which you make the withdrawal, surrender your contract to receive its
cash value, or, if offered, surrender your contract to apply your cash value
to a non-life contingent annuity payment option. For each contribution, we
consider the contract year in which we receive that contribution to be
"contract year 1").
Contract Year Series B Series CP(R)
------------- -------- ------------
1......... 7.00% 8.00%
2......... 7.00% 8.00%
3......... 6.00% 7.00%
4......... 6.00% 6.00%
5......... 5.00% 5.00%
6......... 3.00% 4.00%
7......... 1.00% 3.00%
8......... 0.00% 2.00%
9......... 0.00% 1.00%
10+....... 0.00% 0.00%
(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.
(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.
(7)If the contract is surrendered or annuitized or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro rata
portion of the administrative charge for that year.
(8)During the first two contract years this charge, if applicable, is equal to
the lesser of $30 or 2% of your Total account value. Thereafter, the charge,
if applicable, is $30 for each contract year.
(9)In connection with the separate account annual expenses, these charges
compensate us for certain risks we assume and expenses we incur under the
contract. We expect to make a profit from these charges. For Series CP(R)
contracts, both the contract fee and the withdrawal charge compensate us for
the expense associated with the Credit.
(10)The benefit base is not an account value or cash value. Your initial
benefit base is equal to your initial contribution or transfer to the
Protected Benefit account variable investment options and amounts in a
Special DCA program designated for transfers to the Protected Benefit
account variable investment options. For Series CP(R) contracts, your
16
FEE TABLE
initial benefit base does not include the Credit. Subsequent adjustments to
the applicable benefit base and the investment performance of the Protected
Benefit account may result in a "benefit base" that is significantly
different from your total contributions or future transfers to, or account
value in, the Protected Benefit account. See "Guaranteed minimum death
benefits" and "Guaranteed minimum income benefit" in "Contract features and
benefits" later in this Prospectus.
(11)If the contract is surrendered or annuitized, or a death benefit is paid,
or the benefit is dropped (if applicable), on any date other than the
contract date anniversary, we will deduct a pro rata portion of the charge
for that year.
(12)We reserve the right to increase or decrease this charge any time after
your second contract date anniversary. See "RMD Wealth Guard death benefit
charge" in "Charges and expenses" later in this Prospectus.
(13)We reserve the right to increase or decrease this charge any time after
your second contract date anniversary. See "Guaranteed minimum income
benefit charge" and "Greater of death benefit" in "Charges and expenses"
later in this Prospectus.
(14)"Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts of such expenses.
EXAMPLES
These examples are intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include contract owner transaction expenses, contract fees, separate
account annual expenses, and underlying trust fees and expenses (including the
underlying portfolio fees and expenses). These examples do not reflect charges
for any special service you may request.
The first example below shows the expenses that a hypothetical contract owner
(who has elected the "Greater of" death benefit with the Guaranteed minimum
income benefit) would pay in the situations illustrated. These examples use an
estimated average annual administrative charge based on anticipated sales and
contract sizes, which results in an estimated annual administrative charge
calculated as a percentage of contract value, as follows: Series B: 0.010% and
Series CP(R): 0.010%. As discussed immediately below, the example further
assumes the highest minimum Deferral Roll-up rate of 8% is applied to the GMIB
benefit base and Annual Roll-up to age 80 benefit base annually. The example
assumes the maximum charges that would apply based on a 5% return for the
"Greater of" death benefit and Guaranteed minimum income benefit, both of which
are calculated as a percentage of each Guaranteed benefit's benefit base. The
example also assumes there has not been a withdrawal from the Protected Benefit
account.
In this example, we assume the highest minimum Deferral Roll-up rate of 8% that
can be applied to the GMIB and Roll-up to age 80 benefit bases. We do this
because this will result in the highest minimum GMIB benefit base and "Greater
of" death benefit base. Since the charges for the GMIB and "Greater of" death
benefit are calculated as a percentage of their applicable benefit bases, the
examples show the maximum charges under these assumptions. We reserve the right
to declare a Deferral Roll-up rate in excess of 8%. A higher Deferral Roll-up
rate could result in a higher GMIB benefit base and "Greater of" death benefit
base. However, since we cannot predict how high your Deferral Roll-up rate
might be, we have based the example on a Deferral Roll-up rate of 8%, which is
the highest rate available under the Deferral Ten-Year Treasuries Formula Rate.
See "Deferral Roll-up rate" under "Guaranteed minimum income benefit" in
"Contract features and benefits."
Amounts allocated to the Special DCA programs (as available) are not covered by
these examples. The annual administrative charge and any applicable withdrawal
charge do apply to amounts allocated to the Special DCA programs.
The example assumes that you invest $10,000 in the Protected Benefit account
variable investment options for the time periods indicated, and that your
investment has a 5% return each year. The example for Series CP(R) contracts
assumes that a 3% Credit was applied to your contribution. Other than the
annual administrative charge and the charges for the Guaranteed benefits (which
are described immediately above), the example also assumes separate account
annual expenses and that amounts are allocated to the Protected Benefit account
variable investment options that invest in Portfolios with (a) the maximum fees
and expenses, and (b) the minimum fees and expenses (before expense
limitations). Each example should not be considered a representation of past or
future expenses for each option. Actual expenses may be greater or less than
those shown. Similarly, the annual rate of return assumed in each example is
not an estimate or guarantee of future investment performance. Although your
actual costs may be higher or lower, based on these assumptions your costs
would be:
SERIES B
----------------------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE
END OF THE APPLICABLE TIME PERIOD END OF THE 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
Protected Benefit account
investment options $1,291 $2,713 $4,540 $9,524 $591 $2,113 $4,040 $9,524
----------------------------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Protected Benefit account
investment options $1,192 $2,427 $4,091 $8,811 $492 $1,827 $3,591 $8,811
----------------------------------------------------------------------------------------------------------------------
SERIES CP(R)
----------------------------------------------------------------------------------------------------------------------
IF YOU SURRENDER YOUR CONTRACT AT THE IF YOU DO NOT SURRENDER YOUR CONTRACT AT THE
END OF THE APPLICABLE TIME PERIOD END OF THE 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
Protected Benefit account
investment options $1,439 $2,952 $4,760 $9,889 $639 $2,252 $4,260 $9,889
----------------------------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Protected Benefit account
investment options $1,337 $2,660 $4,304 $9,179 $537 $1,960 $3,804 $9,179
----------------------------------------------------------------------------------------------------------------------
17
FEE TABLE
The next example shows the expenses that a hypothetical contract owner who has
opted out of all optional benefits that have fees associated with them would
pay in the situations illustrated. These examples use an estimated average
annual administrative charge based on anticipated sales and contract sizes,
which results in an estimated annual administrative charge calculated as a
percentage of contract value, as follows: Series B: 0.010% and Series CP(R):
0.010%.
The example assumes amounts are allocated to the most expensive and least
expensive Portfolio. Amounts allocated to the guaranteed interest option and
the Special DCA programs (as available) are not covered by these examples. The
annual administrative charge and any applicable withdrawal charge do apply to
amounts allocated to the guaranteed interest option and the Special DCA
programs.
The example assumes that you invest $10,000 in the Investment account variable
investment options for the time periods indicated, and that your investment has
a 5% return each year. The example for Series CP(R) contracts assumes that a 3%
Credit was applied to your contribution. Other than the annual administrative
charge (which is described immediately above), the example also assumes maximum
contract charges and total annual expenses of the Portfolios (before expense
limitations) invested in by the Investment account variable investment options
set forth in the previous charts. Each example should not be considered a
representation of past or future expenses for each option. Actual expenses may
be greater or less than those shown. Similarly, the annual rate of return
assumed in each example is not an estimate or guarantee of future investment
performance. Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
SERIES B
---------------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR
IF YOU SURRENDER YOUR CONTRACT AT THE CONTRACT AT THE END OF 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 $1,107 $1,833 $2,575 $4,248 $407 $1,233 $2,075 $4,248
---------------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Portfolios $ 902 $1,223 $1,570 $2,309 $202 $ 623 $1,070 $2,309
---------------------------------------------------------------------------------------------------------
SERIES CP(R)
---------------------------------------------------------------------------------------------------------
IF YOU DO NOT SURRENDER YOUR
IF YOU SURRENDER YOUR CONTRACT AT THE CONTRACT AT THE END OF 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 $1,257 $2,080 $2,813 $4,691 $457 $1,380 $2,313 $4,691
---------------------------------------------------------------------------------------------------------
(b)assuming minimum fees and
expenses of any of the
Portfolios $1,045 $1,456 $1,793 $2,765 $245 $ 756 $1,293 $2,765
---------------------------------------------------------------------------------------------------------
For information on how your contract works under certain hypothetical
circumstances, please see Appendix IV at the end of this Prospectus.
CONDENSED FINANCIAL INFORMATION
Please see Appendix IX at the end of this Prospectus 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, 2016.
18
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 an application from you or any
contribution from you at any time, including after you purchase the contract.
We require a minimum contribution amount for each type of contract purchased.
Maximum contribution limitations also apply. The tables in Appendix VIII later
in this Prospectus, summarize our current rules regarding contributions to your
contract, which are subject to change. Both the owner and annuitant named in
the contract must meet the issue age requirements shown in the table, and
contributions are based on the age of the older of the original owner and
annuitant.
--------------------------------------------------------------------------------
WE RESERVE THE RIGHT TO CHANGE OUR CURRENT LIMITATIONS ON YOUR CONTRIBUTIONS
AND TO DISCONTINUE ACCEPTANCE OF CONTRIBUTIONS.
--------------------------------------------------------------------------------
We currently do not accept any contribution to your contract if: (i) the sum of
all contributions under all Accumulator(R) Series and Retirement Cornerstone(R)
Series contracts with the same owner or annuitant would then total more than
$1,500,000, or (ii) the aggregate contributions under all AXA Equitable annuity
accumulation contracts with the same owner or annuitant would then total more
than $2,500,000. We may waive these and other contribution limitations based on
certain criteria that we determine, including Guaranteed benefits, issue age,
aggregate contributions, variable investment option allocations and selling
broker-dealer compensation. These and other contribution limitations may not be
applicable in your state. For a state-by-state description of all material
variations of the contracts, see Appendix V later in this Prospectus.
You may not contribute or transfer more than $1,500,000 to your Protected
Benefit account variable investment options and a Special DCA program with
amounts designated for the Protected Benefit account variable investment
options.
Once a withdrawal is taken from your Protected Benefit account, you cannot make
additional contributions to your Protected Benefit account, either directly or
through a new Special DCA program. You may, however, be able to continue to
make transfers from your Investment account to the Protected Benefit account
variable investment options until such time you make a subsequent contribution
to your Investment account. Scheduled transfers from an existing Special DCA
program will continue through to the program's conclusion.
We may accept less than the minimum initial contribution under a contract if an
aggregate amount of Retirement Cornerstone(R) Series contracts, respectively,
purchased at the same time by an individual (including spouse) meet the minimum.
--------------------------------------------------------------------------------
THE "OWNER" IS THE PERSON WHO IS THE NAMED OWNER IN THE CONTRACT AND, IF AN
INDIVIDUAL, IS THE MEASURING LIFE FOR DETERMINING CONTRACT BENEFITS. THE
"ANNUITANT" IS THE PERSON WHO IS THE MEASURING LIFE FOR DETERMINING THE
CONTRACT'S MATURITY DATE. THE ANNUITANT IS NOT NECESSARILY THE CONTRACT OWNER.
WHERE THE OWNER OF A CONTRACT IS NON-NATURAL, THE ANNUITANT IS THE MEASURING
LIFE FOR DETERMINING CONTRACT BENEFITS.
--------------------------------------------------------------------------------
Upon advance notice to you, we may exercise certain rights we have under the
contract regarding contributions, including our rights to:
.. Change our contribution requirements and limitations and our transfer
rules, including to:
-- increase or decrease our minimum contribution requirements and increase
or decrease our maximum contribution limitations;
-- discontinue the acceptance of subsequent contributions to the contract;
-- discontinue the acceptance of subsequent contributions and/or transfers
into one or more of the variable investment options and/or guaranteed
interest option; and
-- discontinue the acceptance of subsequent contributions and/or transfers
into the Protected Benefit account variable investment options.
.. Default certain contributions and transfers designated for a Protected
Benefit account variable investment option(s) to the corresponding
Investment account variable investment option(s), which invests in the same
underlying Portfolio(s). See "Rebalancing among your Protected Benefit
account variable investment options" under "Allocating your contributions"
later in this section.
.. Further limit the number of variable investment options you may invest in
at any one time.
.. Limit or terminate new contributions or transfers to an investment option.
WE RESERVE THE RIGHT IN OUR SOLE DISCRETION TO DISCONTINUE THE ACCEPTANCE OF,
AND/OR PLACE LIMITATIONS ON CONTRIBUTIONS AND TRANSFERS INTO THE CONTRACT
AND/OR CERTAIN INVESTMENT OPTIONS. IF YOU HAVE ONE OR MORE GUARANTEED BENEFITS
AND WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS TO THE CONTRACT AND/OR CONTRIBUTIONS
AND/OR TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT
OPTIONS, YOU MAY NO LONGER BE ABLE TO FUND YOUR GUARANTEED BENEFIT(S). THIS
MEANS THAT IF YOU HAVE NOT YET ALLOCATED AMOUNTS TO THE PROTECTED BENEFIT
ACCOUNT VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO FUND YOUR
GUARANTEED BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY FUNDED YOUR
GUARANTEED BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTED BENEFIT ACCOUNT
VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTED BENEFIT ACCOUNT VALUE AND THE BENEFIT BASES ASSOCIATED WITH YOUR
GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS.
OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. Only natural
persons can be joint owners. This means that an entity such as a corporation
cannot be a joint owner. We also reserve the right to prohibit availability of
this contract to other non-natural owners.
19
CONTRACT FEATURES AND BENEFITS
For NQ contracts (with a single owner, joint owners, or a non-natural owner) we
permit the naming of joint annuitants only when the contract is purchased
through an exchange that is intended not to be taxable under Section 1035 of
the Internal Revenue Code and only where the joint annuitants are spouses.
Owners which are not individuals are required to document their status to avoid
30% FATCA withholding from U.S.-source income.
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. The determination of spousal status is made under
applicable state law. However, in the event of a conflict between federal and
state law, we follow federal rules. Certain same-sex civil union and domestic
partners may not be eligible for tax benefits under federal law and in some
circumstances will be required to take post-death distributions that dilute or
eliminate the value of the contractual benefit.
In general, we will not permit a contract to be owned by a minor unless it is
pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors
Act in your state.
Under QP contracts, the owner must be the qualified plan trust and the
annuitant must be a plan participant/employee. The term "QP contracts" used in
this Prospectus refers to QPDB and/or QPDC contracts. See Appendix II at the
end of this Prospectus for more information regarding QP contracts.
Certain benefits under your contract, as described in this Prospectus, are
based on the age of the owner. If the owner of the contract is not a natural
person, these benefits will be based on the age of the annuitant. Under QP
contracts, all benefits are based on the age of the annuitant. In this
Prospectus, when we use the terms OWNER and JOINT OWNER, we intend these to be
references to ANNUITANT and JOINT ANNUITANT, respectively, if the contract has
a non-natural owner. Unless otherwise stated, if the contract is jointly owned
or is issued to a non-natural owner, benefits are based on the age of the older
joint owner or older joint annuitant, as applicable.
PURCHASE CONSIDERATIONS FOR A CHARITABLE REMAINDER TRUST
(THIS SECTION ONLY APPLIES TO SERIES B.)
If you are purchasing the contract to fund a charitable remainder trust and
allocate any account value to the Protected Benefit account, you should
strongly consider "split-funding": that is, the trust holds investments in
addition to this Retirement Cornerstone(R) Series contract. Charitable
remainder trusts are required to make specific distributions. The charitable
remainder trust annual distribution requirement may be equal to a percentage of
the donated amount or a percentage of the current value of the donated amount.
The required distribution may have an adverse impact on the value of your
Guaranteed benefits.
Series CP(R) contracts are not available for purchase by charitable remainder
trusts.
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 may also apply
contributions made pursuant to an intended Section 1035 tax-free exchange or a
direct transfer. For an IRA contract (traditional or Roth) your initial
contribution must be a direct transfer contribution from another IRA contract
(traditional or Roth, as the case may be) or a rollover from an IRA or other
eligible retirement plan. 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 or not in
accordance with our administrative procedures.
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.
20
CONTRACT FEATURES AND BENEFITS
--------------------------------------------------------------------------------
OUR "BUSINESS DAY" IS GENERALLY ANY DAY THE NEW YORK STOCK EXCHANGE IS OPEN FOR
REGULAR TRADING AND GENERALLY ENDS AT 4:00 P.M. EASTERN TIME (OR AS OF AN
EARLIER CLOSE OF REGULAR TRADING). A BUSINESS DAY DOES NOT INCLUDE A DAY ON
WHICH WE ARE NOT OPEN DUE TO EMERGENCY CONDITIONS DETERMINED BY THE SECURITIES
AND EXCHANGE COMMISSION. WE MAY ALSO CLOSE EARLY DUE TO SUCH EMERGENCY
CONDITIONS. FOR MORE INFORMATION ABOUT OUR BUSINESS DAY AND OUR PRICING OF
TRANSACTIONS, PLEASE SEE "DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR" IN
"MORE INFORMATION" LATER IN THIS PROSPECTUS.
--------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
Your investment options are the following:
.. Protected Benefit account variable investment options (used to fund
Guaranteed benefits)
.. Investment account variable investment options
.. Guaranteed interest option
.. the account for special money market dollar cost averaging (Series CP(R)
contracts only)
.. the account for special dollar cost averaging (Series B contracts only)
All eligible contracts will be issued with the Return of Principal death
benefit unless you make an alternate election of the Highest Anniversary Value
death benefit, the RMD Wealth Guard death benefit or the "Greater of" death
benefit. The RMD Wealth Guard death benefit is not available if you elected the
GMIB. Your Guaranteed benefits do not need to be funded at issue. Also, any
applicable charges will not be assessed until you fund your Protected Benefit
account. The Protected Benefit account variable investment options are used to
fund these benefits.
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in a Special DCA program designated for future transfers to
the Protected Benefit account variable investment options will fund your
Guaranteed benefits. These amounts will be included in the respective benefit
bases of your Guaranteed benefits and will become part of your Protected
Benefit account value. All amounts allocated to the Protected Benefit account
variable investment options and amounts in a Special DCA program designated for
Protected Benefit account variable investment options are subject to the terms
and conditions of the Guaranteed benefits under your contract.
If you allocate to investment options available to fund your Guaranteed
benefits, you may later decide to change your allocation instructions in order
to increase, decrease or stop the funding of your Guaranteed benefits. Also, if
you have a Guaranteed benefit, there is no requirement that you must fund it
either at issue or on any future date.
IF YOU HAVE A GUARANTEED BENEFIT AND ALLOCATE ANY AMOUNT TO THE PROTECTED
BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS OR A SPECIAL DCA PROGRAM WITH
AMOUNTS DESIGNATED FOR FUTURE TRANSFERS TO THE PROTECTED BENEFIT ACCOUNT
VARIABLE INVESTMENT OPTIONS, YOU ARE FUNDING THE GUARANTEED BENEFITS UNDER YOUR
CONTRACT. NO OTHER ACTION IS REQUIRED OF YOU. IF YOU DO NOT WISH TO FUND A
GUARANTEED BENEFIT, YOU SHOULD NOT ALLOCATE CONTRIBUTIONS OR MAKE TRANSFERS TO
YOUR PROTECTED BENEFIT ACCOUNT. SEE "ALLOCATING YOUR CONTRIBUTIONS" LATER IN
THIS SECTION.
Once you allocate amounts to the Protected Benefit account variable investment
options, such amounts may be transferred among the Protected Benefit account
variable investment options, but may not be transferred to the Investment
account variable investment options or the guaranteed interest option. In
addition, we may at any time exercise our right to limit or terminate transfers
into any of the variable investment options. For more information, see
"Transferring your money among investment options" later in this Prospectus.
The table below shows the current Protected Benefit account variable investment
options and Investment account variable investment options available to you. It
is important to note that the Protected Benefit account variable investment
options are also available as Investment account variable investment options.
The Protected Benefit account variable investment options invest in the same
Portfolios as the corresponding Investment account variable investment options.
PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS
--------------------------------------------------------------------------------
.. AXA Aggressive Strategy
.. AXA Balanced Strategy
.. AXA Conservative Growth Strategy
.. AXA Conservative Strategy
.. AXA Growth Strategy
.. AXA Moderate Growth Strategy
.. AXA/AB Dynamic Aggressive Growth
.. AXA/AB Dynamic Growth
.. AXA/AB Dynamic Moderate Growth
.. AXA/Goldman Sachs Strategic Allocation
.. AXA/Invesco Strategic Allocation
.. AXA/JPMorgan Strategic Allocation
.. AXA/Legg Mason Strategic Allocation
--------------------------------------------------------------------------------
21
CONTRACT FEATURES AND BENEFITS
INVESTMENT ACCOUNT VARIABLE INVESTMENT OPTIONS
--------------------------------------------------------------------------------
.. 1290 VT DoubleLine Dynamic Allocation
.. 1290 VT DoubleLine Opportunistic Bond
.. 1290 VT Equity Income
.. 1290 VT GAMCO Mergers & Acquisitions
.. 1290 VT GAMCO Small Company Value
.. 1290 VT High Yield Bond
.. 1290 VT Natural Resources
.. 1290 VT Real Estate
.. 7Twelve/TM/ Balanced Portfolio
.. All Asset Growth - Alt 20
.. AB VPS International Growth
.. American Century VP Mid Cap Value
.. American Funds Insurance Series(R) Bond Fund
.. American Funds Insurance Series(R) Global Small Capitalization Fund
.. American Funds Insurance Series(R) New World Fund(R)
.. AXA Aggressive Strategy
.. AXA Balanced Strategy
.. AXA Conservative Growth Strategy
.. AXA Conservative Strategy
.. AXA Growth Strategy
.. AXA Moderate Allocation
.. AXA Moderate Growth Strategy
.. AXA/AB Dynamic Aggressive Growth
.. AXA/AB Dynamic Growth
.. AXA/AB Dynamic Moderate Growth
.. AXA/AB Small Cap Growth
.. AXA/Goldman Sachs Strategic Allocation
.. AXA/Invesco Strategic Allocation
.. AXA International Core Managed Volatility
.. AXA/Janus Enterprise
.. AXA/JPMorgan Strategic Allocation
.. AXA Large Cap Value Managed Volatility
.. AXA/Legg Mason Strategic Allocation
.. AXA/Loomis Sayles Growth
.. AXA Mid Cap Value Managed Volatility
.. BlackRock Global Allocation V.I. Fund
.. BlackRock Large(R) Cap Focus Growth V.I. Fund
.. Charter/SM/ Moderate
.. Charter/SM/ Moderate Growth
.. Charter/SM/ Small Cap Value
.. ClearBridge Variable Aggressive Growth
.. ClearBridge Variable Appreciation
.. ClearBridge Variable Dividend Strategy
.. ClearBridge Variable Mid Cap
.. EQ/BlackRock Basic Value Equity
.. EQ/Common Stock Index
.. EQ/Core Bond Index
.. EQ/Equity 500 Index
.. EQ/Emerging Markets Equity PLUS
.. EQ/Intermediate Government Bond
.. EQ/International Equity Index
.. EQ/Invesco Comstock
.. EQ/Large Cap Growth Index
.. EQ/Large Cap Value Index
.. EQ/MFS International Growth
.. EQ/Mid Cap Index
.. EQ/Money Market
.. EQ/Oppenheimer Global
.. EQ/PIMCO Global Real Return
.. EQ/PIMCO Ultra Short Bond
.. EQ/Small Company Index
.. EQ/T. Rowe Price Growth Stock
.. Eaton Vance VT Floating-Rate Income
.. Fidelity(R) VIP Contrafund(R)
.. Fidelity(R) VIP Mid Cap
.. Fidelity(R) VIP Strategic Income
.. First Trust/Dow Jones Dividend & Income Allocation
.. First Trust Multi Income Allocation
.. Franklin Founding Funds Allocation VIP
.. Franklin Income VIP
.. Franklin Rising Dividends VIP
.. Franklin Strategic Income VIP
.. Goldman Sachs VIT Mid Cap Value
.. Hartford Capital Appreciation HLS
.. Hartford Growth Opportunities HLS
.. Invesco V.I. Diversified Dividend
.. Invesco V.I. Equity and Income
.. Invesco V.I. Global Real Estate
.. Invesco V.I. High Yield
.. Invesco V.I. International Growth
.. Invesco V.I. Mid Cap Core Equity
.. Invesco V.I. Small Cap Equity
.. Ivy VIP Asset Strategy
.. Ivy VIP Dividend Opportunities
.. Ivy VIP Energy
.. Ivy VIP High Income
.. Ivy VIP Mid Cap Growth
.. Ivy VIP Natural Resources
.. Ivy VIP Science and Technology
.. Ivy VIP Small Cap Growth
.. Lazard Retirement Emerging Markets Equity
.. Lord Abbett Bond Debenture
.. MFS(R) International Value
.. MFS(R) Investors Trust Series
.. MFS(R) Massachusetts Investors Growth Stock
.. MFS(R) Utilities Series
.. Multimanager Aggressive Equity
.. Multimanager Mid Cap Growth
.. Multimanager Mid Cap Value
.. Multimanager Technology
.. Neuberger Berman International Equity
.. Neuberger Berman U.S. Equity Index PutWrite Strategy
.. PIMCO CommodityRealReturn(R) Strategy
.. PIMCO Real Return
.. PIMCO Total Return
.. ProFund VP Biotechnology
.. Putnam VT Diversified Income
.. QS Legg Mason Dynamic Multi-Strategy VIT
.. T.Rowe Price Health Sciences Portfolio II
.. Templeton Developing Markets VIP
.. Templeton Global Bond VIP
.. VanEck VIP Global Hard Assets
--------------------------------------------------------------------------------
If you decide to participate in a Special DCA program, any amounts allocated to
the program that are designated for future transfers to the Protected Benefit
account variable investment options will be included in the Protected Benefit
account value. Any amounts allocated to a Special DCA program that are
designated for future transfers to the Investment account variable investment
options and the guaranteed interest option will be included in your Investment
account value. As discussed later in this section, the Special DCA programs
allow you to gradually allocate amounts to available investment options through
periodic transfers. You can allocate to either or both Investment account and
Protected Benefit account variable investment options as part of your Special
DCA program. See "Allocating your contributions" later in this section.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying Portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available Portfolios, their investment
objectives their investment manager(s) and/or sub-adviser(s). We may, at any
time, exercise our rights to limit or terminate your contributions, allocations
and transfers to any of the variable investment options (including the
Protected Benefit account variable investment options) and to limit the number
of variable investment options which you may select.
22
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 investment
decisions for the Portfolios. As such, among other responsibilities, AXA FMG
oversees the activities of the sub-advisers with respect to the affiliated
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. In addition, AXA FMG receives management fees and
administrative fees in connection with the services it provides to the
affiliated Portfolios. As such, it is generally more profitable for us to offer
affiliated Portfolios than to offer unaffiliated Portfolios.
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) and investment option restrictions in
connection with any guaranteed benefit that include these Portfolios are
designed to reduce the overall volatility of your Total account value and
provide you with risk-adjusted returns over time. The reduction in volatility
helps us manage the risks associated with providing guaranteed benefits during
times of high volatility in the equity market. During rising markets, the AXA
volatility management strategy, however, could result in your Total account
value rising less than would have been the case had you been invested in a
Portfolio that does not utilize the AXA volatility management strategy (or, in
the case of the AXA Fund of Fund Portfolios, invest exclusively in other
Portfolios that do not use the AXA volatility management strategy). THIS MAY
EFFECTIVELY SUPPRESS THE VALUE OF GUARANTEED BENEFIT(S) THAT ARE ELIGIBLE FOR
PERIODIC BENEFIT BASE RESETS BECAUSE YOUR BENEFIT BASE IS AVAILABLE FOR RESETS
ONLY WHEN YOUR PROTECTED BENEFIT ACCOUNT VALUE IS HIGHER. Conversely, investing
in investment options that feature a managed-volatility strategy may be helpful
in a declining market when high market volatility triggers a reduction in the
investment option's equity exposure because during these periods of high
volatility, the risk of losses from investing in equity securities may
increase. In these instances, your Total account value may decline less than
would have been the case had you not been invested in investment options that
feature a volatility management strategy.
23
CONTRACT FEATURES AND BENEFITS
Please see the underlying Portfolio prospectuses for more information in
general, as well as more information about the AXA volatility management
strategy. Please further note that certain other affiliated Portfolios, as well
as unaffiliated Portfolios, may utilize volatility management techniques that
differ from the AXA volatility management strategy. Affiliated Portfolios that
utilize these volatility management techniques are identified below in the
chart by a "(delta)" under the column entitled "Volatility Management." Any
such unaffiliated Portfolio is not identified under "Volatility Management"
below in the chart. Such techniques could also impact your Total account value
and guaranteed benefit(s), if any, in the same manner described above. Please
see the Portfolio prospectuses for more information about the Portfolios'
objective and strategies.
---------------------------------------------------------------------------------------------------------------
INVESTMENT
MANAGER (OR
AXA PREMIER VIP SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
---------------------------------------------------------------------------------------------------------------
AXA MODERATE ALLOCATION Class A Seeks to achieve long-term capital . AXA Equitable (check mark)
appreciation and current income. Funds
Management
Group, LLC
---------------------------------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE Class B Seeks long-term capital appreciation . AXA Equitable
and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
---------------------------------------------------------------------------------------------------------------
CHARTER/SM/ MODERATE Class B Seeks long-term capital appreciation . AXA Equitable
GROWTH and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
---------------------------------------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP Class B Seeks to achieve long-term growth of . AXA Equitable
VALUE capital. Funds
Management
Group, LLC
---------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Class IB Seeks to achieve total return from . DoubleLine
DYNAMIC ALLOCATION long-term capital appreciation and Capital LP
income.
------------------------------------------------------------------------------------------------------------------
1290 VT DOUBLELINE Class IB Seeks to maximize current income . DoubleLine
OPPORTUNISTIC BOND and total return. Capital LP
------------------------------------------------------------------------------------------------------------------
1290 VT EQUITY INCOME Class IA Seeks a combination of growth and . Boston
income to achieve an above average Advisors, LLC
and consistent total return.
------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO MERGERS & Class IA Seeks to achieve capital appreciation. . GAMCO Asset
ACQUISITIONS Management, Inc.
------------------------------------------------------------------------------------------------------------------
1290 VT GAMCO SMALL Class IA Seeks to maximize capital . GAMCO Asset
COMPANY VALUE appreciation. Management, Inc.
------------------------------------------------------------------------------------------------------------------
1290 VT HIGH YIELD BOND Class IB Seeks to maximize current income. . AXA Equitable
Funds
Management
Group, LLC
. AXA Investment
Managers, Inc.
. Post Advisory
Group, LLP
------------------------------------------------------------------------------------------------------------------
1290 VT NATURAL RESOURCES Class IB Seeks to achieve long-term growth of .
capital. AllianceBernstein
L.P.
------------------------------------------------------------------------------------------------------------------
1290 VT REAL ESTATE Class IB Seeks to provide long-term capital .
appreciation and current income. AllianceBernstein
L.P.
------------------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH - ALT 20 Class IA Seeks long-term capital appreciation . AXA Equitable
and current income. Funds
Management
Group, LLC
------------------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
STRATEGY/(+)/ and current income, with a greater Funds
emphasis on capital appreciation. Management
Group, LLC
------------------------------------------------------------------------------------------------------------------
AXA BALANCED Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
STRATEGY/(+)/ and current income. Funds
Management
Group, LLC
------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE GROWTH Class IB Seeks current income and growth of . AXA Equitable (check mark)
STRATEGY/(+)/ capital, with a greater emphasis on Funds
current income. Management
Group, LLC
------------------------------------------------------------------------------------------------------------------
24
CONTRACT FEATURES AND BENEFITS
-----------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-----------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE Class IB Seeks a high level of current income. . AXA Equitable (check mark)
STRATEGY/(+)/ Funds
Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA GROWTH STRATEGY/(+)/ Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
and current income, with a greater Funds
emphasis on capital appreciation. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA MODERATE GROWTH Class IB Seeks long-term capital appreciation . AXA Equitable (check mark)
STRATEGY/(+)/ and current income, with a greater Funds
emphasis on current income. Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA/AB DYNAMIC Class IB Seeks to achieve total return from . AXA Equitable (delta)
AGGRESSIVE GROWTH/(+)/ long-term growth of capital and Funds
income, with a greater emphasis on Management
growth of capital. Group, LLC
.
AllianceBernstein
L.P.
-----------------------------------------------------------------------------------------------------------------
AXA/AB DYNAMIC Class IB Seeks to achieve total return from . (delta)
GROWTH/(+)/ long-term growth of capital and AllianceBernstein
income, with a greater emphasis on L.P.
growth of capital.
-----------------------------------------------------------------------------------------------------------------
AXA/AB DYNAMIC MODERATE Class IB Seeks to achieve total return from . (delta)
GROWTH/(+)/ long-term growth of capital and AllianceBernstein
income. L.P.
-----------------------------------------------------------------------------------------------------------------
AXA/AB SMALL CAP GROWTH Class IA Seeks to achieve long-term growth of . (check mark)
capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
-----------------------------------------------------------------------------------------------------------------
AXA/GOLDMAN SACHS Class IB Seeks to achieve long term capital . Goldman Sachs (delta)
STRATEGIC appreciation under normal market Asset
ALLOCATION/(+)/ conditions, while focusing on the Management, L.P.
preservation of capital in distressed
market environments.
-----------------------------------------------------------------------------------------------------------------
AXA INTERNATIONAL CORE Class IA Seeks to achieve long-term growth of . AXA Equitable (check mark)
MANAGED VOLATILITY capital with an emphasis on risk- Funds
adjusted returns and managing Management
volatility in the Portfolio. Group, LLC
. BlackRock
Investment
Management, LLC
. EARNEST
Partners, LLC
. Federated
Global
Investment
Management Corp.
. Massachusetts
Financial
Services
Company d/b/a
MFS Investment
Management
-----------------------------------------------------------------------------------------------------------------
AXA/INVESCO STRATEGIC Class IB Seeks long-term capital appreciation . Invesco (delta)
ALLOCATION/(+)/ while managing portfolio volatility. Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------
AXA/JANUS ENTERPRISE Class IA Seeks to achieve capital growth. . Janus Capital
Management LLC
-----------------------------------------------------------------------------------------------------------------
AXA/JPMORGAN STRATEGIC Class IB Seeks to achieve long-term capital . AXA Equitable (delta)
ALLOCATION/(+)/ appreciation with an emphasis on Funds
risk-adjusted returns and managing Management
volatility in the Portfolio. Group, LLC
. J.P. Morgan
Investment
Management, Inc.
-----------------------------------------------------------------------------------------------------------------
AXA LARGE CAP VALUE Class IA Seeks to achieve long-term growth of . (check mark)
MANAGED VOLATILITY capital with an emphasis on risk- AllianceBernstein
adjusted returns and managing L.P.
volatility in the Portfolio. . AXA Equitable
Funds
Management
Group, LLC
. BlackRock
Investment
Management, LLC
. Massachusetts
Financial
Services
Company d/b/a
MFS Investment
Management
-----------------------------------------------------------------------------------------------------------------
25
CONTRACT FEATURES AND BENEFITS
--------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
--------------------------------------------------------------------------------------------------------------------
AXA/LEGG MASON STRATEGIC Class IB Seeks long-term capital appreciation . QS Investors, (delta)
ALLOCATION/(+)/ while managing Portfolio volatility. LLC
--------------------------------------------------------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH Class IA Seeks to achieve capital appreciation. . Loomis, Sayles
& Company, L.P.
--------------------------------------------------------------------------------------------------------------------
AXA MID CAP VALUE Class IA Seeks to achieve long-term capital . AXA Equitable (check mark)
MANAGED VOLATILITY appreciation with an emphasis on risk Funds
adjusted returns and managing Management
volatility in the Portfolio. Group, LLC
. BlackRock
Investment
Management, LLC
. Diamond Hill
Capital
Management, Inc.
. Wellington
Management
Company, LLP
--------------------------------------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE Class IA Seeks to achieve capital appreciation . BlackRock
EQUITY and secondarily, income. Investment
Management, LLC
--------------------------------------------------------------------------------------------------------------------
EQ/COMMON STOCK INDEX Class IA Seeks to achieve a total return before .
expenses that approximates the total AllianceBernstein
return performance of the Russell L.P.
3000(R) Index, including reinvestment
of dividends, at a risk level consistent
with that of the Russell 3000(R) Index.
--------------------------------------------------------------------------------------------------------------------
EQ/CORE BOND INDEX Class IB Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the Barclays
U.S. Intermediate Government/Credit
Bond Index, including reinvestment of
dividends, at a risk level consistent
with that of the Barclays U.S.
Intermediate Government/Credit
Bond Index.
--------------------------------------------------------------------------------------------------------------------
EQ/EMERGING MARKETS Class IB Seeks to achieve long-term growth of .
EQUITY PLUS capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
. EARNEST
Partners, LLC
--------------------------------------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX Class IA Seeks to achieve a total return before .
expenses that approximates the total AllianceBernstein
return performance of the Standard & L.P.
Poor's 500 Composite Stock Price
Index, including reinvestment of divi-
dends, at a risk level consistent with
that of the Standard & Poor's 500
Composite Stock Price Index.
--------------------------------------------------------------------------------------------------------------------
EQ/INTERMEDIATE Class IB Seeks to achieve a total return before . AXA Equitable
GOVERNMENT BOND expenses that approximates the total Funds
return performance of the Barclays Management
U.S. Intermediate Government Bond Group, LLC
Index, including reinvestment of . SSgA Funds
dividends, at a risk level consistent Management, Inc.
with that of the Barclays U.S.
Intermediate Government Bond
Index.
--------------------------------------------------------------------------------------------------------------------
26
CONTRACT FEATURES AND BENEFITS
-------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------
EQ/INTERNATIONAL EQUITY Class IA Seeks to achieve a total return (before .
INDEX expenses) that approximates the total AllianceBernstein
return performance of a composite L.P.
index comprised of 40% DJ Euro
STOXX 50 Index, 25% FTSE 100
Index, 25% TOPIX Index, and 10%
S&P/ASX 200 Index, including
reinvestment of dividends, at a risk
level consistent with that of the
composite index.
-------------------------------------------------------------------------------------------------------------------
EQ/INVESCO COMSTOCK Class IA Seeks to achieve capital growth and . Invesco
income. Advisers, Inc.
-------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX Class IA Seeks to achieve a total return before .
expenses that approximates the total AllianceBernstein
return performance of the Russell L.P.
1000(R) Growth Index, including
reinvestment of dividends at a risk
level consistent with that of the Russell
1000(R) Growth Index.
-------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX Class IA Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the Russell
1000(R) Value Index, including
reinvestment of dividends, at a risk
level consistent with that of the
Russell 1000(R) Value Index.
-------------------------------------------------------------------------------------------------------------------
EQ/MFS INTERNATIONAL Class IA Seeks to achieve capital appreciation. . Massachusetts
GROWTH Financial
Services
Company d/b/a
MFS Investment
Management
-------------------------------------------------------------------------------------------------------------------
EQ/MID CAP INDEX Class IA Seeks to achieve a total return before . SSgA Funds
expenses that approximates the total Management, Inc.
return performance of the 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 IA Seeks to obtain a high level of current . The Dreyfus
income, preserve its assets and Corporation
maintain liquidity.
-------------------------------------------------------------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL Class IA Seeks to achieve capital appreciation. .
OppenheimerFunds,
Inc.
-------------------------------------------------------------------------------------------------------------------
EQ/PIMCO GLOBAL REAL Class IB Seeks to achieve maximum real . Pacific
RETURN return, consistent with preservation of Investment
capital and prudent investment Management
management. Company LLC
-------------------------------------------------------------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND Class IA Seeks to generate a return in excess . Pacific
of traditional money market products Investment
while maintaining an emphasis on Management
preservation of capital and liquidity. Company LLC
-------------------------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX Class IA Seeks to replicate as closely as .
possible (before expenses) the total AllianceBernstein
return of the Russell 2000(R) Index. L.P.
-------------------------------------------------------------------------------------------------------------------
27
CONTRACT FEATURES AND BENEFITS
-------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
EQ ADVISORS (OR SUB-ADVISER(S), VOLATILITY
TRUST PORTFOLIO NAME SHARE CLASS OBJECTIVE AS APPLICABLE) MANAGEMENT
-------------------------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH Class IA Seeks to achieve long-term capital . T. Rowe Price
STOCK appreciation and secondarily, income. Associates, Inc.
-------------------------------------------------------------------------------------------------------------------
MULTIMANAGER AGGRESSIVE Class IB Seeks to achieve long-term growth of .
EQUITY capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
. ClearBridge
Investments, LLC
. Scotia
Institutional
Management US,
Ltd.
. T. Rowe Price
Associates, Inc.
. Westfield
Capital
Management
Company, L.P.
-------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID CAP Class IB Seeks to achieve long-term growth of .
GROWTH capital. AllianceBernstein
L.P.
. AXA Equitable
Funds
Management
Group, LLC
.
BlackRock Investment
Management, LLC
. Franklin
Advisers, Inc.
.
Wellington Management
Company, LLP
-------------------------------------------------------------------------------------------------------------------
MULTIMANAGER MID CAP Class IB Seeks to achieve long-term growth of . AXA Equitable
VALUE capital. Funds
Management
Group, LLC
. BlackRock
Investment
Management, LLC
. Diamond Hill
Capital
Management, Inc.
. Lord, Abbett &
Co. LLC
-------------------------------------------------------------------------------------------------------------------
MULTIMANAGER TECHNOLOGY Class IB Seeks to achieve long-term growth of . Allianz Global
capital. Investors U.S.
LLC
. AXA Equitable
Funds
Management
Group, LLC
. SSgA Funds
Management, Inc.
. Wellington
Management
Company, LLP
-------------------------------------------------------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS (INVESCO INVESTMENT MANAGER
VARIABLE INSURANCE FUNDS) - SERIES (OR SUB-ADVISER(S),
II PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------------
INVESCO V.I. DIVERSIFIED DIVIDEND FUND The fund's investment objective is to provide . Invesco
reasonable current income and long-term growth of Advisers, Inc.
income and capital.
---------------------------------------------------------------------------------------------------------------------
INVESCO V.I. EQUITY AND INCOME FUND The fund's investment objectives are both capital . Invesco
appreciation and current income. Advisers, Inc.
---------------------------------------------------------------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND The fund's investment objective is total return . Invesco
through growth of capital and current income. Advisers, Inc.
. Sub-Adviser:
Invesco Asset
Management
Limited
---------------------------------------------------------------------------------------------------------------------
INVESCO V.I. HIGH YIELD FUND The fund's investment objective is total return, . Invesco
comprised of current income and capital Advisers, Inc.
appreciation. . Sub-Adviser:
Invesco Canada
Ltd.
---------------------------------------------------------------------------------------------------------------------
28
CONTRACT FEATURES AND BENEFITS
-----------------------------------------------------------------------------------------------------------------------
AIM VARIABLE INSURANCE FUNDS (INVESCO INVESTMENT MANAGER
VARIABLE INSURANCE FUNDS) - SERIES (OR SUB-ADVISER(S),
II PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
-----------------------------------------------------------------------------------------------------------------------
INVESCO V.I. INTERNATIONAL GROWTH FUND The fund's investment objective is long-term growth . Invesco
of capital. Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------------
INVESCO V.I. MID CAP CORE EQUITY FUND The fund's investment objective is long-term growth . Invesco
of capital. Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------------
INVESCO V.I. SMALL CAP EQUITY FUND The fund's investment objective is long-term growth . Invesco
of capital. Advisers, Inc.
-----------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
AB VARIABLE PRODUCT SERIES FUND, INC. (OR SUB-ADVISER(S),
- CLASS B PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------------
AB VPS INTERNATIONAL GROWTH PORTFOLIO The Portfolio's investment objective is long-term .
growth of capital. AllianceBernstein
L.P.
----------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
AMERICAN CENTURY VARIABLE PORTFOLIOS, (OR SUB-ADVISER(S),
INC. - CLASS II PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP MID CAP VALUE FUND The fund seeks long-term capital growth. Income is . American
a secondary objective. Century
Investment
Management, Inc.
----------------------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) - INVESTMENT MANAGER
CLASS 4 SHARES (OR SUB-ADVISER(S),
PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------------
BOND FUND The fund's investment objective is to provide as . Capital
high a level of current income as is consistent with Research and
the preservation of capital. Management
Company
------------------------------------------------------------------------------------------------------------------------
GLOBAL SMALL CAPITALIZATION FUND The fund's investment objective is to provide you . Capital
with long-term growth of capital. Research and
Management
Company
------------------------------------------------------------------------------------------------------------------------
NEW WORLD FUND(R) The fund's investment objective is long-term capital . Capital
appreciation. Research and
Management
Company
------------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
BLACKROCK VARIABLE SERIES FUNDS, INC. (OR SUB-ADVISER(S),
- CLASS III PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
--------------------------------------------------------------------------------------------------------
BLACKROCK GLOBAL ALLOCATION V.I. FUND To seek high total investment return. . Adviser:
BlackRock
Advisors, LLC
--------------------------------------------------------------------------------------------------------
BLACKROCK LARGE CAP FOCUS GROWTH V.I. Seeks long-term capital growth. . Adviser:
FUND BlackRock
Advisors, LLC
-------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
(OR
EATON VANCE VARIABLE TRUST SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------
EATON VANCE VT FLOATING-RATE INCOME FUND To provide a high level of current income. . Eaton Vance
Management
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VARIABLE INVESTMENT MANAGER
INSURANCE PRODUCTS (VIP) - SERVICE (OR SUB-ADVISER(S),
CLASS 2 PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO Seeks long-term capital appreciation. . Fidelity
Management &
Research
Company (FMR)
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID CAP PORTFOLIO Seeks long-term growth of capital. . Fidelity
Management &
Research Company
(FMR)
------------------------------------------------------------------------------------------------------------------
FIDELITY(R) VIP STRATEGIC INCOME Seeks a high level of current income. The fund . Fidelity
PORTFOLIO may also seek capital appreciation. Management &
Research
Company (FMR)
---------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
FIRST TRUST VARIABLE (OR SUB-ADVISER(S),
INSURANCE TRUST PORTFOLIO NAME OBJECTIVE AS APPLICABLE
---------------------------------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES DIVIDEND & INCOME Seeks to provide total return by allocating among . First Trust
ALLOCATION PORTFOLIO dividend-paying stocks and investment grade Advisors, L.P.
bonds.
---------------------------------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME ALLOCATION Seeks to maximize current income, with a . First Trust
PORTFOLIO secondary objective of capital appreciation. Advisors L.P.
---------------------------------------------------------------------------------------------------------------------
29
CONTRACT FEATURES AND BENEFITS
------------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
FRANKLIN TEMPLETON VARIABLE INSURANCE (OR SUB-ADVISER(S),
PRODUCTS TRUST - CLASS 2 PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS ALLOCATION VIP The Fund's principal investment goal is capital . Fund
FUND appreciation. Its secondary goal is income. Administrator:
Franklin
Templeton
Services, LLC
------------------------------------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND Seeks to maximize income while maintaining . Franklin
prospects for capital appreciation. Advisers, Inc.
------------------------------------------------------------------------------------------------------------------------
FRANKLIN RISING DIVIDENDS VIP FUND Seeks long-term capital appreciation, with . Franklin
preservation of capital as an important Advisory
consideration. Services, LLC
------------------------------------------------------------------------------------------------------------------------
FRANKLIN STRATEGIC INCOME VIP FUND The Fund's principal investment goal is to seek a . Franklin
high level of current income. Its secondary goal is Advisers, Inc.
capital appreciation over long term.
------------------------------------------------------------------------------------------------------------------------
TEMPLETON DEVELOPING MARKETS VIP FUND Seeks long-term capital appreciation. . Templeton Asset
Management Ltd.
------------------------------------------------------------------------------------------------------------------------
TEMPLETON GLOBAL BOND VIP FUND Seeks high current income, consistent with . Franklin
preservation of capital. Capital appreciation is a Advisers, Inc.
secondary consideration.
----------------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
GOLDMAN SACHS VARIABLE INSURANCE TRUST (OR SUB-ADVISER(S),
- SERVICE SHARES PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------------
GOLDMAN SACHS VIT MID CAP VALUE FUND Seeks long-term capital appreciation. .
Goldman Sachs Asset Management, L.P.
----------------------------------------------------------------------------------------------------------------------------
INVESTMENT
MANAGER (OR
HARTFORD HLS FUNDS - CLASS IC SHARES SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-------------------------------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS FUND The Fund seeks growth of capital. . Hartford Funds
Management
Company, LLC
.
Sub-adviser: Wellington Management
Company LLP
-------------------------------------------------------------------------------------------------------------------------
HARTFORD GROWTH OPPORTUNITIES HLS FUND The Fund seeks capital appreciation. . Hartford Funds
Management
Company, LLC
.
Sub-adviser: Wellington Management
Company LLP
----------------------------------------------------------------------------------------------------------
IVY VARIABLE INSURANCE INVESTMENT MANAGER
PORTFOLIOS (OR SUB-ADVISER(S),
PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
----------------------------------------------------------------------------------------------------------
IVY VIP ASSET STRATEGY To seek to provide total return. . Ivy Investment
Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP DIVIDEND To seek to provide total return. . Ivy Investment
OPPORTUNITIES Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP ENERGY To seek to provide capital growth and appreciation. . Ivy Investment
Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP HIGH INCOME To seek to provide total return through a combination . Ivy Investment
of high current income and capital appreciation. Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP MID CAP GROWTH To seek to provide growth of capital. . Ivy Investment
Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP NATURAL RESOURCES To seek to provide capital growth and appreciation. . Ivy Investment
Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP SCIENCE AND To seek to provide growth of capital. . Ivy Investment
TECHNOLOGY Management
Company (IICO)
----------------------------------------------------------------------------------------------------------
IVY VIP SMALL CAP GROWTH To seek to provide growth of capital. . Ivy Investment
Management
Company (IICO)
----------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
LAZARD RETIREMENT SERIES, INC. (OR SUB-ADVISER(S),
- SERVICE SHARES PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
----------------------------------------------------------------------------------------------------
LAZARD RETIREMENT EMERGING MARKETS Seeks long-term capital appreciation. . Lazard Asset
EQUITY PORTFOLIO Management LLC
----------------------------------------------------------------------------------------------------
30
CONTRACT FEATURES AND BENEFITS
-----------------------------------------------------------------------------------------------------------------
INVESTMENT
LEGG MASON PARTNERS VARIABLE MANAGER (OR
EQUITY TRUST - SHARE CLASS II SUB-ADVISER(S), AS
PORTFOLIO NAME OBJECTIVE APPLICABLE)
-----------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE AGGRESSIVE Seeks capital appreciation. . Legg Mason
GROWTH PORTFOLIO Partners Fund
Advisor, LLC
(Investment
Manager)
. Sub-Adviser:
ClearBridge
Investments, LLC
-----------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE APPRECIATION Seeks long-term capital appreciation. . Legg Mason
PORTFOLIO Partners Fund
Advisor, LLC
(Investment
Manager)
. Sub-Adviser:
ClearBridge
Investments, LLC
-----------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE DIVIDEND Seeks dividend income, growth of dividend income . Legg Mason
STRATEGY PORTFOLIO and long-term capital appreciation. Partners Fund
Advisor, LLC
(Investment
Manager)
. Sub-Adviser:
ClearBridge
Investments, LLC
-----------------------------------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE MID CAP Seeks long-term growth of capital. . Legg Mason
PORTFOLIO Partners Fund
Advisor, LLC
(Investment
Manager)
. Sub-Adviser:
ClearBridge
Investments, LLC
-----------------------------------------------------------------------------------------------------------------
QS LEGG MASON DYNAMIC MULTI- The fund seeks the highest total return (that is, a . Legg Mason
STRATEGY VIT PORTFOLIO combination of income and long-term capital Partners Fund
appreciation) over time consistent with its asset Advisor, LLC
mix. The fund will seek to reduce volatility as a (Investment
secondary objective. Manager)
. Sub-Adviser: QS
Investors, LLC
and Western
Asset
Management
Company
-------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
LORD ABBETT SERIES FUND, INC. - CLASS (OR SUB-ADVISER(S),
VC PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------------
LORD ABBETT BOND DEBENTURE PORTFOLIO The fund's investment objective is to seek high . Lord, Abbett &
(VC) current income and the opportunity for capital Co. LLC
appreciation to produce a high total return.
----------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
MFS(R) VARIABLE INSURANCE (OR SUB-ADVISER(S),
TRUSTS - SERVICE CLASS PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
----------------------------------------------------------------------------------------------------------------------
MFS(R) INTERNATIONAL VALUE PORTFOLIO The fund's investment objective is to seek capital . Massachusetts
appreciation. Financial
Services Company
----------------------------------------------------------------------------------------------------------------------
MFS(R) INVESTORS TRUST SERIES The fund's investment objective is to seek capital . Massachusetts
appreciation. Financial
Services Company
----------------------------------------------------------------------------------------------------------------------
MFS(R) MASSACHUSETTS INVESTORS GROWTH The fund's investment objective is to seek capital . Massachusetts
STOCK PORTFOLIO appreciation. Financial
Services Company
----------------------------------------------------------------------------------------------------------------------
MFS(R) UTILITIES SERIES The fund's investment objective is to seek total . Massachusetts
return. Financial
Services Company
----------------------------------------------------------------------------------------------------------------------
INVESTMENT
NEUBERGER BERMAN ADVISERS MANAGER (OR
MANAGEMENT TRUST - S CLASS SHARES SUB-ADVISER(S), AS
PORTFOLIO NAME/(*)/ OBJECTIVE APPLICABLE)
-----------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN INTERNATIONAL EQUITY The fund seeks long-term growth of capital and . Neuberger
PORTFOLIO income generation. Berman
Investment
Advisers LLC
-----------------------------------------------------------------------------------------------------------------
NEUBERGER BERMAN U.S. EQUITY INDEX The fund seeks capital appreciation with an . Neuberger
PUTWRITE STRATEGY PORTFOLIO emphasis on absolute (i.e., positive) returns. Berman
Investment
Advisers LLC
-----------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
NORTHERN LIGHTS VARIABLE TRUST (OR SUB-ADVISER(S),
PORTFOLIO NAME OBJECTIVE AS APPLICABLE
------------------------------------------------------------------------------------------------------------------
7TWELVE/TM/ BALANCED PORTFOLIO/(+++)/ The Portfolio seeks to provide superior risk- . 7Twelve
adjusted returns when compared to the bond and Advisors, LLC
equity markets in general.
------------------------------------------------------------------------------------------------------------------
31
CONTRACT FEATURES AND BENEFITS
------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
PIMCO VARIABLE INSURANCE TRUST (OR SUB-ADVISER(S),
- ADVISOR CLASS PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
------------------------------------------------------------------------------------------------------------------
PIMCO COMMODITYREALRETURN(R) STRATEGY Seeks maximum real return consistent with . Pacific
PORTFOLIO prudent investment management. Investment
Management
Company LLC
------------------------------------------------------------------------------------------------------------------
PIMCO REAL RETURN PORTFOLIO Seeks maximum real return, consistent with . Pacific
preservation of real capital and prudent Investment
investment management. Management
Company LLC
------------------------------------------------------------------------------------------------------------------
PIMCO TOTAL RETURN PORTFOLIO Seeks maximum total return, consistent with . Pacific
preservation of capital and prudent investment Investment
management. Management
Company LLC
------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
(OR SUB-ADVISER(S),
PROFUNDS VP PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
-------------------------------------------------------------------------------------------------------------------
PROFUND VP BIOTECHNOLOGY Seeks investment results, before fees and . ProFund
expenses, that correspond to the performance of Advisors LLC
the Dow Jones U.S. Biotechnology/SM /Index.
-------------------------------------------------------------------------------------------------------------------
INVESTMENT
MANAGER (OR
PUTNAM VARIABLE TRUST - IB SHARE SUB-ADVISER(S), AS
CLASS PORTFOLIO NAME OBJECTIVE APPLICABLE)
--------------------------------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND Seeks as high a level of current income as Putnam . Putnam
Investment Management, LLC believes is Investment
consistent with preservation of capital. Management, LLC
. Sub-Manager:
Putnam
Investments
Limited
---------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
T. ROWE PRICE EQUITY SERIES, (OR SUB-ADVISER(S),
INC. PORTFOLIO NAME OBJECTIVE AS APPLICABLE)
---------------------------------------------------------------------------------------------------------
T. ROWE PRICE HEALTH SCIENCES PORTFOLIO Seeks long-term capital appreciation. . T. Rowe Price
- II Associates, Inc.
---------------------------------------------------------------------------------------------------------------------
INVESTMENT MANAGER
VANECK VIP TRUST - S CLASS PORTFOLIO (OR SUB-ADVISER(S),
NAME OBJECTIVE AS APPLICABLE)
---------------------------------------------------------------------------------------------------------------------
VANECK VIP GLOBAL HARD ASSETS FUND Seeks long-term capital appreciation by investing . Van Eck
primarily in hard asset securities. Income is a Associates
secondary consideration. Corporation
---------------------------------------------------------------------------------------------------------------------
(+) This variable investment option is also available as a Protected Benefit
account variable investment option should you decide to fund your
Guaranteed benefits. For more information, please see "What are your
investment options under the contract?" earlier in this section.
(++)The Board of Trustees of EQ Advisors Trust approved changes to the
Portfolio's principal investment strategies that will allow the Portfolio
to operate as a "government money market fund." The Portfolio will invest
at least 99.5% of its total assets in U.S. government securities, cash,
and/or repurchase agreements that are fully collateralized by U.S.
government securities or cash.
(+++)7Twelve(TM) is a registered trademark belonging to Craig L. Israelsen.
YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, AND CHARGES AND EXPENSES
OF THE PORTFOLIOS CAREFULLY BEFORE INVESTING. THE PROSPECTUSES FOR THE TRUSTS
CONTAIN THIS AND OTHER IMPORTANT INFORMATION ABOUT THE PORTFOLIOS. THE
PROSPECTUSES SHOULD BE READ CAREFULLY BEFORE INVESTING. IN ORDER TO OBTAIN
COPIES OF TRUST PROSPECTUSES THAT DO NOT ACCOMPANY THIS PROSPECTUS, YOU MAY
CALL ONE OF OUR CUSTOMER SERVICE REPRESENTATIVES AT 1-800-789-7771.
32
CONTRACT FEATURES AND BENEFITS
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus. Any amounts allocated to the guaranteed interest
option will not be included in your Protected Benefit account value.
We credit interest daily to amounts in the guaranteed interest option. There
are three levels of interest in effect at the same time in the guaranteed
interest option:
(1)the minimum interest rate guaranteed over the life of the contract,
(2)the yearly guaranteed interest rate for the calendar year, and
(3)the current interest rate.
We set current interest rates periodically, based on our discretion and
according to our procedures that we have in effect at the time. We reserve the
right to change these procedures. All interest rates are effective annual
rates, but before the deduction of annual administrative charges and any
withdrawal charges (if applicable).
Your lifetime minimum rate is 1.00%. The data page for your contract shows the
lifetime minimum rate. The minimum yearly rate will never be less than the
lifetime minimum rate. The minimum yearly rate for 2017 is 1.00%. Current
interest rates will never be less than the yearly guaranteed interest rate.
We assign an interest rate to each amount allocated to the guaranteed interest
option. This rate is guaranteed for a specified period. Therefore, different
interest rates may apply to different amounts in the guaranteed interest option.
Generally, contributions and transfers into and out of the guaranteed interest
option are limited. See "Transferring your money among the investment options"
later in this Prospectus for restrictions on transfers from the guaranteed
interest option.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. (Series B contracts only) The
account for special dollar cost averaging is part of our general account. We
pay interest at guaranteed rates in this account for specified time periods. We
will credit interest to the amounts that you have in the account for special
dollar cost averaging every day. We set the interest rates periodically, based
on our discretion and according to the procedures that we have. We reserve the
right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Dollar cost averaging" later in
this section for rules and restrictions that apply to the account for special
dollar cost averaging.
ALLOCATING YOUR CONTRIBUTIONS
You may allocate your contributions to the Investment account variable
investment options, the guaranteed interest option or an available Special DCA
program. If you are eligible to have one or more Guaranteed benefits and you
wish to fund them, you may allocate contributions to the Protected Benefit
account variable investment options or a Special DCA program. Also, we limit
the number of variable investment options which you may select. In addition, we
may at any time exercise our right to limit or terminate transfers into any of
the variable investment options.
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in a Special DCA program designated for future transfers to
the Protected Benefit account variable investment options will fund your
Guaranteed benefits. These amounts will be used to calculate your Guaranteed
benefit bases and will become part of your Protected Benefit account value.
For example:
You purchase a Series B contract with an initial contribution of $100,000 and
elected the GMIB and the Highest Anniversary Value death benefit. You allocate
$60,000 to the Protected Benefit account variable investment options and
$40,000 to the Investment account variable investment options. The $60,000 will
be included in your Protected Benefit account value and will be used to
calculate your GMIB and Highest Anniversary Value benefit bases. $40,000 will
be included in your Investment account value.
Allocations must be whole percentages and you may change your allocations at
any time. No more than 25% of any contribution to the contract may be allocated
to the guaranteed interest option. The total of your allocations into all
available investment options must equal 100%. We reserve the right to
discontinue, and/or place additional limitations on, contributions and
transfers to any of the variable investment options, including the Protected
Benefit account variable investment options. We also reserve the right to
discontinue acceptance of contributions into the contract. Please see "How you
can purchase and contribute to your contract" and the table in Appendix VIII
for additional information regarding certain limitations on contributions that
may apply to your contract.
It is important to note that the contract is between you and AXA Equitable. The
contract is not an investment advisory account, and AXA Equitable is not
providing any investment advice or managing the allocations under your
contract. In the absence of a specific written arrangement to the contrary,
you, as the owner of the contract, have the sole authority to make investment
allocations and other decisions under the contract. 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 or her regarding any different arrangements
that may apply.
We may offer an optional rebalancing program for amounts allocated to your
Investment account variable investment options and the guaranteed interest
option. For more information, see "Rebalancing among your Investment account
variable investment options and guaranteed interest option" in "Transferring
your money among investment options" later in this Prospectus.
We do not offer an optional rebalancing program for amounts allocated to your
Protected Benefit account variable investment options. You can rebalance your
Protected Benefit account value by submitting a one-time request to rebalance.
See "Rebalancing among your Protected
33
CONTRACT FEATURES AND BENEFITS
Benefit account variable investment options" in "Transferring your money among
investment options" later in this Prospectus.
ALLOCATION INSTRUCTION CHANGES. You may change your instructions for
allocations of future contributions.
TRANSFERS. Once you allocate amounts to the Protected Benefit account variable
investment options, such amounts may be transferred among the Protected Benefit
account variable investment options, but may not be transferred to the
Investment account variable investment options or the guaranteed interest
option. In addition, we may at any time exercise our right to limit or
terminate transfers into any of the variable investment options. See
"Transferring your account value" in "Transferring your money among investment
options."
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. Not all of the programs
described here are available with each Retirement Cornerstone(R) Series
contract. You may only participate in one program at a time. Each program
allows you to gradually allocate amounts to available investment options by
periodically transferring approximately the same dollar amount to the
investment options you select. Regular allocations to the variable investment
options will cause you to purchase more units if the unit value is low and
fewer units if the unit value is high. Therefore, you may get a lower average
cost per unit over the long term.
All amounts in a dollar cost averaging program will be transferred at the
completion of the time period you select. Currently, our Special DCA programs
time periods do not extend beyond 12 months. These plans of investing do not
guarantee that you will earn a profit or be protected against losses.
--------------------------------------------------------------------------------
UNITS MEASURE YOUR VALUE IN EACH VARIABLE INVESTMENT OPTION.
--------------------------------------------------------------------------------
We offer the following dollar cost averaging programs in the Retirement
Cornerstone(R) Series contracts:
.. Special dollar cost averaging;
.. Special money market dollar cost averaging;
.. General dollar cost averaging;
.. Investment simplifier.
The only dollar cost averaging programs that are available to fund your
Guaranteed benefits are special dollar cost averaging and special money market
dollar cost averaging (together, the "Special DCA programs"). Depending on the
Retirement Cornerstone(R) Series contract you own, you will have one of the
Special DCA programs available to you, but not both. The Special DCA programs
allow you to gradually fund your Protected Benefit account value through
systematic transfers to the Protected Benefit account variable investment
options. Amounts allocated to a Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment options
are included in the benefit bases for your Guaranteed benefits. Also, you may
make systematic transfers to the Investment account variable investment options
and the guaranteed interest option. Amounts in the account for special money
market dollar cost averaging are immediately invested in the EQ/Money Market
variable investment option. Only new contributions may be allocated to a
Special DCA program. For information on how a Special DCA program may affect
certain Guaranteed benefits, see "Guaranteed minimum income benefit" and
"Guaranteed minimum death benefits" later in this section.
General dollar cost averaging and Investment simplifier, on the other hand, can
only be used for systematic transfers to your Investment account variable
investment options. Our Investment simplifier program is available for
scheduled transfers from the guaranteed interest option to the Investment
account variable investment options. Our General dollar cost averaging program
is available for scheduled transfers from the EQ/Money Market variable
investment option to the Investment account variable investment options. Below,
we provide detail regarding each of the programs.
Generally, you may not elect both a dollar cost averaging program and a
rebalancing option. The only exception is if you elect our Investment
simplifier program with Option I under our rebalancing programs, which does not
rebalance amounts in the guaranteed interest option. For more information on
our rebalancing programs, see "Rebalancing among your Investment account
variable investment options and guaranteed interest option" in "Transferring
your money among investment options."
We do not deduct a transfer charge for any transfer made in connection with our
dollar cost averaging programs. We may, at any time, exercise our right to
terminate transfers to any of the variable investment options and to limit the
number of variable investment options which you may elect. Not all dollar cost
averaging programs are available in all states. For a state-by-state
description of all material variations of this contract, including information
on the availability of our dollar cost averaging programs in your state, see
Appendix V later in this Prospectus.
OUR SPECIAL DCA PROGRAMS. We currently offer the "Special dollar cost averaging
program" under the Series B contracts and the "Special money market dollar cost
averaging program" under the Series CP(R) contracts.
SPECIAL DOLLAR COST AVERAGING
Under the special dollar cost averaging program, you may dollar cost average
from the account for special dollar cost averaging, which is part of the
general account. We credit daily interest, which will never be less than 1% or
the guaranteed lifetime minimum rate for the guaranteed interest option,
whichever is greater, to amounts allocated to this account. Currently, the
guaranteed lifetime minimum rate is 1.00%. We guarantee to pay the current
interest rate that is in effect on the date that your contribution is allocated
to this account. That interest rate will apply to that contribution as long as
it remains in the account for special dollar cost averaging. The guaranteed
interest rate for the time period that you select will be shown in your
contract for your initial contribution. We set the interest rates periodically,
based on our discretion and according to procedures that we have. We reserve
the right to change these procedures.
We will transfer amounts from the account for special dollar cost averaging
into the investment options you designate over an available time period that
you select. If the special dollar cost averaging program is selected at the
time of the application to purchase the contract, a 60 day rate lock will apply
from the date of application.
34
CONTRACT FEATURES AND BENEFITS
Any contribution(s) received during this 60 day period will be credited with
the interest rate offered on the date of application for the duration of the
special dollar cost averaging time period. Any contribution(s) received after
the 60 day rate lock period has ended will be credited with the then current
interest rate for the duration of the time period selected. Once the time
period you selected has ended, you may select another time period for future
contributions. At that time, you may also select a different allocation for
transfers to the investment options, or, if you wish, we will continue to use
the allocation that you previously made.
SPECIAL MONEY MARKET DOLLAR COST AVERAGING
Under the special money market dollar cost averaging program, you may dollar
cost average from the account for special money market dollar cost averaging,
which is part of the EQ/Money Market variable investment option. We will
transfer amounts from the account for special money market dollar cost
averaging into the Protected Benefit account variable investment options, the
Investment account variable investment options and the guaranteed interest
option over an available time period that you select. One of the primary
benefits of the special money market dollar cost averaging program is that
amounts in the program designated for the Protected Benefit account variable
investment options count toward your Guaranteed benefits on the business day
you establish the program.
-------------------
Under both Special DCA programs, the following applies:
.. Initial contributions to a Special DCA program must be at least $2,000;
subsequent contributions to an existing Special DCA program must be at
least $250;
.. Subsequent contributions to an existing program do not extend the time
period of the program;
.. Contributions into a Special DCA program must be new contributions; you may
not make transfers from amounts allocated to other investment options to
initiate a Special DCA program;
.. We offer time periods of 3, 6 or 12 months. We may also offer other time
periods. You may only have one time period in effect at any time and once
you select a time period, you may not change it;
.. You can enroll in a Special DCA 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 account for special dollar cost averaging or special
money market dollar cost averaging as applicable. The date we receive your
initial contribution will also be the date of the first transfer to the
other variable investment options in accordance with your allocation
instructions for the program. Each subsequent transfer date for the time
period selected will be one month from the date of the previous transfer.
If a transfer date falls on a non-business day, the transfer will be made
on the next business day. We will transfer all amounts by the end of the
chosen time period for your program.
For example, assume you enroll in a 3-month Special DCA program. On the date
we receive your initial contribution (say, $60,000) to the program, your
program becomes effective and the first transfer of $20,000 is made
immediately in accordance with your program's allocation instructions. The
second transfer of $20,000 will be made one month after your first
contribution and the third and final transfer of $20,000 will be made two
months after your first contribution;
.. The only transfers that will be made from your program are your regularly
scheduled transfers to the variable investment options. If you request to
transfer any other amounts from your program, we will transfer all of the
value that you have remaining in the account to the investment options
according to the allocation percentages for the Special DCA program that we
have on file for you, and your program will terminate;
.. Contributions to a Special DCA program may be designated for the Protected
Benefit account variable investment options, the Investment account
variable investment options and/or the guaranteed interest option, subject
to the following:
-- If you want to take advantage of one of our Special DCA programs, 100% of
your contribution must be allocated to either the account for special
dollar cost averaging or the account for special money market dollar cost
averaging. In other words, your contribution cannot be split between the
Special DCA program and any other investment options available under the
contract.
-- Up to 25% of your Special DCA program may be designated for the
guaranteed interest option, even if such a transfer would result in more
than 25% of your Total account value being allocated to the guaranteed
interest option. See "Transferring your account value" in "Transferring
your money among investment options" later in this Prospectus;
.. Your instructions for the program must match your allocation instructions
on file on the day the program is established. If you change your
allocation instructions on file while the Special DCA program is in effect,
the ratio of amounts allocated to the Protected Benefit account to amounts
allocated to the Investment account will not change. However, amounts will
be allocated within each account according to your new instructions;
.. Your Guaranteed benefit base(s) will be increased to reflect any
contribution to the Special DCA program that you have instructed us to
transfer to the Protected Benefit account variable investment options. The
Annual Roll-up rate (or Deferral Roll-up rate, if applicable) in effect on
your contract will apply immediately to any contribution that is designated
to be transferred to the Protected Benefit account variable investment
options. For Series CP(R) contracts, the Annual Roll-up rate (or Deferral
Roll-up rate, if applicable) in effect will not be applied to credits
associated with contributions allocated to the Special DCA program that are
designated to be transferred to the Protected Benefit account variable
investment options;
.. IF WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS AND TRANSFERS INTO THE PROTECTED
BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS, AND YOUR SPECIAL DCA PROGRAM
HAS TRANSFERS SCHEDULED TO THE PROTECTED BENEFIT ACCOUNT VARIABLE
INVESTMENT OPTIONS, THE PROGRAM WILL CONTINUE FOR ITS DURATION. HOWEVER,
SUBSEQUENT CONTRIBUTIONS TO ANY PROTECTED BENEFIT ACCOUNT VARIABLE
INVESTMENT OPTIONS UNDER A SPECIAL DCA PROGRAM WILL NOT BE PERMITTED;
35
CONTRACT FEATURES AND BENEFITS
.. Except for withdrawals made under our Automatic RMD withdrawal service or
our other automated withdrawal programs (systematic withdrawals and
substantially equal withdrawals), or for the assessment of contract
charges, any unscheduled partial withdrawal from your Special DCA program
will terminate your Special DCA program. Any amounts remaining in the
account after the program terminates will be transferred to the destination
investment options according to your Special DCA program allocation
instructions. Any withdrawal which results in a reduction in the Special
DCA program amount previously included in your Guaranteed benefit bases
will reduce the Guaranteed benefit bases as described later in this
Prospectus. See "How withdrawals affect your Guaranteed benefits" later in
this section;
.. Generally, you may not elect both a dollar cost averaging program and a
rebalancing option. The only exception is if you elect our Investment
simplifier program with Option I under our rebalancing programs, which does
not rebalance amounts in the guaranteed interest option. See "Rebalancing
among your Investment account variable investment options and guaranteed
interest option" in "Transferring your money among investment options"
later in this Prospectus to learn more about rebalancing;
.. All of the dollar cost averaging programs available under your Retirement
Cornerstone(R) Series contracts can be selected if you enrolled in our
Systematic transfer program. However, no amounts will be transferred out of
a Special DCA program as part of the Systematic transfer program;
.. A Special DCA program may not be in effect at the same time as a general
dollar cost averaging program;
.. The only dollar cost averaging program available to fund your Guaranteed
benefits is a Special DCA program;
.. You may cancel your participation at any time. If you terminate your
Special DCA program, we will allocate any remaining amounts in your Special
DCA program pursuant to your program allocations on file;
.. If you are dollar cost averaging into the Protected Benefit account
variable investment options when you decide to drop all Guaranteed benefits
("post-funding drop"), we will default future transfers designated for the
Protected Benefit account variable investment options to the corresponding
Investment account variable investment options that invest in the same
underlying Portfolios. Also, you can cancel your Special DCA program and
accelerate all transfers to the corresponding Investment account variable
investment options. See "Dropping or changing your Guaranteed benefits"
later in this section and Appendix I for more information; and
.. We may offer these programs in the future with transfers on a different
basis. Your financial professional can provide information in the time
periods and interest rates currently available in your state, or you may
contact our processing office.
GENERAL DOLLAR COST AVERAGING PROGRAM
If your value in the EQ/Money Market variable investment option is at least
$5,000, you may choose, at any time, to have a specified dollar amount or
percentage of your value transferred from that option to any of the Investment
account variable investment options. For a state-by-state description of all
material variations of this contract, including information on the availability
of our general dollar cost averaging program, see Appendix V later in this
Prospectus.
You can select to have transfers made on a monthly, quarterly or annual basis.
The transfer date will be the same calendar day of the month as the contract
date, but not later than the 28th day of the month. You can also specify the
number of transfers or instruct us to continue making the transfers until all
amounts in the EQ/Money Market variable investment option have been transferred
out. The minimum amount that we will transfer each time is $250. The
instructions for the program may differ from your allocation instructions on
file.
If, on any transfer date, your value in the EQ/Money Market variable investment
option is equal to or less than the amount you have elected to have
transferred, the entire amount will be transferred. The general dollar cost
averaging program will then end. You may change the transfer amount once each
contract year or cancel this program at any time.
You may not participate in our optional rebalancing programs if you elect the
general dollar cost averaging program.
INVESTMENT SIMPLIFIER
FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the
Investment account variable investment options of your choice. Transfers may be
made on a monthly, quarterly or annual basis. You can specify the number of
transfers or instruct us to continue to make transfers until all available
amounts in the guaranteed interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Also, this option is subject to the guaranteed interest
option transfer limitations described under "Transferring your account value"
in "Transferring your money among investment options" later in this Prospectus.
While the program is running, any transfer that exceeds those limitations will
cause the program to end for that contract year. You will be notified if this
occurs. You must send in a request form to resume the program in the next or
subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, provided the transfer complies with the same
guaranteed interest option transfer limitations referenced above. If the
transfer does not comply with the transfer limitations, the transfer will not
be made and the program will end. You may change the transfer amount once each
contract year or cancel this program at any time.
INTEREST SWEEP OPTION. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the Investment
account variable investment options of your choice. The transfer date will be
the last business day of the month. The amount we will transfer will be the
interest credited to amounts you have in the guaranteed interest option from
the last business day of the prior month to the last business day of the
current month. You must have at least $7,500 in the guaranteed interest option
on the date we receive
36
CONTRACT FEATURES AND BENEFITS
your election. If the amount in the guaranteed interest option falls below
$7,500 at the beginning of the month, no transfer will be made that month. We
will automatically cancel the interest sweep program if the amount in the
guaranteed interest option is less than $7,500 on the last day of the month for
two months in a row. For the interest sweep option, the first monthly transfer
will occur on the last business day of the month following the month that we
receive your election form at our processing office. Transfers under the
Interest sweep option are subject to the guaranteed interest option transfer
limitations described under "Transferring your account value" in "Transferring
your money among investment options" later in this Prospectus.
CREDITS AND EARNINGS BONUS (FOR SERIES CP(R) CONTRACTS)
Under certain circumstances credits and the Earnings bonus will be allocated to
your Total account value. We do not include these amounts in calculating any of
your Guaranteed benefit bases under the contract, except to the extent that any
credits and the Earnings bonus are part of the Protected Benefit account value,
which is used to calculate the Highest Anniversary Value benefit base or a
benefit base reset in connection with the GMIB benefit base or the Roll-up to
age 80 benefit base (used to calculate the "Greater of" death benefit). Credits
and Earnings bonus are included in the assessment of any charge that is based
on your Total account value. Credits and Earnings bonus are also not considered
to be part of your investment in the contract for tax purposes. For more
information on how credits and the Earnings bonus affect your benefit bases,
see "Series CP(R), and your Guaranteed benefit bases" later in this section.
We use a portion of the operations charge and withdrawal charge to help recover
our cost of providing the credit and Earnings bonus. We expect to make a profit
from these charges. See "Charges and expenses" later in this Prospectus. The
charge associated with the credit may, over time, exceed the sum of the credit
and any related earnings. While we cannot state with any certainty when this
will happen, we believe that it is likely that if you hold your Series CP(R)
contract for more than 10 years, you may be better off in a contract without a
credit, and with a lower operations charge. Your actual results will depend on
the investment returns on your contract. Therefore, if you plan to hold the
contract for an extended period of time, you may wish to consider purchasing a
contract that does not include a credit. You should consider this possibility
before purchasing the contract.
For a state-by-state description of all material variations of the contracts,
including information on the recovery of credits, see Appendix V later in this
Prospectus.
CREDITS ON CONTRIBUTIONS. A credit will be allocated to your Total account
value at the same time that we allocate your contribution. Credits are
allocated to the same investment options based on the same percentages used to
allocate your contributions. The amount of the credit will be 3% of each
contribution. This credit percentage will be credited to your initial
contribution and each eligible subsequent contribution. THE CREDIT WILL APPLY
TO SUBSEQUENT CONTRIBUTIONS ONLY TO THE EXTENT THAT THE SUM OF THAT
CONTRIBUTION AND PRIOR CONTRIBUTIONS TO WHICH NO CREDIT WAS APPLIED EXCEEDS THE
TOTAL WITHDRAWALS MADE FROM THE CONTRACT SINCE THE ISSUE DATE. THE CREDIT WILL
NOT BE APPLIED IN CONNECTION WITH A PARTIAL CONVERSION OF A TRADITIONAL IRA
CONTRACT TO A ROTH IRA CONTRACT.
For example, assume you make an initial contribution of $100,000 to your
contract with the entire amount allocated to the Investment account. Your
Investment account is credited with $3,000 (3% x $100,000). After that, you
decide to withdraw $7,000 from your contract. Later, you make a subsequent
contribution of $3,000 to the Investment account. You receive no credit on your
$3,000 contribution since it does not exceed your total withdrawals ($7,000).
Further assume that you make another subsequent contribution of $10,000 to the
Investment account. At that time, your Investment account will be credited with
$180 [3% x (10,000 + 3,000 - 7,000)].
CREDIT RECOVERY. We do not recover amounts associated with the Earnings bonus.
We will recover all or a portion of the credits on contributions in the
following situations:
.. If you exercise your right to cancel the contract, we will recover the
entire credit made to your contract (see "Your right to cancel within a
certain number of days" later in this Prospectus). Also, you will not be
reimbursed for any charges deducted before cancellation, except in states
where we are required to return the amount of your contributions. In states
where we return your Total account value or cash value, the amount we
return to you upon cancellation will reflect any investment gain or loss in
the variable investment options (less the daily charges we deduct)
associated with your contributions and the full amount of the credit. See
"Charges and expenses" later in this Prospectus for more information.
.. If you start receiving annuity payments within three years of making any
contribution, we will recover the credit that applies to any contribution
made within the prior three years.
.. If the owner (or older joint owner, if applicable) dies during the one-year
period following our receipt of a contribution to which a credit was
applied, we will recover the amount of such credit.
For example:
You make an initial contribution of $100,000 to your contract and your Total
account value is credited with $3,000 (3% x $100,000). If you (i) exercise your
right to cancel the contract, (ii) start receiving annuity payments within
three years of making the contribution, or (iii) die during the one-year period
following the receipt of the contribution, we will recapture the entire credit
and reduce your Total account value by $3,000.
When we recover any portion of a credit, we take the dollar amount of the
credit from your investment options on a pro rata basis and the guaranteed
interest option. We do not include credits in the calculation of any withdrawal
charge.
EARNINGS BONUS. An amount equal to 5% of your annual investment gains, called
an Earnings bonus, will be added to your Total account value on each contract
date anniversary that your Total account value is greater than your account
value peak. At contract issue, your account value peak equals your initial
contribution plus any eligible credit on your contribution. Your account value
peak is increased by subsequent contributions, including any corresponding
credits on those contributions. Your account value peak is NOT decreased by
withdrawals. On each contract date anniversary, we will determine if you have
investment gains by comparing your Total account value to your account value
peak. If your account value peak is greater than your Total account value, you
have no investment gains available for the
37
CONTRACT FEATURES AND BENEFITS
Earnings bonus. If your Total account value is greater than your account value
peak, your gains will equal your Total account value minus your current account
value peak and we will increase your Total account value by an amount equal to
5% of your gains. The increase to your Total account value will occur after any
applicable optional benefit base ratchet or reset. Your new account value peak
will then equal your increased Total account value.
The Earnings bonus will be allocated to your Investment account value and your
Protected Benefit account value in proportion to your investment in those
accounts as of that contract date anniversary. Furthermore, the Earnings bonus
will be allocated within each account according to your allocation instructions
on file. If you do not have allocation instructions on file, the Earnings bonus
will be allocated among your investment options in proportion to your
investments on that date.
For example, assume you make an initial contribution of $100,000 to your
contract. Your Total account value increases by a $3,000 credit on
contributions (3% x $100,000). Your account value peak is $103,000. Later, you
make a subsequent contribution of $100,000. Your Total account value increases
by an additional $3,000 credit on contributions (3% x $100,000). Your
subsequent contribution increases your account value peak to $206,000 ($103,000
+ $103,000). Assume you make no further contributions and on your next contract
date anniversary your Total account value is $240,000. Your Total account value
($240,000) is greater than your account value peak ($206,000) and your gain is
$34,000 ($240,000 - $206,000). Your Earnings bonus on your investment gain is
$1,700 (5% x $34,000). Your new Total account value is increased to $241,700,
which is also your new account value peak.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the GMIB and annuity payout options. The GMIB is discussed under
''Guaranteed minimum income benefit (''GMIB'')'' below and annuity payout
options are discussed under ''Your annuity payout options'' in ''Accessing your
money'' later in this Prospectus. Annuity purchase factors are based on
interest rates, mortality tables, frequency of payments, the form of annuity
benefit, and the owner's (and any joint owner's) age and sex in certain
instances. We may provide more favorable current annuity purchase factors for
the annuity payout options.
GUARANTEED MINIMUM INCOME BENEFIT
This section describes the Guaranteed minimum income benefit, or "GMIB". The
GMIB guarantees, subject to certain restrictions, annual lifetime payments
("Lifetime GMIB payments") that are calculated by applying your GMIB benefit
base, less any applicable withdrawal charge remaining, to guaranteed annuity
purchase factors. You choose whether you want the option to be paid on a single
or joint life basis at the time the GMIB is exercised.
Lifetime GMIB payments will begin at the earliest of:
(i)the next contract year following the date your Protected Benefit account
value falls to zero (provided the no lapse guarantee is in effect);
(ii)the contract date anniversary following your 95th birthday; or
(iii)your election to exercise the GMIB.
We reserve the right to change the annuity option or make other forms of payout
options available at any time. For a description of payout options, see "Your
annuity payout options" in "Accessing your money" later in this Prospectus.
When you exercise the GMIB, the annual lifetime income that you will receive
will be the greater of (i) your GMIB which is calculated by applying your GMIB
benefit base, less any applicable withdrawal charge remaining (if exercised
prior to age 95), to GMIB guaranteed annuity purchase factors, or (ii) the
income provided by applying your Protected Benefit account value to our then
current annuity purchase factors or base contract guaranteed annuity purchase
factors. The GMIB benefit base is applied only to the guaranteed annuity
purchase factors under the GMIB in your contract and not to any other
guaranteed or current annuity purchase rates. Your Total account value is never
applied to the guaranteed annuity purchase factors under GMIB. The amount of
income you actually receive will be determined when we receive your request to
exercise the benefit.
If there is no Investment account value remaining when you elect to receive
annual lifetime income, your contract (including its death benefit and any
account or cash values) will terminate and you will receive a new contract for
the annuity payout option. For a discussion of when your payments will begin
and end, see "Exercise of Guaranteed minimum income benefit" below.
BEFORE YOU ELECT THE GMIB, YOU SHOULD CONSIDER THE FACT THAT IT PROVIDES A FORM
OF INSURANCE AND IS BASED ON CONSERVATIVE ACTUARIAL FACTORS. THEREFORE, EVEN IF
YOUR PROTECTED BENEFIT ACCOUNT VALUE IS LESS THAN YOUR BENEFIT BASE, YOU MAY
GENERATE MORE INCOME BY APPLYING YOUR PROTECTED BENEFIT ACCOUNT VALUE TO
CURRENT ANNUITY PURCHASE FACTORS. We will make this comparison for you upon
request.
Surrendering your contract will terminate your GMIB. Please see "Surrendering
your contract to receive its cash value" in "Accessing your money" later in
this Prospectus.
The GMIB also allows you to take certain withdrawals (your "Annual withdrawal
amount") prior to the beginning of your Lifetime GMIB payments without reducing
your GMIB benefit base. Your Annual withdrawal amount for the next contract
year is calculated each contract date anniversary by applying a percentage
("the Annual Roll-up rate") to your GMIB benefit base. Lifetime GMIB payments
and your Annual withdrawal amount are described later in this section. With
respect to your GMIB, it is important to note the following:
.. Once a withdrawal is taken from your Protected Benefit account, you cannot
make additional contributions to your Protected Benefit account, either
directly or through a Special DCA program. You can, however, continue to
make transfers from your Investment account to the Protected Benefit
account variable investment options until such time you make a subsequent
contribution to your Investment account at which point transfers into the
Protected Benefit account will no longer be available. Scheduled transfers
from an existing Special DCA program will continue, even after such
subsequent contribution is made to the Investment account.
.. Withdrawals in excess of your Annual withdrawal amount (an "Excess
withdrawal") can greatly reduce the value of your GMIB. An Excess
withdrawal that reduces your Protected Benefit account value to zero will
cause your GMIB to terminate.
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CONTRACT FEATURES AND BENEFITS
In order to fund your Guaranteed minimum income benefit, you must make
contributions or transfers to the Protected Benefit account.
The GMIB can be elected by owners age [45] - 80 (ages [45] - 70 for Series
CP(R)) and with all contract types except Inherited IRA. If the contract is
jointly owned, eligibility for the GMIB will be based on the older owner's age.
The GMIB cannot be added to your contract at a later date, if you do not elect
this benefit at issue.
You can drop your GMIB at any time prior to funding your Protected Benefit
account. If you fund your Protected Benefit account at issue, you can drop your
GMIB provided that all contributions to the contract are no longer subject to
withdrawal charges. If you fund your Protected Benefit account after issue, you
cannot drop the GMIB until the later of (i) the contract date anniversary
following the date the Protected Benefit account is funded, and (ii) the
expiration of all withdrawal charges. It is important to note that if you
decide to drop your GMIB, either before or after funding your Protected Benefit
account, your Guaranteed minimum death benefit may be affected. Please see
"Dropping or changing your Guaranteed benefits" later in this section and
Appendix I for more information.
When you purchase a contract with the GMIB, you can combine it with one of our
Guaranteed minimum death benefits: (i) the Return of Principal death benefit,
(ii) the Highest Anniversary Value death benefit, or (iii) the "Greater of"
death benefit. The GMIB cannot be combined with the "Greater of" death benefit
if you are age 66 or older at the time your contract is issued. The GMIB cannot
be combined with the RMD Wealth Guard death benefit.
There is an additional charge for the GMIB which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus.
If you elected the GMIB and change ownership of the contract, this benefit will
automatically terminate, except under certain circumstances. See "Transfers of
ownership, collateral assignments, loans and borrowing" in "More information,"
later in this Prospectus.
--------------------------------------------------------------------------------
THE GUARANTEED MINIMUM INCOME BENEFIT SHOULD BE REGARDED AS A SAFETY NET ONLY.
--------------------------------------------------------------------------------
GMIB BENEFIT BASE
Your GMIB has a benefit base that determines your Annual withdrawal amount and
your Lifetime GMIB payments. We apply a Roll-up rate to your GMIB benefit base.
At contract issue, a Lock-in Rate, which we refer to as the GMIB Multi-Year
Lock, will be used to determine your Roll-up rate during your first [five]
contract years. See "Annual Roll-up rate", "Deferral Roll-up rate" and "New
business rates" later in this Prospectus for more information.
Your GMIB benefit base is not an account value or cash value. The GMIB benefit
base is used to calculate your Lifetime GMIB payments, your Annual withdrawal
amount and the charge for the benefit. Your GMIB benefit base is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through a
Special DCA program; plus
.. Any amounts in a Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options; plus
.. Any transfers to the Protected Benefit account variable investment options;
less
.. A deduction that reflects any "Excess withdrawal" amounts (plus any
applicable withdrawal charges); less
.. A deduction that reflects (a) in the contract year of first funding, the
dollar amount of any RMD from the Protected Benefit account taken through
our RMD program and (b) in the subsequent contract years, the dollar amount
of any RMD from the Protected Benefit account in excess of the Annual
withdrawal amount taken through our RMD program; plus
.. "Deferral Roll-up amount" OR any "Annual Roll-up amount", minus a deduction
that reflects any withdrawals up to the Annual withdrawal amount. A
withdrawal from your Protected Benefit account in the first contract year
in which the Protected Benefit account is funded is an Excess withdrawal.
Any such withdrawal will reduce (i) your Roll-up to age 80 benefit base on
a pro rata basis (if you elected a "Greater of" death benefit) and (ii)
your Annual Roll-up amount on a dollar-for-dollar basis, but not less than
zero. (Withdrawal charges do not apply to amounts withdrawn up to the
Annual withdrawal amount.)
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EITHER THE DEFERRAL ROLL-UP AMOUNT OR THE ANNUAL ROLL-UP AMOUNT IS CREDITED TO
THE BENEFIT BASES OF YOUR GUARANTEED BENEFITS ON EACH CONTRACT DATE
ANNIVERSARY. THESE AMOUNTS ARE CALCULATED BY TAKING INTO ACCOUNT YOUR GMIB
BENEFIT BASE FROM THE PRECEDING CONTRACT DATE ANNIVERSARY, THE APPLICABLE
ROLL-UP RATE UNDER YOUR CONTRACT, CONTRIBUTIONS AND TRANSFERS TO THE PROTECTED
BENEFIT ACCOUNT DURING THE CONTRACT YEAR AND FOR THE ANNUAL ROLL-UP AMOUNT, ANY
WITHDRAWALS UP TO THE ANNUAL WITHDRAWAL AMOUNT DURING THE CONTRACT YEAR. A
WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT IN THE FIRST CONTRACT YEAR IN
WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED IS AN EXCESS WITHDRAWAL. ANY SUCH
WITHDRAWAL WILL REDUCE (I) YOUR ROLL-UP TO AGE 80 BENEFIT BASE ON A PRO RATA
BASIS (IF YOU ELECTED A "GREATER OF" DEATH BENEFIT) AND (II) YOUR ANNUAL
ROLL-UP AMOUNT ON A DOLLAR-FOR-DOLLAR BASIS, BUT NOT LESS THAN ZERO. HOWEVER, A
RMD WITHDRAWAL FROM OUR RMD PROGRAM WILL NOT REDUCE YOUR ANNUAL ROLL-UP AMOUNT
IN THE YEAR YOU FIRST FUND YOUR PROTECTED BENEFIT ACCOUNT. THE CALCULATION OF
BOTH THE DEFERRAL ROLL-UP AMOUNT AND THE ANNUAL ROLL-UP AMOUNT ARE DISCUSSED
LATER IN THIS SECTION.
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Beginning in the contract year that follows the contract year in which you fund
your Protected Benefit account, if your Lifetime GMIB payments have not begun,
you can withdraw up to your Annual withdrawal amount without reducing your GMIB
benefit base. However, those same withdrawals will reduce the Annual Roll-up
amount that would otherwise be applied to the GMIB benefit base at the end of
the contract year. Remember that the Roll-up amount applicable under your
contract does not become part of your GMIB benefit base until the end of the
contract year. THE PORTION OF ANY WITHDRAWAL IN EXCESS OF YOUR ANNUAL
WITHDRAWAL AMOUNT WILL REDUCE YOUR GMIB BENEFIT BASE ON A PRO RATA BASIS. SEE
"ANNUAL WITHDRAWAL AMOUNT" LATER IN THIS SECTION.
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your GMIB benefit base will
automatically "reset" to equal the Protected Benefit account value, if higher,
on every contract date anniversary from your contract date, up to the contract
date anniversary following your 95th birthday or contract maturity, if earlier.
See "Annual reset options" later in this section.
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CONTRACT FEATURES AND BENEFITS
Only amounts you allocate to the Protected Benefit account variable investment
options and amounts in a Special DCA program designated for the Protected
Benefit account variable investment options will fund your GMIB. These amounts
will be included in your GMIB benefit base and will become part of your
Protected Benefit account value. See "Allocating your contributions" earlier in
this section for more information.
For example:
You purchase a Retirement Cornerstone(R) -- Series B contract with an initial
contribution of $100,000 and allocate $60,000 to the Protected Benefit account
variable investment options and $40,000 to the Investment account variable
investment options. Your initial GMIB benefit base will be $60,000.
You can fund your GMIB benefit by allocating money to the Protected Benefit
account variable investment options (either directly or through a special DCA
program) immediately or at some later date. Allocations to the Protected
Benefit account variable investment options also fund your Guaranteed minimum
death benefit.
Your "Deferral Roll-up amount" and "Annual Roll-up amount" are described below.
Your GMIB benefit base stops "rolling up" on the contract date anniversary
following the owner's (or older joint owner's, if applicable) 95th birthday. If
the annuitant is older than the owner, the contract maturity date (the point at
which Lifetime GMIB payments must begin and Roll-ups will end) will precede the
owner's 95th birthday.
For contracts with non-natural owners, the GMIB benefit base will be based on
the annuitant's (or older joint annuitant's) age.
The amount of the deduction for an "Excess withdrawal" and the deduction for
the Annual withdrawal amount are described under "How withdrawals affect your
Guaranteed benefits" later in this section. The amount of any withdrawal charge
is described under "Withdrawal charge" in "Charges and expenses" later in this
Prospectus.
For Series CP(R) contracts only, any credit amounts attributable to your
contributions or Earnings bonus are not included in your GMIB benefit base.
This includes credit or Earnings bonus amounts transferred from your Investment
account. Credit and Earnings bonus amounts allocated to your Investment account
are always considered transferred first. Amounts transferred in excess of
credit or Earnings bonus amounts, which may include earnings on these amounts,
will increase your GMIB benefit base. All transfers, however, will increase
your Protected Benefit account value by the total amount of the transfer.
For example, you make an initial contribution of $100,000 and allocate the
entire $100,000 to the Investment account variable investment options. Your
Investment account is credited with $3,000 (3% x $100,000). Assume you later
transfer $4,000 to the Protected Benefit account variable investment options,
which represents the credit amount plus earnings, some of which are
attributable to the credit amount. Your GMIB benefit base would equal $1,000
($4,000 - $3,000). However, your Protected Benefit account value would still
increase by the transfer, which in this example is $4,000. For more
information, see "Series CP(R) contracts and your Guaranteed benefit bases"
below.
As discussed earlier in this section, your GMIB benefit base is not an account
value or cash value. As a result, the GMIB benefit base cannot be split or
divided in any proportion in connection with a divorce. See "How divorce may
affect your Guaranteed benefits" in "More information."
Please see Appendix III later in this Prospectus for an example of how the GMIB
benefit base is calculated.
You do not have an Annual withdrawal amount in the first contract year in which
you fund your Protected Benefit account. A withdrawal from your Protected
Benefit account in the first contract year in which you fund the Protected
Benefit account will reduce your GMIB benefit base on a pro rata basis.
Beginning with the contract year that follows the contract year in which you
fund your Protected Benefit account, if your Lifetime GMIB payments have not
begun, withdrawals up to your Annual withdrawal amount will not reduce your
GMIB benefit base. The portion of a withdrawal in excess of your Annual
withdrawal amount will reduce your GMIB benefit base on a pro rata basis. See
"Annual withdrawal amount" later in this section.
GMIB BENEFIT BASE RESET
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your GMIB benefit base will
automatically "reset" to equal the Protected Benefit account value, if higher,
on every contract date anniversary from the date you first fund your Protected
Benefit account, up to the contract date anniversary following your 95th
birthday or contract maturity, if earlier. You must notify us in writing that
you want to opt out of any automatic reset program. You can send us a written
request to opt back in to an automatic reset program at a later date. We
reserve the right to change or discontinue our reset programs at any time.
For Series CP(R) contracts, on your contract date anniversary any credit or
Earnings bonus amounts that are part of your Protected Benefit account value
are included in the calculation of your GMIB benefit base reset. If you are
eligible for an Earnings bonus on your contract date anniversary, the amount of
the Earnings bonus will be credited to your Total account value after any reset
is calculated. If a reset occurs, your Guaranteed benefit base(s) will not be
increased by amounts associated with the Earnings bonus on that contract date
anniversary.
If a reset is not applicable on your contract date anniversary, the GMIB
benefit base will not be eligible to be reset again until the next contract
date anniversary. For jointly-owned contracts, eligibility to reset the GMIB
benefit base is based on the age of the older owner. For non-naturally owned
contracts, eligibility is based on the age of the annuitant or older joint
annuitant.
ANNUAL RESET OPTIONS. We will send you a notice in each year that the GMIB
benefit base is eligible to be reset. If you are not enrolled in either the
automatic annual reset program or the automatic customized reset program you
will have 30 days from your contract date anniversary to request a reset. At
any time, you may choose one of the three available reset methods: one-time
reset option, automatic annual reset program or automatic customized reset
program. IF, AT THE TIME OF APPLICATION, YOU DO NOT DECLINE THE AUTOMATIC
ANNUAL RESET PROGRAM OR ELECT A DIFFERENT ANNUAL RESET OPTION, YOU WILL BE
ENROLLED IN THE AUTOMATIC ANNUAL RESET PROGRAM.
40
CONTRACT FEATURES AND BENEFITS
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ONE-TIME RESET OPTION -- RESETS YOUR GMIB BENEFIT BASE ON A SINGLE CONTRACT
DATE ANNIVERSARY.
AUTOMATIC ANNUAL RESET PROGRAM -- AUTOMATICALLY RESETS YOUR GMIB BENEFIT BASE
ON EACH CONTRACT DATE ANNIVERSARY YOU ARE ELIGIBLE FOR A RESET.
AUTOMATIC CUSTOMIZED RESET PROGRAM -- AUTOMATICALLY RESETS YOUR GMIB BENEFIT
BASE ON EACH CONTRACT DATE ANNIVERSARY, IF ELIGIBLE, FOR THE PERIOD YOU
DESIGNATE.
--------------------------------------------------------------------------------
One-time reset requests will be processed as follows:
(i)if your request is received within 30 days following your contract date
anniversary, your GMIB benefit base will be reset, if eligible, as of that
contract date anniversary. If your GMIB benefit base was not eligible for a
reset on that contract date anniversary, your one-time reset request will be
terminated;
(ii)if your request is received outside the 30 day period following your
contract date anniversary, your GMIB benefit base will be reset, if
eligible, on the next contract date anniversary. If your GMIB benefit base
is not eligible for a reset, your one-time reset request will be terminated.
Once your one-time reset request is terminated, you must submit a new request
in order to reset your benefit base.
If you wish to cancel your elected reset program, your request must be received
by our processing office at least one business day prior to your contract date
anniversary to terminate your reset program for such contract date anniversary.
Cancellation requests received after this window will be applied the following
year. A reset cannot be cancelled after it has occurred. For more information,
see ''How to reach us'' earlier in this Prospectus.
EFFECT OF GMIB BENEFIT BASE RESETS. IT IS IMPORTANT TO NOTE THAT ONCE YOU HAVE
RESET YOUR GMIB BENEFIT BASE, A NEW WAITING PERIOD TO EXERCISE THE GMIB WILL
APPLY FROM THE DATE OF THE RESET. YOUR NEW EXERCISE DATE WILL BE THE TENTH
CONTRACT DATE ANNIVERSARY FOLLOWING THE RESET OR, IF LATER, THE EARLIEST DATE
YOU WOULD HAVE BEEN PERMITTED TO EXERCISE WITHOUT REGARD TO THE RESET, BUT IN
NO EVENT WILL IT BE LATER THAN THE CONTRACT DATE ANNIVERSARY FOLLOWING AGE 95.
See ''Exercise rules'' and ''How withdrawals affect your Guaranteed benefits''
below for more information. Please note that in most cases, resetting your GMIB
benefit base will lengthen the exercise waiting period. Also, even when there
is no additional charge when you reset your Roll-up benefit base, the total
dollar amount charged on future contract date anniversaries may increase as a
result of the reset since the charges may be applied to a higher benefit base
than would have been otherwise applied. See ''Charges and expenses'' later in
this Prospectus.
Owners of traditional IRA or QP contracts should consider the effect of the
waiting period on the requirement to take lifetime required minimum
distributions before resetting the GMIB benefit base. If a QP contract is
converted to an IRA, in a direct rollover, the waiting period for the reset
under the IRA contract will include any time that the QP contract was a funding
vehicle under the plan. If a traditional IRA contract owner or a plan
participant must begin taking lifetime required minimum distributions during
the 10-year waiting period, the individual may want to consider taking the
annual lifetime required minimum distribution calculated for the contract from
another permissible contract or funding vehicle. See ''How withdrawals affect
your Guaranteed benefits'' later in this section and ''Lifetime required
minimum distribution withdrawals'' in ''Accessing your money.'' Also, see
''Required minimum distributions'' under ''Individual retirement arrangements
(IRAs)'' in ''Tax information'' and Appendix II -- ''Purchase considerations
for QP Contracts'' later in this Prospectus.
ANNUAL ROLL-UP RATE
The Annual Roll-up rate is used to calculate your Annual withdrawal amount. It
is also used to calculate amounts credited to your GMIB benefit base for the
contract year in which the first withdrawal is made from your Protected Benefit
account and all subsequent contract years. A different Roll-up rate is used to
calculate amounts credited to your GMIB benefit base in the contract years
prior to the first withdrawal from your Protected Benefit account -- it is
called the "Deferral Roll-up rate". The Deferral Roll-up rate is described
below.
The Annual Roll-up rate is variable and is tied to the Ten-Year Treasuries
Formula Rate described below, but the minimum rate will never be less than [4]%
under the GMIB Multi-Year Lock (described in "New business rates" later in this
Prospectus), or greater than 8% in all contract years. The Annual Roll-up rate
will be set at our discretion, subject to the stated minimum. We reserve the
right, however, to declare an Annual Roll-up rate that is greater than 8%.
.. TEN-YEAR TREASURIES FORMULA RATE. For each calendar quarter, this rate is
the average of the rates for the ten-year U.S. Treasury notes on each day
for which such rates are reported during the 20 calendar days ending on the
15th day of the last month of the preceding calendar quarter, plus 1.00%,
rounded to the nearest 0.10%. U.S. Treasury rates will be determined from
the Federal Reserve Board Constant Maturity Series or such comparable rates
as may be published by the Federal Reserve Board or generally available
reporting services if the Federal Reserve Board Constant Maturity Series is
discontinued.
DEFERRAL ROLL-UP RATE
The Deferral Roll-up rate is only used to calculate amounts credited to your
GMIB benefit base through the end of the contract year that precedes the
contract year in which the first withdrawal is made from your Protected Benefit
account. The Deferral Roll-up rate is never used to calculate your Annual
withdrawal amount under the GMIB.
Beginning with the first contract year in which you fund your Protected Benefit
account, the Roll-up amount credited to your GMIB benefit base at the end of
the contract year (the "Deferral Roll-up amount") will be calculated using the
Deferral Roll-up rate. Once you take a withdrawal from your Protected Benefit
account, the Deferral Roll-up amount will not be credited at the end of the
contract year in which the withdrawal was taken and will terminate for the life
of the contract. Instead, the Annual Roll-up amount will be credited.
The Deferral Roll-up rate is designed as an incentive to defer taking your
first withdrawal from your Protected Benefit account until later contract years
while potentially building greater Guaranteed benefit bases with a higher
Roll-up rate.
The Deferral Roll-up rate is variable and is tied to the Deferral Ten-Year
Treasuries Formula Rate described below. The minimum Deferral Roll-up rate will
never be less than [4]% under the GMIB
41
CONTRACT FEATURES AND BENEFITS
Multi-Year Lock, or greater than 8% in all contract years up until the first
withdrawal from the Protected Benefit account. The Deferral Roll-up rate will
be set at our discretion, subject to the stated minimum. We reserve the right,
however, to declare a Deferral Roll-up rate that is greater than 8%.
.. DEFERRAL TEN-YEAR TREASURIES FORMULA RATE. For each calendar quarter, this
rate is the average of the rates for the ten-year U.S. Treasury notes on
each day for which such rates are reported during the 20 calendar days
ending on the 15th day of the last month of the preceding calendar quarter,
plus 2.00%, rounded to the nearest 0.10%. U.S. Treasury rates will be
determined from the Federal Reserve Board Constant Maturity Series or such
comparable rates as may be published by the Federal Reserve Board or
generally available reporting services if the Federal Reserve Board
Constant Maturity Series is discontinued.
As described above, both the Annual Roll-up rate and the Deferral Roll-up rate
will never be less than [4]% under the GMIB Multi-Year Lock, or greater than 8%
in all contract years. Based on the underlying formula rates that are used in
arriving at the two Roll-up rates, it is expected that the Deferral Roll-up
rate will generally be 1.00% greater than the Annual Roll-up rate. However,
this is not guaranteed. In certain interest rate environments, the Deferral
Roll-up rate may not always be 1.00% greater than the Annual Roll-up rate. In
some cases, it may be more or less than 1.00% greater than the Annual Roll-up
rate. Similarly, the Lock-in Rate may be more or less than 1.00% greater than
the Annual Roll-up rate.
Examples:
1. Assume the calculation of Ten-Year Treasuries Formula Rate results in
an Annual Roll-up rate of 2.75% and the calculation of the Deferral Ten-Year
Treasuries Formula Rate results in a Deferral Roll-up rate of 4.25%. Since
the Annual Roll-up rate is subject to a guaranteed minimum of 4%, the Annual
Roll-up rate would be 4%. The Deferral Roll-up rate would remain 4.25%
having met the same guaranteed minimum.
2. Assume the calculation of Ten-Year Treasuries Formula Rate results in
an Annual Roll-up rate of 7.25% and the calculation of the Deferral Ten-Year
Treasuries Formula Rate results in a Deferral Roll-up rate of 8.25%. Since
the Annual Roll-up rate is below the guaranteed maximum of 8%, the Annual
Roll-up rate would remain 7.25%. The Deferral Roll-up rate would be 8%
because it would have exceeded our guaranteed maximum.
It is important to note that on each contract date anniversary, we will apply
either the Annual Roll-up rate or the Deferral Roll-up rate to your GMIB
benefit base based on whether you have ever taken a withdrawal from the
Protected Benefit account. In statements we provide you, we will show you the
Roll-up amounts under both rate scenarios. Once you take a withdrawal from your
Protected Benefit account, the Deferral Roll-up rate will no longer be shown on
your statements.
NEW BUSINESS RATES. A Lock-in Rate, which we refer to as the GMIB Multi-Year
Lock, will apply during your first [five] contract years, and the minimum
Roll-up Rate for each contract year will be the greater of the Lock-in Rate or
the Ten-Year Treasuries Formula Rate. The Lock-in Rate is the Roll-up rate in
effect at the time your contract is issued (subject to the 75 Day rate lock-in
rule described below). After your first [five] contract years, the Roll-up rate
will never be less than [4]% or, if greater, the Ten-Year Treasuries Formula
Rate. Under the GMIB Multi-Year Lock, the Roll-up rate will never be greater
than 8%.
Once a contract is issued with the Annual Roll-up and Deferral rates that are
in effect for new business, those rates will be applicable for the time periods
described above. Any transfers or contributions to the Protected Benefit
account variable investment options, either directly or through a Special DCA
program that are designated for future transfers to the Protected Benefit
account variable investment options during the time period in which the Lock-in
Rates are in effect will get the Lock-in Rates as described above.
The Lock-in Rates are no longer applicable after the duration specified in your
contract.
75 DAY RATE LOCK-IN. If your initial contribution is received at our processing
office within 75 days of the date you sign your application, your initial
Annual Roll-up rate and Deferral Roll-up rate will be as follows: if either the
Deferral Roll-up rate or the Annual Roll-up rate is lower on the date your
contract is issued than on the date you signed your application, your contract
will be issued with the Roll-up rates in effect on the date you signed your
application. However, if on the date your contract is issued one Roll-up rate
is higher and the other Roll-up rate is at least equal to the rate in effect on
the date you signed your application or both Roll-up rates are higher than the
Roll-up rates on the date you signed your application, your contract will be
issued with the Roll-up rates in effect on the date your contract is issued. If
we do not receive your initial contribution within 75 days of the date you sign
your application, then your initial Annual Roll-up rate and Deferral Roll-up
rate will be the rates in effect on the date we issue your contract. However,
our procedures may result in the return of your application if we do not
receive your initial contribution within 75 days of the date you sign your
application. For a state-by-state description of all material variations of
this contract, including whether a different rate lock-in period applies in
your state, see Appendix V later in this Prospectus.
EXAMPLES:
.. You sign your application for Retirement Cornerstone(R) Series contract on
September 15th. On that date the Annual Roll-up rate and Deferral Roll-up
rates are 4.50% and 5.50%, respectively. Your initial contribution is
received by way of a roll-over contribution on October 5th and the contract
is issued the same day. On that date the Annual Roll-up rate and Deferral
Roll-up rates are 4.25% and 5.25%, respectively. In this example, your
contract will be issued with the rates that were "locked in" at the time
you signed your application, not the lower rates that were in effect on the
date your contract was issued.
.. You sign your application for Retirement Cornerstone(R) Series contract on
October 15th. On that date the Annual Roll-up rate and Deferral Roll-up
rates are 4.50% and 5.00%, respectively. Your initial contribution is
received by way of a rollover contribution on November 5th and the contract
is issued the same day. On that date the Annual Roll-up rate and Deferral
Roll-up rates are 4.75% and 5.25%, respectively. In this example, your
contract will be issued with the rates that were in effect at the time your
contract was issued, not the lower rates that were in effect on the date
your application was signed.
42
CONTRACT FEATURES AND BENEFITS
Following the conclusion of the period during which we use the GMIB Multi-Year
Lock to determine your Roll-up rate (as described above in "New business
rates"), renewal rates will apply.
RENEWAL RATES. After the Lock-in Rates are no longer in effect, a new Annual
Roll-up rate will apply to your contract. A new Deferral Roll-up rate will also
apply provided you have never taken a withdrawal from your Protected Benefit
account. These "Renewal rates" will never be less than [4]% under the GMIB
Multi-Year Lock, or, if greater, the underlying Ten-Year Treasuries Formula
Rate (for the Annual Roll-up rate) and Deferral Ten-Year Treasuries Formula
Rate (for the Deferral Roll-up rate).
These Renewal rates may be more than or less than, or equal to, your initial
Annual Roll-up rate and Deferral Roll-up rate. We also reserve the right to set
new Lock-in Rates that are higher than Renewal rates.
Any transfers or contributions to the Protected Benefit account variable
investment options, either directly or through a Special DCA program and any
contribution amounts in a Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options, after
the first day of any contract year will get the Annual Roll-up rate and
Deferral Roll-up rate in effect as of the most recent contract date anniversary.
NOTIFICATION OF ANNUAL ROLL-UP RATE AND RENEWAL RATES. If you elected the GMIB,
your contract will indicate the Annual Roll-up rate and Deferral Roll-up rate
and the applicable time period those rates are in effect. These rates may not
be the same rates that were illustrated prior to your purchase of the contract.
If you choose to fund the GMIB after the new business rates have expired, you
can contact a Customer Service Representative or visit www.axa.com to find out
the current Annual Roll-up rate and if applicable, the Deferral Roll-up rate
for your contract. In addition, your annual statement of contract values will
show your current Renewal rates, as well as the previous year's Annual Roll-up
rate or Deferral Roll-up rate (whichever applies) for your contract. This
information can also be found online, through your Online Access Account.
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THE ANNUAL ROLL-UP RATE IS USED TO CALCULATE YOUR ANNUAL WITHDRAWAL AMOUNT AND
THE CREDIT TO YOUR GMIB BENEFIT BASE IF YOU HAVE TAKEN A WITHDRAWAL FROM YOUR
PROTECTED BENEFIT ACCOUNT. THE DEFERRAL ROLL-UP RATE IS USED TO CALCULATE THE
CREDIT TO YOUR GMIB BENEFIT BASE UNTIL A WITHDRAWAL IS MADE.
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ANNUAL ROLL-UP AMOUNT AND ANNUAL GMIB BENEFIT BASE ADJUSTMENT
The Annual Roll-up amount is an amount credited to your GMIB benefit base on
each contract date anniversary if there has ever been a withdrawal from your
Protected Benefit account. The Annual Roll-up amount adjustment to your GMIB
benefit base is a primary way to increase the value of your GMIB benefit base.
This amount is calculated by taking into account your GMIB benefit base from
the preceding contract date anniversary, the Annual Roll-up rate under your
contract, contributions and transfers to the Protected Benefit account during
the contract year and any withdrawals up to the Annual withdrawal amount during
the contract year. A withdrawal from your Protected Benefit account in the
first contract year in which the Protected Benefit account is funded is an
Excess withdrawal. Any such withdrawal will reduce (i) your GMIB benefit base
on a pro rata basis and (ii) your Annual Roll-up amount on a dollar-for-dollar
basis, but not less than zero. However, a RMD withdrawal from our RMD program
will not reduce your Annual Roll-up amount in the year you first fund your
Protected Benefit account.
Your Annual Roll-up amount at the end of the contract year is calculated, as
follows:
.. Your GMIB benefit base on the preceding contract date anniversary,
multiplied by:
.. The Annual Roll-up rate that was in effect on the first day of the contract
year; less
.. Any withdrawals up to the Annual withdrawal amount resulting in a
dollar-for-dollar reduction of the Annual Roll-up amount; plus
.. A pro-rated Roll-up amount for any contribution to the Protected Benefit
account variable investment options during the contract year; plus
.. A pro-rated Roll-up amount for any transfer from the Investment account
and/or Guaranteed interest option to the Protected Benefit account variable
investment options during the contract year; plus
.. A pro-rated Roll-up amount for any contribution amounts made during the
contract year to a Special DCA program that are designated for future
transfers to the Protected Benefit account variable investment options
during the contract year.
A PRO-RATED ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE CONTRACT YEAR
AFTER THE CONTRIBUTION OR TRANSFER. (SINCE THERE IS NO ANNUAL WITHDRAWAL AMOUNT
IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED,
ANY WITHDRAWALS IN THAT YEAR OTHER THAN RMD WITHDRAWALS FROM OUR RMD PROGRAM
RESULT IN A DOLLAR-FOR-DOLLAR REDUCTION OF THE ANNUAL ROLL-UP AMOUNT (BUT NOT
LESS THAN ZERO).)
DEFERRAL ROLL-UP AMOUNT AND ANNUAL GMIB BENEFIT BASE ADJUSTMENT
The Deferral Roll-up amount is an amount credited to your GMIB benefit base on
each contract date anniversary provided you have never taken a withdrawal from
your Protected Benefit account. The amount is calculated by taking into account
your GMIB benefit base from the preceding contract date anniversary, the
applicable Deferral Roll-up rate under your contract and contributions and
transfers to the Protected Benefit account during the contract year. The
Deferral Roll-up amount adjustment to your GMIB benefit base is a primary way
to increase the value of your GMIB benefit base. Your Deferral Roll-up amount
at the end of the contract year is calculated as follows:
.. your GMIB benefit base on the preceding contract date anniversary,
multiplied by:
.. the Deferral Roll-up rate that was in effect on the first day of the
contract year; plus
.. a pro-rated Deferral Roll-up amount for any contribution to the Protected
Benefit account variable investment options during the contract year; plus
.. a pro-rated Deferral Roll-up amount for any transfer from the Investment
account and/or Guaranteed interest option to the Protected Benefit account
variable investment options during the contract year; plus
43
CONTRACT FEATURES AND BENEFITS
.. a pro-rated Deferral Roll-up amount for any contribution amounts made
during the contract year to a Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options during the contract year.
A PRO-RATED DEFERRAL ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE
CONTRACT YEAR AFTER THE CONTRIBUTION OR TRANSFER.
-------------------
THE GMIB BENEFIT BASE STOPS ROLLING UP ON THE CONTRACT DATE ANNIVERSARY
FOLLOWING THE OWNER'S (OR OLDER JOINT OWNER, IF APPLICABLE) 95TH BIRTHDAY OR,
IF EARLIER, AT CONTRACT MATURITY, OR THE OWNER'S (OR OLDER JOINT OWNER'S, IF
APPLICABLE) DEATH.
ANNUAL WITHDRAWAL AMOUNT
(APPLICABLE PRIOR TO THE BEGINNING OF LIFETIME GMIB PAYMENTS)
Your Annual withdrawal amount for the next contract year is calculated on each
contract date anniversary beginning with the contract year that follows the
contract year in which the Protected Benefit account is first funded, and is
equal to:
.. the Annual Roll-up rate in effect at the time, multiplied by;
.. the GMIB benefit base as of the most recent contract date anniversary.
Beginning with the contract year that follows the contract year in which you
fund your Protected Benefit account, if your Lifetime GMIB payments have not
begun, you may withdraw up to your Annual withdrawal amount without reducing
your GMIB benefit base and adversely affecting your Lifetime GMIB payments. IT
IS IMPORTANT TO NOTE THAT WITHDRAWALS IN EXCESS OF YOUR ANNUAL WITHDRAWAL
AMOUNT WILL HAVE A HARMFUL EFFECT ON BOTH YOUR GMIB BENEFIT BASE AND LIFETIME
GMIB PAYMENTS. AN EXCESS WITHDRAWAL THAT REDUCES YOUR PROTECTED BENEFIT ACCOUNT
TO ZERO WILL CAUSE YOUR GMIB TO TERMINATE.
You do not have an Annual withdrawal amount in the contract year in which you
fund the Protected Benefit account. A WITHDRAWAL FROM YOUR PROTECTED BENEFIT
ACCOUNT IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS
FUNDED IS AN EXCESS WITHDRAWAL AND WILL REDUCE (I) YOUR GMIB BENEFIT BASE ON A
PRO RATA BASIS AND (II) YOUR ANNUAL ROLL-UP AMOUNT ON A DOLLAR-FOR-DOLLAR
BASIS. Beginning with the contract year that follows the contract year in which
your Protected Benefit account was first funded, the portion of a withdrawal
from your Protected Benefit account in excess of your Annual withdrawal amount,
and all subsequent withdrawals from your Protected Benefit account in that
contract year, will always reduce your GMIB benefit base on a pro rata basis.
This is referred to as an "Excess withdrawal". The reduction of your GMIB
benefit base on a pro rata basis means that we calculate the percentage of your
current Protected Benefit account value that is being withdrawn and we reduce
your current GMIB benefit base by the same percentage. A pro rata withdrawal
will have a significant adverse effect on your benefit base in cases where the
Protected Benefit account value is less than the benefit base. For an example
of how a pro rata reduction works, see "How withdrawals affect your Guaranteed
benefits" later in this section and, for examples of how withdrawals affect
your Annual withdrawal amount, see Appendix VII later in this Prospectus.
Your Annual withdrawal amount is always calculated using the Annual Roll-up
rate in effect for your contract at the beginning of the contract year. The
Deferral Roll-up rate, described above, is never used for the purposes of
calculating the Annual withdrawal amount. Your Annual withdrawal amounts are
not cumulative. If you withdraw less than your Annual withdrawal amount in any
contract year, you may not add the remainder to your Annual withdrawal amount
in any subsequent year. Your Annual withdrawal amount may be more than or less
than your Lifetime GMIB payments. Please refer to the beginning of this section
for more information about "Lifetime GMIB payments".
EXAMPLE OF HOW YOUR ANNUAL WITHDRAWAL AMOUNT; ANNUAL ROLL-UP AMOUNT; DEFERRAL
ROLL-UP AMOUNT AND ANNUAL GMIB BENEFIT BASE ADJUSTMENT; AND THE EFFECT OF AN
EXCESS WITHDRAWAL IS CALCULATED.
ANNUAL WITHDRAWAL AMOUNT. Assume you make a contribution of $200,000 and
allocate $100,000 to your Protected Benefit account variable investment options
and $100,000 to your Investment account variable investment options at issue.
At the beginning of contract year three, assume you transfer $5,000 to your
Protected Benefit account variable investment options. Also assume that your
Annual Roll-up rate is 4% and your Deferral rate is 5% in each contract year.
Accordingly, your GMIB benefit base on your third contract date anniversary is
$121,012.
The GMIB benefit base of $121,012 is calculated as follows:
You start with $100,000 allocated to the Protected Benefit account variable
investment options. This amount is your initial GMIB benefit base.
-- The first Deferral Roll-up amount increases your GMIB benefit base to
$105,000. ($100,000 + $5,000)
$100,000 (GMIB BENEFIT BASE) X 5% (DEFERRAL ROLL-UP RATE) = $5,000
(DEFERRAL ROLL-UP AMOUNT)
-- The second Deferral Roll-up amount increases your GMIB benefit base to
$110,250. ($105,000 + $5,250)
$105,000 (GMIB BENEFIT BASE) X 5% (DEFERRAL ROLL-UP RATE) = $5,250
(DEFERRAL ROLL-UP AMOUNT)
-- Your $5,000 transfer from the Investment account at the beginning of
contract year three increases your GMIB benefit base to $115,250.
($110,250 + $5,000)
-- The third Deferral Roll-up amount increases your GMIB benefit base to
$121,012. ($115,250 + $5,762)
$115,250 (GMIB BENEFIT BASE) X 5% (DEFERRAL ROLL-UP RATE) = $5,762
(DEFERRAL ROLL-UP AMOUNT)
Your Annual withdrawal amount as of the beginning of contract year four is
equal to $4,840, calculated as follows:
.. $121,012 (GMIB benefit base as of your most recent contract date
anniversary) MULTIPLIED BY:
.. 4% (your current Annual Roll-up rate) EQUALS:
.. $4,840
Please note that your Annual Roll-up rate is used to calculate your Annual
withdrawal amount. The Deferral Roll-up rate is never used to calculate your
Annual withdrawal amount.
44
CONTRACT FEATURES AND BENEFITS
ANNUAL ROLL-UP AMOUNT AND ANNUAL BENEFIT BASE ADJUSTMENT. Further assume that
during contract year four (on the 146th day of the contract year), you make a
contribution of $10,000 to your Protected Benefit account variable investment
options, making your current GMIB benefit base after the contribution $131,012.
Also assume that you withdraw your full Annual withdrawal amount of $4,840
during contract year four.
On your fourth contract date anniversary, your Annual Roll-up amount is equal
to $240, calculated as follows:
.. 4% (YOUR CURRENT ANNUAL ROLL-UP RATE) MULTIPLIED BY
.. $121,012 (YOUR GMIB BENEFIT BASE AS OF YOUR MOST RECENT CONTRACT DATE
ANNIVERSARY) MINUS
.. $4,840 (the Annual withdrawal amount, which was withdrawn); PLUS
.. $240 (THE DAILY PRO-RATED ROLL-UP AMOUNT FOR THE CONTRIBUTION: $10,000 X 4%
X 219/365* = $240)
.. EQUALS $240
-------------------
* THIS FRACTION REPRESENTS THE NUMBER OF DAYS IN A 365-DAY CONTRACT YEAR THAT
THE CONTRIBUTION WOULD HAVE RECEIVED CREDIT TOWARD THE ROLL-UP AMOUNT.
Please note that the withdrawal in contract year four terminated the Deferral
Roll-up rate. Therefore on the fourth contract date anniversary, the Annual
Roll-up rate was used to calculate the Annual Roll-up amount.
Your adjusted GMIB benefit base is $131,252.
EFFECT OF AN EXCESS WITHDRAWAL. In contract year four, assume instead that you
make a withdrawal of $7,840 (including any applicable withdrawal charges). This
would result in an Excess withdrawal of $3,000 because your Annual withdrawal
amount is only $4,840 ($7,840 - $4,840 = $3,000). Further, assume that your
Protected Benefit account value at the time of this withdrawal is $100,000. As
described earlier in this section, Excess withdrawals reduce your GMIB benefit
base on a pro-rata basis. Accordingly, your GMIB benefit base is reduced by
$3,930 at the time of the withdrawal, calculated as follows:
.. $131,012 (YOUR CURRENT GMIB BENEFIT BASE: $121,012 + $10,000) MULTIPLIED BY
.. 3% (THE PERCENTAGE OF YOUR CURRENT PROTECTED BENEFIT ACCOUNT VALUE THAT WAS
WITHDRAWN IN EXCESS OF YOUR ANNUAL WITHDRAWAL AMOUNT) EQUALS
.. $3,930.
On your fourth contract date anniversary, your adjusted GMIB benefit base is
$127,322, calculated as follows:
.. $127,082 (YOUR GMIB BENEFIT BASE ADJUSTED TO REFLECT THE EXCESS WITHDRAWAL:
$131,012 - $3,930 = $127,082) PLUS
.. $240 (YOUR ANNUAL ROLL-UP AMOUNT) EQUALS
.. $127,322.
Please note that the Excess withdrawal in contract year four terminated the no
lapse guarantee. Please see the following section below for more information.
See Appendix VII later in this Prospectus for more examples of how withdrawals
affect your Guaranteed benefit bases and Annual withdrawal amount.
GMIB "NO LAPSE GUARANTEE"
In general, if your Protected Benefit account value falls to zero (except as
discussed below), the GMIB will be exercised automatically, based on the
owner's (or older joint owner's, if applicable) current age and GMIB benefit
base as follows:
.. You will be issued a life only supplementary contract based on a single
life. Upon exercise, your Guaranteed minimum death benefit will be
terminated.
.. You will have 30 days from when we notify you to change the payout option
and/or the payment frequency.
Poor investment performance of the Protected Benefit account variable
investment options may contribute to your Protected Benefit account value
falling to zero.
The no-lapse guarantee will terminate under the following circumstances:
.. If your aggregate withdrawals from your Protected Benefit account in any
contract year following the contract year in which you first fund your
Protected Benefit account exceed your Annual withdrawal amount.
.. Upon the contract date anniversary following the owner (or older joint
owner, if applicable) reaching age 95, or, if earlier, the contract
maturity date.
If you were enrolled in the Maximum Payment Plan or Customized Payment Plan,
the frequency of your Lifetime GMIB payments will be the same based on the
payment frequency you elected. Your Lifetime GMIB payment amount may be less
than your Annual withdrawal amount in the prior contract year.
If you were not enrolled in the Maximum Payment Plan or Customized Payment
Plan, you will begin receiving your Lifetime GMIB payments annually one
calendar year after the date that the Protected Benefit account value fell to
zero. Your Lifetime GMIB payment amount may be less than your Annual withdrawal
amount in the prior contract year.
EXERCISE OF GMIB. On each contract date anniversary that you are eligible to
exercise the GMIB, we will send you an eligibility notice illustrating how much
income could be provided as of the contract date anniversary. You must notify
us within 30 days following the contract date anniversary if you want to
exercise the GMIB. You must return your contract to us, along with all required
information within 30 days following your contract date anniversary, in order
to exercise this benefit. Upon exercise of the GMIB, the owner (or older joint
owner, if applicable) will become the annuitant, and the contract will be
annuitized on the basis of the annuitant's life. You will begin receiving
annual payments one year after the annuity payout contract is issued. If you
choose monthly or quarterly payments, you will receive your payment one month
or one quarter after the annuity payout contract is issued. Under monthly or
quarterly payments, the aggregate payments you receive in a contract year will
be less than what you would have received if you had elected an annual payment,
as monthly and quarterly payments reflect the time value of money with regard
to both interest and mortality. You may choose to take a withdrawal prior to
exercising the GMIB, which will reduce your payments. You may not partially
exercise this benefit.
45
CONTRACT FEATURES AND BENEFITS
See ''Withdrawing your account value'' in ''Accessing your money'' later in
this Prospectus. Payments end with the last payment before the annuitant's (or
joint annuitant's, if applicable) death.
Please see "Exercise of the GMIB in the event of a GMIB fee increase" under
"charges and expenses" later in this Prospectus for more information on
exercising your GMIB upon notice of a change to the GMIB fee.
EXERCISE RULES. The latest date you may exercise the GMIB is the 30th day
following the contract date anniversary following the annuitant's 95th
birthday. If the GMIB is exercised on any contract date anniversary prior to
age 95, the GMIB benefit base is reduced by any remaining withdrawal charge. If
the GMIB is exercised as a result of the no lapse guarantee, any applicable
withdrawal charges are waived. Eligibility to exercise the GMIB is based on the
owner's (or older joint owner's, if applicable) age, as follows:
.. If you were at least age [45] and no older than age 49 on the contract date
anniversary immediately preceding the date you first funded your Protected
Benefit account, you are eligible to exercise the GMIB within 30 days
following each contract date anniversary after age 60.
.. If you were at least age 50 and no older than age 80 on the contract date
anniversary immediately preceding the date you first funded your Protected
Benefit account, you are eligible to exercise the GMIB within 30 days
following each contract date anniversary beginning with the 10th contract
date anniversary following the date you first funded your Protected Benefit
account.
The GMIB guarantees annual lifetime payments ("Lifetime GMIB payments"), which
will begin at the earliest of:
(i)the next contract year following the date your Protected Benefit account
value falls to zero (provided the no lapse guarantee is in effect);
(ii)the contract date anniversary following your 95th birthday; or
(iii)your election to exercise the GMIB.
Your Lifetime GMIB payments will be calculated as described below in this
section. Whether your Lifetime GMIB payments are triggered by age 95, the no
lapse guarantee, or your election to exercise the GMIB, we use the same
calculation to determine the amount of the payments. Please note that
withdrawal charges, if any, may apply if you elect to exercise the GMIB.
For single owner contracts, the payout can be either based on a single life
(the owner's life) or joint lives. For IRA contracts, the joint life must be
the spouse of the owner. For jointly owned contracts, payments can be based on
a single life (based on the life of the older owner) or joint lives. For
non-natural owners, payments are available on the same basis (based on the
annuitant or joint annuitant's life).
Your Lifetime GMIB payments are calculated by applying your GMIB benefit base
less any applicable withdrawal charge remaining, to guaranteed annuity purchase
factors. If your Protected Benefit account value is zero as described under the
"GMIB "no lapse guarantee"", we will use your GMIB benefit base as of the day
your Protected Benefit account value was reduced to zero. On the day your
Protected Benefit account value is reduced to zero, we calculate your GMIB
benefit base using the same formula as described under "GMIB benefit base"
earlier in this section. If your Protected Benefit account was reduced to zero
on a date other than your contract anniversary, we will include a pro rata
portion of the applicable Roll-up amount in your GMIB base. Withdrawal charges,
if any, will not apply under these circumstances.
Example:
Assume your Protected Benefit account value goes to zero in the middle of
the 10th contract year. At the beginning of the 10th contract year, the GMIB
benefit base is $100,000. Further assume there were no contributions or
transfers to the Protected Benefit account or any withdrawals during that
contract year. If the applicable Roll-up rate was 4%, the GMIB benefit base
on the day your Protected Benefit account value was reduced to zero would be
$102,000.
If your Protected Benefit account value is reduced to zero on your contract
date anniversary as the result of the deduction of charges under the contract,
we will add any remaining Annual Roll-up amount, or if applicable, your
Deferral Roll-up amount, to your GMIB benefit base.
If the GMIB is exercised under any of the four events as described above, and
you have no Investment account value, the following applies:
(i)We will issue a supplementary contract with the same owner and beneficiary.
(ii)The deferral contract, including the Guaranteed minimum death benefit will
be terminated.
If the GMIB is exercised under any of the four events as described above, and
you have Investment account value, the following applies:
(i)We will issue a supplementary contract for the Protected Benefit account
with the same owner and beneficiary. The Investment account under the
deferred contract will continue to be in force.
(ii)Your Lifetime GMIB payment will not reduce your Investment account value.
(iii)Your Guaranteed minimum death benefit will be terminated.
(iv)For IRA contracts, your RMD payments will be based solely on your
Investment account value and may only be withdrawn from your Investment
account.
If you elect to exercise the GMIB or your Protected Benefit account value has
not fallen to zero before or the contract date anniversary that follows the
annuitant reaching age 95, whichever is sooner, the following applies:
(i)We will issue a supplementary contract with the same owner and beneficiary;
(ii)Your Lifetime GMIB payments will be equal to the greater of:
. your Protected Benefit account value applied to the guaranteed, or, if
greater, the current annuitization factors,
-OR-
. the GMIB benefit base applied to the guaranteed annuity purchase factors.
For example, assuming the current annuitization factors are greater than the
guaranteed annuitization factors, a male contract owner
46
CONTRACT FEATURES AND BENEFITS
whose annuitant is age 95 and has a $100,000 GMIB benefit base and $50,000 in
Protected Benefit account value would receive the greater of the following:
(i)Current annuitization factors (which are subject to change) applied to his
$50,000 Protected Benefit account value, which currently equals a monthly
payment of $1,065, or
(ii)The guaranteed annuity purchase factor discussed above (in this example, it
would be 0.63%) applied to his $100,000 GMIB benefit base, which equals a
Lifetime GMIB monthly payment of $630.
In this example, the contract owner's monthly payment would be $1,065.
(i)Any Investment account value will be annuitized under a separate contract
based on one of the annuity payout options discussed under "Your annuity
payout options" in "Accessing your money" later in this Prospectus;
(ii)Upon issuing your supplementary contract, your Guaranteed minimum death
benefit and your death benefit in connection with your Investment account
value will be terminated.
If you elected the GMIB and your Protected Benefit account value falls to zero
due to an Excess withdrawal, we will terminate your GMIB and you will receive
no payment or supplementary life annuity contract, even if your GMIB benefit
base is greater than zero. Please see the Hypothetical illustrations in
Appendix IV for an example of how Lifetime GMIB payments are calculated when:
(i) a hypothetical Protected Benefit account value falls to zero, and (ii) the
annuitant reaches age 95.
Please note:
(i)if the GMIB benefit base is reset after age 85, the only time you may
exercise the GMIB is within 30 days following the contract date anniversary
following the annuitant's attainment of age 95;
(ii)for Retirement Cornerstone(R) Series QP contracts, the Plan participant can
exercise the GMIB only if he or she elects to take a distribution from the
Plan and, in connection with this distribution, the Plan's trustee changes
the ownership of the contract to the participant. This effects a rollover
of the Retirement Cornerstone(R) Series QP contract into a Retirement
Cornerstone(R) Series traditional IRA. This process must be completed
within the 30-day time frame following the contract date anniversary in
order for the Plan participant to be eligible to exercise. However, if the
GMIB is automatically exercised as a result of the no lapse guarantee, a
rollover into an IRA will not be effected and payments will be made
directly to the trustee;
(iii)since no partial exercise is permitted, owners of defined benefit QP
contracts who plan to change ownership of the contract to the participant
must first compare the participant's lump sum benefit amount and annuity
benefit amount to the GMIB benefit base and account value, and make a
withdrawal from the contract if necessary. See ''How withdrawals affect
your Guaranteed benefits'' later in this section;
(iv)if you reset the GMIB benefit base (as described earlier in this section),
your new exercise date will be the tenth contract date anniversary
following the reset or, if later, the earliest date you would have been
permitted to exercise without regard to the reset, but in no event will it
be later than the contract date anniversary following age 95. Please note
that in most cases, resetting your GMIB benefit base will lengthen the
waiting period;
(v)a spouse beneficiary or younger spouse joint owner under Spousal
continuation may continue the GMIB if the contract is not past the last date
on which the original owner could have exercised the benefit and the spouse
beneficiary or younger spouse joint owner is eligible to continue the
benefit and to exercise the benefit under the applicable exercise rule
(described in the above bullets). In general, the spouse beneficiary or
younger spouse joint owner's age on the date of the owner's death replaces
the owner's age at issue, for purposes of determining the availability of
the benefit and which of the exercise rules applies. If the spouse
beneficiary or younger spouse joint owner is over age 85 on the date of the
owner's death, she will have a one-time opportunity to exercise the GMIB
subject to the following additional rules. The one-time election will be
available only if the spouse beneficiary or younger spouse joint owner is
age 95 or younger and the original owner died before the age of 95. In
addition, the election to exercise the GMIB must be made no later than one
year following the date of the owner's death. If the GMIB is exercised, the
Guaranteed minimum death benefit will be terminated. For example, if an
owner is age 70 at issue, and he dies at age 79, and the spouse beneficiary
is 86 on the date of his death, she may exercise the GMIB no later than one
year following the date of the owner's death, even though she was 77 at the
time the contract was issued, because eligibility is measured using her age
at the time of the owner's death, not her age on the issue date.
(vi)if the contract is jointly owned, you can elect to have the GMIB paid
either: (a) as a joint life benefit or (b) as a single life benefit paid on
the basis of the older owner's age (if applicable); and
(vii)if the contract is owned by a trust or other non-natural person,
eligibility to elect or exercise the GMIB is based on the annuitant's (or
older joint annuitant's, if applicable) age, rather than the owner's.
See ''Effect of the owner's death'' under ''Payment of death benefit'' later in
this Prospectus for more information.
Please see ''How withdrawals affect your Guaranteed benefits'' later in this
section and ''Effect of your account values falling to zero'' in ''Determining
your contract's value'' later in this Prospectus for more information on these
guaranteed benefits.
From time to time, we may offer you some form of payment or incentive in return
for terminating or modifying certain guaranteed benefits. See "Guaranteed
benefit offers" later in this section for more information.
DEATH BENEFIT
For the purposes of determining the death benefit under your Retirement
Cornerstone(R) Series contract, we treat your Investment account and any
Guaranteed minimum death benefit funded by your Protected Benefit account
differently.
The death benefit in connection with your Investment account is equal to your
Investment account value as of the date we receive satisfactory proof of death,
any required instructions for the method of payment, and any required
information and forms necessary to effect payment. The death benefit payable in
connection with your Protected Benefit account will be based on the greater of
(i) your Protected Benefit account value, and (ii) the benefit base of your
Guaranteed minimum death benefit.
47
CONTRACT FEATURES AND BENEFITS
The total death benefit under your Retirement Cornerstone(R) contract will
depend on your values in either one or both sides of the contract. If you
selected a Guaranteed minimum death benefit but never funded your Protected
Benefit account, your death benefit will be based on your Investment account
value only. Likewise, if you funded your Guaranteed minimum death benefit
through allocations to the Protected Benefit account and had no Investment
account value, your death benefit would be based strictly on the Guaranteed
minimum death benefit you selected. Also, it is possible that upon your death,
you have value in both your Investment account and a Guaranteed minimum death
benefit that has been funded through allocations to the Protected Benefit
account. In that case, your beneficiaries would receive the Investment account
value, plus the value of your Guaranteed minimum death benefit.
GUARANTEED MINIMUM DEATH BENEFITS
At issue, you may elect one of our optional Guaranteed minimum death benefit
options (GMDBs) in connection with your Protected Benefit account as follows:
--------------------------------------------------------------
GUARANTEED MINIMUM SERIES B SERIES CP(R)
DEATH BENEFIT CONTRACTS CONTRACTS
--------------------------------------------------------------
Return of Principal Issue Ages 0-80 Issue Ages 0-70
death benefit
-------------------------------------------
Highest Anniversary Issue Ages 0-[75]
Value death benefit
--------------------------------------------------------------
RMD Wealth Guard death Issue Ages 20-68 Issue Ages 20-68
benefit
--------------------------------------------------------------
The "Greater of" Issue Ages [45]-65 Issue Ages [45]-65
death benefit
--------------------------------------------------------------
The "Greater of" death benefit can only be elected in combination with the
GMIB. The RMD Wealth Guard death benefit cannot be elected in combination with
the GMIB. The Return of Principal death benefit and the Highest Anniversary
Value death benefit are available with or without the GMIB. The Highest
Anniversary Value death benefit, the RMD Wealth Guard death benefit and the
"Greater of" death benefit are available at an additional charge. There is no
charge for the Return of Principal death benefit. The Return of Principal death
benefit will be issued with all eligible contracts if you do not elect either
the Highest Anniversary Value, the RMD Wealth Guard death benefit or the
"Greater of" death benefit at the time you apply for your Retirement
Cornerstone(R) contract. If you elect a GMDB, the period during which you can
make subsequent contributions may be significantly shorter than if you did not
elect a GMDB. Please refer to Appendix VIII later in this prospectus. Once a
withdrawal is taken from the Protected Benefit account, additional
contributions may not be made to the Protected Benefit account. Please refer to
"Accessing your money" later in this Prospectus. Transfers to and from the
Protected Benefit account may be restricted. Please refer to "Transferring your
money among investment options" later in this Prospectus.
Any GMDB you elect will automatically terminate upon annuitization, which will
occur no later than the maturity date stated in your contract.
When you have a GMDB, you can allocate your contributions to any of the
following:
.. Protected Benefit account variable investment options
.. Investment account variable investment options
.. Guaranteed interest option
.. The account for special dollar cost averaging (Series B contracts only)
.. The account for special money market dollar cost averaging (Series CP(R)
contracts only)
FUNDING YOUR GMDB. Only amounts you allocate to the Protected Benefit account
variable investment options and amounts in a Special DCA program designated for
the Protected Benefit account variable investment options will fund your GMDB.
These amounts will be included in your GMDB benefit base and will become part
of your Protected Benefit account value.
For Series CP(R) contracts, any credit or Earnings bonus amounts attributable
to your Protected Benefit account are not included in your GMDB benefit base.
If you decide to transfer amounts from your Investment account to your
Protected Benefit account variable investment options, only amounts
representing contributions and earnings will increase your GMDB benefit base.
Credit or Earnings bonus amounts to your Investment account are always
considered transferred first, though any amount of that transfer that
represents a credit or Earnings bonus will be excluded from your GMDB benefit
base. All transfers, however, will increase your Protected Benefit account
value by the amount of the transfer.
Your death benefit in connection with your Protected Benefit account is equal
to one of the following -- whichever provides a higher amount:
.. Your Protected Benefit account value as of the date we receive satisfactory
proof of the owner's (or older joint owner's, if applicable) death, any
required instructions for the method of payment, and any required
information and forms necessary to effect payment; or
.. Your applicable GMDB benefit base (discussed below) on the date of the
owner's (or older joint owner's, if applicable) death, adjusted for
subsequent withdrawals (and any withdrawal charges).
RETURN OF PRINCIPAL DEATH BENEFIT
The Return of Principal death benefit, like all of the guaranteed minimum death
benefits, only applies to amounts you allocate to the Protected Benefit account
variable investment options and not to the contract as a whole. Your Return of
Principal Guaranteed minimum death benefit is equal to your Return of Principal
death benefit base. This benefit base is not an account value or cash value. It
is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through a
Special DCA program; plus
.. Any amounts contributed to a Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options; less
.. A deduction that reflects any withdrawals you make from the Protected
Benefit account variable investment options or from amounts in a Special
DCA program designated for the Protected Benefit account variable
investment options (including any withdrawal charges). The amount of this
deduction is described
48
CONTRACT FEATURES AND BENEFITS
under "How withdrawals affect your Guaranteed benefits" later in this
section. The amount of any withdrawal charge is described under "Withdrawal
charge" in "Charges and expenses" later in this Prospectus.
Please see Appendix III later in this Prospectus for an example of how the
Return of Principal benefit base is calculated.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
Your Highest Anniversary Value Guaranteed minimum death benefit is equal to
your Highest Anniversary Value benefit base. This benefit base is not an
account value or cash value. The calculation of your Highest Anniversary Value
benefit base will depend on whether you have taken a withdrawal from your
Protected Benefit account.
If you have not taken a withdrawal from your Protected Benefit account, your
Highest Anniversary Value benefit base is equal to one of the following --
whichever provides a higher amount:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through a
Special DCA program; plus
.. Any amounts contributed to a Special DCA that are designated for future
transfers to the Protected Benefit account variable investment options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options.
-OR-
.. Your highest Protected Benefit account value on any contract date
anniversary up to the contract date anniversary following the owner's (or
older joint owner's, if applicable) 85th birthday (plus any transfers to
the Protected Benefit account variable investment options and contributions
either directly or through a Special DCA program designated for the
Protected Benefit account variable investment options, made since the most
recent "reset" of the Highest Anniversary Value benefit base that
established your Protected Benefit account value as your new Highest
Anniversary Value benefit base).
If you take a withdrawal from your Protected Benefit account and you elected
the GMIB, your Highest Anniversary Value benefit base will be reduced on a
dollar-for-dollar basis by withdrawals up to the Annual withdrawal amount, and
on a pro rata basis by Excess withdrawals (including any applicable withdrawal
charges). NOTE THAT ANY WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT IN THE
FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED IS AN
EXCESS WITHDRAWAL. If you take a withdrawal from your Protected Benefit account
and you did not elect the GMIB, your Highest Anniversary Value benefit base
will be reduced on a pro rata basis (including any applicable withdrawal
charges). Reduction on a pro rata basis means that we calculate the percentage
of your Protected Benefit account value that is being withdrawn and we reduce
your Highest Anniversary Value benefit base by the same percentage. See "How
withdrawals affect your Guaranteed benefits" later in this section. The amount
of any withdrawal charge is described under "Withdrawal charge" in "Charges and
expenses" later in this Prospectus.
At any time after a withdrawal, your Highest Anniversary Value benefit base is
equal to one of the following -- whichever provides a higher amount:
.. Your Highest Anniversary Value benefit base immediately following the most
recent withdrawal (plus any transfers to the Protected Benefit account
variable investment options made since the most recent "reset" of the
Highest Anniversary Value benefit base that established your Protected
Benefit account value as your new Highest Anniversary Value benefit base).
-OR-
.. Your highest Protected Benefit account value on any contract date
anniversary after the withdrawal up to the contract date anniversary
following the owner's (or older joint owner's, if applicable) 85th birthday
(plus any transfers to the Protected Benefit account variable investment
options and contributions to a Special DCA program designated for the
Protected Benefit account variable investment options, made since the most
recent "reset" of the Highest Anniversary Value benefit base that
established your Protected Benefit account value as your new Highest
Anniversary Value benefit base).
For Series CP(R) contracts, on your contract date anniversary any credit or
Earnings bonus amounts that are part of your Protected Benefit account value
are included in the calculation of the "reset" to your Highest Anniversary
Value benefit base. Please note, however, that credit amounts are not part of
the Highest Anniversary Value benefit base until a reset occurs. If you are
eligible for an Earnings bonus on your contract date anniversary, the amount of
the Earnings bonus will be credited to your Total account value after any reset
is calculated. If a reset occurs, your Guaranteed benefit base(s) will not be
increased by amounts associated with the Earnings bonus on that contract date
anniversary.
Please see Appendix III later in this Prospectus for an example of how the
Highest Anniversary Value benefit base is calculated.
RMD WEALTH GUARD DEATH BENEFIT
(FOR TRADITIONAL IRA, SEP AND QPDC CONTRACTS ONLY)
The RMD Wealth Guard death benefit is an optional guaranteed minimum death
benefit. Your initial RMD Wealth Guard death benefit base is valued based on
your initial contributions and any transfers to the Protected Benefit account.
Thereafter RMD Wealth Guard death benefit base is increased by any allocations
and transfers to the Protected Benefit account, which is described below.
Withdrawals from the Protected Benefit account, other than Excess RMD
withdrawals, will not reduce your RMD Wealth Guard death benefit base. This
death benefit also provides a refund feature in the event the Protected Benefit
account falls to zero before the owner reaches age 95. There is an additional
charge for this death benefit under the contract. The RMD Wealth Guard death
benefit is not available if you elected the GMIB.
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AN RMD WITHDRAWAL IS A WITHDRAWAL THAT IS INTENDED TO SATISFY THE LIFETIME
REQUIRED MINIMUM DISTRIBUTIONS FROM CERTAIN TAX-FAVORED PLANS AND ARRANGEMENTS
SUCH AS TRADITIONAL IRAS UNDER FEDERAL INCOME TAX RULES. SEE "REQUIRED MINIMUM
DISTRIBUTIONS" IN THE "TAX INFORMATION" SECTION OF THE PROSPECTUS FOR MORE
INFORMATION.
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49
CONTRACT FEATURES AND BENEFITS
The RMD Wealth Guard death benefit base is not an account value or cash value.
It is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through a
Special DCA program; PLUS
.. Any amounts contributed to a Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options; PLUS
.. Any amounts transferred to the Protected Benefit account variable
investment options; LESS
.. A deduction that reflects any Excess RMD withdrawals from the Protected
Benefit account, or from amounts in a Special DCA program designated for
the Protected Benefit account variable investment options (including any
withdrawal charges). The amount of this deduction is described below.
The RMD Wealth Guard death benefit base will be recalculated on each
transaction date upon the occurrence of each contribution, transfer or
deduction.
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FOR CONTRACTS WITH THE RMD WEALTH GUARD DEATH BENEFIT, AN "EXCESS RMD
WITHDRAWAL" IS:
.. THE FULL AMOUNT OF ANY WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT TAKEN
BEFORE THE CALENDAR YEAR IN WHICH YOU TURN AGE 701/2;
.. THE FULL AMOUNT OF ANY WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT TAKEN
DURING YOUR FIRST CONTRACT YEAR, EVEN IF YOU TURN AGE 701/2 DURING THAT
YEAR; OR
.. THE PORTION OF A WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT THAT
EXCEEDS YOUR RMD WEALTH GUARD WITHDRAWAL AMOUNT FOR THE CALENDAR YEAR.
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Excess RMD withdrawals will reduce your RMD Wealth Guard death benefit base on
a pro rata basis. Reduction on a pro rata basis means that we calculate the
percentage of your Protected Benefit account value that is being withdrawn and
we reduce your RMD Wealth Guard death benefit base by the same percentage.
RESETS. On each contract date anniversary up to the earlier of (i) the contract
date anniversary following your first RMD withdrawal from the Protected Benefit
account, and (ii) the contract date anniversary following your 85th birthday,
if the Protected Benefit account value is greater than the current RMD Wealth
Guard death benefit base, the RMD Wealth Guard death benefit base will
automatically reset to equal the Protected Benefit account value. Withdrawals
from the Protected Benefit account up to your RMD Wealth Guard withdrawal
amount will not reduce your RMD Wealth Guard death benefit base.
For Series CP(R) contracts, any credit or Earnings bonus amounts added to your
Protected Benefit account, including credit or Earnings bonus amounts
transferred from your Investment account, will be included in your Protected
Benefit account value when determining your RMD Wealth Guard death benefit base
reset.
CALCULATING YOUR RMD WEALTH GUARD WITHDRAWAL AMOUNT. Your RMD Wealth Guard
withdrawal amount will be calculated based on the account value in your
Protected Benefit account variable investment options as of December 31st in
the calendar year you turn age 701/2 and calculated each calendar year
thereafter as of December 31st. This calculation includes the actuarial present
value of your RMD Wealth Guard death benefit. This is because certain
provisions of the Treasury Regulations require that the actuarial present value
of additional annuity contract benefits, such as guaranteed benefits like the
RMD Wealth Guard death benefits, be added to the account value for purposes of
calculating account-based annual required minimum distributions from individual
retirement annuity contracts. See "Required minimum distributions" in the "Tax
information" section of the Prospectus for more information.
Your RMD Wealth Guard withdrawal amount will be determined using the RMD rules
and life expectancy and distribution tables in effect on December 31, 2014. In
the event that tax reform measures change those RMD requirements, unless we
agree otherwise, we will not allow your RMD Wealth Guard withdrawal amount to
be greater than the RMD Wealth Guard withdrawal amount calculated using the IRS
RMD rules that were in effect on December 31, 2014. As a result of us reserving
this right, in the event that future IRS rule changes require you to take RMD
withdrawals that are greater than the RMD amount calculated using the IRS RMD
rules that were in effect on December 31, 2014 and we do not agree to this
change, you would have to satisfy your RMD requirements from other retirement
sources or, if you do not have other retirement sources, you would have to take
an additional RMD withdrawal amount from this contract, which would be treated
an Excess RMD withdrawal. That Excess RMD withdrawal would reduce your RMD
Wealth Guard death benefit base on a pro rata basis. Please refer to the
section "How withdrawals effect your Guaranteed benefits" later in this
Prospectus.
Please note that your RMD Wealth Guard withdrawal amount will be zero:
.. in each year prior to the calendar year in which you turn age 701/2; and
.. during your first contract year, even if you turn age 701/2 during that
year.
WITHDRAWALS PRIOR TO AGE 701/2 OR DURING YOUR FIRST CONTRACT YEAR. Withdrawals
from your Protected Benefit account prior to the calendar year in which you
turn age 701/2 are treated as Excess RMD withdrawals and reduce your RMD Wealth
Guard death benefit base on a pro rata basis (including any applicable
withdrawal charges). Withdrawals from your Protected Benefit account prior to
your first contract date anniversary will also reduce your RMD Wealth Guard
death benefit base on a pro rata basis (including any applicable withdrawal
charges) even if you turn age 701/2 during that calendar year. Reduction on a
pro rata basis means that we calculate the percentage of your Protected Benefit
account value that is being withdrawn and we reduce your RMD Wealth Guard death
benefit base by the same percentage. THIS PRO RATA REDUCTION TO THE RMD WEALTH
GUARD DEATH BENEFIT BASE COULD BE GREATER THAN THE DOLLAR AMOUNT OF THE
WITHDRAWAL AND COULD SIGNIFICANTLY REDUCE OR ELIMINATE THE VALUE OF THE RMD
WEALTH GUARD DEATH BENEFIT. For an example of how a pro rata reduction works,
see Appendix VII later in this Prospectus.
Withdrawals from the Protected Benefit account:
.. prior to the calendar year in which you turn age 701/2; or
.. during your first contract year, even if you turn age 701/2 during the
calendar year in which your first contract date anniversary falls
will not stop your RMD Wealth Guard death benefit base from resetting.
As discussed in "Resets" above, the last reset of the RMD Wealth Guard death
benefit base will be the earlier of the contract date anniversary following
your first RMD withdrawal from the Protected Benefit account or the contract
date anniversary following your 85th birthday.
50
CONTRACT FEATURES AND BENEFITS
WITHDRAWALS AT OR AFTER AGE 701/2. After your first contract date anniversary,
withdrawals made from your Protected Benefit account beginning with the
calendar year in which you turn age 701/2 will be treated as RMD Wealth Guard
withdrawals and will count towards your RMD Wealth Guard withdrawal amount.
Withdrawals from the Protected Benefit account up to your RMD Wealth Guard
withdrawal amount will not reduce your RMD Wealth Guard death benefit base. The
portion of a withdrawal from your Protected Benefit account that exceeds your
RMD Wealth Guard withdrawal amount for the calendar year will be treated as an
Excess RMD withdrawal. An Excess RMD withdrawal will reduce your RMD Wealth
Guard death benefit base on a pro rata basis. A PRO RATA REDUCTION TO YOUR RMD
WEALTH GUARD DEATH BENEFIT BASE COULD BE GREATER THAN THE DOLLAR AMOUNT OF THE
WITHDRAWAL AND COULD SIGNIFICANTLY REDUCE OR ELIMINATE THE VALUE OF YOUR RMD
WEALTH GUARD DEATH BENEFIT.
Please note that any withdrawals from your Protected Benefit account, including
withdrawals taken up to the RMD Wealth Guard withdrawal amount, will reduce
your Protected Benefit account value. Withdrawal charges are waived for RMD
Wealth Guard withdrawals, but will count towards the free withdrawal limit.
These withdrawals are subject to tax. See "Free withdrawal amount" in "Charges
and expenses" later in this Prospectus.
If you elect the RMD Wealth Guard withdrawal service, you can elect to take RMD
withdrawals from your Protected Benefit account value and Investment account
value. If you elect to use our RMD Wealth Guard withdrawal service or our
Automatic RMD withdrawal service, you will receive the required amount of RMD
payments calculated for your contract for that calendar year. At the time you
elect to receive RMD withdrawals, any prior RMD payments due for that calendar
year will be paid as a catch-up payment. The catch-up payment is made
immediately when the RMD Wealth Guard withdrawal service enrollment is
processed. Thereafter, RMD payments will begin on the date and at the frequency
you elect.
For example, in the calendar year that you turn age 701/2, if you enroll in our
RMD Wealth Guard withdrawal service in July of that year and requested to
receive monthly RMD payments, you would receive the catch-up payment due for
January through June in a lump sum on the date the enrollment is processed and
the July RMD monthly payment on the date that you specified on the RMD Wealth
Guard withdrawal service Form. If you take additional withdrawals from the
Protected Benefit account while you are currently taking RMD payments under our
RMD Wealth Guard withdrawal service, those RMD payments from the Protected
Benefit account will be reduced by those withdrawals. If you delay your first
RMD withdrawal until after the calendar year you turn age 701/2, but no later
than April 1st of the following calendar year, we will pay you a catch-up
payment at the time you elected to receive RMD withdrawals, which will include
any prior RMD payments due for that calendar year plus the entire RMD amount
due from the prior year. The catch-up payment is made immediately when the RMD
Wealth Guard withdrawal service enrollment is processed. Thereafter, RMD
payments will begin on the date and at the frequency you elect. In that event,
your RMD Wealth Guard death benefit base would not reset after your first RMD
withdrawal.
For more information about the RMD Wealth Guard withdrawal service, please
refer to "RMDs for Traditional IRA and SEP IRA contracts with the RMD Wealth
Guard death benefit" in "Accessing your money" later in this Prospectus.
If you take withdrawals from your Protected Benefit account during a calendar
year in which you are receiving RMD payments under our Automatic RMD service or
our RMD Wealth Guard withdrawal service, once the total amount of your
withdrawals in that calendar year reach your RMD Wealth Guard withdrawal
amount, your RMD Wealth Guard withdrawals will be suspended until the next
calendar year. Additional withdrawals from the Investment account value will
not suspend RMD Wealth Guard withdrawals under our Automatic RMD service or our
RMD Wealth Guard withdrawal service.
For additional examples of how withdrawals affect your RMD Wealth Guard death
benefit base, see Appendix VII later in this Prospectus. For information on how
RMD payments affect your RMD Wealth Guard death benefit, see "RMDs for
contracts with the RMD Wealth Guard death benefit" in "Accessing your money"
later in this Prospectus.
The RMD Wealth Guard withdrawal service is not available under QPDC
contracts. If you elect the RMD Wealth Guard death benefit for a QPDC contract,
all withdrawals from your Protected Benefit account will reduce the RMD Wealth
Guard death benefit base on a pro rata basis and will be subject to any
applicable withdrawal charges until the QPDC contract is converted to an IRA.
After you convert the QPDC contract to an IRA contract you can elect the RMD
Wealth Guard withdrawal service. A qualified plan participant, upon separation
from service, may directly roll-over an eligible rollover distribution from the
plan by converting the QPDC contract into an otherwise identical IRA contract
which retains the RMD Wealth Guard death benefit. In that case, the RMDs can be
taken without reducing the RMD Wealth Guard death benefit base. You should not
elect the RMD Wealth Guard death benefit under a QPDC contract unless you
intend to convert to an IRA prior to taking RMDs. See Appendix II, "Purchase
considerations for QP participants".
RMDs are not required to be withdrawn from a Roth IRA during your lifetime.
Therefore, if you are considering converting your traditional IRA to a Roth
IRA, prior to converting your IRA to a Roth IRA, you must drop the RMD Wealth
Guard death benefit. For information on dropping this benefit, see "Dropping or
changing your Guaranteed benefits" in "Contract features and benefits", later
in this prospectus and under Appendix I.
The RMD Wealth Guard death benefit is only available for traditional IRA, SEP
and QPDC contracts.
RMD WEALTH GUARD REFUND FEATURE
If you elected the RMD Wealth Guard death benefit and your Protected Benefit
account value falls to zero before the owner's death, your RMD Wealth Guard
death benefit terminates and we will refund 10% of the total of (a) minus (b),
where:
(a)equals your total contributions and transfers to the Protected Benefit
account; and
(b)equals the total dollar amount of any Excess RMD withdrawals you have taken.
For example, assume that at the time your Protected Benefit account value fell
to zero, your total contributions and transfers to the Protected Benefit
account were $100,000 and you had taken a total of $10,000 in Excess RMD
withdrawals. You will receive a refund equal to 10% of $90,000 ($100,000 -
$10,000), or $9,000.
For Series CP(R) contracts, any credit or Earnings bonus amounts added to your
Protected Benefit account, including credit or Earnings bonus amounts
transferred from your Investment account, are not included in part (a) of the
formula for calculating your RMD Wealth Guard Refund.
We will pay you the amount of any RMD Wealth Guard Refund as a lump sum. In
certain circumstances, you may be able to roll over this payment into another
IRA. Please consult your tax adviser. Also,
51
CONTRACT FEATURES AND BENEFITS
please see "Withdrawals, payments and transfers of funds out of traditional
IRAs" in the "Tax Information" section of this Prospectus for more information
about possible tax consequences of any distribution from your contract.
If your Protected Benefit account falls to zero, your contract will also
terminate unless you have amounts allocated to the Investment account. In this
case, you will receive the RMD Wealth Guard Refund as a lump sum, your contract
will continue and any remaining RMD payments will continue uninterrupted from
your Investment account, beginning in the calendar year in which your Protected
Benefit account falls to zero.
"GREATER OF" DEATH BENEFIT
Your "Greater of" death benefit has a benefit base. The benefit base is not an
account value or cash value. It is equal to the greater of:
.. The benefit base computed for the Highest Anniversary Value death benefit
(described immediately above); and
.. The Roll-up to age 80 benefit base.
The Roll-up to age 80 benefit base is used only in connection with the "Greater
of" death benefit. It is equal to:
.. Your initial contribution and any subsequent contributions to the Protected
Benefit account variable investment options, either directly or through a
Special DCA program; plus
.. Any amounts contributed to a Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options; plus
.. Any amounts transferred to the Protected Benefit account variable
investment options; less
.. A deduction that reflects any "Excess withdrawal" amounts (plus any
applicable withdrawal charges); less
.. A deduction that reflects (a) in the contract year of first funding, the
dollar amount of any RMD from the Protected Benefit account taken through
our RMD program and (b) in the subsequent contract years, the dollar amount
of any RMD from the Protected Benefit account in excess of the Annual
withdrawal amount taken through our RMD program; plus
.. Any "Deferral Roll-up amount" or "Annual Roll-up amount" minus a deduction
that reflects any withdrawals up to the Annual withdrawal amount. A
withdrawal from your Protected Benefit account in the first contract year
in which the Protected Benefit account is funded is an Excess withdrawal.
Any such withdrawal will reduce (i) your Roll-up to age 80 benefit base on
a pro rata basis and (ii) your Annual Roll-up amount on a dollar-for-dollar
basis, but not less than zero. (Withdrawal charges do not apply to amounts
withdrawn up to the Annual withdrawal amount.)
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EITHER THE DEFERRAL ROLL-UP AMOUNT OR THE ANNUAL ROLL-UP AMOUNT IS CREDITED TO
THE BENEFIT BASES OF YOUR GUARANTEED BENEFITS ON EACH CONTRACT DATE
ANNIVERSARY. THESE AMOUNTS ARE CALCULATED BY TAKING INTO ACCOUNT YOUR ROLL-UP
TO AGE 80 BENEFIT BASE FROM THE PRECEDING CONTRACT DATE ANNIVERSARY, THE
APPLICABLE ROLL-UP RATE UNDER YOUR CONTRACT, CONTRIBUTIONS AND TRANSFERS TO THE
PROTECTED BENEFIT ACCOUNT DURING THE CONTRACT YEAR AND FOR THE ANNUAL ROLL-UP
AMOUNT, ANY WITHDRAWALS UP TO THE ANNUAL WITHDRAWAL AMOUNT DURING THE CONTRACT
YEAR. A WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT IN THE FIRST CONTRACT
YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED IS AN EXCESS WITHDRAWAL.
ANY SUCH WITHDRAWAL WILL REDUCE (I) YOUR ROLL-UP TO AGE 80 BENEFIT BASE ON A
PRO RATA BASIS AND (II) YOUR ANNUAL ROLL-UP AMOUNT ON A DOLLAR-FOR-DOLLAR
BASIS, BUT NOT LESS THAN ZERO. HOWEVER, A RMD WITHDRAWAL FROM OUR RMD PROGRAM
WILL NOT REDUCE YOUR ANNUAL ROLL-UP AMOUNT IN THE YEAR YOU FIRST FUND YOUR
PROTECTED BENEFIT ACCOUNT. THE CALCULATION OF BOTH THE DEFERRAL ROLL-UP AMOUNT
AND THE ANNUAL ROLL-UP AMOUNT ARE DISCUSSED LATER IN THIS SECTION.
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In order to elect the "Greater of" death benefit, you must also elect the GMIB.
Beginning with the contract year that follows the contract year in which you
fund your Protected Benefit account, and until the contract year following age
80, if your Lifetime GMIB payments under the GMIB have not begun, you may
withdraw up to your Annual withdrawal amount without reducing your Roll-up to
age 80 benefit base. However, these same withdrawals will reduce the Annual
Roll-up amount that would otherwise be applied to your Roll-up to age 80
benefit base at the end of the year. Remember that the Roll-up amount
applicable under your contract does not become part of your Roll-up to age 80
benefit base until the end of the contract year. THE PORTION OF ANY WITHDRAWAL
IN EXCESS OF YOUR ANNUAL WITHDRAWAL AMOUNT WILL REDUCE YOUR ROLL-UP TO AGE 80
BENEFIT BASE ON A PRO RATA BASIS. SEE "ANNUAL WITHDRAWAL AMOUNT AND YOUR
ROLL-UP TO AGE 80 BENEFIT BASE" LATER IN THIS SECTION.
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your Roll-up to age 80
benefit base will automatically reset to equal the Protected Benefit account
value, if higher, on every contract date anniversary from your contract date,
up to the contract date anniversary following your 80th birthday or contract
maturity, if earlier. See "Annual reset options" earlier in this section. The
Roll-up to age 80 benefit base reset is described in more detail below.
For more information, see "Annual Roll-up amount and Annual Roll-up to age 80
benefit base adjustment" later in this Prospectus.
From time to time, we may offer you some form of payment or incentive in return
for terminating or modifying certain guaranteed benefits. See "Guaranteed
benefit offers" later in this section for more information.
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ANNUAL ROLL-UP RATE
The Annual Roll-up rate is used to calculate amounts credited to your Roll-up
to age 80 benefit base for the contract year in which the first withdrawal is
made from your Protected Benefit account and all subsequent contract years. THE
ANNUAL ROLL-UP RATE USED FOR THE ROLL-UP TO AGE 80 COMPONENT OF THE "GREATER
OF" DEATH BENEFIT IS ALWAYS THE SAME AS THE ANNUAL ROLL-UP RATE UNDER YOUR
GMIB. This rate is calculated using the Ten-Year Treasuries Rate Formula. See
"Annual Roll-up Rate" under "Guaranteed minimum income benefit" for more
information regarding this formula.
A different Roll-up rate is used to calculate amounts credited to your Roll-up
to age 80 benefit base in the contract years prior to the first withdrawal from
your Protected Benefit account -- the "Deferral Roll-up rate," described below.
52
CONTRACT FEATURES AND BENEFITS
DEFERRAL ROLL-UP RATE
The Deferral Roll-up rate is used to calculate amounts credited to your Roll-up
to age 80 benefit base through the end of the contract year that precedes the
contract year in which the first withdrawal is made from your Protected Benefit
account.
Beginning in the first contract year in which you fund your Protected Benefit
account, the Roll-up amount credited to your Roll-up to age 80 benefit base at
the end of the contract year (the "Deferral Roll-up amount") will be calculated
using the Deferral Roll-up rate. Once you take a withdrawal from your Protected
Benefit account, the Deferral Roll-up amount will not be credited at the end of
the contract year in which the withdrawal was taken and will terminate for the
life of the contract. Instead, the Annual Roll-up amount will be credited. THE
DEFERRAL ROLL-UP RATE USED FOR THE ROLL-UP TO AGE 80 COMPONENT OF THE "GREATER
OF" DEATH BENEFIT IS ALWAYS THE SAME AS THE DEFERRAL ROLL-UP RATE UNDER YOUR
GMIB. This rate is calculated using the Deferral Ten-Year Treasuries Rate
Formula. See "Deferral Roll-up Rate" under "Guaranteed minimum income benefit"
for more information regarding this formula.
The Deferral Roll-up rate is designed as an incentive to defer taking your
first withdrawal from your Protected Benefit account until later contract years
while potentially building greater Guaranteed benefit bases.
NEW BUSINESS RATES. The new business Roll-up rates we set for the Roll-up to
age 80 benefit base are the same as the new business rates we set for the GMIB.
Under the GMIB Multi-Year Lock, the Lock-in Rate will apply during the first
[five] contract years. For example, the Lock-in Rate, from the contract date
and for each additional contribution, will apply for [five] years for Series B
and Series CP. Lock-in Rates are no longer applicable after the duration
specified in your contract. See "New business rates" under "Guaranteed minimum
income benefit" for more information.
75 DAY RATE LOCK-IN. When you select the "Greater of" death benefit with the
GMIB, the 75 day rate lock in applies to both the Annual Roll-up rate and
Deferral Roll-up under both Guaranteed benefits. For more information,
including an example of how the 75 day rate lock-in works, see "Guaranteed
minimum income benefit."
RENEWAL RATES. The renewal Roll-up rates we set for the Roll-up to age 80
benefit base are the same as the renewal rates we set for the GMIB. For more
information, see "Renewal rates" under "Guaranteed minimum income benefit."
NOTIFICATION OF RENEWAL RATES. If you elected the "Greater of" death benefit at
issue, your contract will indicate the Annual Roll-up rate and Deferral Roll-up
rate and the applicable time period those rates are in effect. These rates may
not be the same rates that were illustrated prior to your purchase of the
contract. If you choose to fund your "Greater of" death benefit (and your GMIB)
after the new business rates have expired, you can contact a Customer Service
Representative to find out the current Annual Roll-up rate and if applicable,
Deferral Roll-up rate for your contract. In addition, your annual statement of
contract values will show your current Renewal rates as well as the previous
year's Annual Roll-up rate or Deferral Roll-up rate (whichever applies) for
your contract. The information can also be found online, through your Online
Access Account.
ANNUAL ROLL-UP AMOUNT AND ANNUAL ROLL-UP TO AGE 80 BENEFIT BASE ADJUSTMENT
The Annual Roll-up amount is an amount credited to your Roll-up to age 80
benefit base on each contract date anniversary if there has ever been a
withdrawal from your Protected Benefit account. The Annual Roll-up amount
adjustment to your Roll-up to age 80 benefit base is the primary way to
increase the value of the Roll-up to age 80 component of your "Greater of"
death benefit base. This amount is calculated by taking into account your
Roll-up to age 80 benefit base from the preceding contract date anniversary,
the Annual Roll-up rate under your contract, contributions and transfers to the
Protected Benefit account during the contract year and any withdrawals up to
the Annual withdrawal amount during the contract year. The crediting of any
Annual Roll-up amount ends on the contract date anniversary following the owner
reaching age 80. A withdrawal from your Protected Benefit account in the first
contract year in which the Protected Benefit account is funded is an Excess
withdrawal. Any such withdrawal will reduce (i) your Roll-up to age 80 benefit
base on a pro rata basis and (ii) your Annual Roll-up amount on a
dollar-for-dollar basis, but not less than zero. However, a RMD withdrawal from
our RMD program will not reduce your Annual Roll-up amount in the year you
first fund your Protected Benefit account.
Your Annual Roll-up amount at the end of the contract year is calculated as
follows:
.. Your Roll-up to age 80 benefit base on the preceding contract date
anniversary, multiplied by:
.. The Annual Roll-up rate that was in effect on the first day of the contract
year; less
.. Any withdrawals up to the Annual withdrawal amount resulting in a
dollar-for-dollar reduction of the Annual Roll-up amount; plus
.. A pro-rated Roll-up amount for any contribution to the Protected Benefit
account variable investment options during the contract year; plus
.. A pro-rated Roll-up amount for any transfer from the Investment account
variable investment options and/or Guaranteed interest option to the
Protected Benefit account variable investment options during the contract
year; plus
.. A pro-rated Roll-up amount for any contribution amounts to a Special DCA
program that are designated for future transfers to the Protected Benefit
account variable investment options during the contract year.
A PRO-RATED ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE CONTRACT YEAR
AFTER THE CONTRIBUTION OR TRANSFER. (SINCE THERE IS NO ANNUAL WITHDRAWAL AMOUNT
IN THE FIRST CONTRACT YEAR IN WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED,
ANY WITHDRAWALS IN THAT YEAR (OTHER THAN RMD WITHDRAWALS FROM OUR RMD PROGRAM)
RESULT IN A DOLLAR-FOR-DOLLAR REDUCTION OF THE ANNUAL ROLL-UP AMOUNT (BUT NOT
LESS THAN ZERO).)
In the event of your death, a pro-rated portion of the Roll-up amount will be
added to the Roll-up to age 80 benefit base.
Withdrawals in excess of the Annual withdrawal amount may have a harmful effect
on your Roll-up to age 80 benefit base and "Greater of" death benefit. A
withdrawal in excess of your Annual withdrawal amount will always reduce your
Roll-up to age 80 benefit base on a pro
53
CONTRACT FEATURES AND BENEFITS
rata basis. When the owner reaches age 80, withdrawals will reduce your Roll-up
to age 80 benefit base on a dollar-for-dollar basis up to your Annual
withdrawal amount. For more information, see "How withdrawals affect your
Guaranteed benefits" later in this section.
DEFERRAL ROLL-UP AMOUNT AND ANNUAL ROLL-UP TO AGE 80 BENEFIT BASE ADJUSTMENT
The Deferral Roll-up amount is an amount credited to your Roll-up to age 80
benefit base on each contract date anniversary provided you have never taken a
withdrawal from your Protected Benefit account. This amount is calculated by
taking into account your Roll-up to age 80 benefit base from the preceding
contract date anniversary, the applicable Deferral Roll-up rate under your
contract, and contributions and transfers to the Protected Benefit account
during the contract year. The Deferral Roll-up amount adjustment to your
Roll-up to age 80 benefit base is the primary way to increase the value of the
Roll-up to age 80 component of your "Greater of" death benefit base. The
crediting of any Deferral Roll-up amount ends on the contract date anniversary
following the owner reaching age 80.
Your Deferral Roll-up amount at the end of the contract year is calculated as
follows:
.. your Roll-up to age 80 benefit base on the preceding contract date
anniversary, multiplied by:
.. the Deferral Roll-up rate that was in effect on the first day of the
contract year; plus
.. A pro-rated Deferral Roll-up amount for any contribution to the Protected
Benefit account variable investment options during the contract year; plus
.. A pro-rated Deferral Roll-up amount for any transfer from the Investment
account and/or Guaranteed interest option to the Protected Benefit account
variable investment options during the contract year; plus
.. A pro-rated Deferral Roll-up amount for any contribution amounts made
during the contract year to a Special DCA program that are designated for
future transfers to the Protected Benefit account variable investment
options during the contract year.
A PRO-RATED DEFERRAL ROLL-UP AMOUNT IS BASED ON THE NUMBER OF DAYS IN THE
CONTRACT YEAR AFTER THE CONTRIBUTION OR TRANSFER.
In the event of your death, a pro-rated portion of the Deferral Roll-up amount
will be added to the Roll-up to age 80 benefit base.
ROLL-UP TO AGE 80 BENEFIT BASE RESET
THIS SECTION DESCRIBES HOW THE ROLL-UP TO AGE 80 BENEFIT BASE RESET WORKS IN
CONNECTION WITH THE CALCULATION OF YOUR "GREATER OF" DEATH BENEFIT.
Unless you decline or elect a different annual reset option, you will be
enrolled in the automatic annual reset program and your Roll-up to age 80
benefit base will automatically reset to equal the Protected Benefit account
value, if higher, on every contract date anniversary from your contract date,
up to the contract date anniversary following your 80th birthday or contract
maturity, if earlier. See "Annual reset options" earlier in this section.
For Series CP(R) contracts, on your contract date anniversary any credit or
Earnings bonus amounts that are part of your Protected Benefit account value
are included in the calculation of your Roll-up to age 80 benefit base reset.
If you are eligible for an Earnings bonus on your contract date anniversary,
the amount of the Earnings bonus will be credited to your Total account value
after any reset is calculated. If a reset occurs, your Guaranteed benefit
base(s) will not be increased by amounts associated with the Earnings bonus on
that contract date anniversary.
If a reset is not applicable on your contract date anniversary, the Roll-up to
age 80 benefit base will not be eligible to be reset again until the next
contract date anniversary. For jointly-owned contracts, eligibility to reset
the Roll-up to age 80 benefit base is based on the age of the older owner. For
non-naturally owned contracts, eligibility is based on the age of the annuitant
or older joint annuitant.
We will send you a notice in each year that the Roll-up to age 80 benefit base
is eligible to be reset. If you are not enrolled in either the automatic annual
reset program or the automatic customized reset program you will have 30 days
from your contract date anniversary to request a reset. At any time, you may
choose one of the three available reset methods: one-time reset option,
automatic annual reset program or automatic customized reset program. The
procedures for choosing a reset method are the same procedures described under
"GMIB benefit base reset" earlier in this section.
The total dollar amount charged on future contract date anniversaries may
increase as a result of the reset, even if the charge for the "Greater of"
death benefit has not been increased, since the charges may be applied to a
higher "Greater of" death benefit base than would have been otherwise applied.
See "Charges and expenses" later in this Prospectus for more information.
ANNUAL WITHDRAWAL AMOUNT AND YOUR ROLL-UP TO AGE 80 BENEFIT BASE
If you elected the "Greater of" death benefit and the GMIB, both your Roll-up
to age 80 benefit base and GMIB benefit base are calculated the same way until
age 80 . Therefore, your Roll-up to age 80 benefit base and GMIB benefit base
are equal until age 80. Beginning after the contract date anniversary following
the owner's (or older joint owner, if applicable) 80th birthday, your Roll-up
to age 80 benefit base will (i) no longer roll up; (ii) no longer be eligible
for resets; and (iii) be reduced dollar-for-dollar by withdrawals up to your
Annual withdrawal amount. In contrast, the roll ups and resets for the GMIB
benefit base calculation continue until age 95. Therefore, after age 80, your
Roll-up to age 80 benefit base and your GMIB benefit base may differ.
WITHDRAWALS UP TO YOUR ANNUAL WITHDRAWAL AMOUNT AFFECT YOUR ROLL-UP TO AGE 80
BENEFIT BASE THE EXACT SAME WAY AS THEY AFFECT YOUR GMIB BENEFIT BASE PRIOR TO
THE CONTRACT DATE ANNIVERSARY FOLLOWING AGE 80. Beginning with the contract
year that follows the contract year in which you first fund your Protected
Benefit account, if Lifetime GMIB payments have not begun, you may withdraw up
to your Annual withdrawal amount without reducing your Roll-up to age 80
benefit base.
IT IS IMPORTANT TO NOTE THAT WITHDRAWALS IN EXCESS OF YOUR ANNUAL WITHDRAWAL
AMOUNT WILL HAVE A HARMFUL EFFECT ON YOUR ROLL-UP TO AGE 80 BENEFIT BASE AND
YOUR "GREATER OF" DEATH BENEFIT. An Excess withdrawal reduces your Roll-up to
age 80 benefit
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CONTRACT FEATURES AND BENEFITS
base on a pro rata basis. A withdrawal from your Protected Benefit account in
the first contract year in which the Protected Benefit account is funded is an
Excess withdrawal. A withdrawal that causes your Protected Benefit account
value to go to zero will terminate your "Greater of" death benefit.
The reduction of your Roll-up to age 80 benefit base on a pro rata basis means
that we calculate the percentage of your current Protected Benefit account
value that is being withdrawn and we reduce your current Roll-up to age 80
benefit base by the same percentage. A pro rata withdrawal will have a
significant adverse effect on your Roll-up to age 80 benefit base in cases
where the Protected Benefit account value is less than the Roll-up to age 80
benefit base. For an example of how pro rata reduction works, see "How
withdrawals affect your Guaranteed benefits" later in this section.
For contracts with non-natural owners, the Roll-up to age 80 benefit base will
be based on the annuitant's (or older joint annuitant's) age.
Please see Appendix III later in this Prospectus for an example of how the
Roll-up to age 80 benefit base that is part of the "Greater of" Guaranteed
minimum death benefit is calculated.
-------------------
If you change ownership of the contract, generally the Guaranteed minimum death
benefit will automatically terminate, except under certain circumstances. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information" later in this Prospectus for more information.
The Guaranteed minimum death benefits are subject to state availability and
your age at contract issue. For a state-by-state description of all material
variations of this contract, see Appendix V later in this Prospectus.
For contracts with non-natural owners, the available death benefits are based
on the annuitant's age.
Please see both "Effect of your account values falling to zero" in "Determining
your contract's value" and "How withdrawals affect your Guaranteed benefits"
later in this section and the section entitled "Charges and expenses" later in
this Prospectus for more information on these Guaranteed benefits.
See Appendix III later in this Prospectus for examples of how the benefit bases
for the Guaranteed minimum death benefits work.
SERIES CP(R) AND YOUR GUARANTEED BENEFIT BASES
Credit and Earnings bonus amounts are not included in your GMIB and GMDB
benefit bases. If you decide to transfer amounts from your Investment account
to your Protected Benefit account variable investment options, only amounts
representing contributions and earnings will increase your benefit bases.
Credit and Earnings bonus amounts to your Investment account are considered
transferred first, though any amount of that transfer that represents those
amounts will be excluded from your Guaranteed benefit bases, except to the
extent that any credit and Earnings bonus amounts are part of the Protected
Benefit account value, which is used to calculate the Highest Anniversary Value
benefit base or a benefit base reset in connection with the GMIB benefit base
or the Roll-up to age 80 benefit base (used to calculate the "Greater of" death
benefit). All transfers, however, will increase your Protected Benefit account
value by the total amount of the transfer.
For example:
On December 1st, you purchase a Series CP(R) contract, make an initial
contribution of $100,000 and you also elect the GMIB and the Return of
Principal death benefit. You allocate the entire $100,000 contribution to the
Investment account variable investment options and $0 to the Protected Benefit
account variable investment options. In effect, you have not started to fund
your Guaranteed benefits.
The credit on contributions applied to your contract is $3,000 ($100,000 x 3%),
resulting in an initial Investment account value of $103,000.
On December 15th, you decide to fund your Guaranteed benefits by transferring
$10,000 to the Protected Benefit account variable investment options. After
that transfer, your Protected Benefit account value would be $10,000, but your
GMIB benefit base and Return of Principal death benefit base would both be
$7,000 ($10,000 - $3,000). This is because credits to your Investment account
are always considered transferred first.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFITS
Except as otherwise described in this section withdrawals from your Protected
Benefit account will reduce your Guaranteed benefit bases on a pro rata basis.
Reduction on a pro rata basis means that we calculate the percentage of your
current Protected Benefit account value that is being withdrawn and we reduce
your current Guaranteed benefit bases by the same percentage.
For example, if your Protected Benefit account value is $30,000 and you
withdraw $12,000, you have withdrawn 40% of your Protected Benefit account
value. If your Guaranteed benefit base was $40,000 before the withdrawal, it
would be reduced by $16,000 ($40,000 X .40) and your new Guaranteed benefit
base after the withdrawal would be $24,000 ($40,000 - $16,000).
If your Protected Benefit account value is greater than your Guaranteed benefit
base, an Excess withdrawal will result in a reduction of your Guaranteed
benefit base that will be less than the withdrawal. For example, if your
Protected Benefit account value is $30,000 and you withdraw $12,000, you have
withdrawn 40% of your Protected Benefit account value. If your Guaranteed
benefit base was $20,000 before the withdrawal, it would be reduced by $8,000
($20,000 X .40) and your new Guaranteed benefit base after the withdrawal would
be $12,000 ($20,000 - $8,000).
A pro rata deduction means that if you take a withdrawal that reduces your
Guaranteed benefit bases on a pro rata basis and your Protected Benefit account
value is less than your Guaranteed benefit base, the amount of the Guaranteed
benefit base reduction will exceed the amount of the withdrawal.
For purposes of calculating the adjustment to your Guaranteed benefit bases,
the amount of the withdrawal will include the amount of any applicable
withdrawal charge. Using the example above, the $12,000 withdrawal would
include the withdrawal amount paid to you and the amount of any applicable
withdrawal charge deducted from your Protected Benefit account value. For more
information on the calculation of the charge, see "Withdrawal charge" later in
this Prospectus.
If you elected the GMIB with the Highest Anniversary Value death benefit or the
"Greater of" death benefit and you take a withdrawal from your Protected
Benefit account, your Highest Anniversary Value benefit base for the respective
Guaranteed minimum death benefits will be reduced on a dollar-for-dollar basis
by withdrawals up to the Annual withdrawal amount, and on a pro rata basis by
Excess withdrawals (including any applicable withdrawal charges). NOTE THAT ANY
WITHDRAWAL FROM YOUR PROTECTED BENEFIT ACCOUNT IN THE FIRST CONTRACT YEAR IN
WHICH THE PROTECTED BENEFIT ACCOUNT IS FUNDED IS AN EXCESS WITHDRAWAL. If you
take a withdrawal from your Protected Benefit
55
CONTRACT FEATURES AND BENEFITS
account and you did not elect the GMIB with the Highest Anniversary Value death
benefit, your Highest Anniversary Value benefit base will be reduced on a pro
rata basis (including any applicable withdrawal charges).
Withdrawals affect your GMIB benefit base and Roll-up to age 80 benefit base,
as follows:
.. A withdrawal from your Protected Benefit account in the contract year in
which you first fund your Protected Benefit account will reduce your GMIB
benefit base and Roll-up to age 80 benefit base on a pro rata basis.
.. Beginning with the contract year that follows the contract year in which
you fund your Protected Benefit account, if your Lifetime GMIB payments
have not begun, withdrawals up to your Annual withdrawal amount will not
reduce your GMIB benefit base.
.. Beginning with the contract year that follows the contract year in which
you fund your Protected Benefit account and until the contract date
anniversary after age 80, if your Lifetime GMIB payments have not begun,
withdrawals up to your Annual withdrawal amount will not reduce your
Roll-up to age 80 benefit base.
.. Beginning on the contract date anniversary after age 80, withdrawals will
reduce your Roll-up to age 80 benefit base on a dollar-for-dollar basis up
to your Annual withdrawal amount.
.. The portion of a withdrawal in excess of your Annual withdrawal amount
("Excess withdrawal") will always reduce your GMIB benefit base and Roll-up
to age 80 benefit base on a pro rata basis. This means that once a
withdrawal is taken that causes the sum of the withdrawals from your
Protected Benefit account to exceed the Annual withdrawal amount, that
portion of the withdrawal that exceeds the Annual withdrawal amount and any
subsequent withdrawals from your Protected Benefit account in that contract
year will reduce the GMIB benefit base and Roll-up to age 80 benefit base
on a pro rata basis.
Withdrawals affect your RMD Wealth Guard death benefit base, as follows:
.. The full amount of any withdrawal from your Protected Benefit Account taken
before the calendar year in which you turn age 701/2 will reduce your RMD
Wealth Guard death benefit base on a pro rata basis.
.. The full amount of any withdrawal from your Protected Benefit Account taken
during your first contract year, even if you turn age 701/2 during that
year, will reduce your RMD Wealth Guard death benefit base on a pro rata
basis.
.. The portion of a withdrawal from your Protected Benefit account that
exceeds your RMD Wealth Guard withdrawal amount for the calendar year will
reduce your RMD Wealth Guard death benefit base on a pro rata basis. This
means that once you take a withdrawal that causes the sum of the
withdrawals from your Protected Benefit account to exceed your RMD Wealth
Guard withdrawal amount, that portion of the withdrawal that exceeds the
RMD Wealth Guard withdrawal amount, and any subsequent withdrawals from
your Protected Benefit account in that calendar year, will reduce your RMD
Wealth Guard death benefit base on a pro rata basis.
.. Other than during your first contract year, a withdrawal from your
Protected Benefit account beginning with the calendar year in which you
turn age 701/2 will be treated as a RMD Wealth Guard withdrawal and will
count towards your RMD Wealth Guard withdrawal amount. Withdrawals from
your Protected Benefit account up to your RMD Wealth Guard withdrawal
amount will not reduce your RMD Wealth Guard death benefit base.
Please see Appendix VII later in this Prospectus for examples of how
withdrawals affect your Guaranteed benefit bases. For information on how RMD
payments affect your Guaranteed benefits, see "Lifetime required minimum
distribution withdrawals" in "Accessing your money" later in this Prospectus.
For information on how RMD payments affect your RMD Wealth Guard death benefit,
see "RMDs for contracts with the RMD Wealth Guard death benefit" in "Accessing
your money" later in this Prospectus. For information about the RMD Wealth
Guard death benefit, see "RMD Wealth Guard death benefit" earlier in this
Prospectus.
DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
You can drop or change your Guaranteed benefits, subject to our rules. Your
ability to do so depends on whether you have funded your Protected Benefit
account. If you have not funded your Protected Benefit account, we call this a
"pre-funding" drop or change. If you have funded your Protected Benefit
account, we call this a "post-funding" drop. Also, in order to make a change to
your Guaranteed minimum death benefit, you must meet the eligibility
requirements for the new benefit. If you drop a Guaranteed benefit, you will
not be permitted to add it back to your contract.
PRE-FUNDING DROP OR CHANGE
Prior to funding your Protected Benefit account, you can drop your GMIB,
Guaranteed minimum death benefit, or change your Guaranteed minimum death
benefit. For contracts with the GMIB, the Guaranteed minimum death benefit
generally cannot be changed without first dropping the GMIB. In Appendix I, we
provide a chart that lists the possible Guaranteed benefit combinations under
the Retirement Cornerstone(R) contract and our rules for dropping and changing
benefits prior to funding your Protected Benefit account.
POST-FUNDING DROP
If you funded your Protected Benefit account at issue and contributions to the
contract are no longer subject to withdrawal charges, you have the option to
drop both your GMIB and Guaranteed minimum death benefit. Also, in some cases,
you can drop your GMIB and retain your Guaranteed minimum death benefit. If you
funded your Protected Benefit account after issue, you generally cannot drop
your Guaranteed benefit(s) until the later of: (i) the contract date
anniversary following the date the Protected Benefit account was funded, and
(ii) the expiration of the period in which your contract is subject to
withdrawal charges.
If you decide to drop all Guaranteed benefits post-funding, we require that you
complete the administrative form we provide for this purpose. You must either
take a full withdrawal of your Protected Benefit account or make a one-time
transfer to the Investment account variable investment options and guaranteed
interest option. The Guaranteed benefits and any applicable charges will be
terminated as of the business day we receive the properly completed
administrative form at our processing office. Please note that when a
Guaranteed benefit (other than the Return of Principal death benefit) is
dropped on any date other than a contract date anniversary, we will deduct a
pro rata portion of the charge for that year.
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CONTRACT FEATURES AND BENEFITS
For contracts with the GMIB, the Guaranteed minimum death benefit cannot be
dropped without first dropping the GMIB. In Appendix I, we provide a chart that
lists the possible Guaranteed benefit combinations under the Retirement
Cornerstone(R) contract and our rules for dropping and changing benefits if you
have already funded your Protected Benefit account.
Please note that if you drop the GMIB from your contract, you may not retain
the "Greater of" GMDB.
DROPPING OR CHANGING YOUR GUARANTEED BENEFITS IN THE EVENT OF A FEE CHANGE. In
the event that we exercise our contractual right to change the fee for the
GMIB, "Greater of" death benefit, or RMD Wealth Guard death benefit, you may be
given a one-time opportunity to drop your Guaranteed benefits or change your
GMDB if it is not yet funded, subject to our rules. You may drop or change your
Guaranteed benefits only within 30 days of the fee change notification. If you
have funded your Protected Benefit account and wish to drop your Guaranteed
benefits, the requirement that all withdrawal charges have expired will be
waived. See "Fee changes for the Guaranteed minimum income benefit and "Greater
of" death benefit" in "Charges and expenses" and Appendix I "Dropping or
changing your Guaranteed benefits" later in this Prospectus for more
information.
GUARANTEED BENEFIT OFFERS
From time to time, we may offer you some form of payment or incentive in return
for terminating or modifying certain guaranteed benefits. Previously, we made
offers to groups of contract owners that provided for an increase in account
value in return for terminating their guaranteed death or income benefits. In
the future, we may make additional offers to these and other groups of contract
owners.
When we make an offer, we may vary the offer amount, up or down, among the same
group of contract owners based on certain criteria such as account value , the
difference between account value and any applicable benefit base, investment
allocations and the amount and type of withdrawals taken. For example, for
guaranteed benefits that have benefit bases that can be reduced on either a pro
rata or dollar-for-dollar basis, depending on the amount of withdrawals taken,
we may consider whether you have taken any withdrawal that has caused a pro
rata reduction in your benefit base, as opposed to a dollar-for-dollar
reduction. Also, we may increase or decrease offer amounts from offer to offer.
In other words, we may make an offer to a group of contract owners based on an
offer amount, and, in the future, make another offer based on a higher or lower
offer amount to the remaining contract owners in the same group.
If you accept an offer that requires you to terminate a guaranteed benefit, we
will no longer charge you for it, and you will not be eligible for any future
offers related to that type of guaranteed benefit, even if such future offer
would have included a greater offer amount or different payment or incentive.
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT
(NOT AVAILABLE FOR SERIES CP(R) CONTRACTS)
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. 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 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.
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CONTRACT FEATURES AND BENEFITS
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 want 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 VIII later in this Prospectus for more information.
.. Any subsequent contribution 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 VIII 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 generally made over your life
expectancy determined in the calendar year after the deceased owner's death
and determined on a term certain basis.
.. 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, as permitted.
.. 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 may
apply as described in "Charges and expenses" later in this Prospectus.
.. If you elected the Return of Principal death benefit or the Highest
Anniversary Value death benefit, amounts withdrawn from the contract to
meet RMDs will reduce the benefit base and may limit the utility of the
benefit(s).
.. The GMIB, Spousal continuation, automatic investment program, automatic
payment plans and systematic withdrawals are not available under the
Inherited IRA beneficiary continuation contract.
.. Upon your death, your beneficiary has the option to continue taking RMDs
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. If your beneficiary elects to continue
to take distributions, withdrawal charges (if applicable) will no longer
apply. If you have a Guaranteed minimum death benefit, it will no longer be
in effect and any applicable charge for such benefit will stop.
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CONTRACT FEATURES AND BENEFITS
.. When you die, we will pay your beneficiary the Investment account value and
the greater of the Protected Benefit account value or the applicable death
benefit.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may exercise
your cancellation right under the contract to receive a refund. To exercise
this cancellation right, you must notify us with a signed letter of instruction
electing this right, to our processing office within 10 days after you receive
your contract. If state law requires, this "free look" period may be longer.
Other state variations may apply. For a state-by-state description of all
material variations of this contract, including specific information on your
"free look" period, see Appendix V later in this Prospectus.
Generally, your refund will equal your Total account value under the contract
on the day we receive notification of your decision to cancel the contract and
will reflect (i) any investment gain or loss in the variable investment options
(less the daily charges we deduct), (ii) any guaranteed interest in the
guaranteed interest option, and (iii) any interest in the account for special
dollar cost averaging (if applicable), through the date we receive your
contract. Some states, however, require that we refund the full amount of your
contribution (not reflecting (i), (ii) or (iii) above). 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. When required by
applicable law to return the full amount of your contribution, we will return
the greater of your contribution or your contract's cash value.
For Series CP(R) contract owners, please note that you will forfeit the Credit
by exercising this right of cancellation.
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" in "Accessing your money" later in this
Prospectus. Surrendering your contract may yield results different than
canceling your contract, including a greater potential for taxable income. In
some cases, your cash value upon surrender may be greater than your
contributions to the contract. Please see "Tax information," later in this
Prospectus.
59
CONTRACT FEATURES AND BENEFITS
2. Determining your contract's value
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YOUR ACCOUNT VALUE AND CASH VALUE
Your "Total account value" is the total of: (i) the Protected Benefit account
value, and (ii) the Investment account value. Your "Protected Benefit account
value" is the total value you have in: (i) the Protected Benefit account
variable investment options, and (ii) amounts in a Special DCA program
designated for the Protected Benefit account variable investment options. Your
"Investment account value" is the total value you have in: (i) the Investment
account variable investment options, (ii) the guaranteed interest option, and
(iii) amounts in a Special DCA program designated for the Investment account
variable investment options and the guaranteed interest option. See "What are
your investment options under the contract?" in "Contract features and
benefits" for a detailed list of the Protected Benefit account variable
investment options and Investment account variable investment options.
Your contract also has a "cash value." Your contract's cash value is equal to
the Total account value, less: (i) the total amount or a pro rata portion of
the annual administrative charge, as well as any optional benefit charges; 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)administration expenses; and
(iii)distribution charges.
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 subsequent contributions (plus the Credit for Series
CP(R) contracts);
(ii)decreased to reflect withdrawals (plus withdrawal charges, if applicable);
or
(iii)increased to reflect transfers into, or decreased to reflect a transfer
out of, a variable investment option.
In addition, when we deduct any Guaranteed benefit charge, the number of units
credited to your contract will be reduced. Your units are also reduced when we
deduct the annual administrative charge. A description of how unit values are
calculated can be found in the SAI.
YOUR CONTRACT'S VALUE IN THE GUARANTEED INTEREST OPTION
Your value in the guaranteed interest option at any time will equal: your
contributions and transfers to that option, plus interest, minus transfers and
withdrawals out of the option, and charges we deduct.
YOUR CONTRACT'S VALUE IN THE ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING
(FOR SERIES B CONTRACTS ONLY)
Your value in the account for special dollar cost averaging at any time will
equal your contribution allocated to that option, plus interest, minus any
amounts that have been transferred to the variable investment options you have
selected, and charges we deduct.
EFFECT OF YOUR ACCOUNT VALUES FALLING TO ZERO
In general, your contract will terminate without value if your Total account
value falls to zero as the result of withdrawals, or the payment of any
applicable charges when due, or a combination of two, as described below:
.. If you have Investment account value only and it falls to zero as the
result of withdrawals or the payment of any applicable charges, your
contract will terminate.
.. Your Return of Principal, Highest Anniversary Value, and "Greater of"
Guaranteed minimum death benefits will terminate without value if your
Protected Benefit account value falls to zero as the result of withdrawals
or the payment of any applicable charges. This will happen whether or not
you also elected the GMIB or receive Lifetime GMIB payments. Unless you
have amounts allocated to your Investment account, your contract will also
terminate.
.. If you elected the RMD Wealth Guard death benefit and your Protected
Benefit account value falls to zero, the RMD Wealth Guard death benefit
will terminate. You will be eligible for a refund of 10% of your total
contributions and transfers to the Protected Benefit account LESS the
dollar amount of any Excess RMD withdrawals you have taken. For more
information, see "RMD Wealth Guard Refund feature" in "Contract Features
and Benefits" earlier in this Prospectus. Your contract will terminate,
unless you have amounts allocated to the Investment account. Any remaining
RMD payments from the Investment account will continue uninterrupted from
the Investment account, beginning in the calendar year the Protected
Benefit account falls to zero. See "RMD Wealth Guard death benefit" in
"Contract features and benefits" earlier in this Prospectus and "Tax
information" later in the Prospectus for more information.
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DETERMINING YOUR CONTRACT'S VALUE
.. If you elected the GMIB and your Protected Benefit account value falls to
zero as the result of the payment of any applicable charges or a withdrawal
that is not an Excess withdrawal, you will receive Lifetime GMIB payments
if the no lapse guarantee is still in effect, in accordance with the terms
of the GMIB. Unless you have amounts allocated to your Investment account,
your contract will also terminate.
.. If your Protected Benefit account value falls to zero due to an Excess
withdrawal, your GMIB will terminate and you will not receive Lifetime GMIB
payments. Unless you have amounts allocated to your Investment account,
your contract will also terminate.
Certain withdrawals, even one that does not cause your Total account value to
fall to zero, will be treated as a request to surrender your contract and
terminate your Guaranteed minimum death benefit. See "Withdrawals treated as
surrenders" in "Accessing your money."
As discussed earlier in this Prospectus, we reserve the right to discontinue or
limit your ability to make subsequent contributions to the
contract or subsequent transfers or contributions to the Protected Benefit
account variable investment options, either directly or through a Special DCA
program. If we exercise this right, you will not have the ability to fund the
contract and any Guaranteed benefits in order to avoid contract and/or
Guaranteed benefit termination.
Withdrawals and/or deductions of charges during or following a period of poor
market performance in which your account values decrease, increases the
possibility that such a withdrawal or deduction could cause your account values
to fall to zero.
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DETERMINING YOUR CONTRACT'S VALUE
3. Transferring your money among investment options
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TRANSFERRING YOUR ACCOUNT VALUE
At any time before the date annuity payments are to begin, you can transfer
some or all of your Total account value among the investment options, subject
to the following:
.. You may not transfer any amount to a Special DCA program.
.. Amounts allocated to the Investment account variable investment options or
guaranteed interest option can be transferred among the Investment account
variable investment options. If you elect the "Greater of" GMDB, you may
transfer amounts allocated to the Investment account variable investment
options and the guaranteed interest option to the Protected Benefit account
variable investment options through age 70 or, if later, until your first
contract date anniversary. If you do not elect the "Greater of" GMDB,
Highest anniversary Death Benefit or RMD Wealth Guard death benefit and you
select the GMIB, you may transfer amounts allocated to the Investment
account variable investment options and the guaranteed interest option to
the Protected Benefit account variable investment options through age 80
or, if later, until your first contract date anniversary. Transfers into
your Protected Benefit account will be allocated in accordance with your
allocation instructions on file. See the limitations on amounts that may be
transferred out of the guaranteed interest option below.
.. If you elect the Highest anniversary death benefit, you may transfer
amounts allocated to the Investment account variable investment options and
the guaranteed interest option to the Protected Benefit account variable
investment options through age [80].
.. If you elect the RMD Wealth Guard death benefit, you may transfer amounts
allocated to the Investment account variable investment options and the
guaranteed interest option to the Protected Benefit account variable
investment options at any time prior to your 69th birthday, or if later,
until 90 days after your contract date, subject to the rules and
limitations described below:
-- If you are under age 65, you may transfer 100% of your Investment account
value variable investment options to the Protected Benefit account
variable investment options.
-- If you were age 20-64 on your contract date, and are now age 65 or older,
the maximum amount you may transfer to the Protected Benefit account is
equal to your Investment account value as of the transaction date minus
your total contributions to the Investment account from age 65 through
age 68. For purposes of this calculation, "total contributions" excludes
(i) contributions you made to the Investment account prior to your first
contract date anniversary; and (ii) for Series CP(R) contracts, any
credit and Earnings bonus amounts added to the Investment account.
For example, assume you were 641/2 on your contract date, you elected the
RMD Wealth Guard death benefit, you are now 68 years old and your
Investment account value on the date of your transfer request is $30,000.
Further assume that your total contributions to the Investment Account
from age 65 to 68 were equal to $20,000, but of that amount $5,000 was
contributed before your first contract date anniversary. The maximum
amount you may transfer from the Investment account variable investment
options to the Protected Benefit account variable investment options is
$15,000 ($30,000 - ($20,000 - $5,000)).
-- If you elected the RMD Wealth Guard death benefit and were age 65-68 on
your contract date, you may transfer 100% of your Investment account
value variable investment options to the Protected Benefit account
variable investment options.
.. Amounts invested in the Protected Benefit account variable investment
options can only be transferred among the Protected Benefit account
variable investment options. Transfers out of the Protected Benefit account
variable investment options into the Investment account variable investment
options or guaranteed interest option are not permitted. However, if the
owner elects to drop all Guaranteed benefits, the entire Protected Benefit
account value must be withdrawn from the contract or transferred into the
Investment account variable investment options or guaranteed interest
option. See "Dropping or changing your Guaranteed benefits" in "Contract
features and benefits" earlier in this Prospectus. See the limitations on
amounts that may be transferred into the guaranteed interest option below.
.. ONCE A WITHDRAWAL IS TAKEN FROM YOUR PROTECTED BENEFIT ACCOUNT, YOU CANNOT
MAKE ADDITIONAL CONTRIBUTIONS TO YOUR PROTECTED BENEFIT ACCOUNT. YOU MAY,
HOWEVER, BE ABLE TO CONTINUE TO MAKE TRANSFERS FROM YOUR INVESTMENT ACCOUNT
TO THE PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS UNTIL SUCH
TIME AS YOU MAKE A SUBSEQUENT CONTRIBUTION TO YOUR INVESTMENT ACCOUNT, AT
WHICH POINT TRANSFERS INTO THE PROTECTED BENEFIT ACCOUNT WILL NO LONGER BE
AVAILABLE. A subsequent contribution received by us in the first 90
calendar days after your contract is issued will not be counted towards
shutting down transfers to your Protected Benefit account. See "How
withdrawals affect your Guaranteed benefits" in "Contract features and
benefits" earlier in this Prospectus.
.. A transfer into the guaranteed interest option will not be permitted if
such transfer would result in more than 25% of the Total account value
being allocated to the guaranteed interest option, based on the Total
account value as of the previous business day. This restriction is waived
for amounts transferred from a dollar cost averaging program into the
guaranteed interest option.
.. We reserve the right to restrict transfers into and among variable
investment options, including limitations on the number, frequency, or
dollar amount of transfers.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
.. We may charge a transfer charge for any transfers in excess of 12 transfers
in a contract year. For more information, see "Transfer charge" under
"Charges that AXA Equitable deducts" in "Charges and expenses" later in
this Prospectus.
.. For transfer restrictions regarding disruptive transfer activity, see
"Disruptive transfer activity" below.
.. The maximum amount that may be transferred from the guaranteed interest
option to any investment option (including amounts transferred pursuant to
the fixed-dollar option and interest sweep option dollar cost averaging
programs described under "Allocating your contributions" in "Contract
features and benefits" earlier in this Prospectus) in any contract year is
the greatest of:
(a)25% of the amount you have in the guaranteed interest option on the last
day of the prior contract year; or
(b)the total of all amounts transferred at your request from the guaranteed
interest option to any of the investment options in the prior contract
year; or
(c)25% of amounts transferred or allocated to the guaranteed interest option
during the current contract year.
From time to time, we may remove the restrictions regarding transferring
amounts out of the guaranteed interest option. If we do so, we will tell you by
way of a supplement to this Prospectus. We will also tell you at least 45 days
in advance of the day that we intend to reimpose the transfer restrictions.
When we reimpose the transfer restrictions, if any dollar cost averaging
transfer out of the guaranteed interest option causes a violation of the 25%
outbound restriction, that dollar cost averaging program will be terminated for
the current contract year. A new dollar cost averaging program can be started
in the next or subsequent contract years.
You may request a transfer in writing (using our specific form), through Online
Account Access. You must send in all written transfer requests on the specific
form we provide directly to our processing office. We will confirm all
transfers in writing.
Please see "Allocating your contributions" in "Contract features and benefits"
for more information about your role in managing your allocations.
DISRUPTIVE TRANSFER ACTIVITY
You should note that the contract is not designed for professional "market
timing" organizations, or other organizations or individuals engaging in a
market timing strategy. The contract is not designed to accommodate programmed
transfers, frequent transfers or transfers that are large in relation to the
total assets of the underlying Portfolio.
Frequent transfers, including market timing and other program trading or
short-term trading strategies, may be disruptive to the underlying Portfolios
in which the variable investment options invest. Disruptive transfer activity
may adversely affect performance and the interests of long-term investors by
requiring a Portfolio to maintain larger amounts of cash or to liquidate
Portfolio holdings at a disadvantageous time or price. For example, when market
timing occurs, a Portfolio may have to sell its holdings to have the cash
necessary to redeem the market timer's investment. This can happen when it is
not advantageous to sell any securities, so the Portfolio's performance may be
hurt. When large dollar amounts are involved, market timing can also make it
difficult to use long-term investment strategies because a Portfolio cannot
predict how much cash it will have to invest. In addition, disruptive transfers
or purchases and redemptions of portfolio investments may impede efficient
portfolio management and impose increased transaction costs, such as brokerage
costs, by requiring the portfolio manager to effect more frequent purchases and
sales of portfolio securities. Similarly, a Portfolio may bear increased
administrative costs as a result of the asset level and investment volatility
that accompanies patterns of excessive or short-term trading. Portfolios that
invest a significant portion of their assets in foreign securities or the
securities of small- and mid-capitalization companies tend to be subject to the
risks associated with market timing and short-term trading strategies to a
greater extent than Portfolios that do not. Securities trading in overseas
markets present time zone arbitrage opportunities when events affecting
Portfolio securities values occur after the close of the overseas market but
prior to the close of the U.S. markets. Securities of small- and
mid-capitalization companies present arbitrage opportunities because the market
for such securities may be less liquid than the market for securities of larger
companies, which could result in pricing inefficiencies. Please see the
prospectuses for the underlying Portfolios for more information on how
Portfolio shares are priced.
We currently use the procedures described below to discourage disruptive
transfer activity. You should understand, however, that these procedures are
subject to the following limitations: (1) they primarily rely on the policies
and procedures implemented by the underlying Portfolios; (2) they do not
eliminate the possibility that disruptive transfer activity, including market
timing, will occur or that portfolio performance will be affected by such
activity; (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all contract owners.
We offer investment options with underlying Portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "affiliated trusts"), as
well as investment options with underlying Portfolios of outside trusts with
which AXA Equitable has entered participation agreements (the "unaffiliated
trusts" and, collectively with the affiliated trusts, the "trusts"). The
affiliated trusts have adopted policies and procedures regarding disruptive
transfer activity. They discourage frequent purchases and redemptions of
Portfolio shares and will not make special arrangements to accommodate such
transactions. They aggregate inflows and outflows for each Portfolio on a daily
basis. On any day when a Portfolio's net inflows or outflows exceed an
established monitoring threshold, the affiliated trust obtains from us contract
owner trading activity. The affiliated trusts currently consider transfers into
and out of (or vice versa) the same variable investment option within a five
business day period as potentially disruptive transfer activity.
When a contract is identified in connection with potentially disruptive
transfer activity for the first time, a letter is sent to the contract owner
explaining that there is a policy against disruptive transfer activity and that
if such activity continues certain transfer privileges may be eliminated. If
and when the contract owner is identified a second time as engaged in
potentially disruptive transfer activity under the contract, we currently
prohibit the use of voice, fax and automated transaction services. We currently
apply such action for the remaining life of each
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
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.
REBALANCING AMONG YOUR INVESTMENT ACCOUNT VARIABLE INVESTMENT OPTIONS AND
GUARANTEED INTEREST OPTION
We offer two rebalancing programs that you can use to automatically reallocate
your Investment account value among your Investment account variable investment
options and the guaranteed interest option. Option I allows you to rebalance
your Investment account value among the Investment account variable investment
options. Option II allows you to rebalance your Investment account value among
the Investment account variable investment options and the guaranteed interest
option.
To enroll in one of our rebalancing programs, you must notify us in writing or
through Online Account Access and tell us:
(a)the percentage you want invested in each investment option (whole
percentages only), and
(b)how often you want the rebalancing to occur (quarterly, semiannually, or
annually on a contract year basis)
Rebalancing will occur on the same day of the month as the contract date. If a
contract is established after the 28th, rebalancing will occur on the first
business day of the month following the contract date. If you elect quarterly
rebalancing, the rebalancing in the last quarter of the contract year will
occur on the contract date anniversary.
Once it is available, you may elect or terminate the rebalancing program at any
time. You may also change your allocations under the program at any time. Once
enrolled in the rebalancing program, it will remain in effect until you
instruct us in writing to terminate the program. Requesting an investment
option transfer while enrolled in our rebalancing program will not
automatically change your allocation instructions for rebalancing your account
value. This means that upon the next scheduled rebalancing, we will transfer
amounts among your investment options pursuant to the allocation instructions
previously on file for your program. Changes to your allocation instructions
for the rebalancing program (or termination of your enrollment in the program)
must be in writing and sent to our processing office. Termination requests can
be made online through Online Account Access. See "How to reach us" in "Who is
AXA Equitable?" earlier in this Prospectus. There is no charge for the
rebalancing feature.
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REBALANCING DOES NOT ASSURE A PROFIT OR PROTECT AGAINST LOSS. YOU SHOULD
PERIODICALLY REVIEW YOUR ALLOCATION PERCENTAGES AS YOUR NEEDS CHANGE. YOU MAY
WANT TO DISCUSS THE REBALANCING PROGRAM WITH YOUR FINANCIAL PROFESSIONAL BEFORE
ELECTING THE PROGRAM.
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While your rebalancing program is in effect, we will transfer amounts among the
applicable investment options so that the percentage of your Investment account
value that you specify is invested in each option at the end of each
rebalancing date.
If you select Option II, you will be subject to our rules regarding transfers
from the guaranteed interest option to the Investment account variable
investment options. These rules are described in "Transferring your account
value" earlier in this section. Under Option II, a transfer into or out of the
guaranteed interest option to initiate the rebalancing program will not be
permitted if such transfer would violate these rules. If this occurs, the
rebalancing program will not go into effect.
You may not elect Option II if you are participating in any dollar cost
averaging program. You may not elect Option I if you are participating in
special money market dollar cost averaging or general dollar cost averaging.
Our optional rebalancing programs are not available for amounts allocated to
the Protected Benefit account variable investment options. For information
about rebalancing among the Protected Benefit account variable investment
options, see the section below.
REBALANCING AMONG YOUR PROTECTED BENEFIT ACCOUNT VARIABLE INVESTMENT OPTIONS
You can rebalance your Protected Benefit account value by submitting a request
to rebalance as of the date we receive your request, however, scheduled
recurring rebalancing is not available. Therefore, any subsequent rebalancing
transactions would require a subsequent rebalancing request. Your rebalance
request must indicate the percentage you want rebalanced in each investment
option (whole percentages only). You can rebalance only to the investment
options available in your Protected Benefit account.
When we rebalance your Protected Benefit account, we will transfer amounts
among the investment options so that the percentage of your account value in
each option at the end of the rebalancing date matches the most recent
allocation instructions that we have on file. Rebalancing does not assure a
profit or protect against loss, so you should periodically review your
allocation percentages as your needs change.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
SYSTEMATIC TRANSFER PROGRAM
Under the systematic transfer program, you may elect to have amounts from the
Investment account variable investment options and the guaranteed interest
option transferred to the Protected Benefit account variable investment
options. This can be done on a quarterly, semi-annual or annual basis. There
are four transfer options available under this program.
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PLEASE CHECK WITH YOUR FINANCIAL PROFESSIONAL OR ONE OF OUR CUSTOMER SERVICE
REPRESENTATIVES REGARDING THE AVAILABILITY OF OUR SYSTEMATIC TRANSFER PROGRAM
OPTIONS.
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(i)FIXED DOLLAR. Under this option, you can transfer a specified dollar amount,
subject to a minimum of $50. The dollar amount you select cannot be changed
while the program is in effect. If your Investment account value on the
transfer date is $50 or less, and you have not elected the systematic
transfer program to be in effect for a specified period of time, we will
transfer the entire amount and the program will end.
(ii)FIXED PERCENTAGE. Under this program, you can transfer a specified
percentage of your Investment account as of the date of the transfer. The
percentage you select cannot be changed while the program is in effect. If
your Investment account value on the transfer date is $50 or less, and you
have not elected the systematic transfer program to be in effect for a
specified period of time, we will transfer the entire amount and the
program will end.
(iii)TRANSFER THE GAINS. Under this option, you can transfer amounts in excess
of your "total net contributions" (described below) made to the Investment
account as of the date of the transfer. The calculated amount to be
transferred must be $50 or greater in order for the transfer to occur. If
you elect this option after issue, the first transfer will be for all
gains in the Investment account as of the date of the transfer. If there
are no gains in the Investment account, a transfer will not occur.
(iv)TRANSFER THE GAINS IN EXCESS OF A SPECIFIED PERCENTAGE. Under this option,
you can transfer amounts in excess of a specified percentage of your "total
net contributions" (described below) made to the Investment account as of
the date of the sweep. There is no restriction on the maximum percentage
you can request, however, the specified percentage cannot be changed while
the program is in effect. Also, the calculated amount to be transferred
must be $50 or greater in order for the transfer to occur. If you elect
this option after issue, the first transfer will be for all gains in the
Investment account in excess of a specified percentage. If there are no
gains in the Investment account, a transfer will not occur.
For all options, you may elect the systematic transfer program to be in effect
for a specified period of time. If you elect the systematic transfer program to
be in effect for a specified period of time, the program will continue in
effect until the end of the specified period of time or, if earlier, the date
you are no longer eligible to transfer amounts into the Protected Benefit
account. Any contributions made to the Investment account while the program is
in effect will be subject to transfer or sweep to the Protected Benefit account
until the date you are no longer eligible to transfer amounts into the
Protected Benefit account.
For options (iii) and (iv), the "net contribution amount" is the total
contributions made to the Investment account, adjusted for withdrawals (and any
applicable withdrawal charges) and all transfers to the Protected Benefit
account. All subsequent contributions made to the Investment account will
increase the net contribution amount by the dollar amount of the contribution
as of the transaction date of the contribution. All withdrawals and ad hoc
transfers from the Investment account will be withdrawn or transferred -- gains
first. The net contribution amount will only be reduced by a withdrawal (and
any applicable withdrawal charges) or transfer to the extent that the
withdrawal or transfer is in excess of "gains" in the Investment account on the
date of the transfer. For this purpose, "gains" is equal to the Investment
account value immediately prior to the withdrawal or transfer in excess of net
contribution.
Please note the following under the Systematic transfer program:
.. As noted above, transfers can be made on a quarterly, semi-annual or annual
basis. You can choose a start date for transfers but it cannot be later
than the 28th day of the month or later than one year from the date you
enroll. The frequency for transfers cannot be changed while the program is
in effect. If you decide you want to change the frequency of transfers, you
must cancel your current program and re-enroll in the program.
.. For Series CP(R) contracts, any credits and Earnings bonus applied to the
Investment account will not be part of the net contribution amount. The
total amount of credit and Earnings bonus applied to the Investment account
will be considered transferred to the Protected Benefit account first
before any earnings are transferred under our Systematic transfer program.
.. Each transfer will be pro-rated from all of your investment options in the
Investment account, except for amounts allocated to a Special DCA program.
If either option (iii) or (iv) is selected and there are amounts allocated
to a Special DCA program, the calculation of the sweep will use your
Investment account value (including any amounts in the Special DCA program
that are designated for future transfers to the Investment account).
However, once the amount to be transferred is calculated, the transfer will
be pro-rated from the Investment account variable investment options and
the Guaranteed interest option. No amounts will be transferred from the
Special DCA program.
.. Under the Fixed percentage option, the calculation of the transfer will not
include any amounts in the Special DCA program and the transfer will be
pro-rated from the Investment account variable investment options and the
guaranteed interest option.
.. All transfers to the Protected Benefit account variable investment options
will be in accordance with your allocation instructions on file.
.. An ad hoc transfer from the Investment account to the Protected Benefit
account that is not part of the Systematic transfer program will not
terminate the program. Please note, however, that a transfer under options
(iii) or (iv) could decrease the net contribution amount that is used to
determine the gains on each transfer date.
.. You can only have one Systematic transfer program in effect at any one time.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
.. You can cancel your Systematic transfer program at any time.
.. Transfers under your Systematic transfer program do not count toward the
transfers under the contract that may be subject to a transfer charge.
.. The Systematic transfer program is available with any dollar cost averaging
program available under your contract.
.. You can elect a rebalancing program for your Investment account value while
the Systematic transfer program is in effect. If a rebalancing transaction
date and Systematic transfer program transaction date happen to be on the
same Business day, the transfer under the Systematic transfer program will
be processed first. Then, we will process the rebalancing of your
Investment account value.
.. If all Guaranteed benefits are dropped post-funding of the Protected
Benefit account, your Systematic transfer program will be terminated.
.. If we exercise our right to discontinue contributions and/or transfers to
the Protected Benefit account variable investment options, or if you are
unable to make subsequent contributions and/or transfers to the Protected
Benefit account variable investment options due to any other contribution
or transfer restriction, your Systematic transfer program will be
terminated.
.. If you make a contribution to your Investment account following your first
withdrawal from the Protected Benefit account, your Systematic transfer
program will be terminated.
.. Transfers under a Systematic transfer program are subject to the
limitations specified in "Transferring your account value" earlier in this
section.
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TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS
4. Accessing your money
--------------------------------------------------------------------------------
WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your Total account value before payments
begin. The table below shows the methods available under each type of contract.
Your account value could become insufficient due to withdrawals and/or poor
market performance. For information on how withdrawals affect your Guaranteed
benefits and potentially cause your contract to terminate, please see "Effect
of your account values falling to zero" in "Determining your contract's value"
earlier in this Prospectus and "How withdrawals affect your Guaranteed
benefits" in "Contract features and benefits" earlier in this Prospectus.
If you take a withdrawal from the Protected Benefit account variable investment
options, the withdrawal may impact your existing benefits and you will no
longer be permitted to make subsequent contributions into the Protected Benefit
account variable investment options. The first withdrawal from your Protected
Benefit account may also affect the applicable Roll-up rate used in calculating
certain Guaranteed benefits. See "How you can purchase and contribute to your
contract" and "Annual Roll-up rate" and "Deferral Roll-up rate" under
"Guaranteed minimum income benefit" in "Contract features and benefits" earlier
in this Prospectus and "Rules regarding contributions to your contract" in
Appendix VIII later in this Prospectus for more information.
-----------------------------------------------------------------------------------------------------------------
METHOD OF WITHDRAWAL
----------------------------------------------------
PRE-AGE LIFETIME
AUTO- 59 1/2 REQUIRED
MATIC SUB- MINIMUM
PAYMENT SYSTE- STANTIALLY DISTRIBU-
CONTRACT/(1)/ PLANS/(2)/ PARTIAL MATIC/(3)/ EQUAL TION
-----------------------------------------------------------------------------------------------------------------
NQ Yes Yes Yes No No
-----------------------------------------------------------------------------------------------------------------
Traditional IRA Yes Yes Yes Yes Yes
-----------------------------------------------------------------------------------------------------------------
Roth IRA Yes Yes Yes Yes No
-----------------------------------------------------------------------------------------------------------------
Inherited IRA No Yes No No Yes/(4)/
-----------------------------------------------------------------------------------------------------------------
QP/(5)/ Yes Yes No No No
-----------------------------------------------------------------------------------------------------------------
SEP IRA Yes Yes Yes Yes Yes
-----------------------------------------------------------------------------------------------------------------
(1)Please note that not all contract types are available under all contracts in
the Retirement Cornerstone(R) Series.
(2)Available for contracts with GMIB only.
(3)Available for withdrawals from your Investment account variable investment
options and guaranteed interest option only.
(4)The contract (whether traditional IRA or Roth IRA) pays out post-death
required minimum distributions. See "Inherited IRA beneficiary continuation
contract" in "Contract features and benefits" earlier in this Prospectus.
(5)All payments are made to the plan trust as the owner of the contract. See
"Appendix II: Purchase considerations for QP contracts" later in this
Prospectus.
AUTOMATIC PAYMENT PLANS
(FOR CONTRACTS WITH GMIB)
You may take automatic withdrawals from your Protected Benefit account under
either the Maximum payment plan or the Customized payment plan, as described
below. Under either plan, you may take withdrawals on a monthly, quarterly or
annual basis. The first payment date cannot be more than one full payment
period from the date the enrollment form is received at our processing office.
If a later date is specified, we will not process your enrollment form. You may
change the payment frequency of your withdrawals at any time, and the change
will become effective on the next contract date anniversary. All withdrawals
from an Automatic payment plan count toward your free withdrawal amount.
You may elect either the Maximum payment plan or the Customized payment plan
beginning in the contract year that follows the contract year in which you
first fund your Protected Benefit account. You must wait at least 28 days from
enrollment in a plan before automatic payments begin. We will make the
withdrawals on any day of the month that you select as long as it is not later
than the 28th day of the month. However, you must elect a date that is more
than three calendar days prior to your contract date anniversary.
Each scheduled payment cannot be less than $50. If scheduled payments would be
less than $50, the program will be terminated. This applies even if an RMD
withdrawal causes the reduction of scheduled amounts below $50. Scheduled
payments are taken pro rata from all Protected Benefit account variable
investment options. Scheduled payments are not taken out of the Special DCA
programs.
If you take a partial withdrawal while an automatic payment plan is in effect:
After scheduled payments begin, a partial withdrawal (together with all
withdrawals to date in the contract year) that exceeds the Annual withdrawal
amount will terminate the program. You may set up a new program immediately,
but it will not begin until the next contract year.
After scheduled payments begin, a partial withdrawal (together with all
withdrawals to date in the contract year) that is less than or equal to the
Annual withdrawal amount may cause payments to be suspended until the next
contract year once the full Annual withdrawal amount for that contract year has
been paid out. After a partial withdrawal is taken, you will continue to
receive scheduled payments without a disruption in payments until the Annual
withdrawal amount is paid out. After the full Annual withdrawal amount has been
paid out, the program will be suspended for the remainder of the contract year.
MAXIMUM PAYMENT PLAN
If you have funded the GMIB, the Maximum payment plan is available beginning in
the contract year that follows the contract year in which you first fund your
Protected Benefit account. Under the Maximum payment plan, you can request us
to pay you the Annual withdrawal amount as scheduled payments. The payment
amount may increase or decrease annually as the result of a change in the
Annual Roll-up rate. Also, the payment amount may increase as the result of a
reset of your GMIB benefit base.
For monthly or quarterly payments, the Annual withdrawal amount will be divided
by 12 or 4 (as applicable). The program is designed to pay
67
ACCESSING YOUR MONEY
the entire Annual withdrawal amount in each contract year, regardless of
whether the program is started at the beginning of the contract year or on some
other date during the contract year. Consequently, a program that commences on
a date other than during the first month or quarter, as applicable, following a
contract date anniversary will account for any payments that would have been
made since the beginning of the contract year, as if the program were in effect
on the contract date anniversary. A catch-up payment will be paid for the
number of payment dates that have elapsed from the beginning of the contract
year up to the date the enrollment is processed. The catch-up payment is made
immediately when the Maximum payment plan enrollment is processed. Thereafter,
scheduled payments will begin one payment period later.
A partial withdrawal taken in the same contract year prior to enrollment in the
Maximum payment plan will have the following effect:
.. If the amount of the partial withdrawal is more than the Annual withdrawal
amount, we will not process your enrollment form.
.. If the amount of the partial withdrawal is less than the Annual withdrawal
amount, then the partial withdrawal will be factored into the Maximum
payment plan payments for that contract year.
.. Annual frequency: If the amount of the partial withdrawal is less than the
Annual withdrawal amount, the remaining Annual withdrawal amount is paid on
the date the enrollment form is processed or a later date selected by the
owner. You may not select a date later than the next contract date
anniversary.
.. A partial withdrawal that is taken after you are enrolled in the program
but before the first payment is made terminates the program.
CUSTOMIZED PAYMENT PLAN
--------------------------------------------------------------------------------
PLEASE CHECK WITH YOUR FINANCIAL PROFESSIONAL OR ONE OF OUR CUSTOMER SERVICE
REPRESENTATIVES REGARDING THE AVAILABILITY OF OUR CUSTOMIZED PAYMENT PLAN
OPTIONS.
--------------------------------------------------------------------------------
If you have funded the GMIB, the Customized payment plan is available beginning
in the contract year that follows the contract year in which you first fund
your Protected Benefit account. Currently, any of the following five Customized
payment plan options can be elected. For options that are based on a withdrawal
percentage, the specified percentage is applied to your GMIB benefit base as of
the most recent contract date anniversary. See "Annual withdrawal amount" in
"Guaranteed minimum income benefit" under "Contract features and benefits"
earlier in this Prospectus.
The following payment options can be elected under the Customized payment plan.
For options (i)-(iii) and (v), your payment may increase or decrease annually
as the result of a change in the Annual Roll-up rate. Also, the payment amount
may increase as the result of a reset of your GMIB benefit base.
(i)Guaranteed minimum percentage: You can request us to pay you as scheduled
payments a withdrawal amount based on a withdrawal percentage that is fixed
at the lowest guaranteed Annual Roll-up rate of [4]% under the GMIB
Multi-Year Lock.
(ii)Fixed percentage below the Annual Roll-up rate: You can request us to pay
you as scheduled payments a withdrawal amount based on the applicable
Annual Roll-up rate MINUS a fixed percentage for each contract year. If in
any contract year the calculation would result in a payment that is less
than 4%, your withdrawal percentage for that contract year will be 4%. In
other words, the withdrawal percentage can never be less than 4%. Your
percentage requests must be in increments of 0.50%.
(iii)Fixed percentage: You can request us to pay you as scheduled payments a
withdrawal amount based on a fixed percentage. The percentage may not
exceed the Annual Roll-up rate in any contract year. If in any contract
year the fixed percentage is greater than your Annual Roll-up rate for
that contract year, we will pay you only the Annual withdrawal amount as
scheduled payments for that contract year. Your percentage requests must
be in increments of 0.50%.
(iv)Fixed dollar amount: You can request us to pay you as scheduled payments a
fixed dollar withdrawal amount each contract year. The fixed dollar amount
may not exceed your Annual withdrawal amount in any contract year. If in
any contract year the fixed dollar amount is greater than your Annual
withdrawal amount, we will pay you as scheduled payments only your Annual
withdrawal amount.
(v)Fixed dollar amount or fixed percentage from both your Protected Benefit
account and your Investment account: You can request us to pay you a fixed
dollar amount or fixed percentage as scheduled payments that may be greater
than your Annual withdrawal amount. The Annual withdrawal amount will be
withdrawn from your Protected Benefit account. We will pay you any requested
amount that is in excess of your Annual withdrawal amount from your
Investment account. If in any contract year there is insufficient value in
the Investment account to satisfy your requested fixed dollar or fixed
percentage withdrawal, we will pay you the maximum amount that can be
withdrawn from your Annual withdrawal amount and your Investment account as
scheduled payments for that contract year even though this amount will be
less than you requested.
For examples on how the Automatic payment plans work, please see Appendix VI.
For examples of how withdrawals affect your Guaranteed benefit bases, see
Appendix VII later in this Prospectus.
PARTIAL WITHDRAWALS AND SURRENDERS
(ALL CONTRACTS)
You may take partial withdrawals from your contract at any time. All withdrawal
requests must be made on a specific form provided by us. Please see "How to
reach us" under "Who is AXA Equitable?" earlier in this Prospectus for more
information. Currently, the minimum withdrawal amount is $300. For discussion
on how amounts can be withdrawn, see "How withdrawals are taken from your Total
account value" below. You can also surrender your contract at any time.
Partial withdrawals will be subject to a withdrawal charge if they exceed the
free withdrawal amount. For more information, see "Free withdrawal amount" in
"Charges and expenses" later in this Prospectus.
Any request for a partial withdrawal that results in an Excess withdrawal will
suspend your participation in either the Maximum payment plan or Customized
payment plan.
68
ACCESSING YOUR MONEY
SYSTEMATIC WITHDRAWALS
(ALL CONTRACTS EXCEPT INHERITED IRA AND QP)
You may take systematic withdrawals of a particular dollar amount, a particular
percentage of, or a specific investment option from your Investment account
variable investment options and guaranteed interest option. If there is
insufficient account value in the specific investment option you elected, your
systematic withdrawals will continue from the remaining Investment account
variable investment option or the guaranteed interest option on a pro rata
basis.
If your contract is subject to withdrawal charges, you may take systematic
withdrawals on a monthly, quarterly or annual basis as long as the withdrawals
do not exceed the following percentages of your Investment account value: 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 the withdrawal charges on your contract have expired, you may elect a
systematic withdrawal option in excess of percentages described in the
preceding paragraph, up to 100% of your Investment account value. HOWEVER, IF
YOU ELECT A SYSTEMATIC WITHDRAWAL OPTION IN EXCESS OF THESE LIMITS, AND MAKE A
SUBSEQUENT CONTRIBUTION TO YOUR INVESTMENT ACCOUNT, THE SYSTEMATIC WITHDRAWAL
OPTION WILL BE TERMINATED. You may then elect a new systematic withdrawal
option within the limits described in the preceding paragraph.
If you elect our systematic withdrawal program, you may request to have your
withdrawals made on any day of the month, subject to the following restrictions:
.. You must select a date that is more than three calendar days prior to your
contract date anniversary; and
.. You cannot select the 29th, 30th or 31st.
If you do not select a date, we will make the withdrawals the same day of the
month as the day we receive your request to elect the program, subject to the
same restrictions listed above. If you have also elected a GMIB Automatic
payment plan, unless you instruct us otherwise, your systematic withdrawal
option withdrawals will be on the same date as your automatic payment plan. You
must wait at least 28 days after your contract is issued before your systematic
withdrawals can begin.
You may elect to take systematic withdrawals at any time. If you own an IRA
contract, you may elect this withdrawal method only if you are between ages
59 1/2 and 70 1/2.
If the systematic withdrawal option is elected with an Automatic payment plan,
the payment frequency will be the same as the Automatic payment plan.
You may change the payment frequency, or the amount or the percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
partial withdrawal. You can cancel the systematic withdrawal option at any time.
If you take a partial withdrawal while you are taking systematic withdrawals,
your systematic withdrawal option will be terminated. You may then elect a new
systematic withdrawal option.
Systematic withdrawals are not subject to a withdrawal charge, except to the
extent that, when added to a partial withdrawal amount previously taken in the
same contract year, the systematic withdrawal exceeds the free withdrawal
amount.
SUBSTANTIALLY EQUAL WITHDRAWALS
(TRADITIONAL IRA, ROTH IRA AND SEP IRA CONTRACTS ONLY)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your contract without triggering the 10% additional federal
income tax penalty, which normally applies to distributions made before age
59 1/2. Substantially equal withdrawals are also referred to as "72(t)
exception withdrawals". See "Tax information" later in this Prospectus. The
substantially equal withdrawals option is available only if 100% of your Total
account value is allocated to either the Protected Benefit account or the
Investment account. This option is not available if your Total account value is
split between the Protected Benefit account and the Investment account at the
time you elect this option. If you elect to take substantially equal
withdrawals, you may not elect any other automated withdrawal program. Once you
have elected substantially equal withdrawals, amounts can be allocated to
either or both the Investment account and the Protected Benefit account.
If you elect our substantially equal withdrawals option, we calculate the
permissible distributions for you using one of the IRS-approved methods for
doing this. You should be aware that the portion of any withdrawal from the
Protected Benefit account that is in excess of the Annual withdrawal amount
will reduce the benefit base(s) for your Guaranteed benefits on a pro rata
basis as of the date of the withdrawal. See "How withdrawals affect your
Guaranteed benefits" and "Annual withdrawal amount" under "Guaranteed minimum
income benefit" in "Contract features and benefits" for more information.
Our substantially equal withdrawals option is not the exclusive method of
meeting the penalty exception. After consultation with your tax adviser, you
may decide to use any permissible method. If you do not elect our substantially
equal withdrawals option, you would have to compute withdrawal amounts yourself
and request partial withdrawals.
Once you begin to take substantially equal withdrawals, you should not do any
of the following until after the later of age 59 1/2 or five full years after
the first withdrawal: (i) stop them; (ii) change the pattern of your
withdrawals (for example, by taking an additional partial withdrawal); or
(iii) contribute any more to the contract. If you alter the pattern of
withdrawals, you may be liable for the 10% federal tax penalty that would have
otherwise been due on prior withdrawals made under this option and for any
interest on the delayed payment of the penalty.
Making additional contributions to the contract is treated as changing the
pattern of withdrawals. It does not matter whether the additional contributions
are made by direct transfer or rollover; nor does it matter if they are made to
the Investment account or the Protected Benefit account. Because the penalty
exception method does not permit additional contributions or payment changes to
restore any Guaranteed benefit base under the contract, you and your tax
adviser should consider carefully whether you should elect the Substantially
equal withdrawals option or any other method of penalty exception withdrawals
if you have allocated or intend to allocate amounts to the Protected Benefit
account value after starting Substantially equal withdrawals.
69
ACCESSING YOUR MONEY
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may make a one-time change, without penalty,
from one of the IRS-approved methods of calculating fixed payments to another
IRS-approved method (similar to the required minimum distribution rules) of
calculating payments, which vary each year.
If the contract is eligible, you may elect to take substantially equal
withdrawals at any time before age 59 1/2. We will make the withdrawal on any
day of the month that you select as long as it is not later than the 28th day
of the month. However, you must elect a date that is more than three calendar
days prior to your contract date anniversary. We will calculate the amount of
your substantially equal withdrawals using the IRS-approved method we offer.
The payments will be made monthly, quarterly or annually as you select. These
payments will continue until (i) we receive written notice from you to cancel
this option; (ii) you take an additional partial withdrawal; or (iii) you
contribute any more to the contract. You may elect to start receiving
substantially equal withdrawals again, but the payments may not restart in the
same calendar year in which you took a partial withdrawal or added amounts to
the contract. We will calculate the new withdrawal amount.
BECAUSE THE IRS-APPROVED PENALTY EXCEPTION METHODS DO NOT PERMIT YOU TO ADD
CONTRIBUTIONS OR CHANGE PAYMENTS TO RESTORE THE GUARANTEED BENEFIT BASE(S), AS
NOTED ABOVE, YOU AND YOUR TAX ADVISER SHOULD CONSIDER CAREFULLY WHETHER YOU
SHOULD ELECT THE SUBSTANTIALLY EQUAL WITHDRAWALS OPTION OR ANY OTHER METHOD OF
PENALTY EXCEPTION WITHDRAWALS IF YOU HAVE ALLOCATED ANY AMOUNTS TO THE
PROTECTED BENEFIT ACCOUNT. PLEASE NOTE THAT ELECTING TO TAKE SUBSTANTIALLY
EQUAL WITHDRAWALS FROM A CONTRACT WITH THE RMD WEALTH GUARD DEATH BENEFIT MAY
LIMIT THE UTILITY OF THAT BENEFIT. SEE THE DISCUSSION OF THE "RMD WEALTH GUARD
DEATH BENEFIT" UNDER "CONTRACT FEATURES AND BENEFITS" EARLIER IN THIS
PROSPECTUS.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(TRADITIONAL IRA 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. The Automatic RMD service generally offers RMD payments from your
Investment account value. This is not the exclusive way for you to meet these
rules. After consultation with your tax adviser, you may decide to compute RMDs
yourself and request partial withdrawals. 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. If you have
funded your Guaranteed benefit(s), amounts withdrawn from the contract to meet
RMDs may reduce your benefit base(s) and may limit the utility for most
benefit(s), other than the RMD Wealth Guard death benefit. Also, the actuarial
present value of additional contract benefits must be added to the Total
account value in calculating RMD payments from annuity contracts funding IRAs,
which could increase the amount required to be withdrawn. Please refer to
"Required minimum distributions" in "Tax information" later in this Prospectus.
This service is not available under QP contracts. All withdrawals from your
Protected Benefit account under a QP contract owned by a defined contribution
plan reduce your RMD Wealth Guard death benefit base on a pro rata basis
(including any applicable withdrawal charges) until the contract is converted
into a IRA. (See "Appendix II: Purchase considerations for QP contracts" later
in this Prospectus).
You may elect this service in the calendar year in which you reach age 70 1/2
or in any later year. The minimum amount we will pay out is $250. Currently,
RMD payments will be made annually.
This service does not generate automatic RMD payments during the first calendar
year during which your contract is issued. Therefore, if you are making a
rollover or transfer contribution to the contract after
age 70 1/2, you must take any RMDs before the rollover or transfer. 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.
--------------------------------------------------------------------------------
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).
--------------------------------------------------------------------------------
We do not impose a withdrawal charge on RMD payments taken through our
Automatic RMD service even if, when added to a partial withdrawal previously
taken in the same contract year, the RMD payments exceed the free withdrawal
amount.
If you elect the Automatic RMD service and have an existing systematic
withdrawal program in place, your systematic withdrawal program will terminate
unless, at the time a withdrawal under the Automatic RMD service is scheduled,
the total amount of all withdrawals you have already taken during the year
equals or exceeds the amount of your RMD obligation for that year. In that
case, there will be no withdrawal under your Automatic RMD service and your
systematic withdrawal program will remain in effect. If your systematic
withdrawal program does terminate, you may establish a new program the
following year.
RMDS FOR CONTRACTS WITH GMIB. (TRADITIONAL IRA AND SEP IRA CONTRACTS ONLY --
SEE "TAX INFORMATION" LATER IN THIS PROSPECTUS)
For contracts with GMIB or with GMIB and either the "Greater of" death benefit
or the Highest Anniversary Value death benefit, if you elect our Automatic RMD
service, any lifetime RMD payment we make to you in the first contract year you
fund your Protected Benefit account will reduce your benefit bases on a
dollar-for-dollar basis. In subsequent contract years, if an Automatic RMD
service payment exceeds your Annual withdrawal amount, your benefit bases will
be reduced dollar-for-dollar by the amount of the RMD payment in excess of your
Annual withdrawal amount. For contracts with the Return of Principal death
benefit elected with or without the GMIB or the Highest Anniversary Value death
benefit elected without the GMIB, all withdrawals, including RMD payments
through our Automatic RMD service, reduce those benefit bases on a pro rata
basis. Amounts from both your Protected Benefit account and Investment account
values are used to determine your lifetime RMD payment each year.
The no lapse guarantee will not be terminated if a RMD payment using our
Automatic RMD service causes your cumulative withdrawals from the Protected
Benefit account in the contract year to exceed your Annual withdrawal amount.
If you elect either the Maximum payment plan or the Customized payment plan
(together, "automatic payment plans") and our Automatic RMD service, we will
make an extra payment, if necessary, in December that will equal your lifetime
RMD amount less all payments made through your payment date and any scheduled
December payment. The combined Automatic payment plan and RMD payment
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ACCESSING YOUR MONEY
will not be treated as an Excess withdrawal if the RMD, together with any
withdrawal taken under one of our automatic plans exceeds your Annual
withdrawal amount. The additional payment will reduce your GMIB benefit base
and Roll-up to age 80 benefit base and Highest Anniversary Value benefit base
(for contracts with the "Greater of" death benefit) and Highest Anniversary
Value benefit base for contracts with GMIB and Highest Anniversary GMDB on a
dollar-for-dollar basis. Your Highest Anniversary Value benefit base is always
reduced on a pro rata basis for the Highest Anniversary Value GMDB if the GMIB
is not also elected.
If you take any partial withdrawals in addition to your RMD and Automatic
payment plan payments, your applicable Automatic payment plan may be suspended
as discussed above. Any partial withdrawal taken from your Protected Benefit
account may cause an Excess withdrawal and may be subject to a withdrawal
charge. Further, your GMIB benefit base and Annual withdrawal amount will be
reduced.
If you elect our Automatic RMD service and elect to take your Annual withdrawal
amount in partial withdrawals without electing one of our available Automatic
payment plans, we will make a payment, if necessary, in December that will
equal your RMD payment less all withdrawals made through your payment date. If
prior to your payment date you make a partial withdrawal that exceeds your
Annual withdrawal amount, but not your RMD amount, any portion of that partial
withdrawal taken from your Protected Benefit account will be treated as an
Excess withdrawal, as well as any subsequent partial withdrawals taken from
your Protected Benefit account made during the same contract year. However, if
by your payment date your withdrawals have not exceeded your RMD amount, the
RMD payment we make to you will not be treated as an Excess withdrawal.
Your RMD payment will be withdrawn on a pro rata basis from your Investment
account variable investment options and guaranteed interest option, excluding
amounts in a Special DCA program. If there is insufficient value or no value in
those options, we will withdraw amounts from your Special DCA program. If there
is insufficient value in those options, any additional amount of the RMD
payment or the total amount of the RMD payment will be withdrawn from your
Protected Benefit account variable investment options. For information on how
RMD payments are taken from your contract see "How withdrawals are taken from
your Total account value" below.
If you do not elect our Automatic RMD service and if your Annual withdrawal
amount is insufficient to satisfy the RMD payment, any additional withdrawal
taken in the same contract year (even one to satisfy your RMD payment) from
your Protected Benefit account will be treated as an Excess withdrawal.
RMDS FOR TRADITIONAL IRA AND SEP IRA CONTRACTS WITH THE RMD WEALTH GUARD DEATH
BENEFIT. (SEE "TAX INFORMATION" LATER IN THIS PROSPECTUS)
For contracts with the RMD Wealth Guard death benefit, we offer the RMD Wealth
Guard withdrawal service for RMD withdrawals from your Protected Benefit
account and/or Investment account to help you meet lifetime required minimum
distributions under federal income tax rules. This is not the exclusive way for
you to meet these rules. After consultation with your tax adviser, you may
decide to compute RMDs yourself. In such a case, a withdrawal charge may apply.
If you enroll in our RMD Wealth Guard withdrawal service, you will be able to
elect to take RMD withdrawals from your Protected Benefit account value and
Investment account value. You may elect the RMD withdrawal service in the
calendar year in which you reach age 701/2 or in any later year. The minimum
amount we will pay out is $50. Withdrawals from the Protected Benefit account,
other than Excess RMD withdrawals, will not reduce your RMD Wealth Guard death
benefit base. Your RMD Wealth Guard death benefit base will be reduced on a pro
rata basis by Excess RMD withdrawals. An Excess RMD withdrawal is any of the
following:
.. the full amount of any withdrawal from your Protected Benefit Account taken
before the calendar year in which you turn age 701/2;
.. the full amount of any withdrawal from your Protected Benefit Account taken
during your first contract year, even if you turn age 701/2 during that
year; or
.. the portion of a withdrawal from your Protected Benefit account that
exceeds your RMD Wealth Guard withdrawal amount for the calendar year.
RMD payments under our RMD Wealth Guard withdrawal service can be paid monthly,
quarterly or annually. We do not impose a withdrawal charge on RMD payments
taken through our RMD Wealth Guard withdrawal service even if, when added to a
partial withdrawal previously taken in the same contract year, the RMD payments
exceed the free withdrawal amount.
If you elect the RMD Wealth Guard withdrawal service and had previously elected
the systematic withdrawal option, your systematic withdrawal program will be
terminated.
Since RMDs are generally not required to be withdrawn from a Roth IRA during
your lifetime, prior to converting your IRA to a Roth IRA, you must drop the
RMD Wealth Guard death benefit. For information on dropping this benefit, see
"Dropping or changing your Guaranteed benefits" in "Contract features and
benefits", earlier in this prospectus and under Appendix I.
This service is not available under QP contracts. All withdrawals from your
Protected Benefit account under a QP contract owned by a defined contribution
plan reduce your RMD Wealth Guard death benefit base on a pro rata basis
(including any applicable withdrawal charges) until the contract is converted
into a IRA. (See "Appendix II: Purchase considerations for QP contracts" later
in this Prospectus).
For more information about the RMD Wealth Guard death benefit, see "RMD Wealth
Guard death benefit" under "Contract features and benefits" earlier in this
Prospectus.
HOW WITHDRAWALS ARE TAKEN FROM YOUR TOTAL ACCOUNT VALUE
Unless you specify otherwise, all withdrawals (other than Automatic payment
plan withdrawals and lump sum withdrawals of your Annual withdrawal amount and
substantially equal withdrawals, as discussed below) will be taken on a pro
rata basis from your Investment account variable investment options and
guaranteed interest option, excluding amounts in a Special DCA program. If
there is insufficient value or no value in those options, we will subtract
amounts from a Special DCA program. If there is insufficient value in those
options, any additional amount of the withdrawal required or the total amount
of the withdrawal will be withdrawn from your Protected Benefit account
variable investment options. Any amounts withdrawn from a Special DCA program
that were designated for the Protected Benefit account variable investment
options will reduce your Guaranteed benefit base(s).
Automatic payment plan withdrawals (other than fixed dollar amount or fixed
percentage withdrawals) and lump sum withdrawals of your Annual withdrawal
amount will always be taken on a pro rata basis only from your Protected
Benefit account variable investment options.
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ACCESSING YOUR MONEY
Lump sum, fixed dollar amount or fixed percentage withdrawals are first taken
on a pro rata basis from your Protected Benefit account variable investment
options. If there is insufficient value or no value in those options, we will
subtract amounts from your Investment account variable investment options and
guaranteed interest option, excluding amounts in a Special DCA program. If
there is insufficient value or no value in those options, we will subtract
amounts from a Special DCA program.
Substantially equal withdrawals are taken on a pro rata basis from your Total
account value. However, if after you have elected the substantially equal
withdrawals option your Total account value is split between the Protected
Benefit account value and the Investment account value, your substantially
equal withdrawals will be taken on a pro rata basis from your Investment
account variable investment options and guaranteed interest option, excluding
amounts in a Special DCA program. If there is insufficient value or no value in
those options, we will subtract amounts from a Special DCA program. If there is
insufficient value in those options, any additional amount of the withdrawal
required or the total amount of the withdrawal will be withdrawn from your
Protected Benefit account variable investment options. Any amounts withdrawn
from a Special DCA program that were designated for the Protected Benefit
account variable investment options will reduce your Guaranteed benefit base(s).
You may choose to have withdrawals subtracted from your contract based on the
following options:
(1)Take the entire withdrawal on a pro rata basis from the Protected Benefit
account variable investment options; or
(2)Take the entire withdrawal from the Investment account value, either on a
pro rata basis, or specifying which Investment account variable investment
options and/or guaranteed interest option the withdrawal should be taken
from;
(3)Request a withdrawal to be taken from the Protected Benefit account variable
investment options and take the remaining part of the withdrawal from the
Investment account variable investment options. You must specify the
investment options for the Investment account value. The withdrawal from the
Protected Benefit account variable investment options will be taken on a pro
rata basis; or
(4)Request a withdrawal to be taken from the Investment account variable
investment options and take the remaining part of the withdrawal from the
Protected Benefit account variable investment options. You must specify the
investment options for the Investment account value. The withdrawal from the
Protected Benefit account variable investment options will be taken on a pro
rata basis.
For more information on how withdrawals affect your Guaranteed benefits, see
"How withdrawals affect your Guaranteed benefits" in "Contract features and
benefits" earlier in this Prospectus and Appendix VII later in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
Certain withdrawals may cause your contract and certain Guaranteed benefits to
terminate, as follows:
.. Any fee deduction and/or withdrawal that causes your Total account value to
fall to zero will terminate the contract and any applicable Guaranteed
benefit, subject to the following:
-- the GMIB (while the no lapse guarantee is in effect unless your Protected
Benefit account value falls to zero due to an "Excess withdrawal") will
continue as described under "Guaranteed minimum income benefit" in
"Contract features and benefits" earlier in this Prospectus; and
-- if you elected the RMD Wealth Guard death benefit and your Protected
Benefit account falls to zero, you will be eligible for a refund of 10%
of your total contributions and transfers to the Protected Benefit
account LESS the dollar amount of any Excess RMD withdrawals you have
taken. For more information, see "RMD Wealth Guard Refund feature" in
"Contract Features and Benefits" earlier in this Prospectus.
.. If you do not have, or if you have not yet funded, the RMD Wealth Guard
death benefit or the GMIB or if the no lapse guarantee is no longer in
effect, the following applies:
-- a request to withdraw 90% or more of your cash value will terminate your
contract and any applicable Guaranteed minimum death benefit;
-- we reserve the right to terminate the contract and any applicable
Guaranteed minimum death benefit if no contributions are made during the
last three contract years and the cash value is less than $500; and
-- we reserve the right to terminate your contract and any applicable
Guaranteed minimum death benefit if any withdrawal would result in a
remaining cash values of less than $500.
If your contract is terminated, we will pay you the contract's cash value. See
"Surrendering your contract to receive its cash value" below. For the tax
consequences of withdrawals, see "Tax information" later in this Prospectus.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while an
owner is living (or for contracts with non-natural owners, while an annuitant
is living) and before you begin to receive annuity payments (Lifetime GMIB
payments or otherwise). For a surrender to be effective, we must receive your
written request and your contract at our processing office. We will determine
your cash value on the date we receive the required information.
Upon your request to surrender your contract for its cash value, all benefits
under the contract, including the GMIB, will terminate as of the date we
receive the required information if your cash value in your Protected Benefit
account is greater than your Annual withdrawal amount remaining for that year.
If your cash value is not greater than your Annual withdrawal amount remaining
for that year and your no lapse guarantee is still in effect, then you will
receive your cash value and a supplementary life annuity contract under which
we will pay you Lifetime GMIB payments. For more information, please see
"Effect of your account values falling to zero" in "Determining your contract's
value" and "Guaranteed minimum income benefit" in "Contract features and
benefits" earlier in this Prospectus.
You may receive your cash value in a single sum payment or apply it to one or
more of the annuity payout options. See "Your annuity payout options" below.
For the tax consequences of surrenders, see "Tax information" later in this
Prospectus.
WHEN TO EXPECT PAYMENTS
Generally, we will fulfill requests for payments out of the variable investment
options within seven calendar days after the business day the transaction
request is received by us in good order. These transactions may include
applying proceeds to a payout annuity, payment of a death benefit, payment of
any amount you withdraw (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:
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ACCESSING YOUR MONEY
(1)the New York Stock Exchange is closed or restricts trading,
(2)the SEC determines that an emergency exists as a result of sales of
securities or determination of the fair value of a variable investment
option's assets is not reasonably practicable, or
(3)the SEC, by order, permits us to defer payment to protect people remaining
in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option or a Special DCA program, (other than for death benefits) for up to six
months while you are living. We also 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 by check and are mailed to you (or the payee named in a
tax-free exchange) by U.S. mail, unless you request that we use an express
delivery or wire transfer service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
The following description assumes annuitization of your entire contract. For
partial annuitization, see "Partial Annuitization" below.
Deferred annuity contracts such as those in the Retirement Cornerstone(R)
Series 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 payout option, you will receive a separate prospectus related
to the contract you select.
You may choose to annuitize your contract at any time, which generally is at
least 13 months (five years for Series CP(R) contracts) after the contract
date. The contract's maturity date is the latest date on which annuitization
can occur. If you do not annuitize before the maturity date and at the maturity
date have not made an affirmative choice as to the type of annuity payments to
be received, we will convert your contract to the default annuity payout option
described in "Annuity maturity date" later in this section. If you elected the
GMIB or a Guaranteed minimum death benefit, your contract may have both a
Protected Benefit account value and an Investment account value. If there is a
Protected Benefit account value and you choose to annuitize your contract
before the maturity date, the GMIB will terminate without value even if your
GMIB benefit base is greater than zero. The payments that you receive under the
payout annuity option you select may be less than you would have received under
GMIB. See "Guaranteed minimum income benefit" in "Contract features and
benefits" earlier in this Prospectus for further information. Any Guaranteed
minimum death benefit terminates upon annuitization.
In general, your periodic payment amount upon annuitization is determined by
your Total account value, the form of the annuity payout option you elect as
described below, the timing of your purchase and the applicable annuity
purchase rate to which that value is applied. Once begun, annuity payments
cannot be stopped unless otherwise provided in the supplementary contract. Your
contract guarantees that upon annuitization, your account value will be applied
to a guaranteed annuity purchase rate for a life annuity. We reserve the right,
with advance notice to you, to change guaranteed annuity purchase rates any
time after your fifth contract date anniversary and at not less than five-year
intervals after the first change. (Please see your contract and SAI for more
information.) In the event that we exercise our contractual right to change the
guaranteed annuity purchase factors, we would segregate the account value based
on contributions and earnings received prior to and after the change. When your
contract is annuitized, we would calculate the payments by applying the
applicable purchase factors separately to the value of the contributions
received before and after the rate change. We will provide you with 60 days
advance written notice of such a change.
In addition, you may apply your Total account value or cash value, whichever is
applicable, to any other annuity payout option that we may offer at the time of
annuitization. We have the right to require you to provide any information we
deem necessary to provide an annuity upon annuitization. If the annuity payment
amount is later found to be based on incorrect information, it will be adjusted
on the basis of the correct information.
We currently offer you several choices of annuity payout options. The options
available directly under the contract entitle you to receive fixed annuity
payments. Options available under separate contracts and described in separate
prospectuses enable you to receive variable annuity payments.
The payments that you receive upon annuitization of your Protected Benefit
account value may be less than your Annual withdrawal amount or your Lifetime
GMIB payments. If you are considering annuitization, you should ask your
financial professional for information about the payment amounts that would be
made under the various choices that are available to you. You may also obtain
that information by contacting us. Annuitization of your Investment account
value after the date your Lifetime GMIB payments begin will not affect those
payments.
You can currently choose from among the annuity payout options listed below.
Restrictions may apply, depending on the type of contract you own or the
owner's and annuitant's ages at contract issue. Other than life annuity with
period certain, we reserve the right to add, remove or change any of these
annuity payout options at any time. In addition, if you are exercising your
GMIB, your choice of payout options are those that are available under the GMIB
(see "Guaranteed minimum income benefit" in "Contract features and benefits"
earlier in this Prospectus).
--------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
--------------------------------------------------------
.. LIFE ANNUITY: An annuity that guarantees payments for the rest of the
annuitant's life. Payments end with the last monthly payment before the
annuitant's death. Because there is no continuation of benefits following
the annuitant's death with this payout option, it provides the highest
monthly payment of any of the life annuity options, so long as the
annuitant is living. It is possible that the Life annuity option could
result in only one payment if the annuitant dies immediately after
annuitization.
.. LIFE ANNUITY WITH PERIOD CERTAIN: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the end of a
selected period of time ("period certain"), payments continue to the
beneficiary for the balance of the period certain. The period certain
cannot extend beyond the annuitant's life expectancy. A life annuity with a
period certain is the form of annuity under the contract that you will
receive if you do not elect a different payout option. In this case, the
period certain will be based on the annuitant's age and will not exceed 10
years.
.. LIFE ANNUITY WITH REFUND CERTAIN: An annuity that guarantees payments for
the rest of the annuitant's life. If the annuitant dies before the amount
applied to purchase the annuity option has
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ACCESSING YOUR MONEY
been recovered, payments to the beneficiary will continue until that amount
has been recovered. This payout option is available only as a fixed annuity.
The life annuity, life annuity with period certain, and life annuity with
refund certain payout options are available on a single life or joint and
survivor life basis. The joint and survivor life annuity guarantees payments
for the rest of the annuitant's life, and after the annuitant's death, payments
continue to the survivor. We may offer other payout options not outlined here.
Your financial professional can provide you with details.
We guarantee fixed annuity payments will be based either on the tables of
guaranteed annuity purchase factors in your contract or on our then current
annuity purchase factors, whichever is more favorable for you.
THE AMOUNT APPLIED TO PURCHASE AN ANNUITY PAYOUT OPTION
The amount applied to purchase an annuity payout option varies, depending on
the payout option that you choose, and the timing of your purchase as it
relates to any withdrawal charges that apply under your Retirement
Cornerstone(R) Series contract.
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 is permitted under certain circumstances. You may choose from the
life-contingent annuity payout options described here. We no longer offer a
period certain option for partial annuitization. We require you to elect
partial annuitization on the form we specify. Partial annuitization is not
available for the GMIB under a contract. For purposes of this contract, we will
effect any partial annuitization as a withdrawal applied to a payout annuity.
Please note that a withdrawal from your Protected Benefit account to purchase
an annuity payout contract will affect your Guaranteed benefit bases just like
any other withdrawal. See "How withdrawals are taken from your Total Account
Value" earlier in this Section. Also, see the discussion of "Partial
Annuitization" in "Tax Information" later in this Prospectus.
SELECTING AN ANNUITY PAYOUT OPTION
When you select a payout option, we will issue you a separate written agreement
confirming your right to receive annuity payments. We require you to return
your contract before annuity payments begin. The contract owner and annuitant
must meet the issue age and payment requirements.
You can choose the date annuity payments begin but it may not be earlier than
thirteen months from your contract date or not earlier than five years from
your Series CP(R) contract date (in a limited number of jurisdictions this
requirement may be more or less than five years). Please see Appendix V later
in this Prospectus for information on state variations. You can change the date
your annuity payments are to begin at any time. The date may not be later than
the annuity maturity date described below.
For Series CP(R) contracts, if you start receiving annuity payments within
three years of making any contribution, we will recover the Credit that applies
to any contribution made within the prior three years. Please see Appendix V
later in this Prospectus for information on state variations.
The amount of the annuity payments will depend on the amount applied to
purchase the annuity and the applicable annuity purchase factors, discussed
earlier. The amount of each annuity payment will be less with a greater
frequency of payments, or with a longer certain period of a life contingent
annuity. Once elected, the frequency with which you receive payments cannot be
changed.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay your Total account value in a single sum
rather than as payments under the payout option chosen. If you select an
annuity payout option and payments have begun, no change can be made.
ANNUITY MATURITY DATE
Your contract has a maturity date. In general, the maturity date is based on
the age of the original annuitant at contract issue and cannot be changed other
than in conformance with applicable law, even if you name a new annuitant. The
maturity date is generally the contract date anniversary that follows the
annuitant's 95th birthday (or older joint annuitant if your contract has joint
annuitants), unless you have elected otherwise. If you have a NQ contract with
the GMIB and the owner is older than the annuitant, the maturity date is based
on the age of the owner. The maturity date may not be less than thirteen months
from your contract date, unless otherwise stated in your contract. We will send
a notice with the contract statement one year prior to the maturity date and
with each quarterly statement until the maturity date. The notice will include
the date of maturity, describe the available annuity payout options, state the
availability of a lump sum payment option, and identify the default payout
option, if you do not provide an election by the time of your contract maturity
date.
If you have not funded the GMIB, you may either take a lump sum payment or
select an annuity payout option on the maturity date. If you do not make an
election at maturity, we will apply your Total account value to a life annuity
with payments based on the greater of guaranteed or then current annuity
purchase rates.
If you have funded the GMIB, the following applies on the maturity date:
.. For amounts allocated to your Investment account, you may select an annuity
payout option or take a lump sum payment.
.. If you do not make an election for your Protected Benefit account value on
your maturity date, we will apply the greater of the Protected Benefit
account value to (a) and the GMIB benefit base to (b) below:
(a)a fixed life annuity with payments based on the greater of the guaranteed
or then current annuity purchase rates, or
(b)a supplementary contract with annual payments equal to your GMIB benefit
base applied to the applicable GMIB payout factor.
If you elect payments on a joint life basis, the joint life must be your spouse
and the joint life GMIB payout factors will be reduced. See "Guaranteed minimum
income benefit" in "Contract features and benefits." You may also elect to have
your Protected Benefit account value paid to you in a lump sum or applied to an
annuity payout option we are offering at the time.
For amounts allocated to your Investment account, you must select an annuity
payout option or take a lump sum payment.
If you are the contract owner and your spouse is the sole primary beneficiary
or you jointly own the contract with your younger spouse, your spouse may elect
to continue the contract as successor owner upon your death. Under certain
circumstances, your surviving spouse may be substituted as annuitant as of the
date of your death. If your surviving spouse becomes the annuitant, the
maturity date of the contract may be changed based on the age of the new
annuitant. For information about spousal continuation please see "Spousal
continuation" later in this Prospectus.
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ACCESSING YOUR MONEY
5. Charges and expenses
--------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. Together, they make up the daily "contract fee." These
charges are reflected in the unit values of each variable investment option:
.. An operations charge
.. An administration charge
.. A distribution charge
We deduct the following charges as described later in this section. When we
deduct these charges from your variable investment options, we reduce the
number of units credited to your contract:
.. On each contract date anniversary -- an annual administrative charge, if
applicable.
.. At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge (if applicable).
.. On each contract date anniversary -- a charge for each optional benefit you
elect: a Guaranteed minimum death benefit (other than the Return of
Principal death benefit) and the Guaranteed minimum income benefit.
.. At the time annuity payments are to begin -- charges designed to
approximate certain taxes that may be imposed on us, such as premium taxes
in your state.
.. At the time you request a transfer in excess of 12 transfers in a contract
year -- a transfer charge (currently, there is no charge).
More information about these charges appears below. We will not increase these
charges for the life of your contract, except as noted. We may reduce certain
charges under group or sponsored arrangements. See "Group or sponsored
arrangements" later in this section.
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits
under the contracts. They are also designed, in the aggregate, to compensate us
for the risks of loss we assume pursuant to the contracts. If, as we expect,
the charges that we collect from the contracts exceed our total costs in
connection with the contracts, we will earn a profit. Otherwise, we will incur
a loss.
The rates of certain of our charges have been set with reference to estimates
of the amount of specific types of expenses or risks that we will incur. In
most cases, this Prospectus identifies such expenses or risks in the name of
the charge; however, the fact that any charge bears the name of, or is designed
primarily to defray, a particular expense or risk does not mean that the amount
we collect from that charge will never be more than the amount of such expense
or risk. This does not mean that we may not also be compensated for such
expense or risk out of any other charges we are permitted to deduct by the
terms of the contracts.
To help with your retirement planning, we may offer other annuities with
different charges, benefits and features. Please contact your financial
professional for more information.
SEPARATE ACCOUNT ANNUAL EXPENSES
OPERATIONS CHARGE. We deduct a daily charge from the net assets in each
variable investment option to compensate us for operations expenses, a portion
of which compensates us for mortality and expense risks, described below. In
connection with the Protected Benefit account variable investment options, a
portion of this charge compensates us for our costs in providing the Return of
Principal death benefit. Below is the daily charge shown as an annual rate of
the net assets in each variable investment option:
Series B: 0.80%
Series CP(R): 1.05%
The mortality risk we assume is the risk that annuitants as a group will live
for a longer time than our actuarial tables predict. If that happens, we would
be paying more in annuity income than we planned. We also assume a risk that
the mortality assumptions reflected in our guaranteed annuity payment tables,
shown in each contract, will differ from actual mortality experience. Lastly,
we assume a mortality risk to the extent that at the time of death, the
Guaranteed minimum death benefit exceeds the cash value of the contract. The
expense risk we assume is the risk that it will cost us more to issue and
administer the contracts than we expect.
For Series CP(R) contracts, a portion of this charge also compensates us for
any credits we apply to the contract. We expect to make a profit from this
charge. For a discussion of the credit, see "Credits" in "Contract features and
benefits" earlier in this Prospectus.
ADMINISTRATION 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:
Series B: 0.30%
Series CP(R): 0.35%
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:
Series B: 0.20%
Series CP(R): 0.25%
ACCOUNT VALUE CHARGES
ANNUAL ADMINISTRATIVE CHARGE. We deduct an administrative charge from your
Total account value on each contract date anniversary. We deduct the charge if
your Total account value on the last business day of the contract year is less
than $50,000. If your Total account value on such date is $50,000 or more, we
do not deduct the charge. During the first two contract years, the charge is
equal to $30 or, if less, 2% of your Total account value. The charge is $30 for
contract years three and later.
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CHARGES AND EXPENSES
We will deduct this charge from your value in the Investment account variable
investment options and the guaranteed interest option (see Appendix V later in
this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state) on a pro rata basis. If those amounts are
insufficient, we will deduct all or a portion of the charge from a Special DCA
account. If those amounts are insufficient, we will deduct all or a portion of
the charge from the Protected Benefit account variable investment options.
If the contract is surrendered or annuitized or a death benefit is paid on a
date other than a contract date anniversary, we will deduct a pro rata portion
of the charge for that year.
If your Total account value is insufficient to pay this charge, your contract
will terminate without value and you will lose any applicable Guaranteed
benefits except as noted under "Effect of your account values falling to zero"
in "Determining your contract's value" earlier in this Prospectus.
TRANSFER CHARGE
Currently, we do not charge for transfers among investment options under the
contract. However, we reserve the right to charge for any transfers in excess
of 12 per contract year. We will provide you with advance notice if we decide
to assess the transfer charge, which will never exceed $35 per transfer. The
transfer charge (if applicable), will be assessed at the time that the transfer
is processed. Any transfer charge will be deducted from the investment options
from which the transfer is made. We will not charge for transfers made in
connection with one of our dollar cost averaging programs. Also, transfers from
a dollar cost averaging program, our Systematic transfer program or our
rebalancing program do not count toward your number of transfers in a contract
year for the purposes of this charge.
SPECIAL SERVICE CHARGES
We deduct a charge for providing the special services described below. These
charges compensate us for the expense of processing the special service. Except
for the duplicate contract charge, we will deduct from your account value any
withdrawal charge that applies and the charge for the special service provided.
WIRE TRANSFER CHARGE. We charge $90 for outgoing wire transfers. Unless you
specify otherwise, this charge will be deducted from the amount you request.
EXPRESS MAIL CHARGE. We charge $35 for sending you a check by express mail
delivery. This charge will be deducted from the amount you request.
DUPLICATE CONTRACT CHARGE. We charge $35 for providing a copy of your contract.
The charge for this service can be paid (i) using a credit card acceptable to
AXA Equitable, (ii) by sending a check to our processing office, or (iii) by
any other means we make available to you.
CHECK PREPARATION CHARGE. The standard form of payment for all withdrawals is
direct deposit. If direct deposit instructions are not provided, payment will
be made by check. Currently, we do not charge for check preparation, however,
we reserve the right to impose a charge. We reserve the right to charge a
maximum of $85.
CHARGE FOR THIRD-PARTY TRANSFER OR EXCHANGE. Currently, we are waiving the $65
charge for each third-party transfer or exchange; this waiver may be
discontinued at any time, with or without notice. Absent this waiver, we deduct
a charge for direct rollovers or direct transfers of amounts from your contract
to a third party, such as in the case of a trustee-to-trustee transfer for an
IRA contract, or if you request that your contract be exchanged for a contract
issued by another insurance company. We reserve the right to increase this
charge to a maximum of $125. Please see Appendix V later in this Prospectus for
variations in your state.
WITHDRAWAL CHARGE
(FOR SERIES B AND SERIES CP(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 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 the
Prospectus. For Series CP(R) contracts, a portion of this charge also
compensates us for any credits we apply to the contract. For a discussion of
the Credit, see "Credits" in "Contract features and benefits" earlier in this
Prospectus. We expect to make a profit from this charge.
The withdrawal charge equals a percentage of the contributions withdrawn. For
Series CP(R) contracts, we do not consider credits to be contributions.
Therefore, there is no withdrawal charge associated with a Credit.
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 FOR EACH CONTRACT YEAR
------------------------------------------------------------------------------------------------------------
1 2 3 4 5 6 7 8 9 10
------------------------------------------------------------------------------------------------------------
Series B 7% 7% 6% 6% 5% 3% 1% 0%/(1)/ -- --
------------------------------------------------------------------------------------------------------------
Series CP(R) 8% 8% 7% 6% 5% 4% 3% 2% 1% 0%/(3)/
------------------------------------------------------------------------------------------------------------
(1)Charge does not apply in the 8th and subsequent contract years following
contribution.
(2)Charge does not apply in the 5th and subsequent contract years following
contribution.
(3)Charge does not apply in the 10th 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 V 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 Total
account value. Any amount deducted to pay withdrawal charges is also subject to
that same withdrawal charge percentage. Any applicable withdrawal charge will
be calculated on the portion of the withdrawal amount that is subject to
withdrawal charges. The charge will be taken out of your Protected
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CHARGES AND EXPENSES
Benefit account and your Investment account values based on the proportion of
the withdrawal amount that is subject to the charge from the respective account
values. 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.
For purposes of calculating reductions in your Guaranteed benefits and
associated benefit bases, the withdrawal amount includes both the withdrawal
amount paid to you and the amount of the withdrawal charge deducted from your
Total account value. For more information, see "How withdrawals affect your
Guaranteed benefits" in "Contract features and benefits" earlier in this
Prospectus.
The withdrawal charge does not apply in the circumstances described below.
FREE WITHDRAWAL AMOUNT
Each contract year you can withdraw a certain amount from your contract without
paying a withdrawal charge. In the first contract year, the free withdrawal
amount is determined using all contributions received in the first 90 days of
the contract year. The free withdrawal amount does not apply if you surrender
your contract except where required by law.
FOR CONTRACTS WITHOUT A GUARANTEED BENEFIT. If you do not have a Guaranteed
benefit with your contract, your free withdrawal amount is equal to 10% of your
Investment account value at the beginning of the contract year.
FOR CONTRACTS WITH A GUARANTEED MINIMUM DEATH BENEFIT (OTHER THAN THE RMD
WEALTH GUARD DEATH BENEFIT) AND WITHOUT GMIB. If you have a Guaranteed minimum
death benefit with your contract, but did not elect the GMIB, your free
withdrawal amount is equal to 10% of your Investment account value and 10% of
your Protected Benefit account value at the beginning of the contract year. If
you do not fund your Guaranteed minimum death benefit until after issue, there
is no free withdrawal amount in connection with the Protected Benefit account
value prior to the contract date anniversary following the date on which you
funded your Guaranteed minimum death benefit. If you fund your Guaranteed
minimum death benefit with a transfer, your free withdrawal amount from your
Investment account value in that contract year will not be reduced by the
amount of the transfer. IF YOU FUND THE GUARANTEED MINIMUM DEATH BENEFIT AFTER
ISSUE WITH A TRANSFER OF 100% OF YOUR INVESTMENT ACCOUNT VALUE, YOU WILL NOT
HAVE A FREE WITHDRAWAL AMOUNT FOR THE REMAINDER OF THAT CONTRACT YEAR.
FOR CONTRACTS WITH GMIB. With respect to the Investment account, your free
withdrawal amount is 10% of the Investment account value at the beginning of
the contract year.
With respect to the Protected Benefit account, the free withdrawal amount is
the GMIB benefit base as of the most recent contract date anniversary
multiplied by the Annual Roll-up rate in effect on the first day of the
contract year. The Deferral Roll-up rate is never used to determine the free
withdrawal amount.
If you do not fund your GMIB until after issue, there is no free withdrawal
amount in connection with the Protected Benefit account prior to the contract
date anniversary following the date on which you funded your GMIB. If you fund
your GMIB with a transfer, your free withdrawal amount from your Investment
account in that contract year will not be reduced by the amount of the
transfer. IF YOU FUND THE GMIB AFTER ISSUE WITH A TRANSFER OF 100% OF YOUR
INVESTMENT ACCOUNT VALUE, YOU WILL NOT HAVE A FREE WITHDRAWAL AMOUNT FOR THE
REMAINDER OF THAT CONTRACT YEAR.
In general, the amount of any contribution or transfer into the Protected
Benefit account and a contribution into the Investment account after the first
day of the contract year will not be included in your free withdrawal amount
for that contract year.
When a withdrawal is taken from both the Investment account and the Protected
Benefit account, the free withdrawal amount is allocated based on the amounts
withdrawn from each.
Withdrawal charges will not apply when the GMIB is exercised under the no lapse
guarantee on the contract date anniversary following age 95.
FOR CONTRACTS WITH THE RMD WEALTH GUARD DEATH BENEFIT. With respect to the
Investment account, your free withdrawal amount is 10% of the Investment
account value at the beginning of the contract year.
With respect to the Protected Benefit account, the free withdrawal amount is
10% of the Protected Benefit account value at the beginning of the contract
year. Withdrawal charges do not apply to RMD Wealth Guard withdrawal amounts.
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 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).
-- "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.
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CHARGES AND EXPENSES
(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.
(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.
GUARANTEED BENEFIT CHARGES
RETURN OF PRINCIPAL DEATH BENEFIT. There is no additional charge for this death
benefit, but it must be elected with the Guaranteed minimum income benefit,
which does charge a fee. The Return of Principal death benefit, like all of the
guaranteed minimum death benefits, only applies to amounts you allocate to the
Protected Benefit account variable investment options and not to the contract
as a whole.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT. If you elect the Highest Anniversary
Value death benefit, we deduct a charge annually from your Protected Benefit
account variable investment options on each contract date anniversary for which
it is in effect. The charge is equal to 0.35% of the Highest Anniversary Value
benefit base. If you elect this benefit, but do not fund it until after your
contract date, we will deduct the full charge on the contract date anniversary
following the date on which you fund the benefit.
RMD WEALTH GUARD DEATH BENEFIT. If you elect the RMD Wealth Guard death
benefit, we will deduct a charge annually from your Protected Benefit account
variable investment options on each contract date anniversary for which it is
in effect. The current charge is equal to 0.60% (if you were age 20-64 on your
contract date) or 1.00% (if you were age 65-68 on your contract date) of the
RMD Wealth Guard death benefit base in effect each contract date anniversary.
If you have this benefit, but do not fund it until after your contract date, we
will deduct the full charge on the contract date anniversary following the date
on which you fund the benefit. We reserve the right to increase the charge for
this benefit up to a maximum of 1.20% (if you were age 20-64 on your contract
date) or 2.00% (if you were age 65-68 on your contract date). See, "Fee changes
for the Guaranteed minimum income benefit, "Greater of" death benefit and RMD
Wealth Guard death benefit" below for more information.
"GREATER OF" DEATH BENEFIT. If you elect this death benefit, we deduct a charge
annually from your Protected Benefit account variable investment options on
each contract date anniversary for which it is in effect. The current charge is
equal to [1.15]% of the "Greater of" death benefit base. If you elect this
benefit, but do not fund it until after your contract date, we will deduct the
full charge on the contract date anniversary following the date on which you
fund the benefit.
We reserve the right to increase the charge for this benefit up to a maximum of
2.30%. See "Fee changes for the Guaranteed minimum income benefit and "Greater
of" death benefit" below for more information.
GUARANTEED MINIMUM INCOME BENEFIT CHARGE. If you elected the GMIB, we deduct a
charge annually from your Protected Benefit account variable investment options
on each contract date anniversary until such time that your Lifetime GMIB
payments begin or you elect another annuity payout option, whichever occurs
first. The current charge is equal to [1.15]% of the GMIB benefit base in
effect on each contract date anniversary. If you have this benefit, but do not
fund it until after your contract date, we will deduct the full charge on the
contract date anniversary following the date on which you fund the benefit. We
reserve the right to increase the charge for this benefit up to a maximum of
2.30%. See "Fee changes for the Guaranteed minimum income benefit and "Greater
of" death benefit" below for more information.
-------------------
For the Highest Anniversary Value death benefit, "Greater of" death benefit,
GMIB and RMD Wealth Guard death benefit, we will deduct each charge from your
Protected Benefit account variable investment options on a pro rata basis. If
those amounts are insufficient to pay the charge and you have no amounts in the
Special DCA program designated for the Protected Benefit account variable
investment options, your benefit will terminate without value and you will lose
any applicable Guaranteed benefits except as noted under "Effect of your
account values falling to zero" in "Determining your contract's value" earlier
in this Prospectus. Your contract will also terminate if you do not have any
Investment account value.
For the Highest Anniversary Value death benefit, the "Greater of" death
benefit, the GMIB and RMD Wealth Guard death benefit, if any of the events
listed below occur on a date other than a contract date anniversary, we will
deduct a pro rata portion of the charge for that year. The pro rata portion of
the charge will be based on the fee that is in effect at the time the charge is
assessed.
.. A death benefit is paid;
.. you surrender the contract to receive its cash value;
.. you annuitize your Protected Benefit account value;
.. you transfer 100% of your Protected Benefit account value to the Investment
account (following the dropping of your Guaranteed benefits); or
.. you withdraw 100% of your Protected Benefit account value (following the
dropping of your Guaranteed benefits).
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CHARGES AND EXPENSES
FEE CHANGES FOR THE GUARANTEED MINIMUM INCOME BENEFIT, "GREATER OF" DEATH
BENEFIT AND RMD WEALTH GUARD DEATH BENEFIT
We may increase or decrease the charge for the Guaranteed minimum income
benefit, "Greater of" death benefit and RMD Wealth Guard death benefit. You
will be notified of a change in the charge at least 30 days in advance. The
charge for each benefit may only change once in a 12 month period and will
never exceed the maximum shown in the fee table. If you are within your first
two contract years at the time we notify you of a revised charge, the revised
charge will be effective the first day of the third contract year or at least
30 days following the notification date and will be assessed beginning on your
third contract date anniversary. If you have reached your second contract date
anniversary at the time we notify you of a revised charge, the revised charge
will be effective 30 days after the notification date and will be assessed as
of your next contract date anniversary that is at least 30 days after the fee
change notification date and on all contract date anniversaries thereafter. A
pro rated charge assessed during any contract year will be based on the charge
in effect at that time. See "Guaranteed benefit charges" above for more
information. You may not opt out of a fee change but you may drop the benefit
if you notify us in writing within 30 days after a fee change is declared. The
requirement that all withdrawal charges have expired will be waived. See
"Dropping or changing your Guaranteed benefits" in "Contract features and
benefits," as well as Appendix I for more information.
EXERCISE OF THE GMIB IN THE EVENT OF A GMIB FEE INCREASE. In the event we
increase the charge for the GMIB, you may exercise the GMIB subject to the
following rules. If you are within your first two contract years at the time we
notify you of a GMIB fee increase, you may elect to exercise the GMIB during
the 30 day period beginning on your second contract date anniversary. If you
have reached your second contract date anniversary at the time we notify you of
a GMIB fee increase, you may elect to exercise the GMIB during the 30 day
period beginning on the date of the fee increase notification. NOTE THAT IF YOU
ARE WITHIN YOUR FIRST TWO CONTRACT YEARS AT THE TIME WE NOTIFY YOU OF A GMIB
FEE INCREASE, YOUR OPPORTUNITY TO DROP THE BENEFIT IS THE 30 DAY PERIOD
FOLLOWING NOTIFICATION, NOT THE 30 DAY PERIOD FOLLOWING YOUR SECOND CONTRACT
DATE ANNIVERSARY. We must receive your election to exercise the GMIB within the
applicable 30 day GMIB exercise period. Any applicable GMIB exercise waiting
period will be waived. Upon expiration of the 30 day exercise period, any
contractual waiting period will resume. If your GMIB exercise waiting period
has already elapsed when a fee increase is announced, you may exercise your
GMIB during either (i) the 30 day GMIB exercise period provided by your
contract or (ii) the 30 day exercise period provided by the fee increase. It is
possible that these periods may overlap. For more information on your
contract's GMIB exercise period and exercise rules, see "Exercise of GMIB" in
"Contract features and benefits". This feature may not be available in all
states. In addition, this feature may vary in your state. For a state-by-state
description of all material variations of this contract, see Appendix V later
in this Prospectus.
For single owner contracts, the payout can be either based on a single life
(the owner's life) or joint lives. For IRA contracts, the joint life must be
the spouse of the owner. For jointly owned contracts, payments can be based on
a single life (based on the life of the older owner) or joint lives. For
non-natural owners, payments are available on the same basis (based on the
annuitant or joint annuitant's life). Your Lifetime GMIB payments are
calculated by applying your GMIB benefit base (as of the date we receive your
election in good order) less any applicable withdrawal charge remaining, to
guaranteed annuity purchase factors. See "Exercise of Guaranteed minimum income
benefit" under "Contract features and benefits" for additional information
regarding GMIB exercise.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity pay-out option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
.. Management fees.
.. 12b-1 fees.
.. Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
.. Investment-related expenses, such as brokerage commissions.
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.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce the withdrawal
charge (if applicable) or the daily contract charge, or change the minimum
initial contribution requirements. We also may change the Guaranteed benefits,
or offer variable investment options that invest in shares of the Trusts that
are not subject to the 12b-1 fee. We may also change the crediting percentage
that applies to contributions. Credits are subject to recovery under certain
circumstances. See "Credits (for Series CP(R) contracts)" under "Contract
features and benefits" earlier in this Prospectus. Group arrangements include
those in which a trustee or an employer, for example, purchases contracts
covering a group of individuals on a group basis. Group arrangements are not
available for traditional IRA and Roth IRA contracts. Sponsored arrangements
include those in which an employer allows us to sell contracts to its employees
or retirees on an individual basis.
Our costs for sales, administration and operations generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements
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CHARGES AND EXPENSES
for size and number of years in existence. Group or sponsored arrangements that
have been set up solely to buy contracts or that have been in existence less
than six months will not qualify for reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make
no representations with regard to the impact of these and other applicable laws
on such programs. We recommend that employers, trustees, and others purchasing
or making contracts available for purchase under such programs seek the advice
of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
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CHARGES AND EXPENSES
6. Payment of death benefit
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YOUR BENEFICIARY AND PAYMENT OF BENEFIT
You designate your beneficiary when you apply for your contract. You may change
your beneficiary at any time while you are alive and the contract is in force.
The change will be effective as of the date the written request is executed,
whether or not you are living on the date the change is received in our
processing office. We are not responsible for any beneficiary change request
that we do not receive. We will send you a written confirmation when we receive
your request.
Under jointly owned contracts, the surviving owner is considered the
beneficiary, and will take the place of any other beneficiary. Under a contract
with a non-natural owner that has joint annuitants who continue to be spouses
at the time of death, the surviving annuitant is considered the beneficiary,
and will take the place of any other beneficiary. In a QP contract, the
beneficiary must be the plan trust. Where an NQ contract is owned for the
benefit of a minor pursuant to the Uniform Gift to Minors Act or the Uniform
Transfers to Minors Act, the beneficiary must be the estate of the minor. Where
an IRA contract is owned in a custodial individual retirement account, the
custodian must be the beneficiary.
The death benefit in connection with your Investment account is equal to your
Investment account value as of the date we receive satisfactory proof of the
owner's (or older joint owner's, if applicable) death, any required
instructions for the method of payment, forms necessary to effect payment and
any other information we may require. For Series CP(R) contracts, the
Investment account value used to determine the death benefit will first be
reduced by the amount of any credits applied to contributions made during the
one-year period prior to the owner's (or older joint owner's, if applicable)
death.
The death benefit in connection with any amount in your Protected Benefit
account is equal to your Protected Benefit account value or, if greater, the
applicable Guaranteed minimum death benefit. We determine the amount of the
death benefit (other than the applicable Guaranteed minimum death benefit), as
of the date we receive satisfactory proof of the owner's (or older joint
owner's, if applicable) death, any required instructions for the method of
payment, forms necessary to effect payment and any other information we may
require (date of claim). However, this is not the case if the beneficiary of
your contract is your spouse and he or she decides to roll over the death
benefit to another contract issued by us. See "Effect of the owner's death"
below. For Series CP(R) contracts, the Protected Benefit account value used to
determine the death benefit will first be reduced by the amount of any credits
applied to contributions made during the one-year period prior to the owner's
(or older joint owner's, if applicable) death. The amount of the applicable
Guaranteed minimum death benefit will be such Guaranteed minimum death benefit
as of the date of the owner's (or older joint owner's, if applicable) death
adjusted for any subsequent withdrawals. If you elected the RMD Wealth Guard
death benefit, the RMD Wealth Guard death benefit base will be reduced on a
dollar-for-dollar basis by any withdrawals taken between December 31 of the
calendar year of the date of death and the date of claim. Payment of the death
benefit terminates the contract.
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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.
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Subject to applicable laws and regulations, you may impose restrictions on the
timing and manner of the payment of the death benefit to your beneficiary. For
example, your beneficiary designation may specify the form of death benefit
payout (such as a life annuity), provided the payout you elect is one that we
offer both at the time of designation and when the death benefit is payable. In
general, the beneficiary will have no right to change the election. However,
you should be aware that (i) in accordance with current federal income tax
rules, we apply a predetermined death benefit annuity payout election only if
payment of the death benefit amount begins within one year following the date
of death, which payment may not occur if the beneficiary has failed to provide
all required information before the end of that period, (ii) we will not apply
the predetermined death benefit payout election if doing so would violate any
federal income tax rules or any other applicable law, and (iii) a beneficiary
or a successor owner who continues the contract under one of the continuation
options described below will have the right to change your annuity payout
election.
In general, if the annuitant dies, the owner (or older joint owner, if
applicable) will become the annuitant, and the death benefit is not payable. If
the contract had joint annuitants, it will become a single annuitant contract.
EFFECT OF THE OWNER'S DEATH
In general, if the owner dies while the contract is in force, the contract
terminates and the applicable death benefit is paid. If the contract is jointly
owned, the death benefit is payable upon the death of the older owner. If the
contract has a non-natural owner, the death benefit is payable upon the death
of the annuitant.
There are various circumstances, however, in which the contract can be
continued by a successor owner or under a Beneficiary continuation option
("BCO"). For contracts with spouses who are joint owners, the surviving spouse
will automatically be able to continue the contract under the "Spousal
continuation" feature or under our Beneficiary continuation option, as
discussed below. For contracts with non-spousal joint owners, the joint owner
will be able to continue the contract as a successor owner subject to the
limitations discussed below under "Non-spousal joint owner contract
continuation."
If you are the sole owner, your surviving spouse may have the option to:
.. take the death benefit proceeds in a lump sum;
.. exercise the GMIB (if applicable), if the surviving spouse is age 85 or
older at the time of your death;
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PAYMENT OF DEATH BENEFIT
.. continue the contract as a successor owner under "Spousal continuation" (if
your spouse is the sole primary beneficiary) or under our Beneficiary
continuation option, as discussed below; or
.. roll the death benefit proceeds over into another contract.
If you elected the GMIB, and your surviving spouse is age 85 or older at the
time of your death and wishes to exercise the GMIB, we must receive the
exercise election within twelve months of your date of death. The annuity
purchase factors that apply in calculating the GMIB payments to your surviving
spouse differ from the annuity purchase factors that we generally use to
calculate GMIB payments.
If your surviving spouse rolls over the death benefit proceeds into a contract
issued by us, the amount of the death benefit will be calculated as of the date
we receive all requirements necessary to issue your spouse's new contract. Any
death proceeds will remain invested in this contract until your spouse's new
contract is issued. The amount of the death benefit will be calculated to equal
the greater of the account value (as of the date your spouse's new contract is
issued) and the applicable Guaranteed minimum death benefit (as of the date of
your death). This means that the death benefit proceeds could vary up or down,
based on investment performance, until your spouse's new contract is issued.
If the surviving joint owner is not the surviving spouse, or, for single owner
contracts, if the beneficiary is not the surviving spouse, federal income tax
rules generally require payments of amounts under the contract to be made
within five years of an owner's death (the "5-year rule"). In certain cases, an
individual beneficiary or non-spousal surviving joint owner may opt to receive
payments over his/her life (or over a period not in excess of his/her life
expectancy) if payments commence within one year of the owner's death. Any such
election must be made in accordance with our rules at the time of death. If the
beneficiary of a contract with one owner or a younger non-spousal joint owner
continues the contract under the 5-year rule, in general, all Guaranteed
benefits and their charges will end. For more information on non-spousal joint
owner contract continuation, see the section immediately below.
NON-SPOUSAL JOINT OWNER CONTRACT CONTINUATION
Upon the death of either owner, the surviving joint owner becomes the sole
owner.
Any death benefit (if the older owner dies first) or cash value (if the younger
owner dies first) must be fully paid to the surviving joint owner within five
years. The surviving owner may instead elect to receive a life annuity,
provided payments begin within one year of the deceased owner's death. If the
life annuity is elected, the contract and all benefits terminate.
If the older owner dies first, we will increase the account value to equal the
Guaranteed minimum death benefit, if higher. The surviving owner can elect to
(1) take a lump sum payment; (2) annuitize within one year; (3) continue the
contract for up to five years and any GMIB and charge will be terminated; or
(4) continue the contract under the Beneficiary continuation option. For Series
CP(R) contracts, if any contributions are made during the one-year period prior
to the owner's death, the account value will first be reduced by any credits
applied to any such contributions.
If the contract continues, any Guaranteed minimum death benefit and associated
charge will be discontinued. Withdrawal charges, if applicable, will no longer
apply, and no subsequent contributions will be permitted.
If the younger owner dies first, the surviving owner can elect to (1) take a
lump sum payment; (2) annuitize within one year; (3) continue the contract for
up to five years; or (4) continue the contract under the Beneficiary
continuation option. If the contract continues under the "5-year rule", the
death benefit is not payable and the Guaranteed minimum death benefit, if
applicable, will continue without change. In general, the GMIB and charge will
be discontinued. Withdrawal charges, if applicable, will continue to apply and
no subsequent contributions will be permitted.
SPOUSAL CONTINUATION
If you are the contract owner and your spouse is the sole primary beneficiary
or you jointly own the contract with your younger spouse, your spouse may elect
to continue the contract as successor owner upon your death. Spousal
beneficiaries (who are not also joint owners) must be 85 or younger as of the
date of the deceased spouse's death in order to continue the contract under
Spousal continuation. The determination of spousal status is made under
applicable state law. However, in the event of a conflict between federal and
state law, we follow federal rules.
Upon your death, the younger spouse joint owner (for NQ contracts only) or the
spouse beneficiary (under a single owner contract), may elect to receive the
death benefit, continue the contract under our Beneficiary continuation option
(as discussed below in this section) or continue the contract, as follows:
.. In general, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges if applicable will apply if
subsequent contributions are made.
.. For contracts with the Return of Principal death benefit, a surviving
spouse age 80 or younger on the date of your death can continue the
contract with the Return of Principal death benefit and can continue
funding the Protected Benefit account through age 80.
A surviving spouse age 81 or older on the date of your death can continue
the contract but the Return of Principal death benefit amount will be
frozen. This means that the Return of Principal death benefit base will no
longer increase and will be subject to pro rata reduction for any subsequent
withdrawals.
.. For contracts with the Highest Anniversary Value or "Greater of" death
benefit, as applicable, the following applies:
-- If the surviving spouse is age [65] or younger on the date of your death
for contracts with the "Greater of" death benefit, and you were age [79]
or younger at death, the Guaranteed minimum death benefit continues and
will continue to grow according to its terms until the contract date
anniversary following the date the surviving spouse reaches age [80]. The
charge for the applicable Guaranteed minimum death benefit will continue
to apply, even after the Guaranteed minimum death benefit no longer rolls
up or is no longer eligible for resets.
-- If the surviving spouse is age [75] or younger on the date of your death
for contracts with the Highest Anniversary Value death benefit, and you
were age [84] or younger at death, the Guaranteed minimum death benefit
continues and will continue to grow according to its terms until the
contract date anniversary following the date the surviving spouse reaches
age [85]. The charge for the applicable Guaranteed minimum death benefit
will continue to apply, even after the Guaranteed minimum death benefit
no longer rolls up or is no longer eligible for resets.
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PAYMENT OF DEATH BENEFIT
-- If the surviving spouse is age [65] or younger on the date of your death
for contracts with the "Greater of" death benefit and you were age [80]
or older at death, we will reinstate the Guaranteed minimum death benefit
under the contract. The benefit base (which had previously been frozen at
age [80]) will now continue to grow according to its terms until the
contract date anniversary following the date the surviving spouse reaches
age [80]. The charge for the Guaranteed minimum death benefit will
continue to apply, even after the Guaranteed minimum death benefit no
longer rolls up or is no longer eligible for resets.
-- If the surviving spouse is age [75] or younger for contracts with the
Highest Anniversary Value death benefit and you were age [85] or older at
death, we will reinstate the Guaranteed minimum death benefit under the
contract. The benefit base (which had previously been frozen at age [85])
will now continue to grow according to its terms until the contract date
anniversary following the date the surviving spouse reaches age [85]. The
charge for the Guaranteed minimum death benefit will continue to apply,
even after the Guaranteed minimum death benefit no longer rolls up or is
no longer eligible for resets.
-- If the "Greater of" death benefit continues, the Roll-up to age 80
benefit base reset, and any Deferral Roll-up amount or Annual Roll-up
amount, as applicable, will be based on the surviving spouse's age.
-- If the surviving spouse is age [76] or older on the date of your death,
for contracts with the Highest Anniversary Value death benefit, that
death benefit will be frozen, which means:
. On the date your spouse elects to continue the contract, the value of
the Highest Anniversary Value death benefit will be set to equal the
amount of the Highest Anniversary Value benefit base on the date of
your death. If your Total account value is higher than the Highest
Anniversary Value benefit base on the date of your death, the Highest
Anniversary Value benefit base WILL NOT BE INCREASED to equal your
Total account value.
. The Highest Anniversary Value death benefit will no longer be eligible
to increase, and will be subject to pro rata reduction for any
subsequent withdrawals.
. The charge for the Highest Anniversary Value death benefit will be
discontinued.
. Upon the death of your spouse, the beneficiary will receive, as of the
date of death, the greater of the Total account value and the value of
the Highest Anniversary death benefit.
-- If the surviving spouse is age 66 or over on the date of your death, for
contracts with the "Greater of" death benefit, that death benefit will be
frozen, which means:
. On the date your spouse elects to continue the contract, the value of
the "Greater of" death benefit will be set to equal the amount of the
"Greater of" death benefit base on the date of your death. If your
Total account value is higher than the "Greater of" death benefit base
on the date of your death, the "Greater of" death benefit base WILL
NOT BE INCREASED to equal your Total account value.
. The "Greater of" death benefit will no longer be eligible to increase,
and will be subject to pro rata reduction for any subsequent
withdrawals.
. The charge for the "Greater of" death benefit will be discontinued.
. Upon the death of your spouse, the beneficiary will receive, as of the
date of death, the greater of the Total account value and the value of
the Guaranteed minimum death benefit.
-- In all cases, whether the Guaranteed minimum death benefit continues or
is discontinued, if your Total account value is lower than the "Greater
of" death benefit base on the date of your death, your Total account
value WILL BE INCREASED to equal the "Greater of" death benefit base.
Even though the "Greater of" death benefit is frozen, the surviving
spouse can continue the contract with the Return of Principal death
benefit and can continue funding the Protected Benefit account through
age 80.
.. For contracts with the RMD Wealth Guard death benefit, the following
applies:
-- We will increase the Protected Benefit account value to equal RMD Wealth
Guard death benefit base, if higher. This increase will be excluded from
the total contributions portion of the calculation of any future RMD
Wealth Guard Refund amount, if applicable.
-- Withdrawal charges will not apply to the Protected Benefit account value
at the time the surviving spouse elects to continue the contract, but
they will apply to any contributions made by the surviving spouse after
the owner's death.
-- If the surviving spouse is age 68 or younger on the date of death, the
RMD Wealth Guard death benefit continues. The applicable fee for the RMD
Wealth Guard death benefit will be based on the surviving spouse's age at
the time of the owner's death, and will be higher if the surviving spouse
is age 65 or higher as of the date of death and the deceased owner was
under age 65 when the contract was issued. The RMD Wealth Guard death
benefit base will continue to grow (or, if the benefit base had been
frozen upon the owner reaching age 85, resume growing) according to its
terms until the contract date anniversary following the earlier of (i)
the first RMD withdrawal from the Protected Benefit account and (ii) the
date the surviving spouse reaches age 85. Any fees for the RMD Wealth
Guard death benefit collected between the date of death and the date of
claim will not be refunded.
-- If age 68 or younger on the date of death, the surviving spouse can fund
the RMD Wealth Guard death benefit base if the deceased contract owner
had been eligible to fund it but did not do so, or increase the RMD
Wealth Guard death benefit base, by contributing or transferring
additional amounts to the Protected Benefit Account, subject to the
restrictions on contributions and transfers to the Protected Benefit
Account described in "Appendix VIII: Rule regarding contributions to your
contract" later in this Prospectus and "Transferring your account value"
in "Transferring your money among investment options" earlier in this
Prospectus. Specifically, the restrictions on contributions and transfers
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PAYMENT OF DEATH BENEFIT
that apply to contract owners age 20-64 on their contract date also apply
to a surviving spouse age 20-64 on the date of death, and the rules that
apply to contract owners age 65-68 on their contract date also apply to a
surviving spouse aged 65-68 on the date of death.
-- If the surviving spouse is age 69 or older at the time of the owner's
death, and the Protected Benefit account has value, the RMD Wealth Guard
death benefit amount will be frozen. This means that the RMD Wealth Guard
death benefit base will no longer increase and will be subject to pro
rata reduction for any subsequent withdrawals, including RMD withdrawals.
The charge for the RMD Wealth Guard death benefit will be discontinued
and the RMD Wealth Guard Refund feature will no longer apply. If the
Protected Benefit account has no value, the RMD Wealth Guard death
benefit will terminate and the charge will be discontinued.
-- A surviving spouse who does not wish to continue the RMD Wealth Guard
death benefit can terminate the benefit by taking a full withdrawal of
the Protected Benefit account or making a one-time transfer to the
Investment account variable investment options and guaranteed interest
option.
The GMIB may continue if the benefit had not already terminated and the benefit
will be based on the surviving spouse's age at the date of the deceased
spouse's death. See "Exercise rules" under ''Guaranteed minimum income benefit
(''GMIB'')'' in ''Contract features and benefits'' earlier in this Prospectus.
If the GMIB continues, the charge for the GMIB will continue to apply.
Where an NQ contract is owned by a Living Trust, as defined in the contract,
and at the time of the annuitant's death the annuitant's spouse is the sole
beneficiary of the Living Trust, the Trustee, as owner of the contract, may
request that the spouse be substituted as annuitant as of the date of the
annuitant's death. No further change of annuitant will be permitted.
Where an IRA contract is owned in a custodial individual retirement account,
and your spouse is the sole beneficiary of the account, the custodian may
request that the spouse be substituted as annuitant after your death.
For jointly owned NQ contracts, if the younger spouse dies first no death
benefit is paid, and the contract continues as follows:
.. The Guaranteed benefits continue to be based on the older spouse's age for
the life of the contract.
.. If the deceased spouse was the annuitant, the surviving spouse becomes the
annuitant. If the deceased spouse was a joint annuitant, the contract will
become a single annuitant contract.
.. The withdrawal charge schedule, if applicable, remains in effect.
If you divorce, Spousal continuation does not apply.
BENEFICIARY CONTINUATION OPTION
This feature permits a designated individual, on the contract owner's death, to
maintain a contract with the deceased contract owner's name on it and receive
distributions under the contract, instead of receiving the death benefit in a
single sum. We make this option available to beneficiaries under traditional
IRA, Roth IRA and NQ contracts, subject to state availability. Please speak
with your financial professional for further information. For a state-by-state
description of all material variations of this contract, including information
on the availability of the Beneficiary continuation option in your state, see
Appendix V later in this Prospectus.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian may reinvest the death benefit in an individual retirement
annuity contract, using the account beneficiary as the annuitant. Please speak
with your financial professional for further information.
BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS
ONLY. The Beneficiary continuation option must be elected by September 30th of
the year following the calendar year of your death and before any other
inconsistent election is made. Beneficiaries who do not make a timely election
will not be eligible for this option. If the election is made, then, as of the
date we receive satisfactory proof of death, any required instructions,
information and forms necessary to effect the Beneficiary continuation option
feature, we will increase the Protected Benefit account value to equal the
applicable death benefit if such death benefit is greater than such account
value, adjusted for any subsequent withdrawals. For Series CP(R) contracts, if
any contributions are made during the one-year period prior to the owner's
death, the account value will first be reduced by any credits applied to any
such contributions.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy (determined in the calendar year after your death
and determined on a term certain basis). These payments must begin no later
than December 31st of the calendar year after the year of your death. For sole
spousal beneficiaries, payments may begin by December 31st of the calendar year
in which you would have reached age 70 1/2, if such time is later. For
traditional IRA contracts only, if you die before your Required Beginning Date
for Required Minimum Distributions, as discussed later in this Prospectus in
"Tax information" under "Individual retirement arrangements (IRAs)," the
beneficiary may choose the "5-year rule" option instead of annual payments over
life expectancy. The "5-year rule" is always available to beneficiaries under
Roth IRA contracts. If the beneficiary chooses this option, the beneficiary may
take withdrawals as desired, but the entire account value must be fully
withdrawn by December 31st of the calendar year which contains the fifth
anniversary of your death.
Under the Beneficiary continuation option for IRA and Roth IRA contracts:
.. The contract continues with your name on it for the benefit of your
beneficiary.
.. The beneficiary replaces the deceased owner as annuitant.
.. This feature is only available if the beneficiary is an individual. Certain
trusts with only individual beneficiaries will be treated as individuals
for this purpose.
.. If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the beneficiary's own
life expectancy, if payments over life expectancy are chosen.
.. The minimum amount that is required in order to elect the Beneficiary
continuation option is $5,000 for each beneficiary.
.. The beneficiary may make transfers among the Investment account variable
investment options and the guaranteed interest option (subject to our
rules) but no subsequent contributions will be permitted.
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PAYMENT OF DEATH BENEFIT
.. The Protected Benefit account variable investment options will no longer be
available and no value can be allocated to those investment options.
.. If any Guaranteed benefits are in effect under the contract, they will no
longer be in effect and charges for such benefits will stop.
.. The beneficiary may choose at any time to withdraw all or a portion of the
Total account value 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 dies
before the annuity maturity date, whether or not the owner and the annuitant
are the same person. For purposes of this discussion, "beneficiary" refers to
the successor owner. This feature must be elected within 9 months following the
date of your death and before any other inconsistent election is made.
Beneficiaries who do not make a timely election will not be eligible for this
option.
Generally, payments will be made once a year to the beneficiary over the
beneficiary's life expectancy, determined on a term certain basis and in the
year payments start. These payments must begin no later than one year after the
date of your death and are referred to as "scheduled payments." The beneficiary
may choose the "5-year rule" instead of scheduled payments over life
expectancy. If the beneficiary chooses the 5-year rule, there will be no
scheduled payments. Under the 5-year rule, the beneficiary may take withdrawals
as desired, but the entire account value must be fully withdrawn by the fifth
anniversary of your death.
Under the Beneficiary continuation option for NQ contracts:
.. This feature is only available if the beneficiary is an individual. It is
not available for any entity such as a trust, even if all of the
beneficiaries of the trust are individuals.
.. The beneficiary automatically replaces the existing annuitant.
.. The contract continues with your name on it for the benefit of your
beneficiary.
.. If there is more than one beneficiary, each beneficiary's share will be
separately accounted for. It will be distributed over the respective
beneficiary's own life expectancy, if scheduled payments are chosen.
.. The minimum amount that is required in order to elect the Beneficiary
continuation option is $5,000 for each beneficiary.
.. The beneficiary may make transfers among the Investment account variable
investment options but no subsequent contributions will be permitted.
.. The Protected Benefit account variable investment options will no longer be
available and no value can be allocated to those investment options.
.. If any Guaranteed benefits are in effect under the contract, they will no
longer be in effect and charges for such benefits will stop.
.. If the beneficiary chooses the "5-year rule," withdrawals may be made at
any time. If the beneficiary instead chooses scheduled payments, the
beneficiary may also take withdrawals, in addition to scheduled payments,
at any time.
.. Any partial withdrawals must be at least $300.
.. Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
.. Upon the death of your beneficiary, the beneficiary he or she has named has
the option to either continue taking scheduled payments based on the
remaining life expectancy of the deceased beneficiary (if scheduled
payments were chosen) or to receive any remaining interest in the contract
in a lump sum. We will pay any remaining interest in the contract in a lump
sum if your beneficiary elects the 5-year rule. The option elected will be
processed when we receive satisfactory proof of death, any required
instructions for the method of payment and any required information and
forms necessary to effect payment.
IF THE DECEASED IS THE OWNER OR THE OLDER JOINT OWNER:
.. As of the date we receive satisfactory proof of death, any required
instructions, information and forms necessary to effect the Beneficiary
continuation option feature, we will increase the Protected Benefit account
value to equal the applicable death benefit if such death benefit is
greater than such Protected Benefit account value adjusted for any
subsequent withdrawals. For Series CP(R) contracts, if any contributions
are made during the one-year period prior to the owner's death, the account
value will first be reduced by any credits applied to any such
contributions.
.. No withdrawal charges, if applicable, will apply to any withdrawals by the
beneficiary.
IF THE DECEASED IS THE YOUNGER NON-SPOUSAL JOINT OWNER:
.. The account value will not be reset to the death benefit amount.
.. 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 free withdrawal amount. See
the "Withdrawal charges" in "Charges and expenses" earlier in this
Prospectus, if applicable.
-------------------
A surviving spouse should speak to his or her tax professional about whether
Spousal continuation or the Beneficiary continuation option is appropriate for
him or her. Factors to consider include, but are not limited to, the surviving
spouse's age, need for immediate income and a desire to continue any Guaranteed
benefits under the contract.
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PAYMENT OF DEATH BENEFIT
7. Tax information
--------------------------------------------------------------------------------
OVERVIEW
In this part of the Prospectus, we discuss the current federal income tax rules
that generally apply to Retirement Cornerstone(R) Series contracts owned by
United States individual taxpayers. The tax rules can differ, depending on the
type of contract, whether NQ, traditional IRA, Roth IRA or QP. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and IRS interpretations of the
Internal Revenue Code. These tax rules may change without notice. We cannot
predict whether, when, or how these rules could change. Any change could affect
contracts purchased before the change. Congress may also consider proposals 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 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, FATCA and related rules may
require us to document the status of certain contractholders, as well as report
contract values and other information for such contractholders. For this reason
AXA Equitable and its affiliates intend to require appropriate status
documentation at purchase, change of ownership, and affected payment
transactions including death benefit payments. FATCA and its related guidance
is extraordinarily complex and its effect varies considerably by type of payor,
type of payee and type of recipient.
CONTRACTS THAT FUND A RETIREMENT ARRANGEMENT
Generally, there are two types of funding vehicles that are available for
Individual Retirement Arrangements ("IRAs"): an individual retirement annuity
contract such as the ones offered in this Prospectus, or a custodial or
trusteed individual retirement account. Annuity contracts can also be purchased
in connection with retirement plans qualified under Section 401(a) of the Code
("QP contracts"). How these arrangements work, including special rules
applicable to each, are noted in the specific sections for each type of
arrangement, below. You should be aware that the funding vehicle for a
tax-qualified arrangement does not provide any tax deferral benefit beyond that
already provided by the Code for all permissible funding vehicles. Before
choosing an annuity contract, therefore, you should consider the annuity's
features and benefits compared with the features and benefits of other
permissible funding vehicles and the relative costs of annuities and other
arrangements. You should be aware that cost may vary depending on the features
and benefits made available and the charges and expenses of the investment
options or funds that you elect.
Certain provisions of the Treasury Regulations on required minimum
distributions concerning the actuarial present value of additional contract
benefits could increase the amount required to be distributed from annuity
contracts funding qualified plans and IRAs. For this purpose additional annuity
contract benefits may include, but are not limited to the various Guaranteed
benefits. You should consider the potential implication of these Regulations
before you purchase this annuity contract or purchase additional features under
this annuity contract. See also Appendix II at the end of this Prospectus for a
discussion of QP contracts.
TRANSFERS AMONG INVESTMENT OPTIONS
If permitted under the terms of the contract, you can make transfers among
investment options inside the contract without triggering taxable income.
TAXATION OF NONQUALIFIED ANNUITIES
CONTRIBUTIONS
You may not deduct the amount of your contributions to a nonqualified annuity
contract.
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 typical grantor trust.
Federal tax law requires that all nonqualified deferred annuity contracts that
AXA Equitable and its affiliates issue to you during the same calendar year be
linked together and treated as one contract for calculating the taxable amount
of any distribution from any of those contracts.
ANNUITY PAYMENTS
The following applies to an annuitization of the entire contract. In certain
cases, the contract can be partially annuitized. See "Partial Annuitization"
below.
Annuitization under a Retirement Cornerstone(R) Series contract occurs when
your interest under the contract is or has been applied to one or more payout
options intended to amortize amounts over your life or over a period certain
generally limited by the period of your life expectancy. (We do not currently
offer a period certain option without life contingencies). Annuity payouts can
also be determined on a joint life basis. After annuitization, no further
contributions to the contract may be made, the annuity payout amount must be
paid at least annually, and annuity payments cannot be stopped except by death
or surrender (if permitted under the terms of the contract).
Once annuity payments begin, a portion of each payment is taxable as ordinary
income. You get back the remaining portion without paying taxes on it. This is
your unrecovered investment in the contract. Generally, your investment in the
contract equals the contributions you made, less any amounts you previously
withdrew that were not taxable.
For fixed annuity payments, the tax-free portion of each payment is determined
by (1) dividing your investment in the contract by the total amount you are
expected to receive out of the contract, and (2) multiplying the result by the
amount of the payment. For variable annuity payments, your tax-free portion of
each payment is your investment in the contract divided by the number of
expected payments. If you have a loss on a variable annuity payout in a taxable
year, you may be able to adjust the tax-free amount in subsequent years.
Once you have received the amount of your investment in the contract, all
payments after that are fully taxable. If payments under a life annuity stop
because the annuitant dies, there is an income tax deduction for any
unrecovered investment in the contract.
Your rights to apply amounts under this contract to an annuity payout option
are described elsewhere in this Prospectus. If you hold your contract to the
maximum maturity age under the contract we require that a choice be made
between taking a lump sum settlement of any remaining account value or applying
any such account value to an annuity payout option we may offer at the time
under the contract. If no affirmative choice is made, we will apply any
remaining account value or interest in the contract to the default option under
the contract at such age. While there is no specific federal tax guidance as to
whether or when an annuity contract is required to mature, or as to the form of
the payments to be made upon maturity, we believe that this contract
constitutes an annuity contract under current federal tax rules.
ANNUITY PAYMENTS UNDER THE NO LAPSE GUARANTEE IF YOU ELECTED THE GMIB
If the value of the Protected Benefit account falls to zero before the maturity
date and the no lapse guarantee is still in effect, we will issue a
supplementary contract as described earlier in this Prospectus in "Guaranteed
minimum income benefit" under "Contract features and benefits". The payments
under the no lapse guarantee will be treated as annuity payments. If you have
no value remaining in the Investment account, the entire contract will be
annuitized. If you have value remaining in the Investment account, the contract
will be treated as partially annuitized as described below. Since the value of
the Protected Benefit account has fallen to zero, all of the account value
under the contract is allocated to the Investment account, and all of the basis
or investment in the contract will remain with the Investment account. Since no
investment in the contract is allocated to the stream of payments under the no
lapse guarantee, all amounts will be fully taxable over your life.
PARTIAL ANNUITIZATION
The consequences described above for annuitization of the entire contract apply
to the portion of the contract which is partially annuitized. A nonqualified
deferred annuity contract is treated as being partially annuitized if a portion
of the contract is applied to an annuity payout option on a life-contingent
basis or for a period certain of at least 10 years. 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.
WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your Total account value less your total investment in
the contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a reduction of your investment in the contract and is not taxable.
Collateral assignments are taxable to the extent of any earnings in the
contract at the time any portion of the contract's value is assigned as
collateral. Therefore, if you assign your contract as collateral for a loan
with a third party after the contract is issued, you may have taxable income
even though you receive no payments under the contract. AXA Equitable will
report any income attributable to a collateral assignment on Form 1099-R. Also,
if AXA Equitable makes payments or distributions to the assignee pursuant to
directions under the collateral assignment agreement, any gains in such
payments may be taxable to you and reportable on Form 1099-R even though you do
not receive them.
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TAX INFORMATION
TAXATION OF ANNUAL WITHDRAWALS PRIOR TO THE BEGINNING OF LIFETIME GMIB PAYMENTS
We treat any withdrawals under the contract as non-annuity payments for income
tax purposes. (This includes Annual withdrawal amounts received before the
entire contract is annutized as described above under "Annuity Payments.")
1035 EXCHANGES
You may purchase a nonqualified deferred annuity contract through an exchange
of another contract. Normally, exchanges of contracts are taxable events. The
exchange will not be taxable under Section 1035 of the Internal Revenue Code if:
.. the contract that is the source of the funds you are using to purchase the
nonqualified deferred annuity contract is another nonqualified deferred
annuity contract or life insurance or endowment contract.
.. the owner and the annuitant are the same under the source contract and the
contract issued in exchange. If you are using a life insurance or endowment
contract the owner and the insured must be the same on both sides of the
exchange transaction.
In some cases you may make a tax-deferred 1035 exchange from a nonqualified
deferred annuity contract to a "qualified long-term care contract" meeting all
specified requirements under the Code or an annuity contract with a "qualified
long-term care contract" feature (sometimes referred to as a "combination
annuity" contract).
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the contract issued in exchange.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to purchase or contribute to another nonqualified
deferred annuity contract on a tax-deferred basis. If requirements are met, the
owner may also directly transfer amounts from a nonqualified deferred annuity
contract to a "qualified long-term care contract" or "combination annuity" in
such a partial 1035 exchange transaction. Special forms, agreement between the
carriers, and provision of cost basis information may be required to process
this type of an exchange.
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.
EARLY DISTRIBUTION PENALTY TAX
If you take distributions before you are age 59 1/2, a penalty tax of 10% of
the taxable portion of your distribution applies in addition to the income tax.
Some of the available exceptions to the pre-age 59 1/2 penalty tax include
distributions made:
.. on or after your death; or
.. because you are disabled (special federal income tax definition); or
.. in the form of substantially equal periodic annuity payments at least
annually over your life (or life expectancy), or the joint lives of you and
your beneficiary (or joint life expectancies) using an IRS-approved
distribution method. We do not anticipate that GMIB Annual withdrawal
amount payments made before age 59 1/2 will qualify for this exception.
Please note that it is your responsibility to claim the penalty exception on
your own income tax return and to document eligibility for the exception to the
IRS.
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 could cause you to be
treated as the owner. We do not know whether the IRS will ever provide such
guidance or whether such guidance, if unfavorable, would apply retroactively to
your contract. Furthermore, the IRS could reverse its current guidance at any
time. We reserve the right to modify your contract as necessary to prevent you
from being treated as the owner of the assets of Separate Account No. 70.
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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, respectively.
This Prospectus contains the information that the IRS requires you to have
before you purchase an IRA. The first section covers some of the special tax
rules that apply to traditional IRAs. The next section covers Roth IRAs. The
disclosure generally assumes direct ownership of the individual retirement
annuity contract. For contracts owned in a custodial individual retirement
account, the disclosure will apply only if you terminate your account or
transfer ownership of the contract to yourself.
We describe the amount and types of charges that may apply to your
contributions under "Charges and expenses" earlier in this Prospectus. We
describe the method of calculating payments under "Accessing your money"
earlier in this Prospectus. We do not guarantee or project growth in any
variable income annuitization option payments (as opposed to payments from a
fixed income annuitization option).
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 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 either type of the Retirement Cornerstone(R) Series IRA contract
(traditional IRA or Roth IRA) by following the directions in "Your right to
cancel with a certain number of days" under "Contract features and benefits"
earlier in this Prospectus. If you cancel a traditional IRA or Roth IRA
contract, we may have to withhold tax, and we must report the transaction to
the IRS. A contract cancellation could have an unfavorable tax impact.
TRADITIONAL INDIVIDUAL RETIREMENT ANNUITIES (TRADITIONAL IRAS)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to purchase a traditional IRA or as additional contributions
to an existing IRA:
.. "regular" contributions out of earned income or compensation; or
.. tax-free "rollover" contributions; or
.. direct custodian-to-custodian transfers from other traditional IRAs
("direct transfers").
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 the
contract is larger than the maximum regular contribution you can make to an IRA
for a taxable year, Series CP(R) Retirement Cornerstone(R) Series contracts
must be purchased through a direct transfer contribution or rollover
contribution. Since the minimum initial contribution AXA Equitable requires to
purchase the Retirement Cornerstone(R) Series B contract is $5,000, which is
less than as the current maximum regular contribution you can make to an IRA
for a taxable year, the Retirement Cornerstone(R) Series B contract may be
purchased through a regular contribution as well as direct transfer or rollover
contribution.
See "Simplified Employee Pension Plans (SEP Plans)" later in this section for
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 particular taxable
year. The maximum regular contribution amount depends on age, earnings, and
year, among other things. Generally,
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$5,500 is the maximum amount that you may contribute to all IRAs (traditional
IRAs and Roth IRAs) for 2017, 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 Federal 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
non-working 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 2017 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 2017). 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
designated 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 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.
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A distribution from a traditional IRA is not taxable if:
.. the amount received is a withdrawal of certain excess contributions, as
described in IRS Publications 590-A and 590-B; or
.. the entire amount received is rolled over to another traditional IRA or
other eligible retirement plan which agrees to accept the funds. (See
"Rollovers from eligible retirement plans other than traditional IRAs" in
"Traditional individual retirement annuities (traditional IRAs)" earlier in
this section for more information.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a 403(b) plan or a governmental employer
457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from
your traditional IRA into, or back into, a qualified plan, 403(b) plan or
governmental employer 457(b) plan. Before you decide to roll over a
distribution from a traditional IRA to another eligible retirement plan, you
should check with the administrator of that plan about whether the plan accepts
rollovers and, if so, the types it accepts. You should also check with the
administrator of the receiving plan about any documents required to be
completed before it will accept a rollover.
Distributions from a traditional IRA are not eligible for favorable ten-year
averaging and long-term capital gain treatment available under limited
circumstances for certain distributions from qualified plans. If you might be
eligible for such tax treatment from your qualified plan, you may be able to
preserve such tax treatment even though an eligible rollover from a qualified
plan is temporarily rolled into a "conduit IRA" before being rolled back into a
qualified plan. See your tax adviser.
IRA DISTRIBUTIONS DIRECTLY TRANSFERRED TO CHARITY. Specified distributions from
IRAs directly transferred to charitable organizations may be tax-free to IRA
owners age 70 1/2 or older. 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. Since an IRA owner
is responsible for determining the tax consequences of any distribution from an
IRA, we report the distribution to you on Form 1099-R. After discussing with
your own tax advisor, it is your responsibility to report any distribution
qualifying as a tax-free charitable direct transfer from your IRA on your own
tax return.
REQUIRED MINIMUM DISTRIBUTIONS
BACKGROUND ON REGULATIONS -- REQUIRED MINIMUM DISTRIBUTIONS. Distributions must
be made from traditional IRAs according to rules contained in the Code and
Treasury Regulations. Certain provisions of the Treasury Regulations require
that the actuarial present value of additional annuity contract benefits must
be added to the dollar amount credited for purposes of calculating certain
types of required minimum distributions from individual retirement annuity
contracts. For this purpose additional annuity contract benefits may include,
but are not limited to, Guaranteed benefits. This could increase the amount
required to be distributed from the contracts if you take annual withdrawals
instead of annuitizing. Please consult your tax adviser concerning
applicability of these complex rules to your situation.
LIFETIME REQUIRED MINIMUM DISTRIBUTIONS. You must start taking annual
distributions from your traditional IRAs for the year in which you turn age
70 1/2.
WHEN YOU HAVE TO TAKE THE FIRST LIFETIME REQUIRED MINIMUM DISTRIBUTION. The
first required minimum distribution is for the calendar year in which you turn
age 70 1/2. You have the choice to take this first required minimum
distribution during the calendar year you actually reach age 70 1/2, or to
delay taking it until the first three-month period in the next calendar year
(January 1st - April 1st). Distributions must start no later than your
"Required Beginning Date", which is April 1st of the calendar year after the
calendar year in which you turn age 70 1/2. If you choose to delay taking the
first annual minimum distribution, then you will have to take two minimum
distributions in that year -- the delayed one for the first year and the one
actually for that year. Once minimum distributions begin, they must be made at
some time each year.
HOW YOU CAN CALCULATE REQUIRED MINIMUM DISTRIBUTIONS. There are two approaches
to taking required minimum distributions -- "account-based" or "annuity-based."
ACCOUNT-BASED METHOD. If you choose an account-based method, you divide the
value of your traditional IRA as of December 31st of the past calendar year by
a number corresponding to your age from an IRS table. This gives you the
required minimum distribution amount for that particular IRA for that year. If
your spouse is your sole beneficiary and more than 10 years younger than you,
the dividing number you use may be from another IRS table and may produce a
smaller lifetime required minimum distribution amount. Regardless of the table
used, the required minimum distribution amount will vary each year as the
account value, the actuarial present value of additional annuity contract
benefits, if applicable, and the divisor change.
If you initially choose an account-based method, you may later apply your
traditional IRA funds to a life annuity-based payout with any certain period
not exceeding remaining life expectancy, determined in accordance with IRS
tables.
ANNUITY-BASED METHOD. If you choose an annuity-based method, you do not have to
do annual calculations. You apply the account value to an annuity payout for
your life or the joint lives of you and a designated beneficiary or for a
period certain not extending beyond applicable life expectancies, determined in
accordance with IRS tables.
DO YOU HAVE TO PICK THE SAME METHOD TO CALCULATE YOUR REQUIRED MINIMUM
DISTRIBUTIONS FOR ALL OF YOUR TRADITIONAL IRAS AND OTHER RETIREMENT PLANS? No.
If you want, you can choose a different method for each of your traditional
IRAs and other retirement plans. For example, you can choose an annuity payout
from one IRA, a different annuity payout from a qualified plan and an
account-based annual withdrawal from another IRA.
WILL WE PAY YOU THE ANNUAL AMOUNT EVERY YEAR FROM YOUR TRADITIONAL IRA BASED ON
THE METHOD YOU CHOOSE? We will only pay you automatically if you affirmatively
select an annuity payout option or an account-based withdrawal option such as
our "automatic required minimum distribution (RMD) service." Even if you do not
enroll in our service, we will calculate the amount of the required minimum
distribution withdrawal for you, if you so request in writing. However, in that
case you will be responsible for asking us to pay the required minimum
distribution withdrawal to you.
Also, if you are taking account-based withdrawals from all of your traditional
IRAs, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain. You can add these required minimum
distribution amount calculations together. As long as the total amount you take
out every year satisfies your overall traditional IRA required minimum
distribution amount, you may choose to take your annual required minimum
distribution from any one or more traditional IRAs that you own.
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WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required minimum distribution amounts you take from your qualified plans
to the amounts you have to take from your traditional IRAs and vice versa.
WHAT IF YOU TAKE LESS THAN YOU NEED TO FOR ANY YEAR? Your IRA could be
disqualified, and you could have to pay tax on the entire value. Even if your
IRA is not disqualified, you could have to pay a 50% penalty tax on the
shortfall (required amount for traditional IRAs less amount actually taken). It
is your responsibility to meet the required minimum distribution rules. We will
remind you when our records show that you are within the age group which must
take lifetime required minimum distributions. If you do not select a method
with us, we will assume you are taking your required minimum distribution from
another traditional IRA that you own.
WHAT ARE THE REQUIRED MINIMUM DISTRIBUTION PAYMENTS AFTER YOU DIE? These could
vary depending on whether you die before or after your Required Beginning Date
for lifetime required minimum distribution payments, and the status of your
beneficiary. The following assumes that you have not yet elected an
annuity-based payout at the time of your death. If you elect an annuity-based
payout, payments (if any) after your death must be made at least as rapidly as
when you were alive.
INDIVIDUAL BENEFICIARY. Regardless of whether your death occurs before or after
your Required Beginning Date, an individual death beneficiary calculates annual
post-death required minimum distribution payments based on the beneficiary's
life expectancy using the "term certain method." That is, he or she determines
his or her life expectancy using the IRS-provided life expectancy tables as of
the calendar year after the owner's death and reduces that number by one each
subsequent year.
If you die before your Required Beginning Date, the rules permit any individual
beneficiary, including a spousal beneficiary, to elect instead to apply the
"5-year rule." Under this rule, instead of annual payments having to be made
beginning with the first in the year following the owner's death, the entire
account must be distributed by the end of the calendar year which contains the
fifth anniversary of the owner's death. No distribution is required before that
fifth year.
SPOUSAL BENEFICIARY. If you die after your Required Beginning Date, and your
death beneficiary is your surviving spouse, your spouse has a number of
choices. Post-death distributions may be made over your spouse's single life
expectancy. Any amounts distributed after that surviving spouse's death are
made over the spouse's life expectancy calculated in the year of his/her death,
reduced by one for each subsequent year. In some circumstances, your surviving
spouse may elect to become the owner of the traditional IRA and halt
distributions until he or she reaches age 70 1/2, or roll over amounts from
your traditional IRA into his/her own traditional IRA or other eligible
retirement plan.
If you die before your Required Beginning Date, and the death beneficiary is
your surviving spouse, the rules permit the spouse to delay starting payments
over his/her life expectancy until the year in which you would have attained
age 70 1/2.
NON-INDIVIDUAL BENEFICIARY. If you die after your Required Beginning Date, and
your death beneficiary is a non-individual, such as the estate, the rules
permit the beneficiary to calculate post-death required minimum distribution
amounts based on the owner's life expectancy in 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.
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Please note that it is your responsibility to claim the penalty exception on
your own income tax return and to document eligibility for the exception to the
IRS.
To meet the substantially equal periodic payments exception, you could elect
the substantially equal withdrawals option. See "Substantially equal
withdrawals" under "Accessing your money" earlier in this Prospectus. We will
calculate the substantially equal payments, using your choice of IRS-approved
methods we offer. Although substantially equal withdrawals are not subject to
the 10% penalty tax, they are taxable as discussed in "Withdrawals, payments
and transfers of funds out of traditional IRAs" earlier in this section. Once
substantially equal withdrawals begin, the distributions should not be stopped
or changed until after the later of your reaching age 59 1/2 or five years
after the date of the first distribution, or the penalty tax, including an
interest charge for the prior penalty avoidance, may apply to all prior
distributions under either option. Also, it is possible that the IRS could view
any additional withdrawal or payment you take from, or any additional
contributions or transfers you make to, your contract as changing your pattern
of substantially equal withdrawals for purposes of determining whether the
penalty applies.
Making additional contributions to the contract is treated as changing the
pattern of withdrawals. It does not matter whether the additional contributions
are made by direct transfer or rollover; nor does it matter if they are made to
the Investment account or the Protected Benefit account. Because the penalty
exception method does not permit additional contributions or payment changes to
restore any benefit base under the contract, you and your tax adviser should
consider carefully whether you should elect the Substantially equal withdrawals
option or any other method of penalty exception withdrawals if you have
allocated, or intend to allocate, amounts to the Protected Benefit account
value after starting Substantially equal withdrawals.
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 ($54,000 after cost-of-living adjustment for
2017). 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 Retirement Cornerstone(R) Series SEP-IRA
contract.
Participating employees who are considering the purchase of a Retirement
Cornerstone(R) Series SEP-IRA contract through a sponsoring employer's SEP plan
contributions should discuss with their employers and their tax advisors that
the Retirement Cornerstone(R) Series SEP-IRA contract is not a model
traditional IRA established on an IRS form. However, AXA Equitable has applied
for, and received an opinion letter from the IRS that the Retirement
Cornerstone(R) Series SEP-IRA contract is acceptable as to form as an IRA and
therefore, it may be used in connection with an employer's SEP plan established
using an IRS Form 5305-SEP.
AXA Equitable requires a minimum contribution to purchase a SEP-IRA contract in
Series CP 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 Retirement Cornerstone(R) Series SEP-IRA contract do not permit
the Retirement Cornerstone(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 Retirement Cornerstone(R) Series SEP-IRA
contract. However, if the Retirement Cornerstone(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 Retirement
Cornerstone(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
Retirement Cornerstone(R) Series SEP-IRA contract does not accept salary
reduction 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 individual
retirement annuities (traditional IRAs)."
The Retirement Cornerstone(R) Series 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
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.. 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 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.
For Retirement Cornerstone(R) Series CP(R) Roth IRA contracts, the initial
contribution must be a direct transfer or rollover 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 2017, 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 age 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, a 403(b) plan
or a governmental employer Section 457(b) plan (direct or 60-day); or
.. from non-Roth accounts under another eligible retirement plan, as described
below under "Conversion rollover contributions to Roth IRAs."
You may make direct transfer contributions to a Roth IRA only from another Roth
IRA.
You may make both Roth IRA to Roth IRA rollover transactions and Roth IRA to
Roth IRA direct transfer transactions. This can be accomplished on a completely
tax-free basis. However, you may make 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
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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 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
includable in income:
.. you are age 59 1/2 or older; or
.. you die; or
.. you become disabled (special federal income tax definition); or
.. your distribution is a "qualified first-time homebuyer distribution"
(special federal income tax definition; $10,000 lifetime total limit for
these distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
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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 includable in your gross income. This may result in tax
being withheld even though the Roth IRA distribution is ultimately not
taxable.
Special withholding rules apply to United States citizens residing outside of
the United States, foreign recipients, and certain U. S. entity recipients
which are treated as foreign because they fail to document their U.S. status
before payment is made. We do not discuss these rules here in detail. However,
we may require additional documentation in the case of payments made to United
States persons living abroad and non-United States persons (including U.S.
entities treated as foreign) prior to processing any requested transaction.
Certain states have indicated that state income tax withholding will also apply
to payments from the contracts made to residents. Generally, an election out of
federal withholding will also be considered an election out of state
withholding. In some states, you may elect out of state withholding, even if
federal withholding applies. In some states, the income tax withholding is
completely independent of
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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 includable in gross income.
As described below, there is no election out of federal income tax withholding
if the payment is an eligible rollover distribution from a qualified plan. If a
non-periodic distribution from a qualified plan is not an eligible rollover
distribution then election out is permitted. If there is no election out, the
10% withholding rate applies.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
The plan administrator is responsible for making all required notifications on
tax matters to plan participants and to the IRS. See Appendix II at the end of
this Prospectus.
MANDATORY WITHHOLDING FROM QUALIFIED PLAN DISTRIBUTIONS
Unless the distribution is directly rolled over to another eligible retirement
plan, eligible rollover distributions from qualified plans are subject to
mandatory 20% withholding. The plan administrator is responsible for
withholding from qualified plan distributions and communicating to the
recipient whether the distribution is an eligible rollover distribution.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 70 for taxes. We
do not now, but may in the future set up reserves for such taxes.
We are entitled to certain tax benefits related to the investment of company
assets, including assets of the separate account. These tax benefits, which may
include the foreign tax credit and the corporate dividends received deduction,
are not passed back to you, since we are the owner of the assets from which tax
benefits may be derived.
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8. More information
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ABOUT SEPARATE ACCOUNT NO. 70
Each variable investment option is a subaccount of Separate Account No. 70. We
established Separate Account No. 70 under special provisions of the New York
Insurance Law. These provisions prevent creditors from any other business we
conduct from reaching the assets we hold in our variable investment options for
owners of our variable annuity contracts. We are the legal owner of all of the
assets in Separate Account No. 70 and may withdraw any amounts that exceed our
reserves and other liabilities with respect to variable investment options
under our contracts. For example, we may withdraw amounts from Separate Account
No. 70 that represent our investments in Separate Account No. 70 or that
represent fees and charges under the contracts that we have earned. Also, we
may, at our sole discretion, invest Separate Account No. 70 assets in any
investment permitted by applicable law. The results of Separate Account
No. 70's operations are accounted for without regard to AXA Equitable's other
operations. The amount of some of our obligations under the contracts is based
on the assets in Separate Account No. 70. However, the obligations themselves
are obligations of AXA Equitable.
Separate Account No. 70 is registered under the Investment Company Act of 1940
and is registered and classified under that act as a "unit investment trust."
The SEC, however, does not manage or supervise AXA Equitable or Separate
Account No. 70. Although Separate Account No. 70 is registered, the SEC does
not monitor the activity of Separate Account No. 70 on a daily basis. AXA
Equitable is not required to register, and is not registered, as an investment
company under the Investment Company Act of 1940.
Each subaccount (variable investment option) within Separate Account No. 70
invests solely in the applicable class of shares issued by the corresponding
Portfolio of the applicable Trust.
We reserve the right subject to compliance with laws that apply:
(1)to add variable investment options to, or to remove variable investment
options from, Separate Account No. 70, or to add other separate accounts;
(2)to combine any two or more variable investment options;
(3)to transfer the assets we determine to be the shares of the class of
contracts to which the contracts belong from any variable investment option
to another variable investment option;
(4)to operate Separate Account No. 70 or any variable investment option as a
management investment company under the Investment Company Act of 1940 (in
which case, charges and expenses that otherwise would be assessed against an
underlying mutual fund would be assessed against Separate Account No. 70 or
a variable investment option directly);
(5)to deregister Separate Account No. 70 under the Investment Company Act of
1940;
(6)to restrict or eliminate any voting rights as to Separate Account No. 70;
(7)to cause one or more variable investment options to invest some or all of
their assets in one or more other trusts or investment companies;
(8)to limit or terminate contributions or transfers into any of the variable
investment options; and
(9)to limit the number of variable investment options you may select.
If the exercise of these rights results in a material change in the underlying
investment of Separate Account No. 70, you will be notified of such exercise,
as required by law.
ABOUT THE TRUSTS
The Trusts are registered under the Investment Company Act of 1940. They are
classified as "open-end management investment companies," more commonly called
mutual funds. Each Trust issues different shares relating to each Portfolio.
The Trusts do not impose sales charges or "loads" for buying and selling their
shares. All dividends and other distributions on the Trusts' shares are
reinvested in full. The Board of Trustees of each Trust serves for the benefit
of each Trust's shareholders. The Board of Trustees may take many actions
regarding the Portfolios (for example, the Board of Trustees can establish
additional Portfolios or eliminate existing Portfolios; change Portfolio
investment objectives; and change Portfolio investment policies and
strategies). In accordance with applicable law, certain of these changes may be
implemented without a shareholder vote and, in certain instances, without
advanced notice. More detailed information about certain actions subject to
notice and shareholder vote for each Trust, and other information about the
Portfolios, including portfolio investment objectives, policies, restrictions,
risks, expenses, its Rule 12b-1 plan and other aspects of its operations,
appears in the prospectuses for each Trust, which generally accompany this
prospectus, or in their respective SAIs, which are available upon request.
ABOUT THE GENERAL ACCOUNT
This contract is offered to customers through various financial institutions,
brokerage firms and their affiliate insurance agencies. No financial
institution, brokerage firm or insurance agency has any liability with respect
to a contract's account value or any Guaranteed benefits with which the
contract was issued. AXA Equitable is solely responsible to the contract owner
for the contract's account value and such Guaranteed benefits. The general
obligations and any Guaranteed benefits under the contract are supported by AXA
Equitable's general account and are subject to AXA Equitable's claims paying
ability. An owner should look to the financial strength of AXA Equitable for
its claims paying ability. Assets in the general account are not segregated for
the exclusive benefit of any particular contract or obligation. General account
assets are also available to the insurer's general creditors and the conduct of
its routine business activities, such as the payment of salaries, rent and
other ordinary business expenses. For more information about AXA Equitable's
financial strength, you may review its financial statements and/or check its
current rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings
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are subject to change and have no bearing on the performance of the variable
investment options. You may also speak with your financial representative. For
Series CP(R) contracts, credits allocated to your account value are funded from
our general account.
The general account is subject to regulation and supervision by the Insurance
Department of the State of New York and to the insurance laws and regulations
of all jurisdictions where we are authorized to do business. Interests under
the contracts in the general account have not been registered and are not
required to be registered under the Securities Act of 1933 because of
exemptions and exclusionary provisions that apply. The general account is not
required to register as an investment company under the Investment Company Act
of 1940 and it is not registered as an investment company under the Investment
Company Act of 1940. The contract is a "covered security" under the federal
securities laws.
We have been advised that the staff of the SEC has not reviewed the portions of
this Prospectus that relate to the general account . The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC TRANSACTIONS
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
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.
We may also require additional information. Until we receive the
Acknowledgement of Receipt Form, (i.e. withdrawals and surrenders) financial
transactions will not be permitted unless you request them in writing, sign the
request and have it signature guaranteed. 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, subsequent contributions may be
transmitted by wire.
AUTOMATIC INVESTMENT PROGRAM
You may use our automatic investment program, or "AIP," to have a specified
amount automatically deducted from a checking account, money market account, or
credit union checking account and contributed as a subsequent contribution into
a contract on a monthly or quarterly basis. AIP is available for NQ,
traditional IRA and Roth IRA contracts. AIP is not available for SEP-IRA, QP or
Inherited IRA Beneficiary Continuation (traditional IRA or Roth IRA) contracts.
The minimum amounts we will deduct are $100 monthly and $300 quarterly. AIP
subsequent contributions may be allocated to any of the variable investment
options, but not to a Special DCA program. You choose the day of the month you
wish to have your account debited. However, you may not choose a date later
than the 28th day of the month. For contracts with a Guaranteed benefit, AIP
contributions with allocations to the Protected Benefit account variable
investment options will be allocated to corresponding Investment account
variable investment options that invest in the same Portfolios after the date
the first withdrawal is taken from the Protected Benefit account.
You may cancel AIP at any time by notifying our processing office. We are not
responsible for any debits made to your account before the time written notice
of cancellation is received at our processing office.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our "business day" is generally any day the New York Stock Exchange ("NYSE") is
open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of
an earlier close of regular trading). A business day does not include a day on
which we are not open due to emergency conditions determined by the Securities
and Exchange Commission. We may also close early due to such emergency
conditions. Contributions will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
.. If your contribution, transfer or any other transaction request containing
all the required information reaches us on any of the following, we will
use the next business day:
-- on a non-business day;
-- after 4:00 p.m. Eastern Time on a business day; or
-- after an early close of regular trading on the NYSE on a business day.
.. If your transaction is set to occur on the same day of the month as the
contract date and that date is the 29th, 30th or 31st of the month, then
the transaction will occur on the 1st day of the next month.
.. When a charge is to be deducted on a contract date anniversary that is a
non-business day, we will deduct the charge on the next business day.
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.. 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 (and Credits, for Series CP(R) contracts only) allocated to
the variable investment options are invested at the unit value next
determined after the receipt of the contribution.
.. Contributions (and Credits, for Series CP(R) contracts only) allocated to
the guaranteed interest option will receive the crediting rate in effect on
that business day for the specified time period.
.. Initial contributions allocated to the account for special dollar cost
averaging receive the interest rate in effect on that business day. At
certain times, we may offer the opportunity to lock in the interest rate
for an initial contribution to be received under Section 1035 exchanges and
trustee to trustee transfers. Your financial professional can provide
information or you can call our processing office.
.. Transfers to or from variable investment options will be made at the unit
value next determined after the receipt of the transfer request.
.. Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
.. For the interest sweep option, the first monthly transfer will occur on the
last business day of the month following the month that we receive your
election form at our processing office.
ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts, we have the right to vote on certain
matters involving the Portfolios, such as:
.. the election of trustees; or
.. the formal approval of independent public accounting firms selected for
each Trust; or
.. any other matters described in the prospectus for each Trust or requiring a
shareholders' vote under the Investment Company Act of 1940.
We will give contract owners the opportunity to instruct us how to vote the
number of shares attributable to their contracts if a shareholder vote is
taken. If we do not receive instructions in time from all contract owners, we
will vote the shares of a Portfolio for which no instructions have been
received in the same proportion as we vote shares of that Portfolio for which
we have received instructions. We will also vote any shares that we are
entitled to vote 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
We rely heavily on interconnected computer systems and digital data to conduct
our variable product business. Because our variable product business is highly
dependent upon the effective operation of our computer systems and those of our
business partners, our business is vulnerable to disruptions from utility
outages, and susceptible to operational and information security risks
resulting from information systems failure (e.g., hardware and software
malfunctions), and cyber-attacks. These risks include, among other things, the
theft, misuse, corruption and destruction of data maintained online or
digitally, interference with or denial of service, attacks on websites and
other operational disruption and unauthorized release of confidential customer
information. Such systems failures and 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 Total account
value. For instance, systems failures and 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
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account unit values, cause the release and possible destruction of confidential
customer or business information, impede order processing, subject us and/or
our service providers and intermediaries to regulatory fines and financial
losses and/or cause reputational damage. Cybersecurity 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. While 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, we take reasonable steps to mitigate these risks and
secure our systems from such failures and attacks.
MISSTATEMENT OF AGE
If the age of any person upon whose life or age a benefit provided under a
Guaranteed benefit has been misstated, any such benefit will be that which
would have been purchased on the basis of the correct age. If that person would
not have been eligible for that Guaranteed benefit at the correct age, (i) the
benefit will be rescinded; (ii) any charges that were deducted for the benefit
will be refunded and applied to the Total account value of the contract, and
(iii) only the death benefit provided by amounts allocated to the Investment
account will apply.
STATUTORY COMPLIANCE
We have the right to change your contract without the consent of any other
person in order to comply with any laws and regulations that apply, including
but not limited to changes in the Internal Revenue Code, in Treasury
Regulations or in published rulings of the Internal Revenue Service and in
Department of Labor regulations.
Any change in your contract must be in writing and made by an authorized
officer of AXA Equitable. We will provide notice of any contract change.
The benefits under your contract will not be less than the minimum benefits
required by any state law that applies.
ABOUT LEGAL PROCEEDINGS
AXA Equitable and its affiliates are parties to various legal proceedings. In
our view, none of these proceedings would be considered material with respect
to a contract owner's interest in Separate Account No. 70, nor would any of
these proceedings be likely to have a material adverse effect upon the Separate
Account, our ability to meet our obligations under the contracts, or the
distribution of the contracts.
FINANCIAL STATEMENTS
The financial statements of Separate Account No. 70, as well as the
consolidated financial statements of AXA Equitable, are in the SAI. The
financial statements of AXA Equitable have relevance to the contracts only to
the extent that they bear upon the ability of AXA Equitable to meet its
obligations under the contracts. The SAI is available free of charge. You may
request one by writing to our processing office or calling 1-800-789-7771.
TRANSFERS OF OWNERSHIP, COLLATERAL ASSIGNMENTS, LOANS AND BORROWING
You can transfer ownership of an NQ contract at any time before annuity
payments begin. We will continue to treat you as the owner until we receive
notification of any change at our processing office.
We may refuse to process a change of ownership of an NQ contract to an entity
without appropriate documentation of status on IRS Form W-9 (or, if IRS Form
W-9 cannot be provided because the entity is not a U.S. entity, on the
appropriate type of Form W-8).
Following a change of ownership, the existing beneficiary designations will
remain in effect until the new owner provides new designations.
Any Guaranteed benefit in effect will generally terminate if you change
ownership of the contract. A Guaranteed benefit will not terminate if the
ownership of the contract is transferred from a non-natural owner to an
individual but the contract will continue to be based on the annuitant's life.
It will also not terminate if you transfer your individually-owned contract to
a trust held for your (or your and your immediate family's) benefit; it will
continue to be based on your life. If you were not the annuitant under the
individually-owned contract, you will become the annuitant when ownership is
changed. Please speak with your financial professional for further information.
For a state-by-state description of all material variations of this contract,
including information regarding the termination of benefits under your
contract, see Appendix V later in this Prospectus.
In general, you cannot assign or transfer ownership of an IRA or QP contract
except by surrender to us. If your individual retirement annuity contract is
held in your custodial individual retirement account, you may only assign or
transfer ownership of such an IRA contract to yourself. Loans are not available
and you cannot assign IRA and QP contracts as security for a loan or other
obligation.
For limited transfers of ownership after the owner's death see "Beneficiary
continuation option" in "Payment of death benefit" earlier in this Prospectus.
You may direct the transfer of the values under your IRA or QP contract to
another similar arrangement under federal income tax rules. 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 your NQ contract.
In certain circumstances, you may collaterally assign all or a portion of the
value of your NQ contract as security for a loan with a third party lender. The
terms of the assignment are subject to our approval. The amount of the
assignment may never exceed your Total account value on the day prior to the
date we receive all necessary paperwork to effect the assignment. Only one
assignment per contract is permitted. You must indicate that you have not
purchased, and will not purchase, any other AXA Equitable (or affiliate's) NQ
deferred annuity contract in the same calendar year that you purchase the
contract.
A collateral assignment does not terminate your benefits under the contract.
However, a collateral assignment will terminate your optional benefits. All
withdrawals, distributions and benefit payments, as well as the exercise of any
benefits, are subject to the assignee's prior approval and payment directions.
We will follow such directions until AXA Equitable receives written
notification satisfactory to us that the assignment has been terminated. If the
owner or beneficiary fails to provide timely notification of the termination,
it is possible that we could pay the assignee more than the amount of the
assignment, or continue paying the assignee pursuant to existing directions
after the collateral assignment has in fact been terminated. Our payment of any
death benefit to the beneficiary will also be subject to the terms of the
assignment until we receive written notification satisfactory to us that the
assignment has been terminated.
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In some cases, an assignment or change of ownership may have adverse tax
consequences. See "Tax information" earlier in this Prospectus.
ABOUT CUSTODIAL IRAS
For certain custodial IRA accounts, after your contract has been issued, we may
accept transfer instructions by telephone, mail, facsimile or electronically
from a broker-dealer, provided that we or your broker-dealer have your written
authorization to do so on file. Accordingly, AXA Equitable will rely on the
stated identity of the person placing instructions as authorized to do so on
your behalf. AXA Equitable will not be liable for any claim, loss, liability or
expenses that may arise out of such instructions. AXA Equitable will continue
to rely on this authorization until it receives your written notification at
its processing office that you have withdrawn this authorization. AXA Equitable
may change or terminate telephone or electronic or overnight mail transfer
procedures at any time without prior written notice and restrict facsimile,
internet, telephone and other electronic transfer services because of
disruptive transfer activity.
HOW DIVORCE MAY AFFECT YOUR GUARANTEED BENEFITS
Our optional benefits do not provide a cash value or any minimum account value.
In the event that you and your spouse become divorced after you purchase a
contract with a Guaranteed benefit, we will not divide the benefit base(s) used
to calculate the benefits as part of the divorce settlement or judgment. As a
result of the divorce, we may be required to withdraw amounts from the
Protected Benefit account to be paid to an ex-spouse. Any such withdrawal will
be considered a withdrawal from the contract even if the withdrawal is made to
fund an AXA Equitable contract owned by your ex-spouse. This means that your
Guaranteed benefit will be reduced and a withdrawal charge may apply.
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, AXA Advisors, 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 contracts and payments it receives for providing
administrative, distribution and other services to the Portfolios. For
information about the fees and charges under the contract, see "Fee table" and
"Charges and expenses" earlier in this Prospectus.
AXA ADVISORS COMPENSATION.
AXA Equitable pays compensation to AXA Advisors based on contributions made on
the contracts sold through AXA Advisors (''contribution-based compensation'').
The contribution-based compensation will generally not exceed 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. 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 contact your financial
professional for information about the compensation he or she receives and any
related incentives, as described immediately below.
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.
AXA Advisors may receive compensation, and, in turn, pay its financial
professionals a portion of such fee, from third party investment advisors to
whom its financial professionals refer customers for professional management of
the assets within their contract.
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DIFFERENTIAL COMPENSATION. In an effort to promote the sale of AXA Equitable
products, AXA Advisors may pay its financial professionals and managerial
personnel a greater percentage of contribution-based compensation and/or
asset-based compensation for the sale of an AXA Equitable contract than it pays
for the sale of a contract or other financial product issued by a company other
than AXA Equitable. AXA Advisors may pay higher compensation on certain
products in a class than others based on a group or sponsored arrangement, or
between older and newer versions or series of the same contract. This practice
is known as providing "differential compensation." Differential compensation
may involve other forms of compensation to AXA Advisors personnel. Certain
components of the compensation paid to managerial personnel are based on
whether the sales involve AXA Equitable contracts. Managers earn higher
compensation (and credits toward awards and bonuses) if the financial
professionals they manage sell a higher percentage of AXA Equitable contracts
than products issued by other companies. Other forms of compensation provided
to its financial professionals include health and retirement benefits, expense
reimbursements, marketing allowances and contribution-based payments, known as
"overrides." For tax reasons, AXA Advisors financial professionals qualify for
health and retirement benefits based solely on their sales of AXA Equitable
contracts and products sponsored by affiliates.
The fact that AXA Advisors financial professionals receive differential
compensation and additional payments may provide an incentive for those
financial professionals to recommend an AXA Equitable contract over a contract
or other financial product issued by a company not affiliated with AXA
Equitable. However, under applicable rules of the FINRA, AXA Advisors financial
professionals may only recommend to you products that they reasonably believe
are suitable for you based on the facts that you have disclosed as to your
other security holdings, financial situation and needs. In making any
recommendation, financial professionals of AXA Advisors may nonetheless face
conflicts of interest because of the differences in compensation from one
product category to another, and because of differences in compensation between
products in the same category. For more information, contact your financial
professional.
AXA DISTRIBUTORS COMPENSATION.
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 professional for
information about the compensation he or she receives and any related
incentives, such as differential compensation paid for various products.
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.
AXA Distributors may pay, out of their 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 such as the Retirement Cornerstone(R) Series contracts 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. The 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, the 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, including the one described in this Prospectus.
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, 2016) received additional payments. These additional payments
ranged from $1,472.14 to $5,557,015.32. AXA Equitable and its affiliates may
also have other business relationships with Selling broker-dealers, which may
provide an incentive for the Selling
104
MORE INFORMATION
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
AXIO
BBVA Compass Investment Solutions, Inc.
Cambridge Investment Research
Capital Investment Group
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.
Farmer's Financial Solution
First Allied Securities Inc.
First Tennessee Brokerage Inc.
Girard Securities, Inc.
Gradient Securities, LLC
H.D. Vest Investment Securities, Inc.
Harbour Investments
Hilltop Securities
Independent Financial Group, LLC
Investors Capital Corporation
Janney Montgomery Scott LLC
Kestra Investments, LLC
Key Investment Services LLC
Ladenburg Thalmann Advisor Network, LLC
Legend Equities
Lincoln Financial Advisors Corp.
Lincoln Financial Services Corp
Lincoln Investment Planning
LPL Financial Corporation
Lucia Securities, LLC
Merrill Lynch Life Agency, Inc.
MetLife Securities, Inc.
Morgan Stanley Smith Barney
Mutual of Omaha Investment Services, Inc.
National Planning Corporation
Parkland Securities, LLC (part of Sigma)
PlanMember
PNC Investments
Primerica Financial Services
Questar Capital Corporation
Raymond James Insurance Group
RBC Capital Markets Corporation
Robert W Baird & Company
Santander Securities Corporation
SIGMA Financial Corporation
Signator Investors, Inc.
Summit Brokerage Services, Inc.
SunTrust Investments
The Advisor Group
U.S. Bancorp Investments, Inc.
UBS Financial Services, Inc.
Valmark Securities, Inc.
Voya Financial Advisors
VSR Financial Services Inc.
Wells Fargo Wealth Brokerage Insurance Agency
105
MORE INFORMATION
Appendix I: Dropping or changing your Guaranteed benefits
--------------------------------------------------------------------------------
PRE-FUNDING DROP OR CHANGE
The following table is designed to show your options if you decide to drop your
Guaranteed benefit(s) prior to the funding of your Protected Benefit account.
In general, you can drop your GMIB and change your Guaranteed minimum death
benefit. However, in general, your Guaranteed minimum death benefit cannot be
dropped or changed without first dropping your GMIB. You may drop the "Greater
of" death benefit without dropping the GMIB only if we exercise our contractual
right to change the fee for the "Greater of" death benefit without a change to
the fee for GMIB. All requests to drop or change a Guaranteed benefit must be
submitted on an administrative form we provide for this specific purpose.
-----------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION PRE-FUNDING DROP OF: YOUR OPTION(S) OR RESULT FOLLOWING THE DROP OR CHANGE
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . You can change your death . You can drop the Highest
.. Return of Principal death benefit to the Highest Anniversary Value death
benefit Anniversary Value death benefit, either
benefit. If you do not pre-funding or
make this change, the post-funding.
Return of Principal death . You can drop the Return
benefit will remain. of Principal death
benefit post-funding only.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . You can keep your Highest . You can drop the Highest
.. Highest Anniversary Value Anniversary Value death Anniversary Value death
death benefit benefit. benefit, either
-or- pre-funding or
. You can change your death post-funding.
benefit to the Return of . You can drop the Return
Principal death benefit. of Principal death
benefit post-funding only.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . The Return of Principal . You can drop the Return
.. Highest Anniversary Value death benefit will of Principal death
death benefit automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . By dropping your GMIB, . You can drop the Highest
.. "Greater of" death benefit you are no longer Anniversary Value death
eligible to elect the benefit, either
"Greater of" death pre-funding or
benefit. post-funding.
. You can change your death . You can drop the Return
benefit to the Highest of Principal death
Anniversary Value death benefit post-funding only.
benefit. If you do not
make this change, the
Return of Principal death
benefit will
automatically become your
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . You can change your death . You can drop the Highest
.. "Greater of" death benefit benefit to the Highest Anniversary Value death
Anniversary Value death benefit, either
benefit. If you do not pre-funding or post-
make this change, the funding.
Return of Principal death . You can drop the Return
benefit will of Principal death
automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
.. GMIB "Greater of" death benefit/(1)/ . You can change your death . You can drop the Highest
.. "Greater of" death benefit benefit to the Highest Anniversary Value death
Anniversary Value death benefit, either
benefit. If you do not pre-funding or post-
make this change, the funding.
Return of Principal death . You can drop the Return
benefit will of Principal death
automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
-----------------------------------------------------------------------------------------------------------------------------
I-1
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
----------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION PRE-FUNDING DROP OF: YOUR OPTION(S) OR RESULT FOLLOWING THE DROP OR CHANGE
----------------------------------------------------------------------------------------------------------------------------
.. Highest Anniversary Value Highest Anniversary Value . The Return of Principal . You can drop the Return
death benefit death benefit death benefit will of Principal death
automatically become your benefit post-funding only.
new Guaranteed minimum
death benefit.
----------------------------------------------------------------------------------------------------------------------------
.. Return of Principal death Not Applicable: The Return of
benefit Principal death benefit cannot
be dropped prior to funding the
Protected Benefit account
----------------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard death RMD Wealth Guard death . You may elect the Return . You can drop the Return
benefit benefit of Principal death of Principal death
benefit or Highest benefit post- funding
Anniversary Value death only.
benefit. . You can drop the Highest
Anniversary Value death
benefit either
pre-funding or
post-funding.
----------------------------------------------------------------------------------------------------------------------------
(1)You may drop the "Greater of" death benefit without dropping the GMIB only
if we exercise our contractual right to change the fee for the "Greater of"
death benefit without a change to the fee for the GMIB. We must receive your
request to drop the "Greater of" death benefit within 30 days of the fee
change notification.
POST-FUNDING DROP
The following table is designed to show your options if you decide to drop your
Guaranteed benefit(s) after you have funded your Protected Benefit account. In
general, you can drop both your GMIB and Guaranteed minimum death benefit or,
in some cases, drop your GMIB and retain your Guaranteed minimum death benefit.
However, in general, your Guaranteed minimum death benefit cannot be dropped
without first dropping your GMIB. You may drop the "Greater of" death benefit
without dropping the GMIB only if we exercise our contractual right to change
the fee for the "Greater of" death benefit without a change to the fee for the
GMIB. All requests to drop a Guaranteed benefit must be submitted on an
administrative form we provide for this specific purpose. Please see "Dropping
or changing your Guaranteed benefits" in "Contract features and benefits" for
information on when you are eligible to drop your Guaranteed benefits after
having funded your Protected Benefit account.
------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION POST-FUNDING DROP OF:/(1)/ YOUR OPTION(S) OR RESULT FOLLOWING THE DROP
------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . The Return of Principal . You can drop the Return
.. Return of Principal death death benefit will remain of Principal death
benefit in effect. benefit by notifying us
and taking a full
withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . Your Guaranteed benefits Not Applicable.
.. Return of Principal death will terminate by
benefit notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . Your Highest Anniversary . You can drop the Highest
.. Highest Anniversary Value Value death benefit Anniversary Value death
death benefit remains in effect. benefit by notifying us
and taking a full
withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------
I-2
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
------------------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION POST-FUNDING DROP OF:/(1)/ YOUR OPTION(S) OR RESULT FOLLOWING THE DROP
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
.. GMIB Both benefits . Your Guaranteed benefits Not Applicable.
.. Highest Anniversary Value will terminate by
death benefit notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
.. GMIB GMIB . By dropping your GMIB, . You can drop the Return
.. "Greater of" death benefit you are no longer of Principal death
eligible to elect the benefit at a later date.
"Greater of" death
benefit.
. The Return of Principal
death benefit will become
your new Guaranteed
minimum death benefit.
The Return of Principal
benefit base will equal
all contributions and
transfers to your
Protected Benefit
account, adjusted for
withdrawals on a pro rata
basis.
------------------------------------------------------------------------------------------------------------------------------
.. GMIB . Your Guaranteed benefits Not Applicable.
.. "Greater of" death benefit Both benefits will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
.. GMIB . The Return of Principal . You can drop the Return
.. "Greater of" death benefit "Greater of" death benefit/(2)/ death benefit will of Principal death
automatically become your benefit at a later date.
new Guaranteed minimum
death benefit.
------------------------------------------------------------------------------------------------------------------------------
.. Highest Anniversary Value Highest Anniversary Value . Your Guaranteed benefit Not Applicable.
death benefit death benefit will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
.. Return of Principal death Return of Principal death . Your Guaranteed benefit Not Applicable.
benefit benefit will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
value or making a
one-time transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
------------------------------------------------------------------------------------------------------------------------------
I-3
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
------------------------------------------------------------------------------------------------------------------
GUARANTEED BENEFIT
COMBINATION POST-FUNDING DROP OF:/(1)/ YOUR OPTION(S) OR RESULT FOLLOWING THE DROP
------------------------------------------------------------------------------------------------------------------
RMD Wealth Guard death RMD Wealth Guard death . Your Guaranteed benefit . Not applicable.
benefit benefit will terminate by
notifying us and taking a
full withdrawal of your
Protected Benefit account
or making a one-time
transfer to the
Investment account
variable investment
options and the
guaranteed interest
option.
. Your death benefit will
be equal to the return of
your account value.
------------------------------------------------------------------------------------------------------------------
(1)When a Guaranteed benefit (other than the Return of Principal death benefit)
is dropped on any date other than a contract date anniversary, we will
deduct a pro rata portion of the charge for that year.
(2)You may drop the "Greater of" death benefit without dropping the GMIB only
if we exercise our contractual right to change the fee for the "Greater of"
death benefit without a change to the fee for the GMIB. We must receive your
request to drop the "Greater of" death benefit within 30 days of the fee
change notification.
I-4
APPENDIX I: DROPPING OR CHANGING YOUR GUARANTEED BENEFITS
Appendix II: Purchase considerations for QP contracts
--------------------------------------------------------------------------------
Trustees who are considering the purchase of a Retirement Cornerstone(R) Series
contract should discuss with their tax and ERISA advisers whether this is an
appropriate investment vehicle for the employer's plan. The QP contract and
this Prospectus should be reviewed in full, and the following factors, among
others, should be noted. Trustees should consider whether the plan provisions
permit the investment of plan assets in the QP contract, the distribution of
such an annuity, the purchase of the Guaranteed benefits, and the payment of
death benefits in accordance with the requirements of the federal income tax
rules. Assuming continued plan qualification and operation, earnings on
qualified plan assets will accumulate value on a tax-deferred basis even if the
plan is not funded by the Retirement Cornerstone(R) Series QP contract or
another annuity contract. Therefore, the plan trust should purchase a
Retirement Cornerstone(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. There are significant issues in the purchase of a Retirement
Cornerstone(R) Series contract in a defined benefit plan.
This QP contract accepts only transfer contributions from other investments
within an existing qualified plan trust. We will not accept ongoing payroll
contributions or contributions directly from the employer. For 401(k) plans, no
employee after-tax contributions are accepted. A "designated Roth contribution
account" is not available in the QP contract. Checks written on accounts held
in the name of the employer instead of the plan or the trust will not be
accepted. Only one additional transfer contribution may be made per contract
year.
If amounts attributable to an excess or mistaken contribution must be
withdrawn, either or both of the following may apply: (1) withdrawal charges;
or (2) benefit base adjustments to a Guaranteed benefit. If in a defined
benefit plan the plan's actuary determines that an overfunding in the QPDB
contract has occurred, then any transfers of plan assets out of the QPDB
contract may also result in withdrawal charges or benefit base adjustments on
the amount being transferred.
In order to purchase the QPDB contract for a defined benefit plan, the plan's
actuary will be required to determine a current dollar value of each plan
participant's accrued benefit so that individual contracts may be established
for each plan participant. We do not permit defined contribution or defined
benefit plans to pool plan assets attributable to the accrued benefits of
multiple plan participants.
For defined benefit plans, the maximum percentage of actuarial value of the
plan participant's normal retirement benefit that can be funded by a QPDB
contract is 80%. The total account value under a QPDB contract may at any time
be more or less than the lump sum actuarial equivalent of the accrued benefit
for a defined benefit plan participant. AXA Equitable does not guarantee that
the Total account value under a QPDB contract will at any time equal the
actuarial value of 80% of a participant/employee's accrued benefit.
While the contract is owned by the plan trust, all payments under the contract
will be made to the plan trust owner. If the plan rolls over a contract into an
IRA for the benefit of a former plan participant through a contract conversion,
it is the plan's responsibility to adjust the value of the contract to the
actuarial equivalent of the participant's benefit, prior to the contract
conversion.
AXA Equitable's only role is that of the issuer of the contract. AXA Equitable
is not the plan administrator. AXA Equitable will not perform or provide any
plan recordkeeping services with respect to the QP contracts. The plan's
administrator will be solely responsible for performing or providing for all
such services. There is no loan feature offered under the QP contracts, so if
the plan provides for loans and a participant takes a loan from the plan, other
plan assets must be used as the source of the loan and any loan repayments must
be credited to other investment vehicles and/or accounts available under the
plan. AXA Equitable will never make payments under a QP contract to any person
other than the plan trust owner.
Given that required minimum distributions ("RMDs") must generally commence from
the plan for annuitants after age 70 1/2, trustees should consider the
following in connection with the GMIB:
.. whether RMDs the plan administrator must make under QP contracts would
cause withdrawals to be treated as Excess withdrawals and reduce the value
of the Guaranteed benefits;
.. that provisions in the Treasury Regulations on RMDs require that the
actuarial present value of additional annuity contract benefits be added to
the dollar amount credited for purposes of calculating RMDs. This could
increase the amounts required to be distributed; and
.. that if the Protected Benefit account value goes to zero as provided under
the contract, resulting payments will be made to the plan trust and that
portion of the Retirement Cornerstone(R) Series contract may not be
rollover eligible.
For QPDC contracts only: Withdrawals from your Protected Benefit account reduce
your RMD Wealth Guard benefit base on a pro rata basis (including any
applicable withdrawal charges), until the QPDC contract is converted to an IRA.
You should not elect the RMD Wealth Guard death benefit under a QPDC contract
unless you intend to convert to an IRA prior to taking RMDs.
Finally, because the method of purchasing the QP contract, including the large
initial contribution, and the features of the QP contract may appeal more to
plan participants/employees who are older and tend to be highly paid, and
because certain features of the QP contract are available only to plan
participants/employees who meet certain minimum and/or maximum age
requirements, plan trustees should discuss with their advisers whether the
purchase of the QP contract would cause the plan to engage in prohibited
discrimination in contributions, benefits or otherwise.
II-1
APPENDIX II: PURCHASE CONSIDERATIONS FOR QP CONTRACTS
Appendix III: Guaranteed benefit base examples
--------------------------------------------------------------------------------
Assuming $100,000 is invested in the Protected Benefit investment options, with
no additional contributions, no transfers and no withdrawals, the Guaranteed
minimum death benefit base and Guaranteed minimum income benefit base for an
owner age 60 would be calculated as follows:
----------------------------------------------------------------------------------------------------------------
GUARANTEED
MINIMUM
GUARANTEED MINIMUM DEATH BENEFIT INCOME BENEFIT
-------------------------------- --------------
HIGHEST
ANNIVERSARY
PROTECTED VALUE TO ROLL-UP TO
END OF BENEFIT RETURN OF RMD WEALTH AGE 85 AGE 80 ''GREATER
CONTRACT ACCOUNT PRINCIPAL GUARD DEATH BENEFIT BENEFIT OF'' BENEFIT GMIB BENEFIT
YEAR VALUE BENEFIT BASE BENEFIT BASE BASE BASE BASE BASE
----------------------------------------------------------------------------------------------------------------
1 $103,000 $100,000/(1)/ $103,000/(2)/ $103,000/(4)/ $104,000 $104,000/(7)/ $104,000
----------------------------------------------------------------------------------------------------------------
2 $107,120 $100,000/(1)/ $107,120/(2)/ $107,120/(4)/ $108,160 $108,160/(7)/ $108,160
----------------------------------------------------------------------------------------------------------------
3 $113,547 $100,000/(1)/ $113,547/(2)/ $113,547/(4)/ $113,547/(6)/ $113,547/(7)/ $113,547
----------------------------------------------------------------------------------------------------------------
4 $120,360 $100,000/(1)/ $120,360/(2)/ $120,360/(4)/ $120,360/(6)/ $120,360/(7)/ $120,360
----------------------------------------------------------------------------------------------------------------
5 $128,785 $100,000/(1)/ $128,785/(2)/ $128,785/(4)/ $128,785/(6)/ $128,785/(7)/ $128,785
----------------------------------------------------------------------------------------------------------------
6 $126,210 $100,000/(1)/ $128,785/(3)/ $128,785/(5)/ $133,937 $133,937/(7)/ $133,937
----------------------------------------------------------------------------------------------------------------
7 $128,734 $100,000/(1)/ $128,785/(3)/ $128,785/(5)/ $139,294 $139,294/(7)/ $139,294
----------------------------------------------------------------------------------------------------------------
PROTECTED BENEFIT ACCOUNT VALUE
The Protected Benefit account values for contract years 1 through 7 are based
on hypothetical rates of return of 3.00%, 4.00%, 6.00%, 6.00%, 7.00%, (2.00)%,
and 2.00%, respectively. We are using these rates solely to illustrate how the
benefit is calculated. The rates of return bear no relationship to past or
future investment results.
For example, at the end of contract year 1, the Protected Benefit account value
equals $103,000
Calculated as follows: $100,000 x (1+3.00%) = $103,000
Your applicable death benefit in connection with the Protected Benefit variable
investment options is equal to the Protected Benefit account value or the
Guaranteed minimum death benefit base, if greater.
GUARANTEED MINIMUM INCOME BENEFIT
GMIB BENEFIT BASE
The example assumes no withdrawals under the contract, therefore the Deferral
Roll-up rate would apply. At the end of contract year 1, the GMIB benefit base
is equal to the initial contribution to the Protected Benefit account,
multiplied by [1+ the Deferral Roll-up rate of 4.00%]. For contract years 2, 6
and 7, the GMIB benefit base is equal to the previous year's GMIB benefit base
multiplied by [1+ the Deferral Roll-up rate of 4.00%]. At the end of contract
years 3 through 5, the GMIB benefit base is reset to the current Protected
Benefit account value.
For example:
.. At the end of contract year 2, the GMIB benefit base equals $108,160
Calculated as follows: $104,000 x (1+4.00%) = $108,160
.. At the end of contract year 4, the GMIB benefit base equals $120,360
The GMIB benefit base is being 'reset' to equal the Protected Benefit
account value of $120,360
GUARANTEED MINIMUM DEATH BENEFIT
RETURN OF PRINCIPAL BENEFIT BASE
(1)At the end of contract years 1 through 7, the Return of Principal death
benefit base is equal to the initial contribution to the Protected Benefit
account variable investment options.
III-1
APPENDIX III: GUARANTEED BENEFIT BASE EXAMPLES
RMD WEALTH GUARD BENEFIT BASE
(2)At the end of contract years 1 through 5, the RMD Wealth Guard death benefit
base is equal to the current Protected Benefit account value.
For example:
. At the end of contract year 2, the RMD Wealth Guard death benefit base
equals the Protected Benefit account value of $107,120.
(3)At the end of contract years 6 and 7, the RMD Wealth Guard death benefit
base is equal to the RMD Wealth Guard death benefit base at the end of the
prior year since it is higher than the current Protected Benefit account
value.
For example:
. At the end of contract year 6, the RMD Wealth Guard death benefit base
equals $128,785 or the RMD Wealth Guard death benefit base at the end of
year 5.
HIGHEST ANNIVERSARY VALUE BENEFIT BASE
(4)At the end of contract years 1 through 5, the Highest Anniversary Value
benefit base is equal to the current Protected Benefit account value.
For example:
. At the end of contract year 2, the Highest Anniversary Value benefit base
equals the Protected Benefit account value of $107,120
(5)At the end of contract years 6 and 7, the benefit base is equal to the
Highest Anniversary Value benefit base at the end of the prior year since it
is higher than the current Protected Benefit account value.
For example:
. At the end of contract year 6, Highest Anniversary Value benefit base
equals $128,785 or the Highest Anniversary Value benefit base at the end
of year 5.
ROLL-UP TO AGE 80 BENEFIT BASE
The example assumes no withdrawals under the contract, therefore the Deferral
Roll-up rate would apply. The Deferral Roll-up rate for the Roll-up to age 80
benefit base is assumed to be the Deferral Roll-up rate, which is 4.00%. At the
end of contract year 1, the Roll-up to age 80 benefit base is equal to the
initial contribution to the Protected Benefit account, multiplied by [1 + the
Deferral Roll-up rate of 4.00%]. At the end of contract years 2, 6 and 7, the
Roll-up to age 80 benefit base is equal to the previous year's Roll-up to age
80 benefit base, multiplied by [1 + the Deferral Roll-up rate of 4.00%]. At the
end of contract years 3 through 5, the Roll-up to age 80 benefit base is reset
to the current Protected Benefit account value.
For example:
. At the end of contract year 2, Roll-up to age 80 benefit base equals
$108,160
Calculated as follows: $104,000 x (1+4.00%) = $108,160
(6)At the end of contract year 4, the Roll-up to age 80 benefit base is reset
to the current account value.
. At the end of contract year 4, Roll-up to age 80 benefit base equals
$120,360
The GMIB benefit base is being "reset" to equal the Protected Benefit
account value of $120,360
"GREATER OF" DEATH BENEFIT BASE
The "Greater of" death benefit base is the greater of (i) the Roll-up to age 80
benefit base, and (ii) the Highest Anniversary Value benefit base.
(7)At the end of contract years 1 through 7, the benefit base is based on the
Roll-Up to age 80 benefit base.
For example:
. At the end of contract year 6, Greater of Death Benefit Base equals the
Roll-Up to age 80 benefit base of $133,937
III-2
APPENDIX III: GUARANTEED BENEFIT BASE EXAMPLES
Appendix IV: Hypothetical illustrations
--------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account values (Investment
account value and Protected Benefit account value), cash value and the values
of the "Greater of" death benefit, the Guaranteed minimum income benefit
("GMIB"), and the Annual withdrawal amount, under certain hypothetical
circumstances for the Retirement Cornerstone(R) Series contracts (Series B and
Series CP(R)). 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. Also, the tables illustrate that $60,000 is allocated to the
Protected Benefit account variable investment options, and $40,000 is allocated
to the Investment account variable investment options. The amounts shown are
for the beginning of each contract year and assume that all of the account
values are invested in Portfolios that achieve investment returns at constant
gross annual rates of 0% and 6% (i.e., before any investment management fees,
12b-1 fees or other expenses are deducted from the underlying Portfolio
assets). After the deduction of the arithmetic average of the investment
management fees, 12b-1 fees and other expenses of all of the underlying
portfolios (as described below), the corresponding net annual rates of return
would be (2.6)% and 3.4% for the Series B Protected Benefit account variable
investment options and (2.48)% and 3.52% for the Series B Investment account
variable investment options; (2.95)% and 3.05% for the Series CP Protected
Benefit account variable investment options and (2.83)% and 3.17%, for the
Investment account variable investment options at the 0% and 6% gross annual
rates, respectively.
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your Protected
Benefit account value annually for the "Greater of" death benefit and GMIB
features, as well as the annual administrative charge. If the net annual rates
of return did reflect these charges, the net annual rates of return shown would
be lower; however, the values shown in the following tables reflect the
following contract charges: the "Greater of" death benefit charge, the GMIB
charge, any applicable administrative charge and withdrawal charge. Please note
that charges for the "Greater of" death benefit and GMIB are always deducted
from the Protected Benefit account value.
The values shown under "Next Year's Annual withdrawal amount" for ages 70
through 95 reflect the Annual withdrawal amount available without reducing the
"Greater of" death benefit base or GMIB benefit base. A "0" under the Protected
Benefit account value column at age 95 indicates that the "Greater of" death
benefit has terminated due to insufficient account value. However, the Lifetime
GMIB payments under the GMIB have begun, and the owner is receiving lifetime
payments.
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 0.49% for the Protected Benefit
account variable investment options (for each Series) and of 0.60% for the
Investment account variable investment options (for each Series), (2) an
assumed average asset charge for all other expenses of the underlying
portfolios equivalent to an effective annual rate of 0.56% for the Protected
Benefit account variable investment options (for each Series) and 0.33% for the
Investment account variable investment options (for each Series) and (3) 12b-1
fees equivalent to an effective annual rate of 0.25% for the Protected Benefit
account variable investment options (for each Series) and 0.25% for the
Investment account variable investment options (for each Series). These rates
are the arithmetic average for all Portfolios that are available as investment
options. In other words, they are based on the hypothetical assumption that
account values are allocated equally among the Protected Benefit account
variable investment options and Investment account variable investment options,
respectively. The actual rates associated with any contract will vary depending
upon the actual allocation of the Total account value among the investment
options. These rates do not reflect 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.
Because your circumstances will no doubt differ from those in the illustrations
that follow, values under your contract will differ, in most cases
substantially. Please note that in certain states, we apply annuity purchase
factors that are not based on the sex of the annuitant. Upon request, we will
furnish you with a personalized illustration.
IV-1
APPENDIX IV: HYPOTHETICAL ILLUSTRATIONS
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE - SERIES B
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED MINIMUM INCOME BENEFIT - MULTI YEAR LOCK
-----------------------------------------------------------------------------------------------------------
PROTECT GUARANTEE
------- ---------
PROTECTED NEXT YEAR'S
CONTRACT INVESTMENT BENEFIT "GREATER OF" GMIB BENEFIT ANNUAL WITHDRAWAL
AGE YEAR ACCOUNT VALUE ACCOUNT VALUE CASH VALUE/(+)/ DEATH BENEFIT BASE AMOUNT
-----------------------------------------------------------------------------------------------------------
0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
-----------------------------------------------------------------------------------------------------------
65 0 40,000 40,000 60,000 60,000 93,000 93,000 60,000 60,000 60,000 60,000 0 0
-----------------------------------------------------------------------------------------------------------
66 1 39,008 41,408 57,005 60,605 89,013 95,013 62,400 62,400 62,400 62,400 2,496 2,496
-----------------------------------------------------------------------------------------------------------
67 2 38,041 42,866 54,030 61,173 85,071 97,038 64,896 64,896 64,896 64,896 2,596 2,596
-----------------------------------------------------------------------------------------------------------
68 3 37,097 44,374 51,073 61,700 82,170 100,075 67,492 67,492 67,492 67,492 2,700 2,700
-----------------------------------------------------------------------------------------------------------
69 4 36,177 45,936 48,131 62,184 78,308 102,120 70,192 70,192 70,192 70,192 2,808 2,808
-----------------------------------------------------------------------------------------------------------
70 5 35,280 47,553 45,200 62,619 75,480 105,172 72,999 72,999 72,999 72,999 2,920 2,920
-----------------------------------------------------------------------------------------------------------
71 6 34,405 49,227 42,279 63,002 73,684 109,229 75,919 75,919 75,919 75,919 3,037 3,037
-----------------------------------------------------------------------------------------------------------
72 7 33,552 50,960 39,364 63,328 71,916 113,288 78,956 78,956 78,956 78,956 3,158 3,158
-----------------------------------------------------------------------------------------------------------
73 8 32,720 52,754 36,452 63,592 69,171 116,346 82,114 82,114 82,114 82,114 3,285 3,285
-----------------------------------------------------------------------------------------------------------
74 9 31,908 54,611 33,540 63,790 65,448 118,401 85,399 85,399 85,399 85,399 3,416 3,416
-----------------------------------------------------------------------------------------------------------
75 10 31,117 56,533 30,625 63,917 61,742 120,450 88,815 88,815 88,815 88,815 3,553 3,553
-----------------------------------------------------------------------------------------------------------
80 15 27,415 67,208 15,899 63,263 43,314 130,471 108,057 108,057 108,057 108,057 4,322 4,322
-----------------------------------------------------------------------------------------------------------
85 20 24,177 79,900 1,380 60,651 25,556 140,551 108,057 108,057 131,467 131,467 5,259 5,259
-----------------------------------------------------------------------------------------------------------
90 25 21,320 94,988 0 55,945 21,320 150,933 0 108,057 0 159,950 *$7,047 6,398
-----------------------------------------------------------------------------------------------------------
95 30 18,801 112,924 0 48,413 18,801 161,338 0 108,057 0 194,604 7,047 **$13,474
-----------------------------------------------------------------------------------------------------------
(+)The Cash Values shown are equal to the Total account value, less any
applicable withdrawal charges.
* Payments of $7,047 will continue as lifetime payments
** Payments of at least $13,474 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
WITH INVESTMENT PERFORMANCE ACCOUNT VALUE, INVESTMENT PERFORMANCE ACCOUNT
VALUE, CASH VALUE AND GUARANTEED BENEFITS FOR A CONTRACT WOULD BE DIFFERENT
FROM THE ONES SHOWN IF THE ACTUAL GROSS RATE OF INVESTMENT RETURN AVERAGED 0%
OR 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL CONTRACT YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED
OVER ANY PERIOD OF TIME. IN FACT, FOR ANY GIVEN PERIOD OF TIME, THE INVESTMENT
RESULTS COULD BE NEGATIVE.
IV-2
APPENDIX IV: HYPOTHETICAL ILLUSTRATIONS
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE - SERIES CP
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED MINIMUM INCOME BENEFIT - MULTI YEAR LOCK
-----------------------------------------------------------------------------------------------------------
PROTECT GUARANTEE
------- ---------
PROTECTED NEXT YEAR'S
CONTRACT INVESTMENT BENEFIT "GREATER OF" GMIB BENEFIT ANNUAL WITHDRAWAL
AGE YEAR ACCOUNT VALUE ACCOUNT VALUE CASH VALUE/(+)/ DEATH BENEFIT BASE AMOUNT
-----------------------------------------------------------------------------------------------------------
0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
-----------------------------------------------------------------------------------------------------------
65 0 41,200 41,200 61,800 61,800 95,000 95,000 60,000 60,000 60,000 60,000 0 0
-----------------------------------------------------------------------------------------------------------
66 1 40,034 42,506 58,542 62,250 90,576 96,756 62,400 62,400 62,400 62,400 2,496 2,496
-----------------------------------------------------------------------------------------------------------
67 2 38,901 43,853 55,322 62,656 86,223 98,509 64,896 64,896 64,896 64,896 2,596 2,596
-----------------------------------------------------------------------------------------------------------
68 3 37,800 45,244 52,138 63,014 82,938 101,258 67,492 67,492 67,492 67,492 2,700 2,700
-----------------------------------------------------------------------------------------------------------
69 4 36,730 46,678 48,985 63,322 79,716 104,000 70,192 70,192 70,192 70,192 2,808 2,808
-----------------------------------------------------------------------------------------------------------
70 5 35,691 48,158 45,861 63,574 76,552 106,732 72,999 72,999 72,999 72,999 2,920 2,920
-----------------------------------------------------------------------------------------------------------
71 6 34,681 49,684 42,762 63,767 73,443 109,451 75,919 75,919 75,919 75,919 3,037 3,037
-----------------------------------------------------------------------------------------------------------
72 7 33,699 51,259 39,685 63,896 70,384 112,155 78,956 78,956 78,956 78,956 3,158 3,158
-----------------------------------------------------------------------------------------------------------
73 8 32,746 52,884 36,625 63,956 67,371 114,840 82,114 82,114 82,114 82,114 3,285 3,285
-----------------------------------------------------------------------------------------------------------
74 9 31,819 54,560 33,581 63,943 64,400 117,503 85,399 85,399 85,399 85,399 3,416 3,416
-----------------------------------------------------------------------------------------------------------
75 10 30,919 56,290 30,547 63,850 61,466 120,140 88,815 88,815 88,815 88,815 3,553 3,553
-----------------------------------------------------------------------------------------------------------
80 15 26,754 65,796 15,427 61,998 42,181 127,794 108,057 108,057 108,057 108,057 4,322 4,322
-----------------------------------------------------------------------------------------------------------
85 20 23,173 76,907 810 58,021 23,983 134,928 108,057 108,057 131,467 131,467 5,259 5,259
-----------------------------------------------------------------------------------------------------------
90 25 20,070 89,894 0 51,791 20,070 141,686 0 108,057 0 159,950 *$7,047 6,398
-----------------------------------------------------------------------------------------------------------
95 30 17,383 105,075 0 42,595 17,383 147,670 0 108,057 0 194,604 7,047 **$13,474
-----------------------------------------------------------------------------------------------------------
(+)The Cash Values shown are equal to the Total account value, less any
applicable withdrawal charges.
* Payments of $7,047 will continue as lifetime payments
** Payments of at least $13,474 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
WITH INVESTMENT PERFORMANCE ACCOUNT VALUE, INVESTMENT PERFORMANCE ACCOUNT
VALUE, CASH VALUE AND GUARANTEED BENEFITS FOR A CONTRACT WOULD BE DIFFERENT
FROM THE ONES SHOWN IF THE ACTUAL GROSS RATE OF INVESTMENT RETURN AVERAGED 0%
OR 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL CONTRACT YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED
OVER ANY PERIOD OF TIME. IN FACT, FOR ANY GIVEN PERIOD OF TIME, THE INVESTMENT
RESULTS COULD BE NEGATIVE.
IV-3
APPENDIX IV: HYPOTHETICAL ILLUSTRATIONS
Appendix V: State contract availability and/or variations of certain features
and benefits
--------------------------------------------------------------------------------
The following information is a summary of the states where the Retirement
Cornerstone(R) Series contracts or certain features and/or benefits are either
not available as of the date of this Prospectus or vary from the contract's
features and benefits as previously described in this Prospectus. Certain
features and/or benefits may have been approved in your state after your
contract was issued and cannot be added. Please contact your financial
professional for more information about availability in your state.
STATES WHERE CERTAIN RETIREMENT CORNERSTONE(R) SERIES CONTRACTS' FEATURES
AND/OR BENEFITS ARE NOT AVAILABLE OR VARY:
--------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
--------------------------------------------------------------------------------------
ALABAMA See "Your right to cancel within a certain If you reside in the state of
number of days" in "Contract features Alabama, you may cancel your
and benefits" variable annuity contract and
return it to us within 15
days from the date you
received it. Your refund will
equal your account value
under the contract on the day
we receive notification to
cancel the contract.
--------------------------------------------------------------------------------------
CALIFORNIA See "We require that the following types You are not required to use
of communications be on specific forms our forms when making a
we provide for that purpose (and transaction request. If a
submitted in the manner that the forms written request contains all
specify)" in "Who is AXA Equitable" and the information required to
"Effect of Excess withdrawals" in process the request, we will
"Contract features and benefits" honor it. Although you are
not required to use our
withdrawal request form, if
you do not specify whether we
should process a withdrawal
that results in an Excess
withdrawal, and the
transaction results in an
Excess withdrawal, we will
not process that request.
See "Your right to cancel within a certain If you reside in the state of
number of days" in "Contract features California and you are age 60
and benefits" or older at the time the
contract is issued, you may
return your Retirement
Cornerstone(R) Series
contract within 30 days from
the date that you receive it
and receive a refund as
described below. This is also
referred to as the ''free
look'' period.
If you allocate your entire
initial contribution to the
EQ/Money Market variable
investment option (and/or
guaranteed interest option,
if available), the amount of
your refund will be equal to
your contribution, unless you
make a transfer, in which
case the amount of your
refund will be equal to your
Total account value on the
date we receive your request
to cancel at our processing
office. This amount could be
less than your initial
contribution. If you allocate
any portion of your initial
contribution to the variable
investment options (other
than the EQ/Money Market
variable investment option),
your refund will be equal to
your Total account value on
the date we receive your
request to cancel at our
processing office.
"RETURN OF CONTRIBUTION" FREE
LOOK TREATMENT AVAILABLE
THROUGH CERTAIN SELLING
BROKER-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.
--------------------------------------------------------------------------------------
V-1
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
---------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
---------------------------------------------------------------------------------------
CALIFORNIA If you choose the "return of
(CONTINUED) 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.
Any transfers made prior to
the 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 re-allocation, you
must call one of our customer
service representatives at 1
(800) 789-7771 before the
40th day following the
contract date to cancel.
If you choose the "return of
contribution" free look
treatment, you may not elect
a Special dollar cost
averaging program either at
issue or any time in the
first 40 days after issue.
See "Disability, terminal illness, or The withdrawal charge waivers
confinement to a nursing home'' under for items (i), (ii) and (iii)
"Withdrawal charge" in "Charges and under "DISABILITY, TERMINAL
expenses" ILLNESS, OR CONFINEMENT TO
NURSING HOME." do not apply
and are replaced with the
following:
(i)We receive proof
satisfactory to us
(including certification
by a licensed physician)
that an owner (or older
joint owner, if
applicable) suffers from
impairment of cognitive
ability, meaning a
deterioration or loss of
intellectual capacity due
to mental illness or
disease, including
Alzheimer's disease or
related illnesses, that
requires continual
supervision to protect
oneself or others.
(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 12 months
or less.
(iii)An owner (or older joint
owner, if applicable)
has been confined to a
nursing home as verified
by a licensed physician.
The definition of a
nursing home for this
purpose is as follows:
the owner (or older
joint owner, if
applicable) is
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, is
confined in a skilled
nursing facility,
convalescent nursing
home, or extended care
facility, which shall
not be defined more
restrictively than as in
the Medicare program, or
is confined in a
residential care
facility or residential
care facility for the
elderly, as defined in
the Health and Safety
Code. Out-of-state
providers of services
shall be defined as
comparable in licensure
and staffing
requirements to
California providers.
See ''Transfers of ownership, collateral Guaranteed benefits do not
assignments, loans and borrowing'' in terminate upon a change of
''More Information'' owner or absolute assignment
of the contract. Guaranteed
benefits will continue to be
based on the original
measuring life (i.e., owner,
older joint owner, annuitant,
older joint annuitant).
---------------------------------------------------------------------------------------
COLORADO See "Your right to cancel within a certain If you reside in the state of
number of days" in "Contract features Colorado, you may cancel your
and benefits" variable annuity contract and
return it to us within 15
days from the date you
received it. Your refund will
equal your account value
under the contract on the day
we receive notification to
cancel the contract.
---------------------------------------------------------------------------------------
CONNECTICUT See "Charge for each additional transfer The charge for transfers does
in excess of 12 transfers per contract not apply.
year" in "Fee table" and "Transfer
charge" in "Charges and expenses"
---------------------------------------------------------------------------------------
V-2
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
---------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
---------------------------------------------------------------------------------------
CONNECTICUT See "Credit recovery" under "Credits and The second and third bullets
(CONTINUED) Earnings bonus (For Series CP(R) contracts under "Credit recovery" do
only)" in "Contract features and benefits" not apply and are replaced by
and "Your annuity payout options" in the following:
"Accessing your money"
. If you start receiving
annuity payments within
three years of making any
contribution, we will not
recover the credit that
applies to any
contribution made within
the prior three years. As
a result, we will apply
the contract's cash
value, not the account
value, to the life
contingent annuity payout
regardless of how many
years have elapsed since
last contribution.
. Credits applied to
contributions made within
one year of death of the
owner (or older joint
owner, if applicable)
will not be recovered.
However, any applicable
contract withdrawal
charges will continue to
apply to those
contributions. The 10%
free withdrawal amount
does not apply when
calculating the
withdrawal charges
applicable to the payment
of a death benefit.
See "GMIB "no lapse guarantee"" under The no-lapse guarantee will
"Guaranteed minimum income benefit" not terminate if your
in "Contract features and benefits" aggregate withdrawals from
your Protected Benefit
account in any contract year
following the contract year
in which you first fund your
Protected Benefit Account
exceed your Annual Withdrawal
Amount unless the excess
withdrawal drives your
account value to zero.
See "Disruptive transfer activity" in The ability to restrict
"Transferring your money among transfers due to market
investment options" timing can only be determined
by the underlying fund
managers. AXA Equitable's
right to restrict transfers
due to market timing does not
apply.
See "Transfer Charge" in "Charges and The charge for excessive
Expenses" transfers does not apply.
The ability to reserve the
right to impose a limit on
the number of free transfers
does not apply.
See "Withdrawal charge" in "Charges No withdrawal charge will
and expenses" apply to any contribution
received more than 12 months
prior to the date of death in
the event the owner dies and
the death benefit is payable.
For Series CP(R) contracts:
Since credits applied to
contributions cannot be
recovered, withdrawal charges
apply to amounts associated
with a credit.
See "Disability, terminal illness, or The withdrawal charge waiver
confinement to a nursing home" under under item (i) does not apply.
"Withdrawal charge" in "Charges and
expenses"
See "Special service charges" in "Charges The charge for third-party
and Expenses" transfers or exchanges does
not apply.
The maximum charge for check
preparation is $9 per
occurrence.
See "Misstatement of age" in "More We will not deduct interest
information" for any overpayments made by
us due to a misstatement of
age or sex. Any overpayments
will be deducted from future
payments.
See "Transfers of ownership, collateral Benefits terminate upon any
assignments, loans and borrowing" in change of owner who is the
"More information" measuring life, unless the
change of ownership is due to
a divorce where the spouse is
awarded 100% of the account
value and chooses to continue
the contract in his or her
name and meets the age
requirements of the
applicable benefit on the
date the change in ownership
occurs.
Benefits do not terminate
upon assignment.
Your contract cannot be
assigned to an institutional
investor or settlement
company, either directly or
indirectly, nor may the
ownership be changed to an
institutional investor or
settlement company.
---------------------------------------------------------------------------------------
V-3
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
---------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
---------------------------------------------------------------------------------------
DELAWARE See "Your right to cancel within a certain If you reside in the state of
number of days" in "Contract features Delaware, at the time the
and benefits" contract was issued, you may
return your Retirement
Cornerstone (R) Series
replacement contract within
20 days from the date you
received it and receive a
full refund of your
contribution or cash value,
whichever is greater.
See "Greater of death benefit" under If the Guaranteed minimum
"Guaranteed benefit charges" in income benefit is elected or
"Charges and expenses" if the Guaranteed minimum
income benefit is elected
with the Return of Principal
death benefit, Highest
Anniversary Value death
benefit, or "Greater of"
death benefit, the maximum
charge for each benefit is
1.65%. If the RMD Wealth
Guard death benefit is
elected the maximum charge is
1.40%.
---------------------------------------------------------------------------------------
FLORIDA See "How you can purchase and In the second paragraph of
contribute to your contract" in "Contract this section, item (ii)
features and benefits" regarding the $2,500,000
limitation on contributions
is deleted. The remainder of
this section is unchanged.
See "How you can purchase and We may not discontinue the
contribute to your contract" in "Contract acceptance of contributions.
features and benefits"
See "Credits (for Series CP(R) contracts)" in If you elect to receive
"Contract features and benefits" annuity payments within five
years of the contract date,
we will recover the credit
that applies to any
contribution made in those
five years. If you elect to
receive annuity payments
after five years from the
contract date and within
three years of making any
contribution, we will recover
the credit that applies to
any contribution made within
the prior three years.
See "When to expect payments" in For any payment we defer for
"Accessing your money" more than 30 days, we will
pay interest to that payment
based on an annual interest
rate that is equal to, or
greater than, the Moody's
Corporate Bond Yield Average
Monthly Corporate Rate.
See "Selecting an annuity payout option" The following sentence
under "Your annuity payout options" in replaces the first sentence
"Accessing your money" of the second paragraph in
this section:
See "Annuity maturity date" under "Your Requests to start receiving
annuity payout options" in "Accessing annuity payments before the
your money" maturity date must be made in
writing at least 30 days
prior to the date annuity
payments are to begin.
See "Special service charges" in "Charges The charge for third-party
and expenses" transfer or exchange applies
to any transfer or exchange
of your contract, even if it
is to another contract issued
by AXA Equitable. We will not
impose a charge for
third-party transfers or
exchanges if the contract
owner is age 65 or older at
issue.
You can choose the date
annuity payments begin but it
may not be earlier than
twelve months from the
Retirement Cornerstone(R)
Series contract date.
See "Your right to cancel within a certain If you reside in the state of
number of days" in "Contract features Florida, you may cancel your
and benefits" variable annuity contract and
return it to us within 21
days from the date that you
receive it. You will receive
an unconditional refund equal
to the greater of the cash
surrender value provided in
the annuity contract, plus
any fees or charges deducted
from the contributions or
imposed under the contract,
or a refund of all
contributions paid.
See "Transferring your account value" in We may not require a minimum
"Transferring your money among time period between transfers
investment options" or establish a daily maximum
transfer limit.
See "Check preparation charge" under The maximum charge for check
"Special service charges" in "Charges preparation is $25.
and expenses"
See "Withdrawal charge" under If you are age 65 and older
"Charges that AXA Equitable deducts" in at the time your contract is
"Charges and expenses" issued, the applicable
withdrawal charge will not
exceed 10% of the amount
withdrawn.
See "Misstatement of age" in "More After the second contract
information" date anniversary, Guaranteed
benefits may not be
terminated for misstatement
of age.
---------------------------------------------------------------------------------------
V-4
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
---------------------------------------------------------------------------------------
STATE FEATURES AND BENEFITS AVAILABILITY OR VARIATION
---------------------------------------------------------------------------------------
FLORIDA See "Transfers of ownership, collateral Your Guaranteed benefits will
(CONTINUED) assignments, loans and borrowing" in terminate with all transfers
"More information" of ownership, even with a
change of owner from a trust
to an individual, unless the
change of ownership is due to
a divorce where the spouse is
awarded 100% of the Total
account value, chooses to
continue the contract in his
or her name and meets the age
requirements of the
applicable rider on the date
the change in ownership
occurs.
---------------------------------------------------------------------------------------
IOWA See "Your right to cancel within a certain If you reside in the state of
number of days" in "Contract features Iowa, you may cancel your
and benefits" variable annuity contract and
return it to us within 15
days from the date you
received it. Your refund will
equal your account value
under the contract on the day
we receive notification to
cancel the contract.
---------------------------------------------------------------------------------------
NEW YORK See "Greater of" death benefit and RMD The "Greater of" death
Wealth Guard death benefit in benefit and the RMD Wealth
"Definitions of key terms", in Guard death benefit are not
"Guaranteed minimum death benefits" available. The only
and throughout this Prospectus. Guaranteed minimum death
benefits that are available
are the Return of Principal
death benefit and the Highest
Anniversary Value death
benefit. Both of these death
benefits are available in
combination with the
Guaranteed minimum income
benefit. They are also
available without the
Guaranteed minimum income
benefit.
See "Guaranteed interest option" under FOR SERIES CP(R) CONTRACTS
"What are your investment options under ONLY:
the contract?" in "Contract features and The Guaranteed interest
benefits" option is not available.
See "Dollar cost averaging" in "Contract FOR SERIES CP(R) CONTRACTS
features and benefits" ONLY:
Investment Simplifier is not
available.
See "Credits" in "Contract features and FOR SERIES CP(R) CONTRACTS
benefits" ONLY:
If the owner (or older joint
owner, if applicable) dies
during the one-year period
following our receipt of a
contribution to which a
credit was applied, we will
recover all or a portion of
the amount of such Credit
from the account value, based
on the number of full months
that elapse between the time
we receive the contribution
and the owner's (or older
joint owner's, if applicable)
death, as follows:
Number of Months Percentage of Credit
---------------- --------------------
0 100%
1 100%
2 99%
3 98%
4 97%
5 96%
6 95%
7 94%
8 93%
9 92%
10 91%
11 90%
12 89%
We will not recover the credit on
subsequent contributions made within 3
years prior to annuitization.
See "GMIB Benefit base" under For the GMIB, there are caps on the GMIB
"Guaranteed minimum income benefit" in benefit base, which are based on a
"Contract features and benefits" percentage of total contributions and
transfers to the Protected Benefit account:
Initial Funding Age Cap Amount
------------------- ----------
[45]-49 350% on GMIB benefit base
50+ No Cap on GMIB benefit base
-----------------------------------------------------------------------
V-5
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
------------------------------------------------------------------------------------------------------------------------------------
AVAILABILITY
STATE FEATURES AND BENEFITS OR VARIATION
------------------------------------------------------------------------------------------------------------------------------------
NEW YORK The cap is determined by the age of the
(CONTINUED) owner at the time of first funding of the
Protected Benefit account. If the Protected
Benefit account is funded at age 50 or
greater there is no cap. If the Protected
Benefit account is funded at ages [45] to
49, the cap percentage is set to 350% and
does not change for the life of the
contract, unless there is a GMIB benefit
base reset at age 50 or greater. If there
is a GMIB benefit base reset at age 50 or
greater, there is no cap, regardless of the
age of the owner at first funding. If there
is a GMIB benefit base reset prior to age
50, the GMIB benefit base will be capped at
350%, multiplied by the Protected Benefit
account value at time of the GMIB benefit
base reset, plus 350% of all contributions
and transfers made to the Protected Benefit
account after the reset. Neither a GMIB
benefit base reset nor withdrawals from
your Protected Benefit account will lower
the cap amount.
See "75 Day rate lock-in" under The Roll-up rate lock-in period is 90 days,
"Guaranteed minimum income benefit" in beginning on the date you signed client
"Contract features and benefits" replacement information authorization form.
See "Withdrawals treated as surrenders" We do not have the right to terminate the
in "Accessing your money" contract if no contributions are made
during the last three contract years and
the cash value is less than $500.
See "Your annuity payout options" in Your choice of annuity payout options
"Accessing your money" includes a straight life fixed income
annuity.
See "The amount applied to purchase an If a non-life contingent form of annuity is
annuity payout option" in "Accessing elected, the amount applied to an annuity
your money" benefit is the 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 Total
account value applied to the Table of
Guaranteed Annuity Payments.
See "Selecting an annuity payout option" FOR SERIES CP(R) CONTRACTS ONLY:
under "Your annuity payout option" in The earliest date annuity payments may
"Accessing your money" begin is 13 months from the issue date.
See "Charges and expenses" Deductions for charges from the guaranteed
interest option and the Special DCA account
are not permitted.
The charge for third-party transfer or
exchange does not apply.
The check preparation charge does not apply.
See "Disability, terminal illness, or Item (i) is deleted and replaced with the
confinement to a nursing home" following: An owner (or older joint owner,
if applicable) has qualified to receive
Social Security 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 re-certification
statement from a physician will be required
every 12 months from the date disability is
determined.
See "Transfers of ownership, collateral Collateral assignments are not limited to
assignments, loans and borrowing" in the period prior to the first contract date
"More 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 within a certain If you reside in the state of North Dakota
number of days" in "Contract features at the time the contract is issued, you may
and benefits" return your Retirement Cornerstone(R)
Series contract within 20 days from the
date that you receive it and receive a full
refund of your contributions or cash value,
whichever is greater.
See "Your beneficiary and payment of Amounts allocated to the Guaranteed
benefit" in "Payment of death benefit" interest option will continue to earn
interest until the applicable death benefit
is paid. This means that your death benefit
(other than the applicable guaranteed
minimum death benefit) will be increased by
the amount of interest credited to any
assets in the Guaranteed interest option up
until the date on which we pay the death
benefit.
------------------------------------------------------------------------------------------------------------------------------------
V-6
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
------------------------------------------------------------------------------------------------------------------------------
AVAILABILITY
OR
STATE FEATURES AND BENEFITS 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.
SEP IRA contracts and QP (Defined Not Available
Benefit) contracts (For Series B and
Series CP(R) contracts only)
See "Purchase considerations for a We do not offer contracts to charitable
charitable remainder trust" under "Owner remainder trusts in Puerto Rico.
and annuitant requirements" in "Contract
features and benefits"
See "How you can make contributions" in Specific requirements for purchasing QP
"Contract features and benefits" (For contracts in Puerto Rico are outlined
Series B and Series CP(R) contracts only) below in "Purchase considerations for QP
(Defined Contribution) contracts in
Puerto Rico".
See "Guaranteed minimum income Restrictions for the GMIB on a Puerto
benefit" in "Contract features and Rico QPDC contract are described below,
benefits" (For Series B and Series CP(R) under "Purchase considerations for QP
contracts only) (Defined Contribution) contracts in
Puerto Rico", and in your contract.
See "Transfers of ownership, collateral Transfers of ownership of QP contracts
assignments, loans and borrowing" in are governed by Puerto Rico law. Please
"More information" (For Series B and consult your tax, legal or plan advisor
Series CP(R) contracts only) if you intend to transfer ownership of
your contract.
"Purchase considerations for QP (Defined PURCHASE CONSIDERATIONS FOR QP (DEFINED
Contribution) contracts in Puerto Rico" CONTRIBUTION) CONTRACTS IN PUERTO RICO:
-- this section replaces "Appendix II: Trustees who are considering the
Purchase considerations for QP contracts" purchase of a Retirement Cornerstone(R)
in this Prospectus. (For Series B and Series QP contract in Puerto Rico should
Series CP(R) contracts only) 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, the Guaranteed minimum income
benefit, and the payment of death
benefits in accordance with the
requirements of Puerto Rico income tax
rules. The QP contract and this
Prospectus should be reviewed in full,
and the following factors, among others,
should be noted.
LIMITS ON CONTRACT OWNERSHIP
. The QP contract is offered only as a
funding vehicle to qualified plan
trusts of single participant defined
contribution plans that are tax-
qualified under Puerto Rico law, not
United States law. The contract is
not available to US qualified plans
or to defined benefit plans
qualifying under Puerto Rico law.
. The QP contract owner is the
qualified plan trust. The annuitant
under the contract is the
self-employed Puerto Rico resident,
who is the sole plan participant.
. 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.
. If the business that sponsors the
plan adds another employee who
becomes eligible for the plan, no
further contributions may be made to
the contract. If the employer moves
the funds to another funding vehicle
that can accommodate more than one
employee, this move could result in
surrender charges, if applicable,
and the loss of guaranteed benefits
in the contract.
LIMITS ON CONTRIBUTIONS:
. All contributions must be direct
transfers from other investments
within an existing qualified plan
trust.
. Employer payroll contributions are
not accepted.
------------------------------------------------------------------------------------------------------------------------------
V-7
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
-----------------------------------------------------------------------------------------------------------------------------------
AVAILABILITY
STATE FEATURES AND BENEFITS OR VARIATION
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO . Only one additional transfer
(CONTINUED) contribution may be made per contract
year.
. Checks written on accounts held in the
name of the employer instead of the
plan or the trustee will not be
accepted.
. As mentioned above, if a new employee
becomes eligible for the plan, the
trustee will not be permitted to make
any further contributions to the
contract established for the original
business owner.
LIMITS ON PAYMENTS:
. Loans are not available under the
contract.
. All payments are made to the plan trust
as owner, even though the plan
participant/annuitant is the ultimate
recipient of the benefit payment.
. AXA Equitable does no tax reporting or
withholding of any kind. The plan
administrator or trustee will be solely
responsible for performing or providing
for all such services.
. AXA Equitable does not offer contracts
that qualify as IRAs under Puerto Rico
law. The plan trust will exercise the
GMIB and must continue to hold the
supplementary contract for the duration
of the GMIB payments. The contract
cannot be converted to an IRA.
PLAN TERMINATION:
. If the plan participant terminates the
business, and as a result wishes to
terminate the plan, the trust would
have to be kept in existence to receive
payments. This could create expenses
for the plan.
. If the plan participant terminates the
plan and the trust is dissolved, or if
the plan trustee (which may or may not
be the same as the plan participant) is
unwilling to accept payment to the plan
trust for any reason, AXA Equitable
would have to change the contract from
a Puerto Rico QP to NQ in order to make
payments to the individual as the new
owner. Depending on when this occurs,
it could be a taxable distribution from
the plan, with a potential tax of the
entire account value of the contract.
Puerto Rico income tax withholding and
reporting by the plan trustee could
apply to the distribution transaction.
. If the plan trust is receiving GMIB
payments and the trust is subsequently
terminated, transforming the contract
into an individually owned NQ contract,
the trustee would be responsible for
the applicable Puerto Rico income tax
withholding and reporting on the
present value of the remaining annuity
payment stream.
. AXA Equitable is a U.S. insurance
company, therefore distributions under
the NQ contract could be subject to
United States taxation and withholding
on a "taxable amount not determined"
basis.
We require owners or beneficiaries of
annuity contracts in Puerto Rico which are
not individuals to document their status to
avoid 30% FATCA withholding from
U.S.-source income.
-----------------------------------------------------------------------------------------------------------------------------------
RHODE ISLAND See "Your right to cancel within a certain If you reside in the state of Rhode Island,
number of days" in "Contract features you may cancel your variable annuity
and benefits" contract and return it to us within 15 days
from the date you received it. Your refund
will equal your account value under the
contract on the day we receive notification
to cancel the contract.
-----------------------------------------------------------------------------------------------------------------------------------
TEXAS See "Your right to cancel within a certain If you reside in the state of Texas, you
number of days" in "Contract features may cancel your variable annuity contract
and benefits" and return it to us within 15 days from the
date you received it. Your refund will
equal your account value under the contract
on the day we receive notification to
cancel the contract.
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON D.C. See "Your right to cancel within a certain If you reside in the district of
number of days" in "Contract features Washington, D.C., at the time the contract
and benefits" was issued, you may return your Retirement
Cornerstone(R) Series replacement contract
within 10 days from the date you received
it and receive a refund of your Total
account value under the contract on the day
we receive notification to cancel the
contract.
-----------------------------------------------------------------------------------------------------------------------------------
V-8
APPENDIX V: STATE CONTRACT AVAILABILITY AND/OR VARIATIONS OF CERTAIN
FEATURES AND BENEFITS
Appendix VI: Examples of Automatic payment plans
--------------------------------------------------------------------------------
The following examples illustrate the amount of the automatic withdrawals that
would be taken under the various payment plans described in "Accessing your
money" under "Automatic payment plans." The examples assume a $100,000
allocation to the Protected Benefit account variable investment options with
assumed investment performance of 0%. (The last example assumes an allocation
to the Investment account.) The examples show how the different automatic
payment plans can be used without reducing your GMIB benefit base. The examples
are based on the applicable Roll-up rate shown below and assumes that the GMIB
benefit base does not reset. Also, the examples reflect the effect on both the
GMIB benefit base and the Roll-up to age 80 benefit base (used in the
calculation of the "Greater of" death benefit).
MAXIMUM PAYMENT PLAN
FULL ANNUAL WITHDRAWAL AMOUNT PAYMENT
Under this payment plan, you will receive the Annual withdrawal amounts as
scheduled payments. In this example, the "Withdrawal" column reflects the
Annual withdrawal amounts for the years shown. Amounts in the "Withdrawal"
column are calculated by multiplying the "Beginning of the year GMIB benefit
base" by the "Annual Roll-up rate" in effect for each year.
--------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
--------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
--------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
--------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
--------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
--------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
--------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981 4.7%
--------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618 5.2%
--------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872 5.4%
--------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $7,636 6.0%
--------------------------------------------------------------------------------
10 7.3%/(b)/ $127,260 $9,290 7.3%
--------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
CUSTOMIZED PAYMENT PLANS
GUARANTEED MINIMUM PERCENTAGE
Under this payment plan, you will receive as scheduled payments a withdrawal
amount that is based on withdrawal percentage that is fixed at the lowest
guaranteed Deferral Roll-up rate or Annual Roll-up rate of 4.0%. In this
example, amounts in the "Withdrawal" column are calculated by multiplying the
"Beginning of the year GMIB benefit base" by 4.0%.
--------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
--------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
--------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
--------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
--------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
--------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
--------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,090 4.0%
--------------------------------------------------------------------------------
7 5.2%/(b)/ $128,151 $5,126 4.0%
--------------------------------------------------------------------------------
8 5.4%/(b)/ $129,688 $5,188 4.0%
--------------------------------------------------------------------------------
VI-1
APPENDIX VI: EXAMPLES OF AUTOMATIC PAYMENT PLANS
--------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
--------------------------------------------------------------------------------
9 6.0%/(b)/ $131,504 $5,260 4.0%
--------------------------------------------------------------------------------
10 7.3%/(b)/ $134,134 $5,365 4.0%
--------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
FIXED PERCENTAGE BELOW THE ANNUAL ROLL-UP RATE (1.0% BELOW)
Under this payment plan, you will receive as scheduled payments a withdrawal
amount that is based on a fixed percentage that is less than the applicable
Annual Roll-up rate in effect for each contract year. In this example, the
contract owner has requested that we pay scheduled payments that are 1.00%
below the Annual Roll-up rate in effect for each year. Amounts in the
"Withdrawal" column are calculated by multiplying the "Beginning of the year
GMIB benefit base" by the "Percentage of GMIB benefit base withdrawn."
-----------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
-----------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
-----------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
-----------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
-----------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
-----------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
-----------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,090/(c)/ 4.0%/(c)/
-----------------------------------------------------------------------------------
7 5.2%/(b)/ $128,151 $5,382 4.2%
-----------------------------------------------------------------------------------
8 5.4%/(b)/ $129,432 $5,695 4.4%
-----------------------------------------------------------------------------------
9 6.0%/(b)/ $130,726 $6,536 5.0%
-----------------------------------------------------------------------------------
10 7.3%/(b)/ $132,034 $8,318 6.3%
-----------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
(c)In contract year 6, the fixed percentage would have resulted in a payment
less than 4.0%. In this case, the withdrawal percentage is 4.0%.
FIXED PERCENTAGE OF 5.5%
Under this payment plan, you will receive a withdrawal amount based on a fixed
percentage that cannot exceed the Annual Roll-up rate in effect for each year.
In this example, the contract owner has elected to receive withdrawals at a
fixed percentage of 5.5%. Amounts in the "Withdrawal" column are calculated by
multiplying the "Beginning of the year GMIB benefit base" by the "Percentage of
GMIB benefit base withdrawn."
-----------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
-----------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
-----------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
-----------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
-----------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
-----------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
-----------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981/(c)/ 4.7%/(c)/
-----------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618/(c)/ 5.5%/(c)/
-----------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872/(c)/ 5.4%/(c)/
-----------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $6,999/(c)/ 5.2%/(c)/
-----------------------------------------------------------------------------------
10 7.3%/(b)/ $127,896 $7,034/(d)/ 5.5%/(d)/
-----------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
(c)In contract years 6, 7 and 8 the contract owner received withdrawal amounts
based on the Annual Roll-up rate for each contract year. In each year, the
Annual Roll-up rate was less than the withdrawal percentage selected.
(d)In contract years 9 and 10, the contract owner received withdrawal amounts
of 5.5% even though the Annual Roll-up rates in effect in those years were
greater.
VI-2
APPENDIX VI: EXAMPLES OF AUTOMATIC PAYMENT PLANS
FIXED DOLLAR OF $7,000
Under this payment plan, you will receive a withdrawal amount that is based on
a fixed dollar amount. The fixed dollar amount may not exceed the Annual
withdrawal amount in any contract year. In this example, the contract owner has
elected to receive withdrawals of $7,000. Amounts in the "Withdrawal" column
are calculated by multiplying the "Beginning of the year GMIB benefit base" by
the "Percentage of GMIB benefit base withdrawn."
-----------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE/
ANNUAL BEGINNING OF YEAR GMIB PERCENTAGE OF GMIB BENEFIT
YEAR ROLL-UP RATE BENEFIT BASE WITHDRAWAL BASE WITHDRAWN
-----------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 0.0%
-----------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 0.0%
-----------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 0.0%
-----------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 0.0%
-----------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 0.0%
-----------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981/(c)/ 4.7%/(c)/
-----------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618/(c)/ 5.2%/(c)/
-----------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872/(c)/ 5.4%/(c)/
-----------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $7,000 5.5%
-----------------------------------------------------------------------------------
10 7.3%/(b)/ $127,895 $7,000 5.5%
-----------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
(c)In contract years 6 through 8, the contract owner received the Annual
withdrawal amount for those years.
FIXED PERCENTAGE OF 5.50% FROM BOTH YOUR PROTECTED BENEFIT ACCOUNT AND YOUR
INVESTMENT ACCOUNT
Under this payment plan, you can receive a fixed dollar amount or an amount
based on a fixed percentage as scheduled payments that may be greater than your
Annual withdrawal amount. Your Annual withdrawal amount will be withdrawn
first. Any requested amount in excess of the Annual withdrawal amount will be
withdrawn from your Investment account. In this example, the contract owner has
elected to receive withdrawals at a fixed percentage of 5.50%.
--------------------------------------------------------------------------------------------------------
DEFERRAL
ROLL-UP RATE WITHDRAWAL FROM ADDITIONAL WITHDRAWAL
ANNUAL BEGINNING OF YEAR GMIB PROTECTED BENEFIT FROM INVESTMENT PERCENTAGE OF GMIB
YEAR ROLL-UP RATE BENEFIT BASE ACCOUNT VALUE ACCOUNT BENEFIT BASE WITHDRAWN
--------------------------------------------------------------------------------------------------------
1 4.8%/(a)/ $100,000 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
2 4.3%/(a)/ $104,800 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
3 5.2%/(a)/ $109,306 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
4 5.4%/(a)/ $114,990 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
5 5.0%/(a)/ $121,200 $ 0 $ 0 0.0%
--------------------------------------------------------------------------------------------------------
6 4.7%/(b)/ $127,260 $5,981 $1,018 5.5%
--------------------------------------------------------------------------------------------------------
7 5.2%/(b)/ $127,260 $6,618 $ 382 5.5%
--------------------------------------------------------------------------------------------------------
8 5.4%/(b)/ $127,260 $6,872 $ 127 5.5%
--------------------------------------------------------------------------------------------------------
9 6.0%/(b)/ $127,260 $6,999 $ 0 5.5%
--------------------------------------------------------------------------------------------------------
10 7.3%/(b)/ $127,896 $7,034 $ 0 5.5%
--------------------------------------------------------------------------------------------------------
(a)the Deferral Roll-up rate applies.
(b)the Annual Roll-up rate applies.
VI-3
APPENDIX VI: EXAMPLES OF AUTOMATIC PAYMENT PLANS
Appendix VII: Examples of how withdrawals affect your Guaranteed benefit bases
--------------------------------------------------------------------------------
EXAMPLES FOR GMIB
EXAMPLE #1
As described below, this example assumes that Protected Benefit account value
is LESS THAN the GMIB benefit base at the time of the first withdrawal.
Assuming $100,000 is invested in the Protected Benefit variable investment
options, with no additional contributions, and no transfers, the GMIB benefit
base and the Guaranteed minimum death benefit base for an owner age 60 would be
calculated as follows:
--------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT
--------------------------------
HIGHEST
PROTECTED RETURN OF ANNIVERSARY ROLL-UP
END OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE TO AGE 80 "GREATER OF"
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
--------------------------------------------------------------------------------------------------------------------
0 $100,000 $100,000/(3)/ $100,000/(1)/ $100,000/(2)/ $100,000/(3)/ $100,000
--------------------------------------------------------------------------------------------------------------------
1 3.0 % $103,000 $ 0 4.0% $104,000/(3)/ $100,000/(1)/ $103,000/(2)/ $104,000/(3)/ $104,000
--------------------------------------------------------------------------------------------------------------------
2 4.0 % $107,120 $ 0 4.0% $108,160/(3)/ $100,000/(1)/ $107,120/(2)/ $108,160/(3)/ $108,160
--------------------------------------------------------------------------------------------------------------------
3 6.0 % $113,547 $ 0 4.0% $113,547/(3)/ $100,000/(1)/ $113,547/(2)/ $113,547/(3)/ $113,547
--------------------------------------------------------------------------------------------------------------------
4 6.0 % $120,360 $ 0 4.0% $120,360/(3)/ $100,000/(1)/ $120,360/(2)/ $120,360/(3)/ $120,360
--------------------------------------------------------------------------------------------------------------------
5 7.0 % $128,785 $ 0 4.0% $128,785/(3)/ $100,000/(1)/ $128,785/(2)/ $128,785/(3)/ $128,785
--------------------------------------------------------------------------------------------------------------------
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the Guaranteed benefit bases are as follows:
(1)The RETURN OF PRINCIPAL BENEFIT BASE is equal to the initial contribution to
the Protected Benefit variable investment options, or $100,000.
(2)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is equal to the greater of the
Protected Benefit account value and the Highest Anniversary Value benefit
base as of the last contract date anniversary.
For example:
. At the end of contract year 3, the Highest Anniversary Value benefit base
is $113,547. This is because the Protected Benefit account value
($113,547) is greater than the Highest Anniversary Value benefit base as
of the last contract date anniversary.
(3)The ROLL-UP TO AGE 80 BENEFIT BASE AND THE GMIB BENEFIT BASE (the "Roll-up
benefit bases") are equal to the Roll-up benefit bases as of the last
contract date anniversary plus the Deferral Roll-up amount (the Roll-up
benefit bases as of the last contract date anniversary multiplied by the
assumed Deferral Roll-up rate). Unless you decline or elect a different
annual reset option, you will be enrolled in the automatic annual reset
program and your Roll-up benefit bases will automatically "reset" to equal
the Protected Benefit account, if higher than the prior Roll-up benefit
bases, every contract year from your contract issue date, up to the contract
anniversary following your 80th birthday (for the Roll-up to age 80 benefit
base) or your 95th birthday (for the GMIB benefit base). Beginning in the
contract year that follows the contract year in which you fund your
Protected Benefit account, if your Lifetime GMIB payments have not begun,
you can withdraw up to your Annual withdrawal amount without reducing your
Roll-up benefit bases. However, those same withdrawals will reduce the
Annual Roll-up amount that would otherwise be applied to the Roll-up benefit
bases at the end of the contract year. Remember that the Roll-up amount
applicable under your contract does not become part of your Roll-up benefit
bases until the end of the contract year except in the year in which you
die. In the event of your death, a pro-rata portion of the Roll-up amount
will be added to the Roll-up to age 80 benefit base.
For example:
. At the end of contract year 2, the Roll-up benefit bases are equal to
$108,160. This is calculated by taking the Roll-up benefit bases as of
the last contract date anniversary $104,000, and multiplying it by
Roll-up rate of 4%. ($104,000 x 1.04 = $108,160).
VII-1
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
For both Alternatives below, the Annual withdrawal amount in contract year 6
equals $5,151 [4% (Roll-up rate) x $128,785 (the GMIB benefit base)].
---------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT
--------------------------------
HIGHEST
PROTECTED RETURN OF ANNIVERSARY ROLL-UP
END OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE TO AGE 80 "GREATER OF"
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
---------------------------------------------------------------------------------------------------------------------
Alternative #1: Owner withdraws the
Annual withdrawal amount, which equals $5,151
Year 6 (5.0)% $122,346 $5,151 4.0% $128,785/(6)/ $95,790/(4)/ $123,634/(5)/ $128,785/(6)/ $128,785
---------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,151/(7)/
Alternative #2: Owner withdraws $7,000, which is in excess of the Annual withdrawal amount
Year 6 (5.0)% $122,346 $7,000 4.0% $126,839/(10)/ $94,279/(8)/ $121,766/(9)/ $126,839/(10)/ $126,839
---------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,074/(11)/
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS ANNUAL WITHDRAWAL AMOUNT)
The pro-rata calculation for the Return of Principal benefit base is as
follows: Since the withdrawal amount of $5,151 equals 4.21% of the Protected
Benefit account value ($5,151 divided by $122,346 = 4.21%), each benefit base
would be reduced by 4.21%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(4)The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (Return of Principal benefit base as of the last contract date
anniversary)-$4,210 (4.21% x $100,000) = $95,790.
(5)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced dollar-for-dollar, as
follows: $128,785 (Highest Anniversary Value benefit base as of the last
contract date anniversary) - $5,151 = $123,634.
(6)The ROLL-UP TO AGE 80 BENEFIT BASE AND THE GMIB BENEFIT BASE are equal to
$128,785, (the Roll-up benefit bases as of the last contract date
anniversary). Since the full Annual withdrawal amount was taken, the Roll-up
benefit bases neither decrease nor increase;
(7)As a result of the withdrawal in contract year 6, the Annual withdrawal
amount in contract year 7 is $5,151 [4% (Roll-up rate) x $128,785 (the
Roll-up benefit bases as of the sixth contract anniversary)].
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES AN "EXCESS WITHDRAWAL")
The pro-rata calculation for the reduction in the Return of Principal benefit
base is as follows: Since the withdrawal amount of $7,000 equals 5.721% of the
Protected Benefit account value ($7,000 divided by $122,346 = 5.721%), each
benefit base would be reduced by 5.721%.
The pro-rata calculation for the reduction in the Roll-up benefit bases is as
follows: $7,000 (the amount of the withdrawal, including any applicable
withdrawal charge) - $5,151 (the Annual withdrawal amount) = $1,849 (the
"Excess withdrawal" amount). Since the amount of the Excess withdrawal equals
1.511% of the Protected Benefit account value ($1,849 divided by $122,346 =
1.511%), the Roll-up benefit bases would be reduced by 1.511%.
Please note that the Excess withdrawal in this example does not represent a RMD
payment made through our automatic RMD service. For more information on RMD
payments through our automatic RMD service, please see "Lifetime required
minimum distribution withdrawals" in "Accessing your money" earlier in this
Prospectus.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(8)The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (Return of Principal benefit base as of the last contract date
anniversary) - $5,721 (5.721% x $100,000) = $94,279.
(9)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced dollar-for-dollar and
pro-rata, as follows: $128,785 (Highest Anniversary Value benefit base as of
the last contract date anniversary) - $5,151 (Annual Withdrawal Amount) -
$1,868 [($128,785 - $5,151) x 1.511%] = $121,766.
(10)The ROLL-UP TO AGE 80 BENEFIT BASE and the GMIB benefit base are reduced
pro-rata, as follows: $128,785 (the Roll-up benefit bases as of the last
contract date anniversary) - $1,946 (1.511% x $128,785) = $126,839.
(11)As a result of the Excess withdrawal in contract year 6, the Annual
withdrawal amount in contract year 7 is $5,074 [4% (Roll-up rate)
x $126,839 (the Roll-up benefit bases as of the sixth contract
anniversary)].
VII-2
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
EXAMPLE #2
As described below, this example assumes that Protected Benefit account value
is GREATER THAN the GMIB benefit base at the time of the first withdrawal.
Assuming $100,000 is invested in the Protected Benefit variable investment
options, with no additional contributions, and no transfers, the GMIB benefit
base and the Guaranteed minimum death benefit base for an owner age 60 would be
calculated as follows:
--------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM DEATH BENEFIT
- --------------------------------
HIGHEST
PROTECTED RETURN OF ANNIVERSARY ROLL-UP
END OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE TO AGE 80 "GREATER OF"
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
--------------------------------------------------------------------------------------------------------------------
0 $100,000 $100,000/(3)/ $100,000/(1)/ $100,000/(2)/ $100,000/(3)/ $100,000
--------------------------------------------------------------------------------------------------------------------
1 3.0% $103,000 $ 0 4.0% $104,000/(3)/ $100,000/(1)/ $103,000/(2)/ $104,000/(3)/ $104,000
--------------------------------------------------------------------------------------------------------------------
2 4.0% $107,120 $ 0 4.0% $108,160/(3)/ $100,000/(1)/ $107,120/(2)/ $108,160/(3)/ $108,160
--------------------------------------------------------------------------------------------------------------------
3 6.0% $113,547 $ 0 4.0% $113,547/(3)/ $100,000/(1)/ $113,547/(2)/ $113,547/(3)/ $113,547
--------------------------------------------------------------------------------------------------------------------
4 6.0% $120,360 $ 0 4.0% $120,360/(3)/ $100,000/(1)/ $120,360/(2)/ $120,360/(3)/ $120,360
--------------------------------------------------------------------------------------------------------------------
5 7.0% $128,785 $ 0 4.0% $128,785/(3)/ $100,000/(1)/ $128,785/(2)/ $128,785/(3)/ $128,785
--------------------------------------------------------------------------------------------------------------------
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the Guaranteed benefit bases are as follows:
(1)The RETURN OF PRINCIPAL BENEFIT BASE is equal to the initial contribution to
the Protected Benefit variable investment options, or $100,000.
(2)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is equal to the greater of the
Protected Benefit account value and the Highest Anniversary Value benefit
base as of the last contract date anniversary.
For example:
. At the end of contract year 3, the Highest Anniversary Value benefit base
is $113,547. This is because the Protected Benefit account value
($113,547) is greater than the Highest Anniversary Value benefit base as
of the last contract date anniversary ($107,120).
(3)The ROLL-UP TO AGE 80 BENEFIT BASE AND THE GMIB BENEFIT BASE (the "Roll-up
benefit bases") are equal to the Roll-up benefit bases as of the last
contract date anniversary plus the Deferral Roll-up amount (the Roll-up
benefit bases as of the last contract date anniversary multiplied by Roll-up
rate). Unless you decline or elect a different annual reset option, you will
be enrolled in the automatic annual reset program and your Roll-up benefit
bases will automatically "reset" to equal the Protected Benefit account, if
higher than the prior Roll-up benefit bases, every contract year from your
contract issue date, up to the contract date anniversary following your 80th
birthday (for the Roll-up to age 80 benefit base) or your 95th birthday (for
the GMIB benefit base). Beginning in the contract year that follows the
contract year in which you fund your Protected Benefit account, if your
Lifetime GMIB payments have not begun, you can withdraw up to your Annual
withdrawal amount without reducing your Roll-up benefit bases. However,
those same withdrawals will reduce the Annual Roll-up amount that would
otherwise be applied to the Roll-up benefit bases at the end of the contract
year. Remember that the Roll-up amount applicable under your contract does
not become part of your Roll-up benefit bases until the end of the contract
year except in the year in which you die. In the event of your death, a
pro-rata portion of the Roll-up amount will be added to the Roll-up to age
80 benefit base.
For example:
. At the end of contract year 2, the Roll-up benefit bases are equal to
$108,160. This is calculated by taking the Roll-up benefit bases as of
the last contract date anniversary $104,000, and multiplying it by
Roll-up rate of 4% ($104,000 x 1.04 = $108,160).
. At the end of contract year 3, the Roll-up benefit bases are equal to
$113,547. This is because the Protected Benefit account value ($113,547)
is greater than the Roll-up benefit bases as the last contract date
anniversary ($108,160) plus Roll-up amount ($4,326).
VII-3
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
For both Alternatives below, the Annual withdrawal amount in contract year 6
equals $5,151 [4% (Roll-up rate) x $128,785 (the GMIB benefit base)].
------------------------------------------------------------------------------------------------------------------------------
GUARANTEED MINIMUM
DEATH BENEFIT
-------------
HIGHEST
END PROTECTED RETURN OF ANNIVERSARY
OF ASSUMED BENEFIT GMIB PRINCIPAL VALUE ROLL-UP TO AGE 80
CONTRACT NET ACCOUNT ROLL-UP BENEFIT BENEFIT BENEFIT BENEFIT "GREATER OF" BENEFIT
YEAR RETURN VALUE WITHDRAWAL RATE BASE BASE BASE BASE BASE
------------------------------------------------------------------------------------------------------------------------------
Alternative #1: Owner withdraws the
Annual withdrawal amount, which equals
$5,151
Year 6 5.0% $135,224 $5,151 4.0% $130,073/(6)/ $96,190/(4)/ $130,073/(5)/ $130,073/(6)/ $130,073
------------------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,203/(7)/
Alternative #2: Owner withdraws $7,000, which
is in excess of the Annual withdrawal amount
Year
6 5.0 % $135,224 $7,000 4.0% $128,224/(10)/ $94,823/(8)/ $128,224/(9)/ $128,224/(10)/ $128,224
------------------------------------------------------------------------------------------------------------------------------
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $5,129/(11)/
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS ANNUAL WITHDRAWAL AMOUNT)
The pro-rata calculation for the Return of Principal benefit base is as
follows: Since the withdrawal amount of $5,151 equals 3.810% of the Protected
Benefit account value ($5,151 divided by $135,224 = 3.810%), each benefit base
would be reduced by 3.810%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(4)The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (benefit base as of the last contract date anniversary)- $3,810
(3.810% x $100,000) = $96,190.
(5)The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced dollar-for-dollar as
follows: $128,785 (Highest Anniversary Value benefit base as of the last
contract date anniversary) - $5,151 = $123,634. The Highest Anniversary
Value benefit base is reset to the Protected Benefit account value after
withdrawal ($130,073).
(6)The ROLL-UP TO AGE 80 BENEFIT BASE AND GMIB BENEFIT BASE are reset to the
Protected Benefit Account Value after withdrawal $130,073.
(7)As a result of the withdrawal in contract year 6, the Annual withdrawal
amount in contract year 7 is $5,203 [4% (Roll-up rate) x $130,073 (the
Roll-up benefit bases as of the sixth contract anniversary)].
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES AN "EXCESS WITHDRAWAL")
The pro-rata calculation for the reduction in the Return of Principal benefit
base is as follows: Since the withdrawal amount of $7,000 equals 5.177% of the
Protected Benefit account value ($7,000 divided by $135,224 = 5.177%), each
benefit base would be reduced by 5.177%.
The pro-rata calculation for the reduction in the Highest Anniversary Value
benefit base and the Roll-up benefit bases is as follows: $7,000 (the amount of
the withdrawal, including any applicable withdrawal charge) - $5,151 (the
Annual withdrawal amount) = $1,849 (the "Excess withdrawal" amount). Since the
amount of the Excess withdrawal equals 1.367% of the Protected Benefit account
value ($1,849 divided by $135,224 = 1.367%), the Highest Anniversary Value
benefit base and the Roll-up benefit bases would be reduced by 1.367%.
Please note that the Excess withdrawal in this example does not represent a RMD
payment made through our automatic RMD service. For more information on RMD
payments through our automatic RMD service, please see "Lifetime required
minimum distribution withdrawals" in "Accessing your money" earlier in this
Prospectus.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(8)The Return of Principal benefit base is reduced pro-rata, as follows:
$100,000 (Return of Principal benefit base as of the last contract date
anniversary) - $5,177 (5.177% x $100,000) = $94,823.
(9)The Highest Anniversary Value benefit base is reduced dollar-fordollar and
pro-rata, as follows: $128,785 (Highest Anniversary Value benefit base as of
the last contract date anniversary) - $5,151 (Annual Withdrawal Amount) -
$1,690 [($128,785 - $5,151) x 1.367%] = $121,944. The Highest Anniversary
Value benefit base is reset to the Protected Benefit account value after
withdrawals ($128,224).
(10)The Roll-up to age 80 benefit base and the GMIB benefit base are reduced
pro-rata, as follows: $128,785 (the Roll-up benefit bases as of the last
contract date anniversary) - $1,760 (1.367% x $128,785) = $127,025. The
Roll-up to age 80 benefit base and GMIB benefit base are reset to the
Protected Benefit Account Value after withdrawal $128,224.
(11)As a result of the Excess withdrawal in contract year 6, the Annual
withdrawal amount in contract year 7 is $5,129 [4% (Roll-up rate)
x $128,224 (the Roll-up benefit bases as of the sixth contract
anniversary)].
VII-4
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
EXAMPLE FOR RMD WEALTH GUARD DEATH BENEFIT
EXAMPLE #3
Assuming $100,000 is invested in the Protected Benefit variable investment
options, with no additional contributions, and no transfers, the RMD Wealth
Guard death benefit base for an owner age 65 would be calculated as follows:
---------------------------------------------------------------------------------------------
PROTECTED PROTECTED
ASSUMED BENEFIT BENEFIT RMD WEALTH
END NET ACCOUNT VALUE ACCOUNT VALUE GUARD DEATH
OF CONTRACT YEAR AGE RETURN BEFORE WITHDRAWAL WITHDRAWAL AFTER WITHDRAWAL BENEFIT BASE
---------------------------------------------------------------------------------------------
0 65 $100,000 $100,000 $100,000/(1)/
---------------------------------------------------------------------------------------------
1 66 3.0% $103,000 $ 0 $103,000 $103,000/(1)/
---------------------------------------------------------------------------------------------
2 67 4.0% $107,120 $ 0 $107,120 $107,120/(1)/
---------------------------------------------------------------------------------------------
3 68 (1.0)% $106,049 $5,000 $101,049 $102,069/(1)(2)/
---------------------------------------------------------------------------------------------
4 69 3.0% $104,080 $ 0 $104,080 $104,080/(1)/
---------------------------------------------------------------------------------------------
5 70 4.0% $108,243 $ 0 $108,243 $108,243/(1)/
---------------------------------------------------------------------------------------------
Alternative #1: Contract Year 6 (Owner withdraws RMD withdrawal amount)
6 71 5.0% $113,656 $4,293 $109,363 $109,363/(3)/
---------------------------------------------------------------------------------------------
7 72 3.0% $112,644 $ 0 $112,644 $109,363/(4)/
---------------------------------------------------------------------------------------------
Alternative #2: Contract Year 6 (Owner takes a withdrawal in excess of RMD withdrawal
limit)
6 71 5.0% $113,656 $6,000 $107,656 $107,656/(5)/
---------------------------------------------------------------------------------------------
7 72 3.0% $110,885 $ 0 $110,885 $107,656/(6)/
---------------------------------------------------------------------------------------------
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the RMD Wealth Guard death benefit base is as
follows:
(1)The RMD Wealth Guard death benefit base is equal to the greater of the
Protected Benefit account value and the RMD Wealth Guard death benefit base
as of the last contract date anniversary.
For example:
. At the end of contract year 2, the RMD Wealth Guard death benefit base is
$107,120. This is because the Protected Benefit account value ($107,120)
is greater than the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($103,000).
(2)The RMD Wealth Guard death benefit base would be reduced by a withdrawal on
a pro rata basis because the contract owner has not yet reached the calendar
year in which he or she will turn age 701/2 and is not yet eligible for
RMDs; accordingly, all withdrawals made prior to the calendar year in which
the contract owner turns age 701/2 are treated as Excess RMD withdrawals and
reduce the benefit base on a pro rata basis.
For example:
. At the end of contract year 3, the RMD Wealth Guard death benefit base is
$102,069. After a withdrawal of $5,000, the Protected Benefit account
value is $101,049 (= $107,120 x (1 - 1.0%) - $5,000). Since the
withdrawal amount of $5,000 equals 4.715% of the Protected Benefit
account value before the withdrawal ($5,000 divided by $106,049 =
4.715%), the RMD Wealth Guard death benefit base would be reduced by
$5,051 (4.715% of $107,120) to be $102,069 (= $107,120 - $5,051). The RMD
Wealth Guard death benefit base is greater than the Protected Benefit
account value. As you can see, when the benefit base is greater than the
account value, a pro rata deduction means the benefit base is reduced by
more than the amount of the withdrawals.
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS RMD WITHDRAWAL AMOUNT)
(3)The RMD Wealth Guard death benefit base would not be reduced by a RMD
withdrawal because it is not an Excess RMD withdrawal.
For example:
. At the end of contract year 6, the RMD Wealth Guard death benefit base is
$109,363. This is because the Protected Benefit account value ($109,363)
is greater than the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($108,243). In addition, since the withdrawal
of the $4,293 was not an Excess RMD withdrawal, it did not reduce the
benefit base.
(4)After the contract anniversary date following the first RMD withdrawal, the
RMD Wealth Guard death benefit base stops resetting.
For example:
. At the end of contract year 7, the RMD Wealth Guard death benefit base is
$109,363. This is the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($109,363).
VII-5
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES A WITHDRAWAL IN EXCESS OF RMD
WITHDRAWAL LIMIT)
(5)The RMD Wealth Guard death benefit base would be reduced by the portion of
the withdrawal amount in excess of RMD withdrawal limit on a pro rata basis.
For example:
. At the end of contract year 6, the RMD Wealth Guard death benefit base is
$107,656. The withdrawal amount of $6,000 exceeds the RMD withdrawal
limit ($4,293) by $1,707. The portion of the withdrawal amount in excess
of RMD withdrawal limit ($1,707) equals 1.502% of the Protected Benefit
account value ($1,707 divided by $113,656 = 1.502%) and RMD Wealth Guard
death benefit base would be reduced by 1.502% to be $106,618 (= $108,243
- $1,625). The RMD Wealth Guard death benefit base resets to the
Protected Benefit account value ($107,656).
(6)After a withdrawal is taken in the calendar year in which the age turns
701/2 or later year, the RMD Wealth Guard death benefit base stops resetting.
For example:
. At the end of contract year 7, the RMD Wealth Guard death benefit base is
$107,656. This is the RMD Wealth Guard death benefit base as of the last
contract date anniversary ($107,656).
VII-6
APPENDIX VII: EXAMPLES OF HOW WITHDRAWALS AFFECT YOUR GUARANTEED BENEFIT BASES
Appendix VIII: Rules regarding contributions to your contract
--------------------------------------------------------------------------------
The following tables describes the contribution rules for all contract Series
and types.
-----------------------------------------------------------------------------------------------
CONTRACT TYPE NQ
-----------------------------------------------------------------------------------------------
ISSUE AGES . 0-85 (FOR SERIES B)
. 0-70 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $5,000 (FOR SERIES B)
CONTRIBUTION AMOUNT . $10,000 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT FOR ALL SERIES:
CONTRIBUTION AMOUNT . $500
(IF PERMITTED) . $100 monthly under the automatic investment program
. $300 quarterly under the automatic investment program
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS FOR ALL SERIES:
. After-tax money.
. Paid to us by check or transfer of contract value in a
tax-deferred exchange under Section 1035 of the Internal Revenue
Code.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS FOR SERIES B:
ON CONTRIBUTIONS TO THE . If you elect the GMIB with the "Greater of" GMDB, you may make
CONTRACT/(1)/ subsequent contributions to your Protected Benefit account
through age 70, or if later, until the first contract date
anniversary. If you do not elect the "Greater of" GMDB, you may
make subsequent contributions to your Protected Benefit account
through age 80, or if later, until the first contract date
anniversary. However, regardless of the benefits elected, once
you make a withdrawal from your Protected Benefit account,
subsequent contributions to your Protected Benefit account will
no longer be permitted.
. You may make subsequent contributions to your Investment account
through age 85 or the first contract date anniversary.
FOR SERIES CP(R):
. You may make subsequent contributions to your Investment account
and your Protected Benefit account through age 70 or, if later,
until the first contract date anniversary. However, once you make
a withdrawal from your Protected Benefit account, subsequent
contributions to your Protected Benefit account will no longer be
permitted.
-----------------------------------------------------------------------------------------------
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
VIII-1
APPENDIX VIII: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
-----------------------------------------------------------------------------------------------
CONTRACT TYPE TRADITIONAL IRA
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-85 (FOR SERIES B)
. 20-70 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $5,000 (FOR SERIES B)
CONTRIBUTION AMOUNT . $10,000 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT FOR ALL SERIES:
CONTRIBUTION AMOUNT . $50
(IF PERMITTED) . $100 monthly under the automatic investment program
. $300 quarterly under the automatic investment program
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS FOR ALL SERIES:
. 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 IRA contributions.
. Additional catch-up contributions.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS FOR SERIES B:
ON CONTRIBUTIONS TO THE . If you elect the GMIB with the "Greater of" GMDB, you may make
CONTRACT/(1)/ subsequent contributions to your Protected Benefit account
through age 70, or if later, until the first contract date
anniversary. If you do not elect the "Greater of" GMDB, you may
make subsequent contributions to your Protected Benefit account
through age 80, or if later, until the first contract date
anniversary. However, regardless of the benefits elected, once
you make a withdrawal from your Protected Benefit account,
subsequent contributions to your Protected Benefit account will
no longer be permitted.
. You may make subsequent contributions to your Investment account
through age 85 or, if later, until the first contract date
anniversary.
FOR SERIES CP(R):
. You may make subsequent contributions to your Investment account
and your Protected Benefit account through age 70 or, if later,
until the first contract date anniversary. However, once you make
a withdrawal from your Protected Benefit account, subsequent
contributions to your Protected Benefit account will no longer be
permitted.
FOR ALL SERIES:
. Contributions made after age 701/2 must be net of required
minimum distributions; you also cannot make regular IRA
contributions after age 701/2.
. Although we accept regular IRA contributions (limited to $5,500
per calendar year) under traditional IRA contracts, we intend
that the contract be used primarily for rollover and direct
transfer contributions.
. Subsequent 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.
. If you elect the RMD Wealth Guard death benefit, you may make
subsequent contributions to your Protected Benefit account
through age 64, or if later, until your first contract date
anniversary (if you were age 20-64 on your contract date); or
through age 68, or if later, until 90 days after your contract
date (if you were age 65-68 on your contract date). If you do not
elect the RMD Wealth Guard death benefit, you may make subsequent
contributions through age 80, or if later, the first contract
date anniversary. However, regardless of the benefits you
elected, once you make a withdrawal from your Protected Benefit
account, subsequent contributions to your Protected Benefit
account will no longer be permitted.
-----------------------------------------------------------------------------------------------
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
VIII-2
APPENDIX VIII: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
-----------------------------------------------------------------------------------------------
CONTRACT TYPE ROTH IRA
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-85 (FOR SERIES B)
. 20-70 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $5,000 (FOR SERIES B)
CONTRIBUTION AMOUNT . $10,000 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT FOR ALL SERIES:
CONTRIBUTION AMOUNT . $50
(IF PERMITTED) . $100 monthly under the automatic investment program
. $300 quarterly under the automatic investment program
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS FOR ALL SERIES:
. Rollovers from another Roth IRA.
. Rollovers from a "designated Roth contribution account" under
specified retirement plans.
. Conversion rollovers from a traditional IRA or other eligible
retirement plan.
. Direct custodian-to-custodian transfers from another Roth IRA.
. Regular Roth IRA contributions.
. Additional catch-up contributions.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS FOR SERIES B:
ON CONTRIBUTIONS TO THE . If you elect the GMIB with the "Greater of" GMDB, you may make
CONTRACT/(1)/ subsequent contributions to your Protected Benefit account
through age 70, or if later, until the first contract date
anniversary. If you do not elect the "Greater of" GMDB, you may
make subsequent contributions to your Protected Benefit account
through age 80, or if later, until the first contract date
anniversary. However, regardless of the benefits elected, once
you make a withdrawal from your Protected Benefit account,
subsequent contributions to your Protected Benefit account will
no longer be permitted.
. You may make subsequent contributions to your Investment account
through age 85 or, if later, until the first contract date
anniversary.
FOR SERIES CP(R):
. You may make subsequent contributions to your Investment account
and your Protected Benefit account until the later of attained
age 70 or, if later, until the first contract date anniversary.
However, once you make a withdrawal from your Protected Benefit
account, subsequent contributions to your Protected Benefit
account will no longer be permitted.
FOR ALL SERIES:
. Conversion rollovers after age 701/2 must be net of required
minimum distributions for the traditional IRA or other eligible
retirement plan that is the source of the conversion rollover.
. Although we accept Roth IRA contributions (limited to $5,500 per
calendar year) under Roth IRA contracts, we intend that the
contract be used primarily for rollover and direct transfer
contributions.
. Subsequent 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.
-----------------------------------------------------------------------------------------------
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
VIII-3
APPENDIX VIII: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
-----------------------------------------------------------------------------------------------
CONTRACT TYPE SEP IRA
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-85 (FOR SERIES B)
. 20-70 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $5,000 (FOR SERIES B)
CONTRIBUTION AMOUNT . $10,000 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT FOR ALL SERIES:
CONTRIBUTION AMOUNT . $500
(IF PERMITTED)
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS FOR ALL SERIES:
. An employer can annually contribute an amount for an employee up
to the lesser of 25% of eligible compensation or $40,000 ($54,000
after cost of living adjustment for 2017).
. 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.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS FOR SERIES B:
ON CONTRIBUTIONS TO THE . If you elect the GMIB with the "Greater of" GMDB, you may make
CONTRACT/(1)/ subsequent contributions to your Protected Benefit account
through age 70, or if later, until the first contract date
anniversary. If you do not elect the "Greater of" GMDB, you may
make subsequent contributions to your Protected Benefit account
through age 80, or if later, until the first contract date
anniversary. However, regardless of the benefits elected, once
you make a withdrawal from your Protected Benefit account,
subsequent contributions to your Protected Benefit account will
no longer be permitted.
. You may make subsequent contributions to your Investment account
through age 85, or if later, until the first contract date
anniversary.
FOR SERIES CP(R):
. You may make subsequent contributions to your Investment account
and your Protected Benefit account through age 70, or, if later,
until the first contract date anniversary. However, once you make
a withdrawal from your Protected Benefit account, subsequent
contributions to your Protected Benefit account will no longer be
permitted.
FOR ALL SERIES:
. Any contributions made after age 701/2 must be net of required
minimum distributions.
. If you elect the RMD Wealth Guard death benefit, you may make
subsequent contributions to your Protected Benefit account
through age 64, or if later, until your first contract date
anniversary (if you were age 20-64 on your contract date); or
through age 68, or if later, until 90 days after your contract
date (if you were age 65-68 on your contract date). If you do not
elect the RMD Wealth Guard death benefit, you may make subsequent
contributions through age 80, or if later, until the first
contract date anniversary. However, regardless of the benefits
you elected, once you make a withdrawal from your Protected
Benefit account, subsequent contributions to your Protected
Benefit account will no longer be permitted.
-----------------------------------------------------------------------------------------------
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
VIII-4
APPENDIX VIII: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
----------------------------------------------------------------------------------------------------------
INHERITED IRA BENEFICIARY CONTINUATION CONTRACT (TRADITIONAL IRA OR
ROTH IRA)
CONTRACT TYPE (AVAILABLE FOR SERIES B ONLY)
----------------------------------------------------------------------------------------------------------
ISSUE AGES . 0-70
. Not available for Series CP(R)
----------------------------------------------------------------------------------------------------------
MINIMUM INITIAL . $5,000 (FOR SERIES B)
CONTRIBUTION AMOUNT
----------------------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT . $1,000
CONTRIBUTION AMOUNT
(IF PERMITTED)
----------------------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS . Direct custodian-to- custodian transfers of your interest as a
death beneficiary of the deceased 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.
----------------------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS . Any subsequent contributions must be from the same type of IRA of
ON CONTRIBUTIONS TO THE the same deceased owner.
CONTRACT/(1)/ . You may make subsequent contributions to the Protected Benefit
account until age 80. However, once you make a withdrawal from
the Protected Benefit account, subsequent contributions to the
Protected Benefit account will no longer be permitted.
. You may make subsequent contributions to the Investment account
through age 85.
. No additional contributions are permitted to Inherited IRA
contracts issued as a Non-spousal beneficiary direct rollover
from an Applicable Plan.
----------------------------------------------------------------------------------------------------------
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
VIII-5
APPENDIX VIII: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
-----------------------------------------------------------------------------------------------
CONTRACT TYPE QP
-----------------------------------------------------------------------------------------------
ISSUE AGES . 20-75 (FOR SERIES B)
. 20-70 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM INITIAL . $5,000 (FOR SERIES B)
CONTRIBUTION AMOUNT . $10,000 (FOR SERIES CP(R))
-----------------------------------------------------------------------------------------------
MINIMUM SUBSEQUENT FOR ALL SERIES:
CONTRIBUTION AMOUNT (IF . $500
SUBSEQUENT
CONTRIBUTIONS ARE
PERMITTED)
-----------------------------------------------------------------------------------------------
SOURCE OF CONTRIBUTIONS FOR ALL SERIES:
. Only transfer contributions from other investments within an
existing qualified plan trust.
. The plan must be qualified under Section 401(a) of the Internal
Revenue Code.
. For 401(k) plans, transferred contributions may not include any
after-tax contributions, including designated Roth contributions.
-----------------------------------------------------------------------------------------------
ADDITIONAL LIMITATIONS FOR SERIES B:
ON CONTRIBUTIONS TO THE . If you elect the GMIB with the "Greater of" GMDB, you may make
CONTRACT/(1)/ subsequent contributions to your Protected Benefit account
through age 70, or if later, until the first contract date
anniversary. If you do not elect the "Greater of" GMDB, you may
make subsequent contributions to your Protected Benefit account
through age 75, or if later, until the first contract date
anniversary. However, regardless of the benefits elected, once
you make a withdrawal from your Protected Benefit account,
subsequent contributions to your Protected Benefit account will
no longer be permitted.
. You may make subsequent contributions to your Investment account
through age 75 or, if later, until the first contract date
anniversary.
FOR SERIES CP(R):
. You may make subsequent contributions to your Investment account
and your Protected Benefit account through age 70 or, if later,
until the first contract date anniversary. However, once you make
a withdrawal from your Protected Benefit account, subsequent
contributions to your Protected Benefit account will no longer be
permitted.
FOR ALL SERIES:
. 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.
. For QPDC contracts only: If you elect the RMD Wealth Guard death
benefit, you may make subsequent contributions to your Protected
Benefit account through age 64, or if later, until your first
contract date anniversary (if you were age 20-64 on your contract
date); or through age 68, or if later, until 90 days after your
contract date (if you were age 65-68 on your contract date). If
you do not elect the RMD Wealth Guard death benefit, you may make
subsequent contributions through age 80, or if later, until the
first contract date anniversary. However, regardless of the
benefits you elected, once you make a withdrawal from your
Protected Benefit account, subsequent contributions to your
Protected Benefit account will no longer be permitted.
See Appendix II earlier in this Prospectus for a discussion on purchase considerations for QP
contracts.
-----------------------------------------------------------------------------------------------
(1)In addition to the limitations described here, we also reserve the right to
refuse to accept any contribution under the contract at any time or change
our contribution limits and requirements. We further reserve the right to
discontinue the acceptance of, or place additional limitations on,
contributions to the contract or contributions and/or transfers into your
Protected Benefit account at any time.
VIII-6
APPENDIX VIII: RULES REGARDING CONTRIBUTIONS TO YOUR CONTRACT
Appendix IX: 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
1.30%.
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, 2016.
-----------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
-----------------------------------------------------------------------------------------------------------
7TWELVE/TM/ BALANCED PORTFOLIO
-----------------------------------------------------------------------------------------------------------
Unit value $ 10.82 $ 10.04 $ 10.98
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,940 4,291 4,675
-----------------------------------------------------------------------------------------------------------
AB VPS INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------
Unit value $ 10.22 $ 11.14 $ 11.54
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 512 556 505
-----------------------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE-ALT 25
-----------------------------------------------------------------------------------------------------------
Unit value $ 11.54 $ 10.60 $ 11.23
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 496 504 350
-----------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH-ALT 20
-----------------------------------------------------------------------------------------------------------
Unit value $ 14.26 $ 13.19 $ 13.91
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 983 826 628
-----------------------------------------------------------------------------------------------------------
ALL ASSET MODERATE GROWTH-ALT 15
-----------------------------------------------------------------------------------------------------------
Unit value $ 10.98 $ 10.24 $ 10.78
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,119 938 662
-----------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP MID CAP VALUE FUND
-----------------------------------------------------------------------------------------------------------
Unit value $ 23.97 $ 19.79 $ 20.38
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,616 1,957 1,354
-----------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) BOND FUND/SM/
-----------------------------------------------------------------------------------------------------------
Unit value $ 10.08 $ 9.93 $ 10.07
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,417 1,452 627
-----------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL CAPITALIZATION FUND/SM/
-----------------------------------------------------------------------------------------------------------
Unit value $ 11.65 $ 11.59 $ 11.75
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 596 552 326
-----------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)
-----------------------------------------------------------------------------------------------------------
Unit value $ 9.71 $ 9.37 $ 9.82
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,023 1,676 960
-----------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE STRATEGY
-----------------------------------------------------------------------------------------------------------
Unit value $ 14.07 $ 13.06 $ 13.39
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 137,739 117,206 78,119
-----------------------------------------------------------------------------------------------------------
AXA BALANCED STRATEGY
-----------------------------------------------------------------------------------------------------------
Unit value $ 13.41 $ 12.82 $ 13.08
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 126,288 113,639 91,852
-----------------------------------------------------------------------------------------------------------
IX-1
APPENDIX IX: 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, 2016. (CONTINUED)
-----------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
-----------------------------------------------------------------------------
AXA CONSERVATIVE GROWTH STRATEGY
-----------------------------------------------------------------------------
Unit value $ 12.69 $ 12.25 $ 12.47
-----------------------------------------------------------------------------
Number of units outstanding (000's) 66,225 57,851 48,006
-----------------------------------------------------------------------------
AXA CONSERVATIVE STRATEGY
-----------------------------------------------------------------------------
Unit value $ 11.31 $ 11.14 $ 11.31
-----------------------------------------------------------------------------
Number of units outstanding (000's) 42,959 35,647 29,801
-----------------------------------------------------------------------------
AXA GROWTH STRATEGY
-----------------------------------------------------------------------------
Unit value $ 14.96 $ 14.02 $ 14.35
-----------------------------------------------------------------------------
Number of units outstanding (000's) 146,086 127,820 91,406
-----------------------------------------------------------------------------
AXA INTERNATIONAL CORE MANAGED VOLATILITY
-----------------------------------------------------------------------------
Unit value $ 10.29 $ 10.41 $ 11.02
-----------------------------------------------------------------------------
Number of units outstanding (000's) 306 300 263
-----------------------------------------------------------------------------
AXA LARGE CAP VALUE MANAGED VOLATILITY
-----------------------------------------------------------------------------
Unit value $ 19.15 $ 16.82 $ 17.75
-----------------------------------------------------------------------------
Number of units outstanding (000's) 329 290 240
-----------------------------------------------------------------------------
AXA MID CAP VALUE MANAGED VOLATILITY
-----------------------------------------------------------------------------
Unit value $ 21.21 $ 18.27 $ 19.19
-----------------------------------------------------------------------------
Number of units outstanding (000's) 148 124 100
-----------------------------------------------------------------------------
AXA MODERATE ALLOCATION
-----------------------------------------------------------------------------
Unit value $ 13.15 $ 12.65 $ 12.93
-----------------------------------------------------------------------------
Number of units outstanding (000's) 5,512 5,429 4,693
-----------------------------------------------------------------------------
AXA MODERATE GROWTH STRATEGY
-----------------------------------------------------------------------------
Unit value $ 14.18 $ 13.42 $ 13.71
-----------------------------------------------------------------------------
Number of units outstanding (000's) 251,896 237,051 202,854
-----------------------------------------------------------------------------
AXA NATURAL RESOURCES
-----------------------------------------------------------------------------
Unit value $ 8.33 $ 6.51 $ 8.89
-----------------------------------------------------------------------------
Number of units outstanding (000's) 334 175 85
-----------------------------------------------------------------------------
AXA REAL ESTATE
-----------------------------------------------------------------------------
Unit value $ 11.14 $ 10.78 $ 11.15
-----------------------------------------------------------------------------
Number of units outstanding (000's) 577 439 271
-----------------------------------------------------------------------------
AXA/AB DYNAMIC GROWTH
-----------------------------------------------------------------------------
Unit value $ 9.69 $ 9.44 --
-----------------------------------------------------------------------------
Number of units outstanding (000's) 28,220 11,856 --
-----------------------------------------------------------------------------
AXA/AB DYNAMIC MODERATE GROWTH
-----------------------------------------------------------------------------
Unit value $ 12.05 $ 11.77 $ 12.00
-----------------------------------------------------------------------------
Number of units outstanding (000's) 135,772 131,091 103,758
-----------------------------------------------------------------------------
AXA/AB SMALL CAP GROWTH
-----------------------------------------------------------------------------
Unit value $ 23.55 $ 21.19 $ 22.11
-----------------------------------------------------------------------------
Number of units outstanding (000's) 916 894 739
-----------------------------------------------------------------------------
IX-2
APPENDIX IX: 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, 2016. (CONTINUED)
-------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
-------------------------------------------------------------------------------
AXA/DOUBLELINE OPPORTUNISTIC CORE PLUS BOND
-------------------------------------------------------------------------------
Unit value $ 10.09 $ 9.75 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 248 63 --
-------------------------------------------------------------------------------
AXA/GOLDMAN SACHS STRATEGIC ALLOCATION
-------------------------------------------------------------------------------
Unit value $ 10.04 $ 9.60 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 24,175 8,973 --
-------------------------------------------------------------------------------
AXA/INVESCO STRATEGIC ALLOCATION
-------------------------------------------------------------------------------
Unit value $ 9.68 $ 9.50 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 14,099 5,585 --
-------------------------------------------------------------------------------
AXA/JANUS ENTERPRISE
-------------------------------------------------------------------------------
Unit value $ 15.46 $16.38 $17.56
-------------------------------------------------------------------------------
Number of units outstanding (000's) 1,218 1,319 1,315
-------------------------------------------------------------------------------
AXA/LEGG MASON STRATEGIC ALLOCATION
-------------------------------------------------------------------------------
Unit value $ 10.57 -- --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 4,367 -- --
-------------------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH
-------------------------------------------------------------------------------
Unit value $ 19.30 $18.31 $16.63
-------------------------------------------------------------------------------
Number of units outstanding (000's) 1,118 641 561
-------------------------------------------------------------------------------
BLACKROCK GLOBAL ALLOCATION V.I. FUND
-------------------------------------------------------------------------------
Unit value $ 12.89 $12.58 $12.87
-------------------------------------------------------------------------------
Number of units outstanding (000's) 3,907 3,781 3,721
-------------------------------------------------------------------------------
BLACKROCK LARGE CAP GROWTH V.I. FUND
-------------------------------------------------------------------------------
Unit value $ 21.27 $20.03 $19.80
-------------------------------------------------------------------------------
Number of units outstanding (000's) 1,153 1,149 900
-------------------------------------------------------------------------------
CHARTER/SM/ ALTERNATIVE 100 MODERATE
-------------------------------------------------------------------------------
Unit value $ 9.64 $ 8.83 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 40 17 --
-------------------------------------------------------------------------------
CHARTER/SM/ INTERNATIONAL MODERATE
-------------------------------------------------------------------------------
Unit value $ 9.70 $ 9.33 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 13 10 --
-------------------------------------------------------------------------------
CHARTER/SM/ MODERATE
-------------------------------------------------------------------------------
Unit value $ 9.95 $ 9.48 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 177 171 --
-------------------------------------------------------------------------------
CHARTER/SM/ MODERATE GROWTH
-------------------------------------------------------------------------------
Unit value $ 9.94 $ 9.43 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 164 117 --
-------------------------------------------------------------------------------
CHARTER/SM/ REAL ASSETS
-------------------------------------------------------------------------------
Unit value $ 9.64 $ 8.67 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 27 14 --
-------------------------------------------------------------------------------
IX-3
APPENDIX IX: 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, 2016. (CONTINUED)
------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
------------------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP VALUE
------------------------------------------------------------------------------------
Unit value $ 18.08 $ 14.63 $ 17.06
------------------------------------------------------------------------------------
Number of units outstanding (000's) 306 295 242
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH PORTFOLIO
------------------------------------------------------------------------------------
Unit value $ 10.25 $ 10.29 $ 10.63
------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,586 2,368 641
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE APPRECIATION PORTFOLIO
------------------------------------------------------------------------------------
Unit value $ 10.69 $ 9.90 --
------------------------------------------------------------------------------------
Number of units outstanding (000's) 685 388 --
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE DIVIDEND STRATEGY PORTFOLIO
------------------------------------------------------------------------------------
Unit value $ 11.31 $ 9.99 $ 10.59
------------------------------------------------------------------------------------
Number of units outstanding (000's) 990 680 160
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
------------------------------------------------------------------------------------
Unit value $ 10.62 $ 9.86 --
------------------------------------------------------------------------------------
Number of units outstanding (000's) 282 190 --
------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE EQUITY
------------------------------------------------------------------------------------
Unit value $ 19.65 $ 16.88 $ 18.22
------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,386 4,345 3,867
------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY INCOME
------------------------------------------------------------------------------------
Unit value $ 20.08 $ 18.01 $ 18.56
------------------------------------------------------------------------------------
Number of units outstanding (000's) 720 707 682
------------------------------------------------------------------------------------
EQ/COMMON STOCK INDEX
------------------------------------------------------------------------------------
Unit value $ 21.13 $ 19.16 $ 19.43
------------------------------------------------------------------------------------
Number of units outstanding (000's) 989 894 630
------------------------------------------------------------------------------------
EQ/CORE BOND INDEX
------------------------------------------------------------------------------------
Unit value $ 10.62 $ 10.61 $ 10.70
------------------------------------------------------------------------------------
Number of units outstanding (000's) 13,957 14,039 14,262
------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY PLUS
------------------------------------------------------------------------------------
Unit value $ 7.81 $ 7.21 $ 8.92
------------------------------------------------------------------------------------
Number of units outstanding (000's) 268 165 135
------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
------------------------------------------------------------------------------------
Unit value $ 20.98 $ 19.11 $ 19.20
------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,944 3,812 2,626
------------------------------------------------------------------------------------
EQ/GAMCO MERGERS AND ACQUISITIONS
------------------------------------------------------------------------------------
Unit value $ 13.61 $ 12.81 $ 12.64
------------------------------------------------------------------------------------
Number of units outstanding (000's) 517 493 459
------------------------------------------------------------------------------------
EQ/GAMCO SMALL COMPANY VALUE
------------------------------------------------------------------------------------
Unit value $ 24.41 $ 20.06 $ 21.56
------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,995 5,609 4,915
------------------------------------------------------------------------------------
IX-4
APPENDIX IX: 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, 2016. (CONTINUED)
----------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
----------------------------------------------------------------------------
EQ/HIGH YIELD BOND
----------------------------------------------------------------------------
Unit value $11.17 $10.13 $10.59
----------------------------------------------------------------------------
Number of units outstanding (000's) 462 433 308
----------------------------------------------------------------------------
EQ/INTERMEDIATE GOVERNMENT BOND
----------------------------------------------------------------------------
Unit value $10.08 $10.16 $10.25
----------------------------------------------------------------------------
Number of units outstanding (000's) 6,304 6,132 6,321
----------------------------------------------------------------------------
EQ/INTERNATIONAL EQUITY INDEX
----------------------------------------------------------------------------
Unit value $11.14 $11.04 $11.43
----------------------------------------------------------------------------
Number of units outstanding (000's) 1,202 1,095 614
----------------------------------------------------------------------------
EQ/INVESCO COMSTOCK
----------------------------------------------------------------------------
Unit value $20.29 $17.51 $18.91
----------------------------------------------------------------------------
Number of units outstanding (000's) 937 957 827
----------------------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX
----------------------------------------------------------------------------
Unit value $21.51 $20.50 $19.80
----------------------------------------------------------------------------
Number of units outstanding (000's) 1,094 867 654
----------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX
----------------------------------------------------------------------------
Unit value $20.64 $17.95 $19.03
----------------------------------------------------------------------------
Number of units outstanding (000's) 729 623 445
----------------------------------------------------------------------------
EQ/MFS INTERNATIONAL GROWTH
----------------------------------------------------------------------------
Unit value $12.65 $12.57 $12.71
----------------------------------------------------------------------------
Number of units outstanding (000's) 1,048 981 797
----------------------------------------------------------------------------
EQ/MID CAP INDEX
----------------------------------------------------------------------------
Unit value $23.31 $19.69 $20.54
----------------------------------------------------------------------------
Number of units outstanding (000's) 1,417 1,171 873
----------------------------------------------------------------------------
EQ/MONEY MARKET
----------------------------------------------------------------------------
Unit value $ 9.12 $ 9.24 $ 9.36
----------------------------------------------------------------------------
Number of units outstanding (000's) 5,367 3,966 2,305
----------------------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL
----------------------------------------------------------------------------
Unit value $15.71 $15.91 $15.62
----------------------------------------------------------------------------
Number of units outstanding (000's) 1,591 1,622 1,226
----------------------------------------------------------------------------
EQ/PIMCO GLOBAL REAL RETURN
----------------------------------------------------------------------------
Unit value $10.45 $ 9.59 $ 9.95
----------------------------------------------------------------------------
Number of units outstanding (000's) 665 424 236
----------------------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND
----------------------------------------------------------------------------
Unit value $ 9.51 $ 9.45 $ 9.60
----------------------------------------------------------------------------
Number of units outstanding (000's) 1,734 1,568 1,378
----------------------------------------------------------------------------
EATON VANCE VT FLOATING-RATE INCOME FUND
----------------------------------------------------------------------------
Unit value $10.45 $ 9.72 --
----------------------------------------------------------------------------
Number of units outstanding (000's) 375 197 --
----------------------------------------------------------------------------
IX-5
APPENDIX IX: 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, 2016. (CONTINUED)
------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
------------------------------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX
------------------------------------------------------------------------------------------------
Unit value $22.84 $19.20 $20.38
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 959 799 577
------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH STOCK
------------------------------------------------------------------------------------------------
Unit value $21.56 $21.56 $19.82
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,158 2,810 2,063
------------------------------------------------------------------------------------------------
FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $19.76 $18.59 $18.75
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,315 4,103 3,348
------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID CAP PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $19.34 $17.50 $18.03
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,072 1,980 1,568
------------------------------------------------------------------------------------------------
FIDELITY(R) VIP STRATEGIC INCOME PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $12.71 $11.92 $12.32
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,546 2,881 2,133
------------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME ALLOCATION PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $10.46 $ 9.70 $10.16
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 95 49 16
------------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES DIVIDEND & INCOME ALLOCATION PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $13.63 $12.35 $12.51
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,351 817 432
------------------------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS ALLOCATION VIP FUND
------------------------------------------------------------------------------------------------
Unit value $15.06 $13.49 $14.57
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 660 684 703
------------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND
------------------------------------------------------------------------------------------------
Unit value $14.65 $13.01 $14.19
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,369 2,469 2,040
------------------------------------------------------------------------------------------------
FRANKLIN RISING DIVIDENDS VIP FUND
------------------------------------------------------------------------------------------------
Unit value $13.98 $12.21 $12.84
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,386 1,888 1,550
------------------------------------------------------------------------------------------------
FRANKLIN STRATEGIC INCOME VIP FUND
------------------------------------------------------------------------------------------------
Unit value $12.98 $12.18 $12.84
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,056 2,914 2,500
------------------------------------------------------------------------------------------------
GOLDMAN SACHS VIT MID CAP VALUE FUND
------------------------------------------------------------------------------------------------
Unit value $20.26 $18.12 $20.29
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,014 1,033 889
------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS FUND
------------------------------------------------------------------------------------------------
Unit value $10.42 $10.06 $10.14
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 691 554 118
------------------------------------------------------------------------------------------------
IX-6
APPENDIX IX: 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, 2016. (CONTINUED)
--------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
--------------------------------------------------------------------------
HARTFORD GROWTH OPPORTUNITIES HLS FUND
--------------------------------------------------------------------------
Unit value $11.58 $11.85 $10.80
--------------------------------------------------------------------------
Number of units outstanding (000's) 1,114 885 98
--------------------------------------------------------------------------
INVESCO V.I. DIVERSIFIED DIVIDEND FUND
--------------------------------------------------------------------------
Unit value $19.97 $17.67 $17.58
--------------------------------------------------------------------------
Number of units outstanding (000's) 2,267 1,264 582
--------------------------------------------------------------------------
INVESCO V.I. EQUITY AND INCOME FUND
--------------------------------------------------------------------------
Unit value $10.85 $ 9.57 --
--------------------------------------------------------------------------
Number of units outstanding (000's) 807 428 --
--------------------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND
--------------------------------------------------------------------------
Unit value $15.28 $15.21 $15.68
--------------------------------------------------------------------------
Number of units outstanding (000's) 2,773 2,783 2,423
--------------------------------------------------------------------------
INVESCO V.I. HIGH YIELD FUND
--------------------------------------------------------------------------
Unit value $12.33 $11.27 $11.82
--------------------------------------------------------------------------
Number of units outstanding (000's) 1,405 1,292 1,045
--------------------------------------------------------------------------
INVESCO V.I. INTERNATIONAL GROWTH FUND
--------------------------------------------------------------------------
Unit value $12.98 $13.24 $13.77
--------------------------------------------------------------------------
Number of units outstanding (000's) 2,062 2,021 1,681
--------------------------------------------------------------------------
INVESCO V.I. MID CAP CORE EQUITY FUND
--------------------------------------------------------------------------
Unit value $16.17 $14.48 $15.32
--------------------------------------------------------------------------
Number of units outstanding (000's) 590 559 470
--------------------------------------------------------------------------
INVESCO V.I. SMALL CAP EQUITY FUND
--------------------------------------------------------------------------
Unit value $20.72 $18.77 $20.18
--------------------------------------------------------------------------
Number of units outstanding (000's) 460 387 253
--------------------------------------------------------------------------
IVY VIP ASSET STRATEGY
--------------------------------------------------------------------------
Unit value $10.65 $11.08 $12.25
--------------------------------------------------------------------------
Number of units outstanding (000's) 1,541 1,837 1,962
--------------------------------------------------------------------------
IVY VIP DIVIDEND OPPORTUNITIES
--------------------------------------------------------------------------
Unit value $17.34 $16.43 $16.99
--------------------------------------------------------------------------
Number of units outstanding (000's) 526 560 524
--------------------------------------------------------------------------
IVY VIP ENERGY
--------------------------------------------------------------------------
Unit value $12.67 $ 9.54 $12.42
--------------------------------------------------------------------------
Number of units outstanding (000's) 1,872 1,617 1,315
--------------------------------------------------------------------------
IVY VIP GLOBAL NATURAL RESOURCES
--------------------------------------------------------------------------
Unit value $ 7.97 $ 6.52 $ 8.51
--------------------------------------------------------------------------
Number of units outstanding (000's) 895 902 858
--------------------------------------------------------------------------
IVY VIP HIGH INCOME
--------------------------------------------------------------------------
Unit value $16.49 $14.38 $15.58
--------------------------------------------------------------------------
Number of units outstanding (000's) 4,604 4,507 4,025
--------------------------------------------------------------------------
IX-7
APPENDIX IX: 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, 2016. (CONTINUED)
-----------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
-----------------------------------------------------------------------------------------
IVY VIP MID CAP GROWTH
-----------------------------------------------------------------------------------------
Unit value $19.81 $18.91 $20.34
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,570 1,540 1,320
-----------------------------------------------------------------------------------------
IVY VIP SCIENCE AND TECHNOLOGY
-----------------------------------------------------------------------------------------
Unit value $20.89 $20.84 $21.74
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,721 1,755 1,445
-----------------------------------------------------------------------------------------
IVY VIP SMALL CAP GROWTH
-----------------------------------------------------------------------------------------
Unit value $17.84 $17.56 $17.46
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 836 839 605
-----------------------------------------------------------------------------------------
LAZARD RETIREMENT EMERGING MARKETS EQUITY PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $10.40 $ 8.73 $11.06
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 4,388 4,303 3,914
-----------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND -- BOND DEBENTURE PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $13.21 $11.94 $12.28
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,072 2,524 1,193
-----------------------------------------------------------------------------------------
MFS(R) INTERNATIONAL VALUE PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $16.25 $15.85 $15.11
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,940 5,208 3,639
-----------------------------------------------------------------------------------------
MFS(R) INVESTORS TRUST SERIES
-----------------------------------------------------------------------------------------
Unit value $19.10 $17.87 $18.11
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 299 302 259
-----------------------------------------------------------------------------------------
MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO
-----------------------------------------------------------------------------------------
Unit value $19.06 $18.24 --
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 381 345 --
-----------------------------------------------------------------------------------------
MFS(R) UTILITIES SERIES
-----------------------------------------------------------------------------------------
Unit value $16.86 $15.36 $18.25
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,610 1,516 1,258
-----------------------------------------------------------------------------------------
MULTIMANAGER AGGRESSIVE EQUITY
-----------------------------------------------------------------------------------------
Unit value $19.05 $18.66 $18.18
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 381 360 287
-----------------------------------------------------------------------------------------
MULTIMANAGER MID CAP GROWTH
-----------------------------------------------------------------------------------------
Unit value $22.01 $20.89 $21.49
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 417 428 330
-----------------------------------------------------------------------------------------
MULTIMANAGER MID CAP VALUE
-----------------------------------------------------------------------------------------
Unit value $24.31 $20.68 $22.18
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 276 230 198
-----------------------------------------------------------------------------------------
MULTIMANAGER TECHNOLOGY
-----------------------------------------------------------------------------------------
Unit value $11.06 $10.28 --
-----------------------------------------------------------------------------------------
Number of units outstanding (000's) 352 135 --
-----------------------------------------------------------------------------------------
IX-8
APPENDIX IX: 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, 2016. (CONTINUED)
--------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
--------------------------------------------------------------------------------------------
NEUBERGER BERMAN ABSOLUTE RETURN MULTI-MANAGER PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 9.04 $ 9.22 $ 9.84
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 77 33 10
--------------------------------------------------------------------------------------------
NEUBERGER BERMAN INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 9.07 $ 9.36 $ 9.34
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 153 121 37
--------------------------------------------------------------------------------------------
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 6.89 $ 6.08 $ 8.29
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,391 1,435 1,326
--------------------------------------------------------------------------------------------
PIMCO REAL RETURN PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $11.37 $10.97 $11.43
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 3,229 3,271 3,349
--------------------------------------------------------------------------------------------
PIMCO TOTAL RETURN PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $11.71 $11.57 $11.68
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,160 6,778 6,307
--------------------------------------------------------------------------------------------
PROFUND VP BIOTECHNOLOGY
--------------------------------------------------------------------------------------------
Unit value $27.68 $33.17 $32.54
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,030 1,074 779
--------------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
--------------------------------------------------------------------------------------------
Unit value $ 9.64 $ 9.26 $ 9.61
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 230 208 91
--------------------------------------------------------------------------------------------
QS LEGG MASON DYNAMIC MULTI-STRATEGY VIT PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 9.21 $ 9.38 $10.05
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 201 189 41
--------------------------------------------------------------------------------------------
T. ROWE PRICE HEALTH SCIENCES PORTFOLIO -- II
--------------------------------------------------------------------------------------------
Unit value $31.79 $36.07 $32.49
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 2,012 2,006 1,356
--------------------------------------------------------------------------------------------
TEMPLETON DEVELOPING MARKETS VIP FUND
--------------------------------------------------------------------------------------------
Unit value $ 9.02 $ 7.78 $ 9.80
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 664 623 503
--------------------------------------------------------------------------------------------
TEMPLETON GLOBAL BOND VIP FUND
--------------------------------------------------------------------------------------------
Unit value $12.21 $12.01 $12.72
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 5,998 6,273 5,711
--------------------------------------------------------------------------------------------
VANECK VIP GLOBAL HARD ASSETS FUND
--------------------------------------------------------------------------------------------
Unit value $ 8.80 $ 6.21 $ 9.49
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,999 1,979 1,980
--------------------------------------------------------------------------------------------
IX-9
APPENDIX IX: 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
1.70%.
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, 2016.
-----------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
-----------------------------------------------------------------------------------------------------------
7TWELVE/TM/ BALANCED PORTFOLIO
-----------------------------------------------------------------------------------------------------------
Unit value $ 10.62 $ 9.89 $ 10.86
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 606 726 854
-----------------------------------------------------------------------------------------------------------
AB VPS INTERNATIONAL GROWTH
-----------------------------------------------------------------------------------------------------------
Unit value $ 9.93 $ 10.87 $ 11.30
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 54 57 50
-----------------------------------------------------------------------------------------------------------
ALL ASSET AGGRESSIVE-ALT 25
-----------------------------------------------------------------------------------------------------------
Unit value $ 11.36 $ 10.47 $ 11.14
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 178 149 89
-----------------------------------------------------------------------------------------------------------
ALL ASSET GROWTH-ALT 20
-----------------------------------------------------------------------------------------------------------
Unit value $ 13.86 $ 12.86 $ 13.63
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 76 71 57
-----------------------------------------------------------------------------------------------------------
ALL ASSET MODERATE GROWTH-ALT 15
-----------------------------------------------------------------------------------------------------------
Unit value $ 10.81 $ 10.12 $ 10.70
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 143 146 91
-----------------------------------------------------------------------------------------------------------
AMERICAN CENTURY VP MID CAP VALUE FUND
-----------------------------------------------------------------------------------------------------------
Unit value $ 23.29 $ 19.31 $ 19.96
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 476 418 238
-----------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) BOND FUND/SM/
-----------------------------------------------------------------------------------------------------------
Unit value $ 9.92 $ 9.82 $ 10.00
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 827 612 186
-----------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) GLOBAL SMALL CAPITALIZATION FUND/SM/
-----------------------------------------------------------------------------------------------------------
Unit value $ 11.47 $ 11.46 $ 11.66
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 135 142 91
-----------------------------------------------------------------------------------------------------------
AMERICAN FUNDS INSURANCE SERIES(R) NEW WORLD FUND(R)
-----------------------------------------------------------------------------------------------------------
Unit value $ 9.56 $ 9.26 $ 9.75
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 544 552 425
-----------------------------------------------------------------------------------------------------------
AXA AGGRESSIVE STRATEGY
-----------------------------------------------------------------------------------------------------------
Unit value $ 13.80 $ 12.87 $ 13.24
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 32,455 34,040 25,298
-----------------------------------------------------------------------------------------------------------
AXA BALANCED STRATEGY
-----------------------------------------------------------------------------------------------------------
Unit value $ 13.03 $ 12.51 $ 12.81
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 18,120 18,444 14,966
-----------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE GROWTH STRATEGY
-----------------------------------------------------------------------------------------------------------
Unit value $ 12.33 $ 11.95 $ 12.21
-----------------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 7,750 7,478 6,059
-----------------------------------------------------------------------------------------------------------
IX-10
APPENDIX IX: 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, 2016. (CONTINUED)
-------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
-------------------------------------------------------------------------------
AXA CONSERVATIVE STRATEGY
-------------------------------------------------------------------------------
Unit value $ 10.98 $ 10.87 $ 11.07
-------------------------------------------------------------------------------
Number of units outstanding (000's) 6,268 6,147 3,631
-------------------------------------------------------------------------------
AXA GROWTH STRATEGY
-------------------------------------------------------------------------------
Unit value $ 14.53 $ 13.68 $ 14.05
-------------------------------------------------------------------------------
Number of units outstanding (000's) 30,365 30,632 22,820
-------------------------------------------------------------------------------
AXA INTERNATIONAL CORE MANAGED VOLATILITY
-------------------------------------------------------------------------------
Unit value $ 10.00 $ 10.15 $ 10.79
-------------------------------------------------------------------------------
Number of units outstanding (000's) 38 42 29
-------------------------------------------------------------------------------
AXA LARGE CAP VALUE MANAGED VOLATILITY
-------------------------------------------------------------------------------
Unit value $ 18.60 $ 16.41 $ 17.39
-------------------------------------------------------------------------------
Number of units outstanding (000's) 43 569 24
-------------------------------------------------------------------------------
AXA MID CAP VALUE MANAGED VOLATILITY
-------------------------------------------------------------------------------
Unit value $ 20.61 $ 18 $ 19
-------------------------------------------------------------------------------
Number of units outstanding (000's) 12 13 15
-------------------------------------------------------------------------------
AXA MODERATE ALLOCATION
-------------------------------------------------------------------------------
Unit value $ 12.78 $ 12.34 $ 12.66
-------------------------------------------------------------------------------
Number of units outstanding (000's) 729 687 480
-------------------------------------------------------------------------------
AXA MODERATE GROWTH STRATEGY
-------------------------------------------------------------------------------
Unit value $ 13.78 $ 13.09 $ 13.42
-------------------------------------------------------------------------------
Number of units outstanding (000's) 30,996 31,612 25,325
-------------------------------------------------------------------------------
AXA NATURAL RESOURCES
-------------------------------------------------------------------------------
Unit value $ 8.20 $ 6.44 $ 8.83
-------------------------------------------------------------------------------
Number of units outstanding (000's) 38 19 13
-------------------------------------------------------------------------------
AXA REAL ESTATE
-------------------------------------------------------------------------------
Unit value $ 10.96 $ 10.66 $ 11.06
-------------------------------------------------------------------------------
Number of units outstanding (000's) 146 129 81
-------------------------------------------------------------------------------
AXA/AB DYNAMIC GROWTH
-------------------------------------------------------------------------------
Unit value $ 9.63 $ 9.42 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 2,700 2,189 --
-------------------------------------------------------------------------------
AXA/AB DYNAMIC MODERATE GROWTH
-------------------------------------------------------------------------------
Unit value $ 11.77 $ 11.54 $ 11.81
-------------------------------------------------------------------------------
Number of units outstanding (000's) 26,435 29,024 23,726
-------------------------------------------------------------------------------
AXA/AB SMALL CAP GROWTH
-------------------------------------------------------------------------------
Unit value $ 22.88 $ 20.67 $ 21.66
-------------------------------------------------------------------------------
Number of units outstanding (000's) 517 241 162
-------------------------------------------------------------------------------
AXA/DOUBLELINE OPPORTUNISTIC CORE PLUS BOND
-------------------------------------------------------------------------------
Unit value $ 10.02 $ 9.72 --
-------------------------------------------------------------------------------
Number of units outstanding (000's) 49 26 --
-------------------------------------------------------------------------------
IX-11
APPENDIX IX: 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, 2016. (CONTINUED)
--------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
--------------------------------------------------------------------------
AXA/GOLDMAN SACHS STRATEGIC ALLOCATION
--------------------------------------------------------------------------
Unit value $ 9.97 $ 9.58 --
--------------------------------------------------------------------------
Number of units outstanding (000's) 1,334 933 --
--------------------------------------------------------------------------
AXA/INVESCO STRATEGIC ALLOCATION
--------------------------------------------------------------------------
Unit value $ 9.62 $ 9.47 --
--------------------------------------------------------------------------
Number of units outstanding (000's) 730 536 --
--------------------------------------------------------------------------
AXA/JANUS ENTERPRISE
--------------------------------------------------------------------------
Unit value $15.02 $15.97 $17.20
--------------------------------------------------------------------------
Number of units outstanding (000's) 163 187 175
--------------------------------------------------------------------------
AXA/LEGG MASON STRATEGIC ALLOCATION
--------------------------------------------------------------------------
Unit value $10.53 -- --
--------------------------------------------------------------------------
Number of units outstanding (000's) 10 -- --
--------------------------------------------------------------------------
AXA/LOOMIS SAYLES GROWTH
--------------------------------------------------------------------------
Unit value $18.75 $17.86 $16.29
--------------------------------------------------------------------------
Number of units outstanding (000's) 128 84 59
--------------------------------------------------------------------------
BLACKROCK GLOBAL ALLOCATION V.I. FUND
--------------------------------------------------------------------------
Unit value $12.52 $12.27 $12.61
--------------------------------------------------------------------------
Number of units outstanding (000's) 838 810 604
--------------------------------------------------------------------------
BLACKROCK LARGE CAP GROWTH V.I. FUND
--------------------------------------------------------------------------
Unit value $20.66 $19.54 $19.39
--------------------------------------------------------------------------
Number of units outstanding (000's) 147 152 121
--------------------------------------------------------------------------
CHARTER/SM/ ALTERNATIVE 100 MODERATE
--------------------------------------------------------------------------
Unit value $ 9.57 $ 8.80 --
--------------------------------------------------------------------------
Number of units outstanding (000's) 4 -- --
--------------------------------------------------------------------------
CHARTER/SM/ INTERNATIONAL MODERATE
--------------------------------------------------------------------------
Unit value $ 9.63 $ 9.29 --
--------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
--------------------------------------------------------------------------
CHARTER/SM/ MODERATE
--------------------------------------------------------------------------
Unit value $ 9.87 $ 9.45 --
--------------------------------------------------------------------------
Number of units outstanding (000's) 11 7 --
--------------------------------------------------------------------------
CHARTER/SM/ MODERATE GROWTH
--------------------------------------------------------------------------
Unit value $ 9.86 $ 9.39 --
--------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
--------------------------------------------------------------------------
CHARTER/SM/ REAL ASSETS
--------------------------------------------------------------------------
Unit value $ 9.57 $ 8.64 --
--------------------------------------------------------------------------
Number of units outstanding (000's) -- -- --
--------------------------------------------------------------------------
CHARTER/SM/ SMALL CAP VALUE
--------------------------------------------------------------------------
Unit value $22.15 $17.99 $21.07
--------------------------------------------------------------------------
Number of units outstanding (000's) 365 532 52
--------------------------------------------------------------------------
IX-12
APPENDIX IX: 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, 2016. (CONTINUED)
------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE AGGRESSIVE GROWTH PORTFOLIO
------------------------------------------------------------------------------------
Unit value $10.14 $10.22 $10.61
------------------------------------------------------------------------------------
Number of units outstanding (000's) 519 546 134
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE APPRECIATION PORTFOLIO
------------------------------------------------------------------------------------
Unit value $10.61 $ 9.86 --
------------------------------------------------------------------------------------
Number of units outstanding (000's) 38 30 --
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE DIVIDEND STRATEGY PORTFOLIO
------------------------------------------------------------------------------------
Unit value $11.20 $ 9.92 $10.56
------------------------------------------------------------------------------------
Number of units outstanding (000's) 230 189 26
------------------------------------------------------------------------------------
CLEARBRIDGE VARIABLE MID CAP PORTFOLIO
------------------------------------------------------------------------------------
Unit value $10.54 $ 9.82 --
------------------------------------------------------------------------------------
Number of units outstanding (000's) 30 25 --
------------------------------------------------------------------------------------
EQ/BLACKROCK BASIC VALUE EQUITY
------------------------------------------------------------------------------------
Unit value $19.09 $16.46 $17.85
------------------------------------------------------------------------------------
Number of units outstanding (000's) 785 803 616
------------------------------------------------------------------------------------
EQ/BOSTON ADVISORS EQUITY INCOME
------------------------------------------------------------------------------------
Unit value $19.51 $17.57 $18.18
------------------------------------------------------------------------------------
Number of units outstanding (000's) 136 140 102
------------------------------------------------------------------------------------
EQ/COMMON STOCK INDEX
------------------------------------------------------------------------------------
Unit value $20.52 $18.69 $19.03
------------------------------------------------------------------------------------
Number of units outstanding (000's) 119 134 107
------------------------------------------------------------------------------------
EQ/CORE BOND INDEX
------------------------------------------------------------------------------------
Unit value $10.32 $10.35 $10.48
------------------------------------------------------------------------------------
Number of units outstanding (000's) 785 682 505
------------------------------------------------------------------------------------
EQ/EMERGING MARKETS EQUITY PLUS
------------------------------------------------------------------------------------
Unit value $ 7.69 $ 7.13 $ 8.86
------------------------------------------------------------------------------------
Number of units outstanding (000's) 98 67 76
------------------------------------------------------------------------------------
EQ/EQUITY 500 INDEX
------------------------------------------------------------------------------------
Unit value $20.38 $18.64 $18.81
------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,359 1,678 1,173
------------------------------------------------------------------------------------
EQ/GAMCO MERGERS AND ACQUISITIONS
------------------------------------------------------------------------------------
Unit value $13.23 $12.49 $12.38
------------------------------------------------------------------------------------
Number of units outstanding (000's) 192 205 154
------------------------------------------------------------------------------------
EQ/GAMCO SMALL COMPANY VALUE
------------------------------------------------------------------------------------
Unit value $23.72 $19.57 $21.11
------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,117 1,102 839
------------------------------------------------------------------------------------
EQ/HIGH YIELD BOND
------------------------------------------------------------------------------------
Unit value $10.99 $10.01 $10.51
------------------------------------------------------------------------------------
Number of units outstanding (000's) 104 99 76
------------------------------------------------------------------------------------
IX-13
APPENDIX IX: 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, 2016. (CONTINUED)
----------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
----------------------------------------------------------------------------
EQ/INTERMEDIATE GOVERNMENT BOND
----------------------------------------------------------------------------
Unit value $ 9.79 $ 9.91 $10.04
----------------------------------------------------------------------------
Number of units outstanding (000's) 177 224 227
----------------------------------------------------------------------------
EQ/INTERNATIONAL EQUITY INDEX
----------------------------------------------------------------------------
Unit value $10.82 $10.77 $11.20
----------------------------------------------------------------------------
Number of units outstanding (000's) 368 321 510
----------------------------------------------------------------------------
EQ/INVESCO COMSTOCK
----------------------------------------------------------------------------
Unit value $19.71 $17.08 $18.52
----------------------------------------------------------------------------
Number of units outstanding (000's) 99 125 112
----------------------------------------------------------------------------
EQ/LARGE CAP GROWTH INDEX
----------------------------------------------------------------------------
Unit value $20.90 $19.99 $19.39
----------------------------------------------------------------------------
Number of units outstanding (000's) 148 150 126
----------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX
----------------------------------------------------------------------------
Unit value $20.05 $17.51 $18.64
----------------------------------------------------------------------------
Number of units outstanding (000's) 177 649 338
----------------------------------------------------------------------------
EQ/MFS INTERNATIONAL GROWTH
----------------------------------------------------------------------------
Unit value $12.29 $12.26 $12.45
----------------------------------------------------------------------------
Number of units outstanding (000's) 250 259 170
----------------------------------------------------------------------------
EQ/MID CAP INDEX
----------------------------------------------------------------------------
Unit value $22.64 $19.21 $20.11
----------------------------------------------------------------------------
Number of units outstanding (000's) 732 306 386
----------------------------------------------------------------------------
EQ/MONEY MARKET
----------------------------------------------------------------------------
Unit value $ 8.86 $ 9.01 $ 9.17
----------------------------------------------------------------------------
Number of units outstanding (000's) 885 824 577
----------------------------------------------------------------------------
EQ/OPPENHEIMER GLOBAL
----------------------------------------------------------------------------
Unit value $15.26 $15.52 $15.30
----------------------------------------------------------------------------
Number of units outstanding (000's) 368 405 284
----------------------------------------------------------------------------
EQ/PIMCO GLOBAL REAL RETURN
----------------------------------------------------------------------------
Unit value $10.28 $ 9.48 $ 9.88
----------------------------------------------------------------------------
Number of units outstanding (000's) 159 140 63
----------------------------------------------------------------------------
EQ/PIMCO ULTRA SHORT BOND
----------------------------------------------------------------------------
Unit value $ 9.24 $ 9.21 $ 9.40
----------------------------------------------------------------------------
Number of units outstanding (000's) 430 373 394
----------------------------------------------------------------------------
EATON VANCE VT FLOATING-RATE INCOME FUND
----------------------------------------------------------------------------
Unit value $10.37 $ 9.68 --
----------------------------------------------------------------------------
Number of units outstanding (000's) 97 62 --
----------------------------------------------------------------------------
EQ/SMALL COMPANY INDEX
----------------------------------------------------------------------------
Unit value $22.18 $18.72 $19.96
----------------------------------------------------------------------------
Number of units outstanding (000's) 658 203 235
----------------------------------------------------------------------------
IX-14
APPENDIX IX: 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, 2016. (CONTINUED)
------------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
------------------------------------------------------------------------------------------------
EQ/T. ROWE PRICE GROWTH STOCK
------------------------------------------------------------------------------------------------
Unit value $20.95 $21.03 $19.41
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 642 632 489
------------------------------------------------------------------------------------------------
FIDELITY(R) VIP CONTRAFUND(R) PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $19.20 $18.13 $18.37
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 761 1,282 573
------------------------------------------------------------------------------------------------
FIDELITY(R) VIP MID CAP PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $18.78 $17.07 $17.66
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 382 401 294
------------------------------------------------------------------------------------------------
FIDELITY(R) VIP STRATEGIC INCOME PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $12.35 $11.63 $12.07
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 797 650 454
------------------------------------------------------------------------------------------------
FIRST TRUST MULTI INCOME ALLOCATION PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $10.36 $ 9.64 $10.13
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 35 26 4
------------------------------------------------------------------------------------------------
FIRST TRUST/DOW JONES DIVIDEND & INCOME ALLOCATION PORTFOLIO
------------------------------------------------------------------------------------------------
Unit value $13.37 $12.17 $12.37
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 285 241 96
------------------------------------------------------------------------------------------------
FRANKLIN FOUNDING FUNDS ALLOCATION VIP FUND
------------------------------------------------------------------------------------------------
Unit value $14.65 $13.16 $14.28
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 159 127 142
------------------------------------------------------------------------------------------------
FRANKLIN INCOME VIP FUND
------------------------------------------------------------------------------------------------
Unit value $14.24 $12.70 $13.90
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 882 887 684
------------------------------------------------------------------------------------------------
FRANKLIN RISING DIVIDENDS VIP FUND
------------------------------------------------------------------------------------------------
Unit value $13.77 $12.07 $12.74
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 545 516 516
------------------------------------------------------------------------------------------------
FRANKLIN STRATEGIC INCOME VIP FUND
------------------------------------------------------------------------------------------------
Unit value $12.61 $11.88 $12.57
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 714 776 695
------------------------------------------------------------------------------------------------
GOLDMAN SACHS VIT MID CAP VALUE FUND
------------------------------------------------------------------------------------------------
Unit value $19.68 $17.67 $19.87
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 202 226 172
------------------------------------------------------------------------------------------------
HARTFORD CAPITAL APPRECIATION HLS FUND
------------------------------------------------------------------------------------------------
Unit value $10.32 $ 9.99 $10.11
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 56 59 20
------------------------------------------------------------------------------------------------
HARTFORD GROWTH OPPORTUNITIES HLS FUND
------------------------------------------------------------------------------------------------
Unit value $11.46 $11.77 $10.77
------------------------------------------------------------------------------------------------
Number of units outstanding (000's) 206 192 6
------------------------------------------------------------------------------------------------
IX-15
APPENDIX IX: 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, 2016. (CONTINUED)
--------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
--------------------------------------------------------------------------
INVESCO V.I. DIVERSIFIED DIVIDEND FUND
--------------------------------------------------------------------------
Unit value $17.31 $15.37 $15.36
--------------------------------------------------------------------------
Number of units outstanding (000's) 592 412 114
--------------------------------------------------------------------------
INVESCO V.I. EQUITY AND INCOME FUND
--------------------------------------------------------------------------
Unit value $10.76 $ 9.53 --
--------------------------------------------------------------------------
Number of units outstanding (000's) 16 16 --
--------------------------------------------------------------------------
INVESCO V.I. GLOBAL REAL ESTATE FUND
--------------------------------------------------------------------------
Unit value $14.85 $14.83 $15.36
--------------------------------------------------------------------------
Number of units outstanding (000's) 660 692 542
--------------------------------------------------------------------------
INVESCO V.I. HIGH YIELD FUND
--------------------------------------------------------------------------
Unit value $12.04 $11.05 $11.63
--------------------------------------------------------------------------
Number of units outstanding (000's) 327 302 199
--------------------------------------------------------------------------
INVESCO V.I. INTERNATIONAL GROWTH FUND
--------------------------------------------------------------------------
Unit value $12.61 $12.91 $13.49
--------------------------------------------------------------------------
Number of units outstanding (000's) 309 326 230
--------------------------------------------------------------------------
INVESCO V.I. MID CAP CORE EQUITY FUND
--------------------------------------------------------------------------
Unit value $15.71 $14.12 $15.01
--------------------------------------------------------------------------
Number of units outstanding (000's) 47 46 46
--------------------------------------------------------------------------
INVESCO V.I. SMALL CAP EQUITY FUND
--------------------------------------------------------------------------
Unit value $20.13 $18.31 $19.76
--------------------------------------------------------------------------
Number of units outstanding (000's) 45 42 30
--------------------------------------------------------------------------
IVY VIP ASSET STRATEGY
--------------------------------------------------------------------------
Unit value $10.40 $10.86 $12.05
--------------------------------------------------------------------------
Number of units outstanding (000's) 722 778 928
--------------------------------------------------------------------------
IVY VIP DIVIDEND OPPORTUNITIES
--------------------------------------------------------------------------
Unit value $16.85 $16.03 $16.64
--------------------------------------------------------------------------
Number of units outstanding (000's) 95 106 80
--------------------------------------------------------------------------
IVY VIP ENERGY
--------------------------------------------------------------------------
Unit value $12.31 $ 9.31 $12.16
--------------------------------------------------------------------------
Number of units outstanding (000's) 333 286 176
--------------------------------------------------------------------------
IVY VIP GLOBAL NATURAL RESOURCES
--------------------------------------------------------------------------
Unit value $ 7.74 $ 6.36 $ 8.34
--------------------------------------------------------------------------
Number of units outstanding (000's) 137 148 119
--------------------------------------------------------------------------
IVY VIP HIGH INCOME
--------------------------------------------------------------------------
Unit value $16.02 $14.02 $15.26
--------------------------------------------------------------------------
Number of units outstanding (000's) 1,327 1,408 1,216
--------------------------------------------------------------------------
IVY VIP MID CAP GROWTH
--------------------------------------------------------------------------
Unit value $19.24 $18.45 $19.92
--------------------------------------------------------------------------
Number of units outstanding (000's) 302 317 265
--------------------------------------------------------------------------
IX-16
APPENDIX IX: 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, 2016. (CONTINUED)
--------------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
--------------------------------------------------------------------------------------------
IVY VIP SCIENCE AND TECHNOLOGY
--------------------------------------------------------------------------------------------
Unit value $20.29 $20.33 $21.29
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 283 295 198
--------------------------------------------------------------------------------------------
IVY VIP SMALL CAP GROWTH
--------------------------------------------------------------------------------------------
Unit value $17.33 $17.13 $17.10
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 168 186 117
--------------------------------------------------------------------------------------------
LAZARD RETIREMENT EMERGING MARKETS EQUITY PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $10.11 $ 8.51 $10.83
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 768 845 699
--------------------------------------------------------------------------------------------
LORD ABBETT SERIES FUND -- BOND DEBENTURE PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $12.90 $11.70 $12.09
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,097 1,087 441
--------------------------------------------------------------------------------------------
MFS(R) INTERNATIONAL VALUE PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $15.79 $15.46 $14.80
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,316 1,260 825
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MFS(R) INVESTORS TRUST SERIES
--------------------------------------------------------------------------------------------
Unit value $18.56 $17.43 $17.74
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 59 56 46
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MFS(R) MASSACHUSETTS INVESTORS GROWTH STOCK PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $18.52 $17.80 --
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 51 44 --
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MFS(R) UTILITIES SERIES
--------------------------------------------------------------------------------------------
Unit value $16.38 $14.98 $17.88
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 354 355 265
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MULTIMANAGER AGGRESSIVE EQUITY
--------------------------------------------------------------------------------------------
Unit value $78.16 $76.86 $75.19
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 15 15 10
--------------------------------------------------------------------------------------------
MULTIMANAGER MID CAP GROWTH
--------------------------------------------------------------------------------------------
Unit value $16.89 $16.09 $16.62
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 130 135 88
--------------------------------------------------------------------------------------------
MULTIMANAGER MID CAP VALUE
--------------------------------------------------------------------------------------------
Unit value $21.29 $18.18 $19.59
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 378 68 63
--------------------------------------------------------------------------------------------
MULTIMANAGER TECHNOLOGY
--------------------------------------------------------------------------------------------
Unit value $10.97 $10.24 --
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 85 54 --
--------------------------------------------------------------------------------------------
NEUBERGER BERMAN ABSOLUTE RETURN MULTI-MANAGER PORTFOLIO
--------------------------------------------------------------------------------------------
Unit value $ 8.95 $ 9.16 $ 9.81
--------------------------------------------------------------------------------------------
Number of units outstanding (000's) 31 30 5
--------------------------------------------------------------------------------------------
IX-17
APPENDIX IX: 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, 2016. (CONTINUED)
--------------------------------------------------------------------------------------
FOR THE YEAR ENDING DECEMBER 31,
--------------------------------
2016 2015 2014
--------------------------------------------------------------------------------------
NEUBERGER BERMAN INTERNATIONAL EQUITY PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $ 8.98 $ 9.30 $ 9.32
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 51 56 28
--------------------------------------------------------------------------------------
PIMCO COMMODITYREALRETURN(R) STRATEGY PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $ 6.70 $ 5.93 $ 8.12
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 355 342 265
--------------------------------------------------------------------------------------
PIMCO REAL RETURN PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $11.05 $10.70 $11.19
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 596 725 700
--------------------------------------------------------------------------------------
PIMCO TOTAL RETURN PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $11.38 $11.29 $11.44
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,609 1,672 1,407
--------------------------------------------------------------------------------------
PROFUND VP BIOTECHNOLOGY
--------------------------------------------------------------------------------------
Unit value $26.89 $32.36 $31.87
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 221 255 148
--------------------------------------------------------------------------------------
PUTNAM VT DIVERSIFIED INCOME FUND
--------------------------------------------------------------------------------------
Unit value $ 9.54 $ 9.20 $ 9.59
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 25 29 12
--------------------------------------------------------------------------------------
QS LEGG MASON DYNAMIC MULTI-STRATEGY VIT PORTFOLIO
--------------------------------------------------------------------------------------
Unit value $ 9.12 $ 9.32 $10.02
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 33 81 12
--------------------------------------------------------------------------------------
T. ROWE PRICE HEALTH SCIENCES PORTFOLIO -- II
--------------------------------------------------------------------------------------
Unit value $30.88 $35.18 $31.82
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 401 418 293
--------------------------------------------------------------------------------------
TEMPLETON DEVELOPING MARKETS VIP FUND
--------------------------------------------------------------------------------------
Unit value $ 8.76 $ 7.59 $ 9.60
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 755 111 94
--------------------------------------------------------------------------------------
TEMPLETON GLOBAL BOND VIP FUND
--------------------------------------------------------------------------------------
Unit value $11.86 $11.72 $12.46
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 1,599 1,805 1,431
--------------------------------------------------------------------------------------
VANECK VIP GLOBAL HARD ASSETS FUND
--------------------------------------------------------------------------------------
Unit value $ 8.55 $ 6.06 $ 9.29
--------------------------------------------------------------------------------------
Number of units outstanding (000's) 314 285 277
--------------------------------------------------------------------------------------
IX-18
APPENDIX IX: CONDENSED FINANCIAL INFORMATION
Statement of additional information
--------------------------------------------------------------------------------
TABLE OF CONTENTS
PAGE
Who is AXA Equitable? 2
Unit Values 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
HOW TO OBTAIN A RETIREMENT CORNERSTONE(R) SERIES 17 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
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Please send me a Retirement Cornerstone(R) Series 17 SAI for SEPARATE ACCOUNT NO. 70 dated
______, 2017.
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Name
------------------------------------------------------------------------------------------------------
Address
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City State Zip
#433239