GOODWIN | PROCTER Christopher E. Palmer Goodwin Procter LLP
202.346.4253 Counselors at Law
cpalmer@ 901 New York Avenue, N.W.
goodwinprocter.com Washington, D.C. 20001
T: 202.346.4000
F: 202.346.4444
April 3, 2009
Via EDGAR
Sonny Oh, Esquire
Office of Insurance Products
Division of Investment Management
Securities and Exchange Commission
100 F Street NE
Washington, DC 20549
Re: AXA Equitable Life Insurance Company
Separate Account No. 49
Accumulator Plus Contract
Post-Effective Amendment No. 40 filed on Form N-4 (the "Amendment")
File Nos. 811-07659 and 333-64749
Dear Sonny,
Attached for your information is a revised draft prospectus that incorporates
product changes since our last filed post-effective amendment on February 6,
2009. The main changes reflected in this draft include:
--The default fund for the Guaranteed withdrawal benefit for life is now
AXA Balanced Strategy Investment Option
--5 year waiting period for dollar-for-dollar withdrawals
--2 year waiting period for annual resets
--4% rollup rate
--Rollup/ratchet, last GMIB exercise is now age 80 instead of age 80-85
--Different benefit charges
--Withdrawal charge is not applicable when GMIB exercised at age 80
--Different percentages regarding category and variable investment option
minimums and maximums
--Clarifications on contribution limitations
We are working on responses to the staff's comments on the Amendment. When we
respond to the comments, we will provide a copy of the prospectus marked to show
all changes in the
GOODWIN | PROCTER
Sonny Oh, Esquire
April 3, 2009
Page 2
prospectus since the February 6 filing, including the product changes noted
above and reflected in the attached revised prospectus. Please don't hesitate to
contact me if you have any questions.
Yours truly,
/s/ Christopher E. Palmer
Christopher E. Palmer
CEP:am
cc: Dodie Kent, AXA Equitable
Sun-Jin Moon, AXA Equitable
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Accumulator(R) Plus(SM)
A combination variable and fixed deferred annuity contract
PROSPECTUS DATED ____, 2009
Please read and keep this Prospectus for future reference. It contains important
information that you should know before purchasing or taking any other action
under your contract. This Prospectus supersedes all prior prospectuses and
supplements. You should read the prospectuses for each Trust, which contain
important information about the portfolios.
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WHAT IS ACCUMULATOR(R) PLUS(SM)?
Accumulator(R) Plus(SM) is a deferred annuity contract issued by AXA Equitable
Life Insurance Company. It provides for the accumulation of retirement savings
and for income. The contract offers death benefit protection and a number of
payout options. You invest to accumulate value on a tax-deferred basis in one or
more of our variable investment options or the guaranteed interest option
("investment options").
This Prospectus is not your contract. Your contract and any endorsements, riders
and data pages as identified in your contract are the entire contract between
you and AXA Equitable and governs with respect to all features, benefits, rights
and obligations. The description of the contract's provisions in this Prospectus
is current as of the date of this Prospectus; however, because certain
provisions may be changed after the date of this Prospectus in accordance with
the contract, the description of the contract's provisions in this Prospectus is
qualified in its entirety by the terms of the actual contract. The contract
should be read carefully. You have the right to cancel the contract within a
certain number of days after receipt of the contract. You should read this
Prospectus in conjunction with any applicable supplements. 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.
Please see Appendix VI later in this Prospectus for more information on state
availability and/or variations of certain features and benefits. All optional
features and benefits described in this Prospectus may not be available at the
time you purchase the contract. We have the right to restrict availability of
any optional feature or benefit. In addition, not all optional features and
benefits may be available in combination with other optional features and
benefits. We can refuse to accept any application or contribution from you at
any time, including after you purchase the contract.
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Variable investment options
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o AXA Balanced Strategy* o EQ/Capital Guardian Research
o AXA Conservative Growth Strategy* o EQ/Common Stock Index
o AXA Conservative Strategy* o EQ/Core Bond Index
o AXA Growth Strategy* o EQ/Davis New York Venture
o AXA Moderate Growth Strategy* o EQ/Equity 500 Index
o EQ/AllianceBernstein International o EQ/Evergreen Omega
o EQ/AllianceBernstein Small Cap o EQ/Intermediate Government Bond
Growth Index
o EQ/AXA Franklin Small Cap Value Core o EQ/International Core PLUS
o EQ/AXA Franklin Templeton Founding o EQ/International Growth
Strategy Core o EQ/JPMorgan Value Opportunities
o EQ/AXA Templeton Growth Core o EQ/Large Cap Core PLUS
o EQ/BlackRock Basic Value Equity o EQ/Large Cap Growth Index
o EQ/BlackRock International Value o EQ/Large Cap Growth PLUS
o EQ/Boston Advisors Equity Income o EQ/Large Cap Value Index
o EQ/Calvert Socially Responsible o EQ/Large Cap Value PLUS
o EQ/Capital Guardian Growth o EQ/Lord Abbett Growth and Income
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Variable investment options
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o EQ/Lord Abbett Large Cap Core o EQ/Van Kampen Comstock
o EQ/Mid Cap Index o EQ/Van Kampen Mid Cap Growth
o EQ/Mid Cap Value PLUS o Multimanager Aggressive Equity
o EQ/Money Market o Multimanager Core Bond
o EQ/Oppenheimer Global o Multimanager International Equity
o EQ/Oppenheimer Main Street o Multimanager Large Cap Core Equity
Opportunity o Multimanager Large Cap Growth
o EQ/Oppenheimer Main Street o Multimanager Large Cap Value
Small Cap o Multimanager Mid Cap Growth
o EQ/Quality Bond PLUS o Multimanager Mid Cap Value
o EQ/Small Company Index o Multimanager Small Cap Growth
o EQ/T. Rowe Price Growth Stock o Multimanager Small Cap Value
o EQ/UBS Growth and Income o Multimanager Technology
* The "AXA Strategic Allocation" portfolios.
Each variable investment option is a subaccount of Separate Account No. 49. Each
variable investment option, in turn, invests in a corresponding securities
portfolio ("Portfolio") of AXA Premier VIP Trust or the EQ Advisors Trust (the
"Trusts"). Your investment results in a variable investment option will depend
on the investment performance of the related Portfolio. At any time, we have the
right to limit or terminate your contributions and allocations to any of the
investment options and to limit the number of variable investment options which
you may elect. The contract also includes a guaranteed interest option and an
account for special money market dollar cost averaging.
You must allocate amounts under either Option A or Option B, which are discussed
later in this Prospectus. Option A generally requires that 100% of your account
value be invested in the AXA Strategic Allocation Portfolios, the EQ/Money
Market Portfolio, the guaranteed interest option or the account for special
money market dollar cost averaging. Option B permits allocation to additional
variable investment options subject to certain category and percentage
limitations. If you elect the Guaranteed minimum income benefit I--Asset
Allocation ("GMIB I--Asset Allocation"), your contract will be restricted to
Option A. If you don't elect a Guaranteed minimum income benefit or if you elect
Guaranteed minimum income benefit II--Custom Selection ("GMIB II--Custom
Selection"), you can choose either Option A or Option B. See "Allocating your
contributions" later in this Prospectus for more information on the requirements
related to Options A and B.
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.
X02650/Plus 9.0 Series
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TYPES OF CONTRACTS. We offer the contracts for use as:
o A nonqualified annuity ("NQ") for after-tax contributions only.
o An individual retirement annuity ("IRA"), either traditional IRA or Roth IRA.
o An annuity that is an investment vehicle for qualified defined contribution
plans and certain qualified defined benefit plans ("QP").
o An Internal Revenue Code Section 403(b) Tax-Sheltered Annuity ("TSA") --
("Rollover TSA") (Rollover and direct transfer contributions only; employer or
plan approval required.)
A contribution of at least $10,000 is required to purchase a contract. We add an
amount ("credit") to your contract with each contribution you make. Expenses for
the contract may be higher than for a comparable contract without a credit. Over
time, the amount of the credit may be more than offset by fees and charges
associated with the credit.
A registration statement relating to this offering has been filed with the
Securities and Exchange Commission ("SEC"). The statement of additional
information ("SAI") dated , 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, N.J. 07096-1547 or calling 1-800-789-7771.
The SAI has been 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.
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Contents of this Prospectus
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ACCUMULATOR(R) PLUS(SM)
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Index of key words and phrases 5
Who is AXA Equitable? 7
How to reach us 8
Accumulator(R) Plus(SM) at a glance -- key features 10
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FEE TABLE 13
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Example 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 22
How you can make your contributions 22
What are your investment options under the contract? 22
Portfolios of the Trusts 24
Allocating your contributions 29
Credits 32
Guaranteed minimum death benefit and Guaranteed
minimum income benefit base 34
Annuity purchase factors 36
Guaranteed minimum income benefit 36
Adding the Guaranteed minimum income benefit after issue 38
Dropping the Guaranteed minimum income benefit after issue 39
Guaranteed minimum death benefit 39
Guaranteed withdrawal benefit for life ("GWBL") 41
Dropping the Guaranteed withdrawal benefit for life after
conversion 47
Your right to cancel within a certain number of days 47
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2. DETERMINING YOUR CONTRACT'S VALUE 49
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Your account value and cash value 49
Your contract's value in the variable investment options 49
Your contract's value in the guaranteed interest option 49
Insufficient account value 49
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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.
Contents of this Prospectus 3
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3. TRANSFERRING YOUR MONEY AMONG INVESTMENT OPTIONS 50
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Transferring your account value 50
Disruptive transfer activity 50
Rebalancing your account value 51
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4. ACCESSING YOUR MONEY 52
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Withdrawing your account value 52
How withdrawals are taken from your account value 55
How withdrawals affect your Guaranteed minimum
income benefit and Guaranteed minimum death benefit 55
How withdrawals affect your GWBL 55
Withdrawals treated as surrenders 55
Loans under Rollover TSA contracts 56
Surrendering your contract to receive its cash value 56
When to expect payments 57
Your annuity payout options 57
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5. CHARGES AND EXPENSES 60
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Charges that AXA Equitable deducts 60
Charges that the Trusts deduct 63
Group or sponsored arrangements 63
Other distribution arrangements 64
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6. PAYMENT OF DEATH BENEFIT 65
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Your beneficiary and payment of benefit 65
Beneficiary continuation option 67
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7. TAX INFORMATION 70
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Overview 70
Buying a contract to fund a retirement arrangement 70
Suspension of required minimum distributions for 2009 70
Transfers among investment options 70
Taxation of nonqualified annuities 70
Individual retirement arrangements (IRAs) 73
Tax-sheltered annuity contracts (TSAs) 82
Federal and state income tax withholding and information
reporting 86
Special rules for contracts funding qualified plans 87
Impact of taxes to AXA Equitable 87
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8. MORE INFORMATION 88
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About Separate Account No. 49 88
About the Trusts 88
About the general account 88
About other methods of payment 89
Dates and prices at which contract events occur 89
About your voting rights 90
Statutory compliance 90
About legal proceedings 90
Financial statements 90
Transfers of ownership, collateral assignments, loans
and borrowing 90
About Custodial IRAs 91
Distribution of the contracts 91
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APPENDICES
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I -- Condensed financial information A-1
II -- Purchase considerations for QP contracts B-1
III -- Enhanced death benefit example C-1
IV -- Hypothetical illustrations D-1
V -- Earnings enhancement benefit example E-1
VI -- State contract availability and/or variations
of certain features and benefits F-1
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
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4 Contents of this Prospectus
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Index of key words and phrases
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This index should help you locate more information on the terms used in this
Prospectus.
Page
4% Roll-Up to age 80 (GMIB I - Asset Allocation) 0
4% Roll-Up to age 80 (GMIB II - Custom Selection) 34
account value 49
administrative charge 60
annual administrative charge 60
Annual Ratchet 45
Annual Ratchet to age 80 enhanced death benefit 34
annuitant 19
annuitization 57
annuity maturity date 59
annuity payout options 57
annuity purchase factors 36
automatic annual reset program 35
automatic customized reset program 35
AXA Strategic Allocation portfolios cover
beneficiary 65
Beneficiary continuation option ("BCO") 67
benefit base 42
business day 89
cash value 49
charges for state premium and other applicable taxes 63
contract date 22
contract date anniversary 22
contract year 22
Contributions to Roth IRAs 79
regular contributions 79
rollovers and transfers 79
conversion contributions 80
contributions to traditional IRAs 73
regular contributions 73
rollovers and transfers 75
Conversion effective date 75
Conversion transaction date 75
credit 32
disability, terminal illness or confinement to nursing home 61
disruptive transfer activity 50
distribution charge 60
Earnings Enhancement benefit 63
Earnings Enhancement benefit charge 63
ERISA 64
Excess withdrawal 42
Fixed-dollar option 32
free look 47
free withdrawal amount 61
general account 0
General dollar cost averaging 32
GMIB addition date 38
GMIB effective date 38
GMIB effective date anniversary 37
guaranteed interest option 29
Guaranteed minimum death benefit 39
Guaranteed minimum death benefit and Guaranteed
minimum income benefit base 34
Guaranteed minimum income benefit 36
Guaranteed minimum income benefit "no lapse guarantee" 37
Guaranteed minimum income benefit charge 62
Guaranteed withdrawal benefit for life ("GWBL") 41
Guaranteed withdrawal benefit for life charge 41
GWBL benefit base 42
IRA cover
IRS 70
Investment simplifier 32
lifetime required minimum distribution withdrawals 53
loan reserve account 56
loans under Rollover TSA 56
market timing 50
Maturity date annuity payments 59
Mortality and expense risks charge 60
NQ cover
one-time reset option 75
Online Account Access 8
partial withdrawals 52
participant 22
Portfolio cover
processing office 8
QP cover
Rebalancing 51
Rollover TSA cover
Roth IRA cover
SAI cover
SEC cover
Separate Account No. 49 88
Special money market dollar cost averaging 31
Standard death benefit 34
substantially equal withdrawals 53
Spousal continuation 66
Suspension of required minimum distributions for 2009 70
systematic withdrawals 53
TOPS 8
TSA cover
traditional IRA cover
Trusts 88
unit 49
variable investment options 23
wire transmittals and electronic applications 89
withdrawal charge 61
Index of key words and phrases 5
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To make this Prospectus easier to read, we sometimes use different words than in
the contract or supplemental materials. This is illustrated below. Although we
use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract or supplemental materials.
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Prospectus Contract or Supplemental Materials
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variable investment options Investment Funds
account value Annuity Account Value
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
Guaranteed minimum income benefit Guaranteed Income Benefit
Guaranteed minimum income benefit Excess withdrawal
excess withdrawal
guaranteed interest option Guaranteed Interest Account
Guaranteed withdrawal benefit for life Guaranteed withdrawal benefit
GWBL benefit base Guaranteed withdrawal benefit for
life benefit base
Guaranteed annual withdrawal amount Guaranteed withdrawal benefit for
life Annual withdrawal amount
Excess withdrawal Guaranteed withdrawal benefit for
life Excess withdrawal
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6 Index of key words and phrases
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Who is AXA Equitable?
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We are AXA Equitable Life Insurance Company ("AXA Equitable") (until 2004, The
Equitable Life Assurance Society of the United States), a New York stock life
insurance corporation. We have been doing business since 1859. AXA Equitable is
an indirect, wholly-owned subsidiary of AXA Financial, Inc., a holding company,
which is itself an indirect, wholly-owned subsidiary of AXA SA ("AXA"). AXA is a
French holding company for an international group of insurance and related
financial services companies. As the ultimate sole shareholder of AXA Equitable,
and under its other arrangements with AXA Equitable and AXA Equitable's parent,
AXA exercises significant influence over the operations and capital structure of
AXA Equitable and its parent. AXA holds its interest in AXA Equitable through a
number of other intermediate holding companies, including Oudinot
Participations, AXA America Holdings, Inc. and AXA Equitable Financial Services,
LLC. AXA Equitable is obligated to pay all amounts that are promised to be paid
under the contracts. No company other than AXA Equitable, however, has any legal
responsibility to pay amounts that AXA Equitable owes under the contracts.
AXA Financial, Inc. and its consolidated subsidiaries managed approximately
$543.2 billion in assets as of December 31, 2008. For more than 100 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.
Who is AXA Equitable? 7
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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 or delayed. 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:
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FOR CORRESPONDENCE WITH CHECKS:
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FOR CONTRIBUTIONS SENT BY REGULAR MAIL:
Accumulator(R) Plus(SM)
P.O. Box 1577
Secaucus, NJ 07096-1577
FOR CONTRIBUTIONS SENT BY EXPRESS DELIVERY:
Accumulator(R) Plus(SM)
500 Plaza Drive, 6th Floor
Secaucus, NJ 07094
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FOR CORRESPONDENCE WITHOUT CHECKS:
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FOR ALL OTHER COMMUNICATIONS (E.G., REQUESTS FOR TRANSFERS, WITHDRAWALS, OR
REQUIRED NOTICES) SENT BY REGULAR MAIL:
Accumulator(R) Plus(SM)
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:
Accumulator(R) Plus(SM)
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.
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REPORTS WE PROVIDE:
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o written confirmation of financial transactions and certain non-financial
transactions, including addition of the Guaranteed minimum income benefit
after contract issuance and termination of a systematic withdrawal option;
o statement of your contract values at the close of each calendar year and any
calendar quarter in which there was a financial transaction; and
o annual statement of your contract values as of the close of the contract year,
including notification of eligibility to exercise the Guaranteed minimum
income benefit and/or the Roll-Up benefit base reset option and eligibility to
convert the Guaranteed minimum income benefit to the Guaranteed withdrawal
benefit for life at age 80.
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TELEPHONE OPERATED PROGRAM SUPPORT ("TOPS") AND ONLINE ACCOUNT ACCESS SYSTEMS:
--------------------------------------------------------------------------------
TOPS is designed to provide you with up-to-date information via touch-tone
telephone. Online Account Access is designed to provide this information through
the Internet. You can obtain information on:
o your current account value;
o your current allocation percentages;
o the number of units you have in the variable investment options;
o the daily unit values for the variable investment options; and
o performance information regarding the variable investment options (not
available through TOPS).
You can also:
o change your allocation percentages and/or transfer among the variable
investment options (not available through TOPS for Option B transfers);
o elect to receive certain contract statements electronically;
o change your address (not available through TOPS);
o change your TOPS personal identification number ("PIN") (through TOPS only)
and your Online Account Access password (through Online Account Access only);
and
o access Frequently Asked Questions and Service Forms (not available through
TOPS).
TOPS and Online Account Access are normally available seven days a week, 24
hours a day. You may use TOPS by calling toll free 1-888-909-7770. If you are a
client with AXA Advisors you may use Online Account Access by visiting our
website at www.axaonline.com and logging in to access your account. All other
clients may access Online Account Access by visiting our website at
www.axa-equitable.com. Of course, for reasons beyond our control, these services
may sometimes be unavailable.
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
will-
We have established procedures to reasonably confirm that the instructions
communicated by telephone or Internet are genuine. For example, we will require
certain personal identification information before we will act on telephone or
Internet instructions and we will provide written confirmation of your
transfers. If we do not employ reasonable procedures to confirm the genuineness
of telephone or Internet instructions, we may be liable for any losses arising
out of any act or omission that constitutes negligence, lack of good faith, or
will-
8 Who is AXA Equitable?
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ful misconduct. In light of our procedures, we will not be liable for following
telephone or Internet instructions we reasonably believe to be genuine.
We reserve the right to limit access to these services if we determine that you
engaged in a disruptive transfer activity, such as "market timing" (see
"Disruptive transfer activity" in "Transferring your money among investment
options" later in this Prospectus).
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CUSTOMER SERVICE REPRESENTATIVE:
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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 any business day from 8:30 a.m. until 5:30 p.m., Eastern Time.
WE REQUIRE THAT THE FOLLOWING TYPES OF COMMUNICATIONS BE ON SPECIFIC FORMS WE
PROVIDE FOR THAT PURPOSE:
(1) authorization for telephone transfers by your financial professional
(available only for contracts distributed through AXA Distributors);
(2) conversion of a traditional IRA to a Roth IRA contract;
(3) requests for loans under Rollover TSA contracts (employer or plan approval
required);
(4) spousal consent for loans under Rollover TSA contracts;
(5) requests for withdrawals or surrenders from Rollover TSA contracts
(employer or plan approval required) and contracts with the Guaranteed
withdrawal benefit for life ("GWBL");
(6) tax withholding elections;
(7) election of the beneficiary continuation option;
(8) IRA contribution recharacterizations;
(9) Section 1035 exchanges;
(10) direct transfers and rollovers;
(11) exercise of the Guaranteed minimum income benefit;
(12) requests to reset your Roll-Up benefit base by electing one of the
following: one-time reset option, automatic annual reset program or
automatic customized reset program;
(13) requests to opt out of or back into the Annual Ratchet of the GWBL benefit
base;
(14) death claims;
(15) change in ownership (NQ only, if available under your contract);
(16) requests for enrollment in either our Maximum payment plan or Customized
payment plan under the GWBL;
(17) purchase by, or change of ownership to, a non natural owner;
(18) requests to collaterally assign your NQ contract;
(19) requests to drop the GWBL or add or drop the Guaranteed minimum income
benefit;
(20) election to convert the Guaranteed minimum income benefit to the GWBL at
age 80;
(21) requests to add a Joint life after conversion of the Guaranteed minimum
income benefit to the GWBL at age 80; and
(22) requests to transfer, re-allocate, rebalance and change your future
allocations.
WE ALSO HAVE SPECIFIC FORMS THAT WE RECOMMEND YOU USE FOR THE FOLLOWING TYPES OF
REQUESTS:
(1) beneficiary changes;
(2) contract surrender and withdrawal requests;
(3) general dollar cost averaging (including the fixed dollar and interest
sweep options); and
(4) special money market dollar cost averaging.
TO CANCEL OR CHANGE ANY OF THE FOLLOWING, WE REQUIRE WRITTEN NOTIFICATION
GENERALLY AT LEAST SEVEN CALENDAR DAYS BEFORE THE NEXT SCHEDULED TRANSACTION:
(1) dollar cost averaging (including the fixed dollar amount and interest sweep
options);
(2) special money market dollar cost averaging;
(3) substantially equal withdrawals;
(4) systematic withdrawals; and
(5) the date annuity payments are to begin.
TO CANCEL OR CHANGE EITHER 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.
SIGNATURES:
The proper person to sign forms, notices and requests would normally be the
owner. If there are joint owners, both must sign.
Who is AXA Equitable? 9
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Accumulator(R) Plus(SM) at a glance -- key features
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Professional investment Accumulator(R) Plus(SM) variable investment options invest in different Portfolios managed by professional
management investment advisers.
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Guaranteed interest o Principal and interest guarantees.
option
o Interest rates set periodically.
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Tax considerations o No tax on earnings inside the contract until you make withdrawals from your contract or receive
annuity payments.
o No tax on transfers among variable investment options inside the contract.
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If you are purchasing or contributing to an annuity contract, which is an Individual Retirement
Annuity (IRA) or Tax Sheltered Annuity (TSA), or to fund an employer retirement plan (QP or Qualified
Plan), you should be aware that such annuities do not provide tax deferral benefits beyond those
already provided by the Internal Revenue Code for these types of arrangements. Before purchasing or
contributing to one of these contracts, you should consider whether its features and benefits beyond
tax deferral meet your needs and goals. You may also want to consider the relative features, benefits
and costs of these annuities compared with any other investment that you may use in connection with
your retirement plan or arrangement. Depending on your personal situation, the contract's guaranteed
benefits may have limited usefulness because of required minimum distributions ("RMDs").
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Guaranteed minimum The Guaranteed minimum income benefit provides income protection for you during your life once you
income benefit elect to annuitize the contract by exercising the benefit. If you do not elect to exercise the
Guaranteed minimum income benefit, this benefit will automatically convert to a Guaranteed withdrawal
benefit for life as of the contract date anniversary following age 80, unless you terminate the
benefit.
The Guaranteed withdrawal benefit for life guarantees that you can take withdrawals up to a maximum
amount each contract year. The benefit is available only on a conversion from the Guaranteed minimum
income benefit on the contract date anniversary following age 80. If you have not elected to exercise
the Guaranteed minimum income benefit as of the contract date anniversary following age 80, the
Guaranteed minimum income benefit will automatically convert to the Guaranteed withdrawal benefit for
life effective on that date.
------------------------------------------------------------------------------------------------------------------------------------
Contribution amounts o Initial minimum: $10,000
o Additional minimum: $500 (NQ, QP and Rollover TSA contracts)
$50 (IRA contracts)
o No contributions after first contract year (other than QP contracts)
----------------------------------------------------------------------------------------------------------
o Maximum contribution limitations apply to all contracts.
In general, contributions are limited to $1.5 million under all Accumulator(R) series with the same
owner or annuitant. Upon advance notice to you, we may exercise certain rights we have under the
contract regarding contributions, including our rights to (i) change minimum and maximum
contribution requirements and limitations, and (ii) discontinue acceptance of contributions.
Further, we may at any time exercise our rights to limit or terminate your contributions and
transfers to any of the variable investment options and to limit the number of variable investment
options which you may elect. For more information, please see "How you can purchase and contribute
to your contract" in "Contract features and benefits" later in this Prospectus.
------------------------------------------------------------------------------------------------------------------------------------
Credit We allocate your contributions to your account value. We allocate a credit to your account value at
the same time that we allocate your contributions. The credit will apply to additional contribution
amounts only to the extent that those amounts exceed total withdrawals from the contract. The amount
of credit may be up to 5% of each contribution, depending on certain factors. The credit is subject to
recovery by us in certain limited circumstances.
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10 Accumulator(R) Plus(SM) at a glance -- key features
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Access to your money
o Partial withdrawals
o Several withdrawal options on a periodic basis
o Loans under Rollover TSA contracts (employer or plan approval required)
o Contract surrender
o Maximum payment plan (only under contracts with GWBL)
o Customized payment plan (only under contracts with GWBL)
You may incur a withdrawal charge for certain withdrawals or if you surrender your contract. You may
also incur income tax and a tax penalty. Certain withdrawals will diminish the value of optional
benefits.
------------------------------------------------------------------------------------------------------------------------------------
Payout options o Fixed annuity payout options
o Variable Immediate Annuity payout options (described in a separate prospectus for that option)
o Income Manager(R) payout options (described in a separate prospectus for that option)
------------------------------------------------------------------------------------------------------------------------------------
Additional features o Guaranteed minimum death benefit options
o Dollar cost averaging
o Automatic Quarterly account value rebalancing (Option B only)
o Free transfers
o Waiver of withdrawal charge for disability, terminal illness, confinement to a nursing home and
certain other withdrawals
o Earnings enhancement benefit, an optional death benefit available under certain contracts
o Option to add or drop the Guaranteed minimum income benefit after issue
o Option to drop the Guaranteed withdrawal benefit for life after conversion
o Spousal continuation
o Beneficiary continuation option (IRA and NQ only)
o Roll-Up benefit base reset
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Fees and charges Please see "Fee table" later in this section for complete details.
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Owner and annuitant issue NQ: 0-70
ages Traditional IRA, Roth IRA, QP (Defined Contribution and Defined Benefit) and Rollover TSA: 20-70
------------------------------------------------------------------------------------------------------------------------------------
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.
Please see Appendix VI later in this Prospectus for more information on state
availability and/or variations of certain features and benefits.
For more detailed information, we urge you to read the contents of this
Prospectus, as well as your contract. This Prospectus is not your contract. Your
contract and any endorsements, riders and data pages are the entire contract
between you and AXA Equitable and governs with respect to all features,
benefits, rights and obligations. The contract should be read carefully before
investing. This Prospectus provides a description of all material provisions of
the contract. Please feel free to speak with your financial professional, or
call us, if you have any questions. If for any reason you are not satisfied with
your contract, you may return it to us for a refund within a certain number of
days. Please see "Your right to cancel within a certain number of days" later in
this Prospectus for additional information.
OTHER CONTRACTS
We offer a variety of fixed and variable annuity contracts. They may offer
features, including investment options, credits, fees and/or charges that are
different from those in the contracts offered by this Prospectus. Not every
contract is offered through every selling broker-dealer. Some selling
broker-dealers may not offer and/or limit the offering of certain features or
options, as well as limit the availability of the contracts, based on issue
Accumulator(R) Plus(SM) at a glance -- key features 11
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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 an optional
benefit is appropriate for you based on a thorough analysis of your particular
insurance needs, financial objectives, investment goals, time horizons and risk
tolerance.
12 Accumulator(R) Plus(SM) at a glance -- key features
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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 you
surrender the contract or if you make certain withdrawals or apply your cash
value to certain payout options or if you purchase a Variable Immediate Annuity.
Charges designed to approximate certain taxes that may be imposed on us, such as
premium taxes in your state, may also apply.
--------------------------------------------------------------------------------
Charges we deduct from your account value at the time you request certain
transactions
--------------------------------------------------------------------------------
Maximum withdrawal charge as a percentage of contributions with-
drawn(1) (deducted if you surrender your contract, make certain
withdrawals, or apply your cash value to certain payout options). 8.00%
Charge if you elect a variable payout option upon annuitization (which
is described in a separate prospectus for that option) $350
--------------------------------------------------------------------------------
The next table describes the fees and expenses that you will pay periodically
during the time that you own the contract, not including the underly-
ing trust portfolio fees and expenses.
--------------------------------------------------------------------------------
Charges we deduct from your account value on each contract date anniversary
--------------------------------------------------------------------------------
Maximum annual administrative charge(2)
If your account value on a contract date anniversary is less than
$50,000(3) $30
If your account value on a contract date anniversary is $50,000
or more $0
--------------------------------------------------------------------------------
Charges we deduct from your variable investment options expressed as an annual
percentage of daily net assets(4)
--------------------------------------------------------------------------------
SEPARATE ACCOUNT ANNUAL EXPENSES:
Mortality and expense risks 0.95%(5)
Administrative 0.35%
Distribution 0.25%
-----
Total Separate account annual expenses 1.55%
--------------------------------------------------------------------------------
Charges we deduct from your account value each year if you elect any of the
following optional benefits
--------------------------------------------------------------------------------
Guaranteed minimum death benefit charge(6) (Calculated as a
percentage of the applicable benefit base(7). Deducted annually(8) on
each contract date anniversary for which the benefit is in effect.)
Standard death benefit 0.00%
Annual Ratchet to age 80 0.25%
Annual Ratchet to age 80 (New York and Washington) 0.30%
Greater of 4% Roll-Up to age 80 or Annual Ratchet to age 80
("Greater of" GMDB I)
(only available if you also elect Guaranteed minimum income
benefit I - Asset Allocation) 0.80%(9)
If you elect to reset the Roll-Up benefit base, we reserve the
right to increase your charge up to: 0.95%
Greater of 4% Roll-Up to age 80 or Annual Ratchet to age 80
("Greater of" GMDB II)
(only available if you also elect Guaranteed minimum income
benefit II - Custom Selection) 1.00%(9)
If you elect to reset the Roll-Up benefit base, we reserve the
right to increase your charge up to: 1.15%
--------------------------------------------------------------------------------
Fee table 13
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--------------------------------------------------------------------------------
Guaranteed minimum income benefit charge(6) (Calculated as a
percentage of the applicable benefit base(7). Deducted annually(8) on
each contract date anniversary for which the benefit is in effect.)
If you elect Guaranteed minimum income benefit I - Asset
Allocation 0.80%(9)
If you elect to reset the Roll-Up benefit base, we reserve the
right to increase your charge up to: 1.10%
If you elect Guaranteed minimum income benefit II - Custom
Selection 1,00%(9)
If you elect to reset the Roll-Up benefit base, we reserve the
right to increase your charge up to: 1.30%
--------------------------------------------------------------------------------
Earnings enhancement benefit charge(6) (Calculated as a percent-
age of the account value. Deducted annually(2) on each contract date
anniversary for which the benefit is in effect.) 0.35%
--------------------------------------------------------------------------------
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Guaranteed withdrawal benefit for life benefit charge (Available only Conversion from Guaran- Conversion from Guaran-
upon conversion of the Guaranteed minimum income benefit and teed minimum income teed minimum income
calculated as a percentage of the GWBL benefit base(7) deducted benefit I - Asset Alloca- benefit II - Custom
annually(8) on each contract date anniversary for which the benefit is tion -- 0.80%(10) Selection -- 1.00%(10)
in effect.) If your GWBL benefit base ratchets, we reserve the right
to increase your charge up to: 1.10% 1.30%
Please see "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and benefits" for more information about this
feature, includ- ing its benefit base and the Annual Ratchet provision, and "Guaranteed withdrawal benefit for life benefit charge"
in "Charges and expenses," both later in this Prospectus.
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Net loan interest charge -- Rollover TSA contracts only (Calculated and
deducted daily as a percentage of the outstanding loan amount.) 2.00%(11)
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 Trust prospectus for the Portfolio.
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Portfolio operating expenses expressed as an annual percentage of daily net assets(4)
------------------------------------------------------------------------------------------------------------------------------------
Total Annual Portfolio Operating Expenses for 2008 (expenses that are deducted Lowest Highest
from Portfolio assets including management fees, 12b-1 fees, service fees,
and/or other expenses)(12) 0.64% 2.04%
14 Fee table
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This table shows the fees and expenses for 2008 as an annual percentage of each
Portfolio's daily average net assets.
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Acquired Total
Fund Fees Annual Net
and Expenses Fee Waiv- Annual
Expenses (Before ers and/or Expenses
Manage- (Under- Expense Expense After
ment 12b-1 Other ying Port- Limita- Reimburse- Expense
Portfolio Name Fees(13) Fees(14) Expenses(15) folios)(16) tions) ments(17) Limitations
------------------------------------------------------------------------------------------------------------------------------------
AXA Premier VIP Trust:
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Multimanager Aggressive Equity 0.59% 0.25% 0.16% -- 1.00% -- 1.00%
Multimanager Core Bond 0.53% 0.25% 0.18% -- 0.96% 0.00% 0.96%
Multimanager International Equity 0.82% 0.25% 0.21% -- 1.28% -- 1.28%
Multimanager Large Cap Core Equity 0.69% 0.25% 0.21% -- 1.15% -- 1.15%
Multimanager Large Cap Growth 0.75% 0.25% 0.24% -- 1.24% -- 1.24%
Multimanager Large Cap Value 0.72% 0.25% 0.20% -- 1.17% -- 1.17%
Multimanager Mid Cap Growth 0.80% 0.25% 0.20% -- 1.25% -- 1.25%
Multimanager Mid Cap Value 0.80% 0.25% 0.19% -- 1.24% -- 1.24%
Multimanager Small Cap Growth 0.85% 0.25% 0.24% -- 1.34% -- 1.34%
Multimanager Small Cap Value 0.85% 0.25% 0.19% -- 1.29% -- 1.29%
Multimanager Technology 0.95% 0.25% 0.22% 0.01% 1.43% -- 1.43%
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EQ Advisors Trust:
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AXA Balanced Strategy Allocation 0.10% 0.25% 0.25% 0.62% 1.22% (0.17)% 1.05%
AXA Conservative Growth Strategy Allocation 0.10% 0.25% 0.25% 0.60% 1.20% (0.20)% 1.00%
AXA Conservative Strategy Allocation 0.10% 0.25% 0.25% 0.56% 1.16% (0.21)% 0.95%
AXA Growth Strategy Allocation 0.10% 0.25% 0.25% 0.65% 1.25% (0.15)% 1.10%
AXA Moderate Growth Strategy Allocation 0.10% 0.25% 0.25% 0.63% 1.23% (0.13)% 1.10%
EQ/AllianceBernstein International 0.73% 0.25% 0.17% -- 1.15% 0.00% 1.15%
EQ/AllianceBernstein Small Cap Growth 0.75% 0.25% 0.14% -- 1.14% -- 1.14%
EQ/AXA Franklin Small Cap Value Core 0.70% 0.25% 0.23% -- 1.18% 0.00% 1.18%
EQ/AXA Franklin Templeton Founding Strategy Core 0.05% 0.25% 0.19% 0.91% 1.40% (0.09)% 1.31%
EQ/AXA Templeton Growth Core 0.70% 0.25% 0.22% -- 1.17% 0.00% 1.17%
EQ/BlackRock Basic Value Equity 0.56% 0.25% 0.12% -- 0.93% -- 0.93%
EQ/BlackRock International Value 0.83% 0.25% 0.20% -- 1.28% 0.00% 1.28%
EQ/Boston Advisors Equity Income 0.75% 0.25% 0.17% -- 1.17% (0.12)% 1.05%
EQ/Calvert Socially Responsible 0.65% 0.25% 0.24% -- 1.14% 0.00% 1.14%
EQ/Capital Guardian Growth 0.65% 0.25% 0.15% -- 1.05% (0.10)% 0.95%
EQ/Capital Guardian Research 0.65% 0.25% 0.12% -- 1.02% (0.05)% 0.97%
EQ/Common Stock Index 0.35% 0.25% 0.11% -- 0.71% -- 0.71%
EQ/Core Bond Index 0.35% 0.25% 0.11% -- 0.71% -- 0.71%
EQ/Davis New York Venture 0.85% 0.25% 0.15% -- 1.25% -- 1.25%
EQ/Equity 500 Index 0.25% 0.25% 0.14% -- 0.64% -- 0.64%
EQ/Evergreen Omega 0.65% 0.25% 0.25% -- 1.15% 0.00% 1.15%
EQ/Intermediate Government Bond Index 0.35% 0.25% 0.14% -- 0.74% -- 0.74%
EQ/International Core PLUS 0.60% 0.25% 0.27% 0.06% 1.18% (0.02)% 1.16%
EQ/International Growth 0.85% 0.25% 0.27% -- 1.37% -- 1.37%
EQ/JPMorgan Value Opportunities 0.60% 0.25% 0.16% -- 1.01% (0.01)% 1.00%
EQ/Large Cap Core PLUS 0.50% 0.25% 0.27% 0.03% 1.05% (0.05)% 1.00%
EQ/Large Cap Growth Index 0.35% 0.25% 0.13% -- 0.73% -- 0.73%
EQ/Large Cap Growth PLUS 0.51% 0.25% 0.23% -- 0.99% 0.00% 0.99%
EQ/Large Cap Value Index 0.35% 0.25% 0.17% -- 0.77% -- 0.77%
EQ/Large Cap Value PLUS 0.49% 0.25% 0.13% -- 0.87% 0.00% 0.87%
EQ/Lord Abbett Growth and Income 0.65% 0.25% 0.20% -- 1.10% (0.10)% 1.00%
EQ/Lord Abbett Large Cap Core 0.65% 0.25% 0.22% -- 1.12% (0.12)% 1.00%
EQ/Mid Cap Index 0.35% 0.25% 0.12% -- 0.72% -- 0.72%
EQ/Mid Cap Value PLUS 0.55% 0.25% 0.22% 0.03% 1.05% 0.00% 1.05%
EQ/Money Market 0.30% 0.25% 0.17% -- 0.72% -- 0.72%
EQ/Oppenheimer Global 0.95% 0.25% 0.42% -- 1.62% (0.27)% 1.35%
EQ/Oppenheimer Main Street Opportunity 0.85% 0.25% 0.94% -- 2.04% (0.74)% 1.30%
EQ/Oppenheimer Main Street Small Cap 0.90% 0.25% 0.86% -- 2.01% (0.71)% 1.30%
EQ/Quality Bond PLUS 0.40% 0.25% 0.19% -- 0.84% -- 0.84%
EQ/Small Company Index 0.25% 0.25% 0.20% -- 0.70% -- 0.70%
EQ/T. Rowe Price Growth Stock 0.80% 0.25% 0.16% -- 1.21% (0.01)% 1.20%
EQ/UBS Growth and Income 0.75% 0.25% 0.19% -- 1.19% (0.14)% 1.05%
EQ/Van Kampen Comstock 0.65% 0.25% 0.17% -- 1.07% (0.07)% 1.00%
EQ/Van Kampen Mid Cap Growth 0.70% 0.25% 0.17% -- 1.12% (0.02)% 1.10%
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Fee table 15
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Notes:
(1) Deducted upon a withdrawal of amounts in excess of the 10% free withdrawal
amount, if applicable.
The withdrawal charge percentage we use is Contract
determined by the contract year in which you make Year
the withdrawal or surrender your contract. For
each contribution, we consider the contract year 1................8.00%
in which we receive that contribution to be 2................8.00%
"contract year 1") 3................7.00%
4................7.00%
5................6.00%
6................5.00%
7................4.00%
8................3.00%
9................2.00%
10+..............0.00%
(2) If the contract is surrendered or annuitized, or a death benefit is paid on
any date other than the contract date anniversary, we will deduct a pro
rata portion of the charge for that year.
(3) During the first two contract years this charge, if applicable, is equal to
the lesser of $30 or 2% of your account value. Thereafter, if applicable,
the charge is $30 for each contract year.
(4) Daily net assets is the sum of the value of the amounts invested in all
your portfolios before we deduct applicable contract charges, which are set
forth in the tables above.
(5) These charges compensate us for certain risks we assume and expenses we
incur under the contract. They also compensate us for the expense
associated with the credit. We expect to make a profit from these charges.
(6) If you elect the Earnings enhancement benefit at issue, and your Guaranteed
minimum income benefit then converts to the Guaranteed withdrawal benefit
for life, the Earnings enhancement benefit will continue in force after
conversion, although it may be adversely affected by withdrawals under the
Guaranteed withdrawal benefit for life.
(7) The benefit base is not an account value or cash value. If you elect the
Guaranteed minimum income benefit and/or the Guaranteed minimum death
benefit at issue, your initial benefit base is equal to your initial
contributions to your contract. Your initial benefit base does not include
the Credit. Subsequent adjustments to the applicable benefit base may
result in a benefit base that is significantly different from your total
contributions or account value. See "Guaranteed minimum income benefit and
Guaranteed minimum death benefit base" and "GWBL benefit base" in "Contract
features and benefits" later in this Prospectus.
(8) 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.
(9) We reserve the right to increase this charge if you elect to reset your
Roll-Up benefit base on the 2nd or later contract date anniversary. See
both "Guaranteed minimum death benefit" and "Guaranteed minimum income
benefit charge" in "Charges and expenses" later in this Prospectus.
(10) This assumes that the Guaranteed minimum income benefit charge does not
increase before any conversion to the Guaranteed withdrawal benefit for
life. If it did, the charge would equal the Guaranteed minimum income
benefit charge percentage at the time of conversion, which could be as high
as 1.10% for Guaranteed minimum income benefit I - Asset Allocation and
1.30% for Guaranteed minimum income benefit II - Custom Selection.
(11) We charge interest on loans under Rollover TSA contracts but also credit
you interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the
interest rate we credit. See "Loans under Rollover TSA contracts" later in
this Prospectus for more information on how the loan interest is calculated
and for restrictions that may apply.
(12) ["Total Annual Portfolio Operating Expenses" are based, in part, on
estimated amounts for options added during the fiscal year 2008 and for the
underlying portfolios.]
(13) The management fees for each Portfolio cannot be increased without a vote
of that Portfolio's shareholders. See footnote (17) for any expense
limitation agreement information.
(14) The maximum annual distribution and/or service (12b-1) fee for the
Portfolio's Class IB shares is 0.50% of the average daily net assets
attributable to the Portfolio's Class IB shares. Under an arrangement
approved by the Trust's Board of Trustees, the distribution and/or service
(12b-1) fee currently is limited to 0.25% of the average daily net assets
attributable to the Portfolio's Class IB shares. This arrangement will be
in effect at least until April 30, 2009.
(15) Other expenses shown are those incurred in 2008. The amounts shown as
"Other Expenses" will fluctuate from year to year depending on actual
expenses. See footnote (17) for any expense limitation agreement
information.
(16) Each of these variable investment options invests in a corresponding
Portfolio of one of the Trusts or other unaffiliated investment companies.
Each Portfolio, in turn, invests in shares of other Portfolios of the
Trusts and/or shares of unaffiliated portfolios ("the underlying
portfolios"). Amounts shown reflect each Portfolio's pro rata share of the
fees and expenses of the underlying portfolios in which it invests. A "--"
indicates that the listed Portfolio does not invest in underlying
portfolios.
(17) The amounts shown reflect any fee waivers and/or expense reimbursements
that applied to each Portfolio. A "--" indicates that there is no expense
limitation in effect. "0.00%" indicates that the expense limitation
arrangement did not result in a fee waiver reimbursement. AXA Equitable,
the investment manager of AXA Premier VIP Trust and EQ Advisors Trust, has
entered into expense limitation agreements with respect to certain
Portfolios, which are effective through April 30, ____ (unless the Board of
Trustees, including a majority of the independent directors, of AXA Premier
VIP Trust or EQ Advisors Trust, as applicable, consents to an earlier
revision or termination of this arrangement). For the Portfolios marked
with an asterisk (*), the expense limitation agreements are effective
through April 30, 2010, subject to the same provisions regarding earlier
revision or termination. Under these agreements, AXA Equitable has agreed
to waive or limit its fees and assume other expenses of certain Portfolios,
if necessary, in an amount that limits each affected Portfolio's Total
Annual Expenses (exclusive of interest, taxes, brokerage commissions,
capitalized expenditures, expenses of the underlying portfolios in which
the Portfolio invests and extraordinary expenses) to not more than the
amounts specified in the agreements. Therefore, each Portfolio may at a
later date make a reimbursement to AXA Equitable for any of the management
fees waived or limited and other expenses assumed and paid by AXA Equitable
pursuant to the expense limitation agreements provided that the Portfolio's
current annual operating expenses do not exceed the operating expense limit
determined for such Portfolio. See the Prospectus for each applicable
underlying Trust for more information about the arrangements. In addition,
a portion of the brokerage commissions of certain portfolios of AXA Premier
VIP Trust and EQ Advisors Trust is used to reduce the applicable
Portfolio's expenses. If the above table reflected both the expense
limitation arrangements plus the portion of the brokerage commissions used
to reduce Portfolio expenses, the net expenses would be as shown in the
table below:
------------------------------------------------------
Portfolio Name
------------------------------------------------------
Multimanager Aggressive Equity 0.98%
------------------------------------------------------
Multimanager Large Cap Core Equity 1.14%
------------------------------------------------------
Multimanager Large Cap Growth 1.15%
------------------------------------------------------
Multimanager Large Cap Value 1.15%
------------------------------------------------------
Multimanager Mid Cap Growth 1.15%
------------------------------------------------------
Multimanager Small Cap Growth 1.29%
------------------------------------------------------
Multimanager Small Cap Value 1.23%
------------------------------------------------------
Multimanager Technology 1.42%
------------------------------------------------------
16 Fee table
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------------------------------------------------------
Portfolio Name
------------------------------------------------------
EQ/AllianceBernstein Small Cap Growth 1.12%
EQ/Capital Guardian Growth 0.94%
EQ/Capital Guardian Research 0.96%
EQ/Davis New York Venture 1.22%
EQ/Evergreen Omega 1.13%
EQ/International Core PLUS 1.14%
EQ/Lord Abbett Growth and Income 0.98%
EQ/Lord Abbett Large Cap Core 0.99%
EQ/Mid Cap Value PLUS 1.04%
EQ/UBS Growth and Income 1.03%
EQ/Van Kampen Comstock 0.98%
EQ/Van Kampen Mid Cap Growth 1.08%
EXAMPLE
This example is 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).
The example below shows the expenses that a hypothetical contract owner (who has
elected the enhanced death benefit that provides for the "Greater of" GMDB II
Greater of 4% Roll-Up to age 80 or Annual Ratchet to age 80 and the Earnings
enhancement benefit with the Guaranteed minimum income benefit II - Custom
Selection) would pay in the situations illustrated. The example uses an average
annual administrative charge based on the charges paid in 2008, which results in
an estimated administrative charge of 0.____% of contract value.
The guaranteed interest option and the account for special money market dollar
cost averaging are not covered by the example. However, the annual
administrative charge, the withdrawal charge, the charge for any optional
benefits and the charge if you elect a Variable Immediate Annuity payout option
do apply to the guaranteed interest option and the account for special money
market dollar cost averaging.
The example assumes that you invest $10,000 in the contract for the time periods
indicated, and that your investment has a 5% return each year. Other than the
administrative charge (which is described immediately above), the example also
assumes maximum contract charges and total annual expenses of the Portfolios
(before expense limitations) as set forth in the previous charts. This example
should not be considered a representation of past or future expenses for each
option. Actual expenses may be greater or less than those shown. Similarly, the
annual rate of return assumed in the example is not an estimate or guarantee of
future investment performance. Although your actual costs may be higher or
lower, based on these assumptions, your costs would be:
-------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the If you annuitize at the end of the
end of the applicable time period applicable time period
-------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
-------------------------------------------------------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
-------------------------------------------------------------------------------------------------------------------------------
AXA Conservative Strategy Allocation $1,347 $2,355 $3,395 $5,779 N/A $2,355 $3,395 $5,779
AXA Conservative Growth Strategy
Allocation $1,351 $2,368 $3,415 $5,815 N/A $2,368 $3,415 $5,815
AXA Balanced Strategy Allocation $1,353 $2,374 $3,425 $5,833 N/A $2,374 $3,425 $5,833
AXA Growth Strategy Allocation $1,356 $2,383 $3,440 $5,860 N/A $2,383 $3,440 $5,860
AXA Moderate Growth Strategy
Allocation $1,354 $2,377 $3,430 $5,842 N/A $2,377 $3,430 $5,842
Multimanager Aggressive Equity $1,330 $2,305 $3,313 $5,634 N/A $2,305 $3,313 $5,634
Multimanager Core Bond $1,325 $2,292 $3,293 $5,597 N/A $2,292 $3,293 $5,597
Multimanager International Equity $1,360 $2,393 $3,455 $5,887 N/A $2,393 $3,455 $5,887
Multimanager Large Cap Core Equity $1,346 $2,352 $3,389 $5,770 N/A $2,352 $3,389 $5,770
Multimanager Large Cap Growth $1,355 $2,380 $3,435 $5,851 N/A $2,380 $3,435 $5,851
Multimanager Large Cap Value $1,348 $2,358 $3,400 $5,788 N/A $2,358 $3,400 $5,788
Multimanager Mid Cap Growth $1,356 $2,383 $3,440 $5,860 N/A $2,383 $3,440 $5,860
Multimanager Mid Cap Value $1,355 $2,380 $3,435 $5,851 N/A $2,380 $3,435 $5,851
Multimanager Technology $1,376 $2,440 $3,530 $6,019 N/A $2,440 $3,530 $6,019
-------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time
period
--------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
--------------------------------------------------------------------------------
AXA PREMIER VIP TRUST:
--------------------------------------------------------------------------------
AXA Conservative Strategy Allocation $547 $1,655 $2,795 $5,779
AXA Conservative Growth Strategy
Allocation $551 $1,668 $2,815 $5,815
AXA Balanced Strategy Allocation $553 $1,674 $2,825 $5,833
AXA Growth Strategy Allocation $556 $1,683 $2,840 $5,860
AXA Moderate Growth Strategy
Allocation $554 $1,677 $2,830 $5,842
Multimanager Aggressive Equity $530 $1,605 $2,713 $5,634
Multimanager Core Bond $525 $1,592 $2,693 $5,597
Multimanager International Equity $560 $1,693 $2,855 $5,887
Multimanager Large Cap Core Equity $546 $1,652 $2,789 $5,770
Multimanager Large Cap Growth $555 $1,680 $2,835 $5,851
Multimanager Large Cap Value $548 $1,658 $2,800 $5,788
Multimanager Mid Cap Growth $556 $1,683 $2,840 $5,860
Multimanager Mid Cap Value $555 $1,680 $2,835 $5,851
Multimanager Technology $576 $1,740 $2,930 $6,019
--------------------------------------------------------------------------------
Fee table 17
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-------------------------------------------------------------------------------------------------------------------------------
If you surrender your contract at the If you annuitize at the end of the
end of the applicable time period applicable time period
-------------------------------------------------------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years 1 year 3 years 5 years 10 years
-------------------------------------------------------------------------------------------------------------------------------
EQ ADVISORS TRUST:
-------------------------------------------------------------------------------------------------------------------------------
EQ/AllianceBernstein International $1,346 $2,352 $3,389 $5,770 N/A $2,352 $3,389 $5,770
EQ/AllianceBernstein Small Cap Growth $1,345 $2,349 $3,384 $5,761 N/A $2,349 $3,384 $5,761
EQ/AXA Franklin Small Cap Value Core $1,349 $2,362 $3,405 $5,797 N/A $2,362 $3,405 $5,797
EQ/AXA Franklin Templeton Founding
Strategy Core $1,372 $2,430 $3,515 $5,993 N/A $2,430 $3,515 $5,993
EQ/AXA Templeton Growth Core $1,348 $2,358 $3,400 $5,788 N/A $2,358 $3,400 $5,788
EQ/BlackRock Basic Value Equity $1,322 $2,283 $3,278 $5,569 N/A $2,283 $3,278 $5,569
EQ/BlackRock International Value $1,360 $2,393 $3,455 $5,887 N/A $2,393 $3,455 $5,887
EQ/Boston Advisors Equity Income $1,348 $2,358 $3,400 $5,788 N/A $2,358 $3,400 $5,788
EQ/Calvert Socially Responsible $1,345 $2,349 $3,384 $5,761 N/A $2,349 $3,384 $5,761
EQ/Capital Guardian Growth $1,335 $2,321 $3,339 $5,679 N/A $2,321 $3,339 $5,679
EQ/Capital Guardian Research $1,332 $2,311 $3,324 $5,652 N/A $2,311 $3,324 $5,652
EQ/Common Stock Index $1,299 $2,213 $3,165 $5,363 N/A $2,213 $3,165 $5,363
EQ/Core Bond Index $1,299 $2,213 $3,165 $5,363 N/A $2,213 $3,165 $5,363
EQ/Davis New York Venture $1,356 $2,383 $3,440 $5,860 N/A $2,383 $3,440 $5,860
EQ/Equity 500 Index $1,291 $2,191 $3,129 $5,296 N/A $2,191 $3,129 $5,296
EQ/Evergreen Omega $1,346 $2,352 $3,389 $5,770 N/A $2,352 $3,389 $5,770
EQ/Intermediate Government Bond
Index $1,302 $2,223 $3,180 $5,391 N/A $2,223 $3,180 $5,391
EQ/International Core PLUS $1,349 $2,362 $3,405 $5,797 N/A $2,362 $3,405 $5,797
EQ/International Growth $1,369 $2,421 $3,500 $5,967 N/A $2,421 $3,500 $5,967
EQ/JPMorgan Value Opportunities $1,331 $2,308 $3,319 $5,643 N/A $2,308 $3,319 $5,643
EQ/Large Cap Core PLUS $1,335 $2,321 $3,339 $5,679 N/A $2,321 $3,339 $5,679
EQ/Large Cap Growth Index $1,301 $2,220 $3,175 $5,382 N/A $2,220 $3,175 $5,382
EQ/Large Cap Growth PLUS $1,329 $2,302 $3,308 $5,624 N/A $2,302 $3,308 $5,624
EQ/Large Cap Value Index $1,305 $2,232 $3,196 $5,420 N/A $2,232 $3,196 $5,420
EQ/Large Cap Value PLUS $1,316 $2,264 $3,247 $5,513 N/A $2,264 $3,247 $5,513
EQ/Lord Abbett Growth and Income $1,340 $2,336 $3,364 $5,725 N/A $2,336 $3,364 $5,725
EQ/Lord Abbett Large Cap Core $1,342 $2,343 $3,374 $5,743 N/A $2,343 $3,374 $5,743
EQ/Mid Cap Index $1,300 $2,216 $3,170 $5,373 N/A $2,216 $3,170 $5,373
EQ/Mid Cap Value PLUS $1,335 $2,321 $3,339 $5,679 N/A $2,321 $3,339 $5,679
EQ/Money Market $1,300 $2,216 $3,170 $5,373 N/A $2,216 $3,170 $5,373
EQ/Oppenheimer Global $1,396 $2,499 $3,624 $6,184 N/A $2,499 $3,624 $6,184
EQ/Oppenheimer Main Street
Opportunity $1,441 $2,629 $3,830 $6,537 N/A $2,629 $3,830 $6,537
EQ/Oppenheimer Main Street Small Cap $1,438 $2,620 $3,816 $6,512 N/A $2,620 $3,816 $6,512
EQ/Quality Bond PLUS $1,312 $2,254 $3,232 $5,485 N/A $2,254 $3,232 $5,485
EQ/Small Company Index $1,297 $2,210 $3,160 $5,354 N/A $2,210 $3,160 $5,354
EQ/T. Rowe Price Growth Stock $1,352 $2,371 $3,420 $5,824 N/A $2,371 $3,420 $5,824
EQ/UBS Growth and Income $1,350 $2,365 $3,410 $5,806 N/A $2,365 $3,410 $5,806
EQ/Van Kampen Comstock $1,337 $2,327 $3,349 $5,698 N/A $2,327 $3,349 $5,698
EQ/Van Kampen Mid Cap Growth $1,342 $2,343 $3,374 $5,743 N/A $2,343 $3,374 $5,743
-------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------
If you do not surrender your contract
at the end of the applicable time
period
---------------------------------------------------------------------------------
Portfolio Name 1 year 3 years 5 years 10 years
---------------------------------------------------------------------------------
EQ ADVISORS TRUST:
---------------------------------------------------------------------------------
EQ/AllianceBernstein International $546 $1,652 $2,789 $5,770
EQ/AllianceBernstein Small Cap Growth $545 $1,649 $2,784 $5,761
EQ/AXA Franklin Small Cap Value Core $549 $1,662 $2,805 $5,797
EQ/AXA Franklin Templeton Founding
Strategy Core $572 $1,730 $2,915 $5,993
EQ/AXA Templeton Growth Core $548 $1,658 $2,800 $5,788
EQ/BlackRock Basic Value Equity $522 $1,583 $2,678 $5,569
EQ/BlackRock International Value $560 $1,693 $2,855 $5,887
EQ/Boston Advisors Equity Income $548 $1,658 $2,800 $5,788
EQ/Calvert Socially Responsible $545 $1,649 $2,784 $5,761
EQ/Capital Guardian Growth $535 $1,621 $2,739 $5,679
EQ/Capital Guardian Research $532 $1,611 $2,724 $5,652
EQ/Common Stock Index $499 $1,513 $2,565 $5,363
EQ/Core Bond Index $499 $1,513 $2,565 $5,363
EQ/Davis New York Venture $556 $1,683 $2,840 $5,860
EQ/Equity 500 Index $491 $1,491 $2,529 $5,296
EQ/Evergreen Omega $546 $1,652 $2,789 $5,770
EQ/Intermediate Government Bond
Index $502 $1,523 $2,580 $5,391
EQ/International Core PLUS $549 $1,662 $2,805 $5,797
EQ/International Growth $569 $1,721 $2,900 $5,967
EQ/JPMorgan Value Opportunities $531 $1,608 $2,719 $5,643
EQ/Large Cap Core PLUS $535 $1,621 $2,739 $5,679
EQ/Large Cap Growth Index $501 $1,520 $2,575 $5,382
EQ/Large Cap Growth PLUS $529 $1,602 $2,708 $5,624
EQ/Large Cap Value Index $505 $1,532 $2,596 $5,420
EQ/Large Cap Value PLUS $516 $1,564 $2,647 $5,513
EQ/Lord Abbett Growth and Income $540 $1,636 $2,764 $5,725
EQ/Lord Abbett Large Cap Core $542 $1,643 $2,774 $5,743
EQ/Mid Cap Index $500 $1,516 $2,570 $5,373
EQ/Mid Cap Value PLUS $535 $1,621 $2,739 $5,679
EQ/Money Market $500 $1,516 $2,570 $5,373
EQ/Oppenheimer Global $596 $1,799 $3,024 $6,184
EQ/Oppenheimer Main Street
Opportunity $641 $1,929 $3,230 $6,537
EQ/Oppenheimer Main Street Small Cap $638 $1,920 $3,216 $6,512
EQ/Quality Bond PLUS $512 $1,554 $2,632 $5,485
EQ/Small Company Index $497 $1,510 $2,560 $5,354
EQ/T. Rowe Price Growth Stock $552 $1,671 $2,820 $5,824
EQ/UBS Growth and Income $550 $1,665 $2,810 $5,806
EQ/Van Kampen Comstock $537 $1,627 $2,749 $5,698
EQ/Van Kampen Mid Cap Growth $542 $1,643 $2,774 $5,743
---------------------------------------------------------------------------------
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 I at the end of this Prospectus for the unit values and the
number of units outstanding as the end of the periods shown for each of the
variable investment options available as of December 31, 2008.
18 Fee table
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1. Contract features and benefits
--------------------------------------------------------------------------------
HOW YOU CAN PURCHASE AND CONTRIBUTE TO YOUR CONTRACT
You may purchase a contract by making payments to us that we call
"contributions." We can refuse to accept any application or contribution from
you at any time, including after you purchase the contract. We require a
minimum initial contribution of $10,000 for you to purchase a contract. Maximum
contribution limitations also apply. You may currently make additional
contributions of at least $500 each for NQ, QP and Rollover TSA contracts and
$50 each for traditional IRA and Roth IRA contracts, subject to limitations
noted below. For all contracts other than QP contracts, you may make additional
contributions only during the first contract year. For QP contracts, the
maximum aggregate contributions for any contract year is 100% of first-year
contributions. The following table summarizes our current rules regarding
contributions to your contract, which rules are subject to change. In some
states our rules may vary. Both the owner and the annuitant named in the
contract must meet the issue age requirements shown in the table, and
contributions are based on the age of the older of the original owner and
annuitant. Additional contributions may not be permitted in your state. Please
see Appendix VI later in this Prospectus to see if additional contributions are
currently permitted in your state.
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. We may discontinue acceptance of contributions
within the first year. Further, we may at any time exercise our rights to limit
or terminate your contributions and transfers to any of the variable investment
options and to limit the number of variable investment options which you may
elect.
--------------------------------------------------------------------------------
We reserve the right to change our current limitations on your contributions
and to discontinue acceptance of contributions.
--------------------------------------------------------------------------------
We may refuse to accept any contribution if the sum of all contributions under
all Accumulator(R) series contracts with the same owner or annuitant would then
total more than $1,500,000. If we do accept a contribution over that $1,500,000
threshold, we may require that the account value be allocated according to
Option A. For information about Option A, please see "Allocating your
contribution" later in this Prospectus. We may also refuse to accept any
contribution if the sum of all contributions under all AXA Equitable annuity
accumulation contracts with the same owner or annuitant would then total more
than $2,500,000. We may waive these contribution limitations based on certain
criteria, including benefits that have been elected, issue age, the total
amount of contributions, variable investment option allocations and selling
broker-dealer compensation. These contribution limitations may not be
applicable in your state. Please see Appendix VI later in this Prospectus.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Available
for owner
and annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
-----------------------------------------------------------------------------------------------------------------------------------
NQ 0 through 70 o $10,000 (initial) o After-tax money. o No additional contributions
after the first contract year.
o $500 (additional) o Paid to us by check or
transfer of contract value in
a tax-deferred exchange
under Section 1035 of the
Internal Revenue Code.
-----------------------------------------------------------------------------------------------------------------------------------
Contract features and benefits 19
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-----------------------------------------------------------------------------------------------------------------------------------
Available
for owner
and annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
-----------------------------------------------------------------------------------------------------------------------------------
Traditional IRA 20 through 70 o $10,000 (initial) o Eligible rollover distribu- o No additional contributions
o $50 (additional) tions from 403(b) plans, after the first contract year.
qualified plans, and govern-
mental employer 457(b) o Contributions after age 70-1/2
plans. must be net of required
minimum distributions.
o Rollovers from another
traditional individual retire- o Although we accept regular
ment arrangement. IRA contributions (limited to
$5,000 under traditional
IRA contracts, we intend
o Direct custodian-to- that the contract be used
custodian transfers from primarily for rollover and
another traditional indi- direct transfer contributions.
vidual retirement
arrangement. o Additional catch-up contri-
butions of up to $1,000 per
o Regular IRA contributions. calendar year where the
owner is at least age 50 but
o Additional catch-up contri- under age 70-1/2 at any time
butions. during the calendar year for
which the contribution is
made.
-----------------------------------------------------------------------------------------------------------------------------------
Roth IRA 20 through 70 o $10,000 (initial) o Rollovers from another o No additional contributions
o $50 (additional) Roth IRA. after the first contract year.
o Rollovers from a "desig- o Conversion rollovers after
nated Roth contribution age 70-1/2 must be net of
account" under a 401(k) required minimum distribu-
plan or 403(b) plan. tions for the traditional IRA
or other eligible retirement
o Conversion rollovers from a plan which is the source of
traditional IRA or other the conversion rollover.
eligible retirement plan.
o Before 2010, you cannot roll
o Direct transfers from over funds from a traditional
another Roth IRA. IRA or other eligible retire-
ment plan if your adjusted
o Regular Roth IRA contribu- gross income is $100,000 or
tions. more.
o Additional catch-up contri- o Although we accept regular
butions. Roth IRA contributions (lim-
ited to $5,000 ) under the
Roth IRA contracts, we
intend that the contract be
used primarily for rollover
and direct transfer
contributions.
o Additional catch-up contri-
butions 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 contribu-
tion is made.
-----------------------------------------------------------------------------------------------------------------------------------
20 Contract features and benefits
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-----------------------------------------------------------------------------------------------------------------------------------
Available
for owner
and annuitant Minimum
Contract type issue ages contributions Source of contributions Limitations on contributions+
-----------------------------------------------------------------------------------------------------------------------------------
Rollover TSA** 20 through 70 o $10,000 (initial) o With documentation of o No additional contributions
o $500 (additional) employer or plan approval, after the first contract year.
and limited to pre-tax
funds, direct plan-to-plan o Contributions after age 70-1/2
transfers from another must be net of any required
403(b) plan or contract minimum distributions.
exchanges from another
403(b) contract under the o We do not accept employer-
same plan. remitted contributions.
o With documentation of o We do not accept after tax
employer or plan approval, contributions, including des-
and limited to pre-tax ignated Roth contributions.
funds, eligible rollover dis-
tributions from other 403(b)
plans, qualified plans, gov-
ernmental employer 457(b)
plans or traditional IRAs.
-----------------------------------------------------------------------------------------------------------------------------------
QP 20 through 70 o $10,000 (initial) o Only transfer contributions o A separate QP contract must
o $500 (additional) from other investments be established for each plan
within an existing qualified participant.
plan trust.
o We do not accept regular
o The plan must be qualified ongoing payroll contribu-
under Section 401(a) of the tions or contributions
Internal Revenue Code. directly from the employer.
o For 401(k) plans, trans- o Only one additional transfer
ferred contributions may contribution may be made
not include any after-tax during a contract year.
contributions, including
designated Roth contribu- o No additional transfer con-
tions. tributions after participant's
attainment of age 75.
o Contributions after age 70-1/2
must be net of any required
minimum distributions.
o Maximum aggregate contri-
butions for any contract year
is 100% of first-year contri-
butions.
See Appendix II at the end of this Prospectus for a discussion of purchase considerations of QP contracts.
-----------------------------------------------------------------------------------------------------------------------------------
+ Additional contributions may not be permitted under certain conditions in
your state. Please see Appendix VI later in this Prospectus to see if
additional contributions are permitted in your state.
* Please see Appendix VI later in this Prospectus for state variations.
** May not be available from all Selling broker-dealers. Also, Rollover TSA
is available only where the employer sponsoring the 403(b) plan currently
contributes to one or more other
403(b) annuity contracts issued by AXA Equitable for active plan
participants (the purchaser of the Accumulator(R) Plus(SM)Rollover TSA may
also be, but need not be, an owner of the other 403(b) annuity contract).
See "Tax information" later in this Prospectus for a more detailed discussion
of sources of contributions and certain contribution limitations. For
information on when contributions are credited under your contract see "Dates
and prices at which contract events occur" in "More information" later in this
Prospectus. Please review your contract for information on contribution
limitations
Contract features and benefits 21
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OWNER AND ANNUITANT REQUIREMENTS
Under NQ contracts, the annuitant can be different from the owner. A joint
owner may also be named. Only natural persons can be joint owners. This means
that an entity such as a corporation cannot be a joint owner.
For NQ contracts (with a single owner, joint owners, or a non-natural owner)
purchased through an exchange that is intended not to be taxable under Section
1035 of the Internal Revenue Code, we permit joint annuitants. In all cases,
the joint annuitants must be spouses.
Under all IRA and Rollover TSA 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.
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. Certain same-sex spouses or civil union 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.
The contract is not available for purchase by Charitable Remainder Trusts.
In general, we will not permit a contract to be owned by a minor unless it is
pursuant to the Uniform Gift to Minors Act or the Uniform Transfers to Minors
Act in your state.
Under QP contracts, the owner must be the trustee of the qualified plan and the
annuitant must be the plan participant/employee. See Appendix II at the end of
this Prospectus for more information on 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. If the Guaranteed minimum income benefit converts to the
Guaranteed withdrawal benefit for life, the terms owner and Successor Owner are
intended 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 and the Guaranteed withdrawal benefit for life is
not in effect, benefits are based on the age of the older joint owner or older
joint annuitant, as applicable. There are additional owner and annuitant
requirements if the Guaranteed minimum income benefit converts to the
Guaranteed withdrawal benefit for life. See "Guaranteed withdrawal benefit for
life ("GWBL")" in "Contract features and benefits" later in this Prospectus.
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. We do not accept starter checks or travelers' checks. All
checks are subject to our ability to collect the funds. We reserve the right to
reject a payment if it is received in an unacceptable form.
For your convenience, we will accept initial and additional contributions by
wire transmittal from certain broker-dealers who have agreements with us for
this purpose. These methods of payment, including circumstances under which
such contributions are considered received by us when your order is taken by
such broker-dealers, are discussed in detail in "More information" later in
this Prospectus.
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
Your initial contribution must generally be accompanied by an 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 that
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 specifically
direct us to keep your contribution until we receive the required information.
The contribution will be applied as of the date we receive the missing
information.
--------------------------------------------------------------------------------
Our "business day" is generally any day the New York Stock Exchange is open for
regular trading and generally ends at 4:00 p.m. Eastern Time (or as of an
earlier close of regular trading). A business day does not include a day on
which we are not open due to emergency conditions determined by the Securities
and Exchange Commission. We may also close early due to such emergency
conditions. For more information about our business day and our pricing of
transactions, please see "Dates and prices at which contract events occur."
--------------------------------------------------------------------------------
WHAT ARE YOUR INVESTMENT OPTIONS UNDER THE CONTRACT?
The contract provides the following investment options: the variable investment
options, the guaranteed interest option and the account for special money
market dollar cost averaging. This section lists each of the variable
investment options and describes the guaranteed interest option. The next
section, "Allocating your contributions," discusses dollar cost averaging in
general, including the account for special money market dollar cost averaging.
Your investment options depend on whether you select Option A or Option B. If
you elect Guaranteed minimum income benefit I - Asset
22 Contract features and benefits
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Allocation, your contract will be restricted to Option A. For additional
information, see "Allocating your contributions" below.
VARIABLE INVESTMENT OPTIONS
Your investment results in any one of the variable investment options will
depend on the investment performance of the underlying portfolios. You can lose
your principal when investing in the variable investment options. In periods of
poor market performance, the net return, after charges and expenses, may result
in negative yields, including for the EQ/Money Market variable investment
option. Listed below are the currently available Portfolios, their investment
objectives and their advisers.We may, at any time, exercise our rights to limit
or terminate your contributions and allocations to any of the variable
investment options and to limit the number of variable investment options which
you may elect.
Contract features and benefits 23
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PORTFOLIOS OF THE TRUSTS
The AXA Strategic Allocation Portfolios and the EQ/AXA Franklin Templeton
Founding Strategy Core Portfolio offer contract owners a convenient opportunity
to invest in other portfolios that are managed and have been selected for
inclusion in the AXA Strategic Allocation Portfolios and the EQ/AXA Franklin
Templeton Founding Strategy Core Portfolio by AXA Equitable. AXA Advisors, LLC,
an affiliated broker-dealer of AXA Equitable, may promote the benefits of such
Portfolios to contract owners and/or suggest, incidental to the sale of the
contract, 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 Strategic Allocation Portfolios and the EQ/AXA Franklin Templeton
Founding Strategy Core Portfolio than certain other Portfolios available to you
under your contract. In addition, due to the relative diversification of the
underlying portfolios covering various asset classes and categories, the AXA
Strategic Allocation Portfolios and the EQ/AXA Franklin Templeton Founding
Strategy Core Portfolio may enable AXA Equitable to more efficiently manage AXA
Equitable's financial risks associated with certain guaranteed features
including those optional benefits that restrict allocations to the AXA
Strategic Allocation Portfolios and the EQ/AXA Franklin Templeton Founding
Strategy Core Portfolio. Please see "Allocating your contributions" in
"Contract features and benefits" for more information about your role in
managing your allocations.
AXA Equitable serves as the investment manager of the Portfolios of AXA Premier
VIP Trust and EQ Advisors Trust. For some Portfolios, AXA Equitable has entered
into sub-advisory agreements with investment advisers (the "sub-advisers") to
carry out the day-to-day investment decisions for the Portfolios. As such, AXA
Equitable oversees the activities of the sub-advisers with respect to the
Trusts and is responsible for retaining or discontinuing the services of those
sub-advisers. The chart below indicates the sub-adviser(s) for each Portfolio,
if any. The chart below also shows the currently available Portfolios and their
investment objectives.
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AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s),
Portfolio Name Objective as applicable)
------------------------------------------------------------------------------------------------------------------------------------
AXA BALANCED STRATEGY Seeks long-term capital appreciation and current income. o AXA Equitable
------------------------------------------------------------------------------------------------------------------------------------
AXA CONSERVATIVE GROWTH Seeks current income and growth of capital, with a o AXA Equitable
STRATEGY greater emphasis on current income.
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AXA CONSERVATIVE STRATEGY Seeks a high level of current income. o AXA Equitable
------------------------------------------------------------------------------------------------------------------------------------
AXA GROWTH STRATEGY Seeks long-term capital appreciation and current income, o AXA Equitable
with a greater emphasis on capital appreciation.
------------------------------------------------------------------------------------------------------------------------------------
AXA MODERATE GROWTH Seeks long-term capital appreciation and current income, o AXA Equitable
STRATEGY with a greater emphasis on capital appreciation.
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MULTIMANAGER AGGRESSIVE Long-term growth of capital. o AllianceBernstein L.P.
EQUITY o ClearBridge Advisors, LLC
o Legg Mason Capital Management, Inc.
o Marsico Capital Management, LLC
o SSgA Funds Management, Inc.
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MULTIMANAGER CORE BOND To seek a balance of high current income and capital o BlackRock Financial Management, Inc.
appreciation, consistent with a prudent level of risk. o Pacific Investment Management Company
LLC
o SSgA Funds Management, Inc.
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MULTIMANAGER INTERNATIONAL Long-term growth of capital. o AllianceBernstein L.P.
EQUITY o JPMorgan Investment Management Inc.
o Marsico Capital Management, LLC
o SSgA Funds Management, Inc.
------------------------------------------------------------------------------------------------------------------------------------
MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P.
CORE EQUITY o Janus Capital Management LLC
o SSgA Funds Management, Inc.
o Thornburg Investment Management, Inc.
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24 Contract features and benefits
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AXA Premier VIP Trust Investment Manager (or Sub-Adviser(s),
Portfolio Name Objective as applicable)
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MULTIMANAGER LARGE CAP Long-term growth of capital. o Goodman & Co. NY Ltd.
GROWTH o SSgA Funds Management, Inc.
o T. Rowe Price Associates, Inc.
o Westfield Capital Management
Company, L.P.
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MULTIMANAGER LARGE CAP Long-term growth of capital. o AllianceBernstein L.P.
VALUE o Institutional Capital LLC
o MFS Investment Management
o SSgA Funds Management, Inc.
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MULTIMANAGER MID CAP Long-term growth of capital. o AllianceBernstein L.P.
GROWTH o Franklin Advisers, Inc.
o SSgA Funds Management, Inc.
o Wellington Management Company, LLP
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MULTIMANAGER MID CAP VALUE Long-term growth of capital. o AXA Rosenberg Investment Management LLC
o SSgA Funds Management, Inc.
o Tradewinds Global Investors, LLC
o Wellington Management Company, LLP
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MULTIMANAGER SMALL CAP Long-term growth of capital. o Eagle Asset Management, Inc.
GROWTH o SSgA Funds Management, Inc.
o Wells Capital Management Inc.
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MULTIMANAGER SMALL CAP Long-term growth of capital. o Franklin Advisory Services, LLC
VALUE o Pacific Global Investment Management
Company
o SSgA Funds Management, Inc.
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MULTIMANAGER TECHNOLOGY Long-term growth of capital. o Firsthand Capital Management, Inc.
o RCM Capital Management LLC
o SSgA Funds Management, Inc.
o Wellington Management Company, LLP
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EQ Advisors Trust Investment Manager (or Sub-Adviser(s),
Portfolio Name Objective as applicable)
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EQ/ALLIANCEBERNSTEIN Seeks to achieve long-term growth of capital. o AllianceBernstein L.P.
INTERNATIONAL
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EQ/ALLIANCEBERNSTEIN SMALL Seeks to achieve long-term growth of capital. o AllianceBernstein L.P.
CAP GROWTH
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EQ/AXA FRANKLIN SMALL CAP Seeks to achieve long-term total return. o BlackRock Investment Management, LLC
VALUE CORE o Franklin Advisory Services, LLC
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EQ/AXA FRANKLIN TEMPLETON Primarily seeks capital appreciation and secondarily o AXA Equitable
FOUNDING STRATEGY CORE seeks income.
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EQ/AXA TEMPLETON GROWTH Seeks to achieve long-term capital growth. o BlackRock Investment Management, LLC
CORE o Templeton Global Advisors Limited
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Contract features and benefits 25
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EQ Advisors Trust Investment Manager (or Sub-Adviser(s),
Portfolio Name Objective as applicable)
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EQ/BLACKROCK BASIC VALUE Seeks to achieve capital appreciation and secondarily, o BlackRock Investment Management,
EQUITY income. LLC
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EQ/BLACKROCK INTERNATIONAL Seeks to provide current income and long-term growth of o BlackRock Investment Management
VALUE income, accompanied by growth of capital. International Limited
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EQ/BOSTON ADVISORS EQUITY Seeks to achieve a combination of growth and income to o Boston Advisors, LLC
INCOME achieve an above-average and consistent total return.
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EQ/CALVERT SOCIALLY Seeks to achieve long-term capital appreciation. o Calvert Asset Management Company, Inc.
RESPONSIBLE o Bridgeway Capital Management, Inc.
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EQ/CAPITAL GUARDIAN GROWTH Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
------------------------------------------------------------------------------------------------------------------------------------
EQ/CAPITAL GUARDIAN Seeks to achieve long-term growth of capital. o Capital Guardian Trust Company
RESEARCH
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EQ/COMMON STOCK INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P.
approximates the total return performance of the Russell
3000 Index, including reinvestment of dividends, at a
risk level consistent with that of the Russell 3000
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EQ/CORE BOND INDEX Index. Seeks to achieve a total return before expenses o SSgA Funds Management, Inc.
that approximates the total return performance of the
Barclays Capital U.S. Aggregate Bond Index, including
reinvestment of dividends, at a risk level consistent
with that of the Aggregate Bond Index.
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EQ/DAVIS NEW YORK VENTURE Seeks to achieve long-term growth of capital. o Davis Selected Advisers, L.P.
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EQ/EQUITY 500 INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P.
approximates the total return performance of the S&P
500 Index, including reinvestment of dividends, at a
risk level consistent with that of the S&P 500 Index.
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EQ/EVERGREEN OMEGA Seeks to achieve long-term capital growth. o Evergreen Investment Management
Company, LLC
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EQ/INTERMEDIATE GOVERNMENT Seeks to achieve a total return before expenses that o SSgA Funds Management, Inc.
BOND INDEX approximates the total return performance of the Barclays
Capital Intermediate Government Bond Index, including
reinvestment of dividends, at a risk level consistent
with that of the Barclays Capital Intermediate
Government Bond Index.
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EQ/INTERNATIONAL CORE PLUS Seeks to achieve long-term growth of capital.
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EQ/INTERNATIONAL GROWTH Seeks to achieve capital appreciation. o AXA Equitable
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EQ/JPMORGAN VALUE Seeks to achieve long-term capital appreciation. o Hirayama Investments, LLC
OPPORTUNITIES o SSgA Funds Management, Inc.
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EQ/LARGE CAP CORE PLUS Seeks to achieve long-term growth of capital with a o Wentworth Hauser and Violich, Inc.
secondary objective to seek reasonable current income. o MFS Investment Management
For purposes of this Portfolio, the words "reasonable o JPMorgan Investment Management Inc.
current income" mean moderate income.
o AXA Equitable
o Institutional Capital LLC
o SSgA Funds Management, Inc.
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26 Contract features and benefits
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EQ Advisors Trust Investment Manager (or Sub-Adviser(s),
Portfolio Name Objective as applicable)
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EQ/LARGE CAP GROWTH INDEX Seeks to achieve a total return before expenses that o AllianceBernstein L.P.
approximates the total return performance of the Russell
1000 Growth Index, including reinvestment of dividends
at a risk level consistent with that of the Russell 1000
Growth Index.
------------------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP GROWTH PLUS Seeks to provide long-term capital growth. o AXA Equitable
o Marsico Capital Management, LLC
o SSgA Funds Management, Inc.
------------------------------------------------------------------------------------------------------------------------------------
EQ/LARGE CAP VALUE INDEX Seeks to achieve a total return before expenses that o SSgA Funds Management, Inc.
approximates the total return performance of the Russell
1000 Value Index, including reinvestment of dividends,
at a risk level consistent with that of the Russell 1000
Value Index.
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EQ/LARGE CAP VALUE PLUS Seeks to achieve capital appreciation. o AllianceBernstein L.P.
o AXA Equitable
------------------------------------------------------------------------------------------------------------------------------------
EQ/LORD ABBETT GROWTH AND Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC
INCOME income without excessive fluctuation in market value.
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EQ/LORD ABBETT LARGE CAP Seeks to achieve capital appreciation and growth of o Lord, Abbett & Co. LLC
CORE income with reasonable risk.
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EQ/MID CAP INDEX Seeks to achieve a total return before expenses that o SSgA Funds Management, Inc.
approximates the total return performance of the S&P
Mid Cap 400 Index, including reinvestment of dividends,
at a risk level consistent with that of the S&P Mid Cap
400 Index.
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EQ/MID CAP VALUE PLUS Seeks to achieve long-term capital appreciation. o AXA Equitable
o SSgA Funds Management, Inc.
o Wellington Management Company LLP
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EQ/MONEY MARKET Seeks to obtain a high level of current income, preserve o The Dreyfus Corporation
its assets and maintain liquidity.
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EQ/OPPENHEIMER GLOBAL Seeks to achieve capital appreciation. o OppenheimerFunds, Inc.
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EQ/OPPENHEIMER MAIN STREET Seeks to achieve long-term capital appreciation. o OppenheimerFunds, Inc.
OPPORTUNITY
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EQ/OPPENHEIMER MAIN STREET Seeks to achieve capital appreciation. o OppenheimerFunds, Inc.
SMALL CAP
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EQ/QUALITY BOND PLUS Seeks to achieve high current income consistent with o AllianceBernstein L.P.
moderate risk to capital. o AXA Equitable
o SSgA Funds Management, Inc.
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EQ/SMALL COMPANY INDEX Seeks to replicate as closely as possible (before the o AllianceBernstein L.P.
deduction of Portfolio expenses) the total return of
the Russell 2000 Index.
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EQ/T. ROWE PRICE GROWTH Seeks to achieve long-term capital appreciation and o T. Rowe Price Associates, Inc.
STOCK secondarily, income.
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Contract features and benefits 27
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EQ Advisors Trust Investment Manager (or Sub-Adviser(s),
Portfolio Name Objective as applicable)
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EQ/UBS GROWTH AND INCOME Seeks to achieve total return through capital appreciation o UBS Global Asset Management
with income as a secondary consideration. (Americas) Inc.
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EQ/VAN KAMPEN COMSTOCK Seeks to achieve capital growth and income. o Morgan Stanley Investment Management
Inc.
------------------------------------------------------------------------------------------------------------------------------------
EQ/VAN KAMPEN MID CAP Seeks to achieve capital growth. o Morgan Stanley Investment Management
GROWTH Inc.
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You should consider the investment objective, risks, and charges and expenses
of the Portfolios carefully before investing. The prospectuses for the Trusts
contain this and other important information about the Portfolios. The
prospectuses should be read carefully before investing. In order to obtain
copies of Trust prospectuses that do not accompany this Prospectus, you may
call one of our customer service representatives at 1-800-789-7771.
28 Contract features and benefits
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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.
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.
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, 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 deduction of annual
administrative charges, any withdrawal charges and any optional benefit
charges. See Appendix VI later in this Prospectus for state variations.
Depending on the state where your contract is issued, your lifetime minimum
rate ranges from 1.00% to 3.00%. The data page for your contract shows the
lifetime minimum rate. Check with your financial professional as to which rate
applies in your state. The minimum yearly rate will never be less than the
lifetime minimum rate. The minimum yearly rate for 2009 is 1.50% or 3.00%,
depending on your lifetime minimum rate. Current interest rates will never be
less than the yearly guaranteed interest rate.
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.
ALLOCATING YOUR CONTRIBUTIONS
Your allocation alternatives and procedures depend on whether you select Option
A - Asset Allocation or Option B - Custom Selection, which we describe below.
You must select either Option A - Asset Allocation or Option B - Custom
Selection with your initial contribution. If you elect Guaranteed minimum
income benefit I - Asset Allocation, your contract is restricted to Option A.
If you elect Guaranteed minimum income benefit II - Custom Selection, you can
choose either Option A or Option B. In addition, if you are permitted to
allocate contributions of more than $1,500,000 to Accumulator(R) contracts with
the same owner or annuitant, we may restrict your contract to Option A.
Subsequent contributions will be allocated according to the investment
allocations on file. If you would like your subsequent contributions to be
allocated differently, you must submit new allocation instructions on a form
that we provide. We will not honor letters of instruction directing the
allocation. If you submit new allocation instructions for subsequent
contributions under Option B, those allocation instructions must comply with
the Option B rules that are in effect at the time that you submit the new
allocation instructions. Under certain circumstances you may be able or
required to switch from Option A or B to the other, under rules we discuss
below.
OPTION A -- ASSET ALLOCATION
Under Option A, the Asset Allocation option, all of your account value must be
allocated to one or more of the following options: (1) the AXA Strategic
Allocation Portfolios (the "Allocation Portfolios"); (2) the guaranteed
interest option; (3) the EQ/Money Market Portfolio; and (4) the account for
special money market dollar cost averaging.
Allocations must be in whole percentages, and you may change your allocations
at any time. No more than 25% of any contribution may be allocated to the
guaranteed interest option. The total of your allocations into all available
investment options must equal 100%. Your ability to allocate contributions to
investment options may be subject to restrictions in certain states. See
Appendix VI later in this Prospectus for state variations. Dollar cost
averaging programs are available in connection with Option A, and they are
discussed in "Dollar cost averaging" below. Rebalancing is not available with
Option A.
OPTION B -- CUSTOM SELECTION
Under Option B, the Custom Selection option, all of your account value must be:
(1) allocated to the variable investment options according to the category and
investment option limits described below; or (2) allocated to the account for
special money market dollar cost averaging. The guaranteed interest option is
not available under Option B.
If you do not elect the account for special money market dollar cost averaging,
all of your account value must be allocated among the investment options in the
following four categories:
Category 1 -- Fixed Income
EQ/Core Bond Index
EQ/Intermediate Government Bond Index
EQ/Money Market
EQ/Quality Bond PLUS
Multimanager Core Bond
Category 2 -- Core Diversified
AXA Balanced Strategy
AXA Conservative Growth Strategy
AXA Conservative Strategy
AXA Growth Strategy
AXA Moderate Growth Strategy
EQ/AXA Franklin Templeton Founding Strategy Core
EQ/BlackRock Basic Value Equity
EQ/Boston Advisors Equity Income
EQ/Capital Guardian Research
EQ/Common Stock Index
EQ/Equity 500 Index
EQ/Evergreen Omega
EQ/JPMorgan Value Opportunities
EQ/Large Cap Core PLUS
EQ/Large Cap Growth Index
EQ/Large Cap Growth PLUS
EQ/Large Cap Value Index
EQ/Large Cap Value PLUS
Contract features and benefits 29
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EQ/Lord Abbett Growth and Income
EQ/Lord Abbett Large Cap Core
EQ/Oppenheimer Main Street Opportunity
EQ/T. Rowe Price Growth Stock
EQ/UBS Growth and Income
Multimanager Large Cap Core Equity
Multimanager Large Cap Value
Category 3 -- Small/Mid/International
EQ/AllianceBernstein International
EQ/AllianceBernstein Small Cap Growth
EQ/BlackRock International Value
EQ/International Core PLUS
EQ/International Growth
EQ/Mid Cap Index
EQ/Mid Cap Value PLUS
EQ/Oppenheimer Global
EQ/Oppenheimer Main Street Small Cap
EQ/Small Company Index
Multimanager International Equity
Multimanager Mid Cap Growth
Multimanager Mid Cap Value
Multimanager Small Cap Growth
Multimanager Small Cap Value
Category 4 -- Specialty
EQ/AXA Franklin Small Cap Value Core
EQ/AXA Templeton Growth Core
EQ/Calvert Socially Responsible
EQ/Capital Guardian Growth
EQ/Davis New York Venture
EQ/Van Kampen Comstock
EQ/Van Kampen Mid Cap Growth
Multimanager Aggressive Equity
Multimanager Large Cap Growth
Multimanager Technology
Your contributions in the four categories must also generally be allocated
according to the following category and investment option limits.
CATEGORY AND INVESTMENT OPTION LIMITS.
The chart below sets forth the general category and investment option limits of
Option B - Custom Selection.
--------------------------------------------------------------------------------
3 -- Small/
Mid/
1 -- Fixed 2 -- Core Interna- 4 -- Spe-
Category Income Diversified tional cialty
--------------------------------------------------------------------------------
Maximum for 100% 70% 20% 10%
category
Minimum for 30% 0% 0% 0%
category
Maximum for 15%(1) 15%(2) 10%(3) 5%
each option
--------------------------------------------------------------------------------
(1) EQ/Core Bond Index, EQ/Intermediate Government Bond Index and EQ/Money
Market have a 30% per option maximum limit.
(2) AXA Balanced Strategy, AXA Conservative Growth Strategy, AXA Conservative
Strategy, AXA Growth Strategy and AXA Moderate Growth Strategy have a 70%
per option maximum limit. EQ/Common Stock Index, EQ/Equity 500 Index,
EQ/Large Cap Growth Index and EQ/Large Cap Value Index have a 35% per
option maximum limit.
(3) EQ/Mid Cap Index and EQ/Small Company Index have 20% per option maximum
limit.
There are no minimum allocations for any one investment option. Allocations
must be in whole percentages. The total of your allocations into all available
investment options must equal 100%. Your ability to allocate contributions to
investment options may be subject to restrictions in certain states. See
Appendix VI later in this Prospectus for state variations.
REBALANCING (OPTION B ONLY). Under Option B, your account value will be
rebalanced automatically each quarter of your contract year. Rebalancing will
occur on the same day of the month as your contract date. If that date is after
the 28th of a month, rebalancing will occur on the first business day of the
following month. If the date occurs on a date other than a business day, the
rebalancing will occur on the next business day. The rebalance for the last
quarter of the contract year will occur on the contract anniversary date. If
this date occurs on a day other than a business day, the rebalance will occur
on the business day immediately preceding the contract anniversary date. When
we rebalance your 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 received from you. Rebalancing does not assure a profit or protect against
loss, so you should periodically review your allocation percentages as your
needs change. You may request a rebalancing on the transaction date of a
subsequent contribution.
TRANSFERS. You may make transfers among the investment options available under
Option B, provided that the transfer meets the category and investment option
limits in place at the time of the transfer. In this section, we explain our
current Option B transfer rules, which we may change in the future. You may
make a transfer from one investment option to another investment option within
the same category provided the resulting allocation to the receiving investment
option does not exceed the investment option maximum in place at the time of
the transfer. You can make a transfer from an investment option in one category
to an investment option in another category as long as the minimum and maximum
rules for the transferring and receiving category are met and the maximum rule
for the receiving investment option is met. You may also request a transfer
that would reallocate your account value based on percentages, provided those
percentages are consistent with the category and investment option limits in
place at the time of the transfer. In calculating the limits for any transfer,
we use the account value percentages as of the date prior to the transfer.
Transfer requests do not change the allocation instructions on file for any
future contribution or rebalancing, although transfer requests will be
considered subject to the Custom Selection rules at the time of the request. An
investment option transfer under Option B does not automatically change your
allocation instructions for the rebalancing of your account on a quarterly
basis. 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 account. If you wish to change your alloca-
30 Contract features and benefits
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tion instructions for the quarterly rebalancing of your account, these
instructions must meet the category and investment option limits in place at
the time of the transfer and must be made in writing) on a form we provide and
sent to the Service Center. Please note, however, that an allocation change for
future contributions will automatically change the rebalancing instructions on
file for your account.
ALLOCATION INSTRUCTION CHANGES. You may change your instructions for
allocations of future contributions. Any revised allocation instructions will
also be used for quarterly rebalancing. Any revised allocation instructions
must meet the category and investment limits in place at the time that the
instructions are received.
POSSIBLE CHANGES TO THE CATEGORY AND INVESTMENT OPTION LIMITS. We may in the
future revise the category limits, the investment limits, the categories
themselves, and the investment options within each category. If we change an
investment option from one category to another, you need not change your
allocation instructions on file if you do not have any allocations to that
option or you do not initiate a transfer request to that option. However, while
you do not need to change your allocation instructions on file, if you submit a
transfer request after there has been a change in category or investment option
limits, you will be subject to the new category and investment option limits
for future transactions. If you have an allocation to an investment option for
which there has been a change and you submit a transfer request, we will
require that you change your allocation instructions on file to comply with the
new category and investment option limits if your instructions on file do not
comply with the new rules. Any changes to category or investment option limits
will not be applicable to subsequent contributions unless you change your
allocation instructions or request a transfer. We may make changes to the
category and investment option limits due to changes in the options, such as
reorganizations or substitutions.
SWITCHING BETWEEN OPTIONS
If you elect the Guaranteed minimum income benefit I - Asset Allocation, your
contract will be restricted to Option A (even if you drop the Guaranteed
minimum income benefit I - Asset Allocation). If you elect either Guaranteed
minimum income benefit and it converts to the Guaranteed withdrawal benefit for
life, your contract will be restricted to Option A at the time of the
conversion. For more information about allocation changes upon an automatic
conversion to the Guaranteed withdrawal benefit for life, see "Automatic
conversion" in "Guaranteed withdrawal benefit for life" later in this
Prospectus.
If you do not have the Guaranteed minimum income benefit I - Asset Allocation
or have not converted to the Guaranteed withdrawal benefit for life, you may
select either Option A or Option B. In addition, you may switch between Option
A and Option B. There are currently no limits on the number of switches between
options, but the Company reserves the right to impose a limit. If you move from
one option to another, you are subject to the rules applicable to the new
option that are in place at the time of the switch.
YOUR RESPONSIBILITY FOR ALLOCATION DECISIONS
The contract is between you and AXA Equitable. The contract is not an
investment advisory account, and AXA Equitable is not providing any investment
advice or managing the allocations under your contract. In the absence of a
specific written arrangement to the contrary, you, as the owner of the
contract, have the sole authority to 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/her regarding any different arrangements that may apply.
DOLLAR COST AVERAGING
We offer a variety of dollar cost averaging programs. Under Option A or Option
B, you may participate in the special money market dollar cost averaging
program. Under Option A, but not Option B, you may participate in one of two
Investment simplifier programs or the general dollar cost averaging program.
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. Under Option A, your dollar cost averaging transfer allocations to the
guaranteed interest option cannot exceed 25% of your dollar cost averaging
transfer allocations. Under Option B, dollar cost averaging transfer
allocations must also meet Custom Selection guidelines. Regular allocations to
the variable investment options will cause you to purchase more units if the
unit value is low and fewer units if the unit value is high. Therefore, you may
get a lower average cost per unit over the long term. This plan of investing,
however, does not guarantee that you will earn a profit or be protected against
losses.
--------------------------------------------------------------------------------
Units measure your value in each variable investment option.
--------------------------------------------------------------------------------
SPECIAL MONEY MARKET DOLLAR COST AVERAGING PROGRAM. You may dollar cost average
from the account for special money market dollar cost averaging option (which
is part of the EQ/Money Market investment option) into the other investment
options. Under Option A, you may allocate some or all of your initial
contribution to the program. If you elect to allocate only some of your
contribution to the program, the remaining contribution amount will be invested
as directed in the investment options available under Option A. For amounts
allocated to the program, you may provide allocation instructions different
than the allocation instructions applicable to the amounts invested directly
under Option A. Under Option B, if you elect the program, 100% of your
contributions must be allocated to the program. Under the program, we will
transfer account value into the investment options based on the most recent
allocation instructions we have received from you. Under both Option A and
Option B, your initial allocation to the program must be at least $2,000. Under
Option A or Option B, you may allocate a subsequent contribution to an existing
program as long as the contribution to the program is at least $250.
Contributions into the program must be new contributions. In other words, you
may not make transfers from amounts allocated in other investment options to
initiate the program.
You may elect to participate in a 3, 6 or 12-month program. Each month, we will
transfer your account value in the account for special money market dollar cost
averaging into the other investment options
Contract features and benefits 31
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you select. Once the time period you selected has expired, you may then select
to participate in the special money market dollar cost averaging program for an
additional time period if you are still eligible to make contributions under
your contract.
Currently, the monthly transfer date from the account for special money market
dollar cost averaging option will be the same as your contract date, but not
later than the 28th day of the month. For a program selected after application,
the first transfer date and each subsequent transfer date will be one month
from the date the first contribution is made into the program, but not later
than the 28th day of the month. All amounts will be transferred out by the end
of the time period in effect. Under Option B, if a transfer occurs on the same
day as a rebalancing, the transfer will occur before the rebalancing
transaction.
The only amounts that should be transferred from the account for special money
market dollar cost averaging option are your regularly scheduled transfers to
the investment options. If you request to transfer or withdraw any other
amounts from the account for special money market dollar cost averaging, we
will transfer all of the value you have remaining in the account to the
investment options according to the allocation percentages we have on file for
you. You may cancel your participation in the program at any time by notifying
us in writing.
If the Guaranteed minimum income benefit converts to the Guaranteed withdrawal
benefit for life, the special money market dollar cost averaging program is not
available.
GENERAL DOLLAR COST AVERAGING PROGRAM. Under Option A, if your account value in
the EQ/Money Market 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 the other investment options. Under Option A, the investment
options to which transfers are made under the program may be different than the
investment options you have selected for allocation of your contributions. 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 option have been transferred out. The minimum amount
that we will transfer each time is $250.
If, on any transfer date, your value in the EQ/Money Market 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.
INVESTMENT SIMPLIFIER. Under Option A, we offer two Investment simplifier
options. You may not participate in an Investment simplifier option when you
are participating in the special money market dollar cost averaging program or
the general dollar cost averaging program. The Investment simplifier options
are not available under Option B.
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 options available under Option A. 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. The fixed-dollar 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. 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, 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
options available under Option A. The transfer date will be the last business
day of the month. The amount we will transfer will be the interest credited to
amounts you have in the guaranteed interest option from the last business day
of the prior month to the last business day of the current month. You must have
at least $7,500 in the guaranteed interest option on the date we receive your
election. 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.
INTERACTION OF DOLLAR COST AVERAGING AND INVESTMENT SIMPLIFIER WITH OTHER
CONTRACT FEATURES AND BENEFITS
You may only participate in one dollar cost averaging program at a time. See
"Transferring your money among investment options" later in this Prospectus. If
your Guaranteed minimum income benefit converts to the Guaranteed withdrawal
benefit for life, that will terminate any dollar cost averaging program you
have in place at the time, and may limit your ability to elect a new dollar
cost averaging program after conversion. See "Guaranteed withdrawal benefit for
life ("GWBL")" later in this Prospectus. Also, for information on how the
dollar cost averaging program you select may affect certain guaranteed benefits
see "Guaranteed minimum death benefit and Guaranteed minimum income benefit
base" below.
We do not deduct a transfer charge for any transfer made in connection with our
dollar cost averaging and Investment Simplifier programs. Not all dollar cost
averaging programs are available in all states. See Appendix VI later in this
Prospectus for more information on state availability.
CREDITS
A credit will also be allocated to your account value at the same time that we
allocate your contribution. Credits are allocated to the same
32 Contract features and benefits
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investment options based on the same percentages used to allocate your
contributions. The credit amounts attributable to your contributions are not
included for purposes of calculating any of the guaranteed benefits.
The amount of the credit will be 4% or 5% of each contribution based on the
following breakpoints and rules:
--------------------------------------------------------------------------------
Credit percentage
First year total contributions applied to
Breakpoints contributions
--------------------------------------------------------------------------------
Less than $350,000 4%
--------------------------------------------------------------------------------
$350,000 or more 5%
--------------------------------------------------------------------------------
The percentage of the credit is based on your total first year contributions.
This credit percentage will be credited to your initial contribution and each
additional contribution made in the first contract year (after adjustment as
described below). For QP contracts only, the credit percentage will also be
credited for contributions in the second and later contract years. The credit
will apply to additional 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.
Although the credit, as adjusted at the end of the first contract year, will be
based upon first year total contributions, the following rules affect the
percentage with which contributions made in the first contract year are
credited during the first contract year:
o Indication of intent: If you indicate in the application at the time you
purchase your contract an intention to make additional contributions to
meet one of the breakpoints (the "Expected First Year Contribution
Amount") and your initial contribution is at least 50% of the Expected
First Year Contribution Amount, your credit percentage will be as follows:
o For any contributions resulting in total contributions to date less than or
equal to your Expected First Year Contribution Amount, the credit percentage
will be the percentage that applies to the Expected First Year Contribution
Amount based on the table above.
o For any subsequent contribution that results in your total contri butions to
date exceeding your Expected First Year Contribution Amount, such that the
credit percentage should have been higher, we will increase the credit
percentage applied to that contribution, as well as any prior or subsequent
contributions made in the first contract year, accordingly.
o If at the end of the first contract year your total contributions were lower
than your Expected First Year Contribution Amount such that the credit
applied should have been lower, we will recover any Excess Credit. The
Excess Credit is equal to the difference between the credit that was
actually applied based on your Expected First Year Contribution Amount (as
applicable) and the credit that should have been applied based on first year
total contributions.
o No indication of intent:
o For your initial contribution (if available in your state) we will apply the
credit percentage based upon the above table.
o For any subsequent contribution that results in a higher appli cable credit
percentage (based on total contributions to date), we will increase the
credit percentage applied to that contribution, as well as any prior or
subsequent contributions made in the first contract year, accordingly.
In addition to the recovery of any Excess Credit, we will recover all of the
credit or a portion of the credit in the following situations:
o 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)(1)
o 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 VI later in this Prospectus
for information on state variations.
o 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.
We will recover any credit on a pro rata basis from the value in your variable
investment options and guaranteed interest option. If there is insufficient
value or no value in the variable investment options and guaranteed interest
option, any additional amount of the withdrawal required or the total amount of
the withdrawal will be withdrawn from the account for special money market
dollar cost averaging.
We do not consider credits to be contributions for purposes of any discussion
in this Prospectus. We do not include credits in calculating any of your
benefit bases under the contract, except to the extent that any benefit base
increases as the result of an annual ratchet based on an increase in your
account value, which does include credits. Credits are also not considered to
be part of your investment in the contract for tax purposes.
We use a portion of the mortality and expense risks charge and withdrawal
charge to help recover our cost of providing the credit. 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
Accumulator(R) Plus(SM) contract for 20 years, you may be better off in a
contract without a credit, and with a lower mortality and expense risk 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.
----------------------
(1) The amount we return to you upon exercise of this right to cancel will
not include any credit or the amount of charges deducted prior to
cancellation but will reflect, except in states where we are required to
return the amount of your contributions, any investment gain or loss in
the variable investment options associated with your contributions and
with the full amount of the credit.
Contract features and benefits 33
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GUARANTEED MINIMUM DEATH BENEFIT AND GUARANTEED MINIMUM INCOME BENEFIT BASE
The Guaranteed minimum death benefit base and Guaranteed minimum income benefit
base (hereinafter, in this section called your "benefit base") are used to
calculate the Guaranteed minimum income benefit and the death benefits, as
described in this section. The benefit base for a Guaranteed minimum income
benefit and an enhanced death benefit will be calculated as described below in
this section whether these options are elected individually or in combination.
Your benefit base is not an account value or a cash value. See also "Guaranteed
minimum income benefit" and "Guaranteed minimum death benefit" below.
If you add a Guaranteed minimum income benefit to your contract after issue, we
will calculate each of the benefit bases described in this section using your
account value on the contract date anniversary the Guaranteed minimum income
benefit becomes effective under your contract (the "GMIB effective date")
rather than your initial contribution, for purposes of determining the
Guaranteed minimum income benefit. See "Adding the Guaranteed minimum income
benefit after issue" later in this section. When we describe withdrawals and
additional contributions in this section, we mean withdrawals and additional
contributions made after the GMIB effective date.
As discussed immediately below, when calculating your Guaranteed minimum income
benefit and Guaranteed minimum death benefit, one of your benefit bases may
apply: (1) the Standard death benefit is based on the Standard death benefit
benefit base; (2) the Annual Ratchet to age 80 enhanced death benefit is based
on the Annual Ratchet to age 80 benefit base; (3) Greater of 4% Roll-Up to age
80 or Annual Ratchet to age 80 for the "Greater of" GMDB I enhanced death
benefit AND GMIB I - Asset Allocation are based on the GMIB I - Asset
Allocation 4% Roll-Up to age 80 benefit base and the Annual Ratchet to age 80
benefit bases; or (4) Greater of 4% Roll-Up to age 80 or the Annual Ratchet to
age 80 for the "Greater of" GMDB II enhanced death benefit AND GMIB II - Custom
Selection are based on GMIB II - Custom Selection 4% Roll-Up to age 80 benefit
base and the Annual Ratchet to age 80 benefit bases. The Guaranteed minimum
death benefits under options 3 and 4 are collectively referred to as the
"Greater of enhanced death benefits."
STANDARD DEATH BENEFIT
Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
less
o a deduction that reflects any withdrawals you make (including any applicable
withdrawal charges). The amount of this deduction is described under "How
withdrawals affect your Guaranteed minimum income benefit and Guaranteed
minimum death benefit" in "Accessing your money" later in this Prospectus. The
amount of any withdrawal charge is described under "Withdrawal charge" in
"Charges and expenses" later in the Prospectus.
4% ROLL-UP TO AGE 80 BENEFIT BASE
(USED FOR THE "GREATER OF" GMDB I ENHANCED DEATH BENEFIT, "GREATER OF" GMDB II
ENHANCED DEATH BENEFIT, GMIB I - ASSET ALLOCATION AND GMIB II - CUSTOM
SELECTION
Your benefit base is equal to:
o your initial contribution and any additional contributions to the contract;
plus
o daily roll-up; less
o a deduction that reflects any withdrawals you make (including any applicable
withdrawal charges). The amount of this deduction is described under "How
withdrawals affect your Guaranteed minimum income benefit and Guaranteed
minimum death benefit" in "Accessing your money" and the section entitled
"Charges and expenses" later in this Prospectus. The amount of any withdrawal
charge is described under "Withdrawal charge" in "Charges and expenses" later
in the Prospectus.
The effective annual roll-up rate credited to this benefit base is:
o 4% with respect to the variable investment options (including amounts
allocated to the account for special money market dollar cost averaging, but
excluding all other amounts allocated to the EQ/Money Market); the effective
annual rate may be 4% in some states. Please see Appendix VI later in this
Prospectus to see what applies in your state; and
o 2% with respect to the EQ/Money Market, the guaranteed interest option and the
loan reserve account under Rollover TSA (if applicable).
Each daily roll-up is included in the benefit base for purposes of calculating
the daily roll-up the next day, so the benefit base compounds daily at the
effective annual rate noted above.
The benefit base stops rolling up on the contract date anniversary following
the owner's (or older joint owner's, if applicable) 80th birthday.
See Appendix III for an example of the relationship between the benefit base
calculated based on the 4% Roll-Up to age 80 and a hypothetical account value.
ANNUAL RATCHET TO AGE 80 BENEFIT BASE
(USED FOR THE ANNUAL RATCHET TO AGE 80 ENHANCED DEATH BENEFIT, "GREATER OF"
GMDB I OR "GREATER OF" GMDB II ENHANCED DEATH BENEFIT AND FOR THE CORRESPONDING
GUARANTEED MINIMUM INCOME BENEFIT)
If you have not taken a withdrawal from your contract, your benefit base is
equal to the greater of either:
o your initial contribution to the contract (plus any additional
contributions),
or
o your highest account value on any contract date anniversary up to the
contract date anniversary following the owner's (or older joint
34 Contract features and benefits
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owner's, if applicable) 80th birthday (plus any contributions made since
the most recent Annual Ratchet).
If you take a withdrawal from your contract, your benefit base will be reduced
as described under "How withdrawals affect your Guaranteed minimum income
benefit, and Guaranteed minimum death benefit" in "Accessing your money" later
in this Prospectus. The amount of any withdrawal charge is described under
"Withdrawal charge" in "Charges and expenses" later in this Prospectus. After
such withdrawal, your benefit base is equal to the greater of either:
o your benefit base immediately following the most recent withdrawal (plus any
additional contributions made after the date of such withdrawal),
or
o your highest account value on any contract date anniversary after the date of
the most recent withdrawal, up to the contract date anniversary following the
owner's (or older joint owner's, if applicable) 80th birthday (plus any
contributions made since the most recent Annual Ratchet after the date of such
withdrawal).
See Appendix III for an example of the relationship between the benefit base
calculated based on the Annual Ratchet to age 80 and a hypothetical account
value.
"GREATER OF" GMDB I ENHANCED DEATH BENEFIT, "GREATER OF" GMDB II ENHANCED DEATH
BENEFIT, GMIB I - ASSET ALLOCATION AND GMIB II - CUSTOM SELECTION BENEFIT BASES
Your benefit base is equal to the greater of the benefit base computed for GMIB
I - Asset Allocation 4% Roll-Up to age 80 or the benefit base computed for the
Annual Ratchet to age 80, as described immediately above, on each contract date
anniversary. For the Guaranteed minimum income benefit, the benefit base is
reduced by any applicable withdrawal charge remaining when the option is
exercised. For more information, see "Withdrawal charge" in "Charges and
expenses" later in this Prospectus.
ROLL-UP BENEFIT BASE RESET. As described in this section, you will be eligible
to reset your Guaranteed minimum income benefit Roll-Up benefit base on certain
contract date anniversaries. The reset amount will equal the account value as
of the contract date anniversary on which you reset your Roll-Up benefit base.
The Roll-Up continues to age 80 on any reset benefit base.
If you elect GMIB I - Asset Allocation with or without "Greater of" GMDB I
enhanced death benefit, you are eligible to reset the Roll-Up benefit base for
these guaranteed benefits to equal the account value on any contract date
anniversary starting with your second contract date anniversary and ending with
the contract date anniversary following your 80th birthday.
If you elect GMIB II - Custom Selection with or without "Greater of" GMDB II
enhanced death benefit, you are eligible to reset the Roll-Up benefit base for
these guaranteed benefits to equal the account value on any contract date
anniversary starting with your second contract date anniversary and ending with
the contract date anniversary following your 80th birthday.
If you elect both a Greater of enhanced death benefit and a Guaranteed minimum
income benefit, the Roll-Up benefit bases for both are reset simultaneously
when you request a Roll-Up benefit base reset. You cannot elect a Roll-Up
benefit base reset for one benefit and not the other.
We will send you a notice in the annual statement each year that the Roll-Up
benefit base is eligible to be reset, and you will have 30 days from your
contract date anniversary to reset your Roll-Up benefit base. If your request
to reset your Roll-Up benefit base is received at our processing office more
than 30 days after your contract date anniversary, your Roll-Up benefit base
will reset on the next contract date anniversary on which you are eligible for
a reset. You may choose one of the three available reset methods: one-time
reset option, automatic annual reset program or automatic customized reset
program.
--------------------------------------------------------------------------------
ONE-TIME RESET OPTION - resets your Roll-Up benefit base on a single contract
date anniversary.
AUTOMATIC ANNUAL RESET PROGRAM - automatically resets your Roll-Up benefit base
on each contract date anniversary you are eligible for a reset.
AUTOMATIC CUSTOMIZED RESET PROGRAM - automatically resets your Roll-Up benefit
base on each contract date anniversary, if eligible, for the period you
designate.
--------------------------------------------------------------------------------
If you wish to cancel your elected reset program, your request must be received
by our processing office at least 30 days prior to your contract date
anniversary to terminate your reset program for such contract date anniversary.
Cancellation requests received after this deadline 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. If you die
before the contract date anniversary following age 80 and your spouse continues
the contract, the benefit base will be eligible to be reset on each contract
date anniversary, as described above.
If you elect to reset your Roll-Up benefit bases, we may increase the charge
for the Guaranteed minimum income benefit and the Greater of enhanced death
benefit. There is no charge increase for the Annual Ratchet to age 80 enhanced
death benefit. See both "Guaranteed minimum death benefit charge" and
"Guaranteed minimum income benefit charge" in "Charges and expenses" later in
this Prospectus for more information.
It is important to note that once you have reset your Roll-Up benefit base, a
new waiting period to exercise the Guaranteed minimum income benefit will apply
from the date of the reset. See "Exercise rules" under "Guaranteed minimum
income benefit" and "How withdrawals affect your Guaranteed minimum income
benefit and Guaranteed minimum death benefit" under "Accessing your money"
below for more information. Please note that in almost all cases, resetting
your Roll-Up 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.
Contract features and benefits 35
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If you are a traditional IRA, TSA or QP contract owner, before you reset your
Roll-Up benefit base, please consider the effect of the waiting period on your
requirement to take lifetime required minimum distributions with respect to the
contract. If you convert from a QP or TSA contract to an IRA, your waiting
period for the reset under the IRA contract will include any time that you were
a participant under the QP or TSA contract. If you must begin taking lifetime
required minimum distributions during the 10-year waiting period, you may want
to consider taking the annual lifetime required minimum distribution calculated
for the contract from another permissible contract or funding vehicle that you
maintain. See "Lifetime required minimum distribution withdrawals" and "How
withdrawals affect your Guaranteed minimum income benefit and Guaranteed
minimum death benefit" in "Accessing your money." Also, see "Required minimum
distributions" under "Individual retirement arrangements (IRAs)" and
"Tax-sheltered annuity contracts (TSAs)" in "Tax information" and Appendix II
-- "Purchase considerations for QP Contracts" later in this Prospectus.
ANNUITY PURCHASE FACTORS
Annuity purchase factors are the factors applied to determine your periodic
payments under the Guaranteed minimum income benefit and annuity payout
options. The Guaranteed minimum income benefit is discussed under "Guaranteed
minimum income benefit option" 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 ("GMIB") if you
elect it at issue. If you add the benefit to your contract after issue, certain
additional requirements apply, and the way the benefit is calculated may differ
from how it is calculated if you elect it at issue. See "Adding the Guaranteed
minimum income benefit after issue" later in this section.
The Guaranteed minimum income benefit is available to owners ages 20-70.
You may elect one of the following:
o The Guaranteed minimum income benefit I - Asset Allocation that includes the
4% Roll-Up benefit base ("GMIB I - Asset Allocation").
o The Guaranteed minimum income benefit II - Custom Selection that includes the
4% Roll-Up benefit base ("GMIB II - Custom Selection").
Both options include the ability to reset your Guaranteed minimum income
benefit base. See "Roll-Up benefit base reset" earlier in this section. Under
GMIB I - Asset Allocation, you are restricted to the investment options
available under Option A - Asset Allocation. Under GMIB II - Custom Selection,
you can choose either Option A - Asset Allocation or Option B - Custom
Selection.
If you elect the Guaranteed minimum income benefit I - Asset Allocation, you
may elect the Standard death benefit, Annual Ratchet to age 80 enhanced death
benefit, or the "Greater of" GMDB I enhanced death benefit. You may not elect
the "Greater of" GMDB II enhanced death benefit.
If you elect the Guaranteed minimum income benefit II--Custom Selection, you
may elect the Standard death benefit, Annual Ratchet to age 80 enhanced death
benefit, or the "Greater of" GMDB II enhanced death benefit. You may not elect
the "Greater of" GMDB I enhanced death benefit.
If the contract is jointly owned, the guaranteed minimum income benefit will be
calculated on the basis of the older owner's age. There is an additional charge
for the Guaranteed minimum income benefit which is described under "Guaranteed
minimum income benefit charge" in "Charges and expenses" later in this
Prospectus.
If the owner was older than age 60 at the time an IRA, QP or Rollover TSA
contract was issued or the Guaranteed minimum income benefit was added to the
contract, the Guaranteed minimum income benefit may not be an appropriate
feature because the minimum distributions required by tax law generally must
begin before the Guaranteed minimum income benefit can be exercised. See "How
withdrawals affect your Guaranteed minimum income benefit and Guaranteed
minimum death benefit" in "Accessing your money" later in this Prospectus.
If you elect the Guaranteed minimum income benefit option 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 for more
information.
The Guaranteed minimum income benefit guarantees you a minimum amount of fixed
income under your choice of a life annuity fixed payout option or a life with a
period certain payout option. You choose which of these payout options you want
and whether you want the option to be paid on a single or joint life basis at
the time you exercise your Guaranteed minimum income benefit. The maximum
period certain available under the life with a period certain payout option is
10 years. This period may be shorter, depending on the owner's age as follows:
-------------------------------------------------------
Level payments
-------------------------------------------------------
Owner's age at exercise Period certain years
-------------------------------------------------------
80 and younger 10
We may also make other forms of payout options available. For a description of
payout options, see "Your annuity payout options" in "Accessing your money"
later in this Prospectus.
--------------------------------------------------------------------------------
The Guaranteed minimum income benefit should be regarded as a safety net only.
--------------------------------------------------------------------------------
When you exercise the Guaranteed minimum income benefit, the annual lifetime
income that you will receive will be the greater of (i) your Guaranteed minimum
income benefit which is calculated by applying your Guaranteed minimum income
benefit base, less any applicable withdrawal charge remaining, to guaranteed
annuity pur-
36 Contract features and benefits
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chase factors, or (ii) the income provided by applying your account value to
our then current annuity purchase factors. For Rollover TSA only, we will
subtract from the Guaranteed minimum income benefit base or account value any
outstanding loan, including interest accrued but not paid. You may also elect
to receive monthly or quarterly payments as an alternative. The payments will
be less than 1/12 or 1/4 of the annual payments, respectively, due to the
effect of interest compounding. The benefit base is applied only to the
guaranteed annuity purchase factors under the Guaranteed minimum income benefit
in your contract and not to any other guaranteed or current annuity purchase
rates. The amount of income you actually receive will be determined when we
receive your request to exercise the benefit.
When you elect to receive annual lifetime income, your contract 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 Guaranteed minimum income benefit, you should consider the
fact that it provides a form of insurance and is based on conservative
actuarial factors. Therefore, even if your account value is less than your
benefit base, you may generate more income by applying your account value to
current annuity purchase factors. We will make this comparison for you when the
need arises.
GUARANTEED MINIMUM INCOME BENEFIT "NO LAPSE GUARANTEE". In general, if your
account value falls to zero (except as discussed below) the Guaranteed minimum
income benefit will be exercised automatically, based on the owner's (or older
joint owner's, if applicable) current age and benefit base as follows:
o You will be issued a supplementary contract based on a single life with a
maximum 10 year period certain. Payments will be made annually starting one
year from the date the account value fell to zero.
o You will have 30 days from when we notify you to change the payout option
and/or the payment frequency.
Please note that we will not automatically exercise the Guaranteed minimum
income benefit, as described above, if you have a TSA contract and withdrawal
restrictions apply.
The no lapse guarantee will terminate under the following circumstances:
o If your aggregate withdrawals during any contract year exceed 4% of the
Roll-Up benefit base (as of the beginning of the contract year or in the first
contract year, for contracts in which the Guaranteed minimum income benefit is
elected at issue, all contributions received in the first 90 days);
o Upon the contract date anniversary following the owner (or older joint owner,
if applicable) reaching age 80.
Please note that if you participate in our Automatic RMD service, an automatic
withdrawal under that program will not cause the no lapse guarantee to
terminate even if a withdrawal causes your total contract year withdrawals to
exceed 4% of your Roll-Up benefit base at the beginning of the contract year.
EXERCISE OF GUARANTEED MINIMUM INCOME BENEFIT. On each contract date
anniversary that you are eligible to exercise the Guaranteed minimum income
benefit, 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 Guaranteed minimum income benefit. 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 Guaranteed
minimum income benefit, 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
payment contract is issued. You may choose to take a withdrawal prior to
exercising the Guaranteed minimum income benefit, which will reduce your
payments. You may not partially exercise this benefit. See "Accessing your
money" under "Withdrawing your account value" later in this Prospectus.
Payments end with the last payment before the annuitant's (or joint
annuitant's, if applicable) death, or if later, the end of the period certain
(where the payout option chosen includes a period certain).
EXERCISE RULES. The latest date you may exercise the Guaranteed minimum income
benefit is the 30th day following the contract date anniversary following your
80th birthday. Withdrawal charges will not apply when the Guaranteed minimum
income benefit is exercised at age 80. Other options are available to you on
the contract anniversary following your 80th birthday. See "Guaranteed
withdrawal benefit for life ("GWBL")" later in this Prospectus. In addition,
eligibility to exercise the Guaranteed minimum income benefit is based on the
owner's (or older joint owner's, if applicable) age as follows:
o If you were at least age 20 and no older than age 44 when the contract was
issued or on the GMIB effective date, you are eligible to exercise the
Guaranteed minimum income benefit within 30 days following each contract date
anniversary beginning with the 15th contract date anniversary or GMIB
effective date anniversary.
o If you were at least age 45 and no older than age 49 when the contract was
issued or on the GMIB effective date, you are eligible to exercise the
Guaranteed minimum income benefit within 30 days following each contract date
anniversary after age 60.
o If you were at least age 50 and no older than age 70 when the contract was
issued or on the GMIB effective date, you are eligible to exercise the
Guaranteed minimum income benefit within 30 days following each contract date
anniversary beginning with the 10th contract date anniversary or GMIB
effective date anniversary.
Please note:
(i) if you elected to add the Guaranteed minimum income benefit when you were
age 70 or older or the Roll-Up benefit base was reset when you were
between the ages of 70 and 80, the only time you may exercise the
Guaranteed minimum income benefit is within 30 days following the
contract date anniversary following your attainment of age 80;
(ii) for Accumulator(R) Plus(SM) QP contracts, the Plan participant can
Contract features and benefits 37
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exercise the Guaranteed minimum income benefit 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 Accumulator(R) Plus(SM)
QP contract into an Accumulator(R) Plus(SM) Rollover IRA. This process
must be completed within the 30-day timeframe following the contract date
anniversary in order for the Plan participant to be eligible to exercise,
However, if the Guaranteed minimum income benefit 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 Guaranteed minimum income benefit amount and
account value, and make a withdrawal from the contract if necessary. See
"How withdrawals affect your Guaranteed minimum income benefit and
Guaranteed minimum death benefit" in "Accessing your money" later in this
Prospectus.
(iv) for Accumulator(R) Plus(SM) Rollover TSA contracts, you may exercise the
Guaranteed minimum income benefit only if you effect a rollover of the
TSA contract to an Accumulator(R) Plus(SM) Rollover IRA. This may only
occur when you are eligible for a distribution from the TSA. This process
must be completed within the 30-day timeframe following the contract date
anniversary in order for you to be eligible to exercise;
(v) if you reset the Roll-Up 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
80. Please note that in most cases, resetting your Roll-Up benefit base
will lengthen the waiting period;
(vi) a spouse beneficiary or younger spouse joint owner under Spousal
continuation may only continue the Guaranteed minimum income benefit if
the contract is not past the last date on which the original owner could
have exercised the benefit. In addition, the spouse beneficiary or
younger spouse joint owner must be eligible to continue the benefit and
to exercise the benefit under the applicable exercise rule (described in
the above bullets) using the following additional rules. 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 or on the GMIB effective
date, if the Guaranteed minimum income benefit is added after issue, for
purposes of determining the availability of the benefit and which of the
exercise rules applies. 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 will not be able to exercise the Guaranteed minimum income
benefit, 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. The original contract issue date
(or GMIB effective date) will continue to apply for purposes of the
exercise rules.
(vii) if the contract is jointly owned, you can elect to have the Guaranteed
minimum income benefit 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; and
(viii) if the contract is owned by a trust or other non-natural person,
eligibility to elect or exercise the Guaranteed minimum income benefit 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 both "Insufficient account value" in "Determining your contract's
value" and "How withdrawals affect your Guaranteed minimum income benefit and
Guaranteed minimum death benefit" in "Accessing your money" and the section
entitled "Charges and expenses" later in this Prospectus for more information
on these guaranteed benefits.
ADDING THE GUARANTEED MINIMUM INCOME BENEFIT AFTER ISSUE
You may be eligible to add the Guaranteed minimum income benefit to your
contract after issue (subject to the requirements described below) so long as:
(i) no more than three months have elapsed since your contract was issued, or
(ii) we continue to offer the Guaranteed minimum income benefit, in the form
described earlier in this section, including the maximum fee and the roll-up
rate, in the state in which your contract was issued. Check with your financial
professional to see whether we are still offering this version of the
Guaranteed minimum income benefit in your state.
If you add the Guaranteed minimum income benefit after issue, it will function
as described earlier in this section, under "Guaranteed minimum income
benefit", with certain exceptions:
o The owner (and joint owner, if any) must be between the ages of 20 and 74 on
the date we receive your election form at our processing office in good
order (the "GMIB addition date").
o The Guaranteed minimum income benefit will become effective under your
contract on the contract date anniversary that follows the GMIB addition date
(the "GMIB effective date"). If the GMIB addition date is a contract date
anniversary, the GMIB effective date will be that date as well.
o Your initial Guaranteed minimum income benefit base will be equal to the
account value on the GMIB effective date. Subsequent adjustments to your
Guaranteed minimum income benefit base will be calculated as described above
in the section "Guaranteed minimum death benefit and Guaranteed minimum income
benefit base" earlier in this Prospectus.
o If you elected Guaranteed minimum income benefit I - Asset Allocation at
issue, you may not later drop that benefit to add the Guaranteed minimum
income benefit II - Custom Selection. If you elected Guaranteed minimum income
benefit II - Custom Selection at issue, you may not later drop that benefit to
add the Guaranteed minimum income benefit I - Asset Allocation.
38 Contract features and benefits
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o If you have collaterally assigned all or a portion of the value of your NQ
contract, you must terminate the collateral assignment before you elect the
Guaranteed minimum income benefit. See "Transfers of ownership, collateral
assignments, loans and borrowing" in "More information" later in this
Prospectus.
DROPPING THE GUARANTEED MINIMUM INCOME BENEFIT AFTER ISSUE
You may drop the Guaranteed minimum income benefit from your contract after
issue, subject to the following restrictions:
o You may not drop the Guaranteed minimum income benefit if there are any
withdrawal charges in effect under your contract, including withdrawal charges
applicable to subsequent contributions.
o If you add the Guaranteed minimum income benefit after your contract is
issued, you may not drop the benefit until the latest of: (1) the expiration
of any withdrawal charges in effect under your contract, (2) the contract date
anniversary following the GMIB effective date, and (3) four years from the
date that the contract was issued.
o The Guaranteed minimum income benefit will be dropped from your contract on
the date we receive your election form at our processing office in good order.
If you drop the Guaranteed minimum income benefit on a date other than a
contract date anniversary, we will deduct a pro rata portion of the Guaranteed
minimum income benefit charge for the contract year on that date.
o If you elect the "Greater of" GMDB I or "Greater of" GMDB II and the
corresponding Guaranteed minimum income benefit, and subsequently drop the
Guaranteed minimum income benefit prior to age 80, we will no longer deduct
the Guaranteed minimum income benefit charge. We will also automatically
terminate the Guaranteed minimum death benefit charge and apply the standard
death benefit.
If a benefit has been dropped, you will receive a letter confirming that the
benefit has been dropped. If you drop the Guaranteed minimum income benefit you
will not be permitted to add the Guaranteed minimum income benefit to your
contract again. See "Guaranteed minimum death benefit" below for more
information regarding how dropping the Guaranteed minimum income benefit will
affect the Guaranteed minimum death benefit.
GUARANTEED MINIMUM DEATH BENEFIT
Your contract provides a Standard death benefit. If you do not elect one of the
enhanced death benefits described below when your contract is issued, the death
benefit is equal to your account value as of the date we receive satisfactory
proof of death, any required instructions for the method of payment,
information and forms necessary to effect payment, OR the Standard death
benefit, whichever provides the higher amount. The Standard death benefit is
equal to your total contributions, adjusted for withdrawals (and any associated
withdrawal charges). The Standard death benefit is available to all owners.
If you elect one of the enhanced death benefits, the death benefit is equal to
your account value as of the date we receive satisfactory proof of the owner's
(or older joint owner's, if applicable) death, any required instructions for
the method of payment, information and forms necessary to effect payment, or
your elected enhanced death benefit on the date of the owner's (or older joint
owner's, if applicable) death, adjusted for subsequent withdrawals (and
associated withdrawal charges), whichever provides the higher amount. Once your
contract is issued, you may not change or voluntarily terminate your death
benefit. See "Payment of death benefit" later in this Prospectus for more
information.
You may choose from three enhanced death benefit options:
o Annual Ratchet to age 80;
o The "Greater of" GMDB I: Greater of 4% Roll-Up to age 80 or Annual Ratchet to
age 80 (available only if elected in connection with the Guaranteed minimum
income benefit I - Asset Allocation); and
o The "Greater of" GMDB II: Greater of 4% Roll-Up to age 80 or Annual Ratchet to
age 80 (available only if elected in connection with the Guaranteed minimum
income benefit II - Custom Selection).
The Annual Ratchet to age 80 enhanced death benefit can be elected by itself.
Each Greater of enhanced death benefit is available only with the corresponding
Guaranteed minimum income benefit. Therefore, the "Greater of" GMDB I enhanced
death benefit can only be elected if you also elect the Guaranteed minimum
income benefit I - Asset Allocation. The "Greater of" GMDB II enhanced death
benefit can only be elected if you also elect the Guaranteed minimum income
benefit II - Custom Selection. Each enhanced death benefit has an additional
charge. There is no additional charge for the Standard death benefit.
If you elect to drop the Guaranteed minimum income benefit before the contract
date anniversary following age 80, the Greater of enhanced death benefit will
be dropped automatically.
If the Guaranteed minimum income benefit is dropped without converting to the
Guaranteed withdrawal benefit for life within 30 days of the contract date
anniversary following age 80, then the Greater of enhanced death benefit will
be retained, along with the associated charges and withdrawal treatment. If a
benefit has been dropped, you will receive a letter confirming that the drop
has occurred. See "Dropping the Guaranteed minimum income benefit after issue"
earlier in this section for more information.
If the Greater of enhanced death benefit is dropped, your death benefit value
will be what the value of the Standard Death Benefit would have been if the
Standard Death Benefit were elected at issue. If the "Greater of" enhanced
death benefit is dropped on a contract anniversary, charges will be taken, but
will not be taken on future contract date anniversaries. If the "Greater of"
enhanced death benefit is not dropped on a contract anniversary, then the pro
rata portion of the fees will be charged before future charges become
non-applicable.
If you elect one of the enhanced death benefit options described above and
change ownership of the contract, generally the benefit will automatically
terminate, except under certain circumstances. If this occurs, any enhanced
death benefit elected will be replaced automatically with the Standard death
benefit. See "Transfers of ownership,
Contract features and benefits 39
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collateral assignments, loans and borrowing" in "More information" later in
this Prospectus for more information.
Subject to state availability (see Appendix VI later in this Prospectus for
state availability of these benefits), your age at contract issue, and your
contract type, you may elect one of the enhanced death benefits described
above.
For contracts with non-natural owners, the available death benefits are based
on the annuitant's age.
Each enhanced death benefit is equal to its corresponding benefit base
described earlier in "Guaranteed minimum death benefit and Guaranteed minimum
income benefit base." Once you have made your enhanced death benefit election,
you may not change it.
If you purchase the "Greater of" enhanced death benefit with the Guaranteed
minimum income benefit, you will be eligible to reset your Roll-Up benefit
base. See "Roll-Up benefit base reset" earlier in this section.
Please see both "Insufficient account value" in "Determining your contract's
value" and "How withdrawals affect your Guaranteed minimum income benefit and
Guaranteed minimum death benefit" in "Accessing your money" 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 an example of how we calculate an
enhanced death benefit.
EARNINGS ENHANCEMENT BENEFIT
Subject to state and contract availability (please see Appendix VI later in
this Prospectus for state availability of these benefits), if you are
purchasing a contract, under which the Earnings enhancement benefit is
available, you may elect the Earnings enhancement benefit at the time you
purchase your contract. The Earnings enhancement benefit provides an additional
death benefit as described below. See the appropriate part of "Tax information"
later in this Prospectus for the potential tax consequences of electing to
purchase the Earnings enhancement benefit in an NQ, IRA or Rollover TSA
contract. Once you purchase the Earnings enhancement benefit, you may not
voluntarily terminate the feature. If you elect the Earnings enhancement
benefit at issue, and your Guaranteed minimum income benefit then converts to
the Guaranteed withdrawal benefit for life, the Earnings enhancement benefit
will continue in force after conversion, although it may be adversely affected
by withdrawals under the Guaranteed withdrawal benefit for life. See
"Guaranteed withdrawal benefit for life ("GWBL")" later in this Prospectus.
If you elect the Earnings enhancement benefit described below and change
ownership of the contract, generally 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 for more information.
The additional death benefit will be 40% of:
the greater of:
o the account value or
o any applicable death benefit
decreased by:
o total net contributions
For purposes of calculating your Earnings enhancement benefit, the following
applies: (i) "Net contributions" are the total contributions made (or if
applicable, the total amount that would otherwise have been paid as a death
benefit had the spouse beneficiary or younger spouse joint owner not continued
the contract plus any subsequent contributions) adjusted for each withdrawal
that exceeds your Earnings enhancement benefit earnings. "Net contributions"
are reduced by the amount of that excess. Earnings enhancement benefit earnings
are equal to (a) minus (b) where (a) is the greater of the account value and
the death benefit immediately prior to the withdrawal, and (b) is the net
contributions as adjusted by any prior withdrawals (credit amounts are not
included in "net contributions"); and (ii) "Death benefit" is equal to the
greater of the account value as of the date we receive satisfactory proof of
death or any applicable Guaranteed minimum death benefit as of the date of
death.
For purposes of calculating your Earnings enhancement benefit, if any
contributions are made in the one-year period prior to death of the owner (or
older joint owner, if applicable), the account value will not include any
Credits applied in the one-year period prior to death.
If the spouse beneficiary or younger spouse joint owner is between the ages of
71 and 75 when he or she becomes the successor owner and the Earnings
enhancement benefit had been elected at issue, the additional death benefit
will be 25% of:
the greater of:
o the account value or
o any applicable death benefit
decreased by:
o total net contributions
The value of the Earnings enhancement benefit is frozen on the first contract
date anniversary after the owner (or older joint owner, if applicable) turns
age 80, except that the benefit will be reduced for withdrawals on a pro rata
basis. Reduction on a pro rata basis means that we calculate the percentage of
the current account value that is being withdrawn and we reduce the benefit by
that percentage. For example, if the account value is $30,000 and you withdraw
$12,000, you have withdrawn 40% of your account value. If the benefit is
$40,000 before the withdrawal, it would be reduced by $16,000 ($40,000 X .40)
and the benefit after the withdrawal would be $24,000 ($40,000-$16,000).
For an example of how the Earnings enhancement benefit is calculated, please
see Appendix V.
For contracts continued under Spousal continuation upon the death of the spouse
(or older spouse, in the case of jointly owned contracts), the account value
will be increased by the value of the Earnings enhancement benefit as of the
date we receive due proof of death. Your spouse beneficiary or younger spouse
joint owner must be 75 or younger when he or she becomes the successor owner
for the Earnings enhancement benefit that had been elected at issue to continue
after your death. The benefit will then be based on the age of the surviving
40 Contract features and benefits
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spouse as of the date of the deceased spouse's death for the remainder of the
contract. If the surviving spouse is age 76 or older, the benefit will
terminate and the charge will no longer be in effect. The spouse may also take
the death benefit (increased by the Earnings enhancement benefit) in a lump
sum. See "Spousal continuation" in "Payment of death benefit" later in this
Prospectus for more information.
The Earnings enhancement benefit must be elected when the contract is first
issued; neither the owner nor the successor owner can add it subsequently. Ask
your financial professional or see Appendix VI later in this Prospectus to see
if this feature is available in your state.
GUARANTEED WITHDRAWAL BENEFIT FOR LIFE ("GWBL")
For an additional charge, the Guaranteed withdrawal benefit for life ("GWBL")
guarantees that you can take withdrawals up to a maximum amount per year (your
"Guaranteed annual withdrawal amount"). The opportunity to convert from the
Guaranteed minimum income benefit to the Guaranteed withdrawal benefit for life
is the contract date anniversary following age 80. You may elect to make this
conversion only during the 30 days after the contract anniversary following the
attainment of age 80.
--------------------------------------------------------------------------------
When an Owner (or, if applicable, the older Owner) elects to convert, the
"Conversion effective date" is the contract date anniversary immediately
preceding the election.
The "Conversion transaction date" is the date that the Owner affirmatively
elects to convert within the 30-day window. If the Owner makes no election to
convert, the Conversion transaction date is the 30th day after the contract
anniversary following age 80.
--------------------------------------------------------------------------------
A benefit base reset for Guaranteed minimum income benefit does not extend the
waiting period during which you can convert.
If you have neither exercised the Guaranteed minimum income benefit nor dropped
it from your contract as of the contract date anniversary following age 80
("last exercise date"), you will have up to 30 days after that contract date
anniversary to choose what you want to do with your Guaranteed minimum income
benefit. You will have three choices available to you:
o You may affirmatively convert the Guaranteed minimum income benefit to a
Guaranteed withdrawal benefit for life;
o You may exercise the Guaranteed minimum income benefit, and begin to receive
lifetime income under that benefit;
o You may elect to terminate the Guaranteed minimum income benefit without
converting to the Guaranteed withdrawal benefit for life.
If you take no action within 30 days after the contract date anniversary
following age 80, the Guaranteed minimum income benefit will convert
automatically to the Single Life Guaranteed withdrawal benefit for life. You
will receive a confirmation notice after the automatic conversion occurs.
If you exercise the Guaranteed minimum income benefit, it will function as
described earlier in this Prospectus under "Guaranteed minimum income benefit".
If you elect to terminate the Guaranteed minimum income benefit without
converting to the Guaranteed withdrawal benefit for life, your contract will
continue in force, without either benefit. If you take no action, or
affirmatively convert the Guaranteed minimum income benefit, your Guaranteed
minimum income benefit will be converted to the Guaranteed withdrawal benefit
for life, retroactive to the Conversion effective date. Please note that if you
exercise the Guaranteed minimum income benefit prior to the Conversion
effective date, you will not have the option to convert the Guaranteed minimum
income benefit to the Guaranteed withdrawal benefit for life.
The charge for the GWBL benefit will be deducted from your account value on
each contract date anniversary. Please see "Guaranteed withdrawal benefit for
life charge" later in this Prospectus for a description of the charge.
You should not convert the Guaranteed minimum income benefit to this benefit
(or permit this benefit to convert) if:
o You plan to take withdrawals in excess of your Guaranteed annual withdrawal
amount because those withdrawals may significantly reduce or eliminate the
value of the benefit (see "Effect of Excess withdrawals" below in this
section);
o You are not interested in taking withdrawals prior to the contract's maturity
date; or
o You are using the contract to fund a Rollover TSA or QP contract where
withdrawal restrictions will apply.
For traditional IRAs, TSA and QP contracts, you may take your lifetime required
minimum distributions ("RMDs") without losing the value of the GWBL benefit,
provided you comply with the conditions described under "Lifetime required
minimum distribution withdrawals" in "Accessing your money" later in this
Prospectus, including utilizing our Automatic RMD service. The Automatic RMD
service is not available under defined benefit QP contracts. If you do not
expect to comply with these conditions, this benefit may have limited
usefulness for you and you should consider whether it is appropriate. Please
consult your tax adviser.
ADDITIONAL OWNER AND ANNUITANT REQUIREMENTS
Converting the Guaranteed minimum income benefit to the Guaranteed withdrawal
benefit for life may alter the ownership of your contract. The options you may
choose depend on the original ownership of your contract. You may only choose
among the ownership options below if you affirmatively choose to convert the
Guaranteed minimum income benefit to the Guaranteed withdrawal benefit for
life. If your benefit is converted automatically, your contract will be
structured as a Single life contract. Your ability to add a Joint life is
limited by the age and timing requirements described below under "Guaranteed
annual withdrawal amount".
SINGLE OWNER. If the contract has a single owner, and the owner converts the
Guaranteed minimum income benefit to the Guaranteed withdrawal benefit for life
with the single life ("Single life") option, there will be no change to the
ownership of the contract. However, if
Contract features and benefits 41
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the owner converts the Guaranteed minimum income benefit to the Guaranteed
withdrawal benefit for life with the joint life ("Joint life") option, the
owner must add his or her spouse as the successor owner. We will use the age of
the younger spouse in determining the Joint life Applicable percentage. If the
contract is an NQ contract, the owner may grant the successor owner ownership
rights in the contract at the time of conversion.
JOINT OWNERS. If the contract has joint owners, and the Guaranteed minimum
income benefit converts to the Guaranteed withdrawal benefit for life with the
Single life option, there will be no change to the ownership of the contract,
unless the joint owners request that the younger joint owner be dropped from
the contract. If the contract has spousal joint owners, and they request a
Joint life benefit, we will use the younger spouse's age in determining the
Applicable percentage. If the contract has non-spousal joint owners, and the
joint owners request a Joint life benefit, the younger owner may be dropped
from the contract, and the remaining owner's spouse added as the successor
owner. We will use the age of the younger spouse in determining the Joint life
Applicable percentage.
NON-NATURAL OWNER. Contracts with non-natural owners that convert to the
Guaranteed withdrawal benefit for life will have different options available to
them, depending on whether they have an individual annuitant or joint
annuitants. If the contract has a non-natural owner and an individual
annuitant, and the owner converts to the Guaranteed withdrawal benefit for life
with the Single life option, there will be no change to the ownership of the
contract. If the owner converts to the Guaranteed withdrawal benefit for life
with the Joint life option under a contract with an individual annuitant, the
owner must add the annuitant's spouse as the joint annuitant. We will use the
age of the younger spouse in determining the Joint life Applicable percentage.
If the contract has a non-natural owner and joint annuitants, and the owner
converts to the Guaranteed withdrawal benefit for life with the Single life
option, there will be no change to the ownership of the contract, unless the
owner requests that the younger annuitant be dropped from the contract. If the
owner converts to the Guaranteed withdrawal benefit for life on a Joint life
basis, there will be no change to the ownership of your contract. We will use
the age of the younger spouse in determining the Applicable percentage on a
Joint life basis.
GWBL BENEFIT BASE
Upon conversion of the Guaranteed minimum income benefit to GWBL, your GWBL
benefit base is equal to either your account value or the applicable Guaranteed
minimum income benefit base, as described below under "Guaranteed annual
withdrawal amount". It will increase or decrease, as follows:
o Your GWBL benefit base may be increased on each contract date anniversary, as
described below under "Annual Ratchet".
o Your GWBL benefit base is not reduced by withdrawals except those withdrawals
that cause total withdrawals in a contract year to exceed your Guaranteed
annual withdrawal amount ("Excess withdrawal"). See "Effect of Excess
withdrawals" below in this section.
GUARANTEED ANNUAL WITHDRAWAL AMOUNT
The Guaranteed annual withdrawal amount may be withdrawn at any time during the
contract year that begins on the Conversion effective date, or any subsequent
contract year. You may elect one of our automated payment plans or you may take
partial withdrawals. The initial Guaranteed annual withdrawal amount is
calculated as of the Conversion effective date. All withdrawals reduce your
account value and Guaranteed minimum death benefit. Any withdrawals taken
during the 30 days after the Conversion effective date will be counted toward
the Guaranteed annual withdrawal amount, even if the withdrawal occurs before
the Conversion transaction date.
We will recalculate the Guaranteed annual withdrawal amount on each contract
date anniversary and as of the date of any Excess withdrawal, as described
below under "Effect of Excess withdrawals". The withdrawal amount is guaranteed
never to decrease as long as there are no Excess withdrawals.
Your Guaranteed annual withdrawals are not cumulative. If you withdraw less
than the Guaranteed annual withdrawal amount in any contract year, you may not
add the remainder to your Guaranteed annual withdrawal amount in any subsequent
year.
The withdrawal charge, if applicable, is waived for withdrawals up to the
Guaranteed annual withdrawal amount, but all withdrawals are counted toward
your free withdrawal amount. See "Withdrawal charge" in "Charges and expenses"
later in this Prospectus.
Your Guaranteed annual withdrawal amount is calculated based on whether the
benefit is based on a Single Life or Joint Life as described below:
SINGLE LIFE. If your Guaranteed minimum income benefit is converted to a
Guaranteed withdrawal benefit for life on a Single life basis, the Guaranteed
annual withdrawal amount will be equal to (1) either: (i) your account value on
the Conversion effective date or (ii) your Guaranteed minimum income benefit
base on the Conversion effective date, multiplied by (2) the relevant
Applicable percentage.
In calculating the relevant Applicable percentage, we consider your account
value and Guaranteed minimum income benefit base on the Conversion effective
date. Your initial GWBL benefit base and Applicable percentage will be
determined by whichever combination of benefit base and percentage set forth in
the table below results in a higher Guaranteed annual withdrawal amount.
--------------------------------------------------------------------------------
If you have the GMIB I - Asset Allocation or
GMDB II - Custom Selection
--------------------------------------------------------------------------------
B
A Applicable percentage of
Applicable percentage of Guaranteed minimum income
account value benefit base
--------------------------------------------------------------------------------
5.0% 4.0%
--------------------------------------------------------------------------------
For example, if on the Conversion effective date your GMIB I--Asset Allocation
or GMIB II--Custom Selection benefit base is $115,000, and your account value
is $100,000, the Guaranteed annual withdrawal amount would be $5,000. This is
because $115,000 (the Guaranteed minimum income benefit base) multiplied by
4.0% (the
42 Contract features and benefits
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percentage in Column B) equals only $4,600, while $100,000 (the account value)
multiplied by 5.0% (the percentage in Column A) equals $5,000. Under this
example, your initial GWBL benefit base would be $100,000, and your Applicable
percentage would be 5.0%.
On the other hand, if on the Conversion effective date your GMIB I--Asset
Allocation or GMIB II-- Custom Selection benefit base is $200,000, and your
account value is $100,000, the initial Guaranteed annual withdrawal amount
would be $8,000. This is because $100,000 (the account value) multiplied by
5.0% (the percentage in Column A) equals only $5,000, while $200,000 (the
Guaranteed minimum income benefit base) multiplied by 4.0% (the percentage in
Column B) equals $8,000. Under this example, your initial GWBL benefit base
would be $200,000, and your Applicable percentage would be 4.0%.
The initial GWBL benefit base can be increased by an Annual ratchet on each
subsequent contract date anniversary to equal the account value on that date if
it is greater than the GWBL benefit base on that date. If the GWBL benefit base
increases as the result of an Annual Ratchet, we reserve the right to increase
the charge at the time of the Annual Ratchet. See "Guaranteed withdrawal
benefit for life charge" in "Charges and expenses" later in this Prospectus.
If the initial GWBL benefit base and Applicable percentage are calculated using
your Guaranteed minimum income benefit base on the Conversion effective date
(Column B above), and the GWBL benefit base is increased by an Annual Ratchet,
then the Applicable percentage will increase from 4.0% to 5.0%.
However, if the initial GWBL benefit base and Applicable percentage are
calculated using your account value on the Conversion effective date (Column A
above), then an Annual Ratchet will not affect the Applicable percentage.
If the GWBL benefit base and/or the Applicable percentage increases as the
result of an Annual Ratchet, the Guaranteed annual withdrawal amount will also
increase.
If you take a withdrawal during the 30 days following the Conversion effective
date, and your Guaranteed minimum income benefit is converted to the Guaranteed
withdrawal benefit for life on a Single life basis, we will calculate whether
that withdrawal exceeds the Guaranteed annual withdrawal amount based on your
GWBL benefit base and Applicable percentage. If the withdrawal exceeds the
Guaranteed annual withdrawal amount on a Single life basis, the conversion will
still occur, but we will inform you that there is an Excess withdrawal.
JOINT LIFE/SUCCESSOR OWNER. If you hold an IRA or NQ contract, you may convert
your Guaranteed minimum income benefit to a Joint life Guaranteed withdrawal
benefit for life. You must affirmatively request that the benefit be converted
and your spouse must be at least age 70 on the conversion effective date. If
the younger spouse is younger than 70 as of the Conversion effective date, the
election of Joint life will not be available, even if the contract was issued
to spousal joint owners. The successor owner must be the owner's spouse. For NQ
contracts, the successor owner can be designated as a joint owner. See
"Additional owner and annuitant requirements" earlier in this section for more
information regarding the requirements for naming a successor owner. The
automatic conversion of the Guaranteed minimum income benefit to the Guaranteed
withdrawal benefit for life following age 80 will create a Single life contract
with the Guaranteed withdrawal benefit for life, even if you and your spouse
are joint owners of your NQ contract. You will be able to change your contract
to a Joint life contract at a later date, before the first withdrawal is taken
after the Conversion transaction date. If you do add a Joint life contract,
your spouse must submit any requested information.
For Joint life contracts, the percentages used in determining the Applicable
percentage and the Guaranteed annual withdrawal amount will depend on your age
or the age of your spouse, whoever is younger, as set forth in the following
tables.
--------------------------------------------------------------------------------
If you have the GMIB I - Asset Allocation or
GMIB II - Custom Selection
--------------------------------------------------------------------------------
B
A Applicable percent-
Applicable percent- age of Guaranteed
Younger age of account minimum income
spouse's age value benefit base
--------------------------------------------------------------------------------
85+ 4.5% 3.0%
80-84 4.0% 2.5%
75-79 3.5% 2.0%
70-74 3.0% 1.5%
--------------------------------------------------------------------------------
For example, if on the Conversion effective date your account value is
$100,000, your GMIB I--Asset Allocation or GMIB II--Custom Selection benefit
base is $150,000, and the younger spouse is age 72, the Guaranteed annual
withdrawal amount would be $3,000. This is because $100,000 (the account value)
multiplied by 3.0% (the percentage in Column A for the younger spouse's age
band) equals $3,000, while $150,000 (the Guaranteed minimum income benefit
base) multiplied by 1.5% (the percentage in Column B for the younger spouse's
age band) equals $2,250. Under this example, your initial GWBL benefit base
would be $100,000, and your Applicable percentage would be 3.0%.
The initial GWBL benefit base can be increased by an Annual Ratchet on each
subsequent contract date anniversary to equal the account value on that date if
it is greater than the GWBL benefit base on that date. If the GWBL benefit base
increases as the result of an Annual Ratchet, we reserve the right to increase
the charge at the time of the Annual Ratchet. See "Guaranteed withdrawal
benefit for life charge" in "Charges and expenses" later in this Prospectus.
If the initial GWBL benefit base and Applicable percentage are calculated using
your Guaranteed minimum income benefit base on the Conversion effective date
(Column B above), and the GWBL benefit base is increased by an Annual Ratchet,
then the Applicable percentage will increase to the percentage listed in Column
A. In addition, if the younger spouse has entered a new age band at the time of
a ratchet, the Applicable percentage will increase to the percentage listed in
Column A for that age band. Similarly, if the initial GWBL benefit base and
Applicable percentage are calculated using your account value on the Conversion
effective date (Column A above), and the GWBL benefit base is increased by an
Annual Ratchet in a year that
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the younger spouse has entered a new age band, the Applicable percentage will
increase to the percentage listed in Column A for that age band.
Using the example above, if the account value is $160,000 on the contract date
anniversary that the younger spouse is age 77, then the GWBL benefit base would
ratchet to $160,000, the applicable percentage would increase to 3.5%, and your
Guaranteed annual withdrawal amount would increase to $5,600.
You may elect Joint life at any time before you begin taking withdrawals. If
the Guaranteed minimum income benefit has already converted to the Guaranteed
withdrawal benefit for life on a Single life basis, the calculation of the
initial Applicable percentage and Guaranteed annual withdrawal amount will be
based on the younger spouse's age, as of the conversion effective date, not at
the time you elect Joint life, even if the younger spouse is in a different age
band at that time.
For conversion at age 80, if you take a withdrawal during the 30 days following
the Conversion effective date, you can still elect Joint life. We will
recalculate your Guaranteed annual withdrawal amount based on the younger
spouse's age as of the conversion effective date. If the withdrawal does not
exceed the recalculated Guaranteed annual withdrawal amount, we will set up the
Guaranteed withdrawal benefit for life on a Joint life basis. If the withdrawal
exceeds the recalculated Guaranteed annual withdrawal amount, we will offer you
the option of either: (i) setting up the benefit on a Joint life basis and
treating your withdrawal as an Excess withdrawal, or (ii) setting up the
benefit on a Single life basis.
Under a Joint life contract, lifetime withdrawals are guaranteed for the life
of both the owner and the successor owner.
For Joint life IRA or NQ contracts, a successor owner may only be named before
the first withdrawal is taken after the 30th day following the Conversion
effective date , if your spouse is at least 70 on the Conversion effective
date. (Withdrawals taken during the applicable period following the Conversion
effective date will not bar you from selecting a Joint life contract, but may
affect your ability to elect Joint life if the withdrawals are too large as
described earlier in this section.)
If you and the successor owner are no longer married, you may either: (i) drop
the original successor owner or (ii) replace the original successor owner with
your new spouse. This can only be done before the first withdrawal is taken
after the 30th day following the Conversion effective date. If the successor
owner is dropped before the first withdrawal is taken after the 30th day
following the Conversion effective date, the Applicable percentage will be
based on the owner's life on a Single life basis. After the first withdrawal is
taken after the 30th day following the Conversion effective date, the successor
owner can be dropped but cannot be replaced. If the successor owner is dropped
after the first withdrawal is taken after the 30th day following the Conversion
effective date, the Applicable percentage will continue to be based on the
Joint life calculation described earlier in this section. The Applicable
percentage will not be adjusted to a Single life percentage.
For Joint life contracts owned by a non-natural owner, a joint annuitant may be
named. This can only be done before the first withdrawal is taken after the
30th day following the Conversion effective date. The annuitant and joint
annuitant must be spouses. If the annuitant and joint annuitant are no longer
married, you may either: (i) drop the joint annuitant or (ii) replace the
original joint annuitant with the annuitant's new spouse. This can only be done
before the first withdrawal is taken after the 30th day following the
Conversion effective date. If the joint annuitant is dropped before the first
withdrawal is taken after the 30th day following the Conversion effective date,
the Applicable percentage will be based on the annuitant's life on a Single
life basis. After the first withdrawal is taken after the 30th day following
the Conversion effective date, the joint annuitant may be dropped but cannot be
replaced. If the joint annuitant is dropped after the 30th day following the
Conversion effective date, the Applicable percentage will continue to be based
on the Joint life calculation described earlier in this section.
Joint life QP and TSA contracts are not permitted. Loans are not permitted
under TSA contracts.
EFFECT OF EXCESS WITHDRAWALS
For any withdrawal that causes cumulative withdrawals in a contract year to
exceed your Guaranteed annual withdrawal amount, the entire amount of that
withdrawal and each subsequent withdrawal in that contract year are considered
Excess withdrawals.
An Excess withdrawal can cause a significant reduction in both your GWBL
benefit base and your Guaranteed annual withdrawal amount. If you make an
Excess withdrawal, we will recalculate your GWBL benefit base and the
Guaranteed annual withdrawal amount, as follows:
o The entire withdrawal amount will reduce the GWBL benefit base on a pro rata
basis.
o The Guaranteed annual withdrawal amount is recalculated to equal the
Applicable percentage multiplied by the reset GWBL benefit base.
You should not convert your Guaranteed minimum income benefit to a Guaranteed
withdrawal benefit for life if you plan to take withdrawals in excess of your
Guaranteed annual withdrawal amount as such withdrawals may significantly
reduce or eliminate the value of the GWBL benefit. If your account value is
less than your GWBL benefit base (due, for example, to negative market
performance), an Excess withdrawal, even one that is only slightly more than
your Guaranteed annual withdrawal amount, can significantly reduce your GWBL
benefit base and the Guaranteed annual withdrawal amount.
For example, assume your GWBL benefit base (based on the Guaranteed minimum
income benefit base) is $100,000 and your account value is $80,000 when you
decide to begin taking withdrawals at age 86, on a Single life basis. Your
Guaranteed annual withdrawal amount is equal to $4,000 (4.0% of $100,000). You
take an initial withdrawal of $8,000. You have withdrawn 10% of your Annuity
Account Value. As your benefit base is $100,000 before the withdrawal, it would
also be reduced by 10% or $10,000 (10% of $100,000) and your new benefit base
would be $90,000 ($100,000 minus $10,000). In addition, your Guaranteed annual
withdrawal amount is reduced to $3,600 (4.0% of $90,000), instead of the
original $4,000. See "How withdrawals affect your GWBL" later in this
Prospectus.
Withdrawal charges, if applicable, are applied to the amount of the withdrawal
that exceeds the greater of (i) the Guaranteed annual
44 Contract features and benefits
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withdrawal amount or (ii) the 10% free withdrawal amount. A withdrawal charge
would not be applied in the example above since the $8,000 withdrawal (equal to
10% of the contract's account value as of the beginning of the contract year)
falls within the 10% free withdrawal amount. Under the example above,
additional withdrawals during the same contract year could result in a further
reduction of the GWBL benefit base and the Guaranteed annual withdrawal amount,
as well as an application of withdrawal charges, if applicable. See "Withdrawal
charge" in "Charges and expenses" later in this Prospectus.
You should note that an Excess withdrawal that reduces your account value to
zero terminates the contract, including all benefits, without value. See
"Insufficient account value" in "Determining your contract's value" later in
this Prospectus.
In general, if your contract is a traditional IRA or TSA and you participate in
our Automatic RMD service, an automatic withdrawal under that program will not
cause an Excess withdrawal, even if it exceeds your Guaranteed annual
withdrawal amount. For more information, see "Lifetime required minimum
distribution withdrawals" in "Accessing your money" in this Prospectus.
ANNUAL RATCHET
Your GWBL benefit base is recalculated on each contract date anniversary to
equal the greater of: (i) the account value and (ii) the most recent GWBL
benefit base. If your account value is greater, we will ratchet up your GWBL
benefit base to equal your account value. For Joint life contracts, if your
GWBL benefit base ratchets on any contract date anniversary after you begin
taking withdrawals, your Applicable percentage may increase based on your
spouse's attained age at the time of the ratchet. Your Guaranteed annual
withdrawal amount will also be increased, if applicable, to equal your
Applicable percentage times your new GWBL benefit base. For Single life
contracts, if the initial GWBL benefit base and Applicable percentage are
calculated using your Guaranteed minimum income benefit base on the Conversion
effective date and the GWBL benefit base is increased by an Annual Ratchet,
then the Applicable percentage will increase from 4.0% to 5.0%.
If your GWBL benefit base ratchets, we may increase the charge for the benefit.
Once we increase the charge, it is increased for the life of the contract. We
will permit you to opt out of the ratchet if the charge increases. If you
choose to opt out, your charge will stay the same but your GWBL benefit base
will no longer ratchet. Upon request, we will permit you to accept a GWBL
benefit base ratchet with the charge increase on a subsequent contract date
anniversary. For a description of the charge increase, see "Guaranteed
withdrawal benefit for life benefit charge" later in this Prospectus.
SUBSEQUENT CONTRIBUTIONS
Subsequent contributions are not permitted after the Conversion transaction
date.
INVESTMENT OPTIONS
While the Guaranteed withdrawal benefit for life is in effect, investment
options will be restricted to Option A. If your account value is invested in
any other investment options as of the Conversion transaction date, you will be
required to reallocate your account value at the time you request that your
Guaranteed minimum income benefit be converted to the Guaranteed withdrawal
benefit for life.
If the Guaranteed withdrawal benefit for life is dropped, the available
investment options will revert to the investment options that were originally
available under the contract, pursuant to the Guaranteed minimum income benefit
that had been elected.
AUTOMATIC CONVERSION
At age 80, if you take no action during the 30 days after the Conversion
effective date, and permit your Guaranteed minimum income benefit to convert to
the Guaranteed withdrawal benefit for life automatically, we will reallocate
any portion of your account value invested in investment options other than
those available under Option A to the AXA Balanced Strategy Portfolio as part
of the automatic conversion, on the Conversion transaction date. You will be
able to reallocate your account value, subject to Option A limits at any time
after the Conversion transaction date, just as you would if you had
affirmatively elected to convert. Also, if you permit the automatic conversion
to occur, the conversion will initially create a Single life contract with the
Guaranteed withdrawal benefit for life, even if you and your spouse are joint
owners of your NQ contract, and you both meet the age requirements set forth
earlier in this section. You will be able to change your contract to a Joint
life contract at a later date, before the first withdrawal is taken after the
Conversion transaction date, if you meet the requirements described under
"Joint life" earlier in this section. In all other respects, the Guaranteed
withdrawal benefit for life will function in exactly the same way after an
automatic conversion as if you affirmatively elect to convert.
If the AXA Balanced Strategy Portfolio is not being offered as part of your
contract as of the Conversion transaction date, we will automatically
reallocate your account value to another designated variable investment option
with a similar investment objective, which we will disclose to you before
conversion. If no such variable investment option is being offered under your
contract at the time of conversion, we will reallocate your account value to
the guaranteed interest option.
DOLLAR COST AVERAGING
Any dollar cost averaging program in place on the date of conversion will be
terminated. Any money remaining in the account for special money market dollar
cost averaging on that date will be invested in the AXA Balanced Strategy
Portfolio. If the AXA Balanced Strategy Portfolio is not being offered as part
of your contract at the time of conversion, we will automatically reallocate
such monies as described immediately above.
You may elect a new Investment simplifier or general dollar cost averaging
program after conversion, but the special money market dollar cost averaging
program will not be available after conversion. See "Dollar cost averaging" in
"Allocating your contributions" earlier in this section.
Contract features and benefits 45
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EARNINGS ENHANCEMENT BENEFIT
If you elected the Earnings enhancement benefit, it will continue in force
after conversion, although it may be adversely affected by withdrawals under
the Guaranteed withdrawal benefit for life.
LOANS UNDER ROLLOVER TSA CONTRACTS
If there is a loan outstanding under a Rollover TSA contract on the Conversion
effective date or the Conversion transaction date, the Guaranteed minimum
income benefit cannot convert to the Guaranteed withdrawal benefit for life. If
the Guaranteed minimum income benefit does not convert to the Guaranteed
withdrawal benefit for life because there is an outstanding loan, the
Guaranteed minimum income benefit will terminate as of the Conversion effective
date. If you want to convert your Guaranteed minimum income benefit to the
Guaranteed withdrawal benefit for life, you must pay off the loan before the
Conversion effective date. See "Loans under Rollover TSA contracts" in
"Accessing your money" later in this Prospectus.
GUARANTEED MINIMUM DEATH BENEFIT
The Guaranteed minimum death benefit that is in effect before the conversion of
the Guaranteed minimum income benefit to the Guaranteed withdrawal benefit for
life will continue to be in effect after the conversion, but there will be no
further Annual Ratchets or Roll-Ups of the death benefit as of the contract
anniversary following age 80. See "How withdrawals affect your Guaranteed
minimum income benefit and Guaranteed minimum death benefit" in "Accessing your
money" and "Spousal continuation" in "Payment of death benefit" later in this
Prospectus.
If you convert your Guaranteed minimum income benefit to a Guaranteed
withdrawal benefit for life on a Joint life basis, the Guaranteed minimum death
benefit that would otherwise have been payable at the death of the owner (or
the older joint owner or the annuitant or older joint annuitant if the contract
is owned by a non-natural owner) will be payable at the death of the second to
die of the owner and successor owner (or both joint annuitants if the contract
is owned by a non-natural owner). Under certain circumstances, Roll-Ups and
Annual Ratchets may resume after the death of the older spouse, depending on
the age of the younger spouse. See "Annuity maturity date" in "Accessing your
money" later in this Prospectus.
ANNUITY MATURITY DATE. If your contract is annuitized at maturity, we will
offer an annuity payout option that guarantees you will receive payments that
are at least equal to what you would have received under the Guaranteed
withdrawal benefit for life. Any remaining Guaranteed minimum death benefit
value will be transferred to the annuity payout contract as your "minimum death
benefit." The minimum death benefit will be reduced pro rata by each payment.
See "Annuity maturity date" in "Accessing your money" later in this Prospectus.
EFFECT OF YOUR ACCOUNT VALUE FALLING TO ZERO
If your account value falls to zero due to an Excess withdrawal, we will
terminate your contract and you will receive no further payments or benefits.
If an Excess withdrawal results in a withdrawal that equals more than 90% of
your cash value or reduces your cash value to less than $500, we will treat
your request as a surrender of your contract even if your GWBL benefit base is
greater than zero.
However, if your account value falls to zero, either due to a withdrawal or
surrender that is not an Excess withdrawal or due to a deduction of charges,
please note the following:
o Your Accumulator(R) Plus(SM) contract terminates and you will receive a
supplementary life annuity contract setting forth your continuing benefits.
The owner of the Accumulator(R) Plus(SM) contract will be the owner and
annuitant. The successor owner, if applicable, will be the joint annuitant. If
the owner is non-natural, the annuitant and joint annuitant, if applicable,
will be the same as under your Accumulator(R) Plus(SM) contract.
o If you were taking withdrawals through the "Maximum payment plan," we will
continue the scheduled withdrawal payments on the same basis.
o If you were taking withdrawals through the "Customized payment plan" or in
unscheduled partial withdrawals, we will pay the balance of the Guaranteed
annual withdrawal amount for that contract year in a lump sum. Payment of the
Guaranteed annual withdrawal amount will begin on the next contract date
anniversary.
o Payments will continue at the same frequency for Single or Joint life
contracts, as applicable, or annually if automatic payments were not being
made.
o Any guaranteed minimum death benefit remaining under the original contract
will be carried over to the supplementary life annuity contract. The death
benefit will no longer grow and will be reduced on a dollar-for-dollar basis
as payments are made. If there is any remaining death benefit upon the death
of the owner and successor owner, if applicable, we will pay it to the
beneficiary.
o The charge for the Guaranteed withdrawal benefit for life and any enhanced
death benefit will no longer apply.
o If at the time of your death the Guaranteed annual withdrawal amount was being
paid to you as a supplementary life annuity contract, your beneficiary may not
elect the Beneficiary continuation option.
OTHER IMPORTANT CONSIDERATIONS
o This benefit is not appropriate if you do not intend to take withdrawals
prior to annuitization.
o Amounts withdrawn in excess of your Guaranteed annual withdrawal amount may be
subject to a withdrawal charge, if applicable, as described in "Charges and
expenses" later in this Prospectus. In addition, all withdrawals count toward
your free withdrawal amount for that contract year. Excess withdrawals can
significantly reduce or completely eliminate the value of the GWBL. See
"Effect of Excess withdrawals" above in this section and "How withdrawals
affect your GWBL" later in this Prospectus.
o Withdrawals are not considered annuity payments for tax purposes. See "Tax
information" later in this Prospectus.
46 Contract features and benefits
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o All withdrawals reduce your account value and Guaranteed minimum death
benefit. See "How withdrawals are taken from your account value" and "How
withdrawals affect your Guaranteed minimum income benefit and Guaranteed
minimum death benefit" in "Accessing your money" later in this Prospectus.
o If you withdraw less than the Guaranteed annual withdrawal amount in any
contract year, you may not add the remainder to your Guaranteed annual
withdrawal amount in any subsequent year.
o The GWBL benefit terminates if the contract is continued under the beneficiary
continuation option or under the Spousal continuation feature if the spouse is
not the successor owner.
o If you surrender your contract to receive its cash value and your cash value
is greater than your Guaranteed annual withdrawal amount, all benefits under
the contract will terminate, including the GWBL benefit.
o If you transfer ownership of the contract, you terminate the GWBL benefit. See
"Transfers of ownership, collateral assignments, loans and borrowing" in "More
information" later in this Prospectus for more information.
o Withdrawals are available under other annuity contracts we offer and the
contract without purchasing a withdrawal benefit.
o If you elect GWBL on a Joint life basis and subsequently get divorced, your
divorce will not automatically terminate the contract. For both Joint life and
Single life contracts, it is possible that the terms of your divorce decree
could significantly reduce or completely eliminate the value of this benefit.
Any withdrawal made for the purpose of creating another contract for your
ex-spouse will reduce the benefit base(s) as described in "How withdrawals
affect your GWBL" later in this Prospectus, even if pursuant to a divorce
decree.
o The Federal Defense of Marriage Act precludes same-sex married couples,
domestic partners, and civil union partners from being considered married
under federal law. Such individuals, therefore, are not entitled to the
favorable tax treatment accorded spouses under federal tax law. As a result,
mandatory distributions from the contract must be made after the death of the
first individual. Accordingly, a Joint life GWBL will have little or no value
to the surviving same-sex spouse or partner. You should consult with your tax
adviser for more information on this subject.
DROPPING THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE AFTER CONVERSION
You may drop the Guaranteed withdrawal benefit for life from your contract
after conversion from the Guaranteed minimum income benefit subject to the
following restrictions:
o You may not drop the Guaranteed withdrawal benefit for life if there are any
withdrawal charges in effect under your contract, including withdrawal charges
applicable to subsequent contributions. If there are no withdrawal charges in
effect under your contract on the Conversion effective date, you may drop the
Guaranteed withdrawal benefit for life at any time.
o The Guaranteed withdrawal benefit for life will be dropped from your contract
on the date we receive your election form at our processing office in good
order. If you drop the Guaranteed withdrawal benefit for life on a date other
than a contract date anniversary, we will deduct a pro rata portion of the
Guaranteed withdrawal benefit for life charge for that year, on that date.
o After the Guaranteed withdrawal benefit for life is dropped, the withdrawal
treatment for the Guaranteed minimum death benefit will continue on a pro rata
basis.
o If you drop the Guaranteed withdrawal benefit for life, the investment
limitations associated with that benefit will be lifted. You will be able to
invest in any of the investment options offered under the Guaranteed minimum
income benefit that you had originally elected. You may not, however, add the
Guaranteed minimum income benefit to your contract after the Guaranteed
withdrawal benefit for life has been dropped.
o If you drop the Guaranteed withdrawal benefit for life, you will be able to
take loans from Rollover TSA contracts (employer or plan approval required).
See "Loans under Rollover TSA contracts" in "Accessing your money" later in
this Prospectus.
o Generally, only contracts with the Guaranteed withdrawal benefit for life can
have successor owners. However, if your contract has the Guaranteed withdrawal
benefit for life with the Joint life option, the successor owner under that
contract will continue to be deemed a successor owner, even if you drop the
Guaranteed withdrawal benefit for life. The successor owner will continue to
have precedence over any designated beneficiary in the event of the owner's
death.
After your request has been processed, you will receive a letter confirming
that the Guaranteed withdrawal benefit for life has been dropped.
See "Investment options" earlier in this section for information regarding how
dropping the Guaranteed withdrawal benefit for life would affect your
investment options.
YOUR RIGHT TO CANCEL WITHIN A CERTAIN NUMBER OF DAYS
If for any reason you are not satisfied with your contract, you may return it
to us for a refund. To exercise this cancellation right you must mail the
contract, with a signed letter of instruction electing this right, to our
processing office within 10 days after you receive it. If state law requires,
this "free look" period may be longer. Other state variations may apply. Please
contact your financial professional and/or see Appendix VI to find out what
applies in your state.
Generally, your refund will equal your account value (less loan reserve account
under TSA contracts) under the contract on the day we receive notification to
cancel the contract and will reflect (i) any investment gain or loss in the
variable investment options (less the daily charges we deduct) and (ii) any
guaranteed interest in the guaranteed interest option. Some states require that
we refund the full amount of your contribution (not reflecting (i) or (ii)
above). For any IRA contracts returned to us within seven days after you
receive it, we are required to refund the full amount of your contribution.
Please note that you will forfeit the credit by exercising this right of
cancellation.
Contract features and benefits 47
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We may require that you wait six months before you may apply for a contract
with us again if:
o you cancel your contract during the free look period; or
o you change your mind before you receive your contract whether we have
received your contribution or not.
Please see "Tax information" later in this Prospectus for possible consequences
of cancelling your contract.
If you fully convert an existing traditional IRA contract to a Roth IRA
contract, you may cancel your Roth IRA contract and return to a traditional IRA
contract. Our processing office or your financial professional can provide you
with the cancellation instructions.
In addition to the cancellation right described above, you have the right to
surrender your contract, rather than cancel it. Please see "Surrendering your
contract to receive its cash value," later in this Prospectus. Surrendering
your contract may yield results different than canceling your contract,
including a greater potential for taxable income. In some cases, your cash
value upon surrender may be greater than your contributions to the contract.
Please see "Tax information," later in this Prospectus.
48 Contract features and benefits
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2. Determining your contract's value
--------------------------------------------------------------------------------
YOUR ACCOUNT VALUE AND CASH VALUE
Your "account value" is the total of the values you have in: (i) the variable
investment options; (ii) the guaranteed interest option; and (iii) the loan
reserve account (applies for Rollover TSA contracts only).
Your contract also has a "cash value." At any time before annuity payments
begin, your contract's cash value is equal to the account value less: (i) the
total amount or a pro rata portion of the annual administrative charge as well
as any optional benefit charges; (ii) any applicable withdrawal charge; and
(iii) the amount of any outstanding loan plus accrued interest (applicable to
Rollover TSA contracts only). 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) mortality and expense risks;
(ii) administrative 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 additional contributions plus the credit;
(ii) decreased to reflect a withdrawal (plus applicable withdrawal charges);
(iii) increased to reflect transfer into, or decreased to reflect transfer
out of a variable investment option; or
(iv) increased or decreased to reflect a transfer of your loan amount from
or to the loan reserve account under a Rollover TSA contract.
In addition, when we deduct the enhanced death benefit, Guaranteed minimum
income benefit, Guaranteed withdrawal benefit for life and/or Earnings
enhancement benefit charges, 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 is 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 withdrawals
out of the option, and charges we deduct.
INSUFFICIENT ACCOUNT VALUE
Your contract will terminate without value if your account value is
insufficient to pay any applicable charges when due. Your account value could
become insufficient due to withdrawals and/or poor market performance. Upon
such termination, you will lose all your rights under your contract and any
applicable guaranteed benefits, except as discussed below.
See Appendix VI later in this Prospectus for any state variations with regard
to terminating your contract.
GUARANTEED MINIMUM INCOME BENEFIT NO LAPSE GUARANTEE. In certain circumstances,
even if your account value falls to zero, your Guaranteed minimum income
benefit will still have value. Please see "Contract features and benefits"
earlier in this Prospectus for information on this feature.
GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. If your Guaranteed minimum income
benefit converts to the Guaranteed withdrawal benefit for life, and your
account value falls to zero due to an Excess withdrawal, we will terminate your
contract and you will receive no payment or supplementary life annuity
contract, even if your GWBL benefit base is greater than zero. If, however,
your account value falls to zero, either due to a withdrawal or surrender that
is not an Excess withdrawal or due to a deduction of charges, the benefit will
still have value. See "Contract features and benefits" earlier in this
Prospectus.
Determining your contract's value 49
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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 account value among the variable investment options,
subject to the following:
o You may not transfer any amount to the account for special money market
dollar cost averaging.
o Under Option A, a transfer into the guaranteed interest option (other than a
transfer pursuant to a dollar cost averaging program) will not be permitted if
such transfer would result in more than 25% of the account value being
allocated to the guaranteed interest option, based on the account value as of
the previous business day.
o Under Option B, you may make a transfer from one investment option to another
investment option within the same category provided the resulting allocation
to the receiving investment option does not exceed the investment option
maximum in place at the time of the transfer. You can make a transfer from an
investment option in one category to an investment option in another category
as long as the minimum and maximum rules for the receiving category are met
and the maximum rule for the receiving investment option is met. You may also
request a transfer that would reallocate your account value based on
percentages, provided those percentages are consistent with the category and
investment option limits in place at the time of the transfer. In calculating
the limits for any transfer, we use the account value percentages as of the
date prior to the transfer. Transfer requests do not change the allocation
instructions on file for any future contribution or rebalancing, although
transfer requests will be considered subject to the guided architecture rules
at the time of the request. In connection with any transfer, you should
consider providing new allocation instructions, which would be used in
connection with future rebalancing. A transfer must comply with transfer rules
described under "Allocating your contributions" earlier in the Prospectus.
In addition, we reserve the right to restrict transfers into and among variable
investment options, including limitations on the number, frequency or dollar
amount of transfers. Our current transfer restrictions are set forth in the
"Disruptive transfer activity" section below.
The maximum amount that may be transferred from the guaranteed interest option
to any investment option (other than amounts transferred pursuant to the dollar
cost averaging program) 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;
(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.
We will also tell you at least 45 days in advance of the day 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. If you are eligible,
a new dollar cost averaging program can be started in the next or subsequent
contract years.
You may request a transfer in writing or through Online Account Access. Under
Option A, you may also request a transfer by telephone using TOPS. You must
send in all written transfer requests directly to our processing office.
Transfer requests should specify:
(1) the contract number;
(2) the dollar amounts or percentages of your current account value to be
transferred; and
(3) the investment options to and from which you are transferring.
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.
50 Transferring your money among investment options
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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; and (3) the design of market timing procedures involves inherently
subjective judgments, which we seek to make in a fair and reasonable manner
consistent with the interests of all contract owners.
We offer investment options with underlying portfolios that are part of AXA
Premier VIP Trust and EQ Advisors Trust (together, the "trusts"). The 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 trust obtains from us contract owner trading activity. The 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. 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.
When a contract is identified in connection with potentially disruptive
transfer activity for the first time, a letter is sent to the contract owner
explaining that there is a policy against disruptive transfer activity and that
if such activity continues certain transfer privileges may be eliminated. If
and when the contract owner is identified a second time as engaged in
potentially disruptive transfer activity under the contract, we currently
prohibit the use of voice, fax and automated transaction services. We currently
apply such action for the remaining life of each affected contract. We or a
trust may change the definition of potentially disruptive transfer activity,
the monitoring procedures and thresholds, any notification procedures, and the
procedures to restrict this activity. Any new or revised policies and
procedures will apply to all contract owners uniformly. We do not permit
exceptions to our policies restricting disruptive transfer activity.
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 YOUR ACCOUNT VALUE
If you elect Option A for your investment options, is a one-time rebalancing
under that option. If you elect Option B, we require an automatic quarterly
rebalancing program. For more information about Options A and B and the
rebalancing program under Option B, see "Allocating your contributions" earlier
in this Prospectus.
Transferring your money among investment options 51
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4. Accessing your money
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WITHDRAWING YOUR ACCOUNT VALUE
You have several ways to withdraw your account value before annuity payments
begin. Withdrawals will be deducted pro rata from the applicable investment
options. The table below shows the methods available under each type of
contract. More information follows the table.
Please see "Insufficient account value" in "Determining your contract's value"
earlier in this Prospectus and "How withdrawals affect your Guaranteed minimum
income benefit and Guaranteed minimum death benefit" and "How withdrawals
affect your GWBL" below for more information on how withdrawals affect your
guaranteed benefits and could potentially cause your contract to terminate.
--------------------------------------------------------------------------------
Method of withdrawal
------------------------------------------------------------------
Automatic Lifetime
payment Pre-age required
plans 59-1/2 minimum
(GWBL System- substantially distribu-
Contract only) Partial atic equal tion
--------------------------------------------------------------------------------
NQ Yes Yes Yes No No
--------------------------------------------------------------------------------
Traditional
IRA Yes Yes Yes Yes Yes
--------------------------------------------------------------------------------
Roth IRA Yes Yes Yes Yes No
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Rollover
TSA* Yes Yes Yes No Yes
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QP** Yes Yes No No Yes
--------------------------------------------------------------------------------
* Employer or plan approval required for all transactions. Your ability to take
withdrawals or loans from, or surrender your TSA contract may be limited.
See "Tax Sheltered Annuity contracts (TSAs)" in "Tax information" later in
this Prospectus.
** All payments are made to the 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 GWBL only)
You may take automatic withdrawals 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. You may change the payment
frequency of your withdrawals at any time, and the change will become effective
on the next contract date anniversary.
You may elect either the Maximum payment plan or the Customized payment plan at
any time after your Guaranteed minimum income benefit converts to the
Guaranteed withdrawal benefit for life. You must wait at least 28 days from the
Conversion effective date 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.
MAXIMUM PAYMENT PLAN. Our Maximum payment plan provides for the withdrawal of
the Guaranteed annual withdrawal amount in scheduled payments. The amount of
the withdrawal will increase on contract date anniversaries with an Annual
Ratchet.
If you elect the Maximum payment plan and start monthly or quarterly payments
after the beginning of a contract year, the payments you take that year will be
less than your Guaranteed annual withdrawal amount.
If you take a partial withdrawal while the Maximum payment plan is in effect,
we will terminate the plan. You may enroll in the plan again at any time, but
the scheduled payments will not resume until the next contract date
anniversary.
CUSTOMIZED PAYMENT PLAN. Our Customized payment plan provides for the
withdrawal of a fixed amount not greater than the Guaranteed annual withdrawal
amount in scheduled payments. The amount of the withdrawal will not be
increased on contract date anniversaries with an Annual Ratchet. You must elect
to change the scheduled payment amount.
It is important to note that if you elect the Customized payment plan and start
monthly or quarterly withdrawals after the beginning of a contract year, you
could select scheduled payment amounts that would cause an Excess withdrawal.
If your selected scheduled payment would cause an Excess withdrawal, we will
notify you. As discussed earlier in this Prospectus, Excess withdrawals may
significantly reduce the value of the Guaranteed withdrawal benefit for life.
See "Effect of Excess withdrawals" in "Contract features and benefits" earlier
in this Prospectus.
If you take a partial withdrawal while the Customized payment plan is in
effect, we will terminate the plan. You may enroll in the plan again at any
time, but the scheduled payments will not resume until the next contract date
anniversary.
PARTIAL WITHDRAWALS
(All contracts)
You may take partial withdrawals from your account value at any time. (Rollover
TSA contracts may have restrictions and employer or plan approval is required.)
The minimum amount you may withdraw is $300.
Partial withdrawals will be subject to a withdrawal charge if they exceed the
10% free withdrawal amount (see "10% free withdrawal amount" in "Charges and
expenses" later in this Prospectus). Under Rollover TSA contracts, if a loan is
outstanding, you may only take partial withdrawals as long as the cash value
remaining after any withdrawal equals at least 10% of the outstanding loan plus
accrued interest.
Any request for a partial withdrawal will terminate your participation in
either the Maximum payment plan or Customized payment plan, if applicable.
52 Accessing your money
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SYSTEMATIC WITHDRAWALS
(All contracts except QP)
You may take systematic withdrawals of a particular dollar amount or a
particular percentage of your account value. (Rollover TSA contracts may have
restrictions and employer or plan approval is required).
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 account
value on the date of the withdrawal: 0.8% monthly, 2.4% quarterly and 10%
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 your percentages of your account
value as of the beginning of the contract year, as described in the preceding
paragraph, up to 100% of your account value. However, if you elect a systematic
withdrawal option in excess of these limits, and make a subsequent contribution
to your contract, the systematic withdrawal option will be terminated. You may
then elect a new systematic withdrawal option within the limits described in
the preceding paragraph.
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. If you do not select a date, we
will make the withdrawals on the same calendar day of the month as the contract
date. 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.
You may change the payment frequency, or the amount or percentage of your
systematic withdrawals, once each contract year. However, you may not change
the amount or percentage in any contract year in which you have already taken a
partial withdrawal. You can cancel the systematic withdrawal option at any
time. Systematic withdrawals are not available if the Guaranteed minimum income
benefit has converted to the Guaranteed withdrawal benefit for life.
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 previously taken in the same
contract year, the systematic withdrawal exceeds the 10% free withdrawal
amount.
If you are taking systematic withdrawals at the time the Guaranteed minimum
income benefit converts to the Guaranteed withdrawal benefit for life, the
conversion will not terminate your systematic withdrawals. Continuing your
systematic withdrawals after conversion may result in an Excess withdrawal. You
should consider terminating your systematic withdrawals and electing an
automatic payment plan at the time of the conversion to the Guaranteed
withdrawal benefit for life, and you will be advised to cancel this election in
the Systematic Withdrawal election form and in the Guaranteed minimum income
benefit exercise notice.
SUBSTANTIALLY EQUAL WITHDRAWALS
(All contracts except QP contracts)
We offer our "substantially equal withdrawals option" to allow you to receive
distributions from your account value without triggering the 10% additional
federal income tax penalty, which normally applies to distributions made before
age 59-1/2. See "Tax information" later in this Prospectus. We use one of the
IRS-approved methods for doing this; this is not the exclusive method of
meeting this exception. After consultation with your tax adviser, you may
decide to use another method which would require you to compute amounts
yourself and request partial withdrawals. In such a case, a withdrawal charge
may apply. Once you begin to take substantially equal withdrawals, you should
not (i) stop them; (ii) change the pattern of your withdrawals, for example, by
taking an additional partial withdrawal; or (iii) contribute any more to the
contract until after the later of age 59-1/2 or five full years after the first
withdrawal. If you alter the pattern of withdrawals, you may be liable for the
10% federal tax penalty that would have otherwise been due on prior withdrawals
made under this option and for any interest on the delayed payment of the
penalty.
In accordance with IRS guidance, an individual who has elected to receive
substantially equal withdrawals may make a one time change, without penalty,
from one of the IRS-approved methods of calculating fixed payments to another
IRS-approved method (similar to the required minimum distribution rules) of
calculating payments which vary each year.
You may elect to take substantially equal withdrawals at any time before 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. 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.
Substantially equal withdrawals that we calculate for you are not subject to a
withdrawal charge, except to the extent that, when added to a partial
withdrawal previously taken in the same contract year, the substantially equal
withdrawal exceeds the free withdrawal amount (see "10% free withdrawal amount"
in "Charges and expenses" later in this Prospectus).
The substantially equal withdrawal program is not available if the Guaranteed
minimum income benefit converts to the Guaranteed withdrawal benefit for life.
LIFETIME REQUIRED MINIMUM DISTRIBUTION WITHDRAWALS
(Traditional IRA and Rollover TSA and QP contracts only -- See "Tax
information" later in this Prospectus)
There are special rules governing required minimum distributions in 2009.
Please see "Suspension of required minimum distributions for
Accessing your money 53
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2009" later in this Prospectus. We will make distributions for calendar year
2009 unless we receive, before we make the payment, a written request to
suspend the 2009 distribution.
We offer our "automatic required minimum distribution (RMD) service" to help
you meet lifetime required minimum distributions under federal income tax
rules. This is not the exclusive way for you to meet these rules. After
consultation with your tax adviser, you may decide to compute required minimum
distributions 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 elected certain additional benefits, such as the
Guaranteed minimum death benefit or Guaranteed minimum income benefit amounts
withdrawn from the contract to meet RMDs will reduce the benefit base and may
limit the utility of the benefit. Also, the actuarial present value of
additional contract benefits must be added to the account value in calculating
required minimum distribution withdrawals from annuity contracts funding
qualified plans, TSAs and IRAs, which could increase the amount required to be
withdrawn. Please refer to "Tax information" later in this Prospectus.
This service is not available under defined benefit QP contracts.
You may elect this service in the year in which you reach age 70-1/2 or in any
later year. The minimum amount we will pay out is $250. Currently, minimum
distribution withdrawal payments will be made annually. See "Required minimum
distributions" in "Tax information" later in this Prospectus for your specific
type of retirement arrangement.
This service does not generate automatic required minimum distribution payments
during the first contract year. Therefore, if you are making a rollover or
transfer contribution to the contract after age 70-1/2, you must take any
required minimum distributions before the rollover or transfer. If you do not,
any withdrawals that you take during the first contract year to satisfy your
required minimum distributions may be subject to withdrawal charges, if they
exceed the free withdrawal amount.
--------------------------------------------------------------------------------
For traditional IRA and Rollover TSA 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 minimum distribution withdrawals if you
are enrolled in our automatic RMD service except if, when added to a partial
withdrawal previously taken in the same contract year, the minimum distribution
withdrawal exceeds the 10% free withdrawal amount.
Under Rollover TSA contracts, you may not elect our automatic RMD service if a
loan is outstanding.
FOR CONTRACTS WITH GWBL. Generally, if you elect our Automatic RMD service,
any lifetime required minimum distribution payment we make to you under our
Automatic RMD service will not be treated as an Excess withdrawal.
If you elect either the Maximum payment plan or the Customized payment plan AND
our Automatic RMD service, we will make an extra payment, if necessary, on
December 1st that will equal your lifetime required minimum distribution less
all payments made through November 30th and any scheduled December payment. The
combined automatic plan payments and lifetime required minimum distribution
payment will not be treated as Excess withdrawals, if applicable. However, if
you take any partial withdrawals in addition to your lifetime required minimum
distribution and automatic payment plan payments, your applicable automatic
payment plan will be terminated. The partial withdrawal may cause an Excess
withdrawal and may be subject to a withdrawal charge. You may enroll in the
plan again at any time, but the scheduled payments will not resume until the
next contract date anniversary. Further, your GWBL benefit base and Guaranteed
annual withdrawal amount may be reduced. See "Effect of Excess withdrawals" in
"Contract features and benefits" earlier in this Prospectus.
If you elect our Automatic RMD service and elect to take your Guaranteed annual
withdrawal amount in partial withdrawals without electing one of our available
automatic payment plans, we will make a payment, if necessary, on December 1st
that will equal your required minimum distribution less all withdrawals made
through November 30th. If prior to December 1st you make a partial withdrawal
that exceeds your Guaranteed annual withdrawal amount, but not your RMD amount,
that partial withdrawal will be treated as an Excess withdrawal, as well as any
subsequent partial withdrawals made during the same contract year. However, if
by December 1st your withdrawals have not exceeded your RMD amount, the RMD
payment we make to you will not be treated as an Excess withdrawal.
If you are enrolled in our Automatic RMD service and are taking systematic
withdrawals at the time the Guaranteed minimum income benefit is converted to
the Guaranteed withdrawal benefit for life, we will make a payment, if
necessary, on December 1st that will equal your required minimum distribution
less all withdrawals made through November 30th. If your systematic withdrawal
payment is a fixed dollar amount, rather than a percentage of your account
value, the December 1st RMD payment will factor into any December systematic
withdrawal payment. The December 1st RMD payment will not be treated as an
Excess withdrawal, but any subsequent systematic withdrawals in the same
contract year may be treated as Excess withdrawals. If by December 1st your
systematic withdrawals have equaled or exceeded your RMD amount, any withdrawal
that exceeds the Guaranteed annual withdrawal amount will be treated as an
Excess withdrawal.
FOR CONTRACTS WITH THE GUARANTEED MINIMUM INCOME BENEFIT. The no lapse
guarantee will not be terminated if a required minimum distribution payment
using our automatic RMD service causes your cumulative withdrawals in the
contract year to exceed 4% of the Roll-Up benefit base (as of the beginning of
the contract year or in the first contract year, all contributions received
within the first 90 days).
Owners of tax-qualified contracts (IRA, TSA and QP) generally should not reset
the Roll-Up benefit base if lifetime required minimum distributions must begin
before the end of the new exercise waiting period. See "Roll-Up benefit base
reset" in "Contract features and benefits" earlier in this Prospectus.
54 Accessing your money
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HOW WITHDRAWALS ARE TAKEN FROM YOUR ACCOUNT VALUE
Unless you specify otherwise, we will subtract your withdrawals on a pro rata
basis from your account value in the variable investment options and the
guaranteed interest option. If there is insufficient value or no value in the
in the variable investment options and the guaranteed interest option, any
additional amount of the withdrawal required or the total amount of the
withdrawal will be withdrawn from the account for special money market dollar
cost averaging.
HOW WITHDRAWALS AFFECT YOUR GUARANTEED MINIMUM INCOME BENEFIT AND GUARANTEED
MINIMUM DEATH BENEFIT
Withdrawals (including RMDs) will reduce your benefits on either a pro rata or
dollar-for-dollar basis. Unless otherwise stated, the withdrawal deductions
will be on a pro rata basis. Reduction on a pro rata basis means that we
calculate the percentage of your current account value that is being withdrawn
and we reduce your current benefit by the same percentage. For example, if your
account value is $30,000 and you withdraw $12,000, you have withdrawn 40% of
your account value. If your benefit was $40,000 before the withdrawal, it would
be reduced by $16,000 ($40,000 X .40) and your new benefit after the withdrawal
would be $24,000 ($40,000-$16,000).
For purposes of calculating the adjustment to your guaranteed benefits, 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 account value. For more information on the
calculation of the charge, see "Withdrawal charge" later in the Prospectus.
If the Guaranteed minimum income benefit is elected at issue, during the first
five contract years, with respect to the GMIB I - Asset Allocation the "Greater
of" GMDB I enhanced death benefit, the GMIB II - Custom Selection and the
"Greater of" GMDB II enhanced death benefit, withdrawals (including any
applicable withdrawal charges) will reduce each of the benefits' 4% Roll-Up to
age 80 benefit base on a pro-rata basis. If the Guaranteed minimum income
benefit is added after issue, the applicable five year period begins as of the
GMIB effective date. Beginning on the first day of the 6th contract year, with
respect to the GMIB I - Asset Allocation the "Greater of" GMDB I enhanced death
benefit, the GMIB II - Custom Selection and the "Greater of" GMDB II enhanced
death benefit, withdrawals (including any applicable withdrawal charges) will
reduce each of the benefits' 4% Roll-Up to age 80 benefit base on a
dollar-for-dollar basis, as long as the sum of withdrawals in a contract year
is 4% or less of the 4% Roll-Up benefit base on the contract issue date or the
most recent contract date anniversary, if later. Once a withdrawal is taken
that causes the sum of withdrawals in a contract year to exceed 4% of the
benefit base on the most recent anniversary, that entire withdrawal, (and
beginning in the first contract year, this will include RMD withdrawals), and
any subsequent withdrawals in that same contract year will reduce the benefit
base on a pro rata basis.
When an RMD withdrawal using our RMD program occurs, the waiting period for
dollar-for-dollar withdrawals will not apply and the entire withdrawal amount
will reduce the rollup benefit base on a dollar-for-dollar basis.. Reduction on
a dollar-for-dollar basis means that your 4% Roll-Up to age 80 benefit base
will be reduced by the dollar amount of the withdrawal for each Guaranteed
benefit. The Annual Ratchet to age 80 benefit base will always be reduced on a
pro rata basis.
If dollar for dollar withdrawals were to be allowed in the first contract year,
for both of the Guaranteed minimum income benefits and Greater of enhanced
death benefits, the dollar for dollar withdrawal amount for the first contract
year will be determined using all contributions received in the first 90 days
after contract issue. For QP contracts, after the first contract year,
additional contributions made during the contract year do not affect the amount
of the withdrawals that can be taken on a dollar-for-dollar basis in that
contract year even if the benefit is added after issue.
If you convert from a QP contract to an IRA, your waiting period for the
dollar-for-dollar withdrawal under the IRA contract will include any time that
you were a participant under the QP contract.
If your Guaranteed minimum income benefit is converted to the Guaranteed
withdrawal benefit for life, any subsequent withdrawals from your contract will
reduce your Guaranteed minimum death benefit base on a pro rata basis,
regardless of the type of Greater of enhanced death benefit you had elected. If
you drop the Guaranteed minimum income benefit at age 80 without converting it
to the Guaranteed withdrawal benefit for life, your death benefit will retain
its original withdrawal treatment. See "Dropping the Guaranteed minimum income
benefit after issue" described earlier under "Contract features and benefits."
HOW WITHDRAWALS AFFECT YOUR GWBL
Your GWBL benefit base is not reduced by withdrawals until a withdrawal causes
cumulative withdrawals in a contract year to exceed the Guaranteed annual
withdrawal amount. Withdrawals that exceed the Guaranteed annual withdrawal
amount, however, can significantly reduce your GWBL benefit base and Guaranteed
annual withdrawal amount. For more information, see "Effect of Excess
withdrawals" and "Other important considerations" under "Guaranteed withdrawal
benefit for life ("GWBL")" in "Contract features and benefits" earlier in this
Prospectus.
Please consider, however, that the Guaranteed withdrawal benefit for life is
not beneficial to the Owner unless the Owner intends to take withdrawals.
For purposes of calculating your GWBL benefit base, the amount of the Excess
withdrawal will include the withdrawal amount paid to you and the amount of the
withdrawal charge deducted from your account value. For more information on
calculation of the charge, see "Withdrawal charge" later in this Prospectus.
WITHDRAWALS TREATED AS SURRENDERS
If you withdraw more than 90% of a contract's current cash value, we will treat
it as a request to surrender the contract for its cash value. In addition, we
have the right to pay the cash value and terminate the contract if no
contributions are made during the last three completed
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contract years, and the account value is less than $500, or if you make a
withdrawal that would result in a cash value of less than $500. The rules in
the preceding sentence do not apply if the Guaranteed minimum income benefit no
lapse guarantee is in effect on your contract. See "Surrendering your contract
to receive its cash value" below. For the tax consequences of withdrawals, see
"Tax information" later in this Prospectus.
SPECIAL RULES FOR THE GUARANTEED WITHDRAWAL BENEFIT FOR LIFE. We will not
treat a withdrawal request that results in a withdrawal in excess of 90% of the
contract's cash value as a request to surrender the contract unless it is an
Excess withdrawal. In addition, we will not terminate your contract if either
your account value or cash value falls below $500, unless it is due to an
Excess withdrawal. In other words, if you take an Excess withdrawal that equals
more than 90% of your cash value or reduces your cash value to less than $500,
we will treat your request as a surrender of your contract even if your GWBL
benefit base is greater than zero. Please also see "Insufficient account value"
in "Determining your contract's value" earlier in this Prospectus. Please also
see "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and
benefits," earlier in this Prospectus, for more information on how withdrawals
affect your guaranteed benefits and could potentially cause your contract to
terminate.
LOANS UNDER ROLLOVER TSA CONTRACTS
Loans under a Rollover TSA contract are not permitted without employer or plan
approval. We will not permit you to take a loan or have a loan outstanding in
the following situations: (i) while you are enrolled in our "automatic required
minimum distribution (RMD) service"; or (ii) if the GWBL option is in effect.
If you elect the Guaranteed minimum income benefit and there is a loan
outstanding under a Rollover TSA contract on the Conversion effective date or
the Conversion transaction date, the Guaranteed minimum income benefit cannot
convert to the Guaranteed withdrawal benefit for life. If you want to convert
your Guaranteed minimum income benefit to the Guaranteed withdrawal benefit for
life, you must pay off the loan before the Conversion effective date. See
"Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and
benefits" earlier in this Prospectus.
Loans are subject to federal income tax limits and are also subject to the
limits of the plan. The loan rules under ERISA may apply to plans not sponsored
by a governmental employer. Federal income tax rules apply to all plans, even
if the plan is not subject to ERISA.
A loan will not be treated as a taxable distribution unless:
o It exceeds limits of federal income tax rules;
o Interest and principal are not paid when due; or
o In some instances, service with the employer terminates.
Taking a loan in excess of the Internal Revenue Code limits may result in
adverse tax consequences.
Before we make a loan, you must properly complete and sign a loan request form.
Loan processing may not be completed until we receive all information and
approvals required to process the loan at our processing office.
We will permit you to have only one loan outstanding at a time. The minimum
loan amount is $1,000. The maximum amount is $50,000 or, if less, 50% of your
account value, subject to any limits under the federal income tax rules. The
term of the loan is five years. However, if you use the loan to acquire your
primary residence, the term is 10 years. The term may not extend beyond the
earliest of:
(1) the date annuity payments begin,
(2) the date the contract terminates, and
(3) the date a death benefit is paid (the outstanding loan, including
any accrued but unpaid loan interests, will be deducted from the death
benefit amounts).
A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received. Interest will accrue daily on your outstanding
loan at a rate we set. The loan interest rate will be equal to the Moody's
Corporate Bond Yield Averages for Baa bonds for the calendar month ending two
months before the first day of the calendar quarter in which the rate is
determined. See Appendix VI later in this Prospectus to see if a different
interest rate applies in your state. Please see Appendix VI later in this
Prospectus for any state rules that may affect loans from a TSA contract. Also,
see "Tax information" later in this Prospectus for general rules applicable to
loans.
Tax consequences of failure to repay a loan when due are substantial, and may
result in severe restrictions on your ability to borrow amounts under any plans
of your employer in the future.
LOAN RESERVE ACCOUNT. On the date your loan is processed, we will transfer the
amount of your loan to the "loan reserve account". Unless you specify
otherwise, we will subtract your loan on a pro rata basis from your value in
the variable investment options and the guaranteed interest option. If those
amounts are insufficient, we will deduct all or a portion of the loan from the
account for special money market dollar cost averaging.
For the period of time your loan is outstanding, the loan reserve account rate
we will credit will equal the loan interest rate minus a maximum rate of 2%. On
each contract date anniversary after the date the loan is processed, we will
transfer the amount of interest earned in the loan reserve account to the
variable investment options on a pro rata basis. When you make a loan
repayment, unless you specify otherwise, we will transfer the dollar amount of
the loan repaid from the loan reserve account to the investment options
according to the allocation percentages we have on our records. Loan repayments
are not considered contributions and therefore are not eligible for additional
credits.
SURRENDERING YOUR CONTRACT TO RECEIVE ITS CASH VALUE
You may surrender your contract to receive its cash value at any time while an
owner is living (or for contracts with non-natural owners while the annuitant
is living) and before you begin to receive annuity payments. (Rollover TSA
contracts may have restrictions and employer or plan approval is required). For
a surrender to be effective, we must
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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.
All benefits under the contract will terminate as of the date we receive the
required information, including the Guaranteed withdrawal benefit for life (if
applicable), if your cash value is greater than your Guaranteed annual
withdrawal amount remaining that year. If your cash value is not greater than
your Guaranteed annual withdrawal amount remaining that year, then you will
receive a supplementary life annuity contract. For more information, please see
"Effect of your account value falling to zero" in "Contract features and
benefits" earlier in this Prospectus. Also, if the Guaranteed minimum income
benefit no lapse guarantee is in effect, the benefit will terminate without
value if your cash value plus any other withdrawals taken in the contract year
exceed 4% of the Roll-Up benefit base (as of the beginning of the contract
year). For more information, please see "Insufficient account value" in
"Determining your contract's value" and "Guaranteed withdrawal benefit for life
("GWBL")" 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 date of the transaction to which
the request relates. These transactions may include applying proceeds to a
variable annuity, payment of a death benefit, payment of any amount you
withdraw (less any withdrawal charge) and, upon surrender, payment of the cash
value. We may postpone such payments or applying proceeds for any period during
which:
(1) the New York Stock Exchange is closed or restricts trading,
(2) the SEC determines that an emergency exists as a result of which
sales of securities or determination of the fair value of a variable
investment option's assets is not reasonably practicable, or
(3) the SEC, by order, permits us to defer payment to protect people
remaining in the variable investment options.
We can defer payment of any portion of your value in the guaranteed interest
option (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 and wire transfer service at your expense.
YOUR ANNUITY PAYOUT OPTIONS
Deferred annuity contracts such as Accumulator(R) Plus(SM) provide for
conversion to payout status at or before the contract's "maturity date." This
is called annuitization. When your contract is annuitized, your Accumulator(R)
Plus(SM) contract and all its benefits will terminate and you will receive a
supplemental annuity payout contract ("payout option") that provides periodic
payments for life or for a specified period of time. In general, the periodic
payment amount is determined by the account value or cash value of your
Accumulator(R) Plus(SM) contract at the time of annuitization and the annuity
purchase factor to which that value is applied, as described below.
Alternatively, if you have a Guaranteed minimum income benefit, you may
exercise your benefit in accordance with its terms. We have the right to
require you to provide any information we deem necessary to provide an annuity
payout option. If an annuity payout is later found to be based on incorrect
information, it will be adjusted on the basis of the correct information.
Your Accumulator(R) Plus(SM) contract guarantees that upon annuitization, your
annuity account value will be applied to a guaranteed annuity purchase factor
for a life annuity payout option. We reserve the right, with advance notice to
you, to change your annuity purchase factor 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 addition,
you may apply your account value or cash value, whichever is applicable, to any
other annuity payout option that we may offer at the time of annuitization. We
currently offer you several choices of annuity payout options. Some enable you
to receive fixed annuity payments which can be either level or increasing, and
others enable you to receive variable annuity payments. Please see Appendix VI
later in this Prospectus for variations that may apply to your state.
You can choose from among the payout annuity options listed below. Restrictions
may apply, depending on the type of contract you own or the owner's and
annuitant's ages at contract issue. In addition, if you are exercising your
Guaranteed minimum income benefit, your choice of payout options are those that
are available under the Guaranteed minimum income benefit (see "Guaranteed
minimum income benefit" in "Contract features and benefits" earlier in this
Prospectus). If the Guaranteed withdrawal benefit for life is in effect and you
choose to annuitize your contract before the maturity date, the Guaranteed
withdrawal benefit for life will terminate without value even if your GWBL
benefit base is greater than zero. Payments you receive under the payout
annuity option you select may be less than you would have received under GWBL.
See "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract features and
benefits" earlier in this Prospectus for further information.
--------------------------------------------------------------------------------
Fixed annuity payout options Life annuity
Life annuity with period
certain
Life annuity with refund
certain
Period certain annuity
--------------------------------------------------------------------------------
Variable Immediate Annuity Life annuity
payout options Life annuity with period
certain
--------------------------------------------------------------------------------
Income Manager(R) payout options Life annuity with period
(available for owners and annu- certain
itants age 83 or less at contract Period certain annuity
issue)
--------------------------------------------------------------------------------
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o 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.
o 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 contracts 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.
o Life annuity with refund certain: An annuity that guarantees payments for the
rest of the annuitant's life. If the annuitant dies before the amount applied
to purchase the annuity option has been recovered, payments to the beneficiary
will continue until that amount has been recovered. This payout option is
available only as a fixed annuity.
o Period certain annuity: An annuity that guarantees payments for a specific
period of time, usually 5, 10, 15, or 20 years. This guaranteed period may not
exceed the annuitant's life expectancy. This option does not guarantee
payments for the rest of the annuitant's life. It does not permit any
repayment of the unpaid principal, so you cannot elect to receive part of the
payments as a single sum payment with the rest paid in monthly annuity
payments. 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.
FIXED ANNUITY PAYOUT OPTIONS
With fixed annuities, 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.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTIONS
Variable Immediate Annuities are described in a separate prospectus that is
available from your financial professional. Before you select a Variable
Immediate Annuity payout option, you should read the prospectus which contains
important information that you should know.
Variable Immediate Annuities may be funded through your choice of available
variable investment options investing in Portfolios of AXA Premier VIP Trust
and EQ Advisors Trust. The contract also offers a fixed income annuity payout
option that can be elected in combination with the variable annuity payout
option. The amount of each variable income annuity payment will fluctuate,
depending upon the performance of the variable investment options, and whether
the actual rate of investment return is higher or lower than an assumed base
rate.
INCOME MANAGER(R) PAYOUT OPTIONS
The Income Manager(R) payout annuity contracts differ from the other payout
annuity contracts. The other payout annuity contracts may provide higher or
lower income levels, but do not have all the features of the Income Manager(R)
payout annuity contract. You may request an illustration of the Income
Manager(R) payout annuity contract from your financial professional. Income
Manager(R) payout options are described in a separate prospectus that is
available from your financial professional. Before you select an Income
Manager(R) payout option, you should read the prospectus which contains
important information that you should know.
Both NQ and IRA Income Manager(R) payout options provide guaranteed level
payments. The Income Manager(R) (life annuity with period certain) also
provides guaranteed increasing payments (NQ contracts only). You may not elect
an Income Manager(R) payout option without life contingencies unless withdrawal
charges are no longer in effect under your Accumulator(R) Plus(SM).
For QP and Rollover TSA contracts, if you want to elect an Income Manager(R)
payout option, we will first roll over amounts in such contract to a Rollover
IRA contract with the plan participant as owner. You must be eligible for a
distribution under the QP or Rollover TSA contract.
You may choose to apply your account value of your Accumulator(R) Plus(SM)
contract to an Income Manager(R) payout annuity. In this case, we will consider
any amounts applied as a withdrawal from your Accumulator(R) Plus(SM). For the
tax consequences of withdrawals, see "Tax information" later in this
Prospectus.
The Income Manager(R) payout options are not available in all states.
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.
For the fixed annuity payout options and Variable Immediate Annuity payout
options, no withdrawal charge is imposed if you select a life annuity, life
annuity with period certain or life annuity with refund certain.
The withdrawal charge applicable under your Accumulator(R) Plus(SM) contract is
imposed if you select a non-life contingent period certain payout annuity. If
the period certain is more than 5 years, then the withdrawal charge deducted
will not exceed 5% of the account value.
For the Income Manager(R) life contingent payout options, no withdrawal charge
is imposed under the Accumulator(R) Plus(SM). If the withdrawal charge that
otherwise would have been applied to your account value under your
Accumulator(R) Plus(SM) is greater than 2% of the contributions that remain in
your contract at the time you purchase your payout option, the withdrawal
charges under the Income Manager(R) will apply. The year in which your account
value is applied to the payout option will be "contract year 1."
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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 from the Accumulator(R) Plus(SM)
contract. Generally, the date annuity payments begin may not be earlier than
five years (in a limited number of jurisdictions this requirement may be more
or less than 5 years) from the contract date. Please see Appendix VI later in
this Prospectus for information on state variations. Except with respect to the
Income Manager(R) annuity payout options, where payments are made on the 15th
day of each month, you can change the date your annuity payments are to begin
anytime before that date as long as you do not choose a date later than the
28th day of any month. Also, that date may not be later than the annuity
maturity date described below.
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 VI 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 duration of a non-life contingent
annuity or a longer certain period of a life contingent annuity. Once elected,
the frequency with which you receive payments cannot be changed.
If, at the time you elect a payout option, the amount to be applied is less
than $2,000 or the initial payment under the form elected is less than $20
monthly, we reserve the right to pay the account value in a single sum rather
than as payments under the payout option chosen.
If you select an annuity payout option and payments have begun, no change can
be made other than: (i) transfers (if permitted in the future) among the
variable investment options if a Variable Immediate Annuity payout option is
selected; and (ii) withdrawals or contract surrender if an Income Manager(R)
annuity payout option is chosen.
ANNUITY MATURITY DATE
Your contract has a maturity date by which you must either take a lump sum
payment or select an annuity payout option. The maturity date is based on the
age of the original annuitant at contract issue and cannot be changed other
than in conformance with applicable law even if you name a new annuitant. For
contracts with joint annuitants, the maturity age is based on the older
annuitant. The maturity date is generally the contract date anniversary that
follows the annuitant's 95th birthday. We will send a notice with the contract
statement one year prior to the maturity date. If you do not respond to the
notice within the 30 days following the maturity date, your contract will be
annuitized automatically.
If the Guaranteed withdrawal benefit for life is in effect under your contract
and your contract is annuitized at maturity, we will offer an annuity payout
option that guarantees you will receive payments for life that are at least
equal to the Guaranteed annual withdrawal amount that you would have received
under the Guaranteed withdrawal benefit for life. At annuitization, you will no
longer be able to take withdrawals in addition to the payments under this
annuity payout option.
You may be eligible to elect an alternate annuity payout option. If you are
eligible and elect this option, beginning as of the maturity date and for each
subsequent year, the annuity payout will be the higher of two amounts that are
calculated as of each contract date anniversary. The annuity payout will be the
higher of: (1) the Guaranteed annual withdrawal amount and (2) the amount that
the contract owner would have received if the annuity account value had been
applied to a life annuity without a period certain, using either (a) the
guaranteed annuity rates specified in your contract, or (b) the applicable
current individual annuity rates as of the contract date anniversary, applying
the rate that provides a greater benefit to the payee.
The resulting periodic payments are distributed while the owner (and if
applicable, while any Joint Owner or Successor Owner) is living. Each
Guaranteed withdrawal benefit for life Maturity date annuity payment will
reduce the minimum death benefit pro rata. When the Guaranteed withdrawal
benefit for life Maturity date annuity payments begin, you will not be
permitted to make any additional withdrawals. You may, however, surrender the
contract at any time on or after the maturity date to receive the contract's
remaining cash value.
As described in "Contract features and benefits" under "Guaranteed withdrawal
benefit for life ("GWBL")," these payments will have the potential to increase
with favorable investment performance. Any remaining Guaranteed minimum death
benefit value will be transferred to the annuity payout contract as your
"minimum death benefit." If an enhanced death benefit had been elected, its
value as of the date the annuity payout contract is issued will become your
minimum death benefit, and it will no longer increase.
The minimum death benefit will be reduced pro rata by each payment. If you die
while there is any minimum death benefit remaining, it will be paid to your
beneficiary.
Please see Appendix VI later in this Prospectus for variations that may apply
in your state.
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5. Charges and expenses
--------------------------------------------------------------------------------
CHARGES THAT AXA EQUITABLE DEDUCTS
We deduct the following charges each day from the net assets of each variable
investment option. These charges are reflected in the unit values of each
variable investment option:
o A mortality and expense risks charge
o An administrative charge
o A distribution charge
We deduct the following charges from your account value. When we deduct these
charges from your variable investment options, we reduce the number of units
credited to your contract:
o On each contract date anniversary -- an annual administrative charge, if
applicable.
o At the time you make certain withdrawals or surrender your contract -- a
withdrawal charge.
o On each contract date anniversary -- a charge for each optional benefit in
effect under your contract: a death benefit (other than the Standard death
benefit); the Guaranteed minimum income benefit; the Guaranteed withdrawal
benefit for life; and the Earnings enhancement benefit.
o 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.
An annuity administrative fee may also apply.
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. Nor does it mean that we may not also be compensated for such expense
or risk out of any other charges we are permitted to deduct by the terms of the
contracts.
To help with your retirement planning, we may offer other annuities with
different charges, benefits, and features. Please contact your financial
professional for more information.
SEPARATE ACCOUNT ANNUAL EXPENSES
MORTALITY AND EXPENSE RISKS CHARGE. We deduct a daily charge from the net
assets in each variable investment option to compensate us for mortality and
expense risks, including the Standard death benefit. The daily charge is
equivalent to an annual rate of 0.95% of the net assets in each variable
investment option.
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. A portion of this charge also
compensates us for the contract credit. 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.
ADMINISTRATIVE CHARGE. We deduct a daily charge from the net assets in each
variable investment option. The charge, together with the annual administrative
charge described below, is to compensate us for administrative expenses under
the contracts. The daily charge is equivalent to an annual rate of 0.35% of the
net assets in each variable investment option.
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. The daily charge is equivalent to an annual rate of 0.25%
of the net assets in each variable investment option.
ANNUAL ADMINISTRATIVE CHARGE
We deduct an administrative charge from your account value on each contract
date anniversary. We deduct the charge if your account value on the last
business day of the contract year is less than $50,000. If your 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 account
value. The charge is $30 for contract years three and later.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option (see Appendix VI 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 this charge from the account for special money
market dollar cost averaging. 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.
60 Charges and expenses
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If your 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 "Insufficient account value" in "Determining your
contract's value" earlier in this Prospectus.
WITHDRAWAL CHARGE
A withdrawal charge applies in two circumstances: (1) if you make one or more
withdrawals during a contract year that, in total, exceed the 10% free
withdrawal amount, described below, or (2) if you surrender your contract to
receive its cash value or apply your cash value to a non life contingent
annuity payout option. The withdrawal charge applicable under your
Accumulator(R) Plus(SM) is imposed if you select a non-life contingent period
certain payout annuity. If the period certain is more than 5 years, then the
withdrawal charge deducted will not exceed 5% of the account 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. A portion
of this charge also compensates us for the contract credit. For a discussion of
the credit, see "Credits" in "Contracts 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 even
if the account value is less than total net contributions. 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:
--------------------------------------------------------------------------------
Contract year
--------------------------------------------------------------------------------
1 2 3 4 5 6 7 8 9 10+
--------------------------------------------------------------------------------
Percentage of
contribution 8% 8% 7% 7% 6% 5% 4% 3% 2% 0%
--------------------------------------------------------------------------------
For purposes of calculating the withdrawal charge, we treat the contract year
in which we receive a contribution as "contract year 1." Amounts withdrawn up
to the free withdrawal amount 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 VI later in this Prospectus for possible withdrawal charge
schedule variations in your state.
In order to give you the exact dollar amount of the withdrawal you request, we
deduct the amount of the withdrawal and the withdrawal charge from your account
value. Any amount deducted to pay withdrawal charges is also subject to the
same withdrawal charge percentage. We deduct the charge in proportion to the
amount of the withdrawal subtracted from each variable 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
account value. For more information, see "Guaranteed minimum death benefit and
Guaranteed minimum income benefit base" and "How withdrawals affect your
Guaranteed minimum income benefit and Guaranteed minimum death benefit" earlier
in the Prospectus.
We may offer a version of the contract that does not include a withdrawal
charge.
The withdrawal charge does not apply in the circumstances described below.
10% FREE WITHDRAWAL AMOUNT. Each contract year you can withdraw up to 10% of
your account value without paying a withdrawal charge. The 10% free withdrawal
amount is determined using your account value at the beginning of each contract
year. In the first contract year, the 10% free withdrawal amount is determined
using all contributions received in the first 90 days of the contract year.
Additional contributions during the contract year do not increase your 10% free
withdrawal amount. The 10% free withdrawal amount does not apply if you
surrender your contract except where required by law.
CERTAIN WITHDRAWALS. If you elected the Guaranteed minimum income benefit with
or without the Greater of 4% Roll-Up to age 80 or the Annual Ratchet to age 80
enhanced death benefit ("Greater of" GMDB I or "Greater of" GMDB II), beginning
on the first day of the 6th contract year (after GMDB is added) the withdrawal
charge will be waived for any withdrawal that, together with any prior
withdrawals made during the contract year, does not exceed 4% of the beginning
of contract year 4% Roll-Up to age 80 benefit base even if such withdrawals
exceed the free withdrawal amount. Also, a withdrawal charge does not apply to
a withdrawal that exceeds 4% of the beginning of contract year 4% Roll-Up to
age 80 benefit base as long as it does not exceed the free withdrawal amount.
If your withdrawals exceed the amount described above, this waiver is not
applicable to that withdrawal, or to any subsequent withdrawals for the life of
the contract.
If the Guaranteed withdrawal benefit for life is in effect, we will waive any
withdrawal charge for any withdrawals during the contract year up to the
Guaranteed annual withdrawal amount, even if such withdrawals exceed the free
withdrawal amount. However, each withdrawal reduces the free withdrawal amount
for that contract year by the amount of the withdrawal. Also, a withdrawal
charge does not apply to a withdrawal that exceeds the Guaranteed annual
withdrawal amount as long as it does not exceed the free withdrawal amount.
Withdrawal charges, if applicable, are applied to the amount of the withdrawal
that exceeds both the free withdrawal amount and the Guaranteed annual
withdrawal amount.
DISABILITY, TERMINAL ILLNESS, OR CONFINEMENT TO NURSING HOME. The withdrawal
charge also does not apply if:
(i) An owner (or older joint owner, if applicable) has qualified to
receive Social Security disability benefits as certified by the Social
Security Administration; or
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(ii) We receive proof satisfactory to us (including certification by a
licensed physician) that an owner's (or older joint owner's, if
applicable) life expectancy is six months or less; or
(iii) An owner (or older joint owner, if applicable) has been confined to a
nursing home for more than 90 days (or such other period, as required
in your state) as verified by a licensed physician. A nursing home for
this purpose means one that is (a) approved by Medicare as a provider
of skilled nursing care service, or (b) licensed as a skilled nursing
home by the state or territory in which it is located (it must be
within the United States, Puerto Rico, or U.S. Virgin Islands) and
meets all of the following:
-- its main function is to provide skilled, intermediate, or
custodial nursing care;
-- it provides continuous room and board to three or more persons;
-- it is supervised by a registered nurse or licensed practical
nurse;
-- it keeps daily medical records of each patient;
-- it controls and records all medications dispensed; and
-- its primary service is other than to provide housing for
residents.
We reserve the right to impose a withdrawal charge, in accordance with your
contract and applicable state law, if the conditions as described in (i), (ii)
or (iii) above existed at the time a contribution was remitted or if the
condition began within 12 months of the period following remittance. 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 MINIMUM DEATH BENEFIT CHARGE
ANNUAL RATCHET TO AGE 80. If you elect the Annual Ratchet to age 80 enhanced
death benefit, we deduct a charge annually from your account value on each
contract date anniversary for which it is in effect. The charge is equal to
0.25% of the Annual Ratchet to age 80 benefit base.
"GREATER OF" GMDB I - GREATER OF 4% ROLL-UP TO AGE 80 OR ANNUAL RATCHET TO AGE
80. We deduct a charge annually from your account value on each contract date
anniversary for which it is in effect. The charge is equal to 0.80% of the
greater of the 4% Roll-Up to age 80 or the Annual Ratchet to age 80 benefit
base.
If you opt to reset your Roll-Up benefit base on the 2nd or later contract date
anniversary, we reserve the right to increase the charge for this benefit up to
a maximum of 0.95%. You will be notified of the increased charge at the time we
notify you of your eligibility to reset. The increased charge, if any, will
apply as of the next contract date anniversary following the reset and on all
contract date anniversaries thereafter.
"GREATER OF" GMDB II - GREATER OF 4% ROLL-UP TO AGE 80 OR ANNUAL RATCHET TO AGE
80. We deduct a charge annually from your account value on each contract date
anniversary for which it is in effect. The charge is equal to 1.00% of the
greater of the 4% Roll-Up to age 80 or the Annual Ratchet to age 80 benefit
base. If you opt to reset your Roll-Up benefit base on the 2nd or later
contract date anniversary, we reserve the right to increase the charge for this
benefit up to a maximum of 1.15%. You will be notified of the increased charge
at the time we notify you of your eligibility to reset. The increased charge,
if any, will apply as of the next contract date anniversary following the reset
and on all contract date anniversaries thereafter.
WHEN WE DEDUCT THESE CHARGES. We will deduct these charges from your value in
the variable investment options and the guaranteed interest option on a pro
rata basis (see Appendix VI later in this Prospectus to see if deducting this
charge from the guaranteed interest option is permitted in your state). If
those amounts are insufficient, we will deduct all or a portion of these
charges from the account for special money market dollar cost averaging. 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 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 "Insufficient account value" in "Determining your
contract's value" earlier in this Prospectus.
DEATH BENEFIT UNDER CONVERTED GWBL. If your Guaranteed minimum income benefit
converts to the Guaranteed withdrawal benefit for life, we will continue to
deduct the charge for the Guaranteed minimum death benefit that is in effect
prior to the conversion, including any increased fees resulting from a reset.
If the contract is surrendered or annuitized or a death benefit is paid or the
"Greater of" death benefit is dropped on a date other than a contract date
anniversary, we will deduct a pro rata portion of the charge for that year.
STANDARD DEATH BENEFIT. There is no additional charge for this death benefit.
GUARANTEED MINIMUM INCOME BENEFIT CHARGE
If you elect the Guaranteed minimum income benefit, we deduct a charge annually
from your account value on each contract date anniversary until such time as
you exercise the Guaranteed minimum income benefit, drop the Guaranteed minimum
income benefit, elect another annuity payout option, or the contract date
anniversary after the owner (or older joint owner, if applicable) reaches age
80, whichever occurs first. For the Guaranteed minimum income benefit I - Asset
Allocation, the charge is equal to 0.80% of the benefit base. For the
Guaranteed minimum income benefit II - Custom Selection, the charge is equal to
1.00% of the benefit base.
If you opt to reset your Roll-Up benefit base on the 2nd or later contract date
anniversary, we reserve the right to increase the charge for this benefit up to
a maximum of 1.10% for the Guaranteed minimum income benefit I - Asset
Allocation and 1.30% for the Guaranteed minimum income benefit II - Custom
Selection. You will be notified of the increased charge at the time we notify
you of your eligibility to
62 Charges and expenses
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reset. The increased charge, if any, will apply as of the next contract date
anniversary following the reset and on all contract date anniversaries
thereafter.
We will deduct this charge from your value in the variable investment options
and the guaranteed interest option on a pro rata basis (see Appendix VI later
in this Prospectus to see if deducting this charge from the guaranteed interest
option is permitted in your state). If those amounts are insufficient, we will
deduct all or a portion of this charge from the account for special money
market dollar cost averaging. If the contract is surrendered or annuitized, or
a death benefit is paid or the Guaranteed minimum income benefit is dropped on
a date other than a contract date anniversary, we will deduct a pro rata
portion of the charge for that year.
If your account value is insufficient to pay this charge, your contract will
terminate without value and you will lose any applicable guaranteed benefits
unless the no lapse guarantee is in effect, as noted under "Insufficient
account value" in "Determining your contract's value" earlier in this
Prospectus.
EARNINGS ENHANCEMENT BENEFIT CHARGE
If you elect the Earnings enhancement benefit, we deduct a charge annually from
your account value on each contract date anniversary for which it is in effect.
The charge is equal to 0.35% of the account value on each contract date
anniversary. We will deduct this charge from your value in the variable
investment options and the guaranteed interest option on a pro rata basis. If
those amounts are insufficient, we will deduct all or a portion of this charge
from the account for special money market dollar cost averaging. 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 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 "Insufficient account value" in "Determining your
contract's value" earlier in this Prospectus.
GUARANTEED WITHDRAWAL BENEFIT FOR LIFE BENEFIT CHARGE
If your Guaranteed minimum income benefit converts to the Guaranteed withdrawal
benefit for life, we deduct a charge for the Guaranteed withdrawal benefit for
life that is equal to a percentage of your GWBL benefit base. This initial
percentage is equal to the same percentage of your Guaranteed minimum income
benefit base that we were deducting as the Guaranteed minimum income benefit
charge on the Conversion effective date. The dollar amount of the charge,
however, may be different, depending upon whether your initial GWBL benefit
base is calculated using your account value or Guaranteed minimum income
benefit base. See "Guaranteed withdrawal benefit for life ("GWBL")" earlier in
this Prospectus. We deduct this charge annually from your account value on each
contract date anniversary. This charge is the same for the Single life and
Joint life options. This charge may increase as the result of an annual
ratchet, up to a percentage equal to a maximum charge of 1.10% for the
Guaranteed minimum income benefit I - Asset Allocation or 1.30% for the
Guaranteed minimum income benefit II - Custom Selection. We will permit you to
opt out of the ratchet if the charge increases. See "Guaranteed minimum income
benefit charge" earlier in this section.
NET LOAN INTEREST CHARGE
We charge interest on loans under Rollover TSA contracts but also credit you
interest on your loan reserve account. Our net loan interest charge is
determined by the excess between the interest rate we charge over the interest
rate we credit. In no event will the net loan interest charge exceed 2.00%. See
"Loans under Rollover TSA contracts" earlier in this Prospectus for more
information on how the loan interest is calculated and for restrictions that
may apply.
CHARGES FOR STATE PREMIUM AND OTHER APPLICABLE TAXES
We deduct a charge designed to approximate certain taxes that may be imposed on
us, such as premium taxes in your state. Generally, we deduct the charge from
the amount applied to provide an annuity payout option. The current tax charge
that might be imposed varies by jurisdiction and ranges from 0% to 3.5%.
VARIABLE IMMEDIATE ANNUITY PAYOUT OPTION ADMINISTRATIVE FEE
We currently deduct a fee of $350 from the amount to be applied to the Variable
Immediate annuity payout option. This option may not be available at the time
you elect to annuitize or it may have a different charge.
CHARGES THAT THE TRUSTS DEDUCT
The Trusts deduct charges for the following types of fees and expenses:
o Management fees ranging from 0.10% to 0.95%.
o 12b-1 fees of 0.25%.
o Operating expenses, such as trustees' fees, independent public accounting
firms' fees, legal counsel fees, administrative service fees, custodian
fees and liability insurance.
o 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 AXA Premier VIP Trust and EQ
Advisors Trust 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 or the mortality and expense risks charge or change the minimum initial
contribution requirements. We also may change the Guaranteed minimum income
benefit or the Guaranteed
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minimum death benefit, or offer variable investment options that invest in
shares of the Trusts that are not subject to the 12b-1 fee. If permitted under
the terms of our exemptive order regarding Accumulator(R) Plus(SM) bonus
feature, we may also change the crediting percentage that applies to
contributions. Group arrangements include those in which a trustee or an
employer, for example, purchases contracts covering a group of individuals on a
group basis. Group arrangements are not available for Rollover IRA and Roth
Conversion 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 mortality generally vary with the size
and stability of the group or sponsoring organization, among other factors. We
take all these factors into account when reducing charges. To qualify for
reduced charges, a group or sponsored arrangement must meet certain
requirements, such as requirements for size and number of years in existence.
Group or sponsored arrangements that have been set up solely to buy contracts
or that have been in existence less than six months will not qualify for
reduced charges.
We will make these and any similar reductions according to our rules in effect
when we approve a contract for issue. We may change these rules from time to
time. Any variation will reflect differences in costs or services and will not
be unfairly discriminatory.
Group or sponsored arrangements may be governed by federal income tax rules,
the Employee Retirement Income Security Act of 1974 ("ERISA") or both. We make
no representations with regard to the impact of these and other applicable laws
on such programs. We recommend that employers, trustees, and others purchasing
or making contracts available for purchase under such programs seek the advice
of their own legal and benefits advisers.
OTHER DISTRIBUTION ARRANGEMENTS
We may reduce or eliminate charges when sales are made in a manner that results
in savings of sales and administrative expenses, such as sales through persons
who are compensated by clients for recommending investments and who receive no
commission or reduced commissions in connection with the sale of the contracts.
We will not permit a reduction or elimination of charges where it would be
unfairly discriminatory.
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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. 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, the surviving annuitant is
considered the beneficiary, and will take the place of any other beneficiary.
You may be limited as to the beneficiary you can designate in a Rollover TSA
contract. In a QP contract, the beneficiary must be the trustee. 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 is equal to your account value or, if greater, the applicable
Guaranteed minimum death benefit. In either case, the death benefit is
increased by any amount applicable under the Earnings enhancement benefit. We
determine the amount of the death benefit (other than the applicable Guaranteed
minimum death benefit) and any amount applicable under the Earnings enhancement
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. The account value used to determine the death benefit and the Earnings
enhancement benefit will first be reduced by the amount of any Credits applied
in 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. For Rollover TSA contracts with outstanding loans, we
will reduce the amount of the death benefit by the amount of the outstanding
loan, including any accrued but unpaid interest on the date that the death
benefit payment is made. Payment of the death benefit terminates the contract.
If the age of any person upon whose life an optional Guaranteed minimum death
benefit depends has been misstated, any benefits will be those which would have
been purchased at the correct age. Therefore, if an optional Guaranteed minimum
death benefit rider was elected by such person, (i) the optional Guaranteed
minimum death benefit rider will be revoked; (ii) the applicable charge for the
benefit will be refunded and applied to the annuity account value of the
contract, and (iii) the standard death benefit will apply.
--------------------------------------------------------------------------------
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 and the GWBL is not in effect, the death benefit is payable upon
the death of the older joint owner or older joint annuitant, as applicable.
Under contracts with GWBL, the terms Owner and Successor Owner are intended to
be references to Annuitant and Joint Annuitant, respectively, if the contract
has a non-natural owner.
--------------------------------------------------------------------------------
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.
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. For
Joint life contracts with GWBL, the death benefit is paid to the beneficiary at
the death of the second to die of the owner and successor owner.
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
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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 and your spouse is the sole
primary beneficiary, your surviving spouse can continue the contract as a
successor owner under "Spousal continuation" or under our Beneficiary
continuation option, as discussed below.
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, and by the value of the Earnings
enhancement benefit. 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 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, the Guaranteed minimum
death benefit and charge and the Guaranteed minimum income benefit and charge
will then be discontinued. Withdrawal charges will no longer apply, and no
additional 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, the death benefit is not
payable, and the Guaranteed minimum death benefit and the Earnings enhancement
benefit, if applicable, will continue without change. If the Guaranteed minimum
income benefit cannot be exercised within the period required by federal tax
laws, the benefit and charge will terminate as of the date we receive proof of
death. Withdrawal charges will continue to apply and no additional
contributions will be permitted. If the Guaranteed minimum income benefit
converts to the Guaranteed withdrawal benefit for life, the provisions
described in this paragraph will apply at the death of the younger owner, even
though the Guaranteed withdrawal benefit for life is calculated using the age
of the surviving older owner.
SPOUSAL CONTINUATION
If you are the contract owner and your spouse is the sole primary beneficiary
or you jointly own the contract with your younger spouse, or if the contract
owner is a non-natural person and you and your younger spouse are joint
annuitants, your spouse may elect to continue the contract as successor owner
upon your death. Spousal beneficiaries (who are not also joint owners) must be
85 or younger as of the date of the deceased spouse's death in order to
continue the contract under Spousal continuation. The determination of spousal
status is made under applicable state law. However, in the event of a conflict
between federal and state law, we follow federal rules.
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:
o As of the date we receive satisfactory proof of your death, any required
instructions, information and forms necessary, we will increase the account
value to equal the elected Guaranteed minimum death benefit as of the date of
your death if such death benefit is greater than such account value, plus any
amount applicable under the Earnings enhancement benefit , and adjusted for
any subsequent withdrawals. 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. The increase in the account
value will be allocated to the investment options according to the allocation
percentages we have on file for your contract.
o In general, withdrawal charges will no longer apply to contributions made
before your death. Withdrawal charges will apply if additional contributions
are made.
o The applicable Guaranteed minimum death benefit, including the Guaranteed
minimum death benefit under contracts in which the Guaranteed minimum income
benefit has converted to the Guaranteed withdrawal benefit for life option,
may continue as follows:
o If you elected either the Annual Ratchet to age 80 enhanced death benefit
(either without the Guaranteed minimum income benefit or combined with the
Guaranteed minimum income benefit) or, "Greater of" GMDB I or "Greater of"
GMDB II enhanced death benefit (combined with the Guaranteed minimum income
benefit) and your spouse is age 75 or younger on the date of your death, and
you were age 79 or younger at death, the enhanced 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. If you
were age 80 or older at death, we will reinstate the Guaranteed minimum
death benefit you elected. The benefit base (which had previously been
frozen
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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.
o If you elected either the Annual Ratchet to age 80 enhanced death benefit
(either without the Guaranteed minimum income benefit or combined with the
Guaranteed minimum income benefit) or "Greater of" GMDB I or "Greater of"
GMDB II enhanced death benefit (combined with the Guaranteed minimum income
benefit) and your spouse is age 76 or older on the date of your death, the
Guaranteed minimum death benefit and charge will be discontinued.
o If the Guaranteed minimum death benefit continues, the Roll-Up benefit base
reset, if applicable, will be based on the surviving spouse's age at the
time of your death. The next available reset will be based on the contract
issue date or last reset, as applicable. The next available reset will also
account for any time elapsed before the election of the Spousal
Continuation. This does not apply to contracts in which the Guaranteed
minimum income benefit has converted to the Guaranteed withdrawal benefit
for life.
o The Earnings enhancement benefit will be based on the surviving spouse's age
at the date of the deceased spouse's death for the remainder of the life of
the contract. If the benefit had been previously frozen because the older
spouse had attained age 80, it will be reinstated if the surviving spouse is
age 75 or younger. The benefit is then frozen on the contract date anniversary
after the surviving spouse reaches age 80. If the surviving spouse is age 76
or older, the benefit and charge will be discontinued.
o The Guaranteed minimum income benefit 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 "Guaranteed minimum income
benefit" in "Contract features and benefits" earlier in this Prospectus.
o If you convert the Guaranteed minimum income benefit to the Guaranteed
withdrawal benefit for life on a Joint life basis, the benefit and charge will
remain in effect and no death benefit is payable until the death of the
surviving spouse. Withdrawal charges will continue to apply to all
contributions made prior to the deceased spouse's death. No additional
contributions will be permitted. If the Guaranteed minimum income benefit
converts to the Guaranteed withdrawal benefit for life on a Single life basis,
the benefit and charge will terminate.
o If the older owner of a Joint life contract under which the Guaranteed minimum
income benefit converted to the Guaranteed withdrawal benefit for life at age
80 dies, and the younger spouse is age 75 or younger at the time of the older
spouse's death, the elected enhanced death benefit will continue to roll up
and ratchet in accordance with its terms until the contract date anniversary
following the surviving spouse's age 80. If the surviving spouse is age 76 or
older at the time of the older spouse's death, the benefit will continue in
force, but there will be no increase. Regardless of the age of the younger
spouse, there will be no Roll-up benefit base reset.
o 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.
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:
o The Guaranteed minimum death benefit, the Earnings enhancement benefit and the
Guaranteed minimum income benefit continue to be based on the older spouse's
age for the life of the contract.
o 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.
o If the Guaranteed minimum income benefit has converted to the Guaranteed
withdrawal benefit for life, the benefit and charge will remain in effect and
no death benefit is payable until the death of the surviving spouse.
o The withdrawal charge schedule 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 or 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 or see Appendix VI later in this Prospectus
for further information.
Where an IRA contract is owned in a custodial individual retirement account,
the custodian may reinvest the death benefit in an individual retirement
annuity contract, using the account beneficiary as the annuitant. Please speak
with your financial professional for further information. For Joint life
contracts with GWBL, BCO is only available after the death of the second owner.
Payment of death benefit 67
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BENEFICIARY CONTINUATION OPTION FOR TRADITIONAL IRA AND ROTH IRA CONTRACTS ONLY.
There are special rules governing required minimum distributions in 2009.
Please see "Suspension of required minimum distributions for 2009" later in
this Prospectus.
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 account value to equal the applicable death
benefit if such death benefit is greater than such account value, plus any
amount applicable under the Earnings enhancement benefit feature, adjusted for
any subsequent withdrawals. The account value, however, will first be reduced
by any Credits applied in the one-year period prior to the owner's death.
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:
o The contract continues with your name on it for the benefit of your
beneficiary.
o The beneficiary replaces the deceased owner as annuitant.
o 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.
o 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.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
o If the Guaranteed minimum income benefit, an optional enhanced death benefit
or the Guaranteed withdrawal benefit for life is in effect under the contract,
they will no longer be in effect and charges for such benefits will stop.
Also, any Guaranteed minimum death benefit feature will no longer be in
effect.
o The beneficiary may choose at any time to withdraw all or a portion of the
account value and no withdrawal charges, if any, will apply.
o Any partial withdrawal must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract.
o 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:
o 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.
o The beneficiary automatically replaces the existing annuitant.
o The contract continues with your name on it for the benefit of your
beneficiary.
o 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.
o The minimum amount that is required in order to elect the beneficiary
continuation option is $5,000 for each beneficiary.
o The beneficiary may make transfers among the investment options but no
additional contributions will be permitted.
68 Payment of death benefit
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o If the Guaranteed minimum income benefit, an optional enhanced death benefit
or the Guaranteed withdrawal benefit for life is in effect under the contract,
they will no longer be in effect and charges for such benefits will stop.
Also, any Guaranteed minimum death benefit feature will no longer be in
effect.
o If the beneficiary chooses the "5-year rule," withdrawals may be made at any
time. If the beneficiary instead chooses scheduled payments, the beneficiary
must also choose between two potential withdrawal options at the time of
election. If the beneficiary chooses "Withdrawal Option 1", the beneficiary
cannot later withdraw funds in addition to the scheduled payments the
beneficiary is receiving; "Withdrawal Option 1" permits total surrender only.
"Withdrawal Option 2" permits the beneficiary to take withdrawals, in addition
to scheduled payments, at any time. However, the scheduled payments under
"Withdrawal Option 1" are afforded favorable tax treatment as "annuity
payments." See "Taxation of nonqualified annuities" in "Tax Information" later
in this Prospectus.
o Any partial withdrawals must be at least $300.
o Your beneficiary will have the right to name a beneficiary to receive any
remaining interest in the contract on the beneficiary's death.
o 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 older joint owner:
o 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 account value to equal the
applicable death benefit if such death benefit is greater than such account
value plus any amount applicable under the Earnings enhancement benefit,
adjusted for any subsequent withdrawals. The account value, however, will
first be reduced by any Credits applied in the one-year period prior to the
owner's death.
o No withdrawal charges will apply to any withdrawals by the beneficiary.
If the deceased is the younger non-spousal joint owner:
o The annuity account value will not be reset to the death benefit amount.
o The contract's withdrawal charge schedule 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.
o 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.
Payment of death benefit 69
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7. Tax information
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OVERVIEW
In this part of the prospectus, we discuss the current federal income tax rules
that generally apply to Accumulator(R) Plus(SM) contracts owned by United
States individual taxpayers. The tax rules can differ, depending on the type of
contract, whether NQ, traditional IRA, Roth IRA, QP or TSA. Therefore, we
discuss the tax aspects of each type of contract separately.
Federal income tax rules include the United States laws in the Internal Revenue
Code, and Treasury Department Regulations and Internal Revenue Service ("IRS")
interpretations of the Internal Revenue Code. These tax rules may change
without notice. We cannot predict whether, when, or how these rules could
change. Any change could affect contracts purchased before the change. Congress
may also consider proposals in the future to comprehensively reform or overhaul
the United States tax and retirement systems, which if enacted, could affect
the tax benefits of a contract. We cannot predict what, if any, legislation
will actually be proposed or enacted.
We cannot provide detailed information on all tax aspects of the contracts.
Moreover, the tax aspects that apply to a particular person's contract may vary
depending on the facts applicable to that person. We do not discuss state
income and other state taxes, federal income tax and withholding rules for
non-U.S. taxpayers, or federal gift and estate taxes. 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.
BUYING A CONTRACT TO 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. Similarly, a 403(b) plan can be funded
through a 403(b) annuity contract or a 403(b)(7) custodial 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 described 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, such as Accumulator(R) Plus'(SM)
guaranteed benefits, extra credit on each contribution, special money market
dollar cost averaging program, choice of death benefits, guaranteed interest
option, selection of investment funds and its choices of pay out options, as
well as 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, 403(b) plans and IRAs. For this purpose
additional annuity contract benefits may include, but are not limited to,
guaranteed minimum income benefits and enhanced death 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.
SUSPENSION OF REQUIRED MINIMUM DISTRIBUTIONS FOR 2009
Congress has enacted a limited suspension of account-based required minimum
distribution withdrawals only for calendar year 2009. The suspension does not
apply to annuity payments. The suspension does not affect the determination of
the Required Beginning Date. Neither lifetime nor post-death required minimum
distributions need to be made during 2009. Please note that if you have
previously elected to have amounts automatically withdrawn from a contract to
meet required minimum distribution rules (for example, our "automatic required
minimum distribution (RMD) service" or our "beneficiary continuation option"
under a deceased individual's IRA contract each discussed earlier in this
Prospectus) we will make distributions for calendar year 2009 unless you
request in writing before we make the distribution that you want no required
minimum distribution for calendar year 2009. If you receive a distribution
which would have been a lifetime required minimum distribution (but for the
2009 suspension), you may preserve the tax deferral on the distribution by
rolling it over within 60 days after you receive it to an IRA or other eligible
retirement plan. Please note that any distribution to a nonspousal beneficiary
which would have been a post-death required minimum distribution (but for the
2009 suspension) is not eligible for the 60-day rollover.
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.
70 Tax information
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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:
o 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);
o if you transfer a contract, for example, as a gift to someone other than your
spouse (or former spouse);
o if you use a contract as security for a loan (in this case, the amount
pledged will be treated as a distribution); and
o if the owner is other than an individual (such as a corporation, partnership,
trust, or other non-natural person). This provision does not apply to a trust
which is a mere agent or nominee for an individual, such as a grantor trust.
Federal tax law requires that all nonqualified deferred annuity contracts that
AXA Equitable and its affiliates issue to you during the same calendar year be
linked together and treated as one contract for calculating the taxable amount
of any distribution from any of those contracts.
ANNUITY PAYMENTS
Annuitization payments that are based on life or life expectancy are considered
annuity payments for income tax purposes. We include in annuitization payments
GMIB payments, Guaranteed withdrawal benefit for life Maturity date annuity
payments, and other annuitization payments available under your contract. We
also include Guaranteed annual withdrawals that are continued after your
account value goes to zero under a supplementary life annuity contract, as
discussed under "Guaranteed withdrawal benefit for life ("GWBL")" in "Contract
features and benefits" earlier in this Prospectus. In order to get annuity
payment tax treatment, all amounts under the contract must be applied to the
annuity payout option; we do not "partially annuitize" nonqualified deferred
annuity contracts.
Your rights to apply amounts under this Accumulator(R) Plus(SM) 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 one of the annuity payout options
under the contract. If no affirmative choice is made, we will apply any
remaining annuity value to the default option under the contract at such age.
While there is no specific federal tax guidance as to whether or when an
annuity contract is required to mature, or as to the form of the payments to be
made upon maturity, we believe that this Accumulator(R) Plus(SM) contract
constitutes an annuity contract under current federal tax rules.
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.
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.
WITHDRAWALS MADE BEFORE ANNUITY PAYMENTS BEGIN
If you make withdrawals before annuity payments begin under your contract, they
are taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. If you withdraw an amount which is more than the earnings in the
contract as of the date of the withdrawal, the balance of the distribution is
treated as a return 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 but before the end of the first
contract year, 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.
TAXATION OF LIFETIME WITHDRAWALS UNDER GUARANTEED WITHDRAWAL BENEFIT FOR LIFE
We treat any withdrawals under the contract as non-annuity payments for income
tax purposes. (This includes Guaranteed annual withdrawal amounts received
after age 80 but before the Maturity Date. Payments made after the Maturity
Date are discussed under "Annuity payments" above). These withdrawals are
taxable to you as ordinary income if there are earnings in the contract.
Generally, earnings are your account value less your investment in the
contract. Generally, your investment in the contract equals the contributions
you made, less any amounts you previously withdrew that were not taxable. 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
return of your investment in the contract and is not taxable. It reduces the
investment in the contract.
EARNINGS ENHANCEMENT BENEFIT
In order to enhance the amount of the death benefit to be paid at the owner's
death, you may purchase an Earnings enhancement benefit
Tax information 71
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rider for your NQ contract. Although we regard this benefit as an investment
protection feature which is part of the contract and which should have no
adverse tax effect, it is possible that the IRS could take a contrary position
or assert that the Earnings enhancement benefit rider is not part of the
contract. In such a case, the charges for the Earnings enhancement benefit
rider could be treated for federal income tax purposes as a partial withdrawal
from the contract. If this were so, such a deemed withdrawal could be taxable,
and for contract owners under age 59-1/2, also subject to a tax penalty. Were
the IRS to take this position, AXA Equitable would take all reasonable steps to
attempt to avoid this result, which could include amending the contract (with
appropriate notice to you).
CONTRACTS PURCHASED THROUGH EXCHANGES
You may purchase your NQ 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:
o the contract that is the source of the funds you are using to purchase the NQ
contract is another nonqualified deferred annuity contract or life insurance
or endowment contract.
o the owner and the annuitant are the same under the source contract and the
Accumulator(R) Plus(SM) NQ contract. 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.
The tax basis, also referred to as your investment in the contract, of the
source contract carries over to the Accumulator(R) Plus(SM) NQ contract.
An owner may direct the proceeds of a partial withdrawal from one nonqualified
deferred annuity contract to a different insurer to purchase a new nonqualified
deferred annuity contract on a tax-deferred basis. Special forms, agreement
between the carriers, and provision of cost basis information may be required
to process this type of an exchange.
Section 1035 exchanges are generally not available after the death of the
owner.
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.
BENEFICIARY CONTINUATION OPTION
We have received a private letter ruling from the IRS regarding certain tax
consequences of scheduled payments under the beneficiary continuation option
for a prior similar version of the NQ contract. See the discussion "Beneficiary
continuation option for NQ contracts only" in "Payment of death benefit"
earlier in this Prospectus. Among other things, the IRS rules that:
o scheduled payments under the beneficiary continuation option for NQ contracts
satisfy the death of owner rules of Section 72(s)(2) of the Code, regardless
of whether the beneficiary elects "Withdrawal Option 1" or "Withdrawal Option
2;"
o scheduled payments, any additional withdrawals under "Withdrawal Option 2," or
contract surrenders under "Withdrawal Option 1" will only be taxable to the
beneficiary when amounts are actually paid, regardless of the withdrawal
option selected by the beneficiary;
o a beneficiary who irrevocably elects scheduled payments with "Withdrawal
Option 1" will receive "excludable amount" tax treatment on scheduled
payments. See "Annuity payments" earlier in this section. If the beneficiary
elects to surrender the contract before all scheduled payments are paid, the
amount received upon surrender is a non-annuity payment taxable to the extent
it exceeds any remaining investment in the contract.
The ruling specifically does not address the taxation of any payments received
by a beneficiary electing "Withdrawal Option 2" (whether scheduled payments or
any withdrawal that might be taken).
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:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o 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.
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. 49. 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. 49. 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
72 Tax information
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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. 49, there are some issues
that remain unclear. For example, the IRS has not issued any guidance as to
whether having a larger number of Portfolios available, or an unlimited right
to transfer among them, could cause you to be treated as the owner. We do not
know whether the IRS will ever provide such guidance or whether such guidance,
if unfavorable, would apply retroactively to your contract. Furthermore, the
IRS could reverse its current guidance at any time. We reserve the right to
modify your contract as necessary to prevent you from being treated as the
owner of the assets of Separate Account No. 49.
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:
o Traditional IRAs, typically funded on a pre-tax basis; and
o 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 Publication 590 ("Individual Retirement Arrangements (IRAs)").
This publication is usually updated annually, and can be obtained from any IRS
district office or 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 ("Rollover IRA") or Roth IRA ("Roth IRA").
This Prospectus contains the information that the IRS requires you to have
before you purchase an IRA. The first section covers some of the special tax
rules that apply to traditional IRAs. The next section covers Roth IRAs. The
disclosure generally assumes direct ownership of the individual retirement
annuity contract. For contracts owned in a custodial individual retirement
account, the disclosure will apply only if you terminate your account or
transfer ownership of the contract to yourself.
We describe the amount and types of charges that may apply to your
contributions under "Charges and expenses" earlier in this Prospectus. We
describe the method of calculating payments under "Accessing your money"
earlier in this Prospectus. We do not guarantee or project growth in any
variable income annuitization option payments (as opposed to payments from a
fixed income annuitization option).
We have not applied for an opinion letter approving the respective forms of the
traditional IRA and Roth IRA contracts for use as a traditional and Roth IRA,
respectively. This IRS approval is a determination only as to the form of the
annuity. It does not represent a determination of the merits of the annuity as
an investment.
Your right to cancel within a certain number of days
You can cancel either type of Accumulator(R) Plus(SM) IRA contract (traditional
IRA or Roth IRA) by following the directions in "Your right to cancel within a
certain number of days" under "Contract features and benefits" earlier in this
Prospectus. If you cancel a traditional IRA or Roth IRA contract, we may have
to withhold tax, and we must report the transaction to the IRS. A contract
cancellation would have an unfavorable tax impact.
Traditional individual retirement annuities (traditional IRAs)
CONTRIBUTIONS TO TRADITIONAL IRAS. Individuals may make three different types
of contributions to purchase a traditional IRA or as subsequent contributions
to an existing IRA:
o "regular" contributions out of earned income or compensation; or
o tax-free "rollover" contributions; or
o direct custodian-to-custodian transfers from other traditional IRAs ("direct
transfers").
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, $5,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs). When your earnings are below
$5,000, your earned income or compensation for the year is the most you can
contribute. This limit does not apply to rollover contributions or direct
custodian-to-custodian transfers into a traditional IRA. You cannot make
regular traditional IRA contributions for the tax year in which you reach age
70-1/2 or any tax year after that.
If you are at least age 50 at any time during the taxable year for which you
are making a regular contribution to your IRA, you may be eligible to make
additional "catch up contributions" of up to $1,000 to your traditional IRA.
SPECIAL RULES FOR SPOUSES. If you are married and file a joint income tax
return, you and your spouse may combine your compensation to
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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 $5,000, married individuals filing jointly
can contribute up to $10,000 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 $5,000 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 $5,000 or 100% of "earned
income" to a traditional IRA for a nonworking spouse until the year in which
the nonworking spouse reaches age 70-1/2. Catch-up contributions may be made as
described above for spouses who are at least age 50 but under age 70-1/2 at any
time during the taxable year for which the contribution is made.
DEDUCTIBILITY OF CONTRIBUTIONS. The amount of traditional IRA contributions
that you can deduct for a taxable year depends on whether you are covered by an
employer-sponsored-tax-favored retirement plan, as defined under special
federal income tax rules. Your Form W-2 will indicate whether or not you are
covered by such a retirement plan.
If you are not covered by a retirement plan during any part of the year, you
can make fully deductible contributions to your traditional IRAs for the
taxable year up to the maximum amount discussed earlier in this section under
"Limits on contributions." That is, your fully deductible contribution can be
up to $5,000, or if less, your earned income. The dollar limit is $6,000 for
people eligible to make age 50-70-1/2 catch-up contributions.
If you are covered by a retirement plan during any part of the year, and your
adjusted gross income (AGI) is below the lower dollar figure in a phase-out
range, you can make fully deductible contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls within a phase-out range, you can make partially deductible
contributions to your traditional IRAs.
If you are covered by a retirement plan during any part of the year, and your
AGI falls above the higher figure in the phase-out range, you may not deduct
any of your regular contributions to your traditional IRAs.
Cost of living indexing adjustments apply to the income limits on deductible
contributions.
If you are single and covered by a retirement plan during any part of the
taxable year, the deduction for traditional IRA contributions phases out with
AGI between $50,000 and $60,000 (for 2009, AGI between $55,000 and $65,000,
after adjustment).
If you are married and file a joint return, and you are covered by a retirement
plan during any part of the taxable year, the deduction for traditional IRA
contributions phases out with AGI between $80,000 and $100,000 (for 2009, AGI
between $89,000 and $109,000, after adjustment).
Married individuals filing separately and living apart at all times are not
considered married for purposes of this deductible contribution calculation.
Generally, the active participation in an employer-sponsored retirement plan of
an individual is determined independently for each spouse. Where spouses have
"married filing jointly" status, however, the maximum deductible traditional
IRA contribution for an individual who is not an active participant (but whose
spouse is an active participant) is phased out for taxpayers with AGI between
$150,000 and $160,000 (for 2009, AGI between $166,000 and $176,000, after
adjustment).
To determine the deductible amount of the contribution for 2009, for example,
you determine AGI and subtract $55,000 if you are single, or $89,000 if you are
married and file a joint return with your spouse. The resulting amount is your
excess AGI. You then determine the limit on the deduction for traditional IRA
contributions using the following formula:
($10,000-excess AGI) times the maximum Equals the adjusted
------------------- x regular = deductible
divided by $10,000 contribution contribution
for the year limit
ADDITIONAL "SAVER'S CREDIT" FOR CONTRIBUTIONS TO A TRADITIONAL
IRA OR ROTH IRA
You may be eligible for a nonrefundable income tax credit for contributions you
make to a traditional IRA or Roth IRA. If you qualify, you may take this credit
even though your traditional IRA contribution is already fully or partially
deductible. To take advantage of this "saver's credit" you must be age 18 or
over before the end of the taxable year for which the contribution is made. You
cannot be a full-time student or claimed as a dependent on another's tax
return, and your adjusted gross income cannot exceed $50,000. ($55,000, after
cost of living adjustments for 2009). The amount of the tax credit you can get
varies from 10% of your contribution to 50% of your contribution, and depends
on your income tax filing status and your adjusted gross income. The maximum
annual contribution eligible for the saver's credit is $2,000. If you and your
spouse file a joint return, and each of you qualifies, each is eligible for a
maximum annual contribution of $2,000. Your saver's credit may also be reduced
if you take or have taken a taxable distribution from any plan eligible for a
saver's credit contribution -- even if you make a contribution to one plan and
take the distribution from another plan -- during the "testing period." The
"testing period" begins two years before the year for which you make the
contribution and ends when your tax return is due for the year for which you
make the contribution, including extensions. Saver's-credit-eligible
contributions may be made to a 401(k) plan, 403(b) plan, governmental employer
457(b) plan, SIMPLE IRA or SARSEP IRA, as well as a traditional IRA or Roth
IRA.
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 nonworking spouse's traditional IRA) may not, however, exceed the $5,000
maximum per person limit for the applicable taxable year. The dollar limit is
$6,000 for people eligible to make age 50-70-1/2 catch-up contributions. See
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"Excess contributions to traditional IRAs" later in this section for more
information. 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.
Rollover and transfer contributions to traditional IRAs
Rollover contributions may be made to a traditional IRA from these "eligible
retirement plans":
o qualified plans;
o governmental employer 457(b) plans;
o 403(b) plans; and
o 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.
During calendar year 2009 only, due to the temporary suspension of
account-based required minimum distribution withdrawals, you may be able to
roll over to a traditional IRA a distribution that normally would not be
eligible to be rolled over. Please note that distributions from inherited IRAs
made to beneficiaries may not be rolled over once distributed.
There are special rules governing required minimum distributions in 2009.
Please see "Suspension of required minimum distributions for 2009" earlier in
this Prospectus.
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 under certain circumstances. The
Accumulator(R) Plus(SM) IRA contract is not available for purchase by a
non-spousal death beneficiary direct rollover.
There are two ways to do rollovers:
o 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.
o 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.
All distributions from a qualified plan, 403(b) plan or governmental employer
457(b) plan are eligible rollover distributions, unless the distributions are:
o (For every year except 2009) "required minimum distributions" after age 70-1/2
or retirement from service with the employer; or
o 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
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o death benefit payments to a beneficiary who is not your surviving spouse; or
o 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 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
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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. 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 ROLLOVER AND DIVORCE-RELATED DIRECT TRANSFERS
The surviving spouse beneficiary of a deceased individual can roll over funds
from, or directly transfer funds from, an inherited traditional IRA to one or
more other traditional IRAs. A non-spousal death beneficiary may also be able
to make a direct rollover to an inherited traditional IRA under certain
circumstances. The Accumulator(R) Plus(SM) IRA contract is not available for
purchase by a non-spousal death beneficiary direct rollover. 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:
o regular contributions of more than the maximum regular contribution amount
for the applicable taxable year); or
o regular contributions to a traditional IRA made after you reach age 70-1/2; or
o 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
(for every year except 2009).
You can avoid the excise tax by withdrawing an excess contribution (rollover or
regular) before the due date (including extensions) for filing your federal
income tax return for the year. If it is an excess regular traditional IRA
contribution, you cannot take a tax deduction for the amount withdrawn. You do
not have to include the excess contribution withdrawn as part of your income.
It is also not subject to the 10% additional penalty tax on early
distributions, discussed later in this section under "Early distribution
penalty tax." You do have to withdraw any earnings that are attributed to the
excess contribution. The withdrawn earnings would be included in your gross
income and could be subject to the 10% penalty tax.
Even after the due date for filing your return, you may withdraw an excess
rollover contribution, without income inclusion or 10% penalty, if:
(1) the rollover was from an eligible retirement plan to a traditional IRA;
(2) the excess contribution was due to incorrect information that the plan
provided; and
(3) you took no tax deduction for the excess contribution.
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. Earnings in 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.
Except as discussed below, the total amount of any distribution from a
traditional IRA must be included in your gross income as ordinary income. We
report all payments from traditional IRA contracts on IRS Form 1099-R as fully
taxable.
If you have ever made nondeductible IRA contributions to any traditional IRA
(it does not have to be to this particular traditional IRA contract), those
contributions are recovered tax free when you get distributions from any
traditional IRA. It is your responsibility to keep permanent tax records of all
of your nondeductible contributions to traditional IRAs so that you can
correctly report the taxable amount of any distribution on your own tax return.
At the end of any year in which you have received a distribution from any
traditional IRA, you calculate the ratio of your total nondeductible
traditional IRA contributions (less any amounts previously withdrawn tax free)
to the total account balances of all traditional IRAs you own at the end of the
year plus all traditional IRA distributions made during the year. Multiply this
by all distributions from the traditional IRA during the year to determine the
nontaxable portion of each distribution.
A distribution from a traditional IRA is not taxable if:
o the amount received is a withdrawal of excess contributions, as described
under "Excess contributions to traditional IRAs" earlier in this section; or
o the entire amount received is rolled over to another traditional IRA or other
eligible retirement plan which agrees to accept the funds. (See "Rollovers
from eligible retirement plans other than traditional IRAs" under "Rollover
and transfer contributions to traditional IRAs" earlier in this section for
more information.)
The following are eligible to receive rollovers of distributions from a
traditional IRA: a qualified plan, a 403(b) plan or a governmental employer
457(b) plan. After-tax contributions in a traditional IRA cannot be rolled from
your traditional IRA into, or back into, a qualified plan, 403(b) plan or
governmental employer 457(b) plan. Before you
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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.
Certain distributions from IRAs in 2009 directly transferred to charitable
organizations may be tax-free to IRA owners age 70-1/2 or older.
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 minimum income
benefits and enhanced death benefits. This could increase the amount required
to be distributed from these contracts. If you take annual withdrawals instead
of annuitizing, please consult your tax adviser concerning applicability of
these complex rules to your situation.
There are special rules governing required minimum distributions in 2009.
Please see "Suspension of required minimum distributions for 2009" earlier in
this Prospectus.
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, the IRS will let you calculate the required minimum distribution for each
traditional IRA that you maintain, using the method that you picked for that
particular IRA. You can add these required minimum distribution amount
calculations together. As long as the total amount you take out every year
satisfies your overall traditional IRA required minimum distribution amount,
you may choose to take your annual required minimum distribution from any one
or more traditional IRAs that you own.
WHAT IF YOU TAKE MORE THAN YOU NEED TO FOR ANY YEAR? The required minimum
distribution amount for your traditional IRAs is calculated on a year-by-year
basis. There are no carry-back or carry-forward provisions. Also, you cannot
apply required 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
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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 591/2 penalty tax include distributions
made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o used to pay certain extraordinary medical expenses (special federal income
tax definition); or
o used to pay medical insurance premiums for unemployed individuals (special
federal income tax definition); or
o 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
o used to pay certain higher education expenses (special federal income tax
definition); or
o 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.
To meet the substantially equal periodic payment exception, you could elect to
apply your contract value to an Income Manager(R) (life annuity with a period
certain) payout annuity contract (level payments version). You could also elect
the substantially equal withdrawals option. We will calculate the substantially
equal annual payments using your choice of IRS-approved methods we offer.
Although substantially
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equal withdrawals and Income Manager(R) payments are not subject to the 10%
penalty tax, they are taxable as discussed in "Withdrawals, payments and
transfers of funds out of traditional IRAs" above. Once substantially equal
withdrawals or Income Manager(R) annuity payments 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 this 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 or Income Manager(R) payments
for purposes of determining whether the penalty applies.
ROTH INDIVIDUAL RETIREMENT ANNUITIES (ROTH IRAS)
This section of the Prospectus covers some of the special tax rules that apply
to Roth IRAs. If the rules are the same as those that apply to the traditional
IRA, we will refer you to the same topic under "traditional IRAs."
The Accumulator(R) Plus(SM) 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:
o regular after-tax contributions out of earnings; or
o taxable rollover contributions from traditional IRAs or other eligible
retirement plans ("conversion" rollover contributions); or
o tax-free rollover contributions from other Roth individual retirement
arrangements or designated Roth accounts under defined contribution plans; or
o 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 transfers" later in this section.
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.
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, $5,000 is the maximum amount that you may
contribute to all IRAs (including Roth IRAs). 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 $5,000, your
earned income or compensation for the year is the most you can contribute. If
you are married and file a joint income tax return, you and your spouse may
combine your compensation to determine the amount of regular contributions you
are permitted to make to Roth IRAs and traditional IRAs. See the discussion
under "Special rules for spouses" earlier in this section under traditional
IRAs.
If you or your spouse are at least age 50 at any time during the taxable year
for which you are making a regular contribution, you may be eligible to make
additional catch-up contributions of up to $1,000.
With a Roth IRA, you can make regular contributions when you reach 70-1/2, as
long as you have sufficient earnings. But, you cannot make contributions,
regardless of your age, for any year that your modified adjusted gross income
exceeds the following amounts (indexed for cost of living adjustment):
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is over $160,000 (for 2009, $176,000 after
adjustment); or
o your federal income tax filing status is "single" and your modified adjusted
gross income is over $110,000 (for 2009, $120,000 after adjustment).
However, you can make regular Roth IRA contributions in reduced amounts when:
o your federal income tax filing status is "married filing jointly" and your
modified adjusted gross income is between $150,000 and $160,000 (for 2009,
between $166,000 and $176,000 after adjustment); or
o your federal income tax filing status is "single" and your modified adjusted
gross income is between $95,000 and $110,000 (for 2009, between $105,000 and
$120,000 after adjustment).
If you are married and filing separately and your modified adjusted gross
income is between $0 and $10,000 the amount of regular contributions you are
permitted to make is phased out. If your modified adjusted gross income is more
than $10,000 you cannot make regular Roth IRA contributions.
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
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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:
o another Roth IRA;
o 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");
o a "designated Roth contribution account" under a 401(k) plan or a 403(b) plan
(direct or 60-day); or
o from non-Roth accounts under another eligible retirement plan, subject to
limits specified 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.
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. Until 2010, you must meet AGI limits specified below.
Unlike a rollover from a traditional IRA to another traditional IRA, a
conversion rollover transaction from a traditional IRA or other eligible
retirement plan to a Roth IRA is not tax-free. Instead, the distribution from
the traditional IRA or other eligible retirement plan is generally fully
taxable. In the case of a traditional IRA conversion rollover for example, we
are required to withhold 10% federal income tax from the amount treated as
converted unless you properly elect out of such withholding. 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.
The following rules apply until 2010: You cannot make conversion rollover
contributions to a Roth IRA for any taxable year in which your modified
adjusted gross income exceeds $100,000. (For this purpose, your modified
adjusted gross income is computed without the gross income stemming from the
conversion rollover. Modified adjusted gross income for this purpose excludes
any lifetime required minimum distribution from a traditional IRA or other
eligible retirement plan.) You also cannot make conversion contributions to a
Roth IRA for any taxable year in which your federal income tax filing status is
"married filing separately."
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 reported as includible 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
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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.
To recharacterize a contribution, you must use our forms.
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.
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:
o rollovers from a Roth IRA to another Roth IRA;
o direct transfers from a Roth IRA to another Roth IRA;
o qualified distributions from a Roth IRA; and
o 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:
o you are age 59-1/2 or older; or
o you die; or
o you become disabled (special federal income tax definition); or
o your distribution is a "qualified first-time homebuyer distribution" (special
federal income tax definition; $10,000 lifetime total limit for these
distributions from all of your traditional and Roth IRAs).
You also have to meet a five-year aging period. A qualified distribution is any
distribution made after the five-taxable-year period beginning with the first
taxable year for which you made any contribution to any Roth IRA (whether or
not the one from which the distribution is being made).
NONQUALIFIED DISTRIBUTIONS FROM ROTH IRAS. Nonqualified distributions from Roth
IRAs are distributions that do not meet both the qualifying event and five-year
aging period tests described above. If you receive such a distribution, part of
it may be taxable. For purposes of determining the correct tax treatment of
distributions (other than the withdrawal of excess contributions and the
earnings on them), there is a set order in which contributions (including
conversion contributions) and earnings are considered to be distributed from
your Roth IRA. The order of distributions is as follows:
(1) Regular contributions.
(2) Conversion contributions, on a first-in-first-out basis (generally, total
conversions from the earliest year first). These conversion contributions
are taken into account as follows:
(a) Taxable portion (the amount required to be included in gross income
because of conversion) first, and then the
(b) Nontaxable portion.
(3) Earnings on contributions.
Rollover contributions from other Roth IRAs are disregarded for this purpose.
To determine the taxable amount distributed, distributions and contributions
are aggregated or grouped, then added together as follows:
(1) All distributions made during the year from all Roth IRAs you maintain --
with any custodian or issuer -- are added together.
(2) All regular contributions made during and for the year (contributions made
after the close of the year, but before the due date of your return) are
added together. This total is added to the total undistributed regular
contributions made in prior years.
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(3) All conversion contributions made during the year are added together. For
purposes of the ordering rules, in the case of any conversion in which the
conversion distribution is made in 2009 and the conversion contribution is
made in 2010, the conversion contribution is treated as contributed prior
to other conversion contributions made in 2010.
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. The
suspension of account-based required minimum distribution withdrawals for
calendar year 2009 applies to post-death required minimum distribution
withdrawals from Roth IRAs.
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 (for example, until 2010, conversion contributions from a
traditional IRA if your modified adjusted gross income is in excess of $100,000
in the conversion year).
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.
TAX-SHELTERED ANNUITY CONTRACTS (TSAS)
GENERAL
This section of the Prospectus reflects our current understanding of some of
the special federal income tax rules applicable to annuity contracts used to
fund employer plans under Section 403(b) of the Internal Revenue Code. We refer
to these contracts as "403(b) annuity contracts" or "Tax Sheltered Annuity
contracts (TSAs)." If the rules are the same as those that apply to another
kind of contract, for example traditional IRA contracts, we will refer you to
the same topic under traditional individual retirement annuities ("traditional
IRAs.)"
--------------------------------------------------------------------------------
The disclosure generally assumes that the TSA has 403(b) contract status or
qualifies as a 403(b) contract. Due to the Internal Revenue Service and
Treasury regulatory changes in 2007 which became fully effective on January 1,
2009, contracts issued prior to September 25, 2007 which qualified as 403(b)
contracts under the rules at the time of issue may lose their status as 403(b)
contracts or have the availability of transactions under the contract
restricted as of January 1, 2009 unless the individual's employer or the
individual take certain actions. Please consult your tax adviser regarding the
effect of these rules (which may vary depending on the owner's employment
status, plan participation status, and when and how the contract was acquired)
on your personal situation.
--------------------------------------------------------------------------------
FINAL REGULATIONS UNDER SECTION 403(B)
In 2007, the IRS and the Treasury Department published final Treasury
Regulations under Section 403(b) of the Code ("2007 Regulations"). As a result,
there are significant revisions to the establishment and operation of plans and
arrangements under Section 403(b) of the Code, and the contracts issued to fund
such plans. These rules became fully effective on January 1, 2009, but various
transition rules applied beginning in 2007. The 2007 Regulations raise a number
of questions as to the effect of the 2007 Regulations on TSAs issued prior to
the effective date of the 2007 Regulations. The IRS has issued guidance
intended to clarify some of these questions, and may issue further guidance in
future years.
PERMISSIBLE INVESTMENTS. The 2007 Regulations retain the rule that there are
generally two types of investments available to fund 403(b) plans -- an annuity
contract under Section 403(b)(1) of the Internal Revenue Code or a custodial
account that invests only in mutual funds and which is treated as an annuity
contract under Section 403(b)(7) of the Code. Both types of 403(b) funding
vehicles qualify for tax deferral.
EMPLOYER PLAN REQUIREMENT. The thrust of the 2007 Regulations is to eliminate
informal Section 403(b) arrangements with minimal or diffuse employer oversight
and to require employers purchasing annuity contracts for their employees under
Section 403(b) of the Code to conform to other tax-favored, employer-based
retirement plans with salary reduction contributions, such as Section 401(k)
plans and governmental employer Section 457(b) plans. The 2007 Regulations
require employers sponsoring 403(b) plans as of January 1, 2009, to have a
written plan designating administrative responsibilities for various functions
under the plan, and the plan in operation must conform to the plan terms. The
IRS has announced relief measures for failure to have a written plan finalized
by the beginning of 2009, as long as the written plan is adopted by December
31, 2009, and the plan operates in accordance with the 2007 Regulations
beginning by January 1, 2009.
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LIMITATIONS ON INDIVIDUAL INITIATED DIRECT TRANSFERS. The 2007 Regulations
revoke Revenue Ruling 90-24 (Rev. Rul. 90-24), effective January 1, 2009. Prior
to the 2007 Regulations, Rev. Rul. 90-24 had permitted individual-initiated,
tax-free direct transfers of funds from one 403(b) annuity contract to another,
without reportable taxable income to the individual. Under the 2007 Regulations
and other IRS published guidance, direct transfers made after September 24,
2007 may still be permitted with plan or employer approval as described below.
EFFECT OF THE 2007 REGULATIONS ON CONTRIBUTIONS TO THE ACCUMULATOR(R) PLUS(SM)
TSA CONTRACT
The Accumulator(R) Plus(SM) TSA contract was designed to be purchased through a
direct transfer of funds from one 403(b) plan to another, a contract exchange
under the same plan, or a rollover from another eligible retirement plan and
does not accept employer-remitted contributions. Contributions to an
Accumulator(R) Plus(SM) TSA contract are extremely limited as described below.
Contributions to an Accumulator(R) Plus(SM) TSA contract may only be made where
AXA Equitable is an "approved vendor" under an employer's 403(b) plan. That is,
some or all of the participants in the employer 403(b) plan are currently
contributing to a non-Accumulator AXA Equitable 403(b) annuity contract. AXA
Equitable and the employer must agree to share information with respect to the
Accumulator(R) Plus(SM) TSA contract and other funding vehicles under the plan.
AXA Equitable does not accept contributions of after-tax funds, including
designated Roth contributions to the Accumulator(R) Plus(SM) TSA contracts. We
will accept contributions of pre-tax funds only with documentation satisfactory
to us of employer or its designee or plan approval of the transaction.
CONTRIBUTIONS TO 403(B) ANNUITY CONTRACTS
Because the Accumulator(R) Plus(SM)TSA contract can be issued through a direct
plan-to-plan transfer or a contract exchange under the same plan, the
characterization of funds in the contract can remain the same as under the
prior contract. We provide the following discussion as part of our description
of restrictions on the distribution of funds directly transferred, which
include employer-remitted contributions to other 403(b) annuity contracts.
EMPLOYER-REMITTED CONTRIBUTIONS. Employer-remitted contributions to 403(b)
contracts made through the employer's payroll are subject to annual limits.
(Tax-free plan-to-plan direct transfer contributions from another 403(b) plan,
contract exchanges under the same plan, and rollover contributions from another
eligible retirement plan are not subject to these annual contribution limits.)
Commonly, some or all of the contributions made to a TSA contract are made
under a salary reduction agreement between the employee and the employer. These
contributions are called "salary reduction" or "elective deferral"
contributions. However, a TSA contract can also be wholly or partially funded
through non-elective employer contributions or after-tax employee
contributions. Amounts attributable to salary reduction contributions to TSA
contracts are generally subject to withdrawal restrictions. Also, all amounts
attributable to investments in a 403(b)(7) custodial account are subject to
withdrawal restrictions discussed below.
ROLLOVER AND DIRECT TRANSFER CONTRIBUTIONS. It is unlikely that rollover or
direct transfer contributions can be made for an individual no longer actively
participating in a 403(b) plan; however, there may be circumstances where an
individual must take a required minimum distribution from a distributing plan
or contract before rolling over or transferring the distribution to the
Accumulator(R) Plus(SM) contract. The amount of any rollover or direct transfer
contributions made to a 403(b) annuity contract must be net of the required
minimum distribution for the tax year in which the annuity contract is issued
if the owner is at least age 70-1/2 in the calendar year the contribution is
made, and has retired from service with the employer who sponsored the plan or
provided the funds to purchase the 403(b) annuity contract which is the source
of the contribution. For calendar year 2009 only, account-based required
minimum distribution withdrawals are suspended, so certain rollovers which
would be impermissible in other years may be made.
ROLLOVER CONTRIBUTIONS. After a TSA contract has been established with 403(b)
plan source funds, federal tax law permits rollover contributions to be made to
a TSA contract from these sources: qualified plans, governmental employer
457(b) plans and traditional IRAs, as well as other 403(b) plan funding
vehicles. The recipient 403(b) plan must allow such contributions to be made.
Generally, funds may be rolled over when a plan participant has a distributable
event from an eligible retirement plan as a result of:
o termination of employment with the employer who provided the funds for the
plan; or
o reaching age 59-1/2 even if still employed; or
o disability (special federal income tax definition).
If the source of the rollover contribution is pre-tax funds from a traditional
IRA, no specific event is required.
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 and subsequently take a premature distribution.
Further, in light of the restrictions on the ability to take distributions or
loans from a 403(b) annuity contract without plan or employer approval under
the 2007 Regulations, a plan participant should consider carefully whether to
roll an eligible rollover distribution (which is no longer subject to
distribution restrictions) to a 403(b) plan funding vehicle, or to a
traditional IRA instead.
If the recipient plan separately accounts for funds rolled over from another
eligible retirement plan, the IRS has ruled that an exception is
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available in certain situations to withdrawal restrictions that would otherwise
apply to the rollover contribution funds in the recipient plan.
Because AXA Equitable does not separately account for rollover contributions
from other eligible retirement plans in the Accumulator(R) PlusSM TSA Contract,
amounts that would be free of distribution restrictions in a traditional IRA,
for example, are subject to distribution restrictions in the Accumulator(R)
Plus(SM) TSA Contract.
DIRECT TRANSFER CONTRIBUTIONS. A tax-free direct transfer occurs when changing
the 403(b) plan funding vehicle, even if there is no distributable event. Under
a direct transfer a plan participant does not receive a distribution.
The 2007 Regulations provide for two types of direct transfers between 403(b)
funding vehicles: "plan-to-plan transfers" and "contract exchanges within the
same 403(b) plan." 403(b) plans do not have to offer these options. A
"plan-to-plan transfer" must meet the following conditions: (i) both the source
403(b) plan and the recipient 403(b) plan permit plan-to-plan transfers; (ii)
the transfer from one 403(b) plan to another 403(b) plan is made for a
participant (or beneficiary of a deceased participant) who is an employee or
former employee of the employer sponsoring the recipient 403(b) plan; (iii)
immediately after the transfer the accumulated benefit of the participant (or
beneficiary) whose assets are being transferred is at least equal to the
participant's (or beneficiary's) accumulated benefit immediately before the
transfer; (iv) the recipient 403(b) plan imposes distribution restrictions on
transferred amounts at least as stringent as those imposed under the source
403(b) plan; and (v) if the plan-to-plan transfer is not a complete transfer of
the participant's (or beneficiary's) interest in the source 403(b) plan, the
recipient 403(b) plan treats the amount transferred as a continuation of a pro
rata portion of the participant's (or beneficiary's) interest in the source
403(b) plan (for example, with respect to the participant's interest in any
after-tax employee contributions).
A "contract exchange within the same 403(b) plan" must meet the following
conditions: (i) the 403(b) plan under which the contract is issued must permit
contract exchanges; (ii) immediately after the exchange, the accumulated
benefit of the participant (or beneficiary of a deceased participant) is at
least equal to the participant's (or beneficiary's) accumulated benefit
immediately before the exchange (taking into account the accumulated benefit of
that participant (or beneficiary) under both section 403(b) annuity contracts
immediately before the exchange); (iii) the contract issued in the exchange is
subject to distribution restrictions with respect to the participant that are
not less stringent than those imposed on the contract being exchanged; and (iv)
the employer sponsoring the 403(b) plan and the issuer of the contract issued
in the exchange agree to provide each other with specified information from
time to time in the future ("an information sharing agreement"). The shared
information is designed to preserve the requirements of Section 403(b),
primarily to comply with loan requirements, hardship withdrawal rules, and
distribution restrictions.
Distributions from TSAs
GENERAL. Generally, after the 2007 Regulations, employer or plan administrator
consent is required for loan, withdrawal or distribution transactions under a
403(b) annuity contract. Processing of a requested transaction will not be
completed until the information required to process the transaction is received
from the employer or its designee. This information will be transmitted as a
result of an information sharing agreement between AXA Equitable and the
employer sponsoring the plan.
WITHDRAWAL RESTRICTIONS. AXA Equitable treats all amounts under an
Accumulator(R) Plus(SM) Rollover TSA contract as not eligible for withdrawal
until:
o the owner is severed from employment with the employer who provided the funds
used to purchase the TSA contract;
o the owner dies; or
o the plan under which the Accumulator(R) Plus(SM) TSA contract is purchased is
terminated.
TAX TREATMENT OF DISTRIBUTIONS. Amounts held under TSA contracts are generally
not subject to federal income tax until benefits are distributed. Distributions
include withdrawals from your TSA contract and annuity payments from your TSA
contract. Death benefits paid to a beneficiary are also taxable distributions.
Unless an exception applies, amounts distributed from TSA contracts are
includible in gross income as ordinary income. Distributions from TSA contracts
may be subject to 20% federal income tax withholding. See "Federal and state
income tax withholding and information reporting" later in this section. In
addition, TSA contract distributions may be subject to additional tax
penalties.
If you have made after-tax contributions, you will have a tax basis in your TSA
contract, which will be recovered tax-free. Since AXA Equitable does not accept
after-tax funds to Accumulator(R) Plus(SM) Rollover TSA contract, we do not
track your investment in the TSA contract, if any. We will report all
distributions from this Rollover TSA contract as fully taxable. You will have
to determine how much of the distribution is taxable.
DISTRIBUTIONS BEFORE ANNUITY PAYMENTS BEGIN. On a total surrender, the amount
received in excess of the investment in the contract is taxable. The amount of
any partial distribution from a TSA contract prior to the annuity starting date
is generally taxable, except to the extent that the distribution is treated as
a withdrawal of after-tax contributions. Distributions are normally treated as
pro rata withdrawals of any after-tax contributions and earnings on those
contributions.
ANNUITY PAYMENTS. Annuitization payments that are based on life or life
expectancy are considered annuity payments for income tax purposes. We include
in annuitization payments GMIB payments, Guaranteed withdrawal benefit for life
Maturity date annuity payments, and other annuitization payments available
under your contract. We also include Guaranteed annual withdrawals that are
continued after your account value goes to zero under a supplementary life
annuity contract, as discussed under "Guaranteed withdrawal benefit for life
("GWBL")" in "Contract features and benefits" earlier in this Prospectus. If
you elect an annuity payout option, you will recover any investment in the TSA
contract as each payment is received by dividing the investment in the TSA
contract by an expected return determined under an IRS table prescribed for
qualified annuities. The amount of each payment not excluded from income under
this exclu-
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sion ratio is fully taxable. The full amount of the payments received after
your investment in the TSA contract is recovered is fully taxable. If you (and
your beneficiary under a joint and survivor annuity) die before recovering the
full investment in the TSA contract, a deduction is allowed on your (or your
beneficiary's) final tax return.
PAYMENTS TO A BENEFICIARY AFTER YOUR DEATH. Death benefit distributions from a
TSA contract generally receive the same tax treatment as distributions during
your lifetime. In some instances, distributions from a TSA contract made to
your surviving spouse may be rolled over to a traditional IRA or other eligible
retirement plan. A surviving spouse might also be eligible to directly roll
over a TSA contract death benefit to a Roth IRA in a taxable conversion
rollover. A non-spousal death beneficiary may be able to directly roll over
death benefits to a new inherited IRA under certain circumstances. The
Accumulator(R) Plus(SM)IRA contract is not available for purchase by a
non-spousal death beneficiary direct rollover.
EFFECT OF 2007 REGULATIONS ON LOANS FROM TSAS
As a result of the 2007 Regulations, loans are not available without employer
or plan administrator approval. If loans are available, loan processing may be
delayed pending receipt of information required to process the loan under an
information sharing agreement. The processing of a loan request will not be
completed until the information required to process the transaction is received
from the employer or its designee. This information will be transmitted as a
result of an information sharing agreement between AXA Equitable and the
employer sponsoring the plan.
If loans are available:
Loans are generally not treated as a taxable distribution. If the amount of the
loan exceeds permissible limits under federal income tax rules when made, the
amount of the excess is treated (solely for tax purposes) as a taxable
distribution. Additionally, if the loan is not repaid at least quarterly,
amortizing (paying down) interest and principal, the amount not repaid when due
will be treated as a taxable distribution. The entire unpaid balance of the
loan is includable in income in the year of the default.
TSA loans are subject to federal income tax limits and may also be subject to
the limits of the plan from which the funds came. Federal income tax rule
requirements apply even if the plan is not subject to ERISA. For example, loans
offered under TSA contracts are subject to the following conditions:
o The amount of a loan to a participant, when combined with all other loans to
the participant from all qualified plans of the employer, cannot exceed
the lesser of:
(1) the greater of $10,000 or 50% of the participant's nonforfeitable
accrued benefits; and
(2) $50,000 reduced by the excess (if any) of the highest outstanding
loan balance over the previous 12 months over the outstanding loan
balance of plan loans on the date the loan was made.
o In general, the term of the loan cannot exceed five years unless the loan is
used to acquire the participant's primary residence. Accumulator(R)
Plus(SM) Rollover TSA contracts have a term limit of ten years for loans
used to acquire the participant's primary residence.
o All principal and interest must be amortized in substantially level payments
over the term of the loan, with payments being made at least quarterly. In
very limited circumstances, the repayment obligation may be temporarily
suspended during a leave of absence.
The amount borrowed and not repaid may be treated as a distribution if:
o the loan does not qualify under the conditions above;
o the participant fails to repay the interest or principal when due; or
o in some instances, the participant separates from service with the employer
who provided the funds or the plan is terminated.
In this case, the participant may have to include the unpaid amount due as
ordinary income. In addition, the 10% early distribution penalty tax may apply.
The amount of the unpaid loan balance is reported to the IRS on Form 1099-R as
a distribution. For purposes of calculating any subsequent loans which may be
made under any plan of the same employer, a defaulted loan which has not been
fully repaid is treated as still outstanding, even after the default is
reported to the IRS on Form 1099-R. The amount treated as still outstanding
(which limits subsequent loans) includes interest accruing on the unpaid
balance.
TAX-DEFERRED ROLLOVERS AND FUNDING VEHICLE TRANSFERS. You may roll over an
"eligible rollover distribution" from a 403(b) annuity contract into another
eligible retirement plan which agrees to accept the rollover. The rollover may
be a direct rollover or one you do yourself within 60 days after you receive
the distribution. To the extent rolled over, a distribution remains
tax-deferred.
You may roll over a distribution from a 403(b) annuity contract to any of the
following: another 403(b) plan funding vehicle, a qualified plan, a
governmental employer 457(b) plan (separate accounting required) or a
traditional IRA. A spousal beneficiary may also roll over death benefits as
above. A non-spousal death beneficiary may be able to directly roll over death
benefits to a new inherited IRA under certain circumstances. The Accumulator(R)
Plus(SM)IRA contract is not available for purchase by a non-spousal death
beneficiary direct rollover.
Distributions from a 403(b) annuity contract can be rolled over to a Roth IRA.
Such conversion rollover transactions are taxable. Any taxable portion of the
amount rolled over will be taxed at the time of the rollover. Rollovers are
subject to the Roth IRA conversion rules, which, prior to 2010, restrict
conversions of traditional IRAs to Roth IRAs to taxpayers with adjusted gross
income of no more than $100,000, whether single or married filing jointly.
The taxable portion of most distributions will be eligible for rollover, except
as specifically excluded under federal income tax rules. Distributions that you
cannot roll over generally include periodic payments for life or for a period
of 10 years or more, hardship withdrawals and required minimum distributions
under federal income tax rules. Suspension of account-based required minimum
distribution withdrawals for calendar year 2009 temporarily permits
distributions which would
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be ineligible lifetime required minimum distributions in any other year to be
rolled over to another eligible retirement plan in calendar year 2009.
Direct transfers from one 403(b) annuity contract to another (whether under a
plan-to-plan transfer, contract exchange under the same 403(b) plan, or under
Rev. Rul. 90-24 prior to the 2007 Regulations), are not distributions.
REQUIRED MINIMUM DISTRIBUTIONS
Please note the temporary suspension of account-based required minimum
distribution withdrawals, both lifetime and post-death, in calendar year 2009.
Generally the same as traditional IRA with these differences:
WHEN YOU HAVE TO TAKE THE FIRST REQUIRED MINIMUM DISTRIBUTION.
The minimum distribution rules force 403(b) plan participants to start
Ecalculating and taking annual distributions from their 403(b) annuity
contracts by a required date. Generally, you must take the first required
minimum distribution for the calendar year in which you turn age 70-1/2. You may
be able to delay the start of required minimum distributions for all or part of
your account balance until after age 70-1/2, as follows:
o For 403(b) plan participants who have not retired from service with the
employer maintaining the 403(b) plan by the calendar year the participant
turns age 70-1/2, the required beginning date for minimum distributions is
extended to April 1 following the calendar year of retirement.
o 403(b) plan participants may also delay the start of required minimum
distributions to age 75 for the portion of their account value
attributable to their December 31, 1986 TSA contract account balance, even
if retired at age 70-1/2. We will know whether or not you qualify for this
exception because it only applies to individuals who established their
Accumulator(R) Plus(SM) Rollover TSA contract by direct Revenue Ruling
90-24 transfer prior to September 25, 2007, or by a contract exchange or a
plan-to-plan exchange approved under the employer's plan after that date.
If you do not give us the amount of your December 31, 1986, account
balance that is being transferred to the Accumulator(R) Plus(SM) Rollover
TSA contract on the form used to establish the TSA contract, you do not
qualify.
SPOUSAL CONSENT RULES
Your employer will tell us on the form used to establish the TSA contract
whether or not you need to get spousal consent for loans, withdrawals or other
distributions. If you do, you will need such consent if you are married when
you request a withdrawal under the TSA contract. In addition, unless you elect
otherwise with the written consent of your spouse, the retirement benefits
payable under the plan must be paid in the form of a qualified joint and
survivor annuity. A qualified joint and survivor annuity is payable for the
life of the annuitant with a survivor annuity for the life of the spouse in an
amount not less than one-half of the amount payable to the annuitant during his
or her lifetime. In addition, if you are married, the beneficiary must be your
spouse, unless your spouse consents in writing to the designation of another
beneficiary.
If you are married and you die before annuity payments have begun, payments
will be made to your surviving spouse in the form of a life annuity unless at
the time of your death a contrary election was in effect. However, your
surviving spouse may elect, before payments begin, to receive payments in any
form permitted under the terms of the TSA contract and the plan of the employer
who provided the funds for the TSA contract.
EARLY DISTRIBUTION PENALTY TAX
A penalty tax of 10% of the taxable portion of a distribution applies to
distributions from a TSA contract before you reach age 59-1/2. This is in
addition to any income tax. There are exceptions to the extra penalty tax. Some
of the available exceptions to the pre-age 59-1/2 penalty tax include
distributions made:
o on or after your death; or
o because you are disabled (special federal income tax definition); or
o to pay for certain extraordinary medical expenses (special federal income tax
definition); or
o in any form of payout after you have separated from service (only if the
separation occurs during or after the calendar year you reach age 55); or
o in a payout 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 (only after you have separated from service
at any age).
FEDERAL AND STATE INCOME TAX WITHHOLDING AND INFORMATION REPORTING
We must withhold federal income tax from distributions from annuity contracts.
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:
o We might have to withhold and/or report on amounts we pay under a free look
or cancellation.
o We are generally required to withhold on conversion rollovers of traditional
IRAs to Roth IRAs, as it is considered a withdrawal from the traditional IRA
and is taxable.
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o 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. You can elect out
of withholding as described below.
Special withholding rules apply to foreign recipients and United States
citizens residing outside the United States. We do not discuss these rules here
in detail. However we may require additional documentation in the case of
payments made to non United States persons and United States persons living
abroad 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. 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.
Based on the assumption that an annuity contract owner is married and claiming
three withholding exemptions, periodic annuity payments totaling less than
$19,200 in 2009 will generally be exempt from federal income tax withholding.
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 or
TSA. If a non-periodic distribution from a qualified plan or TSA is not an
eligible rollover distribution then election out is permitted. If there is no
election out, the 10% withholding rate applies.
MANDATORY WITHHOLDING FROM TSA AND QUALIFIED PLAN DISTRIBUTIONS
Unless the distribution is directly rolled over to another eligible retirement
plan, eligible rollover distributions from qualified plans and TSAs are subject
to mandatory 20% withholding. The plan administrator is responsible for
withholding from qualified plan distributions. All distributions from a TSA or
qualified plan are eligible rollover distributions unless they are on the
following list of exceptions:
o any distributions which are required minimum distributions after age 70-1/2 or
retirement from service with the employer; or
o substantially equal periodic payments made at least annually for the life (or
life expectancy) or the joint lives (or joint life expectancies) of the plan
participant (and designated beneficiary); or
o substantially equal periodic payments made for a specified period of 10 years
or more; or
o hardship withdrawals; or
o corrective distributions that fit specified technical tax rules; or
o loans that are treated as distributions; or
o a death benefit payment to a beneficiary who is not the plan participant's
surviving spouse; or
o a qualified domestic relations order distribution to a beneficiary who is not
the plan participant's current spouse or former spouse.
A death benefit payment to the plan participant's surviving spouse, or a
qualified domestic relations order distribution to the plan participant's
current or former spouse may be a distribution subject to mandatory 20%
withholding.
SPECIAL RULES FOR CONTRACTS FUNDING QUALIFIED PLANS
The trustee 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.
IMPACT OF TAXES TO AXA EQUITABLE
The contracts provide that we may charge Separate Account No. 49 for taxes. We
do not now, but may in the future set up reserves for such taxes.
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ABOUT SEPARATE ACCOUNT NO. 49
Each variable investment option is a subaccount of Separate Account No. 49. We
established Separate Account No. 49 in 1996 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. 49 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. 49 that represent our investments in Separate Account No. 49 or that
represent fees and charges under the contracts that we have earned. Also, we
may, at our sole discretion, invest Separate Account No. 49 assets in any
investment permitted by applicable law. The results of the Separate Account'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. 49. However, the obligations themselves
are obligations of AXA Equitable.
Separate Account No. 49 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. 49. Although Separate Account No. 49 is registered, the SEC does
not monitor the activity of Separate Account No. 49 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. 49
invests solely in class IB/B shares issued by the corresponding Portfolio of
its Trust.
We reserve the right subject to compliance with laws that apply:
(1) to add variable investment options to, or to remove variable investment
options from Separate Account No. 49, 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. 49 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.
49 or a variable investment option directly);
(5) to deregister Separate Account No. 49 under the Investment Company Act of
1940;
(6) to restrict or eliminate any voting rights as to Separate Account No. 49;
and
(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.
If the exercise of these rights results in a material change in the underlying
investment of Separate Account No. 49, you will be notified of such exercise,
as required by law.
Any change in the contract must be in writing and made by our authorized
officer. We will provide notice of any contract change.
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 may establish
additional Portfolios or eliminate existing Portfolios at any time. More
detailed information about each Trust, its 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
Our 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. For more information about AXA Equitable's financial
strength, you may review its financial statements and/or check its current
rating with one or more of the independent sources that rate insurance
companies for their financial strength and stability. Such ratings are subject
to change and have no bearing on the performance of the variable investment
options. You may also speak with your financial representative.
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.
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We have been advised that the staff of the SEC has not reviewed the portions of
this prospectus that relate to the general account. The disclosure with regard
to the general account, however, may be subject to certain provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
ABOUT OTHER METHODS OF PAYMENT
WIRE TRANSMITTALS AND ELECTRONIC APPLICATIONS
We accept initial and subsequent contributions sent by wire to our processing
office by agreement with certain broker-dealers. Such transmittals must be
accompanied by information we require to allocate your contribution. Wire
orders not accompanied by complete information may be retained as described
under "How you can make your contributions" under "Contract features and
benefits" earlier in this Prospectus.
Even if we accept the wire order and essential information, a contract
generally will not be issued until we receive and accept a properly completed
application. In certain cases we may issue a contract based on information
provided through certain broker-dealers with which we have established
electronic facilities. In any such cases, you must sign our Acknowledgement of
Receipt form.
Where we require a signed application, the above procedures do not apply and no
financial transactions will be permitted until we receive the signed
application and have issued the contract. Where we issue a contract based on
information provided through electronic facilities, we require an
Acknowledgement of Receipt form, and financial transactions are only permitted
if you request them in writing, sign the request and have it signature
guaranteed, until we receive the signed Acknowledgement of Receipt form. After
your contract has been issued, additional contributions may be transmitted by
wire.
In general, the transaction date for electronic transmissions is the date on
which we receive at our regular processing office all required information and
the funds due for your contribution. We may also establish same-day electronic
processing facilities with a broker-dealer that has undertaken to pay
contribution amounts on behalf of its customers. In such cases, the transaction
date for properly processed orders is the business day on which the
broker-dealer inputs all required information into its electronic processing
system. You can contact us to find out more about such arrangements.
After your contract has been issued, additional contributions may be
transmitted by wire.
DATES AND PRICES AT WHICH CONTRACT EVENTS OCCUR
We describe below the general rules for when, and at what prices, events under
your contract will occur. Other portions of this Prospectus describe
circumstances that may cause exceptions. We generally do not repeat those
exceptions below.
BUSINESS DAY
Our "business day" is generally any day the New York Stock Exchange ("NYSE") is
open for regular trading and generally ends at 4:00 p.m. Eastern Time (or as of
an earlier close of regular trading). A business day does not include a day on
which we are not open due to emergency conditions determined by the Securities
and Exchange Commission. We may also close early due to such emergency
conditions. Contributions will be applied and any other transaction requests
will be processed when they are received along with all the required
information unless another date applies as indicated below.
o 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.
o A loan request under your Rollover TSA contract will be processed on the first
business day of the month following the date on which the properly completed
loan request form is received.
o 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.
o 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.
o If we have entered into an agreement with your broker-dealer for automated
processing of contributions upon receipt of customer order, your contribution
will be considered received at the time your broker-dealer receives your
contribution 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. Such arrangements may apply to initial
contributions, subsequent contributions, or both, 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
o Contributions and credits allocated to the variable investment options are
invested at the unit value next determined after the receipt of the
contribution.
o Contributions and credits allocated to the guaranteed interest option will
receive the crediting rate in effect on that business day for the specified
time period.
o Transfers to or from variable investment options will be made at the unit
value next determined after receipt of the transfer request.
o Transfers to the guaranteed interest option will receive the crediting rate
in effect on that business day for the specified time period.
o 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.
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ABOUT YOUR VOTING RIGHTS
As the owner of the shares of the Trusts we have the right to vote on certain
matters involving the Portfolios, such as:
o the election of trustees;
o the formal approval of independent public accounting firms selected for each
Trust; or
o 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.
The Trusts sell their shares to AXA Equitable separate accounts in connection
with AXA Equitable's variable annuity and/or 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. 49 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.
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. 49, 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. 49, 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
written notification of any change at our processing office.
If the Guaranteed minimum death benefit, Guaranteed minimum income benefit, the
Earnings enhancement benefit, and/or the Guaranteed withdrawal benefit for life
("Benefit") is in effect, generally the Benefit will automatically terminate if
you change ownership of the contract or if you assign the owner's right to
change the beneficiary or person to whom annuity payments will be made. The
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. The Benefit 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; the Benefit will continue to be based on your
life. If you were not the annuitant under the individually-owned contract, you
will become the annuitant under the new contract. Please speak with your
financial professional for further information.
See Appendix VI later in this Prospectus for any state variations with regard
to terminating any benefits under your contract.
You cannot assign or transfer ownership of a traditional IRA, Roth IRA, QP or
Rollover TSA contract except by surrender to us. If your individual retirement
annuity contract is held in your custodial individual
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retirement account, you may only assign or transfer ownership of such an IRA
contract to yourself. Loans are not available and you cannot assign traditional
IRA, Roth IRA and QP contracts as security for a loan or other obligation.
Loans are available under a Rollover TSA contract only if permitted under the
sponsoring employer's plan.
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 Rollover IRA, Roth IRA, QP
or Rollover TSA contract to another similar arrangement under federal income
tax rules. In the case of such a transfer, 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 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, and any such assignment must be made prior to the
first contract date anniversary. 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, all withdrawals, distributions and benefit payments, as well as the
exercise of any benefits, are subject to the assignee's prior approval and
payment directions. We will follow such directions until AXA Equitable receives
written notification satisfactory to us that the assignment has been
terminated. If the owner or beneficiary fails to provide timely notification of
the termination, it is possible that we could pay the assignee more than the
amount of the assignment, or continue paying the assignee pursuant to existing
directions after the collateral assignment has in fact been terminated. Our
payment of any death benefit to the beneficiary will also be subject to the
terms of the assignment until we receive written notification satisfactory to
us that the assignment has been terminated.
In some cases, an assignment or change of ownership may have adverse tax
consequences. See "Tax information" earlier in this Prospectus.
ABOUT CUSTODIAL IRAS
For certain custodial IRA accounts, after your contract has been issued, we may
accept transfer instructions by telephone, mail, facsimile or electronically
from a broker-dealer, provided that we or your broker-dealer have your written
authorization to do so on file. Accordingly, AXA Equitable will rely on the
stated identity of the person placing instructions as authorized to do so on
your behalf. AXA Equitable will not be liable for any claim, loss, liability or
expenses that may arise out of such instructions. AXA Equitable will continue
to rely on this authorization until it receives your written notification at
its processing office that you have withdrawn this authorization. AXA Equitable
may change or terminate telephone or electronic or overnight mail transfer
procedures at any time without prior written notice and restrict facsimile,
internet, telephone and other electronic transfer services because of
disruptive transfer activity.
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. 49. 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 ("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 both
affiliated and 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.
Compensation paid to AXA Advisors is based on contributions made on the
contracts sold through AXA Advisors ("contribution-based compensation") and
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 on the sale of a contract to the AXA Advisors financial professional
and/or Selling broker-dealer making the sale. In some instances, a financial
professional or Selling broker-dealer may elect to receive reduced
contribution-based compensation on a contract in combination with ongoing
annual compensation of up to 0.60% of the 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 contribution-based and asset-based compensation paid by AXA Advisors
varies among financial professionals and among Selling broker-dealers.
Contribution-based compensation paid by AXA Equitable to AXA Distributors on
sales of AXA Equitable contracts by its Selling broker-dealers will generally
not exceed 6.75% 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 a contract in combination with
annual asset-based compensation of up to 1.25% of contract 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
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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. AXA Distributors also
receives compensation and reimbursement for its marketing services under the
terms of its distribution agreement with AXA Equitable.
The Distributors may pay certain affiliated and/or unaffiliated Selling
broker-dealers and other financial intermediaries additional compensation in
recognition of certain expenses that may be incurred by them or on their
behalf. The Distributors may also pay certain 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 and/or Accumulator(R) Plus(SM) 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; conferences; and\or other support services, including
some that may benefit the contract owner. Payments may be based on the amount
of assets or purchase payments attributable to contracts sold through a Selling
broker-dealer or such payments may be a fixed amount. The Distributors may also
make fixed payments to Selling broker-dealers in connection with the initiation
of a new relationship or the introduction of a new product. These payments may
serve as an incentive for Selling broker-dealers to promote the sale of
particular products. Additionally, as an incentive for 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"). Marketing allowances and sales incentives are made out of the
Distributors' assets. Not all Selling broker-dealers receive these kinds of
payments. For more information about any such arrangements, ask your financial
professional.
The Distributors receive 12b-1 fees from certain portfolios for providing
certain distribution and/or shareholder support services. The Distributors or
their affiliates may also receive payments from the advisers of the portfolios
or their affiliates to help defray expenses for sales meetings or seminar
sponsorships that may relate to the contracts and/or the advisers' respective
portfolios.
In an effort to promote the sale of our products, AXA Advisors may provide its
financial professionals and managerial personnel with a higher percentage of
sales commissions and/or cash compensation for the sale of an affiliated
variable product than it would the sale of an unaffiliated product. Such
practice is known as providing "differential compensation." In addition,
managerial personnel may receive expense reimbursements, marketing allowances
and commission-based payments known as "overrides." Certain components of the
compensation of financial professionals who are managers are based on the sale
of affiliated variable products. Managers earn higher compensation (and credits
toward awards and bonuses) if those they manage sell more affiliated variable
products. AXA Advisors may provide other forms of compensation to its financial
professionals, including health and retirement benefits. For tax reasons, AXA
Advisors financial professionals qualify for health and retirement benefits
based solely on their sales of our affiliated products.
These payments and differential compensation (together, the "payments") can
vary in amount based on the applicable product and/or entity or individual
involved. As with any incentive, such payments may cause the financial
professional to show preference in recommending the purchase or sale of AXA
Equitable products. However, under applicable rules of the FINRA, AXA Advisors
may only recommend to you products that they reasonably believe are suitable
for you based on 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.
In addition, AXA Advisors may offer sales incentive programs to financial
professionals who meet specified production levels for the sale of both
affiliated and unaffiliated products which provide non-cash compensation such
as stock options awards and/or stock appreciation rights, expense-paid trips,
expense-paid educational seminars and merchandise.
Although AXA Equitable takes all of its costs into account in establishing the
level of fees and expenses in its products, any contribution-based and
asset-based compensation paid by AXA Equitable to the Distributors will not
result in any separate charge to you under your contract. All payments made
will be in compliance with all applicable FINRA rules and other laws and
regulations.
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Appendix I: Condensed financial information
--------------------------------------------------------------------------------
The unit values and number of units outstanding shown below are for contracts
offered under Separate Account No. 49 with the same daily asset charges of
1.55%.
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 AT
THE DAILY ASSET CHARGE OF 1.55% AFTER DECEMBER 31, 2008
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For the years ending December 31,
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2007 2006 2005 2004 2003 2002 2001 2000
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[Table to be added]
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Appendix I: Condensed financial information A-1
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Appendix II: Purchase considerations for QP contracts
--------------------------------------------------------------------------------
Trustees who are considering the purchase of an Accumulator(R) Plus(SM) QP
contract should discuss with their tax advisers 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 distribution of such an annuity, the purchase of the Guaranteed minimum
income benefit and other guaranteed benefits, and the payment of death benefits
in accordance with the requirements of the federal income tax rules. The QP
contract and this Prospectus should be reviewed in full, and the following
factors, among others, should be noted. 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 Accumulator(R)
Plus(SM) QP contract or another annuity contract. Therefore, you should
purchase an Accumulator(R) Plus(SM) QP contract to fund a plan for the
contract's features and benefits other than tax deferral, after considering the
relative costs and benefits of annuity contracts and other types of
arrangements and funding vehicles.
This QP contract accepts only transfer contributions from other investments
within an existing qualified plan trust. We will not accept ongoing payroll
contributions or contributions directly from the employer. 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 trustee will not be
accepted. Only one additional transfer contribution may be made per contract
year. The maximum aggregate contributions for any contract year is 100% of
first-year contributions. 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 adjustment for an optional benefit. If
in a defined benefit plan, the plan's actuary determines that an overfunding in
the QP contract has occurred, then any transfers of plan assets out of the QP
contract may also result in withdrawal charges or benefit base adjustments on
the amount being transferred.
In order to purchase the QP contract for a defined benefit plan, the plan's
actuary will be required to determine a current dollar value of each plan
participant's accrued benefit so that individual contracts may be established
for each plan participant. We do not permit defined contribution or defined
benefit plans to pool plan assets attributable to the accrued benefits of
multiple plan participants.
For defined benefit plans, the maximum percentage of actuarial value of the
plan participant's normal retirement benefit that can be funded by a QP
contract is 80%. The account value under a QP contract may at any time be more
or less than the lump sum actuarial equivalent of the accrued benefit for a
defined benefit plan participant. AXA Equitable does not guarantee that the
account value under a QP contract will at any time equal the actuarial value of
80% of a participant/employee's accrued benefit.
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.
Given that required minimum distributions must generally commence from the plan
for annuitants after age 70-1/2, trustees should consider:
o whether required minimum distributions under QP contracts would cause
withdrawals in excess of 4% of the Guaranteed minimum income benefit Roll-Up
benefit base;
o that provisions in the Treasury Regulations on required minimum distributions
require that the actuarial present value of additional annuity contract
benefits be added to the dollar amount credited for purposes of calculating
required minimum distributions. This could increase the amounts required to
be distributed; and
o that if the Guaranteed minimum income benefit is automatically exercised as a
result of the no lapse guarantee, the payments will be made to the trustee.
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.
B-1 Appendix II: Purchase considerations for QP contracts
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Appendix III: Enhanced death benefit example
--------------------------------------------------------------------------------
The death benefit under the contracts is equal to the account value or, if
greater, the enhanced death benefit if elected.
The following illustrates the enhanced death benefit calculation. Assuming
$100,000 is allocated to the variable investment options (with no allocation to
the EQ/Money Market or the guaranteed interest option), no additional
contributions, no transfers, no withdrawals and no loans under a Rollover TSA
contract, the enhanced death benefit for an owner age 45 would be calculated as
follows:
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End of Contract 4% Roll-Up to 4% Roll-Up to Annual Ratchet to age 80
Year Account Value age 80 benefit base age 80 benefit base benefit base
------------------------------------------------------------------------------------------------------------------------------------
1 $109,200 $ 109,200(1)
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2 $120,120 $ 120,120(1)
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3 $134,534 $ 134,534(1)
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4 $107,628 $ 134,534(2)
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5 $118,390 $ 134,534(2)
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6 $132,597 $ 134,534(2)
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7 $132,597 $ 134,534(2)
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The account values for contract years 1 through 7 are based on hypothetical
rates of return of 5.00%, 10.00%, 12.00%, (20.00)%, 10.00%, 12.00% and 0.00%.
We are using these rates solely to illustrate how the benefit is determined.
The return rates bear no relationship to past or future investment results.
ANNUAL RATCHET TO AGE 80
(1) At the end of contract years 1 through 3, the Annual Ratchet to age 80
enhanced death benefit is equal to the current account value.
(2) At the end of contract years 4 through 7, the death benefit is equal to the
Annual Ratchet to age 80 enhanced death benefit at the end of the prior
year since it is higher than the current account value.
GREATER OF 4% ROLL-UP TO AGE 80 OR ANNUAL RATCHET TO AGE 80 FOR "GREATER OF"
GMDB I OR "GREATER OF" GMDB II ENHANCED DEATH BENEFIT
The enhanced death benefit under this option for each year shown would be the
greater of the amounts shown under 4% Roll-Up to age 80 or the Annual Ratchet
to age 80.
(3) At the end of contract years 1 through 5, the enhanced death benefit will
be based on the Annual Ratchet to age 80.
(4) At the end of contract years 6 and 7, the enhanced death benefit will be
based on 4% Roll-Up to age 80.
Appendix III: Enhanced death benefit example C-1
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Appendix IV: Hypothetical Illustrations
--------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED MINIMUM
BENEFITS
The following tables illustrate the changes in account value, cash value and
the values of the "Greater of" GMDB II enhanced death benefit, the Earnings
enhancement benefit and the Guaranteed minimum income benefit, including the
conversion to the Guaranteed withdrawal benefit for life at age 80, under
certain hypothetical circumstances for an Accumulator(R) Plus(SM) contract. The
table illustrates the operation of a contract based on a male, issue age 60,
who makes a single $100,000 contribution and takes no withdrawals. The amounts
shown are for the beginning of each contract year and assume that all of the
account value is 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 (2.66)% and 3.34% for the Accumulator(R) Plus(SM) contract,
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 account value annually for the enhanced
death benefit, the Earnings enhancement benefit, the Guaranteed minimum income
benefit and Guaranteed withdrawal benefit for life 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 4% Roll-Up to age 80 or Annual Ratchet to age 80"
enhanced death benefit charge, the Earnings enhancement benefit charge, the
Guaranteed minimum income benefit charge and any applicable administrative
charge and withdrawal charge. The values shown under "Lifetime annual
guaranteed minimum income benefit" for ages 80 and under reflect the lifetime
income that would be guaranteed if the Guaranteed minimum income benefit is
selected at that contract date anniversary. An "N/A" in these columns indicates
that the benefit is not exercisable in that year. A "0" under any of the death
benefit and/or "Lifetime annual guaranteed minimum income benefit" columns
indicates that the contract has terminated due to insufficient account value.
However, the Guaranteed minimum income benefit has been automatically
exercised, and the owner is receiving lifetime payments.
The values shown under "GWBL Benefit Base" reflect the amount used in
calculating the amount payable under the Guaranteed withdrawal benefit for
life, and the values shown under "Guaranteed Annual Withdrawal Amount" reflect
the amount that an owner would be able to withdraw each year for life based on
that benefit base, if the owner began taking withdrawals in that contract year.
An "N/A" in these columns indicates that the benefit is not exercisable in that
year. A "0" under any of the death benefit, "GWBL benefit" and/or "Guaranteed
Annual Withdrawal Amount" columns, for ages 80 and above, indicates that the
contract has terminated due to insufficient account value. As the Guaranteed
Annual Withdrawal Amount in those years is $0, the owner would receive no
further 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 0.57%, and (2) an assumed
average asset charge for all other expenses of the underlying portfolios
equivalent to an effective annual rate of 0.30% and (3) 12b-1 fees equivalent
to an effective annual rate of 0.25%. These rates are the arithmetic average
for all Portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the variable investment options. The actual rates associated with
any contract will vary depending upon the actual allocation of 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 footnotes to the fee table for the underlying portfolios in
"Fee table" earlier in this Prospectus. With these 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.
D-1 Appendix IV: Hypothetical Illustrations
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Variable deferred annuity
Accumulator(R) Plus(SM)
$100,000 Single contribution and no withdrawals
Male, issue age 60
Benefits:
Greater of 4% Roll-Up to age 80 or Annual Ratchet to age 80 Guaranteed
minimum death benefit
Earnings enhancement benefit
Guaranteed minimum income benefit II - Custom Selection, including the
conversion to the Guaranteed withdrawal benefit for life at age 80,
Greater of 4%
Roll-Up to age Lifetime Annual
80 or the Annual Guaranteed Minimum Income Benefit
Ratchet to age -----------------------------------
80 Guaranteed Total Death Benefit
Minimum Death with the Earnings Guaranteed Hypothetical
Account Value Cash Value Benefit enhancement benefit Income Income
Contract ------------------- ------------------ ------------------- ------------------- ----------------- -----------------
Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
----- --------- --------- --------- -------- --------- --------- --------- --------- --------- -------- -------- -------- --------
60 1 104,000 104,000 96,000 96,000 100,000 100,000 100,000 100,000 N/A N/A N/A N/A
61 2 98,794 104,993 90,794 96,993 104,000 104,993 105,600 106,990 N/A N/A N/A N/A
62 3 93,662 105,951 86,662 98,951 108,160 108,160 111,424 111,424 N/A N/A N/A N/A
63 4 88,597 106,852 81,597 99,852 112,486 112,486 117,481 117,481 N/A N/A N/A N/A
64 5 83,594 107,689 77,594 101,689 116,986 116,986 123,780 123,780 N/A N/A N/A N/A
65 6 78,648 108,458 73,648 103,458 121,665 121,665 130,331 130,331 N/A N/A N/A N/A
66 7 73,754 109,152 69,754 105,152 126,532 126,532 137,145 137,145 N/A N/A N/A N/A
67 8 68,905 109,766 65,905 106,766 131,593 131,593 144,230 144,230 N/A N/A N/A N/A
68 9 64,097 110,293 62,097 108,293 136,857 136,857 151,600 151,600 N/A N/A N/A N/A
69 10 59,324 110,725 59,324 110,725 142,331 142,331 159,264 159,264 N/A N/A N/A N/A
74 15 35,706 111,217 35,706 111,217 173,168 173,168 202,435 202,435 9,438 9,438 9,438 9,438
79 20 12,097 108,109 12,097 108,109 210,685 210,685 254,959 254,959 13,062 13,062 13,062 13,062
80 21 7,321 106,941 7,321 106,941 219,112 219,112 266,757 266,757 13,936 13,936 13,936 13,936
After conversion of the Guaranteed minimum income benefit to the Guaranteed
withdrawal benefit for life at age 80
Greater of 4%
Roll-Up to age
80 or the Annual
Ratchet to age Guaranteed
80 Guaranteed Total Death Benefit Annual
Minimum Death with the Earnings GWBL Benefit Withdrawal
Account Value Cash Value Benefit enhancement benefit Base Amount
Contract ----------------- ----------------- ------------------- ------------------- ------------------- --------------
Age Year 0% 6% 0% 6% 0% 6% 0% 6% 0% 6% 0% 6%
----- --------- ------- --------- ------- --------- --------- --------- --------- --------- --------- --------- ------- ------
80 21 7,321 106,941 7,321 106,941 219,112 219,112 266,757 266,757 219,112 219,112 8,764 8,764
84 25 0 101,487 0 101,487 219,112 219,112 266,757 266,757 219,112 219,112 8,764 8,764
89 30 0 93,740 0 93,740 219,112 219,112 266,757 266,757 219,112 219,112 8,764 8,764
94 35 0 84,813 0 84,813 219,112 219,112 266,757 266,757 219,112 219,112 8,764 8,764
95 36 0 82,871 0 82,871 219,112 219,112 266,757 266,757 219,112 219,112 8,764 8,764
The hypothetical investment results are illustrative only and should not be
deemed a representation of past or future investment results. Actual investment
results may be more or less than those shown and will depend on a number of
factors, including investment allocations made by the owner. The account value,
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.
Appendix IV: Hypothetical Illustrations D-2
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Appendix V: Earnings enhancement benefit example
--------------------------------------------------------------------------------
The following illustrates the calculation of a death benefit that includes the
Earnings enhancement benefit for an owner age 45. The example assumes a
contribution of $100,000 and no additional contributions. Where noted, a single
withdrawal in the amount shown is also assumed. The calculation is as follows:
No Withdrawal $3,000 withdrawal $6,000 withdrawal
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A Initial contribution 100,000 100,000 100,000
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B Death benefit: prior to withdrawal.* 104,000 104,000 104,000
-----------------------------------------------------------------------------------------------------------------------------------
Earnings enhancement benefit earnings: death
benefit less net contributions (prior to the withdrawal
C in D). 4,000 4,000 4,000
B minus A.
-----------------------------------------------------------------------------------------------------------------------------------
D Withdrawal 0 3,000 6,000
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Excess of the withdrawal over the Earnings
E enhancement benefit earnings 0 0 2,000
greater of D minus C or zero
-----------------------------------------------------------------------------------------------------------------------------------
Net contributions (adjusted for the withdrawal in D)
F A minus E 100,000 100,000 98,000
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Death benefit (adjusted for the withdrawal in D)
G B minus D 4,000 101,000** 98,000**
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Death benefit less net contributions
H G minus F 4,000 1,000 0
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I Earnings enhancement benefit factor 40% 40% 40%
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Earnings enhancement benefit
J H times I 1,600 400 0
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Death benefit: including Earnings enhancement benefit
K G plus J 105,600 101,400 98,000
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* The death benefit is the greater of the account value or any applicable
death benefit.
**Assumes no earnings on the contract; otherwise the withdrawal would reduce
the standard death benefit on a pro-rata basis, not dollar-for-dollar as
shown.
E-1 Appendix V: Earnings enhancement benefit example
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Appendix VI: State contract availability and/or variations of certain features
and benefits
--------------------------------------------------------------------------------
The following information is a summary of the states where the Accumulator(R)
Plus(SM)) contract 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. Regardless of the state,
the rate initially set on an outstanding loan cannot be changed.
STATES WHERE CERTAIN ACCUMULATOR(R) PLUS(SM)) FEATURES AND/OR BENEFITS ARE NOT
AVAILABLE OR HAS CERTAIN VARIATIONS TO FEATURES AND/OR BENEFITS:
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State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
CALIFORNIA See "Contract features and benefits"--"Your right to can- If you reside in the state of California and you are
cel within a certain number of days" age 60 and older at the time the contract is issued,
you may return your variable annuity contract within
30 days from the date that you receive it and
receive a refund as described below.
If you allocate your entire initial contribution to
the EQ/Money Market option (and/or guaranteed
interest option, if available), the amount of your
refund will be equal to your contribution less
interest, unless you make a trans- fer, in which
case the amount of your refund will be equal to your
account value on the date we receive your request to
cancel at our processing office. This amount could
be less than your initial contribution. If you
allocate any portion of your initial contribution to
the variable investment options (other than the
EQ/Money Market option) , your refund will be equal
to your account value on the date we receive your
request to cancel at our processing office.
-----------------------------------------------------------------------------------------------------------------------------------
CONNECTICUT See "Loans under Rollover TSA contracts" in "Accessing The method for determining the TSA loan rate is
your money" based on Moody's Corporate Bond Yield Average. The
rate change increment cannot be less than -1/2 of 1%
per year.
See "Credits" in "Contract features and benefits" 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 with- drawal charges will
continue to apply to those contributions.
FLORIDA See "Credits" in "Contract features and benefits" The following information replaces the second bullet
of the final set of bullets in this section:
o You may annuitize your contract after thirteen
months, however, if you elect to receive annuity
payments within five years of the contract date,
we will recover the credit that applies to any
contribution made in that five years. If you start
receiving 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.
-----------------------------------------------------------------------------------------------------------------------------------
ILLINOIS See "Loans under Rollover TSA contracts" in "Accessing The TSA loan interest rate may not exceed 8% (or
lower maximum rate that may become required by
Illinois or fed- eral law).
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Appendix VI: State contract availability and/or
variations of certain features and benefits F-1
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State Features and Benefits Availability or Variation
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ILLINOIS See "Contract features and benefits" in "Credits" The following information replaces the second bullet
(CONTINUED) of the final set of bullets in this section:
o You may annuitize your contract after twelve
months, however, if you elect to receive annuity
payments within five years of the contract date,
we will recover the credit that applies to any
contribution made in the first five years. If you
start receiving 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 "Selecting an annuity payout option" under "Your The following sentence replaces the first sentence
of the second paragraph in this section:
You can choose the date annuity payments begin but
it may not be earlier than twelve months from the
Accumulator(R) Plus(SM) contract date.
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MASSACHUSETTS Annual administrative charge The annual administrative charge will not be
deducted from amounts allocated to the Guaranteed
interest option.
See "Disability, terminal illness or confinement to This section is deleted in its entirety.
nursing home" under "Withdrawal charge" in "Charges
and expenses"
See "Appendix IV: Hypothetical Illustrations" The annuity purchase factors are applied on a unisex
basis in determining the amount payable upon the
exercise of the Guaranteed minimum income benefit.
-----------------------------------------------------------------------------------------------------------------------------------
MISSISSIPPI QP (defined contribution and defined benefit) contracts Not Available
See "How you can purchase and contribute to your con- Additional contributions are limited to the first
tract" in "Contract features and benefits" year after the contract issue date only. The 150%
limitation rule does not apply.
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NEW YORK Earnings enhancement benefit Not Available
"Indication of Intent" The "Indication of Intent" approach to first year
contribu- tions in connection with the contribution
crediting rate is not available.
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F-2 Appendix VI: State contract availability and/or variations of certain
features and benefits
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State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK See "Credits" in "Contract features and benefits" If the owner (or older joint owner, if applicable)
(CONTINUED) dies during ( the one-year period following our
receipt of a contribution to which a credit was
applied, we will recover all or a por- tion 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 Percentage of
Months 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 "Guaranteed minimum death benefit and Guaranteed GMIB I - Asset Allocation and GMIB II - Custom
minimum income benefit base" in "Contract features and Selection 4% Roll-Up to age 80 Guaranteed minimum
benefits" income benefit base is capped at 250% of total
contributions under the contract. If there is a
Roll-Up benefit base reset, the cap becomes 250% of
the highest reset amount plus 250% of any subsequent
contributions made after the reset. With- drawals do
not lower the cap.
See "Guaranteed minimum death benefit" in "Contract "Greater of" GMDB I or "Greater of" GMDB II enhanced
features and benefits" death benefit is not available. All references to
these ben- efits should be deleted in their
entirety.
See "The amount applied to purchase an annuity payout The amount applied to the annuity benefit is the
option" in "Accessing your money" greater of the cash value or 95% of what the account
value would be if no withdrawal charge applied.
See "How withdrawals affect your Guaranteed minimum If you elect both (1) the Guaranteed minimum income
income benefit and Guaranteed minimum death benefit" in benefit and (2) the Annual Ratchet to age 80
"Accessing your money" enhanced death benefit, withdrawals (including any
applicable withdrawal charges) will reduce each of
the benefits' benefit bases on a pro-rata basis for
the first five contract years if the Guaran- teed
minimum income benefit is elected at issue. If the
Guaranteed minimum income benefit is added after
issue, the applicable five year period begins as of
the Guaranteed minimum income benefit effective
date.
Beginning on the first day of the 6th contract year
(or 6th contract year after the GMIB effective date,
if applicable), withdrawals will reduce the
Guaranteed minimum income benefit Rollup and Annual
Ratchet benefit bases and the Annual Ratchet to age
80 benefit base, on a dollar-for-dollar basis.
-----------------------------------------------------------------------------------------------------------------------------------
Appendix VI: State contract availability and/or
variations of certain features and benefits F-3
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State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK Once a withdrawal is taken that causes the sum of
(CONTINUED) withdrawals in a contract year to exceed 4% of the
4% Roll-Up to age 80 benefit base on the most recent
contract date anniversary, that entire withdrawal
and any subsequent withdrawals in that same contract
year will reduce the ben- efit bases on a pro rata
basis. In all contract years beginning after your
80th birthday, or earlier if you drop the Guaran-
teed minimum income benefit after issue, the Annual
Ratchet to age 80 benefit base Guaranteed minimum
death benefit will be reduced on a pro rata basis by
any withdraw- als.
If you elect (1) the Guaranteed minimum income
benefit and (2) the Standard death benefit,
withdrawals (including any applicable withdrawal
charges) will reduce the 4% Roll-Up to age 80
benefit base and the Annual Ratchet to age 80
benefit base on a pro-rata basis for the first five
contract years if the Guaranteed minimum income
benefit is elected at issue. If the Guaranteed
minimum income benefit is added after issue, the
applicable five year period begins as of the
Guaranteed minimum income benefit effective date.
Beginning on the first day of the 6th contract year
(or 6th contract year after the GMIB effective date,
if applicable), withdrawals will reduce the
Guaranteed minimum income benefit Roll-Up to Age 80
benefit base and the Annual Ratchet to age 80
benefit base, on a dollar-for-dollar basis., as long
as the sum of withdrawals in a contract year is no
more than 4% of the 4% Roll-Up to age 80 benefit
base.
Once a withdrawal is taken that causes the sum of
with- drawals in a contract year to exceed 4% of the
4% Roll-Up to age 80 benefit base on the most recent
contract date anniversary, that entire withdrawal
and any subsequent withdrawals in that same contract
year will reduce the 4% Roll-Up to age 80 benefit
base and the Annual Ratchet to age 80 benefit base
on a pro rata basis. The Standard death benefit base
will be reduced on a pro rata basis by any
withdrawals, regardless of amount.
If you elect the Annual Ratchet to age 80 enhanced
death benefit without the Guaranteed minimum income
benefit, withdrawals (including any applicable
withdrawal charges) will reduce the benefit base on
a pro rata basis.
If the Guaranteed minimum income benefit converts to
the Guaranteed withdrawal benefit for life, the
Standard death benefit base or Annual Ratchet to age
80 benefit base will be reduced on a pro rata basis
by any subsequent with- drawals.
See "Selecting an annuity payout option" in "Accessing The earliest date annuity payments may begin is 13
your money" months from the issue date. Your contract has a
See "Annuity maturity date" in "Accessing your money" maturity date by which you must either take a lump
sum withdrawal or select an annuity payout option.
The maturity date is the contract date anniversary
that follows the annuitant's 90th birthday.
-----------------------------------------------------------------------------------------------------------------------------------
F-4 Appendix VI: State contract availability and/or variations of certain
features and benefits
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-----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
NEW YORK See "Charges and expenses" Deductions of charges from the guaranteed interest
(CONTINUED) option are not permitted.
See "Annual Ratchet to age 80" in "Charges and expenses" The charge is equal to 0.30% of the Annual Ratchet
to age 80 benefit base.
See "Spousal continuation" in "Payment of death benefit" If the Guaranteed minimum income benefit had
converted to the Guaranteed withdrawal benefit for
life on a Joint life basis, the benefit and charge
will remain in effect after the death of the first
spouse to die, and no death benefit is payable until
the death of the surviving spouse. If you have also
elected the Annual Ratchet to age 80 enhanced death
benefit, that benefit's benefit base will continue
to ratchet until the contract date anniversary
following the surviving spouse's age 80. Withdrawal
charges will continue to apply to all contributions.
No additional contributions will be per- mitted. If
the Guaranteed minimum income benefit had converted
to the Guaranteed withdrawal benefit for life on a
Single life basis, the benefit and charge will
terminate.
If your spouse elects Spousal continuation after
your death under a Single life contract in which the
Guaranteed with- drawal benefit for life is in
effect, the Annual Ratchet to age 80 enhanced death
benefit will continue to ratchet, or ter- minate,
based on your spouse's age, as described earlier in
this Prospectus and Appendix.
See "Transfers of ownership, collateral assignments, loans Collateral assignments are not limited to the period
and borrowing" in "More information" prior to the first contract date anniversary. You
may assign all or a portion of the value of your NQ
contract at any time, pursu- ant to the terms
described in this Prospectus.
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NORTH CAROLINA See "Loans under Rollover TSA contracts" in "Accessing The frequency of TSA loan interest rate setting is
once every 12 months but not more than once in any
three-month period. The rate change increment cannot
be less than 1/2 of 1% per year. Rates set by an
employer can be used for ERISA plans.
------------------------------------------------------------------------------------------------------------------------------------
PENNSYLVANIA Contributions Your contract refers to contributions as premiums.
Cancelling the Guaranteed minimum income benefit You may cancel the Guaranteed minimum income benefit
within 10 days of it being added to your contract if
you add the benefit to your contract after issue.
This is distinct from your right to drop the
Guaranteed minimum income benefit after issue, and
is not subject to the restrictions that govern that
right. We will not deduct any charge for the Guaran-
teed minimum income benefit, or alter other charges,
such as reducing the Guaranteed minimum death
benefit charge, that are tied to the Guaranteed
minimum income benefit being part of your contract.
Required disclosure for Pennsylvania customers Any person who knowingly and with intent to defraud
any insurance company or other person files an
application for insurance or statement of claim
containing any materially false information or
conceals for the purpose of misleading, information
concerning any fact material thereto commits a
fraudulent insurance act, which is a crime and
subjects such person to criminal and civil
penalties.
------------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO Beneficiary continuation option (IRA) Not Available
------------------------------------------------------------------------------------------------------------------------------------
Appendix VI: State contract availability and/or
variations of certain features and benefits F-5
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State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO IRA and Roth IRA Available for direct rollovers from U.S. source
(CONTINUED) 401(a) plans and direct transfers from the same type
of U.S. source IRAs
Rollover TSA and QP (Defined Benefit) contracts Not Available
See "How you can purchase and contribute to your con- Specific requirements for purchasing QP contracts in
ract" in "Contract features and benefits" Puerto t Rico are outlined below in "Purchase
considerations for QP (Defined Contribution)
contracts in Puerto Rico".
See "Exercise rules" under "Guaranteed minimum income Exercise restrictions for the GMIB on a Puerto Rico
benefit" in "Contract features and benefits" QPDC contract are described below, under "Purchase
consider- ations for QP (Defined Contribution)
contracts in Puerto Rico", and in your contract.
See "Income Manager(R) payout options" in "Accessing your This payout option is not available with QPDC
money" contracts.
See "Transfers of ownership, collateral assignments, Transfers of ownership of QP contracts are governed
loans and borrowing" in "More information" by Puerto Rico law. Please consult your tax, legal
or plan advi- sor if you intend to transfer
ownership of your contract.
"Purchase considerations for QP (Defined Contribution) Purchase considerations for QP (Defined Contribu-
contracts in Puerto Rico" -- this section replaces tion) contracts in Puerto Rico: Trustees who are
"Appendix II: Purchase considerations for QP contracts" considering the purchase of an Accumulator(R)
in your Prospectus. Plus(SM) QP contract in Puerto Rico should discuss
with their tax, legal and plan advisors whether this
is an appro- priate 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 Guaran- teed minimum
income benefit and other guaranteed benefits, 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:
o The QP contract is offered only as a funding
vehicle to qualified plan trusts of single
participant defined contri- bution 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.
o 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.
o 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.
o If the business that sponsors the plan adds
another employee, 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.
-----------------------------------------------------------------------------------------------------------------------------------
F-6 Appendix VI: State contract availability and/or variations of certain
features and benefits
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-----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
PUERTO RICO Limits on Contributions:
(CONTINUED) o All contributions must be direct transfers from
other investments within an existing qualified
plan trust.
o Employer payroll contributions are not accepted. o
Only one additional transfer contribution may be
made per contract year.
o Checks written on accounts held in the name of the
employer instead of the plan or the trustee will
not be accepted.
o 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:
o Loans are not available under the contract.
o All payments are made to the plan trust as
owner, even though the plan participant/annuitant
is the ultimate recipient of the benefit payment.
o 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.
o 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.
Plan Termination:
o 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.
o 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.
o 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.
o 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.
Appendix VI: State contract availability and/or
variations of certain features and benefits F-7
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State Features and Benefits Availability or Variation
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PUERTO RICO Tax Information-"Special rules for NQ contracts" Income from NQ contracts we issue is U.S. source. A
(CONTINUED) Puerto Rico resident is subject to U.S. taxation on
such U.S. source income. Only Puerto Rico source
income of Puerto Rico resi- dents is excludable from
U.S. taxation. Income from NQ contracts is also
subject to Puerto Rico tax. The calculation of the
taxable portion of amounts distributed from a con-
tract may differ in the two jurisdictions.
Therefore, you might have to file both U.S. and
Puerto Rico tax returns, showing different amounts
of income from the contract for each tax return.
Puerto Rico generally provides a credit against
Puerto Rico tax for U.S. tax paid. Depending on your
per- sonal situation and the timing of the different
tax liabilities, you may not be able to take full
advantage of this credit.
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TEXAS See "Annual administrative charge" in "Charges and The annual administrative charge will not be
expenses" deducted from amounts allocated to the Guaranteed
interest option.
See "How you can purchase and contribute to your con- The $2,500,000 limitation on the sum of all
tract" in "Contract features and benefits" contributions under all AXA Equitable annuity
accumulation contracts with the same owner or
annuitant does not apply.
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WASHINGTON Guaranteed interest option Not Available
Investment simplifier -- Fixed-dollar option Not Available
and Interest sweep option
Income Manager(R) payout option Not Available
Earnings enhancement benefit Not Available
"Greater of" GMIB I and GMIB II enhanced death benefit" All references to this feature are deleted in their
entirety.
You have the choice of the following guaranteed
minimum death benefits: the Annual Ratchet to age
80; or the Stan- dard death benefit.
See "Guaranteed minimum death benefit charge" in "Fee The charge for the Greater of 4% Roll-Up to age 80
table" and in "Charges and expenses" or Annual Ratchet to age 80 is 0.30% and cannot be
increased.
See "How withdrawals affect your Guaranteed minimum If you elect both (1) the Guaranteed minimum income
income benefit and Guaranteed minimum death benefit" benefit and (2) the Annual Ratchet to age 80
in "Accessing your money" enhanced death benefit, withdrawals (including any
applicable withdrawal charges) will reduce each of
the benefits' benefit bases on a pro-rata basis for
the first five contract years if the Guaran- teed
minimum income benefit is elected at issue. If the
Guaranteed minimum income benefit is added after
issue, the applicable five year period begins as of
the Guaranteed minimum income benefit effective
date. Beginning on the first day of the 6th contract
year (or 6th contract year after the GMIB effective
date, if applicable), withdrawals will reduce the
Guaranteed minimum income Rollup benefit base and
the Annual Ratchet to age 80 enhanced death benefit
base, on a dollar-for-dollar basis.
-----------------------------------------------------------------------------------------------------------------------------------
F-8 Appendix VI: State contract availability and/or variations of certain
features and benefits
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-----------------------------------------------------------------------------------------------------------------------------------
State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON Once a withdrawal is taken that causes the sum of
(CONTINUED) withdrawals in a contract year to exceed the 4%
Roll-Up to age 80 benefit base on the most recent
contract date anniver- sary, that entire withdrawal
(including any required minimum distributions) and
any subsequent withdrawals in that same contract
year will reduce the benefit bases on a pro rata
basis. In all contract years beginning after your
80th birthday, or earlier if you drop the Guaranteed
mini- mum income benefit after issue, the Annual
Ratchet to age 80 benefit base will be reduced on a
pro rata basis by any withdrawals.
If you elect (1) the Guaranteed minimum income
benefit and (2) the Standard death benefit,
withdrawals (including any applicable withdrawal
charges) will reduce the 4% Roll-Up to age 80
benefit base and the Annual Ratchet to age 80
benefit base on a pro-rata basis for the first five
contract years if the Guaranteed minimum income
benefit is elected at issue. If the Guaranteed
minimum income benefit is added after issue, the
applicable five year period begins as of the
Guaranteed minimum income benefit effective date.
Beginning on the first day of the 6th contract year,
with- drawals will reduce the 4% Guaranteed minimum
income benefit Rollup to Age 80 benefit base and the
Annual Ratchet to age 80 enhanced death benefit
base, on a dollar- for-dollar basis, as long as the
sum of withdrawals in a contract year is no more
than 4% of the 4% Roll-Up to age 80 benefit base.
Once a withdrawal is taken that causes the sum of
withdrawals in a contract year to exceed 4% of the
4% Roll-Up to age 80 benefit base on the most recent
con- tract date anniversary, that entire withdrawal
(including any required minimum distributions) and
any subsequent with- drawals in that same contract
year will reduce the 4% Roll-Up to age 80 benefit
base and the Annual Ratchet to age 80 benefit base
on a pro rata basis. The Standard death benefit base
will be reduced on a pro rata basis by any
withdrawals, regardless of amount.
If you elect the Annual Ratchet to age 80 enhanced
death benefit without the Guaranteed minimum income
benefit, withdrawals (including any applicable
withdrawal charges) will reduce the applicable
benefit base on a pro rata basis.
See "Guaranteed minimum death benefit" in You have a choice of the standard death benefit or
"Contract features and benefits" the Annual Ratchet to age 80 enhanced death benefit.
The Standard death benefit and the Annual Ratchet to
age 80 enhanced death benefit may be combined with
the GMIB I - Asset Allocation or GMIB II - Custom
Selection.
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Appendix VI: State contract availability and/or
variations of certain features and benefits F-9
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State Features and Benefits Availability or Variation
-----------------------------------------------------------------------------------------------------------------------------------
WASHINGTON See "Annual administrative charge" in "Charges and The second paragraph of this section is replaced
(continued) expenses" with the following:
The annual administrative charge will be deducted
from the value in the variable investment options on
a pro rata basis. If those amounts are insufficient,
we will deduct all or a portion of the charge from
the account for special money market dollar cost
averaging. 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 por- tion of that charge for the
year.
See "10% free withdrawal amount" under "Withdrawal The 10% free withdrawal amount applies to full
charge" in "Charges and expenses" surrenders.
See "Withdrawal charge" in "Charges and expenses" under The owner (or older joint owner, if applicable) has
"Disability, terminal illness, or confinement to nursing qualified to receive Social Security disability
home" benefits as certified by the Social Security
Administration or a statement from an independent
U.S. licensed physician stating that the owner (or
older joint owner, if applicable) meets the
definition of total disability for at least 6
continuous months prior to the notice of claim. Such
disability must be re-certified every 12 months.
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F-10 Appendix VI: State contract availability and/or variations of certain
features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
Statement of additional information
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TABLE OF CONTENTS
Page
Who is AXA Equitable? 2
Unit Values 2
Name Change 2
Custodian and Independent Registered Public Accounting Firm 2
Distribution of the Contracts 2
Financial Statements 2
How to obtain an Accumulator(R) Plus(SM) Statement of Additional Information
for Separate Account No. 49
Send this request form to:
Accumulator(R) Plus(SM)
P.O. Box 1547
Secaucus, NJ 07096-1547
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Please send me an Accumulator(R) Plus(SM) SAI for Separate Account No. 49
dated __.
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Name
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Address
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City State Zip
X2408/Plus '02/'04, ML, '04(NY) '07/'07.5, 8.0/8.2 and 9.0