To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
Definitions of key terms
--------------------------------------------------------------------------------
ANNUAL ROLL-UP RATE -- The "Annual Roll-up rate" is the rate used to calculate
the Annual withdrawal amount. It is also used to calculate amounts credited to
your GIB benefit base and Roll-up to age 85 benefit base (for contracts with
the "Greater of" guaranteed minimum death benefit).
ANNUAL WITHDRAWAL AMOUNT -- The "Annual withdrawal amount" is the amount that
can be withdrawn from your contract without reducing your GIB benefit base and
Roll-up to age 85 benefit base. It is equal to the Annual Roll-up rate in
effect at the time, multiplied by the GIB benefit base as of the most recent
contract date anniversary.
ANNUITANT -- The "annuitant" is the person who is the measuring life for
determining the contract's maturity date. The annuitant is not necessarily the
contract's owner. Where the owner of the contract is a non-natural, the
annuitant is the measuring life for determining benefits under the contract.
AUTOMATIC INVESTMENT PROGRAM ("AIP") -- The "Automatic investment program"
allows you to make on-going contributions to your contract through electronic
fund transfers from your financial institution.
BUSINESS DAY -- Our "business day" is generally and day the New York Stock
Exchange ("NYSE") is open for regular trading and generally ends at 4:00 p.m.
Eastern Time (or as of an earlier close of regular trading). If the Securities
and Exchange Commission determines the existence of emergency conditions on any
day, and consequently, the NYSE does not open, then that day is not a business
day.
CASH VALUE -- At any time before annuity payments begin, your contract's "cash
value" is equal to the Total account value, less (i) the total amount or a
pro-rata portion of the annual administrative charge, as well as any optional
benefit charges; and (ii) any applicable withdrawal charges.
CONTRACT DATE -- The "contract date" is the effective date of the contract.
This usually is the business day we receive the properly completed and signed
application, along with any other required documents, and your initial
contribution. Your contract date will be shown in your contract.
CONTRACT DATE ANNIVERSARY -- The end of each 12-month period is your "contract
date anniversary." For example, if your contract date is May 1st, your contract
date anniversary is April 30th.
CONTRACT YEAR -- The "contract year" is the 12-month period beginning on your
contract date and each 12-month period after that date.
CREDIT -- An amount credited to your account value at the same time we
allocate your contribution. The amount of the credit is either 4% or 5% of each
contribution based on total first year contributions.
CUSTOMIZED PAYMENT PLAN -- For contracts with GIB, our "Customized payment
plan" allows you to request amounts up to your Annual withdrawal amount as
scheduled payments to you through one of five customized options.
CUSTOM SELECTION RULES -- The "Custom Selection Rules" are rules for the
allocation of contributions and for transfers to, and transfers among, the
Protection with Investment Performance account. These rules require that
allocations be made according to certain categories and investment option
limits.
DEFERRAL BONUS ROLL-UP RATE -- The "Deferral bonus Roll-up rate" is used to
calculate amounts credited to your GIB benefit base and the Roll-up to age 85
benefit base (used in the calculation of the "Greater of" death benefit).
EXCESS WITHDRAWAL -- For contracts with the GIB, an "Excess withdrawal" is a
withdrawal in excess of your Annual withdrawal amount.
FREE LOOK -- If for any reason you are not satisfied with your contract, you
may exercise your cancellation right under the contract to receive a refund.
This is your "Free look" right under the contract.
GIB BENEFIT BASE -- The GIB benefit base is an amount used to determine your
Annual withdrawal amount and your Lifetime GIB payments. Your GIB benefit base
is created and increased by allocations and transfers to your Protection with
Investment Performance account. The GIB benefit base is not an account value or
cash value. The GIB benefit base is also used to calculate the charge for the
GIB.
GENERAL DOLLAR COST AVERAGING -- Our "General dollar cost averaging program"
is a program that allows for the systematic transfers of amounts in the
EQ/Money Market variable investment option to the Investment Performance
variable investment options.
"GREATER OF" DEATH BENEFIT -- The "Greater of" death benefit is an optional
guaranteed minimum death benefit in connection with your Protection with
Investment Performance account value only. The death benefit is calculated
using the greater of two benefit bases -- the greater of the Roll-up to age 85
benefit base and the Highest Anniversary Value benefit base. There is an
additional charge for the "Greater of" death benefit under the contract.
GUARANTEED INCOME BENEFIT ("GIB") -- The GIB is a benefit that guarantees,
subject to certain restrictions, annual lifetime payments or "Lifetime GIB
payments". The GIB also allows you to take certain withdrawals prior to the
beginning of your Lifetime GIB payments that do not reduce your GIB benefit
base (your "Annual withdrawal amount"). There is an additional charge for the
GIB under the contract.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT -- The "Highest Anniversary Value
death benefit" is an optional guaranteed minimum death benefit in connection
with your Protection with Investment Performance account value only. The death
benefit is calculated using the highest value of your Protection with
Investment Performance account on your contract date anniversary. There is an
additional charge for the Highest Anniversary Value death benefit under the
contract.
INVESTMENT PERFORMANCE ACCOUNT VALUE -- The "Investment Performance account
value" is the total value in: (i) the Investment Performance variable
investment options, (ii) the Guaranteed interest
Definitions of key terms 5
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
option, and (iii) amounts in a Special DCA program that are designated for
future transfers to the Investment Performance variable investment options.
INVESTMENT SIMPLIFIER -- Our "Investment simplifier" allows for systematic
transfers of amounts in the Guaranteed interest option to the Investment
Performance account variable investment options. There are two options under
the program -- the Fixed dollar option and the Interest sweep option.
IRA -- Individual retirement annuity contract, either traditional IRA or Roth
IRA.
IRS -- Internal Revenue Service
LIFETIME GIB PAYMENTS -- For contracts with the GIB, "Lifetime GIB payments"
are annual lifetime payments that are calculated by applying a percentage to
your GIB benefit base. Lifetime GIB payments will begin at the earliest of: (i)
the contract date anniversary following the date the Protection with Investment
Performance account falls to zero (except as the result of an Excess
withdrawal), (ii) the contract date anniversary following your 95th birthday,
and (iii) your contract's maturity date.
MATURITY DATE -- The contract's "maturity date" is generally the contract date
anniversary that follows the annuitant's 95th birthday.
MAXIMUM PAYMENT PLAN -- For contracts with GIB, our "Maximum payment plan"
allows you to request your Annual withdrawal amount as scheduled payments.
NQ CONTRACT -- Nonqualified annuity contract
OWNER -- The "owner" is the person who is the named owner in the contract and,
if an individual, is the measuring life for determining contract benefits.
PROTECTION WITH INVESTMENT PERFORMANCE ACCOUNT VALUE -- The "Protection with
Investment Performance account value" is the total value in: (i) the Protection
with Investment Performance variable investment options, and (ii) amounts in a
Special DCA program that are designated for future transfers to the Protection
with Investment Performance variable investment options.
RETURN OF PRINCIPAL DEATH BENEFIT -- The "Return of Principal" death benefit
is a death benefit in connection with your Protection with Investment
Performance account value only. The benefit is calculated using the amounts of
contributions and transfers to the Protection with Investment Performance
account, less withdrawals. There is no additional charge for this death
benefit.
SAI -- Statement of Additional Information
SEC -- Securities and Exchange Commission
SPECIAL DCA PROGRAMS -- We use the term "Special DCA Programs" to collectively
refer to our special dollar cost averaging program and special money market
dollar cost averaging program.
SPECIAL DOLLAR COST AVERAGING -- Our "Special dollar cost averaging program"
allows for systematic transfers of amounts in the account for special dollar
cost averaging into both the Protection with Investment Performance variable
investment options and the Investment Performance variable investment options.
The account for special dollar cost averaging is part of our general account.
SPECIAL MONEY MARKET DOLLAR COST AVERAGING -- Our "Special money market dollar
cost averaging program" allows for the systematic transfers of amounts in the
account for special money market dollar cost averaging into both the Protection
with Investment Performance variable investment options, the Investment
Performance variable investment options and the Guaranteed interest option.
SYSTEMATIC TRANSFER PROGRAM -- Our "Systematic transfer program" is a program
that allows you to have amounts in the Investment Performance account variable
investment options and the Guaranteed interest option automatically transferred
to your Protection with Investment Performance variable investment options.
TOTAL ACCOUNT VALUE -- Your "Total account value" is the total of (i) your
Protection with Investment Performance account value and (ii) your Investment
Performance account value.
6 Definitions of key terms
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
To make this Prospectus easier to read, we sometimes use different words than
in the contract or supplemental materials. This is illustrated below. Although
we use different words, they have the same meaning in this Prospectus as in the
contract or supplemental materials. Your financial professional can provide
further explanation about your contract or supplemental materials.
-----------------------------------------------------------------------------------------
PROSPECTUS CONTRACT OR SUPPLEMENTAL MATERIALS
-----------------------------------------------------------------------------------------
Total account value Annuity Account Value
unit Accumulation Unit
Guaranteed minimum death benefit Guaranteed death benefit
guaranteed interest option Guaranteed Interest Account
Protection with Investment Performance vari- Protection with Investment Performance
able investment options and contribution to a Account Value
Special DCA program designated for the Pro-
tection with Investment Performance variable
investment options
Investment Performance variable investment Investment Performance Account Value
options, the guaranteed interest option and
contributions to a Special DCA program desig-
nated for the Investment Performance variable
investment options
-----------------------------------------------------------------------------------------
Definitions of key terms 7
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
GUARANTEED INTEREST OPTION
The guaranteed interest option is part of our general account and pays interest
at guaranteed rates. We discuss our general account under "More information"
later in this Prospectus. Any amounts allocated to the guaranteed interest
option will not be included in your Protection with Investment Performance
account value.
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, based on our discretion and
according to our procedures that we have in effect at the time. We reserve the
right to change these procedures. All interest rates are effective annual
rates, but before the deduction of annual administrative charges. For a
state-by-state description of all material variations of this contract,
including information on the guaranteed interest option in your state, see
Appendix V later in this Prospectus.
Your lifetime minimum guaranteed rate over the life of the contract is 1.00%.
The data page for your contract shows the lifetime minimum rate. The minimum
yearly rate will never be less than the lifetime minimum rate. The minimum
yearly rate for 2011 is also 1.00%. 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.
ACCOUNT FOR SPECIAL DOLLAR COST AVERAGING. (Series B and L contracts only) The
account for special dollar cost averaging is part of our general account. We
pay interest at enhanced guaranteed rates in this account for specified time
periods. However, we are under no obligation to offer enhanced guaranteed rates
at any point in time. We will credit interest to the amounts that you have in
the account for special dollar cost averaging every day. We set the interest
rates periodically, based on our discretion and according to the procedures
that we have. We reserve the right to change these procedures.
We guarantee to pay our current interest rate that is in effect on the date
that your contribution is allocated to this account. Your guaranteed interest
rate for the time period you select will be shown in your contract for an
initial contribution. The rate will never be less than the lifetime minimum
rate for the guaranteed interest option. See "Dollar cost averaging" later in
this section for rules and restrictions that apply to the account for special
dollar cost averaging.
ALLOCATING YOUR CONTRIBUTIONS
You may allocate your contributions to the Investment Performance variable
investment options, the guaranteed interest option or one of our Special DCA
programs (depending on what series of Retirement Cornerstone(SM) you purchase).
If you are eligible to have one or more Guaranteed benefits and you wish to
fund them, you may allocate contributions to the Protection with Investment
Performance variable investment options or one of our Special DCA programs
(depending on what series of Retirement Cornerstone(SM) you purchase). Also, we
limit the number of variable investment options which you may select.
Only amounts you allocate to the Protection with Investment Performance
variable investment options and amounts in a Special DCA program designated for
future transfers to the Protection with Investment Performance variable
investment options will fund your Guaranteed benefits. These amounts will be
used to calculate your Guaranteed benefit bases and will become part of your
Protection with Investment Performance account value.
For example:
You purchase a Series B contract with an initial contribution of $100,000 and
have the GIB and the Highest Anniversary Value death benefit. You allocate
$60,000 to the Protection with Investment Performance variable investment
options and $40,000 to the Investment Performance variable investment options.
The $60,000 will be included in your Protection with Investment Performance
account value and will be used to calculate your GIB and Highest Anniversary
Value benefit bases. $40,000 will be included in your Investment Performance
account value.
Allocations must be whole percentages and you may change your allocations at
any time. No more than 25% of any contribution to the contract may be allocated
to the guaranteed interest option. The total of your allocations into all
available investment options must equal 100%. We reserve the right to
discontinue, and/or place additional limitations on, contributions to any of
the variable investment options, including the Protection with Investment
Performance variable investment options. We also reserve the right to
discontinue acceptance of contributions into the contract. See "Additional
limitations on contributions to the contract" in the table in "How you can
purchase and contribute to your contract" under "Contract features and
benefits."
It is important to note that the contract is between you and AXA Equitable. The
contract is not an investment advisory account, and AXA Equitable is not
providing any investment advice or managing the allocations under your
contract. In the absence of a specific written arrangement to the contrary,
you, as the owner of the contract, have the sole authority to make investment
allocations and other decisions under the contract. If your financial
professional is with AXA Advisors, he or she is acting as a broker-dealer
registered representative, and is not authorized to act as an investment
advisor or to manage the allocations under your contract. If your financial
professional is a registered representative with a broker-dealer other than AXA
Advisors, you should speak with him or her regarding any different arrangements
that may apply.
CUSTOM SELECTION RULES (APPLICABLE TO YOUR PROTECTION WITH INVESTMENT
PERFORMANCE ACCOUNT ONLY)
For allocations to your Protection with Investment Performance account, you
must allocate your contributions and transfers in accordance with our Custom
Selection Rules. The Custom Selection Rules
Contract features and benefits 51
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
to a Special DCA program. For information on how a Special DCA program may
affect certain Guaranteed benefits, see "Guaranteed income benefit" and
"Guaranteed minimum death benefits" later in this section.
General dollar cost averaging and Investment simplifier, on the other hand, can
only be used for systematic transfers to your Investment Performance variable
investment options. Our Investment simplifier program is available for
scheduled transfers from the guaranteed interest option to the Investment
Performance variable investment options. Our General dollar cost averaging
program is available for scheduled transfers from the EQ/Money Market variable
investment option to the Investment Performance variable investment options.
Below, we provide detail regarding each of the programs.
We do not deduct a transfer charge for any transfer made in connection with our
dollar cost averaging programs. Not all dollar cost averaging programs are
available in all states. For a state-by-state description of all material
variations of this contract, including information on the availability of our
dollar cost averaging programs in your state, see Appendix V later in this
Prospectus..
OUR SPECIAL DCA PROGRAMS. We currently offer the "Special dollar cost
averaging program" under the Series B and Series L contracts and the "Special
money market dollar cost averaging program" under the Series C and Series
CP(SM) contracts.
SPECIAL DOLLAR COST AVERAGING
Under the special dollar cost averaging program, you may dollar cost average
from the account for special dollar cost averaging, which is part of the
general account. We credit daily interest, which will never be less than the
guaranteed lifetime minimum rate for the guaranteed interest option, to amounts
allocated to this account. Currently, the guaranteed lifetime minimum rate is
1.00%. We guarantee to pay the current interest rate that is in effect on the
date that your contribution is allocated to this account. That interest rate
will apply to that contribution as long as it remains in the account for
special dollar cost averaging. The guaranteed interest rate for the time period
that you select will be shown in your contract for your initial contribution.
We set the interest rates periodically, based on our discretion and according
to procedures that we have. We reserve the right to change these procedures.
We will transfer amounts from the account for special dollar cost averaging
into the investment options you designate over an available time period that
you select. If the special dollar cost averaging program is selected at the
time of the application to purchase the contract, a 60 day rate lock will apply
from the date of application. Any contribution(s) received during this 60 day
period will be credited with the interest rate offered on the date of
application for the duration of the time period selected at application. Any
contribution(s) received after the 60 day rate lock period has ended will be
credited with the then current interest rate for the duration of the time
period selected at application. Contribution(s) made to the account for special
dollar cost averaging after the contract has been issued will be credited with
the then current interest rate on the date the contribution is received by us
for the time period initially selected by you. Once the time period you
selected has ended, you may select another time period for future
contributions. At that time, you may also select a different allocation for
transfers to the investment options, or, if you wish, we will continue to use
the allocation that you previously made.
SPECIAL MONEY MARKET DOLLAR COST AVERAGING
Under the special money market dollar cost averaging program, you may dollar
cost average from the account for special money market dollar cost averaging,
which is part of the EQ/Money Market variable investment option. We will
transfer amounts from the account for special money market dollar cost
averaging into the Protection with Investment Performance variable investment
options, the Investment Performance variable investment options and the
guaranteed interest option over an available time period that you select. One
of the primary benefits of the special money market dollar cost averaging
program is that amounts in the program designated for the Protection with
Investment Performance variable investment options count toward your Guaranteed
benefits on the business day you establish the program.
----------------------
Under both Special DCA programs, the following applies:
o Initial contributions to a Special DCA program must be at least $2,000;
subsequent contributions to an existing Special DCA program must be at least
$250;
o Contributions into a Special DCA program must be new contributions; you may
not make transfers from amounts allocated to other investment options to
initiate a Special DCA program;
o We offer time periods of 3, 6 or 12 months. We may also offer other time
periods;
o Contributions to a Special DCA program may be designated for the Protection
with Investment Performance variable investment options, the Investment
Performance variable investment options and/or the guaranteed interest
option, subject to the following:
-- If you want to take advantage of one of our Special DCA programs, 100% of
your contribution must be allocated to either the account for special
dollar cost averaging or the account for special money market dollar cost
averaging. In other words, your contribution cannot be split between the
Special DCA program and any other investment options available under the
contract. The instructions for the program must match your current
allocation instructions;
-- If you want to dollar cost average into the guaranteed interest option,
100% of your contribution must be allocated to the Special DCA program. Up
to 25% of your Special DCA program may be designated for the guaranteed
interest option, even if such a transfer would result in more than 25% of
your Total account value being allocated to the guaranteed interest
option. See "Transferring your account value" in "Transferring your money
among investment options" later in this Prospectus;
o Your Guaranteed benefit base(s) will be increased to reflect any contribution
to the Special DCA program that you have instructed us to transfer to the
Protection with Investment Performance vari-
54 Contract features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
able investment options. The Annual Roll-up rate (or Deferral bonus Roll-up
rate, if applicable) in effect on your contract will apply immediately to
any contribution that is designated to be transferred to the Protection
with Investment Performance variable investment options. For Series CP(SM)
contracts, the Annual Roll-up rate (or Deferral bonus Roll-up rate, if
applicable) in effect will not be applied to credits associated with
contributions allocated to the Special DCA program that are designated to
be transferred to the Protection with Investment Performance variable
investment options.
o IF WE EXERCISE OUR RIGHT TO DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE
ADDITIONAL LIMITATIONS ON, CONTRIBUTIONS AND TRANSFERS INTO THE PROTECTION
WITH INVESTMENT PERFORMANCE VARIABLE INVESTMENT OPTIONS, AND YOUR SPECIAL DCA
PROGRAM HAS TRANSFERS SCHEDULED TO THE PROTECTION WITH INVESTMENT PERFORMANCE
VARIABLE INVESTMENT OPTIONS, THE PROGRAM WILL CONTINUE FOR ITS DURATION.
HOWEVER, SUBSEQUENT CONTRIBUTIONS TO ANY PROTECTION WITH INVESTMENT
PERFORMANCE VARIABLE INVESTMENT OPTIONS UNDER A SPECIAL DCA PROGRAM WILL NOT
BE PERMITTED;
o IF YOU HAVE ONE OR MORE GUARANTEED BENEFITS AND WE EXERCISE OUR RIGHT TO
DISCONTINUE THE ACCEPTANCE OF, AND/OR PLACE ADDITIONAL LIMITATIONS ON,
CONTRIBUTIONS TO THE CONTRACT AND/OR CONTRIBUTIONS AND/OR TRANSFERS INTO THE
PROTECTION WITH INVESTMENT PERFORMANCE VARIABLE INVESTMENT OPTIONS, YOU MAY
NO LONGER BE ABLE TO FUND YOUR GUARANTEED BENEFIT(S). THIS MEANS THAT IF YOU
HAVE NOT YET ALLOCATED AMOUNTS TO THE PROTECTION WITH INVESTMENT PERFORMANCE
VARIABLE INVESTMENT OPTIONS, YOU MAY NOT BE ABLE TO FUND YOUR GUARANTEED
BENEFIT(S). THIS ALSO MEANS THAT IF YOU HAVE ALREADY FUNDED YOUR GUARANTEED
BENEFITS BY ALLOCATING AMOUNTS TO THE PROTECTION WITH INVESTMENT PERFORMANCE
VARIABLE INVESTMENT OPTIONS, YOU MAY NO LONGER BE ABLE TO INCREASE YOUR
PROTECTION WITH INVESTMENT PERFORMANCE ACCOUNT VALUE AND THE BENEFIT BASES
ASSOCIATED WITH YOUR GUARANTEED BENEFITS THROUGH CONTRIBUTIONS AND TRANSFERS.
o We will transfer all amounts by the end of the chosen time period. The
transfer date will be the same day of the month as the contract date, but not
later than the 28th day of the month. For a Special DCA program selected
after application, the first transfer date and each subsequent transfer date
for the time period selected will be one month from the date the first
contribution is made into the Special DCA program, but not later than the
28th day of the month. The only transfers that will be made are your
regularly scheduled transfers to the variable investment options. If you
request to transfer any other amounts from your Special DCA program, we will
transfer all of the value that you have remaining in the account to the
investment options according to the allocation percentages for the Special
DCA program that we have on file for you;
o Except for withdrawals made under our Automatic RMD withdrawal service or for
the assessment of contract charges, any unscheduled partial withdrawal from
your Special DCA program will terminate your Special DCA program. Any amounts
remaining in the account after the program terminates will be transferred to
the destination investment options according to your Special DCA program
allocation instructions. Any withdrawal which results in a reduction in the
Special DCA program amount previously included in your Guaranteed benefit
bases will reduce the Guaranteed benefit bases as described later in this
Prospectus. See "How withdrawals affect your Guaranteed benefits" later in
this section;
o If you elect any dollar cost averaging program, rebalancing Option II is not
available. If you elect a general dollar cost averaging program or special
money market dollar cost averaging, rebalancing Option I is not available.
See "Rebalancing among your Investment Performance variable investment
options and guaranteed interest option" in "Transferring your money among
investment options" later in this Prospectus;
o All of the dollar cost averaging programs available under your Retirement
Cornerstone(SM) Series contracts can be selected if you enrolled in our
Systematic transfer program. However, no amounts will be transferred out of a
Special DCA program as part of the Systematic transfer program.
o A Special DCA program may not be in effect at the same time as a general
dollar cost averaging program;
o The only dollar cost averaging program available to fund your Guaranteed
benefits is a Special DCA program;
o You may cancel your participation at any time but you may not change your
allocation instructions for transfers during the selected time period. If you
terminate your Special DCA program, we will allocate any remaining amounts in
your Special DCA program pursuant to your program allocations on file;
o If you are dollar cost averaging into the Protection with Investment
Performance variable investment options when you decide to drop all
Guaranteed benefits ("post-funding drop"), we will default future transfers
designated for the Protection with Investment Performance variable investment
options to the corresponding Investment Performance variable investment
options that invest in the same underlying Portfolios. Also, you can cancel
your Special DCA program and accelerate all transfers to the corresponding
Investment Performance variable investment options. See "Dropping or changing
your Guaranteed benefits" later in this section and Appendix I for more
information.
o We may offer these programs in the future with transfers on a different
basis. Your financial professional can provide information in the time
periods and interest rates currently available in your state, or you may
contact our processing office.
GENERAL DOLLAR COST AVERAGING PROGRAM
If your value in the EQ/Money Market variable investment option is at least
$5,000, you may choose, at any time, to have a specified dollar amount or
percentage of your value transferred from that option to any of the Investment
Performance variable investment options. For a state-by-state description of
all material variations of this contract, including information on the
availability of our general dollar cost averaging program, see Appendix V later
in this Prospectus.
Contract features and benefits 55
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
You can select to have transfers made on a monthly, quarterly or annual basis.
The transfer date will be the same calendar day of the month as the contract
date, but not later than the 28th day of the month. You can also specify the
number of transfers or instruct us to continue making the transfers until all
amounts in the EQ/Money Market variable investment option have been transferred
out. The minimum amount that we will transfer each time is $250. The
instructions for the program may differ from your allocation instructions on
file.
If, on any transfer date, your value in the EQ/Money Market variable investment
option is equal to or less than the amount you have elected to have
transferred, the entire amount will be transferred. The general dollar cost
averaging program will then end. You may change the transfer amount once each
contract year or cancel this program at any time.
You may not participate in our optional rebalancing programs if you elect the
general dollar cost averaging program.
INVESTMENT SIMPLIFIER
FIXED-DOLLAR OPTION. Under this option, you may elect to have a fixed-dollar
amount transferred out of the guaranteed interest option and into the
Investment Performance variable investment options of your choice. Transfers
may be made on a monthly, quarterly or annual basis. You can specify the number
of transfers or instruct us to continue to make transfers until all available
amounts in the guaranteed interest option have been transferred out.
In order to elect the fixed-dollar option, you must have a minimum of $5,000 in
the guaranteed interest option on the date we receive your election form at our
processing office. The transfer date will be the same calendar day of the month
as the contract date but not later than the 28th day of the month. The minimum
transfer amount is $50. Unlike the account for special dollar cost averaging,
the fixed dollar option does not offer enhanced rates. Also, this option is
subject to the guaranteed interest option transfer limitations described under
"Transferring your account value" in "Transferring your money among investment
options" later in this Prospectus. While the program is running, any transfer
that exceeds those limitations will cause the program to end for that contract
year. You will be notified if this occurs. You must send in a request form to
resume the program in the next or subsequent contract years.
If, on any transfer date, your value in the guaranteed interest option is equal
to or less than the amount you have elected to have transferred, the entire
amount will be transferred, provided the transfer complies with the same
guaranteed interest option transfer limitations referenced above. If the
transfer does not comply with the transfer limitations, the transfer will not
be made and the program will end. You may change the transfer amount once each
contract year or cancel this program at any time.
INTEREST SWEEP OPTION. Under this option, you may elect to have monthly
transfers from amounts in the guaranteed interest option into the Investment
Performance variable investment options of your choice. The transfer date will
be the last business day of the month. The amount we will transfer will be the
interest credited to amounts you have in the guaranteed interest option from
the last business day of the prior month to the last business day of the
current month. You must have at least $7,500 in the guaranteed interest option
on the date we receive your election. If the amount in the guaranteed interest
option falls below $7,500 at the beginning of the month, no transfer will be
made that month. We will automatically cancel the interest sweep program if the
amount in the guaranteed interest option is less than $7,500 on the last day of
the month for two months in a row. For the interest sweep option, the first
monthly transfer will occur on the last business day of the month following the
month that we receive your election form at our processing office. Transfers
under the Interest sweep option are subject to the guaranteed interest option
transfer limitations described under "Transferring your account value" in
"Transferring your money among investment options" later in this Prospectus.
CREDITS (for Series CP(SM) contracts)
A credit will also be allocated to your Total account value at the same time
that we allocate your contribution. Credits are allocated to the same
investment options based on the same percentages used to allocate your
contributions. We do not include credits in calculating any of your Guaranteed
benefit bases under the contract, except to the extent that any credits are
part of the Protection with Investment Performance account value, which is used
to calculate the Highest Anniversary Value benefit base or a benefit base reset
in connection with the GIB benefit base or the Roll-up to age 85 benefit base
(used to calculate the "Greater of" death benefit). For more information on how
Credits affect your benefit bases, see "Series CP(SM) Credits and your
Guaranteed benefit bases" later in this section.
The amount of the credit will be either 4% or 5% of each contribution based on
your total first-year contributions.
--------------------------------------------------------------------------------
CREDIT PERCENTAGE
APPLIED TO
FIRST YEAR TOTAL CONTRIBUTIONS CONTRIBUTIONS
--------------------------------------------------------------------------------
Less than $350,000 4%
$350,000 or more 5%
--------------------------------------------------------------------------------
This credit percentage will be credited to your initial contribution and each
subsequent contribution made in the first contract year (after adjustment as
described below), as well as those in the second and later contract years. THE
CREDIT WILL APPLY TO SUBSEQUENT CONTRIBUTIONS ONLY TO THE EXTENT THAT THE SUM
OF THAT CONTRIBUTION AND PRIOR CONTRIBUTIONS TO WHICH NO CREDIT WAS APPLIED
EXCEEDS THE TOTAL WITHDRAWALS MADE FROM THE CONTRACT SINCE THE ISSUE DATE. THE
CREDIT WILL NOT BE APPLIED IN CONNECTION WITH A PARTIAL CONVERSION OF A
TRADITIONAL IRA CONTRACT TO A ROTH IRA CONTRACT.
For example, assume you make an initial contribution of $100,000 to your
contract with the entire amount allocated to the Investment Performance
account. Your Investment Performance account is credited with $4,000 (4% x
$100,000). After that, you decide to withdraw $7,000 from your contract. Later,
you make a subsequent contribution of $3,000 to the Investment Performance
account. You receive no credit on your $3,000 contribution since it does not
exceed your total withdrawals ($7,000). Further assume that you make another
subse-
56 Contract features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
ments ("Lifetime GIB payments") that are calculated by applying a percentage
(which is based on your age at the time your payments begin) to your GIB
benefit base. The GIB also allows you to take certain withdrawals (your "Annual
withdrawal amount") prior to the beginning of your Lifetime GIB payments. Your
Annual withdrawal amount is calculated each contract date anniversary by
applying a percentage ("the Annual Roll-up rate") to your GIB benefit base.
Lifetime GIB payments and your Annual withdrawal amount are described later in
this section. With respect to your GIB, it is important to note the following:
o Once a withdrawal is taken from your Protection with Investment Performance
account, you cannot make additional contributions to your Protection with
Investment Performance account, either directly or through a Special DCA
program. You can, however, continue to make transfers from your Investment
Performance account to the Protection with Investment Performance variable
investment options until such time you make a subsequent contribution to your
Investment Performance account. Scheduled transfers from an existing Special
DCA program will continue through to the program's conclusion; and
o Withdrawals in excess of your Annual withdrawal amount (an "Excess
withdrawal") can greatly reduce the value of your GIB. An Excess withdrawal
that reduces your Protection with Investment Performance account value to
zero will cause your GIB to terminate.
In order to fund your Guaranteed income benefit, you must make contributions or
transfers to the Protection with Investment Performance account. All
allocations to the Protection with Investment Performance account must be made
in accordance with our Custom Selection Rules. The Custom Selection Rules
require that all of your Protection with Investment Performance account value
be allocated according to certain category and investment option limits. ANY
ALLOCATION TO THE "EQUITY" CATEGORY REQUIRES THAT THERE BE A 40% MINIMUM
ALLOCATION TO THE "FIXED INCOME" CATEGORY. This will also limit the amount that
may be allocated to the "AXA Strategic Allocation" Category. For detailed
information on how our Custom Selection Rules work, see "Allocating your
contributions" in "Contract features and benefits" earlier in this Prospectus.
For Series CP(SM) contracts, any credit amounts attributable to your
contributions allocated to the Protection with Investment Performance account
are not included in your GIB benefit base. If you decide to transfer amounts
from your Investment Performance account to your Protection with Investment
Performance variable investment options, only amounts representing
contributions and earnings will increase your GIB benefit base.
The GIB is issued with all eligible contracts unless you tell us you do not
want it (or "opt out") at the time you apply for your Retirement Cornerstone(SM)
contract. Currently, the GIB is issued to owners age 20-75 (ages 20-70 for
Series CP(SM)) and with all contract types except Inherited IRA. If the
contract is jointly owned, eligibility for the GIB will be issued based on the
older owner's age. The GIB cannot be added to your contract later if you decide
to opt-out.
You can drop your GIB at any time prior to funding your Protection with
Investment Performance account. IF YOU FUND THE PROTECTION WITH INVESTMENT
PERFORMANCE ACCOUNT AT ISSUE, YOU CAN DROP YOUR GIB IF YOUR CONTRACT HAS BEEN
IN FORCE FOR AT LEAST FOUR CONTRACT YEARS. It is important to note that if you
decide to drop your GIB, either before or after funding your Protection with
Investment Performance account, your Guaranteed minimum death benefit may be
affected. Please see "Dropping or changing your Guaranteed benefits" later in
this section and Appendix I for more information.
--------------------------------------------------------------------------------
The GIB is issued with all eligible contracts unless you tell us you do not
want it (or "opt out") at the time you complete your application.
--------------------------------------------------------------------------------
When you purchase a contract with the GIB, you can combine it with one of our
Guaranteed minimum death benefits: (i) the Return of Principal death benefit,
(ii) the Highest Anniversary Value death benefit, or (iii) the "Greater of"
death benefit.
There is an additional charge for the GIB which is described under "Guaranteed
income benefit charge" in "Charges and expenses" later in this Prospectus.
If you have the GIB and change ownership of the contract, this benefit will
automatically terminate, except under certain circumstances. See "Transfers of
ownership, collateral assignments, loans and borrowing" in "More information,"
later in this Prospectus.
--------------------------------------------------------------------------------
The Guaranteed income benefit should be regarded as a safety net only.
--------------------------------------------------------------------------------
GIB BENEFIT BASE
Your GIB has a benefit base. Your GIB benefit base is not an account value or
cash value. The GIB benefit base is used to calculate your Lifetime GIB
payments, your Annual withdrawal amount and the charge for the benefit. Your
GIB benefit base is equal to:
o Your initial contribution and any subsequent contributions to the Protection
with Investment Performance variable investment options, either directly or
through a Special DCA program; plus
o Any amounts in a Special DCA program that are designated for future transfers
to the Protection with Investment Performance variable investment options;
plus
o Any transfers to the Protection with Investment Performance variable
investment options; less
o A deduction that reflects any "Excess withdrawal" amounts (plus any
applicable withdrawal charges); plus
o "Deferral bonus Roll-up amount" or any "Annual Roll-up amount", minus a
deduction that reflects any withdrawals up to the Annual withdrawal amount.
(Withdrawal charges do not apply to amounts withdrawn up to the Annual
withdrawal amount.)
-OR--
58 Contract features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
amount adjustment to your GIB benefit base is a primary way to increase the
value of your GIB benefit base. Your Deferral bonus Roll-up amount is
calculated as follows:
o your GIB benefit base on the preceding contract date anniversary, multiplied
by:
o the Deferral bonus Roll-up rate that was in effect on the first day of the
contract year; plus
o a pro-rated Deferral bonus Roll-up amount for any transfer or contribution to
the Protection with Investment Performance variable investment options,
either directly or through a Special DCA program, during the contract year
pro-rated based on the number of days in the contract year after the transfer
or contribution; plus
o a pro-rated Deferral bonus Roll-up amount for any contribution amounts in a
Special DCA program that are designated for future transfers to the
Protection with Investment Performance variable investment options, during
the contract year pro-rated based on the number of days in the contract year
after the contribution.
--------------------------------------
THE GIB BENEFIT BASE STOPS ROLLING UP ON THE CONTRACT DATE ANNIVERSARY FOLLOWING
THE OWNER'S (OR OLDER JOINT OWNER, IF APPLICABLE) 95TH BIRTHDAY.
GIB BENEFIT BASE RESET
Your GIB benefit base will automatically "reset" to equal the Protection with
Investment Performance account value, if higher, every three contract years
from your contract date, up to the contract date anniversary following your
95th birthday. If you choose to fund your Protection with Investment
Performance account after issue, the eligibility for resets every three years
is still based on the contract date and not the date that you first funded the
Protection with Investment Performance account.
For Series CP(SM) contracts, any credit amounts that are part of your
Protection with Investment Performance account value are included in the
calculation of your GIB benefit base reset.
If a reset is not applicable on any eligible contract date anniversary, the GIB
benefit base will not be eligible to be reset again until the next eligible
contract date anniversary. For example, even if the GIB benefit base did not
reset on the third contract date anniversary, it will not be eligible again for
a reset until the sixth contract date anniversary. For jointly-owned contracts,
eligibility to reset the GIB benefit base is based on the age of the older
owner. For non-naturally owned contracts, eligibility is based on the age of
the annuitant or older joint annuitant.
--------------------------------------------------------------------------------
Whether you fund your GIB at contract issue or some later date, the contract
date anniversaries on which your GIB benefit base is eligible for a reset are
the same.
--------------------------------------------------------------------------------
WE RESERVE THE RIGHT TO INCREASE THE FEE FOR THE GIB IF THE GIB BENEFIT BASE
RESETS. Please see the "Fee table" earlier in this Prospectus and "Charges and
expenses" later in this Prospectus for more information about the charge. Your
GIB benefit base will reset automatically unless you opt out. We will notify
you at least 45 days prior to your contract date anniversary if your GIB
benefit base is eligible for a reset and if a fee increase has been declared.
If you do not want your fee to increase, you must notify us in writing at least
30 days prior to the contract date anniversary on which your GIB benefit base
could reset that you want to opt out of the reset. You can send us a written
request to opt back in to automatic resets at a later date. The current fee
will apply upon the next reset. Your GIB benefit base would be eligible for
resets based on the same schedule: every three contract years from the contract
date.
If we do not increase the charge for the GIB when a benefit base resets, the
total dollar amount charged on future contract date anniversaries may still
increase as a result of the reset since the charges may be applied to a higher
GIB benefit base than would have been otherwise applied. See "Charges and
expenses" later in this Prospectus for more information.
ANNUAL WITHDRAWAL AMOUNT
(APPLICABLE PRIOR TO THE BEGINNING OF LIFETIME GIB PAYMENTS)
Your Annual withdrawal amount is calculated on the first day of each contract
year beginning in the second contract year, and is equal to:
o the Annual Roll-up rate in effect at the time, multiplied by;
o the GIB benefit base as of the most recent contract date anniversary.
Beginning in the second contract year after you fund your Protection with
Investment Performance account, if your Lifetime GIB payments have not begun,
you may withdraw up to your Annual withdrawal amount without reducing your GIB
benefit base and adversely affecting your Lifetime GIB payments. IT IS
IMPORTANT TO NOTE THAT WITHDRAWALS IN EXCESS OF YOUR ANNUAL WITHDRAWAL AMOUNT
WILL HAVE A HARMFUL EFFECT ON BOTH YOUR GIB BENEFIT BASE AND LIFETIME GIB
PAYMENTS. AN EXCESS WITHDRAWAL THAT REDUCES YOUR PROTECTION WITH INVESTMENT
PERFORMANCE ACCOUNT TO ZERO WILL CAUSE YOUR GIB TO TERMINATE. You do not have
an Annual withdrawal amount in the first contract year in which you fund the
Protection with Investment Performance account.
A withdrawal from your Protection with Investment Performance account in the
first contract year in which the Protection with Investment Performance account
is funded, will reduce your GIB benefit base on a pro-rata basis. A withdrawal
in excess of your Annual withdrawal amount will always reduce your GIB benefit
base on a pro-rata basis. This is referred to as an "Excess withdrawal". The
reduction of your GIB benefit base on a pro-rata basis means that we calculate
the percentage of your current Protection with Investment Performance account
value that is being withdrawn and we reduce your current GIB benefit base by
the same percentage. A pro-rata withdrawal will have a significant adverse
effect on your benefit base in cases where the Protection with Investment
Performance account value is less than the benefit base. For an example of how
a pro-rata reduction works, see "How withdrawals affect your Guaranteed
benefits" later in this section. A WITHDRAWAL FROM YOUR PROTECTION WITH
INVESTMENT PERFORMANCE ACCOUNT IN THE FIRST CONTRACT YEAR IN WHICH THE
PROTECTION WITH INVESTMENT PERFORMANCE ACCOUNT IS FUNDED IS TREATED JUST LIKE
AN EXCESS WITHDRAWAL.
62 Contract features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
(i) Current annuitization factors (which are subject to change) applied to
his $50,000 Protection with Investment Performance account value,
which currently equals a monthly payment of $1,065, or
(ii) The flat percentage discussed above (in this example, it would be 6%)
applied to his $100,000 GIB benefit base, which equals a Lifetime GIB
monthly payment of $500.
In this example, the contract owner's monthly payment would be $1,065.
(i) Any Investment Performance account value will be annuitized under a
separate contract based on one of the annuity payout options discussed
under "Your annuity payout options" in "Accessing your money" later in
this Prospectus;
(ii) Upon issuing your supplementary contract, your Guaranteed minimum
death benefit and your death benefit in connection with your
Investment Performance account value will be terminated.
If you have the GIB and your Protection with Investment Performance account
value falls to zero due to an Excess withdrawal, we will terminate your GIB and
you will receive no payment or supplementary life annuity contract, even if
your GIB benefit base is greater than zero.
Please see the Hypothetical illustrations in Appendix IV for an example of how
Lifetime GIB payments are calculated when: (i) a hypothetical Protection with
Investment Performance account value falls to zero, and (ii) a contract owner
reaches age 95.
DEATH BENEFIT
For the purposes of determining the death benefit under your Retirement
Cornerstone(SM) Series contract, we treat your Investment Performance account
and any Guaranteed minimum death benefit funded by your Protection with
Investment Performance account differently.
The death benefit in connection with your Investment Performance account is
equal to your Investment Performance account value as of the date we receive
satisfactory proof of death, any required instructions for the method of
payment, and any required information and forms necessary to effect payment.
The death benefit payable in connection with your Protection with Investment
Performance account will be based on the greater of (i) your Protection with
Investment Performance account value, and (ii) the benefit base of your
Guaranteed minimum death benefit.
The total death benefit under your Retirement Cornerstone(SM) contract will
depend on your values in either one or both sides of the contract. If you
selected a Guaranteed minimum death benefit but never funded your Protection
with Investment Performance account, your death benefit will be based on your
Investment Performance account value only. Likewise, if you funded your
Guaranteed minimum death benefit through allocations to the Protection with
Investment Performance account and had no Investment Performance account value,
your death benefit would be based strictly on the Guaranteed minimum death
benefit you selected. Also, it is possible that upon your death, you have value
in both your Investment Performance account and a Guaranteed minimum death
benefit that has been funded through allocations to the Protection with
Investment Performance account. In that case, your beneficiaries would receive
the Investment Performance account value, plus the value of your Guaranteed
minimum death benefit.
GUARANTEED MINIMUM DEATH BENEFITS
At issue, if you are age 0-75 (0-70 for Series CP(SM) you may elect one of our
optional Guaranteed minimum death benefit options (GMDBs) in connection with
your Protection with Investment Performance account:
o Return of Principal death benefit; or
o Highest Anniversary Value death benefit; or
o The "Greater of" death benefit.
The "Greater of" death benefit can only be elected in combination with the GIB.
The Return of Principal death benefit and the Highest Anniversary Value death
benefit are available with or without the GIB. The Highest Anniversary Value
death benefit and "Greater of" death benefit are available at an additional
charge. There is no charge for the Return of Principal death benefit. The
Return of Principal death benefit will be issued with all eligible contracts if
you do not elect either the Highest Anniversary Value or the "Greater of" death
benefit at the time you apply for your Retirement Cornerstone(SM) contract.
When you have a GMDB, you can allocate your contributions to any of the
following:
o Protection with Investment Performance variable investment options
o Investment Performance variable investment options
o Guaranteed interest option
o The account for special dollar cost averaging (Series B and L contracts only)
o The account for special money market dollar cost averaging (Series CP(SM) and
C contracts only)
Only amounts you allocate to the Protection with Investment Performance
variable investment options and amounts in a Special DCA program designated for
the Protection with Investment Performance variable investment options will
fund your GMDB. These amounts will be included in your respective GMDB benefit
base and will become part of your Protection with Investment Performance
account value.
For Series CP(SM) contracts, any credit amounts attributable to your
contributions allocated to the Protection with Investment Performance account
are not included in your respective GMDB benefit base. If you decide to
transfer amounts from your Investment Performance account to your Protection
with Investment Performance variable investment options, only amounts
representing contributions and earnings will increase your GMDB benefit base.
Your death benefit in connection with your Protection with Investment
Performance account is equal to one of the following -- whichever provides a
higher amount:
66 Contract features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
o Your Protection with Investment Performance account value as of the date we
receive satisfactory proof of the owner's (or older joint owner's, if
applicable) death, any required instructions for the method of payment, and
any required information and forms necessary to effect payment; or
o Your applicable GMDB benefit base (discussed below) on the date of the
owner's (or older joint owner's, if applicable) death, adjusted for
subsequent withdrawals (and any withdrawal charges).
RETURN OF PRINCIPAL DEATH BENEFIT
Your Return of Principal guaranteed minimum death benefit is equal to your
Return of Principal death benefit base. This benefit base is not an account
value or cash value. It is equal to:
o Your initial contribution and any subsequent contributions to the Protection
with Investment Performance variable investment options, either directly or
through a Special DCA program; plus
o Any amounts in a Special DCA that are designated for future transfers to the
Protection with Investment Performance variable investment options; plus
o Any amounts transferred to the Protection with Investment Performance
variable investment options, less
o A deduction that reflects any withdrawals you make from the Protection with
Investment Performance variable investment options or from amounts in a
Special DCA program designated for the Protection with Investment Performance
variable investment options (including any withdrawal charges). The amount of
this deduction is described under "How withdrawals affect your Guaranteed
benefits" later in this section. The amount of any withdrawal charge is
described under "Withdrawal charge" in "Charges and expenses" later in this
Prospectus.
Please see Appendix III later in this Prospectus for an example of how the
Return of Principal benefit base is calculated.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
Your Highest Anniversary Value guaranteed minimum death benefit is equal to
your Highest Anniversary Value benefit base. This benefit base is not an
account value or cash value. The calculation of your Highest Anniversary Value
benefit base will depend on whether you have taken a withdrawal from your
Protection with Investment Performance account.
If you have not taken a withdrawal from your Protection with Investment
Performance account, your Highest Anniversary Value benefit base is equal to
one of the following -- whichever provides a higher amount:
o Your initial contribution and any subsequent contributions to the Protection
with Investment Performance account variable investment options, either
directly or through a Special DCA program; plus
o Any amounts in a Special DCA that are designated for future transfers to the
Protection with Investment Performance variable investment options; plus
o Any amounts transferred to the Protection with Investment Performance
variable investment options.
-OR-
o Your highest Protection with Investment Performance account value on any
contract date anniversary up to the contract date anniversary following the
owner's (or older joint owner's, if applicable) 85th birthday (plus any
transfers to the Protection with Investment Performance variable investment
options and contributions to a Special DCA program designated for the
Protection with Investment Performance variable investment options, made
since the most recent "reset" of the Highest Anniversary Value benefit base
that established your Protection with Investment Performance account value as
your new Highest Anniversary Value benefit base).
If you take a withdrawal from your Protection with Investment Performance
account, your Highest Anniversary Value benefit base will be reduced on a
pro-rata basis (including any applicable withdrawal charges). Reduction on a
pro-rata basis means that we calculate the percentage of your Protection with
Investment Performance account value that is being withdrawn and we reduce your
Highest Anniversary Value benefit base by the same percentage. See "How
withdrawals affect your Guaranteed benefits" later in this section. The amount
of any withdrawal charge is described under "Withdrawal charge" in "Charges and
expenses" later in this Prospectus.
At any time after a withdrawal, your Highest Anniversary Value benefit base is
equal to one of the following -- whichever provides a higher amount:
o Your Highest Anniversary Value benefit base immediately following the most
recent withdrawal (plus any transfers to the Protection with Investment
Performance variable investment options made since the most recent "reset" of
the Highest Anniversary Value benefit base that established your Protection
with Investment Performance account value as your new Highest Anniversary
Value benefit base).
-OR-
o Your highest Protection with Investment Performance account value on any
contract date anniversary after the withdrawal up to the contract date
anniversary following the owner's (or older joint owner's, if applicable)
85th birthday (plus any transfers to the Protection with Investment
Performance variable investment options and contributions to a Special DCA
program designated for the Protection with Investment Performance variable
investment options, made since the most recent "reset" of the Highest
Anniversary Value benefit base that established your Protection with
Investment Performance account value as your new Highest Anniversary Value
benefit base).
For Series CP(SM) contracts, any credit amounts that are part of your
Protection with Investment Performance account value are included in the
calculation of your Highest Anniversary Value benefit base.
Please see Appendix II later in this Prospectus for an example of how the
Highest Anniversary Value benefit base is calculated.
"GREATER OF" DEATH BENEFIT
Your "Greater of" guaranteed minimum death benefit has a benefit base. The
benefit base is not an account value or cash value. It is equal to the greater
of:
Contract features and benefits 67
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
o The benefit base computed for the Highest Anniversary Value death benefit
(described immediately above); and
o The Roll-up to age 85 benefit base.
The Roll-up to age 85 benefit base is used only in connection with the "Greater
of" death benefit. It is equal to:
o Your initial contribution and any subsequent contributions to the Protection
with Investment Performance variable investment options, either directly or
through a Special DCA program; plus
o Any amounts in a Special DCA program that are designated for future transfers
to the Protection with Investment Performance variable investment options;
plus
o Any transfers to the Protection with Investment Performance variable
investment options; less
o A deduction that reflects any "Excess withdrawal" amounts (plus any
applicable withdrawal charges); plus
o Any "Deferral bonus Roll-up amount" or "Annual Roll-up amount" minus a
deduction that reflects any withdrawals up to the Annual withdrawal amount.
(Withdrawal charges do not apply to amounts withdrawn up to the Annual
withdrawal amount.)
-OR-
The "reset" value on every third contract date anniversary from the contract
date up to your 85th birthday. (The Roll-up to age 85 benefit base reset is
described below.)
--------------------------------------------------------------------------------
The Deferral bonus Roll-up amount and the Annual Roll-up amounts are amounts
credited to the benefit bases of your Guaranteed benefits on each contract date
anniversary. These amounts are calculated by taking into account your Roll-up
to age 85 benefit base from the preceding contract date anniversary, the
applicable Roll-up rate under your contract, contributions and transfers to the
Protection with Investment Performance account during the contract year and any
withdrawals up to the Annual withdrawal amount during the contract year. The
calculation of both the Deferral bonus Roll-up amount and the Annual Roll-up
amount are discussed later in this section.
--------------------------------------------------------------------------------
In order to select the "Greater of" death benefit, you must also have the GIB.
Beginning in the second contract year after you fund your Protection with
Investment Performance account, if your Lifetime GIB payments under the GIB
have not begun, you may withdraw up to your Annual withdrawal amount without
reducing your Roll-up to age 85 benefit base. However, these same withdrawals
will reduce the Annual Roll-up amount that would otherwise be applied to your
Roll-up to age 85 benefit base at the end of the year. Remember that the
Roll-up amount applicable under your contract does not become part of your
Roll-up to age 85 benefit base until the end of the contract year.
WITHDRAWALS IN EXCESS OF YOUR ANNUAL WITHDRAWAL AMOUNT WILL REDUCE YOUR ROLL-UP
TO AGE 85 BENEFIT BASE ON A PRO-RATA BASIS. SEE "ANNUAL WITHDRAWAL AMOUNT AND
YOUR ROLL-UP TO AGE 85 BENEFIT BASE" LATER IN THIS SECTION.
Every three years from your contract date up to your 85th birthday, your
Roll-up to age 85 benefit base will automatically reset to equal your
Protection with Investment Performance account value if your Protection with
Investment Performance account value is greater than the calculation described
above. The Roll-up to age 85 benefit base reset is described in more detail
below.
For more information, see "Annual Roll-up amount and Annual Roll-up to age 85
benefit base adjustment" later in this Prospectus.
--------------------------------------
ANNUAL ROLL-UP RATE
The Annual Roll-up rate is used to calculate amounts credited to your Roll-up
to age 85 benefit base for the contract year in which the first withdrawal is
made from your Protection with Investment Performance account and all
subsequent years. THE ANNUAL ROLL-UP RATE USED FOR THE ROLL-UP TO AGE 85
COMPONENT OF THE "GREATER OF" DEATH BENEFIT IS ALWAYS THE SAME AS THE ANNUAL
ROLL-UP RATE UNDER YOUR GIB. This rate is calculated using the Ten-Year
Treasuries Rate Formula. See "Annual Roll-up Rate" under "Guaranteed income
benefit" in "Contract features and benefits" for more information regarding
this formula.
A different Roll-up rate is used to calculate amounts credited to your Roll-up
to age 85 benefit base in the contract years prior to the first withdrawal from
your Protection with Investment Performance account -- the Deferral bonus
Roll-up rate, described below.
DEFERRAL BONUS ROLL-UP RATE
The Deferral bonus Roll-up rate is used to calculate amounts credited to your
Roll-up to age 85 benefit base until a withdrawal is made from your Protection
with Investment Performance account.
Beginning in the first contract year in which you fund your Protection with
Investment Performance account, the Roll-up amount credited to your Roll-up to
age 85 benefit base at the end of the contract year (the "Deferral bonus
Roll-up amount") will be calculated using the Deferral bonus Roll-up rate. Once
you take a withdrawal from your Protection with Investment Performance account,
the Deferral bonus Roll-up rate will not be applied at the end of the contract
year in which the withdrawal was taken and will terminate for the life of the
contract. THE DEFERRAL BONUS ROLL-UP RATE USED FOR THE ROLL-UP TO AGE 85
COMPONENT OF THE "GREATER OF" DEATH BENEFIT IS ALWAYS THE SAME AS THE DEFERRAL
BONUS ROLL-UP RATE UNDER YOUR GIB. This rate is calculated using the Deferral
bonus Ten-Year Treasuries Rate Formula. See "Deferral bonus Roll-up Rate" under
"Guaranteed income benefit" in "Contract features and benefits" for more
information regarding this formula.
The Deferral bonus Roll-up rate is designed as an incentive to defer taking
your first withdrawal from your Protection with Investment Performance account
until later contract years while potentially building greater Guaranteed
benefit bases.
NEW BUSINESS RATES. The new business Roll-up rates we set for the Roll-up to
age 85 benefit base are the same as the new business rates we set for the GIB.
See "New business rates" under Guaranteed income benefit in "Contract features
and benefits" for more information.
75 DAY RATE LOCK-IN. When you select the "Greater of" death benefit with the
GIB, the 75 day rate lock in applies to both the Annual Roll-up rate and
68 Contract features and benefits
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
Deferral bonus Roll-up under both Guaranteed benefits. For more information,
including an example of how the 75 day rate lock-in works, see "Guaranteed
income benefit" in "Contract features and benefits."
RENEWAL RATES. The renewal Roll-up rates we set for the Roll-up to age 85
benefit base are the same as the renewal rates we set for the GIB. For more
information, see "Renewal rates" under "Guaranteed income benefit" in "Contract
features and benefits."
NOTIFICATION OF RENEWAL RATES. If you have the "Greater of" death benefit at
issue, your contract will indicate the Annual Roll-up rate and Deferral bonus
Roll-up rate for your first contract year. These rates may not be the same
rates that were illustrated prior to your purchase of the contract. If you
choose to fund your "Greater of" death benefit (and your GIB) after issue, you
can contact a Customer Service Representative to find out the current Annual
Roll-up rate and if applicable, Deferral bonus Roll-up rate for your contract.
In addition, your annual statement of contract values will show your current
Renewal rates as well as the previous year's Annual Roll-up rate and Deferral
bonus Roll-up rate for your contract. The information can also be found online,
through your Online Access Account.
ANNUAL ROLL-UP AMOUNT AND ANNUAL ROLL-UP TO AGE 85 BENEFIT BASE ADJUSTMENT
The Annual Roll-up amount is an amount credited to your Roll-up to age 85
benefit base on each contract date anniversary. This amount is calculated by
taking into account your Roll-up to age 85 benefit base from the preceding
contract date anniversary, the Annual Roll-up rate under your contract,
contributions and transfers to the Protection with Investment Performance
account during the contract year and any withdrawals up to the Annual
withdrawal amount during the contract year. The Annual Roll-up amount
adjustment to your Roll-up to age 85 benefit base is the primary way to
increase the value of the Roll-up to age 85 component of your "Greater of"
death benefit base.
Your Annual Roll-up amount is calculated as follows:
o Your Roll-up to age 85 benefit base on the preceding contract date
anniversary, multiplied by:
o The Annual Roll-up rate that was in effect on the first day of the contract
year; plus
o A pro-rated Roll-up amount for any transfer or contribution to the Protection
with Investment Performance variable investment options, either directly or
through the special money market dollar cost averaging program, during the
contract year pro-rated based on the number of days in the contract year
after the transfer or contribution; plus
o A pro-rated Roll-up amount for any contribution amounts in the account for
special money market dollar cost averaging that are designated for future
transfers to the Protection with Investment Performance variable investment
options, during the contract year pro-rated based on the number of days in
the contract year after the transfer or contribution; less
o Any withdrawals up to the Annual withdrawal amount resulting in a
dollar-for-dollar reduction of the Annual Roll-up amount.
Withdrawals in excess of the Annual withdrawal amount may have a harmful effect
on your Roll-up to age 85 benefit base and "Greater of" death benefit. A
withdrawal in excess of your Annual withdrawal amount will always reduce your
Roll-up to age 85 benefit base on a pro-rata basis. When the annuitant reaches
age 85, withdrawals will reduce your Roll-up to age 85 benefit base on a
dollar-for-dollar basis up to your Annual withdrawal amount. For more
information, see "How withdrawals affect your Guaranteed benefits" later in
this section.
DEFERRAL BONUS ROLL-UP AMOUNT AND ANNUAL ROLL-UP TO AGE 85 BENEFIT BASE
ADJUSTMENT
The Deferral bonus Roll-up amount is an amount credited to your Roll-up to age
85 benefit base on each contract date anniversary provided you have not taken a
withdrawal from your Protection with Investment Performance account. This
amount is calculated by taking into account your Roll-up to age 85 benefit base
from the preceding contract date anniversary, the applicable Deferral bonus
Roll-up rate under your contract, and contributions and transfers to the
Protection with Investment Performance account during the contract year. The
Deferral bonus Roll-up amount adjustment to your Roll-up to age 85 benefit base
is the primary way to increase the value of the Roll-up to age 85 component of
your "Greater of" death benefit base.
Your Deferral bonus Roll-up amount is calculated as follows:
o your Roll-up to age 85 benefit base on the preceding contract date
anniversary, multiplied by:
o the Deferral bonus Roll-up rate that was in effect on the first day of the
contract year; plus
o a pro-rated Deferral bonus Roll-up amount for any transfer or contribution to
the Protection with Investment Performance variable investment options,
either directly or through the special money market dollar cost averaging
program, during the contract year pro-rated based on the number of days in
the contract year after the transfer or contribution; plus
o a pro-rated Deferral bonus Roll-up amount for any contribution amounts in the
account for special money market dollar cost averaging that are designated
for future transfers to the Protection with Investment Performance variable
investment options, during the contract year pro-rated based on the number of
days in the contract year after the transfer or contribution.
ROLL-UP TO AGE 85 BENEFIT BASE RESET
This section describes how the Roll-up to age 85 benefit base reset works in
connection with the calculation of your "Greater of" death benefit.
Your Roll-up to age 85 benefit base will automatically "reset" to equal the
Protection with Investment Performance account value, if higher, every three
contract years from your contract date, up to the contract date anniversary
following your 85th birthday. If you choose to fund your Protection with
Investment Performance account after issue, the eligibility for resets every
three years is still based on the contract date and not the date that you first
funded the Protection with Investment Performance account.
For Series CP(SM) contracts, any credit amounts that are part of your
Protection with Investment Performance account value are included in the
calculation of your Roll-up to age 85 benefit base reset.
Contract features and benefits 69
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
Appendix IV: Hypothetical illustrations
--------------------------------------------------------------------------------
ILLUSTRATION OF ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
MINIMUM BENEFITS
The following tables illustrate the changes in account values (Investment
Performance account value and Protection with Investment Performance account
value), cash value and the values of the "Greater of" death benefit, the
Guaranteed income benefit ("GIB"), and the Annual withdrawal amount, under
certain hypothetical circumstances for the Retirement Cornerstone(SM) Series
contracts (Series B, Series L, Series CP(SM) and Series C). The tables
illustrate the operation of the contract based on a male, issue age 65, who
makes a single $100,000 contribution and takes no withdrawals. Also, the tables
illustrate that $60,000 is allocated to the Protection with Investment
Performance variable investment options, and $40,000 is allocated to the
Investment Performance variable investment options. The amounts shown are for
the beginning of each contract year and assume that all of the account values
are invested in Portfolios that achieve investment returns at constant gross
annual rates of 0% and 6% (i.e., before any investment management fees, 12b-1
fees or other expenses are deducted from the underlying Portfolio assets).
After the deduction of the arithmetic average of the investment management
fees, 12b-1 fees and other expenses of all of the underlying portfolios (as
described below), the corresponding net annual rates of return would be
(3.16)%, 2.84% for the Series B Protection with Investment Performance variable
investment options and (2.46)%, 3.54% for the Series B Investment Performance
variable investment options; (3.51)%, 2.49% for the Series L Protection with
Investment Performance variable investment options and (2.81)%, 3.19% for the
Series L Investment Performance variable investment options; (3.41)%, 2.59% for
the Series CP(SM) Protection with Investment Performance variable investment
options and (2.71)%, 3.29% for the Series CP(SM) Investment Performance
variable investment options; (3.56)%, 2.44% for the Series C Protection with
Investment Performance variable investment options and (2.86)%, 3.14% for the
Series C Investment Performance variable investment options at the 0% and 6%
gross annual rates, respectively.
These net annual rates of return reflect the trust and separate account level
charges, but they do not reflect the charges we deduct from your Protection
with Investment Performance account value annually for the "Greater of" death
benefit and GIB features, as well as the annual administrative charge. If the
net annual rates of return did reflect these charges, the net annual rates of
return shown would be lower; however, the values shown in the following tables
reflect the following contract charges: the "Greater of" death benefit charge,
the GIB charge, any applicable administrative charge and withdrawal charge.
Please note that charges for the "Greater of" death benefit and GIB are always
deducted from the Protection with Investment Performance account value.
The values shown under "Next Year's Annual withdrawal amount" for ages 70
through 95 reflect the Annual withdrawal amount available without reducing the
"Greater of" death benefit base or GIB benefit base. A "0" under the Protection
with Investment Performance account value column at age 95 indicates that the
"Greater of" death benefit has terminated due to insufficient account value.
However, the Lifetime GIB payments under the GIB have begun, and the owner is
receiving lifetime payments.
With respect to fees and expenses deducted from assets of the underlying
portfolios, the amounts shown in all tables reflect (1) investment management
fees equivalent to an effective annual rate of 0.27% for the Protection with
Investment Performance variable investment options (for each Series) and of
0.57% for the Investment Performance variable investment options (for each
Series), (2) an assumed average asset charge for all other expenses of the
underlying portfolios equivalent to an effective annual rate of 1.34% for the
Protection with Investment Performance variable investment options (for each
Series) and 0.44% for the Investment Performance variable investment options
(for each Series) and (3) 12b-1 fees equivalent to an effective annual rate of
0.25% for the Protection with Investment Performance variable investment
options (for each Series) and 0.14% for the Investment Performance variable
investment options (for each Series). These rates are the arithmetic average
for all Portfolios that are available as investment options. In other words,
they are based on the hypothetical assumption that account values are allocated
equally among the Protection with Investment Performance variable investment
options and Investment Performance variable investment options, respectively.
The actual rates associated with any contract will vary depending upon the
actual allocation of the Total account value among the investment options.
These rates do not reflect expense limitation arrangements in effect with
respect to certain of the underlying portfolios as described in the
prospectuses for the underlying portfolios. With these 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.
Appendix IV: Hypothetical illustrations D-1
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE(SM) - SERIES B
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED INCOME BENEFIT
PROTECTION WITH
INVESTMENT INVESTMENT
PERFORMANCE PERFORMANCE
ACCOUNT VALUE ACCOUNT VALUE CASH VALUE(+)
CONTRACT ------------------ ----------------- ------------------
AGE YEAR 0% 6% 0% 6% 0% 6%
------ --------- -------- --------- -------- -------- -------- ---------
65 0 40,000 40,000 60,000 60,000 93,000 93,000
66 1 39,016 41,416 56,918 60,518 88,934 94,934
67 2 38,056 42,882 53,887 61,004 84,943 96,886
68 3 37,120 44,400 50,902 61,454 82,022 99,854
69 4 36,207 45,972 47,959 61,866 78,166 101,838
70 5 35,316 47,599 45,057 62,236 75,373 104,835
71 6 34,447 49,284 42,191 62,561 73,638 108,845
72 7 33,600 51,029 39,357 62,838 71,957 112,867
73 8 32,773 52,835 36,553 63,062 69,327 115,897
74 9 31,967 54,706 33,776 63,230 65,743 117,936
75 10 31,181 56,642 31,021 63,339 62,202 119,981
80 15 27,500 67,403 17,474 62,819 44,974 130,223
85 20 24,276 80,209 3,998 60,047 28,274 140,256
90 25 21,430 95,447 0 55,032 21,430 150,480
95 30 18,917 113,581 0 47,654 18,917 161,235
PROTECT GUARANTEE
NEXT YEAR'S
"GREATER OF" GIB BENEFIT ANNUAL WITHDRAWAL
DEATH BENEFIT BASE AMOUNT
------------------- ------------------- ----------------------------
AGE 0% 6% 0% 6% 0% 6%
------ --------- --------- --------- --------- -------- -------------------
65 60,000 60,000 60,000 60,000 0 0
66 62,400 62,400 62,400 62,400 2,496 2,496
67 64,896 64,896 64,896 64,896 2,596 2,596
68 67,492 67,492 67,492 67,492 2,700 2,700
69 70,192 70,192 70,192 70,192 2,808 2,808
70 72,999 72,999 72,999 72,999 2,920 2,920
71 75,919 75,919 75,919 75,919 3,037 3,037
72 78,956 78,956 78,956 78,956 3,158 3,158
73 82,114 82,114 82,114 82,114 3,285 3,285
74 85,399 85,399 85,399 85,399 3,416 3,416
75 88,815 88,815 88,815 88,815 3,553 3,553
80 108,057 108,057 108,057 108,057 4,322 4,322
85 131,467 131,467 131,467 131,467 5,259 5,259
90 0 131,467 0 159,950 *7,110 6,398
95 0 131,467 0 194,604 7,110 **11,676
----------
(+) The Cash Values shown are equal to the Total account value, less (i) the
total amount of the annual administrative charge, as well as any optional
benefit charges; and (ii) any applicable withdrawal charges.
* Payments of $7,110 will continue as lifetime payments
** Payments of at least $11,676 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
WITH INVESTMENT PERFORMANCE ACCOUNT VALUE, INVESTMENT PERFORMANCE ACCOUNT
VALUE, CASH VALUE AND GUARANTEED BENEFITS FOR A CONTRACT WOULD BE DIFFERENT
FROM THE ONES SHOWN IF THE ACTUAL GROSS RATE OF INVESTMENT RETURN AVERAGED 0%
OR 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL CONTRACT YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED
OVER ANY PERIOD OF TIME. IN FACT, FOR ANY GIVEN PERIOD OF TIME, THE INVESTMENT
RESULTS COULD BE NEGATIVE.
D-2 Appendix IV: Hypothetical illustrations
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE(SM) - SERIES L
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED INCOME BENEFIT
PROTECTION WITH
INVESTMENT INVESTMENT
PERFORMANCE PERFORMANCE
ACCOUNT VALUE ACCOUNT VALUE CASH VALUE(+)
CONTRACT ------------------ ----------------- ------------------
AGE YEAR 0% 6% 0% $6% $0% 6%
------ --------- -------- --------- -------- -------- -------- ---------
65 0 40,000 40,000 60,000 60,000 92,000 92,000
66 1 38,876 41,276 56,708 60,308 87,584 93,584
67 2 37,784 42,593 53,485 60,577 84,268 96,170
68 3 36,722 43,951 50,325 60,803 81,047 98,754
69 4 35,690 45,353 47,225 60,983 77,915 101,337
70 5 34,687 46,800 44,181 61,115 78,868 107,915
71 6 33,712 48,293 41,187 61,194 74,900 109,487
72 7 32,765 49,834 38,242 61,218 71,007 111,052
73 8 31,844 51,423 35,339 61,182 67,183 112,605
74 9 30,950 53,064 32,476 61,083 63,426 114,147
75 10 30,080 54,757 29,649 60,916 59,729 115,673
80 15 26,055 64,065 15,912 58,916 41,967 122,982
85 20 22,590 74,957 2,497 54,494 25,087 129,451
90 25 19,586 87,700 0 47,681 19,586 135,381
95 30 16,980 102,610 0 38,377 16,980 140,987
PROTECT GUARANTEE
NEXT YEAR'S
"GREATER OF" GIB BENEFIT ANNUAL WITHDRAWAL
DEATH BENEFIT BASE AMOUNT
------------------- ------------------- ----------------------------
AGE 0% 6% $0% 6% 0% 6%
------ --------- --------- --------- --------- -------- -------------------
65 60,000 60,000 60,000 60,000 0 0
66 62,400 62,400 62,400 62,400 2,496 2,496
67 64,896 64,896 64,896 64,896 2,596 2,596
68 67,492 67,492 67,492 67,492 2,700 2,700
69 70,192 70,192 70,192 70,192 2,808 2,808
70 72,999 72,999 72,999 72,999 2,920 2,920
71 75,919 75,919 75,919 75,919 3,037 3,037
72 78,956 78,956 78,956 78,956 3,158 3,158
73 82,114 82,114 82,114 82,114 3,285 3,285
74 85,399 85,399 85,399 85,399 3,416 3,416
75 88,815 88,815 88,815 88,815 3,553 3,553
80 108,057 108,057 108,057 108,057 4,322 4,322
85 131,467 131,467 131,467 131,467 5,259 5,259
90 0 131,467 0 159,950 *6,836 6,398
95 0 131,467 0 194,604 6,836 **11,676
----------
(+) The Cash Values shown are equal to the Total account value, less (i) the
total amount of the annual administrative charge, as well as any optional
benefit charges; and (ii) any applicable withdrawal charges.
* Payments of $6,836 will continue as lifetime payments
** Payments of at least $11,676 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
WITH INVESTMENT PERFORMANCE ACCOUNT VALUE, INVESTMENT PERFORMANCE ACCOUNT
VALUE, CASH VALUE AND GUARANTEED BENEFITS FOR A CONTRACT WOULD BE DIFFERENT
FROM THE ONES SHOWN IF THE ACTUAL GROSS RATE OF INVESTMENT RETURN AVERAGED 0%
OR 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL CONTRACT YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED
OVER ANY PERIOD OF TIME. IN FACT, FOR ANY GIVEN PERIOD OF TIME, THE INVESTMENT
RESULTS COULD BE NEGATIVE.
Appendix IV: Hypothetical illustrations D-3
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE - SERIES CP(SM)
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED INCOME BENEFIT
PROTECTION WITH
INVESTMENT INVESTMENT
PERFORMANCE PERFORMANCE
ACCOUNT VALUE ACCOUNT VALUE CASH VALUE(+)
CONTRACT ------------------ ----------------- ------------------
AGE YEAR 0% 6% 0% $6% 0% 6%
------ --------- -------- --------- -------- -------- -------- ---------
65 0 41,600 41,600 62,400 62,400 96,000 96,000
66 1 40,473 42,969 59,087 62,827 91,559 97,795
67 2 39,376 44,382 55,839 63,221 87,215 99,603
68 3 38,309 45,842 52,652 63,576 83,961 102,418
69 4 37,271 47,351 49,523 63,889 80,794 105,239
70 5 36,261 48,909 46,447 64,157 77,708 108,065
71 6 35,278 50,518 43,421 64,376 74,699 110,893
72 7 34,322 52,180 40,440 64,543 71,762 113,723
73 8 33,392 53,896 37,501 64,654 68,893 116,551
74 9 32,487 55,670 34,600 64,706 66,087 119,376
75 10 31,606 57,501 31,732 64,695 63,339 122,196
80 15 27,520 67,603 17,776 63,527 45,295 131,131
85 20 23,984 79,480 4,113 60,036 28,096 139,516
90 25 20,901 93,444 0 54,253 20,901 147,697
95 30 18,215 109,861 0 46,079 18,215 155,940
PROTECT GUARANTEE
NEXT YEAR'S
"GREATER OF" GIB BENEFIT ANNUAL WITHDRAWAL
DEATH BENEFIT BASE AMOUNT
------------------- ------------------- ----------------------------
AGE 0% 6% 0% 6% 0% 6%
------ --------- --------- --------- --------- -------- -------------------
65 60,000 60,000 60,000 60,000 0 0
66 62,400 62,823 62,400 62,400 2,496 2,496
67 64,896 64,896 64,896 64,896 2,596 2,596
68 67,492 67,492 67,492 67,492 2,700 2,700
69 70,192 70,192 70,192 70,192 2,808 2,808
70 72,999 72,999 72,999 72,999 2,920 2,920
71 75,919 75,919 75,919 75,919 3,037 3,037
72 78,956 78,956 78,956 78,956 3,158 3,158
73 82,114 82,114 82,114 82,114 3,285 3,285
74 85,399 85,399 85,399 85,399 3,416 3,416
75 88,815 88,815 88,815 88,815 3,553 3,553
80 108,057 108,057 108,057 108,057 4,322 4,322
85 131,467 131,467 131,467 131,467 5,259 5,259
90 0 131,467 0 159,950 *7,110 6,398
95 0 131,467 0 194,604 7,110 **11,676
----------
(+) The Cash Values shown are equal to the Total account value, less (i) the
total amount of the annual administrative charge, as well as any optional
benefit charges; and (ii) any appli cable withdrawal charges.
* Payments of $7,110 will continue as lifetime payments
** Payments of at least $11,676 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
WITH INVESTMENT PERFORMANCE ACCOUNT VALUE, INVESTMENT PERFORMANCE ACCOUNT
VALUE, CASH VALUE AND GUARANTEED BENEFITS FOR A CONTRACT WOULD BE DIFFERENT
FROM THE ONES SHOWN IF THE ACTUAL GROSS RATE OF INVESTMENT RETURN AVERAGED 0%
OR 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL CONTRACT YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED
OVER ANY PERIOD OF TIME. IN FACT, FOR ANY GIVEN PERIOD OF TIME, THE INVESTMENT
RESULTS COULD BE NEGATIVE.
D-4 Appendix IV: Hypothetical illustrations
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
ILLUSTRATION OF TOTAL ACCOUNT VALUES, CASH VALUES AND CERTAIN GUARANTEED
BENEFITS
VARIABLE DEFERRED ANNUITY
RETIREMENT CORNERSTONE(SM) - SERIES C
$100,000 SINGLE CONTRIBUTION AND NO WITHDRAWALS
MALE, ISSUE AGE 65
BENEFITS:
"GREATER OF" DEATH BENEFIT
GUARANTEED INCOME BENEFIT
Protection with
Investment Investment
Performance Performance
account value account value Cash Value(+)
Contract ------------------ ----------------- -------------------
Age Year 0% 6% 0% 6% 0% 6%
------ --------- -------- --------- -------- -------- --------- ---------
65 0 40,000 40,000 60,000 60,000 100,000 100,000
66 1 38,856 41,256 56,678 60,278 95,534 101,534
67 2 37,745 42,551 53,428 60,516 91,172 103,068
68 3 36,665 43,888 50,243 60,710 86,908 104,598
69 4 35,617 45,266 47,121 60,858 82,738 106,124
70 5 34,598 46,687 44,056 60,956 78,654 107,643
71 6 33,608 48,153 41,046 61,001 74,654 109,154
72 7 32,647 49,665 38,084 60,989 70,731 110,654
73 8 31,714 51,224 35,168 60,917 66,882 112,142
74 9 30,807 52,833 32,294 60,781 63,100 113,614
75 10 29,925 54,492 29,457 60,577 59,382 115,068
80 15 25,854 63,601 15,696 58,374 41,550 121,976
85 20 22,358 74,234 2,293 53,732 24,652 127,966
90 25 19,335 86,644 0 46,685 19,355 133,329
95 30 16,720 101,129 0 37,138 16,720 138,266
Protect Guarantee
Next Year's
"Greater of" GIB benefit Annual withdrawal
death benefit base amount
------------------- ------------------- ----------------------------
Age 0% 6% 0% 6% 0% 6%
------ --------- --------- --------- --------- -------- -------------------
65 60,000 60,000 60,000 60,000 0 0
66 62,400 62,400 62,400 62,400 2,496 2,496
67 64,896 64,896 64,896 64,896 2,596 2,596
68 67,492 67,492 67,492 67,492 2,700 2,700
69 70,192 70,192 70,192 70,192 2,808 2,808
70 72,999 72,999 72,999 72,999 2,920 2,920
71 75,919 75,919 75,919 75,919 3,037 3,037
72 78,956 78,956 78,956 78,956 3,158 3,158
73 82,114 82,114 82,114 82,114 3,285 3,285
74 85,399 85,399 85,399 85,399 3,416 3,416
75 88,815 88,815 88,815 88,815 3,553 3,553
80 108,057 108,057 108,057 108,057 4,322 4,322
85 131,467 131,467 131,467 131,467 5,259 5,259
90 0 131,467 0 159,950 *6,836 6,398
95 0 131,467 0 194,604 6,836 **11,676
----------
(+) The Cash Values shown are equal to the Total account value, less the total
amount of the annual administrative charge, as well as any optional benefit
charges.
* Payments of $6,836 will continue as lifetime payments
** Payments of at least $11,676 will continue as lifetime payments
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE PROTECTION
WITH INVESTMENT PERFORMANCE ACCOUNT VALUE, INVESTMENT PERFORMANCE ACCOUNT
VALUE, CASH VALUE AND GUARANTEED BENEFITS FOR A CONTRACT WOULD BE DIFFERENT
FROM THE ONES SHOWN IF THE ACTUAL GROSS RATE OF INVESTMENT RETURN AVERAGED 0%
OR 6% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL CONTRACT YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED
OVER ANY PERIOD OF TIME. IN FACT, FOR ANY GIVEN PERIOD OF TIME, THE INVESTMENT
RESULTS COULD BE NEGATIVE.
Appendix IV: Hypothetical illustrations D-5
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
Appendix VII: Examples of how withdrawals affect your Guaranteed benefit bases
--------------------------------------------------------------------------------
EXAMPLE #1
As described below, this example assumes the Protection with Investment
Performance account value is LESS THAN the GIB benefit base at the time of the
first withdrawal. Assuming $100,000 is invested in the Protection with
Investment Performance variable investment options, with no additional
contributions, and no transfers, the GIB benefit base and the Guaranteed
minimum death benefit base for an owner age 60 would be calculated as follows:
ASSUMED
DEFERRAL
PROTECTION WITH BONUS
INVESTMENT ROLL-UP RATE/
END OF ASSUMED PERFORMANCE ANNUAL
CONTRACT NET ACCOUNT ROLL-UP
YEAR RETURN VALUE WITHDRAWAL RATE
---------- ----------- ----------------- ----------------- ---------------
0 $100,000
1 3.0% $103,000 $ 0 4.0%
2 4.0% $107,120 $ 0 4.0%
3 6.0% $113,547 $ 0 4.0%
4 6.0% $120,360 $ 0 4.0%
5 7.0% $128,785 $ 0 4.0%
Alternative #1: Owner withdraws the Annual withdrawal amount, which equals $4,913
---------------------------------------------------------------------------------
Year 6 (5.0)% $122,346 $4,913 4.0%
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $4,913(7)
Alternative #2: Owner withdraws $7,000, which is in excess of the Annual withdrawal amount
------------------------------------------------------------------------------------------
Year 6 (5.0)% $122,346 $7,000 4.0%
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $4,829(11)
GUARANTEED
INCOME
BENEFIT GUARANTEED MINIMUM DEATH BENEFITS
------------------- ---------------------------------------------------------------------
HIGHEST
RETURN OF ANNIVERSARY ROLL-UP TO
END OF GIB PRINCIPAL VALUE AGE 85 "GREATER OF"
CONTRACT BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR BASE BASE BASE BASE BASE
---------- ------------------- ----------------- ----------------- ------------------- -------------
0 $100,000(3) $100,000(1) $100,000(2) $100,000(3) $100,000
1 $104,000(3) $100,000(1) $103,000(2) $104,000(3) $104,000
2 $108,160(3) $100,000(1) $107,120(2) $108,160(3) $108,160
3 $113,547(3) $100,000(1) $113,547(2) $113,547(3) $113,547
4 $118,089(3) $100,000(1) $120,360(2) $118,089(3) $120,360
5 $122,813(3) $100,000(1) $128,785(2) $122,813(3) $128,785
Alternative #1: Owner withdraws the Annual withdrawal amount, which equals $4,913
----------------------------------------------------------------------------------------------------
Year 6 $122,813(6) $95,985(4) $123,615(5) $122,813(6) $123,615
YEAR 7 ANNUAL WITHDRAWAL AMOUNT:
Alternative #2: Owner withdraws $7,000, which is in excess of the Annual withdrawal amount
----------------------------------------------------------------------------------------------------
Year 6 $120,717(10) $94,279(8) $121,417(9) $120,717(10) $121,417
YEAR 7 ANNUAL WITHDRAWAL AMOUNT:
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the Guaranteed benefit bases are as follows:
(1) The RETURN OF PRINCIPAL BENEFIT BASE is equal to the initial contribution to
the Protection with Investment Performance variable investment options, or
$100,000.
(2) The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is equal to the greater of the
Protection with Investment Performance account value and the Highest
Anniversary Value benefit base as of the last contract date anniversary.
For example:
o At the end of contract year 3, the Highest Anniversary Value benefit base
is $113,547. This is because the Protection with Investment Per formance
account value ($113,547) is greater than the Highest Anniversary Value
benefit base as of the last contract date anniversary.
(3) The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GIB BENEFIT BASE (the "Roll-up
benefit bases") are equal to the Roll-up benefit bases as of the last
contract date anniversary plus the Deferral bonus Roll-up amount (the
Roll-up benefit bases as of the last contract date anniversary multiplied by
the assumed Deferral bonus Roll-up rate). On the third contract date
anniversary, the Roll-up benefit bases will equal the Protection with
Investment Performance account value, if higher than the prior Roll-up
benefit bases as of the last contract date anniversary, plus the Deferral
bonus Roll-up amount. Beginning in the second contract year after you fund
your Protection with Investment Performance account, if your Lifetime GIB
payments have not begun, you can withdraw up to your Annual withdrawal
amount without reducing your Roll-up benefit bases. However, those same
withdrawals will reduce the Annual Roll-up amount that would otherwise be
applied to the Roll-up benefit bases at the end of the contract year.
Remember that the Roll-up amount applicable under your contract does not
become part of your Roll-up benefit bases until the end of the contract
year.
For example:
o At the end of contract year 2, the Roll-up benefit bases are equal to
$108,160. This is calculated by taking the Roll-up benefit bases as of
the last contract date anniversary $104,000, and multiplying it by the
assumed Deferral bonus Roll-up rate of 4%. ($104,000 x 1.04 = $108,160).
G-1 Appendix VII: Examples of how withdrawals affect your Guaranteed benefit
bases
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
--------------
For both Alternatives below, the Annual withdrawal amount in contract year 6
equals $4,913 (the assumed Annual Roll-up rate (4%) x $122,813 (the GIB benefit
base)).
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS ANNUAL WITHDRAWAL AMOUNT)
The pro-rata calculation for the Return of Principal benefit base and the
Highest Anniversary Value benefit base is as follows: Since the withdrawal
amount of $4,913 equals 4.015% of the Protection with Investment Performance
account value ($4,913 divided by $122,346 = 4.015%), each benefit base would be
reduced by 4.015%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(4) The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (benefit base as of the last contract date anniversary) - $4,015
(4.015% x $100,000) = $95,985;
(5) The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced pro-rata, as follows:
$128,785 (Highest Anniversary Value benefit base as of the last contract
date anniversary) - $5,170 (4.015% x $128,785) = $123,615;
(6) The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GIB BENEFIT BASE are equal to
$122,813, (the Roll-up benefit bases as of the last contract date
anniversary). Since the full Annual withdrawal amount was taken, the Roll-up
benefit bases neither decrease nor increase;
(7) As a result of the withdrawal in contract year 6, the Annual withdrawal
amount in contract year 7 is $4,913 [4% (the assumed Annual Roll-up rate) x
$122,813 (the Roll-up benefit bases as of the sixth contract anniversary)].
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES AN "EXCESS WITHDRAWAL")
The pro-rata calculation for the reduction in the Return of Principal benefit
base and the Highest Anniversary Value benefit base is as follows: Since the
withdrawal amount of $7,000 equals 5.721% of the Protection with Investment
Performance account value ($7,000 divided by $122,346 = 5.721%), each benefit
base would be reduced by 5.721%.
The pro-rata calculation for the reduction in the Roll-up benefit bases is as
follows: $7,000 (the amount of the withdrawal, including any applicable
withdrawal charge) - $4,913 (the Annual withdrawal amount) = $2,087 (the
"Excess withdrawal" amount). Since the amount of the Excess withdrawal equals
1.706% of the Protection with Investment Performance account value ($2,087
divided by $122,346 = 1.706%), the Roll-up benefit bases would be reduced by
1.706%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(8) The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (benefit base as of the last contract date anniversary) - $5,721
(5.721% x $100,000) = $94,279;
(9) The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced pro-rata, as follows:
$128,785 (Highest Anniversary Value benefit base as of the last contract
date anniversary) - $7,368 (5.721% x $128,785) = $121,417;
(10) The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GIB BENEFIT BASE are reduced
pro-rata, as follows: $122,813 (the Roll-up benefit bases as of the last
contract date anniversary) - $2,095 (1.706% x $122,813) = $120,717.
(11) As a result of the Excess withdrawal in contract year 6, the Annual
withdrawal amount in contract year 7 is $4,829 [4% (the assumed Annual
Roll-up rate) x $120,717 (the Roll-up benefit bases as of the sixth
contract anniversary)].
Appendix VII: Examples of how withdrawals affect your Guaranteed benefit bases
G-2
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
EXAMPLE #2
This example assumes the the Protection with Investment Performance account
value is GREATER THAN the GIB benefit base at the time of the first withdrawal.
Assuming $100,000 is invested in the Protection with Investment Performance
variable investment options, with no additional contributions, and no
transfers, the GIB benefit base and the Guaranteed minimum death benefit base
for an owner age 60 would be calculated as follows:
ASSUMED
ANNUAL
PROTECTION WITH DEFERRAL
INVESTMENT BONUS
END OF ASSUMED PERFORMANCE ROLL-UP RATE/
CONTRACT NET ACCOUNT ROLL-UP
YEAR RETURN VALUE WITHDRAWAL RATE
---------- ----------- ----------------- ----------------- ---------------
0 $100,000 $ 0 4.0%
1 3.0% $103,000 $ 0 4.0%
2 4.0% $107,120 $ 0 4.0%
3 6.0% $113,547 $ 0 4.0%
4 6.0% $120,360 $ 0 4.0%
5 7.0% $128,785
Alternative #1: Owner withdraws Annual withdrawal amount, which equals $4,913
-----------------------------------------------------------------------------
Year 6 5.0% $135,224 $4,913 4.0%
YEAR 7 ANNUAL WITHDRAWAL AMOUNT: $4,913
Alternative #2: Owner withdraws $7,000, which is in excess of the Annual withdrawal amount
------------------------------------------------------------------------------------------
Year 6 5.0% $135,224 $7,000 4.0%
Year 7 Annual Withdrawal Amount: $4,837(11)
GUARANTEED
INCOME
BENEFIT GUARANTEED MINIMUM DEATH BENEFITS
------------------- ---------------------------------------------------------------------
HIGHEST
RETURN OF ANNIVERSARY ROLL-UP TO
END OF GIB PRINCIPAL VALUE AGE 85 "GREATER OF"
CONTRACT BENEFIT BENEFIT BENEFIT BENEFIT BENEFIT
YEAR BASE BASE BASE BASE BASE
---------- ------------------- ----------------- ----------------- ------------------- -------------
0 $100,000(3) $100,000(1) $100,000(2) $100,000(3) $100,000
1 $104,000(3) $100,000(1) $103,000(2) $104,000(3) $104,000
2 $108,160(3) $100,000(1) $107,120(2) $108,160(3) $108,160
3 $113,547(3) $100,000(1) $113,547(2) $113,547(3) $113,547
4 $118,089(3) $100,000(1) $120,360(2) $118,089(3) $120,360
5 $122,813(3) $100,000(1) $128,785(2) $122,813(3) $128,785
Alternative #1: Owner withdraws Annual withdrawal amount, which equals $4,913
-----------------------------------------------------------------------------
Year 6 $122,813(6) $ 96,367(4) $124,106(5) $122,813(6) $124,106
YEAR 7 ANNUAL WITHDRAWAL AMOUNT:
Alternative #2: Owner withdraws $7,000, which is in excess of the Annual withdrawal amount
------------------------------------------------------------------------------------------
Year 6 $120,916(10) $ 94,823(8) $122,118(9) $120,916(10) $122,118
YEAR 7 ANNUAL WITHDRAWAL AMOUNT:
CONTRACT YEARS 1-5:
At the end of contract years 1-5, the Guaranteed benefit bases are as follows:
(1) The RETURN OF PRINCIPAL BENEFIT BASE is equal to the initial contribution to
the Protection with Investment Performance variable investment options, or
$100,000.
(2) The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is equal to the greater of the
Protection with Investment Performance account value and the Highest
Anniversary Value benefit base as of the last contract date anniversary.
For example:
o At the end of contract year 4 the Highest Anniversary Value benefit base
is $120,360. This is because the Protection with Investment Per formance
account value ($120,360) is greater than the Highest Anniversary Value
benefit base as of the last contract date anniversary ($113,547).
(3) The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GIB BENEFIT BASE (the "Roll-up
benefit bases") are equal to the Roll-up benefit bases as of the last
contract date anniversary plus the Deferral bonus Roll-up amount (the
Roll-up benefit bases as of the last contract date anniversary multiplied by
the assumed Deferral bonus Roll-up rate). On the third contract date
anniversary, the Roll-up benefit bases will equal the Protection with
Investment Performance account value, if higher than the Roll-up benefit
bases as of the last contract date anniversary plus the Deferral bonus
Roll-up amount. Beginning in the second contract year after you fund your
Protection with Investment Performance account, if your Lifetime GIB
payments have not begun, you can withdraw up to your Annual withdrawal
amount without reducing your Roll-up benefit bases. However, those same
withdrawals will reduce the Annual Roll-up amount that would otherwise be
applied to the Roll-up benefit bases at the end of the contract year.
Remember that the Roll-up amount applicable under your contract does not
become part of your Roll-up benefit bases until the end of the contract
year.
For example:
o At the end of contract year 3, the Roll-up benefit bases are equal to
$113,547. This is because the Protection with Investment Performance
account value ($113,547) is greater than the Roll-up benefit bases as the
last contract date anniversary ($108,160) plus the Deferral bonus Roll-up
amount ($4,326).
For both Alternatives below, the Annual withdrawal amount in contract year 6
equals $4,913 (the assumed Annual Roll-up rate (4%) x $122,813 (the GIB benefit
base)).
G-3 Appendix VII: Examples of how withdrawals affect your Guaranteed benefit
bases
To receive this document electronically, sign up for e-delivery today at
www.axa-equitable.com/green
ALTERNATIVE #1: CONTRACT YEAR 6 (OWNER WITHDRAWS ANNUAL WITHDRAWAL AMOUNT)
The pro-rata calculation for the Return of Principal death benefit base and the
Highest Anniversary Value benefit base is as follows: Since the withdrawal
amount of $4,913 equals 3.633% of the Protection with Investment Performance
account value ($4,913 divided by $135,224 = 3.633%), each benefit base would be
reduced by 3.633%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(4) The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (benefit base as of the last contract date anniversary) - $3,633
(3.633% x $100,000) = $96,367;
(5) The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced pro-rata, as follows:
$128,785 (Highest Anniversary Value benefit base as of the last contract
date anniversary) - $4,679 (3.633% x $128,785) = $124,106;
(6) The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GIB BENEFIT BASE are equal to
$122,813, (the Roll-up benefit bases as of the last contract date
anniversary). Since the full Annual withdrawal amount was taken, the
Roll-up benefit bases neither decrease nor increase;
(7) As a result of the withdrawal in contract year 6, the Annual withdrawal
amount in contract year 7 is $4,913 [4% (the assumed Annual Roll-up rate) x
$122,813 (the Roll-up benefit bases as of the sixth contract anniversary)].
ALTERNATIVE #2: CONTRACT YEAR 6 (OWNER TAKES AN "EXCESS WITHDRAWAL")
The pro-rata calculation for the reduction in the Return of Principal benefit
base and the Highest Anniversary Value benefit base is as follows: Since the
withdrawal amount of $7,000 equals 5.177% of the Protection with Investment
Performance account value ($7,000 divided by $135,224 = 5.177%), each benefit
base would be reduced by 5.177%.
The pro-rata calculation for the reduction in the Roll-up benefit bases is as
follows: $7,000 (the amount of the withdrawal, including any applicable
withdrawal charge) - $4,913 (the Annual withdrawal amount) = $2,087 (the
"Excess withdrawal" amount). Since the amount of the Excess withdrawal equals
1.544% of the Protection with Investment Performance account value ($2,087
divided by $135,224 = 1.544%), the Roll-up benefit bases would be reduced by
1.544%.
At the end of contract year 6, the Guaranteed benefit bases are as follows:
(8) The RETURN OF PRINCIPAL BENEFIT BASE is reduced pro-rata, as follows:
$100,000 (benefit base as of the last contract date anniversary) - $5,177
(5.177% x $100,000) = $94,823;
(9) The HIGHEST ANNIVERSARY VALUE BENEFIT BASE is reduced pro-rata, as follows:
$128,785 (Highest Anniversary Value benefit base as of the last contract
date anniversary) - $6,667 (5.177% x $128,785) = $122,118;
(10) The ROLL-UP TO AGE 85 BENEFIT BASE AND THE GIB BENEFIT BASE are reduced
pro-rata, as follows: $122,813 (the Roll-up benefit bases as of the last
contract date anniversary) - $1,897 (1.544% x $122,813) = $120,916.
(11) As a result of the Excess withdrawal in contract year 6, the Annual
withdrawal amount in contract year 7 is $4,837 [4% (the assumed Annual
Roll-up rate) x $120,916 (the Roll-up benefit bases as of the sixth
contract anniversary)].
Appendix VII: Examples of how withdrawals affect your Guaranteed benefit bases
G-4