• Withdrawal Phase —During the withdrawal phase, you will receive a guaranteed income stream of your FlexMark Select accumulation value. You can begin payments once you reach age 50 and after the rider has been in force for one year. You have the choice of receiving annual, semiannual, quarterly, or monthly withdrawals. When you elect to begin receiving withdrawal payments, the greater of the PAV or the policy’s accumulation value plus any vested bonus account is used as the benefit base, a value that is multiplied by your lifetime distribution factor to determine your Lifetime Withdrawal Benefit Amount (LWBA).
Your lifetime distribution factor depends on the attained age and gender of the youngest covered person at the beginning of the withdrawal phase, payout option chosen, whether income is based on a single life or joint spousal option, and whether your annuity is held within a qualified plan subject to the Employee Retirement Income Security Act (ERISA). For FlexMark Select annuities issued within a SEP or SIMPLE ERISA qualified plan, and on all plan types in Massachusetts and Montana, unisex distribution factors apply. For the distribution factor applicable to your situation, please refer to your policy or ask your insurance professional.
The LWBA is your maximum annual payment under the rider. If you take an excess withdrawal, which is any withdrawal greater than the LWBA, the benefit base will be reduced, which will, in turn, reduce your payments. The reduction in the benefit base due to an excess withdrawal may be greater than the dollar amount of the excess withdrawal. Each year during the withdrawal phase, you have the opportunity for a step-up, which is an increase in the benefit base. If the policy’s accumulation value plus any vested bonus account is greater than the benefit base on any rider anniversary, the benefit base will increase, or step up, to equal the policy’s accumulation value plus any vested bonus
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