Surrender-Charge Period Deferred annuities are designed to be long-term retirement savings. Although all or a portion of the funds may be withdrawn at any time, withdrawals and surrenders may face a charge during the surrender-charge period. This is calculated as a percentage of the withdrawal amount.
ECI 5
Contract Year
1
2
3
4
5
Surrender Charge
9.4%
8.5% 7.5%
6.5% 5.5%
California Surrender Charge
8% 7% 6% 5% 4%
ECI 7
Contract Year
1
2
3
4
5
6
7
Surrender Charge
9.4%
8.5% 7.5%
6.5% 5.5%
4.5%
3.5%
California Surrender Charge
8% 7% 6% 5% 4% 3%
2%
Market Value Adjustment A market value adjustment applies to withdrawals and surrenders that are subject to a surrender charge. We base the adjustment on a formula that takes into account changes in the MVA Index at that time. We will waive the MVA when the surrender charge is waived. The MVA can increase or decrease the surrender value of the annuity. Generally, if interest rates rise after the beginning of the market value adjustment period, the MVA will decrease the surrender value. If interest rates have fallen, the MVA will increase the surrender value. MVA is not available in California. Minimum Value Guarantee During the surrender-charge period and throughout the contract, minimum values of the annuity are guaranteed. You will never receive less than the minimum contract values over the life of the contract. The annuity contract surrender value is guaranteed to equal, or exceed, the contractual minimum values in the contract. The Standard applies a formula to ensure that the surrender value meets, or exceeds, these contractual minimum values — even if surrender charges and market value adjustments have been applied.
At all times, you are guaranteed to receive an annuity value that meets or exceeds minimum required values.
Enhanced Choice Index
9
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