Market value adjustment (MVA) Your contract also includes a market value adjustment feature – which may decrease or increase your surrender value depending on the change in the index value of the market value adjustment external index since your annuity purchase. Due to the mechanics of a market value adjustment, surrender values generally decrease as the market value adjustment external index rises or remains constant. When the market value adjustment external index decreases enough over time, the surrender value generally increases. However, the market value adjustment is limited to the surrender charge or the interest credited to the accumulation value in all states except California . In California , the market value adjustment is limited to the surrender charge or 0.50% of the accumulation value at the time of surrender. This adjustment is applied only during the market value adjustment period to surrenders exceeding the applicable penalty-free allowance.
Surrender charges During the surrender charge period, a surrender charge is assessed on any amount withdrawn, as a partial or full surrender, that exceeds the penalty-free amount and may result in a loss of premium. Additional premiums deposited into existing contracts will maintain the surrender charge schedule set forth at policy issue date. Certain annuity payout options may incur a surrender charge. A surrender during the surrender charge period could result in a loss of premium. Surrender charges may vary by state.
Surrender charge schedule Contract year 10-year 1 10% 2 10% 3 10% 4 10% 5 10% 6 9% 7 8% 8 7% 9 6% 10 4% 11+ 0% Surrender charge schedule state variations
10-year AK, CT, DE, HI, ID, IL, MA, MD, MN, MO, MT, NH, NJ, NV, OH, OK, OR, PA, SC, TX, UT, VA, WA
Contract year
10-year CA*
1
9% 9% 8% 7% 6% 5% 4% 3% 2%
8%
2 3 4 5 6 7 8 9
7.45% 6.5%
5.5%
4.55% 3.55% 2.55%
1.5%
0.50% 0.44%
10
1%
11+
0%
0%
*For California: The surrender charge percentage in the 10th contract year will decrease 0.04% monthly until the surrender charge equals 0.00%. The decrease will occur on the same day in each month as the date of the contract anniversary; if the date does not exist for a given month, the date for that month will be the last calendar day of the month. A surrender during the surrender charge period could result in a loss of premium.
32754Z
12
REV 1-24
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