The Personal Income BenefitSM is designed to help clients address the impact of longevity, market volatility, and inflation on retirement income.
Offered within AXA Equitable's EQUI-VEST® series of variable deferred annuities for employer-sponsored retirement plans, the Personal Income BenefitSM is an optional guaranteed withdrawal feature that can be elected for an additional fee. Clients must be between ages 45 and 85 and have an EQUI-VEST® variable deferred annuity to enroll in this feature.
A variable deferred annuity is a long-term financial product that is designed for retirement purposes. In essence, it is a contractual agreement in which payments are made to an insurance company, which agrees to pay an income stream or a lump-sum amount at a later date. Investments in a variable annuity are subject to market risk, including loss of principal.
The Guaranteed Annual Withdrawal Amount (GAWA) under the Personal Income Benefit is determined, in part, based on a rate applied to contributions and amounts transferred to the Personal Income Benefit variable investment options from the other EQUI-VEST® investment options.
The rate applied varies depending on whether it is a contribution (e.g., payroll, rollover, direct transfer or contract exchange) or transfer from other EQUI-VEST® investment options, and the date the contribution or investment option transfer is made.
In addition, any investment gains in the Personal Income BenefitSM account value also have the potential to increase the GAWA. This is called an Annual Ratchet Increase. An Annual Ratchet calculation may take place on your contract (or participation) date anniversary. It compares your current Personal Income BenefitSM account value to your "Ratchet Base," which is the total of all of your Personal Income BenefitSM contributions, Ratchet amounts, and transfer amounts up to that point in time (less any early or excess withdrawals). A Ratchet Increase occurs when your Personal Income BenefitSM account value is greater than your Ratchet Base - it equals the difference between the two values multiplied by your average withdrawal percentage.
AXA Equitable tracks your Guaranteed Annual Withdrawal Amount throughout the year, so you always know what your benefit is at any point in time.
The Guaranteed Withdrawal Rate and the Guaranteed Transfer Withdrawal Rate for the Personal Income BenefitSM for EQUI-VEST® series 201 and EQUI-VEST® StrategiesSM series 900 and series 901 are shown below. Rates are subject to change.
The Guaranteed Withdrawal Rate is calculated using the "Ten-Year Treasuries Formula Rate." The rate can be as high as 7%, and will never be less than 2.5%.
For each calendar quarter, the Ten-Year Treasuries Formula Rate is the average of the rates for the ten-year U.S. Treasury notes on each day for which such rates are reported during the 20 calendar days ending on the 15th of the last month of the preceding calendar quarter plus an age-based spread.
The Guaranteed Withdrawal Rate is applied to all payroll contributions that are periodically remitted to the Personal Income BenefitSM variable investment options, which include pre-tax and Roth contributions. Employer contributions can also be allocated to this feature (if offered under the plan).
In its sole discretion, AXA Equitable may declare a rate greater, but not less than the rate generated by the GWR calculation.
The Guaranteed Transfer Withdrawal Rate is set on the first business day of each month. The rate can be as high as 7% and will never be less than 2.5%.
The Guaranteed Transfer Withdrawal Rate1 is applied to all investment option transfers from the Non-Personal Income BenefitSM Investment Options to the Personal Income BenefitSM variable investment options, contributions made in a lump sum (including amounts attributable to contract exchanges and direct transfers from other funding vehicles under the Plan) and rollovers.
You can begin taking Guaranteed Annual Withdrawal Amount payments any time after you reach age 59Ã‚Â½, subject to plan rules. The withdrawals will be taxed the same as any other EQUI-VEST® distribution. Your age when you start Guaranteed Annual Withdrawal Amount payments will affect the amount of your benefit.
Your Guaranteed Annual Withdrawal Amount is reduced if payments begin before age 65; it is increased if payments begin after age 65.
Please note the Personal Income BenefitSM is not appropriate if the account owner does not intend to take withdrawals prior to annuitization.
Early withdrawals from your Personal Income BenefitSM account value or withdrawals from your Personal Income BenefitSM account value that exceed your Guaranteed Annual Withdrawal Amount may significantly reduce or eliminate the value of the Personal Income BenefitSM.
Contact the EQUI-VEST® Customer Service Center at (800) 628-6673, email Customer Service, or contact your financial professional.
This page is intended for informational purposes only. You should make annuity purchase decisions based on all features of the contract or certificate. This page is not a complete description of the Personal Income BenefitSM feature or the EQUI-VEST® contract.
EQUI-VEST® is a variable deferred annuity that can be used to fund a tax-deferred retirement plan. Annuities used to fund these plans do not offer any extra tax benefits. If you are buying an EQUI-VEST® variable deferred annuity to fund a plan, you should do so for its features and benefits other than tax deferral. There are contract limitations, fees, and charges associated with variable deferred annuities, which include, but are not limited to, mortality and expense risk charges, withdrawal charges, and administrative fees. For costs and complete details, contact a financial professional.
Please consider the charges, risks, expenses, and investment objectives before purchasing a variable annuity. For a prospectus, please click the appropriate link above or contact your financial professional. Read the prospectus carefully before you invest or send money.
The Personal Income BenefitSM is offered in EQUI-VEST® series 201 and, subject to employer approval, EQUI-VEST® StrategiesSM series 900 and 901 contracts. The Personal Income BenefitSM is not available in all states or in all plans. Guarantees are based on the claims-paying ability of AXA Equitable.
Variable annuities are subject to market risk, including loss of principal. Withdrawals from annuities are subject to normal income tax treatment and if taken prior to age 59Ã‚Â½ may be subject to an additional 10% federal income tax penalty. The contingent withdrawal charge is 5% over a six-year period for the Series 201 product. Please see the appropriate prospectus for the withdrawal charge scale for the other EQUI-VEST® series. AXA Equitable may discontinue the acceptance of, and/or place limitations on contributions and transfers into the contract and/or certain investment options.
EQUI-VEST® is a registered service mark and EQUI-VEST® StrategiesSM is a service mark of and both are issued by AXA Equitable Life Insurance Company, New York, NY.
EQUI-VEST® variable annuities are issued by AXA Equitable Life Insurance Company (NY, NY) and are co-distributed by affiliates AXA Advisors, LLC, and AXA Distributors, LLC. AXA Equitable, AXA Advisors, and AXA Distributors do not provide legal or tax advice.
All guarantees and payments are based on the claims-paying ability of AXA Equitable.
Contract form #'s: 2006BASE-I-A, 2006BASE-I-B, 2004TSAGAC, 2004EDCGAC, 2008TSAGAC901, 2009EDCGAC901, 2009401aGAC901 and any state variations
Contract endorsement form #s: 2006BASE-A, 2006BASE-B, 2004TSACERT-A, 2004TSACERT-B, 2004EDCCERT-A, 2004EDCCERT-B, 2008TSA901-A, 2008TSA901-B, 2009EDC901-A, 2009EDC901-B, 2009401a901-A, 2009401a901-B and any state variations
Certificate endorsement form #s: 2012RDPIB, 2012RDPIBG and any state variations
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1 Sick pay and deferred retirement option plan (DROP) contributions receive the Guaranteed Transfer Withdrawal Rate.
AXA Equitable Life Insurance Company (NY, NY)