424B3: Prospectus [Rule 424(b)(3)]
Published on
Pruco Life Insurance Company
Strategic Partners Annuity One
Strategic Partners Plus
Strategic Partners Advisor
Strategic Partners FlexElite
Strategic Partners Select
Supplement, dated November 20, 2006
To
Prospectuses, dated May 1, 2006
For each of the above-referenced prospectuses, this supplement reflects certain changes to the underlying mutual funds as well as
disclosure reflecting the maximum charge for the Guaranteed Minimum Income Benefit (available under Strategic Partners Annuity One,
Strategic Partners Plus, and Strategic Partners FlexElite), the Lifetime Five Income Benefit (available under Strategic Partners
Annuity One, Strategic Partners Plus, Strategic Partners FlexElite, and Strategic Partners Advisor), and the Spousal Lifetime Five
Income Benefit (available under Strategic Partners FlexElite).
In the Summary of Contract Expenses section of the prospectus for each of Strategic Partners Annuity One and Strategic Partners Plus,
we revise the line item pertaining to GMIB to read as follows:
Maximum Annual Guaranteed Minimum Income Benefit Charge and
Charge Upon Certain Withdrawals -
as a percentage of average GMIB Protected Value* 1.00%
Annual Guaranteed Minimum Income Benefit Charge and
Charge Upon Certain Withdrawals -
as a percentage of average GMIB Protected Value (current charge) 0.25%
* We reserve the right to increase the charge to the maximum indicated upon any new election of the benefit.
In the table entitled Periodic Account Expenses, Insurance and Administrative Expenses with the Indicated Benefits, we revise the
line items pertaining to the death benefit options and Lifetime Five to read as follows. In addition, we add a footnote (which
appears immediately after "Insurance And Administrative Expenses With The Indicated Benefits"):
Contract Contract without
with Credit
Credit (version under which bonus
(bonus credits generally not credits vest over 7 years)
recapturable after
expiration of free look
period)
Maximum charge for Lifetime Five* 1.50% 1.50%
Lifetime Five Income Benefit (current charge) 0.60% 0.60%
Base Death Benefit 1.50% 1.40%
Guaranteed Minimum Death Benefit Option - Roll-Up or Step-Up 1.70% 1.60%
Guaranteed Minimum Death Benefit Option - Greater of Roll-Up 1.80% 1.70%
or Step-Up
*In our original state filings for this benefit, we set forth maximum charges that we now are in the process of amending.
Specifically, we have commenced filings with the states to establish the 1.50% maximum charge depicted above - - for both
existing contracts and new-issue contracts. As contemplated by those filings, we have the right to increase the charge for this
benefit up to the 1.50% maximum upon a step-up, or for a new election of each such benefit. However, we have no present
intention of increasing the charge for this benefit to that maximum level.
With respect to the Strategic Partners FlexElite prospectus of Pruco Life (version of contract sold prior to May 1, 2003 or upon
subsequent state approval), in the table entitled Periodic Account Expenses, Insurance and Administrative Expenses with the
Indicated Benefits, we revise the line items pertaining to the death benefit options, the GMIB option, Lifetime Five, and
Spousal Lifetime Five to read as follows. In addition, we add a footnote (which appears immediately after "Insurance And
Administrative Expenses With The Indicated Benefits"):
Maximum charge for Lifetime Five* 1.50%
Maximum charge for Spousal Lifetime Five* 1.50%
Lifetime Five Income Benefit (current charge) 0.60%
Spousal Lifetime Five Income Benefit (current charge) 0.75%
Base Death Benefit 1.70%
Guaranteed Minimum Death Benefit Option - Roll-Up or Step-Up 1.90%
Guaranteed Minimum Death Benefit Option - Greater of Roll-Up or Step-Up 2.00%
Maximum Annual Guaranteed Minimum Income Benefit Charge and Charge
Upon Certain Withdrawals - as a percentage of average GMIB Protected Value** 1.00%
Annual Guaranteed Minimum Income Benefit Charge and Charge Upon
Certain Withdrawals - as a percentage of average GMIB Protected Value
(current charge) 0.45%
*In our original state filings for each of these benefits, we set forth maximum charges that we now are in the process of
amending. Specifically, we have commenced filings with the states to establish the 1.50% maximum charge depicted above - - for
both existing contracts and new-issue contracts. As contemplated by those filings, we have the right to increase the charge for
each of these benefits up to the 1.50% maximum upon a step-up, or for a new election of each such benefit. However, we have no
present intention of increasing the charge for those benefits to that maximum level.
** We reserve the right to increase the charge to the maximum indicated upon any reset of the benefit or any new election of the benefit.
In the Summary of Contract Expenses section of the prospectus for Strategic Partners Advisor, under Insurance and Administrative
Expenses, we add line items that set forth the maximum charge for the Lifetime Five Income Benefit and the current charge for
Lifetime Five:
Maximum charge for Lifetime Five Income Benefit* 1.50%
Current charge for Lifetime Five Income Benefit* 0.60%
*The charge for the Lifetime Five Income Benefit is imposed based on the value of assets in the variable investment options
only. In our original state filings for this benefit, we set forth a maximum charge that we now are in the process of amending.
Specifically, we have commenced filings with the states to establish the 1.50% maximum charge depicted above - - for both
existing contracts and new-issue contracts. As contemplated by those filings, we have the right to increase the charge for this
benefit up to the 1.50% maximum upon a step-up, or for a new election of the benefit. However, we have no present intention of
increasing the charges for this benefit to that maximum level.
In Section 2 of each prospectus, we make the following change to the chart setting forth a brief description of each variable
investment option, to reflect a subadviser name change:
o SP Small Cap Value Portfolio, AST Small Cap Value Portfolio, and Prudential Series Fund Equity Portfolio. Salomon Brothers
Asset Management will change its name to ClearBridge Advisors, LLC, effective in December 2006.
In section 2 of each prospectus, we revise the investment objectives/policies section, and portfolio adviser/sub-adviser section for
two Portfolios to read as follows. These new descriptions reflect the addition of sub-advisers as well as revisions to
non-fundamental investment policies:
o SP LSV International Value Portfolio:
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISER/
TYPE SUB-ADVISER
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
International SP International Value Portfolio (formerly SP LSV International Value Portfolio): seeks LSV Asset Management,
capital growth. The Portfolio normally invests at least 80% of the Portfolio's investable Thornburg Investment
assets (net assets plus borrowings made for investment purposes) in the equity securities of Management, Inc.
Equity companies in developed countries outside the United States that are represented in the MSCI
EAFE Index.
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
o SP William Blair International Growth Portfolio
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISER/
TYPE SUB-ADVISER
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
International SP International Growth Portfolio (formerly, SP William Blair International Growth Marsico Capital
Portfolio): seeks long-term capital appreciation. The Portfolio invests primarily in Management LLC,
equity-related securities of foreign issuers. The Portfolio invests primarily in the common William Blair &
stock of large and medium-sized foreign companies, although it may also invest in companies of Company, LLC
all sizes. Under normal circumstances, the Portfolio invests at least 65% of its total assets
Equity in common stock of foreign companies operating or based in at least five different countries,
which may include countries with emerging markets. The Portfolio looks primarily for stocks of
companies whose earnings are growing at a faster rate than other companies or which offer
attractive growth potential.
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
This prospectus supplement is intended to amend the prospectus for the annuity you own, and is not intended to be a prospectus
or offer for any annuity listed here that you do not own.
SPVASUP5
Pruco Life Insurance Company
Strategic Partners Annuity One 3
Strategic Partners Plus 3
Strategic Partners FlexElite
Supplement, dated November 20, 2006
To
Prospectuses, dated May 1, 2006
This supplement makes the following changes:
o adds the Highest Daily Lifetime Five Benefit to Strategic Partners Annuity One 3, Strategic Partners Plus 3 and Strategic
Partners FlexElite of Pruco Life Insurance Company ("Pruco Life"); and
o for each of the above-referenced prospectuses, reflects certain changes to the underlying mutual funds; and
o for each of the above-referenced prospectuses, sets forth the maximum charge for the guaranteed minimum income benefit and
certain other optional benefits.
TABLE OF CONTENTS
As a new entry within the line item entitled "Section 5: What Is The Lifetime Five Income Benefit?", we add a line item for Highest
Daily Lifetime Five.
As a new entry at the end of the Table of Contents, we add a reference to Appendix C, entitled "Asset Transfer Formula Under Highest
Daily Lifetime Five Benefit."
GLOSSARY
o We add a definition for "Benefit Fixed Rate Account", that reads as follows: "An investment option offered as part of this
contract that is used only if you have elected the optional Highest Daily Lifetime Five Benefit. Amounts allocated to the
Benefit Fixed Rate Account earn a fixed rate of interest, and are held within our general account. You may not allocate
purchase payments to the Benefit Fixed Rate Account. Rather, contract value is transferred to the Benefit Fixed Rate
Account only under the asset transfer feature of the Highest Daily Lifetime Five Benefit."
o We revise the first sentence of the definition of "Annual Income Amount" to state: "Under the terms of the Lifetime Five
Income Benefit and the Highest Daily Lifetime Five Benefit, an amount that you can withdraw each year as long as the
annuitant lives."
o We revise the first sentence of the definition of "Excess Income/Excess Withdrawal" to state: "Under the Lifetime Five
Income Benefit, Spousal Lifetime Five Income Benefit, and Highest Daily Lifetime Five Benefit, Excess Income refers to
cumulative withdrawals that exceed the Annual Income Amount."
o We add a definition for "Highest Daily Lifetime Five Benefit" that reads as follows: "An optional feature available for an
additional charge that guarantees your ability to withdraw amounts equal to a percentage of a principal value called the
Protected Withdrawal Value. Subject to our rules regarding the timing and amount of withdrawals, we guarantee these
withdrawal amounts, regardless of the impact of market performance on your contract value."
o We revise the definition of "Protected Withdrawal Value" to read as follows: "Under the Lifetime Five Income Benefit,
Spousal Lifetime Five Income Benefit, and Highest Daily Lifetime Five Benefit, an amount that we guarantee regardless of the
investment performance of your contract value. As discussed in Section 5, Protected Withdrawal Value is determined one way
with respect to the Lifetime Five Income Benefit and the Spousal Lifetime Five Income Benefit, and another way for the
Highest Daily Lifetime Five Benefit."
SUMMARY
o We revise the last paragraph of the Section 3 portion of the Summary to read as follows: "The Lifetime Five Income Benefit,
Spousal Lifetime Five Income Benefit, and Highest Daily Lifetime Five Benefit (discussed in Section 5) and the Income
Appreciator Benefit (discussed in Section 6) each may provide an additional amount upon which your annuity payments are
based."
o We add the following as the last paragraph of the Section 5 portion of the Summary, to read as follows: "Finally, we offer
a benefit called the Highest Daily Lifetime Five Benefit. Highest Daily Lifetime Five is similar to our Lifetime Five and
Spousal Lifetime Five benefits, in that under each such benefit, there is a "protected withdrawal value" that serves as the
basis for withdrawals you can make. As we discuss in more detail later, we guarantee this protected withdrawal value, even
if your contract value declines. Thus, as a participant in one of these benefits, you are assured of a certain amount that
you can withdraw, even if there is a significant decline in the securities markets. Highest Daily Lifetime Five Benefit
differs from Lifetime Five and Spousal Lifetime Five in that (a) the Protected Withdrawal Value is determined based on the
highest daily contract value and (b) we require you to participate in an asset transfer program, under which your contract
value may be transferred periodically between the variable investment options and the Benefit Fixed Rate Account (which is
part of our general account). We operate the asset transfer program under a formula, which is described in the portion of
Section 5 concerning the Highest Daily Lifetime Five Benefit. In addition, in Appendix C, we set out the formula itself.
As discussed in Section 5, when you elect Highest Daily Lifetime Five, the asset transfer formula is made a part of your
annuity contract, and thus may not be altered thereafter. However, we do reserve the right to amend the formula for
new-issued annuity contracts that elect Highest Daily Lifetime Five and for existing contracts that elect the benefit in the
future. As we discuss in more detail later in this prospectus, this required asset transfer program helps us manage our
financial exposure under Highest Daily Lifetime Five, by moving assets out of the variable investment options in the event
of securities market declines. In essence, we seek to preserve the value of these assets, by transferring them to a more
stable account. Of course, the formula also contemplates the transfer of assets from the Benefit Fixed Rate Account to the
variable investment options in certain other scenarios. "
o We add the following as the last line item in the bullet within the Section 8 portion of the Summary concerning insurance
and administrative costs:
"- 0.60% if you choose the Highest Daily Lifetime Five Benefit. This charge is in addition to the charge for the applicable
death benefit."
SUMMARY OF CONTRACT EXPENSES
o With respect to the Strategic Partners Annuity One 3 and Strategic Partners Plus 3 prospectuses of Pruco Life, in the table
entitled Periodic Account Expenses, Insurance and Administrative Expenses with the Indicated Benefits, we revise the line
items pertaining to the death benefit options, the GMIB option, Lifetime Five, and Spousal Lifetime Five to read as follows,
and add a line item for Highest Daily Lifetime Five. In addition, we add a footnote (which appears immediately after
"Insurance And Administrative Expenses With The Indicated Benefits"):
Contract Contract
With Without
Credit Credit
Maximum charge for Lifetime Five* 1.50% 1.50%
Maximum charge for Spousal Lifetime Five* 1.50% 1.50%
Maximum charge for Highest Daily Lifetime Five* 1.50% 1.50%
Lifetime Five Income Benefit (current charge) 0.60% 0.60%
Spousal Lifetime Five Income Benefit (current charge) 0.75% 0.75%
Highest Daily Lifetime Five Income Benefit (current charge) 0.60% 0.60%
Base Death Benefit 1.50% 1.40%
Guaranteed Minimum Death Benefit Option - Roll-Up or Step-Up 1.75% 1.65%
Guaranteed Minimum Death Benefit Option - Greater of Roll-Up
or Step-Up 1.85% 1.75%
Highest Daily Value Death Benefit 2.00% 1.90%
Maximum Annual Guaranteed Minimum Income Benefit Charge and
Charge Upon Certain Withdrawals as a percentage of average GMIB
Protected Value** 1.00% 1.00%
Annual Guaranteed Minimum Income Benefit Charge and
Charge Upon Certain Withdrawals (for contracts sold on or
after January 20, 2004 or upon subsequent state approval) -
as a percentage of average GMIB Protected Value (current charge) 0.50% 0.50%
*The charge for the Lifetime Five Income Benefit (and, if available under your contract, Spousal Lifetime Five and Highest Daily
Lifetime Five) is imposed based on the value of assets in the variable investment options only. In our original state filings for
each of these benefits, we set forth maximum charges that we now are in the process of amending. Specifically, we have commenced
filings with the states to establish the 1.50% maximum charge depicted above - - for both existing contracts and new-issue
contracts. As contemplated by those filings, we have the right to increase the charge for each of these benefits up to the 1.50%
maximum upon a step-up, or for a new election of each such benefit. However, we have no present intention of increasing the charges
for those benefits to that maximum level.
** We reserve the right to increase this charge up to the maximum indicated upon any reset of the benefit or new election.
o With respect to the Strategic Partners FlexElite prospectus of Pruco Life (version of contract sold on or after May 1, 2003
or upon subsequent state approval), in the table entitled Periodic Account Expenses, Insurance and Administrative Expenses
with the Indicated Benefits, we revise the line items pertaining to the death benefit options, the GMIB option, Lifetime
Five, and Spousal Lifetime Five to read as follows, and add a line item for Highest Daily Lifetime Five. In addition, we
add a footnote (which appears immediately after "Insurance And Administrative Expenses With The Indicated Benefits"):
Maximum charge for Lifetime Five* 1.50%
Maximum charge for Highest Daily Lifetime Five* 1.50%
Maximum charge for Spousal Lifetime Five* 1.50%
Lifetime Five Income Benefit (current charge) 0.60%
Spousal Lifetime Five Income Benefit (current charge) 0.75%
Highest Daily Lifetime Five Income Benefit (current charge) 0.60%
Base Death Benefit 1.65%
Guaranteed Minimum Death Benefit Option - Roll-Up or Step-Up 1.90%
Guaranteed Minimum Death Benefit Option - Greater of Roll-Up or Step-Up 2.00%
Highest Daily Value Death Benefit 2.15%
Maximum Annual Guaranteed Minimum Income Benefit Charge and Charge Upon Certain Withdrawals - as a 1.00%
percentage of average GMIB Protected Value**
Annual Guaranteed Minimum Income Benefit Charge and Charge Upon Certain Withdrawals - (for contracts 0.50%
sold on or after January 20, 2004 or upon subsequent state approval) - as a percentage of average GMIB
Protected Value (current charge)
*The charge for the Lifetime Five Income Benefit (and, if available under your contract, Spousal Lifetime Five and Highest Daily
Lifetime Five) is imposed based on the value of assets in the variable investment options only. In our original state filings for
each of these benefits, we set forth maximum charges that we now are in the process of amending. Specifically, we have commenced
filings with the states to establish the 1.50% maximum charge depicted above - - for both existing contracts and new-issue
contracts. As contemplated by those filings, we have the right to increase the charge for each of these benefits up to the 1.50%
maximum upon a step-up, or for a new election of each such benefit. However, we have no present intention of increasing the charges
for those benefits to that maximum level.
**We reserve the right to increase this charge up to the maximum indicated upon any reset of the benefit or new election.
In Section 2 of each prospectus, we make the following change to the chart setting forth a brief description of each variable
investment option, to reflect a subadviser name change:
o SP Small Cap Value Portfolio, AST Small Cap Value Portfolio, and Prudential Series Fund Equity Portfolio. Salomon Brothers
Asset Management will change its name to ClearBridge Advisors, LLC, effective in December 2006.
In section 2 of each prospectus, we revise the investment objectives/policies section, and portfolio adviser/sub-adviser section for
two Portfolios to read as follows. These new descriptions reflect the addition of sub-advisers as well as revisions to
non-fundamental investment policies:
o SP LSV International Value Portfolio:
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISER/
TYPE SUB-ADVISER
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
International SP International Value Portfolio (formerly SP LSV International Value Portfolio): seeks LSV Asset Management,
capital growth. The Portfolio normally invests at least 80% of the Portfolio's investable Thornburg Investment
assets (net assets plus borrowings made for investment purposes) in the equity securities of Management, Inc.
Equity companies in developed countries outside the United States that are represented in the MSCI
EAFE Index.
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
o SP William Blair International Growth Portfolio
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISER/
TYPE SUB-ADVISER
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
International SP International Growth Portfolio (formerly, SP William Blair International Growth Marsico Capital
Portfolio): seeks long-term capital appreciation. The Portfolio invests primarily in Management LLC,
equity-related securities of foreign issuers. The Portfolio invests primarily in the common William Blair &
stock of large and medium-sized foreign companies, although it may also invest in companies of Company, LLC
all sizes. Under normal circumstances, the Portfolio invests at least 65% of its total assets
Equity in common stock of foreign companies operating or based in at least five different countries,
which may include countries with emerging markets. The Portfolio looks primarily for stocks of
companies whose earnings are growing at a faster rate than other companies or which offer
attractive growth potential.
- ------------------- ------------------------------------------------------------------------------------------------ -----------------------
SECTION 5: WHAT IS THE LIFETIME FIVE INCOME BENEFIT?
We add the following new section to the end of the above-referenced section of each prospectus for Pruco Life's Strategic Partners
Annuity One 3, Strategic Partners Plus 3, and Strategic Partners FlexElite (version of FlexElite contract sold on or after May 1,
2003 or upon subsequent state approval):
HIGHEST DAILY LIFETIME FIVE BENEFIT (HIGHEST DAILY LIFETIME FIVE)
The Highest Daily Lifetime Five Benefit described below is only being offered in those jurisdictions where we have received
regulatory approval, and will be offered subsequently in other jurisdictions when we receive regulatory approval in those
jurisdictions. Certain terms and conditions may differ among jurisdictions once approved. Highest Daily Lifetime Five is offered as
an alternative to Lifetime Five and Spousal Lifetime Five. Currently, if you elect Highest Daily Lifetime Five and subsequently
terminate the benefit, you will not be able to re-elect Highest Daily Lifetime Five, and will have a waiting period until you can
elect Spousal Lifetime Five or Lifetime Five. Specifically, you will be permitted to elect Lifetime Five or Spousal Lifetime Five
only on an anniversary of the contract date that is at least 90 calendar days from the date that Highest Daily Lifetime Five was
terminated. We reserve the right to further limit the election frequency in the future. The income benefit under Highest Daily
Lifetime Five currently is based on a single "designated life" who is at least 55 years old on the date that the benefit is
acquired. The Highest Daily Lifetime Five Benefit is not available if you elect any other optional living benefit, although you may
elect any optional death benefit (other than the Highest Daily Value Death Benefit). As long as your Highest Daily Lifetime Five
Benefit is in effect, you must allocate your contract value in accordance with the then-permitted and available investment option(s)
with this program.
We offer a benefit that guarantees until the death of the single designated life the ability to withdraw an annual amount (the
"Highest Daily Life Income Benefit") equal to a percentage of an initial principal value (the "Protected Withdrawal Value")
regardless of the impact of market performance on the contract value, subject to our program rules regarding the timing and amount of
withdrawals. The benefit may be appropriate if you intend to make periodic withdrawals from your contract, and wish to ensure that
market performance will not affect your ability to receive annual payments. You are not required to make withdrawals as part of the
program -- the guarantees are not lost if you withdraw less than the maximum allowable amount each year under the rules of the
benefit. We discuss Highest Daily Lifetime Five in greater detail immediately below. In addition, please see the Glossary section
of this prospectus for definitions of some of the key terms used with this benefit. As discussed below, we require that you
participate in our asset transfer program in order to participate in Highest Daily Lifetime Five, and in the Appendices to this
prospectus, we set forth the formula under which we make those asset transfers.
As discussed below, a key component of Highest Daily Lifetime Five is the Protected Withdrawal Value, which is an amount that is
distinct from contract value. Protected Withdrawal Value is used to determine the Highest Daily Annual Income Amount - - which is
amount that you can take out annually as a withdrawal for your entire life. Because each of the Protected Withdrawal Value and
Highest Daily Annual Income Amount is determined in a way that is not solely related to contract value, it is possible for the
contract value to fall to zero, even though the Highest Daily Annual Income Amount remains. You are guaranteed to be able to
withdraw the Highest Daily Annual Income Amount for the rest of your life, provided that you have not made "excess withdrawals."
Excess withdrawals, as discussed below, will reduce your Highest Daily Annual Income Amount. Thus, you could experience a scenario
in which your contract value was zero, and, due to your excess withdrawals, your Highest Daily Annual Income Amount also was reduced
to zero. In that scenario, no further amount would be payable under Highest Daily Lifetime Five.
KEY FEATURE -- PROTECTED WITHDRAWAL VALUE
The Protected Withdrawal Value is used to determine the amount of the annual payments under the Highest Daily Life Income Benefit.
The Protected Withdrawal Value initially is equal to the contract value on the date that you elect Highest Daily Lifetime Five. On
each business day thereafter, until the earlier of the first withdrawal or ten years after the date of your election of the benefit,
we recalculate the Protected Withdrawal Value. Specifically, on each such business day (the "Current Business Day"), the Protected
Withdrawal Value is equal to the greater of:
o The Protected Withdrawal Value for the immediately preceding business day (the "Prior Business Day"), appreciated at the
daily equivalent of 5% annually during the calendar day(s) between the Prior Business Day and the Current Business Day
(i.e., one day for successive business days, but more than one calendar day for business days that are separated by weekends
and/or holidays), plus the amount of any purchase payment (including any associated credit) made on the Current Business
Day; and
o The contract value.
We cease these daily calculations of the Protected Withdrawal Value when you make your first withdrawal. However, as discussed
below, subsequent purchase payments (and any associated credits for Strategic Partners Annuity One 3 and Strategic Partners Plus 3
only) will increase the amount we guarantee to pay annually under the Highest Daily Life Income Benefit (the "Highest Daily Annual
Income Amount"), while "excess" withdrawals (as described below) may decrease the Highest Daily Annual Income Amount.
KEY FEATURE - HIGHEST DAILY ANNUAL INCOME AMOUNT UNDER HIGHEST DAILY LIFETIME FIVE BENEFIT
The initial Highest Daily Annual Income Amount is equal to 5% of the Protected Withdrawal Value. Under the Highest Daily Lifetime
Five benefit, if your cumulative withdrawals in a contract year are less than or equal to the Highest Daily Annual Income Amount,
they will not reduce your Highest Daily Annual Income Amount in subsequent contract years, but any such withdrawals will reduce the
Highest Daily Annual Income Amount on a dollar-for-dollar basis in that contract year. If your cumulative withdrawals are in excess
of the Highest Daily Annual Income Amount ("Excess Income"), your Highest Daily Annual Income Amount in subsequent years will be
reduced (except with regard to required minimum distributions) by the result of the ratio of the Excess Income to the contract value
immediately prior to such withdrawal (see examples of this calculation below). Reductions include the actual amount of the
withdrawal, including any CDSC that may apply. A purchase payment that you make will increase the then-existing Highest Daily Annual
Income Amount by an amount equal to 5% of the purchase payment (including, with respect to Strategic Partners Annuity One 3 and
Strategic Partners Plus 3 only, the amount of any associated credits).
An automatic step-up feature ("Highest Quarterly Auto Step-Up") is included as part of this benefit. As detailed in this paragraph,
the Highest Quarterly Auto Step-Up feature can result in a larger Highest Daily Annual Income Amount if your contract value increases
subsequent to your first withdrawal. We begin examining contract values for purposes of this feature starting with the contract
anniversary immediately after your first withdrawal under the benefit. Specifically, upon the first such contract anniversary after
your first withdrawal, we identify the contract value on the business days corresponding to the end of each quarter that (i) is based
on your contract year, rather than a calendar year (ii) is subsequent to the first withdrawal and (iii) falls within the immediately
preceding contract year. If the end of any such quarter falls on a holiday or a weekend, we use the next business day. We multiply
each of those quarterly contract values by 5%, adjust each such quarterly value for subsequent withdrawals and purchase payments, and
then select the highest of those values. If the highest of those values exceeds the existing Highest Daily Annual Income Amount, we
replace the existing amount with the new, higher amount. Otherwise, we leave the existing Highest Daily Annual Income Amount
intact. In later years (i.e., after the first contract anniversary after the first withdrawal), we determine whether an automatic
step-up should occur on each contract anniversary, by performing a similar examination of the contract values on the end of the four
immediately preceding quarters. If, on the date that we implement a Highest Quarterly Auto Step-Up to your Highest Daily Annual
Income Amount, the charge for Highest Daily Lifetime Five has changed, you may be subject to the new charge at the time of such
step-up. Prior to increasing your charge for Highest Daily Lifetime Five upon a step-up, we would notify you, and give you the
opportunity to cancel the automatic step-up feature.
The Highest Daily Lifetime Five program does not affect your ability to make withdrawals under your contract, or limit your ability
to request withdrawals that exceed the Highest Daily Annual Income Amount. Under Highest Daily Lifetime Five, if your cumulative
withdrawals in a contract year are less than or equal to the Highest Daily Annual Income Amount, they will not reduce your Highest
Daily Annual Income Amount in subsequent contract years, but any such withdrawals will reduce the Highest Daily Annual Income Amount
on a dollar-for-dollar basis in that contract year.
If, cumulatively, you withdraw an amount less than the Highest Daily Annual Income Amount in any contract year, you cannot carry-over
the unused portion of the Highest Daily Annual Income Amount to subsequent contract years.
Examples of dollar-for-dollar and proportional reductions, and the Highest Quarterly Step-Up are set forth below. The values
depicted here are purely hypothetical, and do not reflect the charges for the Highest Daily Lifetime Five Benefit or any other fees
and charges. Please assume the following for all three examples:
o The contract is purchased on December 1, 2006
o On May 2, 2007, the client elects Highest Daily Lifetime Five and takes the first withdrawal under the benefit on the same
day.
Dollar-for-dollar reductions
On May 2, 2007, the Protected Withdrawal Value is $120,000, resulting in a Highest Daily Annual Income Amount of $6,000 (5% of
$120,000). Assuming $2,500 is withdrawn from the contract on this date, the remaining Highest Daily Annual Income Amount for that
contract year (up to and including December 1, 2007) is $3,500. This is the result of a dollar-for-dollar reduction of the Highest
Daily Annual Income Amount -- $6,000 less $2,500 = $3,500.
Proportional reductions
Continuing the previous example, assume an additional withdrawal of $5,000 occurs on August 6, 2007 and the contract value at the
time of this withdrawal is $110,000. The first $3,500 of this withdrawal reduces the Highest Daily Annual Income Amount for that
contract year to $0. The remaining withdrawal amount ($1,500) reduces the Highest Daily Annual Income Amount in future contract
years on a proportional basis based on the ratio of the excess withdrawal to the contract value immediately prior to the excess
withdrawal. (Note that if there were other withdrawals in that contract year, each withdrawal would result in another proportional
reduction to the Highest Daily Annual Income Amount).
Here is the calculation:
Contract value before withdrawal $110,000.00
Less amount of "non" excess withdrawal -$3,500.00
Contract value immediately before excess withdrawal of $1,500 $106,500.00
Excess withdrawal amount, $1,500.00
divided by contract value immediately before excess withdrawal $106,500.00
Ratio 1.41%
Highest Daily Annual Income Amount $6,000.00
Less ratio of 1.41% -$84.51
Highest Daily Annual Income Amount for future contract years $5,915.49
Highest Quarterly Step
On each contract anniversary date, the Highest Daily Annual Income Amount is stepped-up if 5% of the highest quarterly value since
your first withdrawal (or last contract anniversary in subsequent years), adjusted for excess withdrawals and additional purchase
payments, is greater than the Highest Daily Annual Income Amount, also adjusted for excess withdrawals and additional purchase
payments.
Continuing the same example as above, the Highest Daily Annual Income Amount for this contract year is $6,000. However, the excess
withdrawal on August 6th reduces this amount to $5,915.49 for future years (see above). For the next contract year, the Highest
Daily Annual Income Amount will be stepped-up if 5% of the highest quarterly contract value, adjusted for withdrawals, is greater
than $5,915.49. Here are the calculations for determining the quarterly values. Only the June 1 value is being adjusted for excess
withdrawals, as the September 1 and December 1 valuation dates occur after the excess withdrawal on August 6.
Highest Quarterly
Value (adjusted with Adjusted Annual Income
withdrawal and Amount (5% of the Highest
Date* Account value premium)** Quarterly Value)
June 1, 2007 $118,000.00 $118,000.00 $5,900.00
August 6, 2007 $120,000.00 $112,885.55 $5,644.28
September 1, 2007 $112,000.00 $112,885.55 $5,644.28
December 1, 2007 $119,000.00 $119,000.00 $5,950.00
*In this example, the contract anniversary date is December 1. The quarterly valuation dates are every three months thereafter -
March 1, June 1, September 1, and December 1. In this example, we do not use the March 1 date as the first withdrawal took place
after March 1. The contract anniversary date of December 1 is considered the fourth and final quarterly valuation date for the year.
**In this example, the first quarterly value after the first withdrawal is $118,000 on June 1, yielding an adjusted Highest Daily
Annual Income Amount of $5,900.00. This amount is adjusted on August 6 to reflect the $5,000 withdrawal. The calculations for the
adjustments are:
|X| The contract value of $118,000 on June 1 is first reduced dollar-for-dollar by $3,500 ($3,500 is the remaining Highest Daily
Annual Income Amount for the contract year), resulting in an adjusted contract value of $114,500 before the excess
withdrawal.
|X| This amount ($114,500) is further reduced by 1.41% (this is the ratio in the above example which is the excess withdrawal
divided by the contract value immediately preceding the excess withdrawal) resulting in a Highest Quarterly Value of
$112,885.55.
The adjusted Highest Daily Annual Income Amount is carried forward to the next quarterly anniversary date of September 1. At this
time, we compare this amount to 5% of the contract value on September 1. Since the June 1 adjusted Highest Daily Annual Income
Amount of $5,644.28 is higher than $5,600.00 (5% of $112,000), we continue to carry $5,644.28 forward to the next and final quarterly
anniversary date of December 1. The contract value on December 1 is $119,000 and 5% of this amount is $5,950. Since this is higher
than $5,644.28, the adjusted Highest Daily Annual Income Amount is reset to $5,950.00
In this example, 5% of the December 1 value yields the highest amount of $ 5,950.00. Since this amount is higher than the current
year's Highest Daily Annual Income Amount of $5,915.49 adjusted for excess withdrawals, the Highest Daily Annual Income Amount for
the next contract year, starting on December 2, 2007 and continuing through December 1, 2008, will be stepped-up to $5,950.00.
BENEFITS UNDER HIGHEST DAILY LIFETIME FIVE
o To the extent that your contract value was reduced to zero as a result of cumulative withdrawals that are equal to or less
than the Highest Daily Annual Income Amount and amounts are still payable under the Highest Daily Life Income Benefit, we
will make an additional payment, if any, for that contract year equal to the remaining Highest Daily Annual Income Amount
for the contract year. Thus, in that scenario, the remaining Highest Daily Annual Income Amount would be payable even
though your contract value was reduced to zero. In subsequent contract years we make payments that equal the Highest Daily
Annual Income Amount as described in this section. We will make payments until the death of the single designated life. To
the extent that cumulative withdrawals in the current contract year that reduced your contract value to zero are more than
the Highest Daily Annual Income Amount, the Highest Daily Lifetime Five Benefit terminates, and no additional payments will
be made.
o If annuity payments are to begin under the terms of your contract, or if you decide to begin receiving annuity payments and
there is a Highest Daily Annual Income Amount due in subsequent contract years, you can elect one of the following two
options:
(1) Apply your contract value to any annuity option available; or
(2) Request that, as of the date annuity payments are to begin, we make annuity payments each year equal to the Highest
Daily Annual Income Amount. We will make payments until the death of the single designated life.
We must receive your request in a form acceptable to us at our office.
In the absence of an election when mandatory annuity payments are to begin, we will make annual annuity payments in the form of a
single life fixed annuity with ten payments certain, by applying the greater of the annuity rates then currently available or the
annuity rates guaranteed in your contract. The amount that will be applied to provide such annuity payments will be the greater of:
(1) The present value of the future Highest Daily Annual Income Amount payments. Such present value will be calculated using the
greater of the single life fixed annuity rates then currently available or the single life fixed annuity rates guaranteed in your
contract; and
(2) The contract value.
o If no withdrawal was ever taken, we will determine the Protected Withdrawal Value and calculate the Highest Daily Annual
Income Amount as if you made your first withdrawal on the date the annuity payments are to begin.
OTHER IMPORTANT CONSIDERATIONS
o Withdrawals under the Highest Daily Lifetime Five benefit are subject to all of the terms and conditions of the contract,
including any CDSC. We take withdrawals pro rata from your variable investment options and fixed investment options.
o Withdrawals made while the Highest Daily Lifetime Five program is in effect will be treated, for tax purposes, in the same
way as any other withdrawals under the contract. The Highest Daily Lifetime Five program does not directly affect the
contract value or surrender value, but any withdrawal will decrease the contract value by the amount of the withdrawal (plus
any applicable CDSC). If you surrender your contract, you will receive the current surrender value.
o You can make withdrawals from your contract while your contract value is greater than zero without purchasing the Highest
Daily Lifetime Five Benefit. The Highest Daily Lifetime Five Benefit provides a guarantee that if your contract value
declines due to market performance, you will be able to receive your Highest Daily Annual Income Amount in the form of
periodic benefit payments.
o You must allocate your contract value in accordance with the then available investment option(s) that we may permit in order
to elect and maintain the Highest Daily Lifetime Five Benefit.
ELECTION OF AND DESIGNATIONS UNDER THE BENEFIT
For Highest Daily Lifetime Five, there must be either a single owner who is the same as the annuitant, or if the contract is
entity-owned, there must be a single natural person annuitant. In either case, the annuitant must be at least 55 years old.
Any change of the annuitant under the contract will result in cancellation of Highest Daily Lifetime Five. Similarly, any change of
owner will result in cancellation of Highest Daily Lifetime Five, except if (a) the new owner has the same taxpayer identification
number as the previous owner, (b) both the new owner and previous owner are entities, or (c) the previous owner is a natural person
and the new owner is an entity.
Highest Daily Lifetime Five can be elected at the time that you purchase your contract. We also offer existing owners (i.e., those
who have already acquired their contract) the option to elect Highest Daily Lifetime Five, subject to our eligibility rules and
restrictions.
Currently, if you terminate the Highest Daily Lifetime Five Benefit, you will (a) not be permitted to re-elect the benefit and (b)
will be allowed to elect the Spousal Lifetime Five Benefit or the Lifetime Five Income Benefit on any anniversary of the contract
date that is at least 90 calendar days from the date the Highest Daily Lifetime Five Benefit was terminated. We reserve the right to
further limit the election frequency in the future. Before making any such change to the election frequency, we will provide prior
notice to owners who have an effective Highest Daily Lifetime Five Benefit.
TERMINATION OF THE BENEFIT
You may terminate the benefit at any time by notifying us. If you terminate the benefit, any guarantee provided by the benefit will
terminate as of the date the termination is effective, and certain restrictions on re-election will apply as described above. We
reserve the right to further limit the election frequency in the future. The benefit terminates: (i) upon your termination of the
benefit, (ii) upon your surrender of the contract, (iii) upon your election to begin receiving annuity payments; (iv) upon the death
of the designated life, (v) if both the contract value and Highest Daily Annual Income Amount equal zero, or (vi) if you fail to meet
our requirements for issuing the benefit.
Upon termination of Highest Daily Lifetime Five, we cease deducting the charge for the benefit. With regard to your investment
allocations, upon termination we will: (i) leave intact amounts that are held in the variable investment options, and (ii) transfer
all amounts held in the Benefit Fixed Rate Account (as described below) to your variable investment options, based on your existing
allocation instructions or (in the absence of such existing instructions) pro rata (i.e. in the same proportion as the current
balances in your variable investment options).
ASSET TRANSFER COMPONENT OF HIGHEST DAILY LIFETIME FIVE
As indicated above, we limit the sub-accounts to which you may allocate contract value if you elect Highest Daily Lifetime Five. For
purposes of this benefit, we refer to those permitted sub-accounts as the "Permitted Sub-accounts". A list of the Permitted
Sub-accounts appears in the application form that you must submit to us in order to elect this benefit. As a requirement of
participating in Highest Daily Lifetime Five, we require that you participate in our specialized asset transfer program, under which
we may transfer contract value between the Permitted Sub-accounts and a fixed interest rate account that is part of our general
account (the "Benefit Fixed Rate Account"). The Benefit Fixed Rate Account is available only with this benefit, and thus you may not
allocate purchase payments to that Account. The interest rate that we pay with respect to the Benefit Fixed Rate Account is reduced
by an amount that corresponds generally to the charge that we assess against your variable sub-accounts for Highest Daily Lifetime
Five. The Benefit Fixed Rate Account is not subject to the Investment Company Act of 1940 or the Securities Act of 1933.
Under the asset transfer component of Highest Daily Lifetime Five, we monitor your contract value daily and, if necessary,
systematically transfer amounts between the Permitted Sub-accounts you have chosen and the Benefit Fixed Rate Account. Any transfer
would be made in accordance with a formula, which is set forth in the schedule supplement to the endorsement for this benefit (and
also appears in the Appendices to this prospectus). Speaking generally, the formula, which we apply each business day, operates as
follows. The formula starts by identifying your Protected Withdrawal Value for that day and then multiplies that figure by 5%, to
produce a projected (i.e., hypothetical) Highest Daily Annual Income Amount. Then, using our actuarial tables, based on paying you
the projected Highest Daily Annual Income Amount each year for the rest of your life, we produce an estimate of the total amount of
our obligation. In the formula, we refer to that value as the "Target Value" or "L". If you have already made a withdrawal, your
projected Highest Daily Annual Income Amount (and thus your Target Value) would take into account any automatic step-up implemented
according to the step-up formula described above. Next, the formula subtracts from the Target Value the amount held within the
Benefit Fixed Rate Account on that day, and divides that difference by the amount held within the Permitted Sub-accounts. That
ratio, which essentially isolates the amount of your Target Value that is not offset by amounts held within the Benefit Fixed Rate
Account, is called the "Target Ratio" or "r". If the Target Ratio exceeds a certain percentage (currently 83%), it means
essentially that too much Target Value is not offset by assets within the Benefit Fixed Rate Account, and therefore we will transfer
an amount from your Permitted Sub-accounts to the Benefit Fixed Rate Account. Conversely, if the Target Ratio falls below a certain
percentage (currently 77%), then a transfer from the Benefit Fixed Rate Account to the Permitted Sub-accounts would occur.
As you can glean from the formula, a downturn in the securities markets (i.e., a reduction in the amount held within the Permitted
Sub-accounts) may cause us to transfer some of your variable contract value to the Benefit Fixed Rate Account, because such a
reduction will tend to increase the Target Ratio. Moreover, certain market return scenarios involving "flat" returns over a period
of time also could result in the transfer of money to the Benefit Fixed Rate Account. In deciding how much to transfer, we use
another formula, which essentially seeks to re-balance amounts held in the Permitted Sub-accounts and the Benefit Fixed Rate Account
so that the Target Ratio meets a target, which currently is equal to 80%. Once you elect Highest Daily Lifetime Five, the ratios we
use will be fixed. For newly issued contracts that elect Highest Daily Lifetime Five and existing contracts that elect Highest
Daily Lifetime Five, we reserve the right to change the ratios.
While you are not notified when your contract reaches a reallocation trigger, you will receive a confirmation statement indicating
the transfer of a portion of your contract value either to or from the Benefit Fixed Rate Account. The formula by which the
reallocation triggers operate is designed primarily to mitigate the financial risks that we incur in providing the guarantee under
Highest Daily Lifetime Five.
Depending on the results of the calculation relative to the reallocation triggers, we may:
o Not make any transfer; or
o If a portion of your contract value was previously allocated to the Benefit Fixed Rate Account, transfer all or a portion of
those amounts to the Permitted Sub-accounts, based on your existing allocation instructions (e.g., asset allocation) or (in
the absence of such existing instructions) pro rata. Amounts taken out of the Benefit Fixed Rate Account will be withdrawn
for this purpose on a last-in, first-out basis (an amount renewed into a new guarantee period under the Benefit Fixed Rate
Account will be deemed a new investment for purposes of this last-in, first-out rule); or
o Transfer all or a portion of your contract value in the Permitted Sub-accounts pro-rata to the Benefit Fixed Rate Account.
The interest that you earn on such transferred amount will be equal to the annual rate that we have set for that day, and we
will credit the daily equivalent of that annual interest until the earlier of one year from the date of the transfer or the
date that such amount in the Benefit Fixed Rate Account is transferred back to the Permitted Sub-accounts.
If a significant amount of your contract value is systematically transferred to the Benefit Fixed Rate Account during periods of
market declines or low interest rates, less of your contract value may be available to participate in the investment experience of
the Permitted Sub-accounts if there is a subsequent market recovery. Under the reallocation formula that we employ, it is possible
that a significant portion of your contract value may be allocated to the Benefit Fixed Rate Account.
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS/ARRANGEMENTS
If you purchase a contract as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Tax Sheltered Annuity (or
403(b)) or employer plan under Code Section 401(a), the minimum distribution rules under the Code require that you begin receiving
periodic amounts from your contract beginning after age 70 1/2. For a Tax Sheltered Annuity or a 401(a) plan for which the
participant is not a greater than 5 percent owner of the employer, this required beginning date can generally be deferred to
retirement, if later. Roth IRAs are not subject to these rules during the owner's lifetime. The amount required under the Code may
exceed the Highest Daily Annual Income Amount, which will cause us to increase the Highest Daily Annual Income Amount in any contract
year that required minimum distributions due from your contract are greater than such amounts. In addition, the amount and duration
of payments under the annuity payment and death benefit provisions may be adjusted so that the payments do not trigger any penalty or
excise taxes due to tax considerations such as minimum distribution requirements.
SECTION 8 (subsection entitled "Insurance and Administrative Charges")
We replace the first two sentences of the first paragraph concerning the charges for Lifetime Five and Spousal Lifetime Five with the
following: "We impose an additional charge of 0.60% annually if you choose the Lifetime Five Income Benefit or the Highest Daily
Lifetime Five Benefit, and an additional charge of 0.75% annually if you choose the Spousal Lifetime Five Income Benefit."
APPENDIX B: Selecting The Variable Annuity That's Right For You
In the product comparison chart, we revise the line item (and accompanying footnote) concerning Living Benefits to reflect that
Highest Daily Lifetime Five is available under Strategic Partners FlexElite 2, Strategic Partners Annuity One 3 and Strategic
Partners Plus 3.
We add the following as Appendix C:
Appendix C
Asset Transfer Formula Under Highest Daily Lifetime Five Benefit
We set out below the current formula under which we may transfer amounts between the variable investment options and the Benefit
Fixed Rate Account. Upon your election of Highest Daily Lifetime Five, we will not alter the asset transfer formula that applies to
your contract. However, as discussed in Section 5, we reserve the right to modify this formula with respect to those who elect
Highest Daily Lifetime Five in the future.
Terms and Definitions referenced in the calculation formula:
o Cu - the upper target is established on the effective date of the Highest Daily Lifetime Five benefit (the "Effective Date")
and is not changed for the life of the guarantee. Currently, it is 83%.
o Ct - the target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it is 80%.
o Cl - the lower target is established on the Effective Date and is not changed for the life of the guarantee. Currently, it
is 77%.
o L - the target value as of the current business day.
o r - the target ratio.
o a - the factors used in calculating the target value. These factors are established on the Effective Date and are not
changed for the life of the guarantee. The factors that we use currently are derived from the a2000 Individual Annuity
Mortality Table with an assumed interest rate of 3%. Each number in the table "a" factors (which appears below) represents a
factor, which when multiplied by the Highest Daily Annual Income Amount, projects our total liability for the purpose of asset
transfers under the guarantee.
o Q - age based factors used in calculating the target value. These factors are established on the Effective Date and are not
changed for the life of the guarantee. The factor is currently set equal to 1.
o V - the total value of all Permitted Sub-accounts in the annuity.
o F - the total value of all Benefit Fixed Rate Account allocations.
o I - the income value prior to the first withdrawal. The income value is equal to what the Highest Daily Annual Income
Amount would be if the first withdrawal were taken on the date of calculation. After the first withdrawal the income value
equals the greater of the Highest Daily Annual Income Amount, the quarterly step-up amount times the annual income percentage,
and the contract value times the annual income percentage.
o T - the amount of a transfer into or out of the Benefit Fixed Rate Account.
o I% - annual income amount percentage. This factor is established on the Effective Date and is not changed for the life of
the guarantee. Currently, this percentage is equal to 5%.
Target Value Calculation:
On each business day, a target value (L) is calculated, according to the following formula. If the variable contract value (V) is
equal to zero, no calculation is necessary.
L = I * Q * a
Transfer Calculation:
The following formula, which is set on the Effective Date and is not changed for the life of the guarantee, determines when a
transfer is required:
Target Ratio r = (L - F) / V.
o If r > Cu, assets in the Permitted Sub-accounts are transferred to Benefit Fixed Rate Account.
o If r < Cl, and there are currently assets in the Benefit Fixed Rate Account (F > 0), assets in the Benefit Fixed Rate
Account are transferred to the Permitted Sub-accounts.
The following formula, which is set on the Effective Date and is not changed for the life of the guarantee, determines the transfer
amount:
T ={Min(V, [L - F - V * Ct] / (1-Ct))} T>0, Money moving from the Permitted Sub-accounts to the Benefit Fixed
Rate Account
T ={Min(F, [L - F - V * Ct] / (1-Ct))} T<0, Money moving from the Benefit Fixed Rate Account to the Permitted
Sub-accounts]
Example:
Male age 65 contributes $100,000 into the Permitted Sub accounts and the value drops to $92,300 during year one, end of day one. A
table of values for "a" appears below.
Target Value Calculation:
L = I * Q * a
= 5000.67 * 1 * 15.34
= 76,710.28
Target Ratio:
r = (L - F) / V
= (76,710.28 - 0) / 92,300.00
= 83.11%
Since r > Cu ( because 83.11% > 83%) a transfer into the Benefit Fixed rate Account occurs.
T = { Min ( V, [ L - F - V * Ct] / ( 1 - Ct))}
= { Min ( 92,300.00, [ 76,710.28 - 0 - 92,300.00 * 0.80] / ( 1 - 0.80))}
= { Min ( 92,300.00, 14,351.40 )}
= 14,351.40
Age 65 "a" Factors for Liability Calculations
(in Years and Months since Benefit Effective Date)*
Months
Years 1 2 3 4 5 6 7 8 9 10 11 12
1 15.34 15.31 15.27 15.23 15.20 15.16 15.13 15.09 15.05 15.02 14.98 14.95
2 14.91 14.87 14.84 14.80 14.76 14.73 14.69 14.66 14.62 14.58 14.55 14.51
3 14.47 14.44 14.40 14.36 14.33 14.29 14.26 14.22 14.18 14.15 14.11 14.07
4 14.04 14.00 13.96 13.93 13.89 13.85 13.82 13.78 13.74 13.71 13.67 13.63
5 13.60 13.56 13.52 13.48 13.45 13.41 13.37 13.34 13.30 13.26 13.23 13.19
6 13.15 13.12 13.08 13.04 13.00 12.97 12.93 12.89 12.86 12.82 12.78 12.75
7 12.71 12.67 12.63 12.60 12.56 12.52 12.49 12.45 12.41 12.38 12.34 12.30
8 12.26 12.23 12.19 12.15 12.12 12.08 12.04 12.01 11.97 11.93 11.90 11.86
9 11.82 11.78 11.75 11.71 11.67 11.64 11.60 11.56 11.53 11.49 11.45 11.42
10 11.38 11.34 11.31 11.27 11.23 11.20 11.16 11.12 11.09 11.05 11.01 10.98
11 10.94 10.90 10.87 10.83 10.79 10.76 10.72 10.69 10.65 10.61 10.58 10.54
12 10.50 10.47 10.43 10.40 10.36 10.32 10.29 10.25 10.21 10.18 10.14 10.11
13 10.07 10.04 10.00 9.96 9.93 9.89 9.86 9.82 9.79 9.75 9.71 9.68
14 9.64 9.61 9.57 9.54 9.50 9.47 9.43 9.40 9.36 9.33 9.29 9.26
15 9.22 9.19 9.15 9.12 9.08 9.05 9.02 8.98 8.95 8.91 8.88 8.84
16 8.81 8.77 8.74 8.71 8.67 8.64 8.60 8.57 8.54 8.50 8.47 8.44
17 8.40 8.37 8.34 8.30 8.27 8.24 8.20 8.17 8.14 8.10 8.07 8.04
18 8.00 7.97 7.94 7.91 7.88 7.84 7.81 7.78 7.75 7.71 7.68 7.65
19 7.62 7.59 7.55 7.52 7.49 7.46 7.43 7.40 7.37 7.33 7.30 7.27
20 7.24 7.21 7.18 7.15 7.12 7.09 7.06 7.03 7.00 6.97 6.94 6.91
21 6.88 6.85 6.82 6.79 6.76 6.73 6.70 6.67 6.64 6.61 6.58 6.55
22 6.52 6.50 6.47 6.44 6.41 6.38 6.36 6.33 6.30 6.27 6.24 6.22
23 6.19 6.16 6.13 6.11 6.08 6.05 6.03 6.00 5.97 5.94 5.92 5.89
24 5.86 5.84 5.81 5.79 5.76 5.74 5.71 5.69 5.66 5.63 5.61 5.58
25 5.56 5.53 5.51 5.48 5.46 5.44 5.41 5.39 5.36 5.34 5.32 5.29
26 5.27 5.24 5.22 5.20 5.18 5.15 5.13 5.11 5.08 5.06 5.04 5.01
27 4.99 4.97 4.95 4.93 4.91 4.88 4.86 4.84 4.82 4.80 4.78 4.75
28 4.73 4.71 4.69 4.67 4.65 4.63 4.61 4.59 4.57 4.55 4.53 4.51
29 4.49 4.47 4.45 4.43 4.41 4.39 4.37 4.35 4.33 4.32 4.30 4.28
30 4.26 4.24 4.22 4.20 4.18 4.17 4.15 4.13 4.11 4.09 4.07 4.06
31 4.04 4.02 4.00 3.98 3.97 3.95 3.93 3.91 3.90 3.88 3.86 3.84
32 3.83 3.81 3.79 3.78 3.76 3.74 3.72 3.71 3.69 3.67 3.66 3.64
33 3.62 3.61 3.59 3.57 3.55 3.54 3.52 3.50 3.49 3.47 3.45 3.44
34 3.42 3.40 3.39 3.37 3.35 3.34 3.32 3.30 3.29 3.27 3.25 3.24
35 3.22 3.20 3.18 3.17 3.15 3.13 3.12 3.10 3.08 3.07 3.05 3.03
36 3.02 3.00 2.98 2.96 2.95 2.93 2.91 2.90 2.88 2.86 2.85 2.83
37 2.81 2.79 2.78 2.76 2.74 2.73 2.71 2.69 2.68 2.66 2.64 2.62
38 2.61 2.59 2.57 2.56 2.54 2.52 2.51 2.49 2.47 2.45 2.44 2.42
39 2.40 2.39 2.37 2.35 2.34 2.32 2.30 2.29 2.27 2.25 2.24 2.22
40 2.20 2.19 2.17 2.15 2.14 2.12 2.11 2.09 2.07 2.06 2.04 2.02
41 2.01 1.84 1.67 1.51 1.34 1.17 1.00 0.84 0.67 0.50 0.33 0.17
* The values set forth in this table are applied to all ages.
This prospectus supplement is intended to amend the prospectus for the annuity you own, and is not intended to be a prospectus
or offer for any annuity listed here that you do not own.
SPVASUP4