As filed with the Securities and Exchange Commission on or about April 24, 2026
Registration Statement File No. 333-45039
Registration Statement File No. 811-08619
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
☐ Pre-Effective Amendment No.
☒ Post-Effective Amendment No. 43
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
☒ Amendment No. 273
(Check appropriate box or boxes.)
Massachusetts Mutual Variable Annuity Separate Account 4
(Exact Name of Registered Separate Account)
Massachusetts Mutual Life Insurance Company
(Name of Insurance Company)
1295 State Street, Springfield, Massachusetts 01111-0001
(Address of Insurance Company’s Principal Executive Offices)
(413) 788-8411
(Insurance Company’s Telephone Number, including Area Code)
Gary Murtagh
Head of Insurance Product & Operations Law
Massachusetts Mutual Life Insurance Company
1295 State Street
Springfield, Massachusetts 01111-0001
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check appropriate box):
| ☐ | immediately upon filing pursuant to paragraph (b) |
| ☒ | on April 27, 2026 pursuant to paragraph (b) |
| ☐ | 60 days after filing pursuant to paragraph (a)(1) |
| ☐ | on __________ pursuant to paragraph (a)(1) of rule 485 under the Securities Act of 1933 (“Securities Act”). |
If appropriate, check the following box:
| ☐ | This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
Check each box that appropriately characterizes the Registrant:
| ☐ | New Registrant (as applicable, a Registered Separate Account or Insurance Company that has not filed a Securities Act registration statement or amendment thereto within 3 years preceding this filing) |
| ☐ | Emerging Growth Company (as defined by Rule 12b-2 under the Securities Exchange Act of 1934 (“Exchange Act”)) |
| ☐ | If an Emerging Growth Company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act |
| ☐ | Insurance Company relying on Rule 12h-7 under the Exchange Act |
| ☐ | Smaller reporting company (as defined by Rule 12b-2 under the Exchange Act) |
Title of Securities Being Registered: Units of Interest in Panorama Premier, an Individual or Group Deferred Variable Annuity Contract.
Panorama Premier Variable Annuity
Issued by Massachusetts Mutual Life Insurance Company
Massachusetts Mutual Variable Annuity Separate Account 4
This prospectus describes the individual certificates issued under the Panorama Premier deferred group variable annuity contract (Certificate) offered by Massachusetts Mutual Life Insurance Company (“MassMutual®,” “Company,” “we,” “us”). We no longer sell the Certificate. However, we continue to administer existing Certificates. The Certificate provides for accumulation of Certificate Value and Annuity Payments on a fixed and/or variable basis.
You, the Participant, have a number of investment options in the Certificate. These investment options include three fixed account options and multiple variable investment divisions (Sub-Accounts) of Massachusetts Mutual Variable Annuity Separate Account 4 (Separate Account). Each Sub-Account, in turn, invests in one of the investment entities (Funds). For more information about the investment entities, see “Appendix A – Investment Options Available under the Certificate.”
The Certificate is a complex investment and involves risks, including potential loss of all amounts you allocate to a Sub-Account. The Certificate is not a short-term investment and is not appropriate for an investor who needs ready access to cash. Withdrawals may result in the assessment of a Contingent Deferred Sales Charge, income tax, and premature distribution taxes.
The Certificate:
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is not a bank or credit union deposit or obligation. |
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•
is not FDIC or NCUA insured. |
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•
is not insured by any federal government agency. |
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•
is not guaranteed by any bank or credit union. |
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•
may go down in value. |
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provides guarantees that are subject to our financial strength and claims-paying ability. |
IF
YOU ARE A NEW INVESTOR IN THE CERTIFICATE, YOU MAY CANCEL YOUR CERTIFICATE
WITHIN
10 DAYS OF RECEIVING IT WITHOUT PAYING FEES OR PENALTIES.
In some states this cancellation period may be longer. Upon cancellation, you will receive either a full refund of the amount you paid with your application or your total Certificate Value. You should review the prospectus, or consult with your investment professional, for additional information about the specific cancellation terms that apply.
Additional information about certain investment products, including variable annuities, has been prepared by the Securities and Exchange Commission staff and is available at www.investor.gov.
The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this prospectus. Any representation to the contrary is a criminal offense.
This prospectus is not an offer to sell the Certificate in any jurisdiction where it is illegal to offer the Certificate nor is it an offer to sell the Certificate to anyone to whom it is illegal to offer the Certificate.
Please read this prospectus before investing. You should keep it for future reference. It contains important information about the Panorama Premier Variable Annuity.
Effective April 27, 2026
1
|
Important
Information You Should Consider About the |
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|
Compensation
We Receive from Funds, Advisers and |
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2
Accumulation Phase. The period prior to the commencement of Annuity Payments during which Purchase Payments may be made.
Accumulation Unit. A unit of measure used to determine your value in a Sub-Account during the Accumulation Phase.
Age. In this prospectus the term “Age,” except when discussed in regards to specific tax provisions, is defined as “insurance age,” which is a person’s age on his/her birthday nearest the date for which the Age is being determined. This means we calculate your Age based on your nearest birthday, which could be either your last birthday or your next. For example, Age 80 is generally the period of time between age 79 years, 6 months and 1 day and age 80 and 6 months.
Annuitant. The person(s) on whose life Annuity Payments are based, with the exception of the non-lifetime contingent option. See “The Income Phase – Annuity Options.” The term Annuitant also includes the joint Annuitant, if any. The Annuitant has no rights to the Certificate.
Annuity Date. The date Annuity Payments begin.
Annuity Options. Options available for Annuity Payments.
Annuity Payments. Series of payments made pursuant to the Annuity Option(s) elected.
Beneficiary. The person(s) or entity(ies) that the Participant designates to receive the death benefit provided by the Certificate.
Business Day. Every day the New York Stock Exchange (NYSE), or its successor, is open for trading. Our Business Day ends at the Close of Business.
Close of Business. The time on a Business Day when the NYSE ends regular trading, usually at 4:00 p.m. Eastern Time. However, when the NYSE closes early or closes due to any emergency or SEC order, the Close of Business will occur at the same time.
Contingent Deferred Sales Charge (CDSC). A charge that may be assessed against each Purchase Payment withdrawn from the Certificate.
Certificate. The Panorama Premier Variable Annuity; a deferred group variable annuity contract.
Certificate Anniversary. An anniversary of the Issue Date of the Certificate.
Certificate Value. The sum of your values in the Sub-Accounts and the fixed accounts during the Accumulation Phase.
Fund(s). The investment entities into which the assets of the Separate Account will be invested.
General Account. The Company’s General Investment Account, which supports the Company’s annuity and insurance obligations. The General Account’s assets include all the assets of the Company with the exception of the Separate Account and the Company’s other segregated asset accounts.
Good Order. Any application, Purchase Payments, withdrawal requests, or forms required by the Company which are satisfactory to the Company.
Income Phase. The period that begins on the Annuity Date and ends with the last Annuity Payment. The Income Phase is also referred to as the Annuity Phase.
Issue Date. The date on which the Certificate becomes effective. The Issue Date is included in the Certificate.
Joint Participant. A person entitled to ownership rights under the Certificate. See “Ownership – Joint Participant.”
Non-Business Day. Any day when the NYSE is not open for trading. Unless specified otherwise, if the due date for any activity required by the Certificate falls on any day that is not a Business Day, performance of such activity will be rendered on the first Business Day following such due date.
Non-Qualified Contract. Your Certificate is referred to as a Non-Qualified Contract if it is not used to fund a qualified plan such as an Individual Retirement Annuity (IRA), Roth IRA, or a corporate pension and profit-sharing plan.
Owner. The person(s) or entity entitled to ownership rights under the contract that are not delegated to the Participants.
Participant. The person(s) or entity entitled to ownership rights under the Certificate. See “Ownership – Participant.”
Premium Tax. A tax imposed by certain states and other jurisdictions when a Purchase Payment is made, when Annuity Payments begin, or when Certificate Value is withdrawn.
3
Purchase Payment(s). Any amount paid to us by you or on your behalf with respect to the Certificate during the Accumulation Phase.
Qualified Contract. Your Certificate is referred to as a Qualified Contract if it is used to fund a qualified plan such as an Individual Retirement Annuity (IRA), Roth IRA, tax-sheltered annuity plan (TSA or TSA plan), corporate pension and profit-sharing plan (including 401(k) plans and H.R. 10 plans), or a governmental 457(b) deferred compensation plan. For information on the types of qualified plans for which the Certificate is available, see “Taxes – Qualified Contracts.”
Required Minimum Distribution (RMD). A minimum amount the federal tax law requires to be withdrawn from certain Qualified Contracts each year. RMDs are generally required to begin by the required beginning date specified in IRC Section 401(a)(9).
Separate Account. The account that holds the assets underlying the Certificates that are not allocated to our General Account. The assets of the Separate Account are kept separate from the assets of the General Account and the Company’s other separate accounts.
Service Center. MassMutual, Document Management Services – Annuities W360, PO Box 9067, Springfield, MA 01102-9067, (800) 272-2216, (fax) (866) 329-4272, (email) ANNfax@MassMutual.com, www.MassMutual.com. (Overnight mail address: MassMutual, Document Management Services – Annuities W360, 1295 State Street, Springfield, MA 01111-0001.)
Sub-Account. The Separate Account assets are divided into Sub-Accounts. The assets of each Sub-Account will be invested in the shares of a single Fund.
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We no longer sell Panorama Premier. However, we continue to administer existing Certificates, and you may continue making additional Purchase Payments to your Certificate, subject to certain restrictions.
The Certificate offers numerous underlying funds and three fixed accounts. A list of the investment options available under the Certificate is provided at the back of this prospectus. See “Appendix A – Investment Options Available Under the Certificate.”
| Accumulation Phase |
| During the Accumulation Phase, subject to certain restrictions, you may apply Purchase Payments to the Certificate and allocate the Purchase Payments among: |
| ○ | the Sub-Accounts of the Separate Account, each of which invests in a mutual fund (Fund), with each Fund having its own investment strategy, investment adviser, expense ratio and returns, and |
| ○ | the DCA Fixed Accounts (DCA Fixed Account with a DCA Term of six months and the DCA Fixed Account with a DCA Term of twelve months) or The Fixed Account. Assets allocated to the DCA Fixed Accounts are credited with a fixed rate of interest and are systematically transferred to Sub-Accounts that you select. Assets allocated to The Fixed Account are credited with a specified rate that we declare in advance. |
| Income Phase |
| During the Income Phase, you may receive fixed, variable or a combination of fixed and variable Annuity Payments under the Certificate by applying your Certificate Value to a payment option. |
| ○ | Depending on the payment option you select, payments may continue for the life of one or two Annuitants, for a specified period between five and thirty years, or as determined in accordance with terms agreed upon in writing by you and us. |
| When you elect to receive Annuity Payments, your Certificate Value will be converted into income payments and you may no longer be able to withdraw money at will from the Certificate. At this time, the Accumulation Phase will end, and the death benefit will terminate. |
| If you elect to apply your Certificate Value to Annuity Option E or F and the period certain is less than 10 years, the amount applied will be treated as a withdrawal and may be subject to a CDSC. |
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| • | Accessing your money. During the Accumulation Phase, you may make a partial or full withdrawal of your Certificate Value by submitting a partial withdrawal form or full withdrawal form acceptable to us in Good Order to our Service Center. You may also submit the requests by other means that we authorize, such as email, telephone or fax. Contact our Service Center for details. All withdrawals are subject to the limitations described in the prospectus. Withdrawal rights during the Income Phase will depend on the Annuity Option selected. |
| • | Tax treatment. You may transfer Certificate Value among investment options without tax implications, and earnings (if any) on your investments are generally tax-deferred. You are generally taxed only when (1) you make a partial or full withdrawal; (2) you receive an Annuity Payment under the Certificate; or (3) upon payment of the death benefit. |
| • | Death Benefit. A Beneficiary may receive a benefit in the event of your death prior to the Income Phase. For an additional charge, you can select an additional death benefit option, which may increase the amount of money payable to your designated Beneficiaries upon your death. Once the Income Phase commences, payments upon death may be available to Beneficiaries depending on the Annuity Option elected. |
| • | Additional Benefits and Services. We make certain additional services available under the Certificate at no additional charge: |
| The Dollar Cost Averaging Program allows you to transfer a set amount from a Sub-Account to any other Sub-Account on a regular schedule. |
| The Automatic Rebalancing Program automatically rebalances your Certificate Value among your selected Sub-Accounts in order to restore your allocation to the original level. Certificate Value allocated to the fixed accounts cannot participate. |
| The Interest Sweep Option automatically transfers earnings from your Certificate Value in The Fixed Account to any one Sub-Account or combination of Sub-Accounts that you select. |
| The Systematic Withdrawal Program allows you to set up automatic periodic withdrawals from your Certificate Value. We will take any withdrawal under this program proportionally from your Certificate Value in your selected investment options unless we are instructed otherwise. |
The prospectus and Statement of Additional Information (SAI) describe all material terms and features of your Certificate. Certain non-material provisions of your Certificate may be different than the general description in the prospectus and the SAI, and certain riders may not be available because of legal requirements in your state. Any such state variations will be included in your Certificate or in riders or endorsements attached to your Certificate. See your Certificate for specific variations. Also see “Appendix F – State Variations of Certain Certificate Features.”
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Important Information You Should Consider About the Certificate
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FEES, EXPENSES, AND ADJUSTMENTS |
LOCATION IN PROSPECTUS | |||
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Are There Charges or Adjustments for Early Withdrawals? |
Yes.
If you withdraw money from your Certificate within seven years
following each Purchase Payment or apply Certificate Value
to Annuity Options E or F, you may be assessed a Contingent
Deferred Sales Charge (CDSC) of up to 7% of the amount
withdrawn (less up to a 10% free withdrawal amount) or applied
to Annuity Options E or F, declining to 0% after the seventh
year. |
Charges and Deductions – Contingent Deferred Sales Charge (CDSC) | ||
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Are There Transaction Charges? |
No. Currently, we do not assess a charge to transfer Certificate Value among the investment options during the Accumulation Phase. However, we reserve the right to assess a charge equal to the lesser of $20 or 2% of the amount transferred for each transfer after the first 12 in a single calendar year. |
Charges and Deductions – Transfer Fee | ||
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FEES, EXPENSES, AND ADJUSTMENTS |
LOCATION IN PROSPECTUS | |||
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Are There Ongoing Fees and Expenses? |
Yes. The table below describes the fees and expenses that you may pay each year, depending on the investment options and optional benefits you choose. Please refer to your Certificate specifications page(s) for information about the specific fees you will pay each year based on the options you elected. |
Charges and Deductions | ||
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Annual Fee |
Minimum |
Maximum |
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Base Certificate |
1.40%(1) |
1.40%(1) |
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Fund fees and expenses |
0.44%(2) |
3.48%(2) |
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Optional benefits available for an additional charge (for a single optional benefit, if elected) |
0.15%(3) |
0.15%(4) |
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Because your Certificate is customizable, the choices you make affect how much you will pay. To help you understand the cost of owning your Certificate, the following table shows the lowest and highest cost you could pay each year, based on current charges. This estimate assumes that you do not take withdrawals from the Certificate, which could result in the assessment of CDSCs that substantially increase costs. |
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Lowest Annual Cost: |
Highest Annual Cost:(5) |
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$1,620 |
$3,879 |
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Assumes: •
Investment of $100,000 •
5% annual appreciation •
Least expensive Fund fees and expenses •
No optional benefits •
No CDSC •
No additional Purchase Payments, transfers, or withdrawals |
Assumes: •
Investment of $100,000 •
5% annual appreciation •
Most expensive combination of optional benefits and Fund Fees and expenses •
No CDSC •
No additional Purchase Payments, transfers, or withdrawals |
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| (1) | Represents the mortality and expense risk charge and administrative charge (charged as a percentage of average account value in the Separate Account on an annualized basis) and the annual certificate maintenance charge (a fixed dollar amount that may be waived for certain Certificate Value amounts) collected during the Certificate Year that are attributable to the Certificate divided by the total average net assets that are attributable to the Certificate. |
| (2) | As a percentage of the daily value of the Certificate Value allocated to the Funds on an annualized basis. |
| (3) | This charge is the lowest current charge for the optional benefit available with this Certificate. It is the current charge for the Ratchet Death Benefit. |
| (4) | This charge is the highest current charge for the optional benefit available with this Certificate. It is the current charge for the Ratchet Death Benefit. |
| (5) | The calculation of the highest annual cost assumes election of the Ratchet Death Benefit. |
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RISKS |
LOCATION IN PROSPECTUS | |||
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Is There a Risk of Loss from Poor Performance? |
Yes. You can lose money by investing in this Certificate, including loss of principal. |
Principal Risks of Investing in the Certificate | ||
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Is This a Short-Term Investment? |
No. •
This Certificate is not designed for short-term investing and is not appropriate for an investor who needs ready access to cash. •
CDSCs may apply for up to seven years following your last Purchase Payment. •
If CDSCs apply, they will reduce the value of your Certificate if you withdraw money during that time. The benefits of tax deferral also mean the Certificate is more beneficial to investors with a long time horizon. •
Withdrawals may result in income taxes and premature distribution taxes. |
Principal Risks of Investing in the Certificate | ||
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What are the Risks Associated with the Investment Options? |
•
An investment in this Certificate is subject to the risk of poor investment performance of the Funds you choose and can vary depending upon the performance of the Funds available under the Certificate. •
Each Fund and fixed account has its own unique risks. •
You should review the investment options, including prospectuses for the available Funds and the terms of any fixed account, before making an investment decision. |
Principal Risks of Investing in the Certificate | ||
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What are the Risks Related to the Insurance Company? |
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An investment in the Certificate is subject to the risks related to the Depositor (MassMutual). Any obligations (including under any fixed account), guarantees, and benefits of the Certificate are subject to the claims-paying ability of MassMutual. If MassMutual experiences financial distress, it may not be able to meet its obligations to you. More information about MassMutual, including its financial strength ratings, is available by request by calling (800) 272-2216 or by visiting www.MassMutual.com/ratings. |
Principal Risks of Investing in the Certificate | ||
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RESTRICTIONS |
LOCATION IN PROSPECTUS | |||
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Are There Restrictions on the Investment Options? |
Yes. •
Currently, there is no charge when you transfer Certificate Value among investment options. However, MassMutual reserves the right to assess a charge equal to the lesser of $20 or 2% of the amount transferred for each transfer after the first 12 in a single calendar year. •
MassMutual reserves the right to remove or substitute Funds as investment options that are available under the Certificate. •
We reserve the right to limit transfers if frequent or large transfers occur. •
We reserve the right to reject subsequent Purchase Payments into the DCA Fixed Account to establish a DCA Fixed Account Term or into a current DCA Term. •
You may not transfer your Certificate Value in a DCA Fixed Account to The Fixed Account. •
Transfers from The Fixed Account to the Funds are subject to certain restrictions. |
General
Information about Massachusetts
Mutual Life Insurance
Company, the Separate
Account and the Investment
Options – The Funds | ||
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Are There Any Restrictions on Certificate Benefits? |
Yes. •
The Annual Ratchet Death Benefit was only available if the Participant purchased a Certificate on or after May 1, 2000 and was under Age 80. •
Withdrawals may negatively impact the Annual Ratchet Death Benefit. |
Death Benefit – Ratchet Death Benefit | ||
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TAXES |
LOCATION IN PROSPECTUS | |||
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What are the Certificate’s Tax Implications |
•
You should consult with a tax professional to determine the tax implications of an investment in and payments received under the Certificate. •
If your Certificate is funding a qualified retirement plan or individual retirement annuity (IRA), you do not receive any additional tax deferral. •
Earnings on your Certificate are taxed at ordinary income tax rates when you withdraw them, and you may have to pay an additional income tax if you take a withdrawal before age 59½. Earnings for this purpose consist of Certificate Value in excess of your after-tax investment (cost basis) in the Certificate. |
Taxes | ||
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CONFLICTS OF INTEREST |
LOCATION IN PROSPECTUS | |||
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How are Investment Professionals Compensated? |
•
Your registered representative may have received compensation, in the form of commissions, for selling this Certificate to you. If your registered representative is also a MassMutual insurance agent, they are also eligible for certain cash and non-cash benefits from MassMutual. Cash compensation includes bonuses and allowances based on factors such as sales, productivity and persistency (Certificate retention). Non-cash compensation includes various recognition items such as prizes and awards as well as attendance at, and payment of the costs associated with attendance at, conferences, seminars and recognition trips, and also includes contributions to certain individual plans such as pension and medical plans. •
Sales of the Certificate may have helped these registered representatives and their supervisors qualify for such benefits. •
This conflict of interest may have influenced your registered representative to offer or recommend this Certificate over another investment. |
Other Information – Distribution | ||
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Should I Exchange my Certificate? |
•
Because the Certificate is no longer sold, you would not be affected by a scenario in which you are asked to replace an existing annuity contract you own with a new purchase of this Certificate. However, in general you should be aware that some investment professionals may have a financial incentive to offer you a new contract in place of the one you already own. Thus, in general, you should only exchange your annuity contract if you determine, after comparing the features, fees, and risks of both contracts, and any fees or penalties to terminate your existing contract,that it is preferable for you to purchase the new annuity rather than continue to own the existing annuity. |
N/A | ||
11
Additional Information about Fees
The following tables describe the fees and expenses you pay when buying, owning, and surrendering or making withdrawals from the Certificate. Please refer to your Certificate specifications page(s) for information about the specific fees you will pay each year based on the options you have elected.
The first table describes the fees and expenses that you will pay at the time that you buy the Certificate, surrender or make withdrawals from the Certificate, or you transfer the Certificate Value between investment options. State Premium Taxes may also be deducted.
|
Transaction Expenses |
Maximum |
Current |
|
Contingent Deferred Sales Charge (CDSC)(1) |
7% |
7% |
| (1) | The
CDSC percentage charged is based on the “age” of the Purchase Payment(s) being withdrawn or applied to certain Annuity Options
(i.e., the number of full years
from application of the Purchase Payment). The CDSC percentage decreases over time in the following manner: 7% in year 1, 6% in year 2, 5% in year 3, 4% in year 4, 3% in year 5, 2% in year 6, 1% in year 7, and 0% in year 8 or later. |
|
Transfer
Fee |
12 free transfers per calendar year; thereafter, the lesser of $20 or 2% of the amount transferred. |
$0 |
The next table describes fees and expenses you will pay each year during the time you own the Certificate, not including underlying Fund fees and expenses.
If you choose to purchase an optional benefit, you will pay additional charges, as shown below.
|
Annual Certificate Charges |
Maximum |
Current |
|
Administrative Expenses |
$60(1) |
$30(1) |
|
Base
Certificate Expenses |
1.50%(2) |
1.40%(2) |
|
Optional Benefit Expenses |
||
|
Ratchet
Death Benefit |
||
|
if you were Age 60 or less when we issued the Certificate |
0.35%(3) |
0.15%(4) |
|
if you were Age 61 through 70 when we issued the Certificate |
0.50%(3) |
0.15%(4) |
|
if you were Age 71 or older when we issued the Certificate |
0.70%(3) |
0.15%(4) |
| (1) | This represents the annual certificate maintenance charge. Currently waived if Certificate Value is $50,000 or greater when we are to assess the charge, although we reserve the right to raise this to $100,000 as stated in the Certificate. |
| (2) | The Base Certificate Expenses represent the sum of the mortality and expense risk charge and the administrative charge. The current mortality and expense risk charge is 1.25% annually and the current administrative charge is 0.15% annually. The maximum mortality and expense risk charge is 1.25% annually and the maximum administrative charge is 0.25% annually. These charges are a percentage of average account value in the Separate Account on an annualized basis. |
| (3) | The charge is a percentage on an annual basis of the daily value of your Certificate Value allocated to the Funds. |
| (4) | The charge is a percentage on an annual basis of the daily value of your Certificate Value allocated to the Funds and the fixed accounts, unless that charge exceeds the maximum charge, in which case the charge is the maximum charge. |
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The next item shows the minimum and maximum operating expenses charged by the Funds that you may pay periodically during the time that you own the Certificate. Expenses shown may change over time and may be higher or lower in the future. A complete list of Funds available under the Certificate, including their annual expenses, may be found in Appendix A.
Annual Fund Operating Expenses
|
Charge |
Minimum |
Maximum |
|
Range of annual Fund operating expenses (including management fees, distribution and/or service (12b-1) fees and other expenses).(1) |
0.44% |
3.48% |
| (1) | The Fund expenses used to prepare this item were provided to us by the Funds. We have not independently verified such information provided to us by Funds that are not affiliated with us. |
The information above describes the fees and expenses you pay related to the Certificate. For information on compensation we may receive from the Funds and their advisers and sub-advisers, see “General Information about Massachusetts Mutual Life Insurance Company, the Separate Account and the Investment Options – Compensation We Receive from Funds, Advisers and Sub-Advisers.” For information on compensation we pay to broker-dealers selling the Certificate, see “Distribution.”
These examples are intended to help you compare the cost of investing in the Certificate with the cost of investing in other contracts that offer variable options. These costs include Participant transaction expenses, annual Certificate fees, and Fund fees and expenses.
The examples assume all Certificate Value is allocated to the Funds. Your costs could differ from those shown below if you invest in the fixed account option.
Example I assumes that you withdraw all your Certificate Value at the end of each year shown.
Example II assumes you do not withdraw any Certificate Value at the end of each year shown, or that you decide to begin the Income Phase at the end of each year shown and we do not deduct a Contingent Deferred Sales Charge. (Currently the Income Phase is not available until 30 days after you purchase your Certificate.)
Both Example I and Example II assume:
| • | that you invest $100,000 in the Certificate for the time periods indicated, |
| • | that you allocate it to a Sub-Account that has a 5% gross return each year, |
| • | that you elected the Ratchet Death Benefit and you were at least Age 71, and not yet Age 80 or older when we issued the Certificate, |
| • | that either the current or maximum fees and expenses in the “Additional Information About Fees” tables apply, and |
| • | that you selected one of two Sub-Accounts: |
| ○ | the one that invests in the Fund with the maximum operating expenses; or |
| ○ | the one that invests in the Fund with the minimum operating expenses. |
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Examples Using Maximum Expenses
Based on the above assumptions, your costs would be as shown in the following table. Your actual costs may be higher or lower.
|
Example I |
Example II | |||||||
|
Years |
1 |
3 |
5 |
10 |
1 |
3 |
5 |
10 |
|
Sub-Account with maximum operating expenses |
$11,932 |
$21,323 |
$30,616 |
$55,093 |
$5,680 |
$16,924 |
$28,016 |
$55,093 |
|
Sub-Account with minimum operating expenses |
$8,940 |
$12,608 |
$16,467 |
$29,388 |
$2,640 |
$8,108 |
$13,838 |
$29,388 |
Examples
Using Current Expenses
Based on the above assumptions, your costs would be as shown in the following table. Your actual costs may be higher or lower.
|
Example I |
Example II | |||||||
|
Years |
1 |
3 |
5 |
10 |
1 |
3 |
5 |
10 |
|
Sub-Account with maximum operating expenses |
$11,328 |
$19,581 |
$27,830 |
$50,232 |
$5,030 |
$15,085 |
$25,135 |
$50,232 |
|
Sub-Account with minimum operating expenses |
$8,290 |
$10,651 |
$13,088 |
$22,824 |
$1,990 |
$6,151 |
$10,567 |
$22,824 |
We estimate that the annual certificate maintenance charge under the current expenses and maximum expenses would be $0 or, as a percentage, 0.00%.
The examples do not reflect any Premium Taxes. However, Premium Taxes may apply.
The examples should not be considered a representation of past or future expenses. Your actual expenses may be higher or lower than those shown in the examples. The assumed 5% annual rate of return is hypothetical. Actual returns may be greater or less than the assumed hypothetical return.
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Principal Risks of Investing in the Certificate
There are risks associated with investing in the Certificate.
Market Risk. You can lose money in a variable annuity, including potential loss of your entire amount invested. The value of your investment and any returns will depend on the performance of the Funds you select. Those Funds could decline in value very significantly, and the risk of loss varies with each Fund. You bear the risk of any decline in your Certificate Value resulting from the poor performance of the Funds you have selected. The investment risks are described in the prospectuses for the Funds.
Early Withdrawal Risk. Variable annuities are not a short-term investment vehicle. The CDSC may apply for a number of years, so the Certificate should only be purchased for the long-term. Under some circumstances, you may receive less than the sum of your Purchase Payments. In addition, full or partial withdrawals will be subject to income tax to the extent that they consist of earnings and may be subject to a 10% additional income tax if taken before age 59½. Accordingly, you should carefully consider your income and liquidity needs before purchasing a Certificate. Additional information about these risks appear in “Important Information You Should Consider About the Certificate,” “Withdrawals,” and “Taxes.”
Certificate Benefits Risk. If you have elected the Annual Ratchet Death Benefit, you will decrease your ratchet death benefit if you make a partial withdrawal. If you make a withdrawal, the annual ratchet death benefit is equal to the most recently calculated annual ratchet death benefit, minus an adjustment for the withdrawal.
Insurance Company Risk. It is possible that we could experience financial difficulty in the future and even become insolvent, and therefore unable to provide all of the guarantees and benefits that we promise that exceed the value of the assets in the Separate Account. Similarly, our experiencing financial difficulty could interfere with our ability to fulfill our obligations under the fixed accounts and other General Account obligations.
Certificate Changes Risk. We reserve the right to limit transfers. We also reserve the right to remove or substitute Funds as investment options available under the Certificate. We may impose limits on the minimum and maximum amounts that you may invest or other transaction limits that may limit your use of the Certificate.
Tax Consequences. Withdrawals are generally taxable to the extent of any earnings in the Certificate, and prior to age 59½ an additional income tax may apply to the taxable portion of the withdrawal. In addition, even if the Certificate is held for years before any withdrawal is made, earnings are taxable as ordinary income rather than capital gains. Earnings for this purpose consist of Certificate Value in excess of your after-tax investment in the Certificate.
Cybersecurity and Certain Business Continuity Risks. Our operations support complex transactions and are highly dependent on the proper functioning of information technology and communication systems. Any failure of or gap in the systems and processes necessary to support complex transactions and avoid systems failure, fraud, information security failures, processing errors, cyber intrusion, loss of data and breaches of regulation may lead to a materially adverse effect on our results of operations and corporate reputation. In addition, we must commit significant resources to maintain and enhance our existing systems in order to keep pace with applicable regulatory requirements, industry standards and customer preferences. If we fail to maintain secure and well-functioning information systems, we may not be able to rely on information for product pricing, compliance obligations, risk management and underwriting decisions. In addition, we cannot assure investors or consumers that interruptions, failures or breaches in security of these processes and systems will not occur, or if they do occur, that they can be timely detected and remediated. The occurrence of any of these events may have a materially adverse effect on our businesses, results of operations and financial condition.
For additional detail regarding cybersecurity and related risks, please see “Other Information – Computer System, Cybersecurity, and Service Disruption Risks” in this prospectus.
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General Information about Massachusetts Mutual Life Insurance Company, the Separate Account and the Investment Options
MassMutual and its domestic life insurance subsidiaries provide individual and group life insurance, disability insurance, individual and group annuities and guaranteed interest contracts to individual and institutional customers in all 50 states of the U.S., the District of Columbia and Puerto Rico. Products and services are offered primarily through MassMutual’s distribution channels: MassMutual Financial Advisors, MassMutual Strategic Distributors, Institutional Solutions and Worksite.
MassMutual is organized as a mutual life insurance company. MassMutual’s home office is located at 1295 State Street, Springfield, Massachusetts 01111-0001.
Financial Condition of the Company
We use General Account assets for many purposes, including to pay death benefits, Annuity Payments, withdrawals and transfers from any fixed account and to pay amounts we provide to you through any elected additional feature that are in excess of your Certificate Value allocated to the Separate Account. Any amounts that we may be obligated to pay under the Certificate in excess of Certificate Value are subject to our financial strength and claims-paying ability and our long-term ability to make such payments. The assets of the Separate Account, however, are also available to cover the liabilities of our General Account, but only to the extent they exceed our liabilities under the Certificate and other contracts we issue that are funded by the Separate Account.
We issue other types of insurance policies and financial products as well, and we pay our obligations under those products from our assets in the General Account.
As an insurance company, we are required by state insurance regulation to hold a specified amount of reserves in order to meet the contractual obligations of our General Account to our insurance policies and financial products. We monitor our reserves so that we hold sufficient amounts to cover actual or expected contract and claims payments. In addition, we hedge our investments in our General Account and may require that purchasers of certain of our variable insurance products allocate Purchase Payments and Certificate Value according to specified investment requirements. Even with these safeguards in place, there are risks to purchasing any insurance product and there is no guarantee that we will always be able to meet our claims-paying obligations.
State insurance regulators also require insurance companies to maintain a minimum amount of capital, which acts as a cushion if the insurer suffers a financial setback because of the inherent risks in the insurer’s operations. These risks include losses that we may incur as the result of defaults on the payment of interest or principal on our General Account assets – e.g., bonds, mortgages, general real estate investments, and stocks – as well as the loss in market value of these investments.
We continue to evaluate our investment portfolio to mitigate market risk and actively manage the investment in that portfolio.
The MassMutual financial information in the SAI includes a more detailed discussion of the risks inherent in our General Account assets. We encourage both existing and prospective Participants to read and understand our financial statements.
We established Massachusetts Mutual Variable Annuity Separate Account 4 (Separate Account) as a separate account under Massachusetts law on July 9, 1997. The Separate Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940 (1940 Act).
The Separate Account holds the assets that underlie the Certificates (and certain other contracts that we issue), except any assets allocated to our General Account. We keep the Separate Account assets separate from the assets of our General Account and other Separate Accounts. The Separate Account is divided into Sub-Accounts, each of which invests exclusively in a single Fund.
We own the assets of the Separate Account. We credit gains to, or charge losses against, the Separate Account, whether or not realized, without regard to the performance of other investment accounts. The Separate Account’s assets may not be used to pay any of our liabilities other than those arising from the Certificates (or other contracts that we issue and that are funded by the Separate Account). If the Separate Account’s assets exceed the required reserves and other liabilities, we may transfer the excess to our General Account.
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The obligations of the Separate Account are not our generalized obligations and will be satisfied solely by the assets of the Separate Account. We are obligated to pay all amounts promised to investors under the Certificate.
We offer three fixed accounts as investment options: two Fixed Accounts for Dollar Cost Averaging (DCA Fixed Accounts) and The Fixed Account (collectively, the fixed accounts). The fixed accounts are investment options within our General Account. Information regarding the fixed accounts, including its name, its term, and its minimum guaranteed interest rate, is available in an appendix to this Prospectus. See “Appendix A – Investment Options Available Under the Certificate.”
Purchase Payments allocated to the fixed accounts and transfers to the fixed accounts become part of our General Account which supports insurance and annuity obligations. The General Account has not been registered under the Securities Act of 1933 (1933 Act) nor is the General Account registered under the 1940 Act because of exemptive and exclusionary provisions. Accordingly, neither the General Account nor any interests therein are generally subject to the provisions of the 1933 Act or the 1940 Act. Disclosures regarding the fixed accounts or the General Account, however, are subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in this prospectus.
DCA Fixed Accounts
Each DCA Fixed Account is a fixed account from which assets are systematically transferred to any Fund(s). You may not transfer your Certificate Value in a DCA Fixed Account to The Fixed Account. During the Accumulation Phase, you may choose to have your Purchase Payments allocated to a DCA Fixed Account for the period of the DCA Fixed Account Term (DCA Term). Your election must be in writing.
Currently, you have a choice of two DCA Fixed Accounts:
| (1) | DCA Fixed Account with a DCA Term of 6 months; or |
| (2) | DCA Fixed Account with a DCA Term of 12 months. |
To the extent permitted by law, we reserve the right to change the duration of the DCA Terms in the future. Your DCA Term will terminate upon payment of the death benefit. You may only participate in one DCA Fixed Account at a time.
How to Participate in the DCA Fixed Account
To participate in the DCA Fixed Account you must apply a new Purchase Payment of $5,000 or greater to a DCA Term or provide us with evidence satisfactory to us that you will apply $5,000 or more to a DCA Term via transfer(s) from another financial institution. Purchase Payments which originate from an annuity contract issued by us or certain of our affiliates cannot be allocated to a DCA Fixed Account. We reserve the right to reject Purchase Payments. You cannot transfer current Certificate Value into the DCA Fixed Account. The first DCA transfer will occur five Business Days after we receive all or a portion of the Purchase Payment into the DCA Fixed Account.
You may apply additional Purchase Payments to the current DCA Term. Those additional Purchase Payments will be added to the amount in the current DCA Term and will participate only in the remaining period of the current DCA Term.
We make scheduled monthly transfers from the DCA Fixed Account. The first transfer will occur five Business Days after we receive your payment allocated to the DCA Fixed Account and a completed DCA Fixed Account election form. You may not take partial withdrawals from the DCA Fixed Account.
You may make a one-time transfer of your remaining Certificate Value in the DCA Fixed Account into any of the Fund(s), prior to the expiration of your DCA Term. Your transfer will be effective on the Business Day we receive, in Good Order, your Written Request or telephone request at our Service Center. Our Business Day closes when the NYSE closes, usually 4:00 p.m. Eastern Time. If we receive your transfer request in Good Order at our Service Center on a Non-Business Day or after our Business Day closes, your transfer request will be effective on the next Business Day. We reserve the right to assess a fee for processing transactions under the DCA Fixed Account.
If you elect to make an allocation to a DCA Fixed Account, but your Annuity Date will occur prior to the end of that DCA Term, your DCA Term will expire early. It will expire on your Annuity Date. We will transfer any Certificate Value remaining in the DCA Fixed Account on your Annuity Date in accordance with your DCA Fixed Account transfer instructions in effect at that time. No amounts will remain in the DCA Fixed Account after your Annuity Date.
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We periodically set the interest rate we credit to the DCA Fixed Account. We will credit an interest rate at a rate not less than the minimum allowed by state law at the time we issue your Certificate.
Information regarding the DCA Fixed Account is available in an appendix to this Prospectus. See “Appendix A – Investment Options Available Under the Certificate” for the applicable minimum guaranteed interest rate.
The interest rate you will receive for the entire DCA Term is the interest rate in effect on the date your DCA Term begins. We guarantee the interest rate for the full DCA Term.
The Fixed Account
You may allocate Purchase Payments to The Fixed Account. You can also make transfers of your Certificate Value into The Fixed Account. You do not participate in the investment performance of the assets in The Fixed Account. Instead, we credit your Certificate with interest at a specified rate that we declare in advance. We will credit an interest rate at a rate not less than the minimum allowed by state law at the time we issue your Certificate. We reserve the right to change the minimum guaranteed interest rate for newly issued Certificates, subject to applicable state law.
Information about each Fund, including its name, type or investment objective, investment adviser(s), expenses and performance is available in an appendix to this Prospectus. See “Appendix A – Investment Options Available Under the Certificate.” There is no assurance that any of the Funds will achieve their stated objectives. Certificate Value allocated to a Sub-Account will vary based on the investment experience of the corresponding Fund in which the Sub-Account invests. There is a risk of loss of the entire amount invested.
These Funds are only available to insurance company separate accounts and qualified retirement plans, are not available for purchase directly by the general public, and are not the same as other mutual fund portfolios with very similar or nearly identical names and investment goals and policies that are sold directly to the public. While a Fund may have many similarities to these other publicly available mutual funds, you should not expect the investment results of the Fund to be the same as the investment results of those publicly available mutual funds. We do not guarantee or make any representation that the investment results of the Funds will be comparable to the investment results of any other mutual fund, even a mutual fund with the same investment adviser or manager.
The prospectus for each Fund contains more detailed information about the Fund. You may obtain copies of the Fund prospectuses by contacting our Service Center. If you received a summary prospectus for a Fund, please follow the directions on the first page of the summary prospectus to obtain a copy of the full Fund prospectus.
Addition, Removal, Closure or Substitution of Funds
We have the right to change the Funds offered through the Certificate, but only as permitted by law. If the law requires, we will also get your approval and the approval of any appropriate regulatory authorities. Changes may only impact certain Participants. Examples of possible changes include: adding new Funds or fund classes; removing existing Funds or fund classes; closing existing Funds or fund classes; or substituting a Fund with a different Fund. New or substitute Funds may have different fees and expenses. We will not add, remove, close or substitute any shares attributable to your interest in a Sub-Account without notice to you and prior approval of the SEC, to the extent required by applicable law. We reserve the right to transfer Separate Account assets to another separate account that we determine to be associated with the class of certificates to which your Certificate belongs.
Conflicts of Interest
The Funds available with the Certificate may also be available to registered separate accounts offering variable annuity and variable life products of other affiliated and unaffiliated insurance companies, as well as to the Separate Account and other separate accounts of MassMutual. Although we do not anticipate any disadvantages to this, it is possible that a material conflict may arise between the interests of the Separate Account and one or more of the other separate accounts participating in the Funds. A conflict may occur, for example, as a result of a change in law affecting the operations of variable life and variable annuity separate accounts, differences in the voting instructions of the owners and payees and those of other insurance companies, or some other reason. In the event of a conflict of interest, we will take steps necessary to protect owners and payees, including withdrawing the Separate Account from participation in the Funds involved in the conflict or substituting shares of other funds.
We do not recommend or endorse any particular Fund, and we do not provide investment advice. You are responsible for choosing the Funds, and the amounts allocated to each, that are appropriate for your own individual circumstances and your investment goals,
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financial situation, and risk tolerance. You bear the risk of any decline in your Certificate Value resulting from the performance of the Funds that you choose.
Selection of Funds
When we select the Funds offered through the Certificate, we consider various factors, including, but not limited to, asset class coverage, the strength of the adviser’s or sub-adviser’s reputation and tenure, brand recognition, performance, and the capabilities and qualifications of each investment firm. We may also consider whether the Fund, its service providers (e.g., the investment adviser or sub-advisers), or its affiliates will make payments to us or our affiliates in connection with certain administrative, marketing, and support services, or whether affiliates of the Fund can provide marketing and distribution support for sales of the Certificates. (For additional information on these arrangements, see the section below entitled “Compensation We Receive from Funds, Advisers and Sub-Advisers.”) We review the Funds periodically and may remove a Fund or limit its availability to new Purchase Payments and/or transfers of Certificate Value if we determine that a Fund no longer satisfies one or more of the selection criteria, and/or if the Fund has not attracted significant allocation from Owners.
Compensation We Receive from Funds, Advisers and Sub-Advisers
Compensation We Receive from Advisers and Sub-Advisers
We and certain of our insurance affiliates receive compensation from the advisers and sub-advisers to some of the Funds. We may use this compensation to pay expenses that we incur in promoting, issuing, distributing and administering the Certificate and in providing services on behalf of the Funds in our role as intermediary to the Funds. The amount of this compensation is determined by multiplying a specified annual percentage rate by the average net assets held in that Fund that are attributable to the variable annuity and variable life insurance products issued by us and certain of our insurance affiliates that offer the particular Fund. These percentage rates differ, but currently do not exceed 0.25%.
Some advisers and sub-advisers pay us more than others; some do not pay us any such compensation.
The compensation may not be reflected in a Fund’s expenses because this compensation may not be paid directly out of a Fund’s assets. These payments also may be derived, in whole or in part, from the advisory fee deducted from Fund assets. Participants, through their indirect investment in the Funds, bear the costs of these advisory fees (see the Funds’ prospectuses for more information).
In addition, we may receive fixed dollar payments from the advisers and sub-advisers to certain funds so that the adviser and sub-adviser can participate in sales meetings conducted by us. Attending such meetings provides advisers and sub-advisers with opportunities to discuss and promote their funds. For a list of the Funds whose advisers and sub-advisers currently pay such compensation, visit www.MassMutual.com/legal/compensation-arrangements or call our Service Center.
Compensation We Receive from Funds
We and certain of our affiliates also receive compensation from certain Funds pursuant to Rule 12b-1 under the 1940 Act. This compensation is paid out of the Fund’s assets and may be as much as 0.25% of the average net assets of an underlying Fund which are attributable to variable contracts issued by certain of our insurance affiliates. An investment in a Fund with a 12b-1 fee will increase the cost of your investment in the Certificate.
We are the legal owner of the Fund shares. When a Fund solicits proxies in conjunction with a vote of shareholders, we are required to obtain, from you and other Participants, instructions as to how to vote those shares.
When we receive those instructions, we will vote all the shares for which we do not receive voting instructions in proportion to those instructions. This will also include any shares that we own on our own behalf. This may result in a small number of Participants controlling the outcome of a vote. If we determine that we are no longer required to vote shares in accordance with Participant instructions, we will vote the shares in our own right.
During the Accumulation Phase, we determine the number of shares you may vote by dividing your Certificate Value in each Fund by $100, including fractional shares. You do not have any voting rights during the Annuity Phase.
We may, when required by state insurance regulatory authorities, disregard voting instructions, if such instructions would require shares to be voted so as to cause a change in the sub-classification or investment objective of a Fund or to approve or disapprove an
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investment advisory contract for the Fund. In addition, we may disregard voting instructions that would require a change in the investment policy or investment adviser of one or more of the available Funds. Our disapproval of such change must be reasonable and based on a good faith determination that the change would be contrary to state law or otherwise inappropriate, considering the Fund’s objectives and purpose. If we disregard Participant voting instructions, we will advise Participants of our action and the reasons for such action.
This section describes the charges and deductions we make under the Certificate to compensate us for the services and benefits we provide, costs and expenses we incur and risks we assume. We may profit from the charges deducted and we may use any such profits for any purpose, including payment of marketing and distribution expenses. These charges and deductions reduce the return on your investment in the Certificate.
Each Business Day we deduct our insurance charges from the assets of the Separate Account. This charge is calculated based on a percentage of the daily value of the assets invested in each Fund, after Fund expenses are deducted. We do this as part of our calculation of the value of the Accumulation Units and the annuity units. The insurance charge has two parts:
| • | the mortality and expense risk charge; and |
| • | the administrative charge. |
Mortality and Expense Risk Charge
The mortality and expense risk is for:
| • | the mortality risk associated with the insurance benefits provided, including our obligation to make Annuity Payments after the Annuity Date regardless of how long all Annuitants live, the death benefits, and the guarantee of rates used to determine your Annuity Payments during the Income Phase; and |
| • | the expense risk that the current charges will be insufficient to cover the actual cost of administering the Certificate. |
We cannot increase the mortality and expense risk charge.
|
Mortality and Expense Risk Charge |
|||
|
When Charge is Deducted |
Current (annual rate) |
Maximum (annual rate) | |
|
Daily as a percentage of the daily value of the assets invested in each Sub-Account |
1.25% |
1.25% | |
For all Certificates, if the amount of the charge is more than sufficient to cover the mortality and expense risk, we will make a profit on the charge. We may use this profit for any purpose, including the payment of marketing and distribution expenses for the Certificate. If the mortality and expense risk charge is not sufficient cover the mortality and expense risk, we will bear the loss.
Administrative Charge
This charge reimburses us for the expenses associated with the administration of the Certificate and the Separate Account. Some of these expenses are: preparation of the Certificate, confirmations, annual reports and statements, maintenance of Certificate records, personnel costs, legal and accounting fees, filing fees, and computer and systems costs. If we increase this charge, we will give you 90 days prior notice.
|
Administrative Charge |
|||
|
When Charge is Deducted |
Current (annual rate) |
Maximum (annual rate) | |
|
Daily
as a percentage of the daily value of the assets |
0.15% |
0.25% | |
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Annual Certificate Maintenance Charge
This charge reimburses us for the costs of maintaining the Certificate. We will deduct the annual certificate maintenance charge proportionately from the Sub-Account(s) you have selected. If we increase this charge, we will give you 90 days prior notice.
|
Annual Certificate Maintenance Charge | |||
|
Certificate
Value at Time |
When Charge is Deducted |
Current (annual rate) |
Maximum (annual rate) |
|
Less than $50,000 |
On each Certificate Anniversary and full withdrawal |
$30 |
$60 |
|
$50,000 or more(1) |
Not applicable |
$0 |
$0 |
| (1) | We reserve the right to increase the Certificate Value amount at which we will waive this charge to $100,000 as provided by the Certificate. |
If you make a total withdrawal from your Certificate, and the Certificate Value is less than $50,000, we will deduct the full annual certificate maintenance charge. If your Certificate enters the Income Phase on a date other than its Certificate Anniversary and the Certificate Value is less than $50,000, we will deduct a pro rata portion of the charge.
Although there is currently no charge to transfer Certificate Value among the Sub-Accounts, the Company reserves the right to charge $20 per transfer or 2% of the amount that is transferred, whichever is less, in excess of 12 during a single Certificate Year. The Company will exercise this right if a significant increase in transfer activity by Participants leads to an increase in costs to administer the Certificate.
During the Income Phase, we allow six transfers each calendar year, and they are not subject to a transfer fee.
|
Transfer Fee | |||
|
When Charge is Deducted |
Current (annual rate) |
Maximum (annual rate) | |
|
During
the Accumulation |
Upon each transfer |
$0 |
$20 per transfer or 2% of the amount that is transferred, whichever is less. |
Contingent Deferred Sales Charge (CDSC)
We do not deduct a sales charge when we receive a Purchase Payment. However, we may assess a CDSC for withdrawals that exceed the free withdrawal amount. Additionally, we may assess a Contingent Deferred Sales Charge on amounts applied to Annuity Option E or F. We use this charge to cover certain expenses relating to the sale of the Certificate. The charge is a percentage of the Purchase Payments you withdraw that exceed the free withdrawal amount.
If we assess a CDSC, we will deduct it from the amount you withdraw or apply to Annuity Option E or F.
Each Purchase Payment has its own CDSC schedule. The amount of the charge depends on the amount of the Purchase Payments, the length of time since you made the Purchase Payments, and the amount of your withdrawal or, if applicable, the amount you apply to Annuity Option E or F.
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The Contingent Deferred Sales Charge is assessed as follows:
|
CDSC | |
|
Year
Since Purchase |
Charge |
|
1 |
7% |
|
2 |
6% |
|
3 |
5% |
|
4 |
4% |
|
5 |
3% |
|
6 |
2% |
|
7 |
1% |
|
8 and later |
0% |
See “Appendix C – Contingent Deferred Sales Charge (CDSC) Example.”
After your Purchase Payment has been in the Certificate for seven years, there is no charge when you withdraw the Purchase Payment. Each Purchase Payment has its own seven-year sales charge period. We take withdrawals first from earnings, and then from Purchase Payments. For purposes of the Contingent Deferred Sales Charge, we treat withdrawals as coming from the oldest Purchase Payments first.
In addition to the free withdrawals described later in this section, we will not impose a CDSC under the following circumstances.
| • | Upon payment of the death benefit. |
| • | On amounts withdrawn as RMDs, to the extent they exceed the free withdrawal amount. In order to qualify for this exception, the annual RMD must be calculated by us, based solely on the fair market value of the Certificate. If you choose to take withdrawals from the Certificate to satisfy your RMDs for other qualified assets, a CDSC may apply. |
| • | Upon application of the Certificate Value to any Single Life or Joint and Survivor Life Annuity Option, or to a Period Certain Annuity under Annuity Option E of at least ten years. |
| • | If you redeem excess contributions from a plan qualifying for special income tax treatment. These types of plans are referred to as qualified plans, including Individual Retirement Annuities (IRAs). We look to the Internal Revenue Code for the definition and description of excess contributions. |
| • | Under a replacement program offered by us, when the Certificate is exchanged for another variable annuity contract issued by us or one of our affiliated insurance companies, of the type and class which we determine is eligible for such an exchange. A CDSC may apply to the certificate received in the exchange. A reduced CDSC schedule may apply under the Certificate if another variable annuity contract issued by us or one of our affiliated insurance companies is exchanged for the Certificate. Exchange programs may not be available in all states. We have the right to modify, suspend or terminate any exchange program any time without prior notification. If you want more information about our current exchange programs, contact your registered representative or us at our Service Center. |
| • | If you apply your entire Certificate Value to purchase a single premium immediate life annuity or a fixed deferred annuity issued by us or one of our affiliates, subject to certain restrictions. |
| • | On any withdrawals made or amounts applied to an Annuity Option when you reach the latest permitted Annuity Date for your Certificate. |
You may withdraw, without incurring a Contingent Deferred Sales Charge, the greater of:
| • | the part of your Certificate Value that is attributable to positive investment results, if any, on the date of withdrawal; or |
| • | 10% of Purchase Payments made to your Certificate as of the date of withdrawal reduced by any free withdrawal(s) you previously took during the current Certificate Year. |
We take withdrawals first from any positive investment results, if any, and then from Purchase Payments. If you withdraw an amount which exceeds your investment gain, we will reduce the amount of your remaining Purchase Payments. We will calculate the Contingent Deferred Sales Charge based on your oldest Purchase Payments first.
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Any unused free withdrawal amount(s) during any particular Certificate Year may not be carried over to any succeeding Certificate Year.
See “Appendix B – Free Withdrawal Amount (FWA) Examples.”
Some states and other governmental entities charge Premium Taxes or similar taxes. We are responsible for the payment of these taxes and will make a deduction for them from your Certificate Value, or we may adjust the annuity rates for Premium Tax assessed. Some of these taxes are due when your Certificate is issued, others are due when Annuity Payments begin. Currently we do not charge you for these taxes until you begin receiving Annuity Payments or you make a total withdrawal. We may discontinue this practice and assess the charge when the tax is due. Premium Taxes generally range from 0% to 3.5%, depending on the state.
We will deduct from the Certificate any income taxes which we incur because of the operation of the Separate Account. At the present time, we are not making any such deductions. We will deduct any withholding taxes required by law.
The Separate Account purchases shares of the Funds at net asset value. The net asset value of each Fund reflects investment management fees and other expenses already deducted from the assets of the Fund. In addition, one or more of the Funds available as an investment option may pay a distribution fee out of the Fund’s assets to us known as a 12b-1 fee. Any investment in one or more of the Funds with a 12b-1 fee will increase the cost of your investment in the Certificate. Please refer to the Fund prospectuses for more information regarding these expenses.
The Contract Owner is the person or non-natural person who maintains the ownership rights stated in the contract that are not delegated to the Participants. The owner of the contract is usually an employer, trustee or other sponsor of a group that is comprised of Participants. If the contract is purchased as part of an employee benefit plan, the plan may govern which ownership rights are maintained by the Contract Owner and which are delegated to Participants.
This prospectus describes your Certificate, which is a contract between you, the Participant, and MassMutual. However, in tax discussions, we use the word “contract” to mean “Certificate” and “owner” to mean “Participant.”
In this prospectus, “you” and “your” refer to the Participant. The Participant is named at the time you apply for a Certificate. The Participant can be an individual or non-natural person (e.g., a corporation, limited liability company, partnership or certain other entities). We will not issue a Certificate to you if you have passed Age 85 as of the date we proposed to issue the Certificate.
If your Certificate is non-qualified and owned by a non-natural person, the Certificate will generally not be treated as an annuity for tax purposes. This means that gain in the Certificate will be taxed each year while the Certificate is in the Accumulation Phase. This treatment is not generally applied to a Certificate held by a trust or other entity as an agent for a natural person. Before purchasing a Certificate to be owned by a non-natural person or before changing ownership on an existing Certificate that will result in it being owned by a non-natural person, you should consult a tax adviser to determine the tax impact. See “Taxes – Non-Natural Owner.”
As the Participant of the Certificate, you exercise all rights under the Certificate. The Participant names the Beneficiary. You may change the Participant of the Certificate at any time prior to the Annuity Date by sending written authorization on our form, in Good Order, to our Service Center. If you change the Participant, the change is subject to our approval. Changing the Participant may result in tax consequences. On and after the Annuity Date, you continue as the Participant.
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Certificates under qualified plans, including section 457 deferred compensation plans, generally must be held by the plan sponsor or plan trustee. Except for TSAs, Keogh plans, and Individual Retirement Annuities (IRAs), an individual cannot be the Participant under a Certificate held to fund a qualified plan. Therefore, the individuals covered by the qualified plan have no ownership rights.
Non-Qualified Contracts can be owned by Joint Participants. Unless prohibited by state law, only you and your spouse can be Joint Participants. We will not issue a Certificate to you if either proposed Joint Participant has passed Age 85 as of the date we proposed to issue the Certificate. If there are Joint Participants, we require authorization from both Joint Participants for all transactions.
The Annuitant is the person on whose life we base Annuity Payments. You designate the Annuitant at the time of application. We will not issue a Certificate to you if the proposed Annuitant has passed Age 85 as of the date we proposed to issue the Certificate. You may change the Annuitant before the Annuity Date, subject to our approval. However, the Annuitant may not be changed on a Certificate owned by a non-natural person unless the Certificate was issued under a plan pursuant to IRC Section 401(a), 408(a), 408(b) or 408A. We will use the Age of the Annuitant to determine all applicable benefits under a Certificate owned by a non-natural person.
The Beneficiary is the person(s) or entity(ies) you name to receive any death benefit. You name the Beneficiary at the time of application. You may change the Beneficiary at any time before you die. You may name an irrevocable Beneficiary(ies). In that case, a change involving the irrevocable Beneficiary requires the consent of the irrevocable Beneficiary. If an irrevocable Beneficiary is named, the Participant retains all other contractual rights.
If you are married and your Certificate is issued under an ERISA plan, your ability to name a primary Beneficiary other than your spouse is restricted.
Beneficiary, Inherited, Legacy or “Stretch” IRAs are all terms used to describe an IRA that is used exclusively to distribute death proceeds of an IRA or other qualified investment to the beneficiary over that beneficiary’s life expectancy in order to meet the Required Minimum Distribution (RMD) rules. Upon the contract owner’s death under an IRA or other qualified contract, an “Eligible Designated Beneficiary” may generally establish a Beneficiary IRA by either purchasing a new annuity contract or, in some circumstances, by electing the Beneficiary IRA payout option under the current contract. Until withdrawn, amounts in a Beneficiary IRA continue to be tax-deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the RMD rules, are subject to tax.
If the IRA owner or plan participant died on or before December 31, 2019 (on or before December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement), an individual designated beneficiary, and certain trusts as beneficiary, are treated as Eligible Designated Beneficiaries, and can elect to take distributions over their life expectancy (life expectancy of the oldest trust beneficiary).
However, if the IRA owner or plan participant dies on or after January 1, 2020 (on or after January 1, 2022 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement), only certain designated beneficiaries are treated as Eligible Designated Beneficiaries, and we will only offer the Beneficiary IRA payout option to a designated beneficiary who either (1) is the surviving spouse of the deceased qualified plan participant or IRA owner or, (2) is not more than 10 years younger than the deceased qualified plan participant or IRA owner. In the future, we may allow additional classes of Eligible Designated Beneficiaries to elect the Beneficiary IRA payout option. See “Death Benefit – Death Benefit Payment Options During the Accumulation Phase – Beneficiary IRA.”
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We no longer sell the Panorama Premier variable annuity Certificate. However, we do continue to administer existing Certificates, and you may continue making additional Purchase Payments to your Certificate, subject to the limits described in this section.
The minimum amount we accepted for an initial Purchase Payment was:
| • | $5,000 if you bought the Certificate as a Non-Qualified Contract; or |
| • | $2,000 if you bought the Certificate as a Qualified Contract. |
If, when you applied for your Certificate, you elected to make Purchase Payments under our automatic investment plan option, we allowed you to satisfy the minimum initial payment requirement by making 12 consecutive monthly payments of as little as:
| • | $416.66 for a Non-Qualified Contract, or |
| • | $166.66 for a Qualified Contract. |
You can make additional Purchase Payments by sending payments to one of our purchase payment processing centers:
| • | by check that clearly indicates your name and Certificate number mailed to: |
|
First
Class Mail |
MassMutual
Panorama |
| • | by wire transfer. For instructions on how to make a Purchase Payment by wire transfer, please contact your registered representative. |
You may also send Purchase Payments to our Service Center.
Additional Purchase Payments of less than $250 are subject to our approval.
The maximum total Purchase Payments we will allow without home office approval is based on your Age when we issued the Certificate. The maximum amount is:
| • | $1 million up to Age 75; or |
| • | $500,000 if older than Age 75. |
If the Participant is not a natural person, these Purchase Payment limits will apply to the Annuitant’s Age. If there are Joint Participants, Age refers to the oldest Participant.
Age is as of the nearest birthday. For example, Age 80 is generally the period of time between age 79 years, 6 months and 1 day and age 80 and 6 months. See “Age.”
We have the right to reject any application or Purchase Payment.
Automatic Investment Plan (AIP)
Under the AIP, you may authorize us to periodically draw funds from an account of your choosing (restrictions may apply) for the purpose of making Purchase Payments to your Certificate. Contact our Service Center for information regarding setting up an AIP and any restrictions regarding use of the AIP.
Allocation of Purchase Payments
When you purchased your Certificate, we allocated your Purchase Payment among the investment options according to the allocation instructions you provided. If you make additional Purchase Payments, we will allocate them based on your current allocation instructions, unless you request a different allocation by sending us a Written Request.
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Any allocations to the Sub-Accounts that invest in the Funds that you have selected must be in whole percentages and must total 100%.
If you add more money to your Certificate by making additional Purchase Payments, we will credit these amounts to your Certificate on the Business Day we receive them and all necessary information in Good Order at our Service Center or lockbox. If we receive your Purchase Payment at our Service Center or lockbox on a Non-Business Day or after the Business Day closes, we will credit the amount to your Certificate effective the next Business Day. Our Business Day closes when the New York Stock Exchange (NYSE) closes, usually 4:00 p.m. Eastern Time.
Your Certificate Value is the sum of your value in the Sub-Accounts and the fixed account(s).
The value of your investments in the Separate Account will vary depending on the investment performance of the Funds you choose. In order to keep track of your Certificate Value in the Separate Account, we use a unit of measure called an Accumulation Unit.
During the Income Phase of your Certificate, we call the unit an annuity unit if a variable Annuity Option is elected.
Accumulation Units
During the Accumulation Phase, Accumulation Units shall be used to account for all amounts allocated to or withdrawn from the Sub-Accounts as a result of Purchase Payments, withdrawals, transfers, or fees and charges. The Company will determine the number of Accumulation Units of a Sub-Account purchased or sold. This will be done by dividing the amount allocated to (or the amount withdrawn from) the Sub-Account by the dollar value of one Accumulation Unit of the Sub-Account as of the end of the Business Day during which the transaction is received in Good Order at our Service Center.
The Accumulation Unit value for each Sub-Account was arbitrarily set initially at $10. Subsequent Accumulation Unit values for each Sub-Account are determined for each day in which the New York Stock Exchange is open for business (Business Day) by multiplying the Accumulation Unit value for the immediately preceding Business Day by the net investment factor for the Sub-Account for the current Business Day.
The net investment factor for each Sub-Account is determined by dividing A by B and subtracting C where:
| A is (i) the net asset value per share of the funding vehicle or portfolio of a funding vehicle held by the Sub-Account for the current Business Day; plus (ii) any dividend per share declared on behalf of such funding vehicle or portfolio of a funding vehicle that has an ex-dividend date within the current Business Day; less (iii) the cumulative charge or credit for taxes reserved which is determined by the Company to have resulted from the operation or maintenance of the Sub-Account. |
| B is the net asset value per share of the funding vehicle or portfolio held by the Sub-Account for the immediately preceding Business Day, minus the cumulative charge or credit for taxes reserved which is determined by MassMutual to have resulted from the operation or maintenance of the Sub-Account as of the immediately preceding Business Day. |
| C is the cumulative charge since the immediately preceding Business Day for the insurance charges. |
The Accumulation Unit value may increase or decrease from Business Day to Business Day.
Example:
On
Monday we receive an additional Purchase Payment of $5,000 from you. You have told us you want this to go to the
MML VIP Barings Core
Bond Sub-Account.
When the NYSE closes on that Monday, we determine that the value of an Accumulation Unit for the
MML VIP Barings Core Bond Sub-Account
is $13.90. We then divide $5,000 by $13.90 and credit your Certificate on Monday night
with 359.71 Accumulation Units for the
MML VIP Barings Core Bond Sub-Account.
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Right to Cancel Your Certificate
You have a right to examine your Certificate (sometimes referred to as a free look period). If you change your mind about owning your Certificate, you can cancel it within 10 calendar days after receiving it. When you cancel the Certificate within this time period, we will not assess a CDSC. You will receive back your Certificate Value as of the Business Day we receive your Certificate and your Written Request in Good Order at our Service Center, and your Certificate will be terminated. If you purchase the Certificate as an IRA, we will return the greater of your Purchase Payments less any withdrawals, or the Certificate Value. Please see “Appendix F – State Variations of Certain Certificate Features” for more information about state variations.
Sending Requests in Good Order
From time to time you may want to submit a request for transfer among investment options, a withdrawal, a change of Beneficiary, or some other action. We can only act upon your request if we receive it in “Good Order.” Generally, your request must include the information and/or documentation we need to complete the action without using our own discretion to carry it out. Additionally, some actions may require that you submit your request on our form. We may, in our sole discretion, determine whether any particular transaction request is in Good Order, and we reserve the right to change or waive any Good Order requirements at any time. To help protect against unauthorized or fraudulent telephone instructions, we will use reasonable procedures to confirm that telephone instructions given to us are genuine. We may record all telephone instructions.
In addition to Written Requests, we may allow requests to our Service Center:
| • | by fax at (866) 329-4272, |
| • | by email at ANNfax@MassMutual.com, |
| • | by telephone at (800) 272-2216, or |
| • | by internet at www.MassMutual.com. |
Fax, telephone, email, or internet transactions may not always be available. Fax, telephone, email, and computer systems can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may prevent or delay our receipt of your request. We may make these additional methods available at our discretion. They may be suspended or discontinued at any time without notice. Not all transaction types can be requested by fax, telephone, email, or the internet.
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Transfers and Transfer Programs
Generally, you can transfer all or part of your Certificate Value among investment options. However, there are restrictions that are detailed later in this section. You can make transfers by Written Request, email, telephone, fax, or other authorized means. You must clearly indicate the amount and investment options from and to which you wish to transfer.
We reserve the right, at any time and without prior notice to any party, to terminate, suspend, or modify the transfer provisions of this Certificate.
Your registered representative may provide us with instructions on your behalf involving Fund transfers subject to our rules and requirements, including the restrictions on frequent trading and market timing activities.
Your transfer is effective at the Close of Business on the Business Day we receive your Written Request, in Good Order, at our Service Center. If we receive your transfer request at our Service Center in Good Order on a Non-Business Day or after the Close of Business, your transfer request will be effective on the next Business Day.
Transfers During the Accumulation Phase
References to “The Fixed Account” pertain only to The Fixed Account and not the DCA Fixed Accounts. For DCA Fixed Account transfer rules see “General Information about Massachusetts Mutual Life Insurance Company, the Separate Account and the Investment Options – The Fixed Accounts – DCA Fixed Accounts.”
You may transfer all or part of your Certificate Value allocated to a Sub-Account or The Fixed Account. You can make a transfer to or from any Sub-Account and to or from The Fixed Account. During the Accumulation Phase, we currently do not assess a transfer fee. However, we reserve the right to only allow 12 free transfers per calendar year and charge $20 or 2% of the amount that is transferred, whichever is less, for each additional transfer in excess of 12.
The following rules apply to any transfer during the Accumulation Phase:
| • | Currently, the minimum amount which you can transfer is: |
| ○ | $100; or |
| ○ | the entire value in a Sub-Account, if less. |
| We reserve the right to impose a minimum transfer amount of $1,000. Currently, we do not require that a minimum balance remain in a Sub-Account after a transfer. However, we reserve the right to require that $1,000 remain in the Sub-Account after a transfer unless you transfer your entire Certificate Value in the Sub-Account. We waive these requirements if the transfer is made in connection with the Automatic Rebalancing Program. |
| • | You must clearly indicate the amount and investment options from and to which you wish to transfer. |
| • | During
any Certificate Year, we limit transfers out of The Fixed Account to the greater of $30,000 or 30% of your Certificate Value
in The Fixed Account as of the end of the previous Certificate Year. However, if you transfer 30% of your Certificate Value
in The Fixed Account for three consecutive Certificate Years, your transfer in the fourth consecutive Certificate Year may
be for the entire amount in The Fixed Account, provided that you have not applied payments or transferred Certificate Value
into The Fixed Account from the time the first annual transfer was made. We measure a Certificate Year from the anniversary
of the day we issued your Certificate. Transfers out of The Fixed Account are done on a first-in, first-out basis. In other words, amounts attributed to the oldest Purchase Payments are transferred first; then amounts attributed to the next oldest Purchase Payments are transferred; and so on. |
| • | We consider The Fixed Account and a money market Fund to be “competing accounts.” Transfers between competing accounts are not allowed. For a period of 90 days following a transfer out of a competing account, no transfers may be made into the other competing account. In addition, for a period of 90 days following a transfer into a competing account, no transfers may be made out of the other competing account. |
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Transfers During the Income Phase
During the Income Phase, we allow six transfers each calendar year, and they are not subject to a transfer fee. You cannot transfer from the General Account to a Fund, but you can transfer from one or more Funds to the General Account once a Certificate Year. The minimum amount which you can transfer is $1,000 or your entire interest in the Fund, if less. After a transfer, the minimum amount which must remain in a Fund is $1,000 unless you have transferred the entire value.
For detailed rules and restrictions pertaining to these programs and instructions for electing a program, contact our Service Center.
Overview
We currently offer the following transfer programs: Dollar Cost Averaging Program, Automatic Rebalancing Program, and Interest Sweep Option.
These programs are only available during the Accumulation Phase of your Certificate. You may participate only in one of these programs at any one time.
You may not participate in these programs if you have a current election of a DCA Fixed Account.
Separate Account Dollar Cost Averaging Program
This program allows you to systematically transfer a set amount or percentage from a selected Sub-Account to any of the other Sub-Account(s). By allocating amounts on a regular schedule as opposed to allocating the total amount at one particular time, you may be less susceptible to the impact of market fluctuations. Dollar cost averaging does not assure a profit and does not protect you against loss in declining markets. Since dollar cost averaging involves continuous investment in securities regardless of fluctuating price levels of such securities, you should consider your financial ability to continue the program through periods of fluctuating price levels.
Your Dollar Cost Averaging Program will terminate:
| • | if you withdraw the total Certificate Value; |
| • | upon payment of the death benefit; |
| • | if the last transfer you selected has been made; |
| • | if you apply your Certificate Value to an Annuity Option; |
| • | if there is insufficient Certificate Value in the selected Sub-Account to make the transfer; or |
| • | if we receive from you a Written Request or a request over the telephone at our Service Center to terminate the program prior to the next transfer date. |
Automatic Rebalancing Program
Over time, the performance of each Sub-Account may cause your allocation to shift from your original allocation. You can direct us to automatically rebalance your Certificate Value allocated to the Sub-Accounts in order to return to your original percentage allocations by selecting our Automatic Rebalancing Program. Certificate Value allocated to the fixed accounts cannot participate in the Automatic Rebalancing Program.
This program will terminate:
| • | if you withdraw the total Certificate Value; |
| • | upon payment of the death benefit; |
| • | if you apply your Certificate Value to an Annuity Option; |
| • | if you make any unscheduled transfer; or |
| • | if we receive from you a Written Request or request over the telephone at our Service Center to terminate the program prior to the next transfer date. |
Interest Sweep Option
Under this program, we will automatically transfer earnings from your Certificate Value in The Fixed Account to any one Fund or combination of Funds that you select. By allocating these earnings to the Funds, you can pursue further growth in the value of your
29
Certificate through more aggressive investments. However, the Interest Sweep Option does not assure a profit and does not protect against loss in declining markets.
This program will terminate:
| • | if, as the result of a withdrawal, you no longer have Certificate Value in The Fixed Account; |
| • | if, at time of transfer, no interest is available for transfer (for example, if the interest earned is required to cover Certificate related charges or has been part of a partial withdrawal); |
| • | if you apply your Certificate Value to an Annuity Option; |
| • | upon payment of the death benefit; or |
| • | if we receive from you a Written Request or request over the telephone at our Service Center to terminate the program prior to the next transfer date. |
Limits on Frequent Trading and Market Timing Activity
The Certificate and its investment options are not designed to serve as vehicles for what we have determined to be frequent trading or market timing trading activity. We consider these activities to be abusive trading practices that can disrupt the management of a Fund in the following ways:
| • | by requiring the Fund to keep more of its assets liquid rather than investing them for long-term growth, resulting in lost investment opportunity; and |
| • | by causing unplanned portfolio turnover. |
These disruptions, in turn, can result in increased expenses and can have an adverse effect on Fund performance that could impact all Participants and Beneficiaries under the Certificate, including long-term Participants who do not engage in these activities. Therefore, we discourage frequent trading and market timing trading activity and will not accommodate frequent transfers of Certificate Value among the Funds. Organizations and individuals that intend to trade frequently and/or use market timing investment strategies should not purchase the Certificate.
We have adopted policies and procedures to help us identify those individuals or entities that we determine may be engaging in frequent trading and/or market timing trading activities. We monitor trading activity to uniformly enforce those procedures. However, those who engage in such activities may employ a variety of techniques to avoid detection. Our ability to detect frequent trading or market timing may be limited by operational or technological systems, as well as by our ability to predict strategies employed by Participants (or those acting on their behalf) to avoid detection. Therefore, despite our efforts to prevent frequent trading and the market timing of Funds among the Sub-Accounts, there can be no assurance that we will be able to identify and curtail every instance of trading of those who trade frequently or those who employ a market timing strategy or those who act as intermediaries on behalf of such persons. Moreover, our ability to discourage and restrict frequent trading or market timing may be limited by decisions of state regulatory bodies and court orders that we cannot predict.
In addition, some of the Funds are available with variable products issued by other insurance companies. We do not know the effectiveness of the policies and procedures used by these other insurance companies to detect frequent trading and/or market timing. As a result of these factors, the Funds may reflect lower performance and higher expenses across all Certificates as a result of undetected abusive trading practices.
If we, or any investment adviser to any of the Funds available with the Certificate, determine that a Participant’s transfer patterns reflect frequent trading or employment of a market timing strategy, we will allow the Participant to submit transfer requests by regular mail only. We will not accept other Participant transfer requests if submitted by overnight mail, fax, the telephone, our website, or any other type of electronic medium. Additionally, we may reject any single trade that we determine to be abusive or harmful to the Fund. Orders for the purchase of Fund shares may be subject to acceptance by the Fund. Therefore, we reserve the right to reject, without prior notice, any Fund transfer request if the investment in the Fund is not accepted for any reason.
The Funds may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Funds describe the Funds’ frequent trading and market timing policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. We have entered into a written agreement, as required by SEC regulation, with each Fund or its principal underwriter that obligates us to provide to the Fund promptly upon request certain information about the trading activity of individual Participants, and to execute instructions from the Fund to restrict or prohibit further purchases or transfers by specific Participants who violate the frequent trading or market timing policies established by the Fund.
30
Participants and other persons with interests in the Certificates should be aware that the purchase and redemption orders received by the Funds generally are “omnibus” orders from intermediaries, such as retirement plans or separate accounts funding variable insurance contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual owners of variable contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Funds in their ability to apply their frequent trading or market timing policies and procedures. It may also require that we restrict or prohibit further purchases or transfers as requested by a Fund on all Certificates owned by a Participant whose trading activity under one variable Certificate has violated a Fund’s frequent trading or market timing policy. If a Fund believes that an omnibus order reflects one or more transfer requests from Participants engaged in frequent trading or market timing activity, the Fund may reject the entire omnibus order.
We will notify you in writing if we reject a transfer or if we implement a restriction due to frequent trading or the use of market timing investment strategies. If we do not accept a transfer request, no change will be made to your allocations per that request. We will then allow you to resubmit the rejected transfer by regular mail only.
Additionally, we may in the future take any of the following restrictive actions that are designed to prevent the employment of a frequent trading or market timing strategy:
| • | not accept transfer instructions from a Participant or other person authorized to conduct a transfer; |
| • | limit the number of transfer requests that can be made during a Certificate Year; and |
| • | require the value transferred into a Fund to remain in that Fund for a particular period of time before it can be transferred out of the Fund. |
We will apply any restrictive action we take uniformly to all Participants we believe are employing a frequent trading or market timing strategy. These restrictive actions may not work to deter frequent trading or market timing activity.
We reserve the right to revise our procedures for detecting frequent trading and/or market timing at any time without prior notice if we determine it is necessary to do so in order to better detect frequent trading and/or market timing, to comply with state or federal regulatory requirements, or to impose different restrictions on frequent traders and/or market timers. If we modify our procedures, we will apply the new procedure uniformly to all Participants.
Overview
If you want to receive regular income from your annuity, you can elect to apply your Certificate Value so that you can receive fixed and/or variable Annuity Payments under one of the Annuity Options described in this section. We may base Annuity Payments on the Age and sex of the Annuitant(s) under all options except Annuity Option E. We may require proof of Age and sex before Annuity Payments begin.
If your Certificate Value is less than $2,000 on the Annuity Date, we will pay you a lump sum rather than a series of Annuity Payments. If any Annuity Payment is less than $100, we reserve the right to change the payment basis to equivalent quarterly, semi-annual, or annual payments.
Electing an Annuity Option
On the Annuity Date, we must have written instructions in Good Order at our Service Center regarding your Annuity Option choice, including whether you want fixed and/or variable payments.
If on the Annuity Date we do not have your instructions, we will assume you elected Option B with ten years of payments guaranteed. We will use Certificate Value in the Funds to provide a variable portion of each Annuity Payment and Certificate Value in The Fixed Account and the DCA Fixed Account, if any, to provide a fixed portion of each Annuity Payment. If your Certificate is a Qualified Contract, we may default you to a different Annuity Option in order to comply with requirements applicable to qualified plans.
Annuity Payment Start Date
You can choose the day, month and year in which Annuity Payments begin; however, the day must be between the 1st and 28th day of the month. We call that date the Annuity Date. According to your Certificate, your Annuity Date cannot be earlier than five years after you buy the Certificate. However, we currently allow you to select an Annuity Date that is at least 30 days after you purchase your Certificate.
31
You chose your Annuity Date when you purchased your Certificate. After you purchased your Certificate, you can request an earlier Annuity Date by Written Request. If you elect an Annuity Date earlier than your Latest Permitted Annuity Date, you can request that we delay your Annuity Date by Written Request or by telephone any time before or on the Annuity Date.
Latest Permitted Annuity Date
Annuity Payments must begin by the earlier of:
| • | the 90th birthday of the Annuitant or oldest joint Annuitant; |
| • | your 90th birthday if you are not the Annuitant or the 90th birthday of the oldest Joint Participant; or |
| • | the latest date permitted under state law. |
Upon Written Request we will defer the Annuity Date up to the 100th birthday.
Annuity Payments
On the Annuity Date, you will begin receiving Annuity Payments under the Annuity Option that you elected.
Fixed Annuity Payments
If you choose fixed payments, the payment amount will not vary. The amount of your Annuity Payments will depend upon the following:
| • | the value of your Certificate on the Annuity Date; |
| • | the Annuity Option you elect; |
| • | the Age and sex of the Annuitant or joint Annuitants, if applicable; |
| • | the minimum guaranteed payout rates associated with your Certificate; |
| • | the deduction of a Contingent Deferred Sales Charge (may be deducted under Annuity Options E and F only); and |
| • | the deduction of Premium Taxes, if applicable. |
If the single premium immediate annuity rates offered by MassMutual on the Annuity Date are more favorable than the guaranteed rates listed in your Certificate, those rates will be used.
Variable Annuity Payments
If you choose variable payments, the payment amount will vary with the investment performance of the Funds you elect. The first payment amount will depend on the following:
| • | the value of your Certificate on the Annuity Date; |
| • | the Annuity Option you elect; |
| • | the Age and sex of the Annuitant or joint Annuitants, if applicable; |
| • | the minimum guaranteed payout rates associated with your Certificate; |
| • | an assumed investment rate (AIR) of 4% per year; |
| • | the deduction of a Contingent Deferred Sales Charge (may be deducted under Annuity Options E and F only); and |
| • | the deduction of Premium Taxes, if applicable. |
Future variable payments will depend on the performance of the Funds you elected. If the actual performance on an annualized basis exceeds the 4% assumed investment rate plus the deductions for expenses, your Annuity Payments will increase. Similarly, if the actual rate is less than 4% annualized plus the amount of the deductions, your Annuity Payments will decrease. For additional information, see “Annuity Payments” in the Statement of Additional Information.
Annuity Unit Values
In order to keep track of the value of your variable Annuity Payments, we use a unit of measure called an annuity unit. The value of your annuity units will fluctuate to reflect the investment performance of the Funds you elected. We calculate the number of your annuity units at the beginning of the Income Phase. During the Income Phase, the number of annuity units will not change unless you make a transfer; make a withdrawal as permitted under certain Annuity Options; or you elect an Annuity Option with reduced payments to the survivor and those payments to the survivor commence.
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Annuity Options
The available Annuity Options are listed in this section in the Annuity Options table. We may consent to other plans of payment in addition to those listed. After Annuity Payments begin, you cannot change the Annuity Option, the frequency of Annuity Payments, or make withdrawals, except as described under Annuity Options E and F.
RMDs for Qualified Contracts
In order to avoid adverse tax consequences, you should begin to take distributions from your Certificate no later than the beginning date required by the IRC. These distributions can be withdrawals or Annuity Payments. The distributions should be at least equal to the minimum amount required by the IRC or paid through an Annuity Option that complies with the RMD rules of IRC Section 401(a)(9). If your Certificate is an individual retirement annuity, other than a Roth IRA, the required beginning date is no later than April 1 of the calendar year after you reach the “applicable age” specified in IRC Section 401(a)(9)(C). If you were born after December 31, 1950 and before January 1, 1960, your applicable age is 73. If you were born after December 31, 1959, your applicable age is 75. Previously, the age at which RMDs were required to begin was 70½ for those born before July 1, 1949, and 72 for those born after June 30, 1949 and before January 1, 1951. For qualified plans and tax-sheltered annuities, if you are still working for the sponsor when you reach the specified RMD age, you may defer RMDs until the year in which you retire. The option of deferring to retirement is not available if you are a 5% or greater owner of the employer sponsoring your qualified plan. For Roth IRAs, you are not required to take distributions during your lifetime, but your Beneficiary will be subject to RMDs upon your death.
Limitations on Annuity Options
If you purchased the Certificate as a Qualified Contract, the RMD rules that apply to annuitized Certificates during your lifetime may impose restrictions on which Annuity Option you may elect. In addition, in order to ensure that the Certificate will comply with the RMD requirements that apply upon your death, you may not elect a joint and survivor Annuity Option with a non-spouse joint Annuitant who is more than 10 years younger than you. Furthermore, if your Certificate is issued under an ERISA plan, and you are married when your Certificate enters the Income Phase, your ability to elect certain Annuity Options may be limited and/or require spousal consent.
We may consent to other plans of payment in addition to those listed, including a Joint and Last Survivor Annuity with Period Certain. For Qualified Contracts, if, upon the death of the Participant (Annuitant if the Certificate is owned by a non-natural person), there are Annuity Payments remaining, we may shorten the remaining payment period in order to ensure that payments do not continue beyond the 10 year post-death distribution period provided under IRC Section 401(a)(9), or beyond the Beneficiary’s life or life expectancy for certain classes of Beneficiaries, such as a spouse or an individual who is not more than 10 years younger than the decedent.
|
Lifetime Contingent Options (variable and/or fixed payments) | ||||
|
Annuity Option A Life
Income |
Annuity Option B Life
Income |
Annuity Option C Joint
and Last |
Annuity Option D Joint
and 2/3 | |
|
Number of Annuitants |
One |
One |
Two |
Two |
|
Length of Payment Period |
For as long as the Annuitant lives. |
For a guaranteed period of either 5, 10 or 20 years or as long as the Annuitant lives, whichever is longer. |
For as long as either Annuitant lives. |
For as long as either Annuitant lives. |
|
Annuity Payments After Death |
None. All payments end upon the Annuitant’s death. |
When the Annuitant dies, if there are remaining guaranteed payments, the Beneficiary(ies) may elect to continue receiving remaining guaranteed payments or the Beneficiary(ies) may elect a lump sum payment equal to the commuted value of the remaining guaranteed Annuity Payments.(1) |
100% of the payment will continue during the lifetime of the surviving Annuitant. No payments will continue after the death of both Annuitants. |
Payments will continue during the lifetime of the surviving Annuitant and will be computed on the basis of two-thirds of the Annuity Payment (or units) in effect during the joint lifetime. No payments will continue after the death of both Annuitants. |
| (1) | In the event that remaining Annuity Payments are commuted, we compute the value of the remaining guaranteed Annuity Payments at an interest rate determined by us. |
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|
Non-Lifetime Contingent Options (variable and/or fixed payments) | ||||
|
Annuity Option E
Period Certain Annuity |
Annuity Option F
Special Income Settlement Agreement | |||
|
Number of Annuitants |
One |
Determined in accordance with terms agreed upon in writing by both you and us. | ||
|
Length of Payment Period |
For a specified period no less than five years and no greater than 30 years. |
Determined in accordance with terms agreed upon in writing by both you and us. | ||
|
Withdrawal Option/ Switch Annuity Option |
If, after you begin receiving payments, you would like to receive all or part of the commuted value of the remaining guaranteed payments under this Annuity Option at any time, you may elect to receive it in a lump sum or have it applied to another Annuity Option. If you so elect, your future payments will be adjusted accordingly.(1) |
If we agree to pay you a variable Annuity Payment for a specified period of time under this Annuity Option, and after you begin receiving payments, you would like to receive all or part of the commuted value of the remaining guaranteed payments under this Annuity Option at any time, you may elect to receive it in a lump sum or have it applied to another Annuity Option. If you so elect, your future payments will be adjusted accordingly.(1) | ||
|
Contingent Deferred Sales Charge |
In most states, we will deduct a Contingent Deferred Sales Charge if you apply your Certificate Value to Annuity Options E and F and the period certain is less than 10 years. If it is permitted in your state, but we do not deduct a Contingent Deferred Sales Charge at that time, we will deduct a Contingent Deferred Sales Charge if you subsequently request a commuted lump sum payment to yourself or a commuted value to apply to another Annuity Option.(1) |
|||
|
Annuity Payments After Death |
When
the Annuitant dies, if there are remaining guaranteed
payments, the Beneficiary(ies) may elect to continue
receiving remaining guaranteed payments or the Beneficiary(ies)
may elect a lump sum payment equal to the
commuted value of the remaining guaranteed Annuity Payments.
We will not deduct a Contingent Deferred Sales
Charge.(1) |
|||
| (1) | In the event that remaining Annuity Payments are commuted, we compute the value of the remaining guaranteed Annuity Payments at an interest rate determined by us. |
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Benefits Available Under the Certificate
The following table summarizes information about the benefits available under the Certificate.
|
Benefit |
Purpose |
Benefit is Standard or Optional |
Fee |
Restrictions/Limitations |
|
Basic Death Benefit |
Prior to you or the oldest Joint Participant reaching Age 75, upon your death, we will pay your designated Beneficiaries the greater of (1) the Certificate Value determined as of the Business Day we receive both due proof of death and an election of the payment method in Good Order at our Service Center; or (2) an amount based on your Purchase Payments less withdrawals and any applicable charges; or (3) your Certificate Value on the most recent three year Certificate Anniversary, plus any subsequent Purchase Payments, less any subsequent withdrawals, including any applicable charges. After you or the oldest Joint Participant reaches Age 75, upon your death, we will pay your designated Beneficiaries the greater of (1) the Certificate Value determined as of the Business Day we receive both due proof of death and an election of the payment method in Good Order at our Service Center; or (2) an amount based on your Purchase Payments less withdrawals and any applicable charges; or (3) your Certificate Value on the most recent three year Certificate Anniversary prior to the Participant or the oldest Joint Participant reaching Age 75, plus any subsequent Purchase Payments, less any subsequent withdrawals, including any applicable charges. |
Standard |
None |
•
This benefit terminates upon a full withdrawal or annuitization of the Certificate Value. •
For Certificates issued on or after October 1, 2003 (subject to state approval and implementation), Purchase Payments are “adjusted for” any withdrawals rather than “less any” withdrawals. See “Death Benefit – Adjusted for Any Withdrawals or Less Any Withdrawals” for an explanation of the different meanings of these phrases. •
For Certificates issued on or after October 1, 2003, withdrawals result in a pro-rata adjustment to the death benefit amount, so the death benefit amount may be reduced by more than the actual dollar amount of the withdrawals. |
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|
Benefit |
Purpose |
Benefit is Standard or Optional |
Fee |
Restrictions/Limitations |
|
Ratchet Death Benefit |
Upon your death, we will pay your designated Beneficiaries the greater of (1) the Certificate Value determined as of the Business Day we receive both due proof of death and an election of the payment method in Good Order at our Service Center or (2) the annual ratchet death benefit amount. When the Participant, the oldest Joint Participant, or the Annuitant reaches Age 80, the death benefit is the greater of (1) the Certificate Value determined as of the Business Day we receive both due proof of death and an election of the payment method in Good Order at our Service Center or (2) the annual ratchet death benefit amount calculated on the Certificate Anniversary just prior to Age 80, and adjusted for subsequent Purchase Payments and/or partial withdrawals including any applicable charges. |
Optional |
Maximum Charge: •
0.35% of Certificate Value if Age 60 or less on Issue Date •
0.50% of Certificate Value if Age 61 to 70 on Issue Date •
0.70% of Certificate Value if Age 71 or older on Issue Date Current Charge: •
0.15% of Certificate Value |
•
This benefit is only available for Certificates purchased on or after May 1, 2000. •
This benefit may only be elected when we issue your Certificate. •
You, or the oldest Joint Participant or the Annuitant if the Certificate is purchased by a non-natural entity, must have been Age 80 or younger to elect this benefit. |
|
Automatic Rebalancing Program |
Automatically rebalances the Sub-Accounts you select to maintain your original percentage allocation of Certificate Value. |
Optional |
None |
•
Cannot use if the Dollar Cost Averaging Program, DCA Fixed Account, or Interest Sweep Option are in effect. |
|
DCA Fixed Account |
Automatically transfers specific amount of a Certificate Value from the DCA Fixed Account to the Sub-Accounts you have selected, at set intervals over a period of either six or twelve months. |
Optional |
None |
•
You can only participate in one DCA Fixed Account at a time. •
Must apply a Purchase Payment of at least $5,000 to a DCA term. •
You cannot transfer current Certificate Values into the DCA Fixed Account. |
|
Dollar Cost Averaging Program |
Automatically transfers a specific amount of Certificate Value from a Sub-Account to other Sub-Accounts you have selected, at set intervals. |
Optional |
None |
•
Cannot use if the Automatic Rebalancing Program, DCA Fixed Account, or Interest Sweep Option are in effect. |
|
Systematic Withdrawal Program |
Automatically withdraws a specific amount of Certificate Value proportionally from all Sub-Accounts you have selected. |
Optional |
None |
•
In
order to participate in this program: |
|
Interest Sweep Option |
Automatically transfers earnings from your Certificate Value in The Fixed Account to any one Sub-Account or combination of Sub-Accounts you select. |
Optional |
None |
•
In order to participate in this program there must be at least $5,000 in Certificate Value. •
Cannot use if the Automatic Rebalancing Program, DCA Fixed Account, or Dollar Cost Averaging Program are in effect. |
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|
Benefit |
Purpose |
Benefit is Standard or Optional |
Fee |
Restrictions/Limitations |
|
Annual Credit |
Provides a 0.15% increase to your Certificate Value allocated to the Funds on each Certificate Anniversary. |
Standard |
None |
•
This benefit is only available for Certificates issued on or after September 10, 2001. •
This benefit does not include Certificate Value allocated to the fixed accounts. |
Some of the benefits identified in the Benefits Available Under the Certificate table are described in more detail following the table and other benefits are disclosed in more detail in other sections of the prospectus.
Death of Participant During the Accumulation Phase
If any Participant dies during the Accumulation Phase, we will pay a death benefit to the primary Beneficiary. If any Joint Participant dies, we will treat the surviving Joint Participant as the primary Beneficiary and treat any other Beneficiary designation, on record at the time of death, as a contingent Beneficiary, unless both Joint Participants have submitted a Written Request to our Service Center, in Good Order, requesting otherwise.
The Beneficiary may request that the death benefit be paid under one of the death benefit options. If your Certificate is a Non-Qualified Contract or is held as a traditional IRA (including SEP IRAs) or Roth IRA and the sole primary Beneficiary is your surviving spouse, he or she may elect to become the Participant of the Certificate. See the section below entitled “Death Benefit Payment Options During the Accumulation Phase.”
Death Benefit During the Accumulation Phase
The basic death benefit is the only death benefit available to Participants who purchased their Certificates prior to May 1, 2000. Subject to state availability, if you purchased your Certificate on or after May 1, 2000, the ratchet death benefit was also available. However, if you were Age 80 or over when we issued your Certificate, the ratchet death benefit was not available.
You select one of the available death benefits when we issue your Certificate. After we issue your Certificate, you may not change your death benefit selection.
If you select the ratchet death benefit, you will pay an additional charge. We will automatically pay a death benefit under the basic death benefit unless you have selected the ratchet death benefit.
Adjusted for Any Withdrawals or Less Any Withdrawals
In this prospectus we describe the formulas we use to determine death benefit amounts. In some formulas we use the language “adjusted for any withdrawals” and in other formulas we use the language “less any withdrawals.” These phrases have different meanings.
Adjusted for Any Withdrawals
If you take a withdrawal, we adjust your death benefit by using the percentage of Certificate Value withdrawn to lower the death benefit by the same percentage. We use the phrase “adjusted for any withdrawals” to describe this treatment of withdrawals within our formulas. Because this adjustment uses the percent of Certificate Value withdrawn, the death benefit may be reduced by more than the actual dollar amount of the withdrawal. The reduction will be greater when the value of your Certificate investment options is lower due to market performance or other variables.
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Less Any Withdrawals
If you take a withdrawal, we lower your death benefit by subtracting the dollar amount of the withdrawal. We use the phrase “less any withdrawals” to describe this treatment of withdrawals within our formulas.
References to Age
Age is as of the nearest birthday. For example, Age 80 is generally the period of time between age 79 years, 6 months and 1 day and age 80 and 6 months. See “Age.”
The death benefit paid will be the amount calculated (and adjusted for any applicable charges) as of the Business Day we receive due proof of death and election of the payment method in Good Order at our Service Center. From the time the death benefit is determined until complete distribution is made, any amount in a Sub-Account will be subject to investment risk. As a result, the death benefit amount may increase or decrease over time. The risk is borne by the Beneficiary(ies).
The basic death benefit before you or the oldest Joint Participant reaches Age 75 will be the greater of:
| • | your Certificate Value; or |
| • | your Purchase Payments, less any withdrawals and any applicable charges; or |
| • | your Certificate Value on the most recent three year Certificate Anniversary, plus any subsequent Purchase Payments, less any subsequent withdrawals including any applicable charges. Your first Certificate Anniversary is one calendar year from the date we issued your Certificate. |
For Certificates issued on or after October 1, 2003, subject to state approval and implementation, the word “less” is replaced with the words “adjusted for.” See the section above entitled “Adjusted for Any Withdrawals or Less Any Withdrawals.”
After you or the oldest Joint Participant reaches Age 75, the death benefit during the accumulation period will be the greater of:
| • | your Certificate Value; or |
| • | your Purchase Payments, less any withdrawals and any applicable charges; or |
| • | your Certificate Value on the most recent three year Certificate Anniversary prior to the Participant or the oldest Joint Participant reaching Age 75, plus any subsequent Purchase Payments, less any subsequent withdrawals, including any applicable charges. Your first Certificate Anniversary is one calendar year from the date we issued your Certificate. |
For Certificates issued on or after October 1, 2003, subject to state approval and implementation, the word “less” is replaced with the words “adjusted for.” See the section above entitled “Adjusted for Any Withdrawals or Less Any Withdrawals.”
If the Certificate is owned by a non-natural person, Participant means Annuitant for purposes of determining the death benefit amount.
See “Appendix D – Basic Death Benefit Examples.”
The death benefit paid will be the amount calculated (and adjusted for any applicable charges) as of the Business Day we receive due proof of death and election of the payment method in Good Order at our Service Center. From the time the death benefit is determined until complete distribution is made, any amount in a Sub-Account will be subject to investment risk. As a result, the death benefit amount may increase or decrease over time. The risk is borne by the Beneficiary(ies).
If you choose the ratchet death benefit, the death benefit will be the greater of:
| • | your Certificate Value; or |
| • | the annual ratchet death benefit amount. |
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We calculate the annual ratchet death benefit amount as follows:
When we issue your Certificate, the annual ratchet death benefit is equal to your initial Purchase Payment. Thereafter, and prior to the date you, or the oldest Joint Participant, or the Annuitant if the Certificate is purchased by a non-natural entity, reaches Age 80, we will calculate the ratchet death benefit:
| • | when you make a Purchase Payment; |
| • | when you make a partial withdrawal; and |
| • | on your Certificate Anniversary. |
You will increase your ratchet death benefit if you make a Purchase Payment. If you make a subsequent Purchase Payment, the annual ratchet death benefit is equal to the most recently calculated annual ratchet death benefit plus the additional Purchase Payment.
You will decrease your ratchet death benefit if you make a partial withdrawal. If you make a withdrawal, the annual ratchet death benefit is equal to the most recently calculated annual ratchet death benefit, minus an adjustment for the withdrawal. We calculate the adjustment for the withdrawal as follows:
| (1) | divide the amount withdrawn by the most recent Certificate Value, and |
| (2) | multiply it by the most recent annual ratchet death benefit. |
On your Certificate Anniversary, the annual ratchet death benefit is equal to the greater of your Certificate Value or the most recently calculated annual ratchet death benefit.
If you do not make any additional Purchase Payments or any withdrawals, the annual ratchet death benefit will be the greatest of all Certificate Anniversary Certificate Values on or prior to the date we calculate the death benefit.
When you, or the oldest Joint Participant, or the Annuitant if the Certificate is purchased by a non-natural entity, reaches Age 80, the death benefit is the greater of:
| • | your Certificate Value; or |
| • | the annual ratchet death benefit amount calculated on the Certificate Anniversary just prior to Age 80, and adjusted for subsequent Purchase Payments and/or partial withdrawals in the same manner as described above. |
We will deduct a quarterly charge for the ratchet death benefit from your Certificate Value. This charge is currently 0.15% on an annual basis of the daily value of your Certificate Value allocated to the Funds and the fixed accounts, unless that charge exceeds the maximum charge, in which case the charge is the maximum charge. We will deduct this charge proportionately from the Funds and the fixed accounts you have selected. We may increase this charge at any time while you own the Certificate, but the charge will never exceed the maximum charge. The maximum charge is a percentage on an annual basis of the daily value of your Certificate Value allocated to the Funds. The percentage is based on your Age when the Certificate was issued: 0.35% Age 60 or younger; 0.50% Age 61 through Age 70; or 0.70% Age 71 or older.
See “Appendix E – Ratchet Death Benefit Examples.”
Death Benefit Payment Options During the Accumulation Phase
The availability of certain death benefit options may be limited for Qualified Contracts in order to comply with RMD rules.
For Non-Qualified Contracts, a Beneficiary must elect to receive the death benefit under one of the following options in the event that a death benefit becomes payable during the Accumulation Phase:
| • | Option 1 – Lump sum payment of the death benefit within five years of the date of death. |
| • | Option 2 – Payment of the death benefit under an Annuity Option over the lifetime of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary. Distribution must begin within one year of any Participant’s death. |
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For Qualified Contracts, each Beneficiary must elect the death benefit under one of the following options in the event that a death benefit becomes payable during the Accumulation Phase:
| • | Option 1 – Lump sum payment of the death benefit by the end of the calendar year that contains the tenth anniversary of your death (fifth anniversary of your death if you do not have a designated Beneficiary as defined for purposes of IRC Section 401(a)(9), including where your Beneficiary is your estate or certain trusts). If you die after reaching the age at which RMDs must begin, your beneficiary may not elect to defer payment of the lump sum beyond the end of the calendar year after the year of your death. |
| • | Option 2 – If the Beneficiary is your surviving spouse, or is not more than 10 years younger than you, payment of the death benefit under an Annuity Option over the lifetime of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary. Distribution must generally begin by the end of the calendar year following the year of your death. |
| • | Option 3 – If the Beneficiary is your surviving spouse, or is not more than 10 years younger than you, payment of the death benefit from a deferred annuity contract over the life expectancy of the Beneficiary through a series of non-annuitized withdrawals made at least annually. Distribution must generally begin by the end of the calendar year following the year of your death. Additional deferral may be available for a spouse Beneficiary. Additional withdrawals, including full withdrawals, are available. This option may not be available if there are multiple Beneficiaries. See the sub-section below entitled “Beneficiary IRA” for rules and restrictions. |
Additional Option for a Spouse Who is the Sole Primary Beneficiary
A surviving spouse who is the sole primary Beneficiary under a Certificate that is either non-qualified or is held as a traditional IRA (including SEP IRAs) or Roth IRA may elect option 1, option 2, or may elect to continue the Certificate. Generally, if the Certificate is continued then:
| • | the spouse’s initial Certificate Value will be equal to the death benefit that would have been payable if the lump sum distribution had been elected; |
| • | all applicable Certificate features and benefits will be in the surviving spouse’s name; and |
| • | the surviving spouse will exercise all of the Participant’s rights under the Certificate. |
Exceptions are as follows:
| • | if at the time the Participant purchased the Certificate the surviving spouse was over the maximum Certificate issue Age then the Certificate cannot be continued; |
| • | if at the time the Participant purchased the Certificate the surviving spouse was over the maximum allowable Age for electing a certain feature then the feature is not available for continuance, but the Certificate may be continued. |
If the sole primary Beneficiary is a domestic partner or civil union partner, as defined under applicable state laws, we will treat him or her as a spouse for this provision, and he or she may elect to continue the Certificate as described herein. However, a domestic partner or civil union partner cannot elect to continue the Certificate if it is a traditional IRA or Roth IRA. Since current federal tax law does not define a spouse to include a domestic partner or civil union partner, such domestic partner or civil union partner who elects to continue the Certificate must still meet the distribution requirements of IRC Section 72(s). In order to meet these requirements, the amount of any gain in the Certificate will become subject to income tax at the time the election to continue the Certificate is made.
The right to continue the Certificate by a surviving spouse, a domestic partner, or a civil union partner can only be exercised once while the Certificate is in effect.
See “Taxes – Civil Unions and Domestic Partnerships” if you are in a domestic partnership or civil union.
Lump Sum Payment
If a lump sum payment is requested, we will pay the amount within seven calendar days after we receive due proof of death and election of the payment method in Good Order at our Service Center, unless we are required to suspend or delay payment.
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Beneficiary IRA
Beneficiary, Inherited, Legacy or “Stretch” IRAs are all terms used to describe an IRA that is used exclusively to distribute death proceeds of an IRA or other qualified investment to the beneficiary over that beneficiary’s life expectancy in order to meet the Required Minimum Distribution (RMD) rules. Upon the contract owner’s death under an IRA or other qualified contract, an “Eligible Designated Beneficiary” may generally establish a Beneficiary IRA by either purchasing a new annuity contract or, in some circumstances, by electing the Beneficiary IRA payout option under the current contract. Until withdrawn, amounts in a Beneficiary IRA continue to be tax-deferred. Amounts withdrawn each year, including amounts that are required to be withdrawn under the RMD rules, are subject to tax.
If the contract owner died on or before December 31, 2019 (on or before December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement), an individual designated beneficiary, and certain trusts as beneficiary, are treated as Eligible Designated Beneficiaries, and can elect to take distributions over their life expectancy (life expectancy of the oldest trust beneficiary).
However, if the contract owner dies on or after January 1, 2020 (on or after January 1, 2022 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement), only certain designated beneficiaries are treated as Eligible Designated Beneficiaries, and we will only offer the Beneficiary IRA payout option to a designated beneficiary who either (1) is the surviving spouse of the deceased qualified plan participant or IRA owner or, (2) is not more than 10 years younger than the deceased qualified plan participant or IRA owner. In the future, we may allow additional classes of Eligible Designated Beneficiaries to elect the Beneficiary IRA payout option.
See “Taxes – Required Minimum Distributions for Qualified Contracts” for more information.
Eligibility Requirements/Restrictions:
If a Beneficiary(ies) elects to establish a Beneficiary IRA after the death of the Owner, or if a Contract was issued as a Beneficiary IRA, the following rules apply:
| • | For a contract with a single Beneficiary, the Beneficiary will have the option of electing a Beneficiary IRA payout option under the Contract. Should the Beneficiary decide to elect the Beneficiary IRA payout option under the current Contract, any withdrawals in excess of the RMD will not be subject to a CDSC. |
| • | For a contract with multiple Beneficiaries, a Beneficiary IRA payout option is not available under the Contract. However, a Beneficiary wishing to establish a Beneficiary IRA may elect a direct transfer of the lump sum death benefit to a Beneficiary IRA established for their benefit. |
| • | If a contract was issued as a Beneficiary IRA, any withdrawals under a new Beneficiary IRA Contract in excess of the RMD may be subject to a CDSC as indicated by the terms of the Contract purchased. |
| • | The source of funds to be invested must be from a traditional IRA, SEP IRA, SIMPLE IRA, Beneficiary IRA, TSA, 401(a) or a Qualified Employee Plan (includes Pension Plan, Money Purchase Pension Plan, Profit Sharing Plan, Keogh (HR10), Target Benefit Plan). |
| • | The annuity contract will be titled in the Beneficiary’s name as Beneficiary for the deceased Owner. The Beneficiary must be the Annuitant, and the Annuitant cannot be changed. |
| • | For non-spousal Beneficiary IRAs, RMDs must begin by December 31st of the year following the year of the date of the Owner’s death. For spousal Beneficiary IRAs, RMDs may be deferred until the year for which the original Owner would have been required to begin RMDs. The RMD amount will generally be calculated based on the Beneficiary’s life expectancy and will be withdrawn from each Sub-Account and/or the fixed accounts, if applicable, in the ratio that your value in each bears to your Certificate Value. If the original Owner died after RMDs were required to begin, and was younger than the Beneficiary, the RMD amount may be calculated based on the original Owner’s life expectancy in the year of his or her death. If there is a Beneficiary IRA previously established with another carrier and an RMD is required in the current calendar year, we will process the RMD. If however, an RMD is not required in the current calendar year, an RMD will not be processed until the year it is required. |
| • | The Certificate Value at time the Beneficiary IRA is established will be equal to either the death benefit that would have been payable to the Beneficiary if a lump sum distribution had been elected, or, if a Contract is issued as a Beneficiary IRA, the amount transferred to the Contract. |
| • | Additional contributions cannot be applied to the Beneficiary IRA. |
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| • | If a beneficiary elects the Beneficiary IRA payout option under a Contract, upon the death of the Annuitant of the Beneficiary IRA, any remaining Certificate Value will be paid the the succeeding Beneficiary in a lump sum or over the Annuitant’s remaining life expectancy as determined under the applicable IRS table, but in no case may payments extend beyond the end of the calendar year that contains the tenth anniversary of the Annuitant’s death. |
| • | If a contract was issued as a Beneficiary IRA, upon the death of the Annuitant of the Beneficiary IRA, a death benefit, under the terms of the contract, will be paid to the succeeding Beneficiary in a lump sum or over the Annuitant’s remaining life expectancy as determined by the applicable IRS table, but in no case may payments extend beyond the end of the calendar year that contains the tenth anniversary of the Annuitant’s death. |
| • | If the original owner died before January 1, 2020 (before January 1, 2022 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement) and the Beneficiary is a trust, a Beneficiary IRA may only be established if the trust qualifies as a “see-through” trust. For see-through trusts, Required Minimum Distributions must be calculated based upon the life expectancy of the oldest trust Beneficiary and the oldest trust Beneficiary must be the Annuitant. In order to be a see-through trust, the trust must be valid under state law and be irrevocable, and all Beneficiaries, current and future, must be identifiable from the trust instrument. If any Beneficiary of the trust is not an individual, the trust is not a see-through trust and cannot establish a Beneficiary IRA. If the original owner died after December 31, 2019 (after December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement), we will not offer a Beneficiary IRA to a trust. |
| • | Additional rules may apply. Please consult your registered representative for further information. |
| • | We have the right to modify, suspend or terminate the Beneficiary IRA program at any time without prior notification. |
| • | A Beneficiary IRA may only be established by the Beneficiary of the IRA owner/qualified plan participant whose death triggered the RMD requirements of IRC Section 401(a)(9). A Beneficiary IRA may not be established as a “second generation” Beneficiary IRA by a successor Beneficiary. |
| • | Joint Ownership of a Beneficiary IRA is not allowed. |
Beneficiaries should consult a qualified tax adviser for advice prior to establishing a Beneficiary IRA.
Death of Participant During the Income Phase
If you or the Joint Participant dies during the Income Phase and the Annuitant is still alive, we will pay the remaining payments under the Annuity Option elected at least as rapidly as under the method of distribution in effect at the time of your death. For Qualified Contracts, the Beneficiary(ies) may be required to receive an adjusted payment stream in order to comply with Required Minimum Distribution rules that apply upon the Participant/Annuitant’s death. If the Beneficiary is not an “Eligible Designated Beneficiary” as defined by IRC Section 401(a)(9), Annuity Payments may only continue through the end of the calendar year that contains the tenth anniversary of the Participant/Annuitant’s death, even if a longer Annuity Payment option was elected, including a Joint and Last Survivor Annuity Option where the joint Annuitant is still living.
If you, or any Joint Participant, die during the Income Phase, the primary Beneficiary will become the Participant. If any Joint Participant dies, we will treat the surviving Joint Participant as the primary Beneficiary and treat any other Beneficiary designation, on record at the time of death, as a contingent Beneficiary, unless both Joint Participants have submitted a Written Request to our Service Center, in Good Order, requesting otherwise.
If an Annuitant, who is not the Participant or Joint Participant, dies during the Accumulation Phase, you can name a new Annuitant subject to our approval. If there is no surviving Annuitant and you do not name an Annuitant within 30 calendar days after we receive notification of the death of the Annuitant, the oldest Participant will become the Annuitant. If the Participant is a non-natural person and an Annuitant dies, you may not name a new Annuitant. In this case we will treat the death of the Annuitant as the death of the Participant and pay the death benefit as described in “Death Benefit – Death of Participant During the Accumulation Phase.”
Upon the death of the last surviving Annuitant on or after the Annuity Date, the death benefit, if any, is as specified in the Annuity Option elected. Any remaining payment under the elected Annuity Option will be paid to the Beneficiary at least as rapidly as under the method of distribution in effect at the Annuitant’s death. For Qualified Contracts, the Beneficiary(ies) may be required to receive an adjusted payment stream in order to comply with RMD rules that apply upon the Participant/Annuitant’s death. If the Beneficiary is
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not an “Eligible Designated Beneficiary” as defined by IRC Section 401(a)(9), Annuity Payments may only continue through the end of the calendar year that contains the tenth anniversary of the Participant/Annuitant’s death, even if a longer Annuity Payment option was elected, including a Joint and Last Survivor Annuity Option where the joint Annuitant is still living.
For purposes of determining due proof of death, we require:
| • | a certified death certificate; or |
| • | a certified decree of a court of competent jurisdiction as to the finding of death; or |
| • | any other proof satisfactory to us. |
For Certificates issued on or after September 10, 2001.
Does not pertain to Certificate Value allocated to the fixed accounts.
If we issued you a Certificate on or after September 10, 2001, we will increase your Certificate Value allocated to the Funds by 0.15% on each Certificate Anniversary while your Certificate is in effect. We will calculate this increase based on your Certificate Value allocated to the Funds on your Certificate Anniversary. We will credit this increase proportionally to the Funds you are invested in as of your Certificate Anniversary.
We pay this credit amount out of the revenues we receive for selling the Certificates that are eligible for the credit. We provide this credit amount in lieu of reducing expenses directly. We will not subject this credit to the assessment of a Contingent Deferred Sales Charge upon withdrawal.
Your ability to take a withdrawal may be restricted by certain provisions of the Internal Revenue Code. Furthermore, if your Certificate is issued under a qualified plan, your ability to take a withdrawal may be restricted by your plan documents. Income taxes, tax penalties, CDSC and certain restrictions may apply to any withdrawal you make.
During the Accumulation Phase you may make either partial or full withdrawals of your Certificate Value. When a partial withdrawal is made from a Certificate, we reflect the withdrawal as a reduction to the value of the Certificate’s death benefit. We describe this reduction in the “Death Benefit” section. If we reflect the reduction as a percentage of Certificate Value withdrawn, the benefit may be reduced by more than the actual dollar amount of the withdrawal. The reduction will be greater when the value of your Certificate investment options is lower due to market performance or other variables. If you withdraw your full Certificate Value, the Certificate terminates and does not provide a death benefit.
Unless you instruct us otherwise, we will take any partial withdrawal proportionally from your Certificate Value in the Funds and The Fixed Account. When making a partial withdrawal, you must withdraw at least $100 or the entire value in a Fund or The Fixed Account, if less. We require that after you make a partial withdrawal you keep at least $5,000 in a Non-Qualified Contract. For Qualified Contracts, the amount is $2,000, unless your partial withdrawal is a minimum required distribution. Partial withdrawals may be subject to a Contingent Deferred Sales Charge.
When you make a full withdrawal you will receive your Certificate Value:
| • | less any applicable CDSC; |
| • | less any applicable Premium Tax; |
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| • | less any applicable annual certificate maintenance charge; and |
| • | less any Purchase Payments we credited to your Certificate that have not cleared the bank, until they clear the bank. |
We take withdrawals first from earnings and then from Purchase Payments. For purposes of the Contingent Deferred Sales Charge, we treat withdrawals as coming from the oldest Purchase Payments first.
See “Appendix C – Contingent Deferred Sales Charge (CDSC) Example.”
To request a withdrawal in writing, submit either a partial withdrawal or full withdrawal form in Good Order to our Service Center. If your withdrawal involves an exchange or transfer of assets to another financial institution, we also require a “letter of acceptance” from the financial institution.
You may request certain partial and full withdrawals by other means we authorize such as email, telephone, or fax. Contact our Service Center for details.
For Written Requests, your withdrawal is effective on the Business Day we receive, in Good Order at our Service Center:
| • | a partial withdrawal or full withdrawal form acceptable to us; and |
| • | if applicable, a “letter of acceptance.” |
If we receive this/these item(s) at our Service Center on a Non-Business Day or after the Close of Business, your withdrawal request will be effective on the next Business Day. For email, telephone or fax requests, your withdrawal is effective on the Business Day we receive your request in Good Order, provided it is received prior to the Close of Business. For requests received after the Close of Business, your withdrawal will be effective on the next Business Day.
We will pay any withdrawal amount within seven calendar days of the withdrawal effective date unless we are required to suspend or postpone withdrawal payments. See “Other Information – Payments We Make.”
We will pay any full or partial withdrawal to the qualified plan trustee or plan administrator, if you purchased your Certificate under a tax-qualified retirement plan, a non-qualified deferred compensation plan or a deferred compensation plan for a tax-exempt organization. The only exceptions are for Required Minimum Distribution payments and for withdrawals from individually-owned Qualified Contracts or Certificates owned under a governmental 457(b) deferred compensation plan.
For detailed rules and restrictions pertaining to this program and instructions for electing the program, contact our Service Center.
The Systematic Withdrawal Program (SWP) allows you to set up automatic periodic withdrawals from your Certificate Value. We do not charge you for participation in the SWP. We will take any withdrawal under this program proportionally from your Certificate Value in your selected investment options unless we are instructed otherwise.
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Your SWP will end:
| • | if you withdraw your total Certificate Value; |
| • | if we receive, in Good Order, a notification of the Participant’s death; |
| • | if we receive, in Good Order, a notification of the Annuitant’s death if the Participant is a non-natural person; |
| • | if we process the last withdrawal for the period you selected, if applicable; |
| • | if the next withdrawal will lower your Certificate Value below the minimum Certificate Value we allow following a partial withdrawal, unless your withdrawal is an RMD or is made under a SWP intended to qualify as a series of substantially equal periodic payments for purposes of avoiding the additional 10% tax applicable to distributions that occur prior to age 59½; |
| • | if your value in a selected Fund or The Fixed Account is insufficient to complete the withdrawal; |
| • | if you begin receiving Annuity Payments; or |
| • | if you give us a Written Request or request over the telephone, in Good Order, to terminate the program any time before or on the next withdrawal date. If your Certificate is a Beneficiary IRA, your SWP cannot be terminated. |
This prospectus describes your Certificate, which is a contract between you, the Participant, and MassMutual. In this tax discussion, we use the word “contract” to mean “Certificate” and “Owner” to mean “Participant.”
The information in this prospectus is general and is not an exhaustive discussion of all tax questions that might arise under the contract. The information is not written or intended as tax or legal advice. You should consult a tax adviser about your own circumstances. In addition, we do not profess to know the likelihood that current federal income tax laws and Treasury Regulations or the current interpretations of the Internal Revenue Code, Regulations, and other guidance will continue. We cannot make any guarantee regarding the future tax treatment of any contract. We reserve the right to make changes in the contract to assure that it continues to qualify as an annuity for tax purposes.
No attempt is made in this prospectus to consider any applicable state or other tax laws.
MassMutual is taxed as a life insurance company under the Internal Revenue Code of 1986, as amended (IRC). For federal income tax purposes, the Separate Account is not a separate entity from MassMutual, and its operations form a part of MassMutual.
Investment income and any realized gains on Separate Account assets generally are reflected in the contract value, although treated as accruing to the Company and not to you. As a result, no taxes are due currently on interest, dividends and short or long-term gains earned by the Separate Account with respect to your contract. The Company may be entitled to certain tax benefits related to the investment of Company assets, including assets of the Separate Account. These tax benefits, which may include foreign tax credits and the corporate dividends received deduction, are not passed back to you since the Company is the owner of the assets from which the tax benefits are derived.
Annuity contracts are a means of both setting aside money for future needs – usually retirement – and for providing a mechanism to administer the payout of those funds. Congress recognized how important providing for retirement was and created special rules in the IRC for annuities. Simply stated, these rules provide that you will generally not be taxed on the earnings on the money held in your annuity contract until you take the money out. This is referred to as tax deferral.
IRC Section 817(h) imposes certain diversification standards on the underlying assets of variable annuity contracts. The IRC provides that a variable annuity contract will not be treated as an annuity contract for any period (and any subsequent period) for which the investments are not, in accordance with regulations prescribed by the United States Treasury Department, adequately diversified.
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Disqualification of the Contract as an annuity contract would result in a loss of tax deferral, meaning the imposition of federal income tax to the Owner with respect to earnings under the Contract prior to the receipt of payments under the Contract. We intend that all investment portfolios underlying the Contracts will be managed in such a manner as to comply with these diversification requirements.
For variable annuity contracts, tax deferral also depends on the insurance company, and not you, having control of the assets held in the Separate Accounts. You can transfer among the Sub-Accounts but cannot direct the investments each underlying Fund makes. If you have too much investor control of the assets supporting the Separate Account Funds, then you will be taxed on the gain in the contract as it is earned rather than when it is withdrawn. The IRS has provided some guidance on investor control by issuing Revenue Rulings 2003-91 and 2003-92, but some issues remain unclear. One unanswered question is whether an Owner will be deemed to own the assets in the contract if a variable contract offers too large a choice of Funds in which to invest, and if so, what that number might be. We do not know if the IRS will issue any further guidance on this question. We do not know if any guidance would have a retroactive effect. Consequently, we reserve the right to modify the contract, as necessary, so that you will not be treated as having investor control of the assets held under the Separate Account.
Your contract is referred to as a Non-Qualified Contract if it is not used to fund a qualified plan such as an Individual Retirement Annuity (IRA), Roth IRA, tax-sheltered annuity plan (TSA or TSA plan), corporate pension and profit-sharing plan (including 401(k) plans and H.R. 10 plans), or a governmental 457(b) deferred compensation plan.
Your Certificate is referred to as a Qualified Contract if it is used to fund a qualified plan such as an Individual Retirement Annuity (IRA), Roth IRA, tax-sheltered annuity plan (TSA or TSA plan), corporate pension and profit-sharing plan (including 401(k) plans and H.R. 10 plans), or a governmental 457(b) deferred compensation plan. Qualified plans are subject to various limitations on eligibility, contributions, transferability and distributions based on the type of plan. The tax rules regarding qualified plans are very complex and will have differing applications depending on individual facts and circumstances. You should consult a tax adviser as to the tax treatment and suitability of such an investment.
Taxation of participants in each qualified plan varies with the type of plan and terms and conditions of each specific plan. Owners, annuitants and beneficiaries are cautioned that benefits under a qualified plan may be subject to the terms and conditions of the plan regardless of the terms and conditions of the contracts issued pursuant to the plan. Some retirement plans are subject to distribution and other requirements that are not incorporated into our administrative procedures. Owners, participants and beneficiaries are responsible for determining that contributions, distributions and other transactions with respect to the contracts comply with applicable law.
Contracts issued under a qualified plan include special provisions restricting contract provisions that may otherwise be available as described in this prospectus. Generally, contracts issued under a qualified plan are not transferable. Various penalty and excise taxes may apply to contributions or distributions made in violation of applicable limitations.
Furthermore, certain withdrawal penalties and restrictions may apply to distributions from Qualified Contracts. See “Taxes – Taxation of Qualified Contracts.”
Eligible rollover distributions from an IRA, TSA, qualified plan or governmental 457(b) deferred compensation plan may generally be rolled over into another IRA, TSA, qualified plan or governmental 457(b) deferred compensation plan, if permitted by the plan. These amounts may be transferred directly from one qualified plan or account to another, or as an indirect rollover, in which the plan participant receives a distribution from the qualified plan or account, and reinvests it in the receiving qualified plan or account within 60 days of receiving the distribution.
IRC Section 408(d)(3)(B) provides that an individual is only permitted to make one indirect rollover from an IRA to another IRA in any 1-year period. The IRS previously applied this limitation on an IRA-by-IRA basis, allowing a taxpayer to make an indirect rollover from an IRA, so long as he or she had not made an indirect rollover from that same IRA within the preceding 1-year period,
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even if he or she had made indirect rollovers from a different IRA. Effective for distributions on or after January 1, 2015, the limitation applies on an aggregate basis, meaning that an individual cannot make an indirect rollover from one IRA to another if he or she has made an indirect rollover involving any IRA (including a Roth, SEP, or SIMPLE IRA) within one year. It is important to note that the one rollover per year limitation does not apply to amounts transferred directly between IRAs in a trustee-to-trustee transfer.
On July 6, 1983, the Supreme Court decided in Arizona Governing Committee v. Norris that optional annuity benefits provided under an employer’s deferred compensation plan could not, under Title VII of the Civil Rights Act of 1964, vary between men and women. The contracts we sell in connection with employer-sponsored qualified plans use annuity tables which do not differentiate on the basis of sex. Such annuity tables are also available for use in connection with certain non-qualified deferred compensation plans.
Following are general descriptions of the types of qualified plans with which the contracts may be used. Such descriptions are not exhaustive and are for general informational purposes only. The tax rules regarding qualified plans are very complex and will have differing applications depending on individual facts and circumstances. You should consult a tax adviser as to the tax treatment and suitability of your investment. The contribution limits referenced in the plan descriptions below are the limits for 2026, and may change in subsequent years.
Individual Retirement Annuities
IRC Section 408(b) permits eligible individuals to contribute to an individual retirement program known as an Individual Retirement Annuity (IRA). IRAs are subject to limitations on eligibility, contributions, transferability and distributions. See “Taxes – Taxation of Qualified Contracts.” IRA contributions are limited to the lesser of $7,500 or 100% of compensation, and an additional catch-up contribution of $1,100 is available for individuals age 50 and over. Contributions are deductible, unless you are an active participant in a qualified plan and your modified adjusted gross income exceeds certain limits. Contracts issued for use with IRAs are subject to special requirements by the IRC, including the requirement that certain informational disclosure be given to persons desiring to establish an IRA. You should consult a tax adviser as to the tax treatment and suitability of such an investment.
SEP IRAs
IRC Section 408(k) permits certain employers to establish IRAs for employees that qualify as Simplified Employee Pension (SEP) IRAs. Contributions to the plan for the benefit of employees will not be includible in the gross income of the employees until distributed from the plan. SEP IRAs are treated as defined contribution plans for purposes of the limits on employer contributions. Employer contributions cannot exceed the lesser of:
| • | $72,000; or |
| • | 25% of compensation (a maximum of $360,000 of compensation may be considered). |
The employee may treat the SEP account as a traditional IRA and make deductible and non-deductible contributions if the general IRA requirements are met. SEP IRAs are subject to additional restrictions, including on items such as: the form, manner and timing of distributions; transferability of benefits; vesting and nonforfeitability of interests; nondiscrimination in eligibility and participation; and the tax treatment of distributions and withdrawals. See “Taxes – Taxation of Qualified Contracts.” You should consult a tax adviser as to the tax treatment and suitability of such an investment.
Roth IRAs
IRC Section 408A permits eligible individuals to contribute to a non-deductible IRA, known as a Roth IRA. Roth IRAs are subject to limitations on eligibility, contributions, transferability and distributions. Roth IRA contributions are limited to the lesser of $7,500 or 100% of compensation, and an additional catch-up contribution of $1,100 is available for individuals age 50 or over. The maximums are decreased by any contributions made to a traditional IRA for the same tax year. Lower maximum Roth IRA contribution limits apply to individuals whose modified adjusted gross income exceeds certain limits. Amounts may be rolled over from one Roth IRA to another Roth IRA. Furthermore, an individual may make a rollover contribution from a non-Roth IRA to a Roth IRA, known as a conversion. The individual must pay tax on any portion of the IRA being rolled over that represents income or previously deductible IRA contributions. The determination of taxable income is based on the fair market value of the IRA at the time of the conversion. See “Taxes – Required Minimum Distributions for Qualified Contracts” for information on the determination of the fair market value of an annuity contract that provides additional benefits (such as certain living or death benefits). You should consult a tax adviser as to the tax treatment and suitability of such an investment.
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Corporate Pension and Profit-Sharing Plans
IRC Sections 401(a) and 401(k) permit employers to establish various types of retirement plans for employees. Contributions made to the plan for the benefit of the employees and the earnings on those contributions are generally not included in gross income of the employees until distributed from the plan. The tax consequences to plan participants may vary depending upon the particular plan design. In general, annual contributions made by an employer and employee to a defined contribution plan may not exceed the lesser of:
| • | $72,000; or |
| • | 100% of compensation or earned income (a maximum of $3560,000 of compensation may be considered). |
An employee’s elective salary reduction contributions under a cash or deferred arrangement (i.e. a 401(k) plan) are limited to $24,500, with an additional catch-up contribution of up to $8,000 available for eligible plan participants age 50 or over. For eligible participants age 60–63, this catch-up contribution limit is increased to $11,250. Defined benefit plans are limited to contributions necessary to fund a promised level of benefit. The annual benefit under a defined benefit plan is limited to:
| • | 100% of compensation for a plan participant’s highest three years; or |
| • | $290,000. |
Plans are subject to additional restrictions, including on such items as: the form, manner and timing of distributions; transferability of benefits; vesting and nonforfeitability of interests; nondiscrimination in eligibility and participation; and the tax treatment of distributions and withdrawals. See “Taxes – Taxation of Qualified Contracts.” You should consult a tax adviser as to the tax treatment and suitability of such an investment.
H.R. 10 Plans
IRC Section 401(a) permits self-employed individuals to establish qualified plans for themselves and their employees, commonly referred to as ‘‘H.R.10’’ or ‘‘Keogh’’ plans. Contributions made to the plan for the benefit of the employees and the earnings on those contributions are generally not included in gross income of the employees until distributed from the plan. The tax consequences to plan participants may vary depending upon the particular plan design.
In general, H.R. 10 Plans are subject to the same restrictions as corporate pension and profit-sharing plans (see ‘‘Taxes – Qualified Contracts – Corporate Pension and Profit-Sharing Plans’’), including limitations on eligibility, participation, contributions, time and manner of distributions, transferability and taxation of distributions. See ‘‘Taxes – Taxation of Qualified Contracts.’’ You should consult a tax adviser as to the tax treatment and suitability of such an investment.
Tax-Sheltered Annuities
IRC Section 403(b) permits certain eligible employers to purchase annuity contracts, known as Tax-Sheltered Annuities (TSAs), under a section 403(b) program. Eligible employers are organizations that are exempt from tax under IRC Section 501(c)(3) and public educational organizations. Contributions made to a TSA and the earnings on those contributions are generally not included in gross income of the employee until distributed from the plan. TSAs are subject to limitations on contributions, which may be made as “elective deferrals” (contributions made pursuant to a salary reduction agreement) or as non-elective or matching contributions by an employer. In general, annual contributions made by an employer and employee to a TSA may not exceed the lesser of:
| • | $72,000; or |
| • | 100% of includible compensation (a maximum of $360,000 of includible compensation may be considered). |
An employee’s elective salary reduction contributions are limited to $24,500, with an additional catch up of up to $8,000 available for eligible plan participants age 50 or over. This catch-up contribution may be increased to $11,250 for those ages 60–63. Certain catch-up contributions may also be made by those with 15 or more years of service with the same employer. TSAs are subject to additional restrictions, including on such items as: the form, manner and timing of distributions; transferability of benefits; vesting and nonforfeitability of interests; nondiscrimination in eligibility and participation; and the tax treatment of distributions and withdrawals. See “Taxes – Tax-Sheltered Annuities Taxation and Withdrawal Restrictions.” You should consult a tax adviser as to the tax treatment and suitability of such an investment.
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Governmental 457(b) Deferred Compensation Plans
Employees of (and independent contractors who perform services for) certain state and local governmental units, or certain tax-exempt employers, may participate in an IRC Section 457(b) plan of the employer, allowing them to defer part of their salary or other compensation. Contributions made to an IRC Section 457(b) plan and the earnings on those contributions are generally not included in gross income of the employee until distributed from the plan. IRC Section 457(b) deferrals are limited to the lesser of:
| • | $24,500; or |
| • | 100% of includible compensation. |
In addition, catch-up contributions of up to $8,000 may be made by eligible plan participants age 50 or over. This catch-up contribution may be increased to $11,250 for those ages 60–63. Certain catch-up contributions may also be available for those within three years of normal retirement age under the plan. The contract purchased is issued to the employer or trustee, as applicable. All contract value in a governmental 457(b) deferred compensation plan must be held for the exclusive benefit of the employee, and such plans are subject to limitations on distributions. See “Taxes – Withdrawal Restrictions – Governmental 457(b) Deferred Compensation Contract.” You should consult a tax adviser as to the tax treatment and suitability of such an investment.
This Certificate could not be purchased as part of a governmental 457(b) deferred compensation plan in New York. See “Appendix F – State Variations of Certain Certificate Features.”
Taxation of Non-Qualified Contracts
You, as the owner of a non-qualified annuity, will generally not be taxed on any increases in the value of your contract until a distribution occurs. There are different rules as to how you are taxed depending on whether the distribution is a withdrawal or an Annuity Payment.
Withdrawals
The IRC generally treats any withdrawal (1) allocable to investment in the Contract made after August 13, 1982 in an annuity contract entered into prior to August 14, 1982 and (2) from an annuity contract entered into after August 13, 1982, as first coming from earnings and then from your investment in the Contract. The withdrawn earnings are subject to tax as ordinary income.
Annuity Payments
Annuity Payments occur as the result of the contract reaching its annuity start date. A portion of each Annuity Payment is treated as a partial return of your investment in the contract and is not taxed. The remaining portion of the Annuity Payment is treated as ordinary income. The Annuity Payment is divided between these taxable and non-taxable portions based on the calculation of an exclusion amount.
The exclusion amount for Annuity Payments based on a fixed Annuity Option is determined by multiplying the payment by the ratio that the cost basis of the contract (adjusted for any period certain or refund feature) bears to the expected return under the contract. The exclusion amount for Annuity Payments based on a variable Annuity Option is determined by dividing the cost basis of the contract (adjusted for any period certain or refund guarantee) by the number of years over which the annuity is expected to be paid. Annuity Payments received after you have recovered all of your investment in the contract are fully taxable.
The IRC also provides that any amount received (both Annuity Payments and withdrawals) under an annuity contract which is included in income may be subject to an additional income tax. This additional tax is equal to 10% of the amount that is includible in income. Some withdrawals will be exempt from the additional tax. They include any amounts:
| (1) | paid on or after you reach age 59½; |
| (2) | paid to your Beneficiary after you die; |
| (3) | paid if you become totally disabled (as that term is defined in IRC Section 72(m)(7); |
| (4) | paid in a series of substantially equal periodic payments made annually (or more frequently) for your life or life expectancy or for the joint lives or joint life expectancies of you and your designated Beneficiary. Annuity Payments may qualify for this exception if they satisfy the RMD rules applicable to Annuity Payments from qualified plans and IRAs; |
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| (5) | paid under an immediate annuity; or |
| (6) | which come from investment in the contract made before August 14, 1982. |
With respect to (4) above, if the series of substantially equal periodic payments is modified before the later of your attaining age 59½ or five years from the date of the first periodic payment, then the tax for the year of the modification is increased by an amount equal to the tax which would have been imposed (the 10% additional income tax), but for the exception, plus interest for the tax years in which the exception was used. A withdrawal outside of the series of substantially equal period payments, or an additional Purchase Payment into your contract, may be considered an impermissible modification. However, after 2023, a tax-free rollover or transfer to another qualified plan or IRA, from which a series of substantially equal periodic payments is received, will not result in a modification if the combined distributions from the old and new arrangements continue to satisfy the exception. The rules governing substantially equal periodic payments are complex. You should consult a tax adviser for more specific information.
Multiple Contracts
The IRC provides that multiple non-qualified annuity contracts which are issued within a calendar year to the same owner by one company or its affiliates are treated as one deferred annuity contract for purposes of determining the tax consequences of any distribution. Such treatment may result in adverse tax consequences including more rapid taxation of the distributed amounts from such combination of contracts. This rule does not apply to immediate annuities.
Tax Treatment of Assignments
An assignment or pledge of a contract may be a taxable event. You should consult a tax adviser if you wish to assign or pledge your contract. Annuity contracts issued after April 22, 1987 that are transferred for less than full and adequate consideration (including gifts) are subject to tax to the extent of gain in the contract. This does not apply to transfers between spouses or certain transfers incident to a divorce under IRC Section 1041.
Distributions After Death of an Owner
In order to be treated as an annuity contract for federal income tax purposes, IRC Section 72(s) requires any Non-Qualified Contract to contain certain provisions specifying how your interest in the contract will be distributed in the event of the death of an Owner of the contract. Specifically, IRC Section 72(s) requires that:
| (a) if any Owner dies on or after the annuity start date, but prior to the time the entire interest in the contract has been distributed, the entire interest in the contract will be distributed at least as rapidly as under the method of distribution being used as of the date of such Owner’s death; and |
| (b) if any Owner dies prior to the annuity start date, the entire interest in the contract will be distributed within five years after the date of such Owner’s death. |
These requirements will be considered satisfied as to any portion of an Owner’s interest which is payable to or for the benefit of a designated Beneficiary and which is distributed over the life of such designated Beneficiary or over a period not extending beyond the life expectancy of that Beneficiary, provided that such distributions begin within one year of the Owner’s death. The designated Beneficiary refers to a natural person designated by the Owner as a Beneficiary and to whom ownership of the contract passes by reason of death. However, if the designated Beneficiary is the surviving spouse of the deceased Owner, the contract may be continued with the surviving spouse as the new Owner. The Non-Qualified Contracts contain provisions that are intended to comply with these IRC requirements, although no regulations interpreting these requirements have yet been issued. We intend to review such provisions and modify them if necessary to assure that they comply with the applicable requirements when such requirements are clarified by regulation or otherwise.
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Taxation of Qualified Contracts
If you have no cost basis for your interest in a Qualified Contract, the full amount of any distribution is taxable to you as ordinary income. If you do have a cost basis for all or some of your interest, a portion of the distribution is taxable, generally based on the ratio of your cost basis to your total contract value. Special tax rules may be available for certain distributions from a qualified plan.
IRC Section 72(t) imposes a 10% additional income tax on the taxable portion of any distribution from qualified plans, including contracts issued and qualified under IRC Sections 401 (pension and profit-sharing plans), 403 (TSAs), 408 (IRAs), and 408A (Roth IRAs). Exceptions from the additional tax are as follows:
| (1) | distributions made on or after you reach age 59½; |
| (2) | distributions made after your death; |
| (3) | distributions made that are attributable to the employee being disabled as defined in IRC Section 72(m)(7); |
| (4) | after severance from employment, distributions that are part of a series of substantially equal periodic payments made not less frequently than annually for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated Beneficiary (in applying this exception to distributions from IRAs, a severance of employment is not required). Annuity Payments may qualify for this exception if they satisfy the RMD rules applicable to Annuity Payments from qualified plans and IRAs; |
| (5) | distributions made after severance from employment if you have reached age 55, or after you have reached age 50 or 25 years of service for qualified public safety employees and private sector firefighters (not applicable to distributions from IRAs); |
| (6) | corrective distributions of amounts that exceed tax law limitations; |
| (7) | distributions made to you up to the amount allowable as a deduction to you under IRC Section 213 for amounts you paid during the taxable year for medical care (without regard to whether you itemize deductions for the taxable year); |
| (8) | distributions made on account of an IRS levy made on a qualified retirement plan or IRA; |
| (9) | distributions made to an alternate payee pursuant to a qualified domestic relations order (not applicable to distributions from IRAs); |
| (10) | distributions from an IRA for the purchase of medical insurance (as described in IRC Section 213(d)(1)(D)) for you and your spouse and dependents if you received unemployment compensation for at least 12 weeks (or would have been eligible to receive unemployment compensation but for self-employed status) and have not been re-employed for at least 60 days; |
| (11) | certain qualified reservist distributions; |
| (12) | distributions from an IRA to the extent they do not exceed your qualified higher education expenses (as defined in IRC Section 72(t)(7)) for the taxable year; |
| (13) | distributions from an IRA which are qualified first-time homebuyer distributions (as defined in IRC Section 72(t)(8)); |
| (14) | payments of net income attributable to an excess IRA contribution made in a calendar year where such amounts are distributed by tax return deadline for the year (including extensions) and no deduction is allowed for the excess contribution; |
| (15) | distributions which are qualified birth or adoption distributions (as defined in IRC Section 72(t)(2)(H)). Such distributions can be recontributed within the three year period beginning on the date received; |
| (16) | certain distributions made after December 31, 2023 for emergency personal expenses (as provided in IRC Section 72(t)(2)(I)). Such distributions can be recontributed within the three-year period beginning on the date received; |
| (17) | eligible distributions made after December 31, 2023 to you if you are a victim of domestic abuse (as provided in IRC Section 72(t)(2)(K)). Such distributions may be recontributed within the three-year period beginning on the date received; |
| (18) | distributions made to you if you are a terminally ill individual (as provided in IRC Section 72(t)(2)(L)). Such distributions may be recontributed within the three-year period beginning on the date received; and |
| (19) | distributions that are qualified disaster recovery distributions under IRC Section 72(t)(2)(M). Such distributions may be recontributed within the three-year period beginning on the date received. |
With respect to (4) above, if the series of substantially equal periodic payments is modified before the later of your attaining age 59½ or five years from the date of the first periodic payment, then the tax for the year of the modification is increased by an amount equal to the tax which would have been imposed (the 10% additional tax) but for the exception, plus interest for the tax years in which the exception was used. A withdrawal outside of the series of substantially equal period payments, or an additional Purchase Payment into your contract, may be considered an impermissible modification. However, after 2023, a tax-free rollover or transfer to another
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qualified plan or IRA, from which a series of substantially equal periodic payments is received, will not result in a modification if the combined distributions from the old and new arrangements continue to satisfy the exception. The rules governing substantially equal periodic payments are complex. You should consult a tax adviser or IRS Notice 2022-6 for more specific information.
Tax-Sheltered Annuities Taxation and Withdrawal Restrictions
Under IRS regulations, effective January 1, 2009, all TSA plans must have a written plan document which specifies the requirements that each contract must meet in order to be qualified under the plan. In addition, the document must provide a list of the providers and contracts that are permitted to be purchased by TSA plan participants under the plan. TSA plan participants should be aware that if a TSA plan removes the provider or specific contract type that the TSA plan participant owns from its approved list, the TSA plan participant may be restricted from making further salary reduction contributions into that contract. TSA plans also have the right to restrict the ability to take loans and hardship withdrawals from a TSA contract. Because a plan participant may own more than one TSA contract, before we process a transaction we may require the TSA plan to approve the transaction to ensure that rules regarding loans, hardships and distribution restrictions are met. TSA plan participants should contact their individual TSA plan to determine the specific rules that apply to them.
The IRS regulations also made significant changes to Revenue Ruling 90-24 exchanges or transfers. Under the regulations an exchange may only be done when the TSA plan allows TSA exchanges under its plan and the provider of the new TSA contract agrees to share information with the TSA plan to ensure that the requirements of the TSA plan are met. Given this restriction, before a TSA exchange is processed, the TSA plan is required to approve the transaction or provide a list of vendors for which it has an information sharing agreement (ISA). Additionally, because most of the regulations were not effective until 2009, there was great uncertainty about their application to contract exchanges that took place between September 24, 2007 and January 1, 2009. Because of this uncertainty, it is possible that an exchange that took place prior to January 1, 2009 caused a TSA plan participant to incur taxation on the value of the contract. However, it is also possible that such an exchange did not have adverse tax consequences. If a TSA plan participant exchanged a contract to a TSA contract with a provider that does not have an ISA with the TSA plan, the participant had until July 1, 2009 to avoid adverse tax consequences by exchanging the contract for a TSA contract with which the TSA plan does have an ISA.
The IRC limits the withdrawal of Purchase Payments made by TSA plan participants through salary reductions from certain TSAs. Withdrawals of salary reduction amounts and their earnings can be made when a TSA plan participant:
| • | reaches age 59½; |
| • | has a severance from employment; |
| • | dies; |
| • | becomes disabled, as that term is defined in the IRC; |
| • | experiences a hardship, as provided in IRC Section 403(b)(11)(B); |
| • | meets the requirements for a qualified birth or adoption distribution, as defined in IRC Section 72(t)(2)(H); |
| • | qualifies for a qualified disaster recovery distribution, as defined in IRC Section 72(t)(2)(M); |
| • | qualifies for an eligible distribution to a domestic violence victim, as defined in IRC Section 72(t)(2)(K); |
| • | qualifies for an emergency personal expense distribution, as defined in IRC Section 72(t)(2)(I); or |
| • | the TSA plan terminates (starting January 1, 2009). |
In
the case of hardship, for plan years beginning before 2024, the TSA plan participant could only withdraw the Purchase Payments
and not any earnings.
However, for plan years beginning after 2023, hardship withdrawals can consist of both the Purchase Payments and
any earnings.
TSA contract value as of December 31, 1988 and contract amounts attributable to service with a former employer are not subject to these restrictions. Additionally, return of excess contributions or amounts paid to a spouse as a result of a qualified domestic relations order are not subject to these restrictions.
TSA contracts issued January 1, 2009 and after are subject to distribution restrictions on employer contributions. These restrictions are determined by the TSA plan and can be based on criteria such as completing years of service or attaining a stated age.
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Withdrawal Restrictions – Governmental 457(b) Deferred Compensation Contract
Amounts may not be paid to a participant of a governmental 457(b) deferred compensation plan prior to the plan participant’s:
| • | attainment of age 59½; |
| • | severance from employment; |
| • | incurring an unforeseeable emergency; |
| • | compliance with a qualified domestic relations order (QDRO); |
| • | qualifying for a qualified disaster recovery distribution, as defined in IRC Section 72(t)(2)(M); |
| • | qualifying for an eligible distribution to a domestic violence victim, as defined in IRC Section 72(t)(2)(K); |
| • | qualifying for an emergency personal expense distribution, as defined in IRC Section 72(t)(2)(I); or |
| • | meeting the requirements for a qualified birth or adoption distribution, as defined in IRC Section 72(t)(2)(H). |
In certain circumstances, amounts may also be distributed upon termination of the deferred compensation plan or if the contract contains $5,000 or less, as provided by the plan.
Governmental 457(b) deferred compensation plans are subject to the Required Minimum Distribution rules of IRC Section 401(a)(9). The sections of this prospectus related to Qualified Contracts contain more detailed information regarding these rules.
Required Minimum Distributions for Qualified Contracts
For Qualified Contracts other than Roth IRAs, distributions generally must begin no later than April 1st of the calendar year following the later of:
| (1) | the calendar year in which you attained the “applicable age” as defined in IRC Section 401(a)(9); or |
| (2) | the calendar year in which you retire. |
If you were born after December 31, 1950 and before January 1, 1960, your applicable age is 73. If you were born after December 31, 1959, your applicable age is 75. Previously, the age at which RMDs were required to begin was 70½ for those born before July 1, 1949, and 72 for those born after June 30, 1949 and before January 1, 1951.
The date set forth in (2) does not apply to an IRA or to a five percent owner of the employer maintaining the plan. Required distributions generally must be over a period not exceeding your life or life expectancy or the joint lives or joint life expectancies of you and your designated Beneficiary. Upon your death, additional distribution requirements are imposed. If your contract is held as a Roth IRA, there are no RMDs during your life. However, upon your death your Beneficiary is subject to RMD requirements. If RMDs are not made, a penalty tax of up to 25% is imposed on the amount that should have been distributed.
These rules were significantly changed under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted in late 2019, and differ for Qualified Contracts when death occurs after December 31, 2019 versus those where death occurred on or before December 31, 2019 (on or before December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement).
Where the Owner’s death occurred on or before December 31, 2019 (on or before December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement), if the contract had not yet entered the Income Phase and death occurred after the required beginning date, distributions must be made at least as rapidly as under the method in effect at the time of the Owner’s death, or over the life or life expectancy of the designated Beneficiary. If the contract had not entered the Income Phase and death occurred before the required beginning date, the remaining interest must be distributed within five years or over the life or life expectancy of the designated Beneficiary. If the Owner’s death occurred after the contract had entered the Income Phase, distributions must be made at least as rapidly as under the method in effect at the time of the Owner’s death.
If your death occurs after December 31, 2019 (after December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement) and your designated Beneficiary is not an “Eligible Designated Beneficiary” as defined in IRC Section 401(a)(9), the remaining interest must be distributed within ten years, regardless of whether your death occurs before or after your required beginning date or whether your contract had entered the Income Phase. In addition, if your death occurs on or after your required beginning date, your Beneficiary must take annual RMDs during the ten year distribution period to the extent required
53
by Regulations issued under IRC Section 401(a)(9). If your designated Beneficiary is considered an Eligible Designated Beneficiary, the remaining interest must be distributed within ten years or over the life or life expectancy of the designated Beneficiary. We only offer a life or life expectancy distribution option to a designated beneficiary who either (1) is the surviving spouse of the deceased qualified plan participant or IRA owner or, (2) is not more than ten years younger than the deceased qualified plan participant or IRA owner. In the future, we may allow additional classes of Eligible Designated Beneficiaries to elect a life or life expectancy distribution option.
If your death occurs after December 31, 2019 (after December 31, 2021 for participants of a governmental plan or a plan maintained pursuant to a collective bargaining agreement) and you do not have a designated Beneficiary (including where your estate or certain trusts are the Beneficiary), the pre-2019 distribution rules generally apply. If your contract has not yet entered the Income Phase and death occurs after your required beginning date, distributions must be made at least as rapidly as under the method in effect at the time of your death. If the contract has not yet entered the Income Phase and your death occurs before your required beginning date, the remaining interest must be distributed within five years. If your death occurs after your contract has entered the Income Phase, distributions must be made at least as rapidly as under the method in effect at the time of your death.
For purposes of these rules, the Owner of a Roth IRA is always treated as having died before their required beginning date, since RMDs are not required during the owner’s lifetime.
The Regulations under IRC Section 401(a)(9) include a provision that could increase the dollar amount of RMDs for individuals who fund their IRA or qualified retirement plan with an annuity contract. During the Accumulation Phase of the annuity contract, Treasury Regulations Section 1.401(a)(9)-6, Q&A-12 requires that individuals add the actuarial present value of any additional benefits provided under the annuity (such as certain living or death benefits) to the dollar amount credited to the owner or beneficiary under the contract in order to determine the fair market value of the contract. A larger fair market value will result in the calculation of a higher RMD amount. You should consult a tax adviser to determine how this may impact your specific circumstances.
Taxation of Death Benefit Proceeds
Amounts may be distributed from a Contract because of your death or the death of the Annuitant. Generally, such amounts are includible in the income of the recipient as follows:
| • | if distributed in a lump sum, they will be treated in the same manner as a withdrawal from the Contract; or |
| • | if distributed under a payout option, they will be treated as Annuity Payments. |
Section 1035 Tax Free Exchanges
IRC Section 1035 provides that a life insurance, endowment, or annuity contract may be exchanged for an annuity contract on a tax free basis. When this type of exchange occurs, the gain in the original contract is preserved in the new contract by transferring the cost basis under the original contract to the new contract. The IRS has provided guidance on the partial exchange of an annuity contract for another annuity contract. According to the guidance, partial exchanges occurring on or after October 24, 2011 will be tax free if no distribution takes place from either contract within 180 days after the exchange. If a distribution occurs within 180 days after the exchange, the IRS will apply general tax principles to determine the tax treatment of the transfer. The limitation on distributions within 180 days does not apply to Annuity Payments that are based on life expectancy or on a period certain of ten or more years. You should consult a tax adviser before entering into any 1035 exchange.
Partial exchanges which occurred prior to October 24, 2011 were subject to more restrictive guidance. You should consult a tax adviser if you have questions regarding the taxation of a prior exchange.
Beginning January 1, 2010, the Pension Protection Act of 2006 permits the exchange of an annuity contract for a qualified long-term care contract to qualify as a tax free 1035 exchange. However, if an annuity contract has entered the Income Phase, there is uncertainty and a lack of guidance regarding whether the exchange can qualify. Therefore, if an annuity contract has entered the Income Phase and the contract or the resulting Annuity Payments are exchanged for a qualified long-term care contract, we will not treat that as a tax free 1035 exchange.
The IRS has also issued guidance allowing a Beneficiary of a non-qualified annuity contract to enter into a 1035 exchange of the death benefit for a new annuity contract, provided that the new contract will be administered as if the owner is deceased for purposes of the
54
death benefit requirements of IRC Section 72(s). In order to allow the death benefit under a non-qualified annuity contract to be exchanged, we may require additional documentation from the issuer of the new contract, in order to ensure that this requirement is met.
Income Tax Reporting and Withholding
Federal law requires that we file an information return on Form 1099-R with the IRS (with a copy to you) reporting any taxable amounts paid to you under the annuity contract. By January 31st of the calendar year following the year of any payment(s), we will issue the Form 1099-R to the owner of the annuity contract. Following the death of the owner the Form 1099-R will be sent to each beneficiary who receives a payment under the contract.
The portion of any distribution that is includible in the gross income of the owner is subject to federal income tax withholding. The amount of the withholding depends on the type of distribution. Withholding for periodic payments is at the same rate as wages and at the rate of 10% from non-periodic payments. However, the owner, in most cases, may elect not to have taxes withheld or to have withholding done at a different rate. Distributions from certain retirement plans, excluding IRAs, that are not directly rolled over to another eligible retirement plan or IRA, are subject to a mandatory 20% withholding.
The 20% withholding requirement generally does not apply to:
| • | a series of substantially equal payments made at least annually for: |
| ○ | the life or life expectancy of the owner, or joint and last survivor expectancy of the owner and a designated beneficiary, or |
| ○ | for a specified period of ten years or more; |
| • | distributions which are RMDs; |
| • | hardship distributions from a 401(k) plan or a tax-sheltered annuity; |
| • | distributions that are qualified birth or adoption distributions as defined in IRC Section 72(t)(2)(H); |
| • | distributions that are qualified disaster recovery distributions as defined in IRC Section 72(t)(2)(M); |
| • | distributions that are emergency personal expense distributions as defined in IRC Section 72(t)(2)(I); or |
| • | distributions that are eligible distributions to a victim of domestic violence as defined in IRC Section 72(t)(2)(K). |
You should consult a tax adviser regarding withholding requirements.
Generation Skipping Transfer Tax Withholding
Under certain circumstances, the IRC may impose a generation skipping transfer tax when all or part of an annuity contract is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the IRC may require us to deduct the tax from your Certificate, or from any applicable payment, and pay it directly to the IRS.
Medicare Hospital Insurance Tax
A Medicare Hospital Insurance Tax (known as the Unearned Income Medicare Contribution) applies to all or part of a taxpayer’s net investment income, at a rate of 3.8%, when certain income thresholds are met. Net investment income is defined to include, among other things, non-qualified annuities and net gain attributable to the disposition of property. Under final tax regulations, the taxable portion of any distribution from a non-qualified annuity contract – including withdrawals and Annuity Payments – is included in net investment income. Net investment income also includes the gain from the sale of a non-qualified annuity contract. Under current guidance, we are required to report to the IRS whether a distribution is potentially subject to the tax. You should consult a tax adviser as to the potential impact of the Medicare Hospital Insurance Tax on your Certificate.
Non-Resident Aliens and Foreign Entities
Generally, a distribution from a contract to a non-resident alien or foreign entity is subject to federal tax withholding at a rate of 30% of the amount of income that is distributed. A non-resident alien is a person who is neither a citizen, nor a resident, of the United States
55
of America (U.S.). We are required to withhold the tax and send it to the IRS. Some distributions to non-resident aliens or foreign entities may be subject to a lower (or no) tax if a treaty applies. In order to obtain the benefits of such a treaty, the non-resident alien must claim the treaty benefit on Form W-8BEN (or the equivalent form), providing us with:
| • | proof of residency (in accordance with IRS requirements); and |
| • | the applicable taxpayer identification number. |
If the above conditions are not met, we will withhold 30% of the income from the distribution. Additionally, under the Foreign Account Tax Compliance Act effective July 1, 2014, U.S. withholding may occur with respect to certain foreign entity owners (including foreign financial institutions and non-financial foreign entities (such as corporations, partnerships, and trusts)) at a 30% rate without regard to lower treaty rates.
Civil Unions and Domestic Partnerships
Parties to a civil union or domestic partnership are not treated as spouses under federal law. Consequently, certain transactions, such as a change of ownership or continuation of the Certificate after death, may be taxable to those individuals. You should consult a tax adviser for more information on this subject.
When a Non-Qualified Contract is owned by a non-natural person (e.g., a corporation, limited liability company, partnership, trust or certain other entities) the contract will generally not be treated as an annuity for tax purposes. This means that gain in the contract will be taxed each year while the contract is in the Accumulation Phase. This treatment is not generally applied to a contract held by a trust or other entity as an agent for a natural person. If a trust is not a grantor trust for income tax purposes, and any beneficiary (including a contingent beneficiary) of a trust is a non-natural person, the contract will not be treated as owned by an agent for a natural person, and gain in the contract will be taxed annually.
This treatment also does not apply to a contract that qualifies as an immediate annuity. Before purchasing a contract to be owned by a non-natural person or changing ownership on an existing contract that will result in it being owned by a non-natural person, you should consult a tax adviser to determine the tax impact.
The Certificates are no longer for sale to the public. The Certificate was sold by both registered representatives of MML Investors Services, LLC (MMLIS), a subsidiary of MassMutual, and by registered representatives of other broker-dealers who have entered into distribution agreements with MML Strategic Distributors, LLC (MSD), a subsidiary of MassMutual. Pursuant to separate underwriting agreements with MassMutual, on its own behalf and on behalf of the Separate Account, MMLIS serves as principal underwriter of the contracts sold by its registered representatives, and MSD serves as principal underwriter of the contracts sold by registered representatives of other broker-dealers who have entered into distribution agreements with MSD.
MMLIS and MSD are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority (FINRA). MMLIS and MSD also receive compensation for their actions as principal underwriters of the Certificates.
Commissions and Allowances Paid
Commissions for sales of the Certificate by MMLIS registered representatives are paid on behalf of MMLIS by MassMutual to MMLIS registered representatives. Commissions for sales of the Certificate by registered representatives of other broker-dealers are paid on behalf of MSD by MassMutual to those broker-dealers. We also pay expense allowances in connection with the sales of the Certificates. The maximum commission payable for the Certificate is 8.63% of Purchase Payments made to a Certificate and/or up to 2.4% of Certificate Value annually.
56
Additional Compensation Paid to MMLIS
Most MMLIS registered representatives are also MassMutual insurance agents, and as such, are eligible for certain cash and non-cash benefits from MassMutual. Cash compensation includes bonuses and allowances based on factors such as sales, productivity and persistency. Non-cash compensation includes various recognition items such as prizes and awards as well as attendance at, and payment of the costs associated with attendance at, conferences, seminars and recognition trips, and also includes contributions to certain individual plans such as pension and medical plans. Sales of the Certificate may help these registered representatives and their supervisors qualify for such benefits. MMLIS registered representatives who are also general agents or sales managers of MassMutual also may receive overrides, allowances and other compensation that is based on sales of the Certificate by their registered representatives.
Additional Compensation Paid to Certain Broker-Dealers
We and MSD make additional commission payments to certain broker-dealers in the form of asset-based payments and sales-based payments. We also make cash payments and non-cash payments to certain broker-dealers. The asset-based and sales-based payments are made to participate in those broker-dealers’ preferred provider programs or marketing support programs, or to otherwise promote the Certificate. Asset-based payments are based on the value of the assets in the MassMutual Certificates sold by that broker-dealer. Sales-based payments are paid on each sale of the Certificate and each subsequent Purchase Payment applied to the Certificate. Cash payments are made to attend sales conferences and educational seminars sponsored by certain broker-dealers. Non-cash payments include various promotional items. For a list of the broker-dealers to whom we currently pay additional compensation for selling the Certificate, visit www.MassMutual.com/legal/compensation-arrangements or call our Service Center.
The additional compensation arrangements described in the preceding paragraphs are not offered to all broker-dealers and the terms of such arrangements may differ among broker-dealers. Some broker-dealers may receive two or more of these payments. Such payments may give us greater access to the registered representatives of the broker-dealers that receive such compensation or may influence the way that a broker-dealer markets the Certificate. Any such compensation will be paid by MSD or us and will not result in any additional direct charge to you.
The compensation arrangements described above may provide a registered representative with an incentive to sell the Certificate over other available variable annuity certificates whose issuers do not provide such compensation or who provide lower levels of such compensation. Your registered representative typically receives a portion of the compensation that is payable to his or her broker-dealer, depending on the agreement between the representative and their firm. MassMutual is not involved in determining compensation paid to a registered representative of an unaffiliated broker-dealer. You may contact your broker-dealer or registered representative to find out more information about the compensation they may receive in connection with your purchase of a Certificate. You may want to take these compensation arrangements into account when evaluating any recommendation regarding the Certificate.
We intend to recoup a portion of the cash and non-cash compensation payments that we make through the assessment of certain charges described in this prospectus. We may also use some of the 12b-1 distribution fee payments and other payments that we receive from certain Funds to help us make these cash and non-cash payments.
You may want to contact MMLIS or your registered representative to find out more about the compensation they receive in connection with your purchase of a Certificate.
Commissions or overrides may also be paid to broker-dealers providing wholesaling services (such as providing sales support and training for sales representatives who sell the Certificates).
57
You can assign the Certificate at any time during your lifetime. We will not be bound by the assignment until we receive written notice of the assignment in Good Order. We will not be liable for any payment or other action we take in accordance with the Certificate before we receive notice of the assignment. We are not responsible for the validity of an assignment. You may be subject to tax consequences if you assign your Certificate.
If the Certificate is issued pursuant to a qualified plan, there may be limitations on your ability to assign the Certificate. If you assign your Certificate, your rights may only be exercised with the consent of the assignee of record.
Every state has some form of unclaimed property law that imposes varying legal and practical obligations on insurers and, indirectly, on Owners, Beneficiaries, and any other payees of proceeds from a contract. Unclaimed property laws generally provide for the transfer of benefits or payments under various circumstances to the abandoned property division or unclaimed property office in the state of last residence. This process is known as escheatment. To help avoid escheatment, keep your own information, as well as Beneficiary and any other payee information up-to-date, including: full names, postal and electronic media addresses, telephone numbers, dates of birth, and social security numbers. To update this information, contact our Service Center. IRS guidance requires us to withhold federal income tax from escheated payments from certain qualified contracts, and to report such payments to the IRS on Form 1099-R.
Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to reject a Purchase Payment or block an Owner’s ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, or death benefits, until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Certificate to government regulators.
We may be required to suspend or postpone payments, withdrawals, or transfers from the Sub-Accounts for any period when:
| • | the NYSE is closed (other than customary weekend and holiday closings); |
| • | trading on the NYSE is restricted; |
| • | an emergency exists as a result of which disposal of shares of the Funds is not reasonably practicable or we cannot reasonably value the shares of the Funds; or |
| • | during any other period when the SEC, by order, so permits for your protection. |
We reserve the right to defer payment for a withdrawal from The Fixed Account for the period permitted by law, but not for more than six months.
In addition, if, pursuant to the SEC’s rules, a money market fund suspends payment of redemption proceeds in connection with a liquidation of that Fund, we will delay payment of any transfer, withdrawal or death benefit from the applicable money market Sub-Account until the Fund is liquidated.
Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to reject a Purchase Payment or block an owner’s ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, or death benefits, until instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your Certificate to government regulators.
58
We reserve the right to amend the Certificate to meet the requirements of applicable federal or state laws or regulations, or as otherwise provided in the Certificate. We will notify you by written notice of such amendments.
For certain group or sponsored arrangements there may be expense savings that can be passed on to the customer because our cost for sales, administration, and mortality generally vary with the size of the customer. We will consider factors such as the size of the group, the nature of the sale, the expected Purchase Payment volume, and other factors we consider significant in determining whether to reduce charges. Subject to applicable state laws and regulations, we reserve the right to reduce or waive the mortality and expense risk charge, the administrative charge, the annual certificate maintenance charge or any other charge that is appropriate to reflect any expense savings. We will make any reductions according to our rules in effect when an application for a Certificate is approved. We may change these rules from time to time. Any reduction in charges will reflect differences in costs or services, and will not be unfairly discriminatory.
We reserve the right to modify or terminate such arrangements.
Termination of the Certificate
We will terminate your Certificate upon the occurrence of any of the following events:
| • | the date of the last Annuity Payment; |
| • | the date withdrawal is made of the entire Certificate Value; |
| • | the date of the last payment upon death to the last Beneficiary; or |
| • | the date your Certificate is returned under the right to examine Certificate provision. |
Computer System, Cybersecurity, and Service Disruption Risks
The Company and its business partners rely on computer systems to conduct business, including customer service, marketing and sales activities, customer relationship management and producing financial statements. While the Company and its business partners have policies, procedures, automation and backup plans designed to prevent or limit the effect of failures, our respective computer systems may be vulnerable to disruptions or breaches as the result of natural disasters, man-made disasters, criminal activity, pandemics, or other events beyond our control. The failure of our or our business partners’ computer systems for any reason could disrupt operations, result in the loss of customer business and adversely impact profitability.
The Company and its business partners retain confidential information on our respective computer systems, including customer information and proprietary business information. Any compromise of the security of our or our business partners’ computer systems that results in the disclosure of personally identifiable customer information could damage our reputation, expose us to litigation, increase regulatory scrutiny and require us to incur significant technical, legal, and other expenses. The risk of cyber-attacks may be higher during periods of geopolitical turmoil (such as the Russian invasion of Ukraine and the responses by the United States and other governments).
Geopolitical and other events, including natural disasters, war, terrorism, economic uncertainty, trade disputes, public health crises and related geopolitical events, and widespread disease, including pandemics (such as COVID-19) and epidemics, have led, and in the future may lead, to increased market volatility, which may disrupt U.S. and world economies and markets and may have significant adverse direct or indirect effects on the Company. These events may adversely affect computer and other systems on which the Company relies, interfere with the processing of Certificate-related transactions (including the processing of orders from Participants and orders with the funds) and the Company’s ability to administer this Certificate in a timely manner, or have other possible negative effects. These events may also impact the issuers of securities in which the funds invest, which may cause the funds underlying the Certificate to lose value. There can be no assurance that we, the funds or our service providers will avoid losses affecting the Certificate due to these geopolitical and other events. If we are unable to receive U.S. mail or fax transmissions due to a closure of U.S. mail delivery by the government or due to the need to protect the health of our employees, you may still be able to submit
59
transaction requests to the Company electronically or over the telephone. Our inability to receive U.S. mail or fax transmissions may cause delays in the pricing and processing of transaction requests submitted to us by U.S. mail or by fax during that time period.
The Company is subject to legal and regulatory actions, including class action lawsuits, in the ordinary course of its business. Our pending legal and regulatory actions include proceedings specific to us, as well as proceedings generally applicable to business practices in the industry in which we operate. From time to time, we also are subject to governmental and administrative proceedings and regulatory inquiries, examinations, and investigations in the ordinary course of our business. In addition, we, along with other industry participants, may occasionally be subject to investigations, examinations, and inquiries (in some cases industry-wide) concerning issues upon which regulators have decided to focus. Some of these proceedings involve requests for substantial and/or unspecified amounts, including compensatory or punitive damages.
While it is not possible to predict with certainty the ultimate outcome of any pending litigation proceedings or regulatory action, management believes, based on information currently known to it, that the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect upon the Separate Account, the ability of the principal underwriter(s) to perform in accordance with its contracts with the Company on behalf of the Separate Account, or the ability of the Company to meet its obligations under the contract.
For more information regarding the Company’s litigation and other legal proceedings, please see the notes to the Company’s financial statements contained within the SAI.
The financial statements for the Separate Account and the Company are included in the SAI. Our financial statements should be distinguished from the financial statements of the Separate Account, and you should consider our financial statements as bearing only upon our ability to meet our obligations under the Certificates. Contact us at our Service Center for a free copy of these financial statements and the SAI.
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Investment Options Available Under the Certificate
Funds Available Under the Certificate
The following is a list of Funds currently available under the Certificate. The list of Funds is subject to change, as discussed in the prospectus for the Certificate. Before you invest, you should review the prospectuses for the Funds. These prospectuses contain more information about the Funds and their risks and may be amended from time to time You can find prospectuses and other information about the Funds online at www.MassMutual.com/PanoramaPremier. You can also request this information at no cost by calling (800) 272-2216 or sending an email request to ANNfax@MassMutual.com.
The current expenses and performance information below reflects fees and expenses of the Funds, but does not reflect the other fees and expenses that your Certificate may charge. Expenses would be higher and performance would be lower if these charges were included. Each Fund’s past performance is not necessarily an indication of future performance.
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average
Annual Total Returns | ||
|
1 Year |
5 Year |
10 Year | |||
|
Asset Allocation |
MML
VIP Aggressive Allocation Fund (Initial Class)(1)(2) |
0.98
%
|
14.17
%
|
8.36
%
|
9.53
%
|
|
Asset Allocation |
MML
VIP Balanced Allocation Fund (Initial Class)(1)(3) |
0.86
%
|
11.10
%
|
4.76
%
|
6.33
%
|
|
Asset Allocation |
MML
VIP Conservative Allocation Fund (Initial Class)(1)(4) |
0.83
%
|
10.29
%
|
3.98
%
|
5.59
%
|
|
Asset Allocation |
MML
VIP Growth Allocation Fund (Initial Class)(1)(5) |
0.90
%
|
12.99
%
|
7.08
%
|
8.38
%
|
|
Asset Allocation |
MML
VIP Moderate Allocation Fund (Initial Class)(1)(6) |
0.87
%
|
11.83
%
|
5.72
%
|
7.08
%
|
|
Money Market |
Invesco
V.I. U.S. Government Money Portfolio (Series I)(7)(8) |
0.67
%
|
3.65
%
|
2.80
%
|
1.76
%
|
|
Money Market |
MML
VIP Barings U.S. Government Money Market Fund |
0.52
%
|
3.80
%
|
2.87
%
|
1.80
%
|
|
Fixed Income |
Invesco
V.I. Core Plus Bond Fund (Series I)(10) |
0.62
%
(*) |
7.09
%
|
–0.11
%
|
2.99
%
|
|
Fixed Income |
Invesco
V.I. Global Strategic Income Fund (Series I) |
0.95
%
(*) |
12.98
%
|
1.65
%
|
3.01
%
|
|
Fixed Income |
MML
VIP Barings Core Bond Fund (Service Class)(11) |
0.70
%
|
7.59
%
|
0.23
%
|
2.38
%
|
61
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average
Annual Total Returns | ||
|
1 Year |
5 Year |
10 Year | |||
|
Fixed Income |
MML
VIP Barings Inflation-Protected and Income Fund |
0.65
%
|
5.89
%
|
1.12
%
|
3.15
%
|
|
Fixed Income |
MML
VIP Barings Short-Duration Bond Fund (Service Class I)(13) |
0.84
%
|
5.76
%
|
2.30
%
|
2.31
%
|
|
Fixed Income |
MML
VIP Fidelity Institutional AM®
Core Plus Bond Fund |
0.86
%
|
7.03
%
|
–1.10
%
|
1.58
%
|
|
Balanced |
Invesco
V.I. Equity and Income Fund (Series I)(15) |
0.57
%
|
12.81
%
|
8.94
%
|
8.92
%
|
|
Balanced |
MML
VIP BlackRock®
Balanced Fund (Initial Class)(1)(16) |
0.51
%
|
12.84
%
|
7.86
%
|
9.21
%
|
|
Large Cap Value |
MML
Income & Growth Fund (Initial Class) |
0.72
%
|
13.34
%
|
12.35
%
|
10.73
%
|
|
Large Cap Value |
MML
VIP Franklin Templeton Equity Fund (Initial Class)(17) |
0.44
%
|
17.49
%
|
13.75
%
|
11.23
%
|
|
Large Cap Value |
MML
VIP T. Rowe Price Equity Income Fund (Initial Class)(18) |
0.79
%
|
14.45
%
|
11.14
%
|
10.52
%
|
|
Large Cap Blend |
Fidelity®
VIP Contrafund®
Portfolio (Initial Class) |
0.54
%
|
21.48
%
|
15.36
%
|
15.77
%
|
|
Large Cap Blend |
Invesco
V.I. Diversified Dividend Fund (Series I) |
0.68
%
|
15.74
%
|
10.80
%
|
9.20
%
|
|
Large Cap Blend |
MML
Focused Equity Fund (Service Class I) |
1.15
%
|
7.75
%
|
8.48
%
|
12.23
%
|
|
Large Cap Blend |
MML
Sustainable Equity Fund (Initial Class) |
0.56
%
|
11.50
%
|
11.93
%
|
12.98
%
|
|
Large Cap Blend |
MML
VIP BlackRock®
Equity Index Fund (Class I)(19) |
0.44
%
|
17.36
%
|
13.92
%
|
14.33
%
|
|
Large Cap Blend |
MML
VIP Invesco Main Street Equity Fund (Class II)(20) |
0.80
%
|
16.15
%
|
12.47
%
|
14.45
%
|
62
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average
Annual Total Returns | ||
|
1 Year |
5 Year |
10 Year | |||
|
Large Cap Blend |
MML
VIP JPMorgan U.S. Research Enhanced Equity Fund |
0.77
%
|
10.59
%
|
7.06
%
|
6.11
%
|
|
Large Cap Growth |
MML
VIP Invesco Discovery Large Cap Fund (Class II)(22) |
0.78
%
|
— |
— |
— |
|
Large Cap Growth |
MML
VIP Loomis, Sayles Large Cap Growth Fund (Initial Class)(23) |
0.70
%
|
15.09
%
|
14.97
%
|
16.34
%
|
|
Large Cap Growth |
MML
VIP T. Rowe Price Blue Chip Growth Fund (Initial Class)(24) |
0.78
%
|
18.41
%
|
11.08
%
|
15.25
%
|
|
Small/Mid-Cap Value |
MML
Small/Mid Cap Value Fund (Initial Class) |
0.82
%
|
2.40
%
|
8.68
%
|
8.70
%
|
|
Small/Mid-Cap Value |
MML
VIP American Century Mid Cap Value Fund (Initial Class)(25) |
0.89
%
|
8.97
%
|
8.80
%
|
9.14
%
|
|
Small/Mid-Cap Blend |
MML
VIP Invesco Small Cap Equity Fund (Initial Class)(26) |
0.71
%
|
8.86
%
|
8.38
%
|
10.73
%
|
|
Small/Mid-Cap Growth |
MML
VIP Invesco Discovery Mid Cap Fund (Class II)(27) |
0.85
%
(*) |
— |
— |
— |
|
Small/Mid-Cap Growth |
MML
VIP T. Rowe Price Mid Cap Growth Fund (Initial Class)(28) |
0.82
%
|
4.35
%
|
3.82
%
|
9.94
%
|
|
Small/Mid-Cap Growth |
MML
VIP Wellington Small Cap Growth Equity Fund |
1.05
%
(*) |
7.34
%
|
2.67
%
|
10.59
%
|
|
International/Global |
Invesco
V.I. International Growth Fund (Series I)(30) |
1.00
%
(*) |
16.32
%
|
2.15
%
|
5.64
%
|
|
International/Global |
MML
Foreign Fund (Initial Class) |
0.92
%
|
32.60
%
|
9.01
%
|
6.72
%
|
|
International/Global |
MML
VIP Invesco Global Fund (Class II)(31) |
0.81
%
|
23.11
%
|
7.51
%
|
9.96
%
|
|
Specialty(32) |
Invesco
V.I. Health Care Fund (Series I) |
0.99
%
|
15.33
%
|
3.80
%
|
6.58
%
|
|
Specialty(32) |
Invesco
V.I. Technology Fund (Series I) |
0.96
%
|
20.47
%
|
10.30
%
|
15.78
%
|
63
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average
Annual Total Returns | ||
|
1 Year |
5 Year |
10 Year | |||
|
Specialty(32) |
PIMCO
CommodityRealReturn®
Strategy Portfolio (Advisor Class) |
3.29
%
(*) |
18.66
%
|
10.44
%
|
6.42
%
|
|
Specialty(32) |
VY®
CBRE Global Real Estate Portfolio (Class S) |
1.16
%
(*) |
6.53
%
|
3.77
%
|
3.73
%
|
|
Specialty(32) |
VY®
Columbia Real Estate Portfolio (Class S) |
1.00
%
(*) |
0.03
%
|
5.67
%
|
4.80
%
|
| Fidelity, Contrafund and Fidelity Institutional AM are registered service marks of FMR LLC. Used with permission. |
| (*) | This Fund is subject to an expense reimbursement or fee waiver arrangement. As a result, this Fund’s annual expenses reflect temporary expense reductions. See the Fund prospectus for additional information. |
| (1) | These are fund-of-funds investment choices. They are known as fund-of-funds because they invest in other underlying funds. A fund offered in a fund-of-funds structure may have higher expenses than a direct investment in its underlying funds because a fund-of-funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying funds in which it invests. |
| (2) | MML VIP Aggressive Allocation Fund formerly known as MML Aggressive Allocation Fund. |
| (3) | MML VIP Balanced Allocation Fund formerly known as MML Balanced Allocation Fund. |
| (4) | MML VIP Conservative Allocation Fund formerly known as MML Conservative Allocation Fund. |
| (5) | MML VIP Growth Allocation Fund formerly known as MML Growth Allocation Fund. |
| (6) | MML VIP Moderate Allocation Fund formerly known as MML Moderate Allocation Fund. |
| (7) | You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. The yield of this Fund may become very low during periods of low interest rates. After deduction of Separate Account charges, the yield in the division that invests in this Fund could be negative. |
| (8) | Unavailable in Certificates issued on or after January 19, 2008. |
| (9) | MML VIP Barings U.S. Government Money Market Fund formerly known as MML U.S. Government Money Market Fund. |
| (10) | Effective May 1, 2009 and after, you may not allocate any new money to this Fund via Purchase Payments or transfers. |
| (11) | MML VIP Barings Core Bond Fund formerly known as MML Managed Bond Fund. |
| (12) | MML VIP Barings Inflation-Protected and Income Fund formerly known as MML Inflation-Protected and Income Fund. |
| (13) | MML VIP Barings Short-Duration Bond Fund formerly known as MML Short-Duration Bond Fund. |
| (14) | MML VIP Fidelity Institutional AM® Core Plus Bond Fund formerly known as MML Total Return Bond Fund. |
| (15) | Unavailable in Certificates issued on or after April 30, 2012. |
| (16) | MML VIP BlackRock® Balanced Fund formerly known as MML Blend Fund. |
| (17) | MML VIP Franklin Templeton Equity Fund formerly known as MML Equity Fund. |
| (18) | MML VIP T. Rowe Price Equity Income Fund formerly known as MML Equity Income Fund. |
| (19) | MML VIP BlackRock® Equity Index Fund formerly known as MML Equity Index Fund. |
| (20) | MML VIP Invesco Main Street Equity Fund formerly known as MML Fundamental Equity Fund. |
| (21) | MML VIP JPMorgan U.S. Research Enhanced Equity Fund formerly known as MML Managed Volatility Fund. |
| (22) | MML VIP Invesco Discovery Large Cap Fund formerly known as MML Invesco Discovery Large Cap Fund. |
| (23) | MML VIP Loomis, Sayles Large Cap Growth Fund formerly known as MML Large Cap Growth Fund. |
| (24) | MML VIP T. Rowe Price Blue Chip Growth Fund formerly known as MML Blue Chip Growth Fund. |
| (25) | MML VIP American Century Mid Cap Value Fund formerly known as MML Mid Cap Value Fund. |
| (26) | MML VIP Invesco Small Cap Equity Fund formerly known as MML Small Cap Equity Fund. |
| (27) | MML VIP Invesco Discovery Mid Cap Fund formerly known as MML Invesco Discovery Mid Cap Fund. |
| (28) | MML VIP T. Rowe Price Mid Cap Growth Fund formerly known as MML Mid Cap Growth Fund. |
| (29) | MML VIP Wellington Small Cap Growth Equity Fund formerly known as MML Small Cap Growth Equity Fund. |
| (30) | Invesco V.I. International Growth Fund formerly known as Invesco Oppenheimer V.I. International Growth Fund. |
| (31) | MML VIP Invesco Global Fund formerly known as MML Global Fund. |
| (32) | Specialty funds are an all-encompassing category that consists of funds that forgo broad diversification to concentrate on a certain segment of the economy or a specific targeted strategy. For example, sector funds are targeted strategy funds aimed at specific sectors of the economy, such as financial, technology, healthcare, |
64
| and so on. Sector funds can, therefore, be more volatile than a more diversified equity fund since the stocks in a given sector tend to be highly correlated with each other. |
Fixed Account Investment Options Available Under the Certificate
The following is a list of fixed options currently available under the Certificate. We may change the features of the fixed options listed below, offer new fixed options, and terminate existing fixed options. We will provide you with written notice before doing so. See “General Information about Massachusetts Mutual Life Insurance Company, the Separate Account and the Investment Options – The Fixed Accounts” for more information.
|
Name |
Minimum Guaranteed Interest Rate |
|
6 Month DCA Fixed Account |
3% |
|
12 Month DCA Fixed Account |
3% |
|
The Fixed Account |
3% |
65
Free Withdrawal Amount (FWA) Examples
Example 1 ~ Free Withdrawal Amount in Second Certificate Year at the Time of a Withdrawal
The values shown are based on the following assumptions:
| • | Your Certificate Issue Date is 4/6/2004. This is the date when we credit your initial Purchase Payment of $100,000 to your Certificate. |
| • | On 5/15/2004, an additional Purchase Payment of $10,000 is made. |
| • | On 7/15/2005, which is in Certificate Year 2, the Certificate Value is $125,000 and a partial withdrawal of $12,000 is made. |
Based on the above, we have the following values for the calculation of the Free Withdrawal Amount.
|
Date |
Transaction |
Pre- |
Transaction |
Gain(1) |
Purchase |
10%
of |
FWA(2) |
|
4/6/2004 |
Purchase 1 |
$ 0 |
$100,000 |
$ 0 |
$100,000 |
$10,000 |
$10,000 |
|
5/15/2004 |
Purchase 2 |
102,000 |
10,000 |
2,000 |
110,000 |
11,000 |
11,000 |
|
7/15/2005 |
Immediately |
125,000 |
15,000 |
110,000 |
11,000 |
15,000 |
| (1) | Gain is the part of the Certificate that is attributable to positive investment earnings in the Certificate as of that day. |
| (2) | FWA is the greater of the gain or 10% of the Purchase Payments reduced by any free withdrawals you previously took in the current Certificate Year. |
| • | On 4/6/2004, 10% of the first Purchase Payment of $100,000 is $10,000. There is no gain so the FWA for that day would be $10,000 (greater of $0 or $10,000). |
| • | On 5/15/2004, the total Purchase Payments for the Certificate is $110,000 ($100,000 + $10,000). 10% of the total Purchase Payments is $11,000 (10% x $110,000). The gain is $2,000 so the FWA for that day is $11,000 (greater of $2,000 or $11,000). |
| • | On 7/15/2005, 10% of the total Purchase Payments is $11,000 (10% x $110,000). The gain is $15,000 so the FWA for that day is $15,000 (greater of $15,000 or $11,000). |
66
Example 2 ~ Impact of Prior Withdrawal to Free Withdrawal Amount
This example is the same as Example 1 but has additional events that happen after 7/15/2005.
| • | Your Certificate Issue Date is 4/6/2004. This is the date when we credit your initial Purchase Payment of $100,000 to your Certificate. |
| • | On 5/15/2004, an additional Purchase Payment of $10,000 is made. |
| • | On 7/15/2005, the Certificate Value is $125,000 and a partial withdrawal of $12,000 is made. |
| • | On 8/1/2005, an additional Purchase Payment of $20,000 is made. |
| • | On 8/15/2005, the Certificate Value is $137,000 and a partial withdrawal of $12,000 is made. |
Based on the above, we have the following values for the calculation of the Free Withdrawal Amount.
|
Date |
Transaction |
Certificate |
Purchase |
Total |
Gain(1) |
Total |
10%
of |
Prior |
FWA(2) |
|
4/6/2004 |
Purchase 1 |
$ 0 |
$100,000 |
$100,000 |
$ 0 |
$100,000 |
$10,000 |
$ 0 |
$10,000 |
|
5/15/2004 |
Immediately Before Purchase 2 |
102,000 |
10,000 |
100,000 |
2,000 |
100,000 |
10,000 |
0 |
10,000 |
|
5/15/2004 |
Immediately After Purchase 2 |
112,000 |
0 |
110,000 |
2,000 |
110,000 |
11,000 |
0 |
11,000 |
|
7/15/2005 |
Immediately Before Withdrawal 1 |
125,000 |
12,000 |
110,000 |
15,000 |
110,000 |
11,000 |
0 |
15,000 |
|
7/15/2005 |
Immediately After Withdrawal 1 |
113,000 |
0 |
110,000 |
3,000 |
110,000 |
11,000 |
12,000 |
3,000 |
|
8/1/2005 |
Immediately Before Purchase 3 |
120,000 |
20,000 |
110,000 |
10,000 |
110,000 |
11,000 |
12,000 |
10,000 |
|
8/1/2005 |
Immediately After Purchase 3 |
140,000 |
0 |
130,000 |
10,000 |
130,000 |
13,000 |
12,000 |
10,000 |
|
8/15/2005 |
Immediately Before Withdrawal 2 |
137,000 |
12,000 |
130,000 |
7,000 |
130,000 |
13,000 |
12,000 |
7,000 |
|
8/15/2005 |
Immediately After Withdrawal 2 |
125,000 |
0 |
125,000 |
0 |
130,000 |
13,000 |
19,000 |
0 |
| (1) | Gain is the part of the Certificate that is attributable to positive investment earnings in the Certificate as of that day. |
| (2) | FWA is the greater of the gain or 10% of the Purchase Payments reduced by any free withdrawals you previously took in the current Certificate Year. |
| • | On 4/6/2004, 10% of the first Purchase Payment of $100,000 is $10,000. There is no gain so the FWA for that day would be $10,000 (greater of $0 or $10,000). |
| • | On 5/15/2004, the total Purchase Payments for the Certificate is $110,000 ($100,000 + $10,000). 10% of the total Purchase Payments is $11,000 (10% x $110,000). The gain is $2,000 so the FWA for that day is $11,000 (greater of $2,000 or $11,000). |
67
| • | On 7/15/2005 immediately prior to the withdrawal, 10% of the total Purchase Payments is $11,000 (10% x $110,000). The gain is $15,000 so the FWA for that day is $15,000 (greater of $15,000 or $11,000). |
| • | On 7/15/2005 immediately after the withdrawal, 10% of the total Purchase Payments is still $11,000 (10% x $110,000). The withdrawal ($12,000) was less than the gain ($15,000) so all of the withdrawal came from the earnings in the Certificate and there was no reduction in total remaining Purchase Payments for any future gain calculations. |
| • | On 8/1/2005, the remaining Purchase Payments become $130,000 ($110,000 + $20,000) and the total Purchase Payments become $130,000 ($110,000 + $20,000). |
| • | On 8/15/2005 immediately prior to the withdrawal, 10% of the total Purchase Payments is $13,000 (10% x $130,000). 10% of the total premiums reduced by prior withdrawals of FWA in the current Certificate Year is $1,000 ($13,000 – $12,000). The gain is $7,000 ($137,000 – $130,000). So, the FWA for this day is $7,000 (greater of $1,000 or $7,000). |
| • | On 8/15/2005 immediately after the withdrawal, the withdrawal ($12,000) is greater than the FWA ($7,000), so $5,000 ($12,000 – $7,000) of the withdrawal is subject to CDSC. The total Purchase Payments is $130,000. 10% of the total Purchase Payments is $13,000 (10% x $130,000). The prior withdrawals of FWA to apply to any future withdrawals in the Certificate Year is $19,000 ($12,000 + $7,000). |
68
Contingent Deferred Sales Charge (CDSC) Example
| • | The following Purchase Payments are made: |
|
Purchase Payment |
Certificate Year |
Date |
Amount |
|
1 (on Issue Date) |
1 |
January 15 |
$100,000 |
|
2 |
1 |
May 15 |
10,000 |
|
3 |
2 |
January 15 |
200,000 |
| • | Total Purchase Payments are $310,000. |
| • | On February 15 of Certificate Year 4, the Certificate Value is $350,000 and a partial withdrawal of $150,000 is made. |
| • | To calculate the CDSC, we first determine the Free Withdrawal Amount (FWA) not subject to a CDSC. 10% of the total Purchase Payments is $31,000 (10% x ($100,000 + $10,000 + $200,000)). The gain in the Certificate is $40,000 ($350,000 – $310,000). Therefore, the FWA is $40,000 (the greater of $31,000 and $40,000). |
| • | We next determine the withdrawal amount to allocate to Purchase Payments, which is what remains after the withdrawal of the gain, $110,000 ($150,000 – $40,000). |
| • | We then look at the amount of CDSC from Purchase Payment #1. The amount remaining subject to a CDSC is $100,000. Since Purchase Payment #1 is in the fourth year from the date that Purchase Payment was applied, the CDSC is 4% or $4,000 ($100,000 x 4%). |
| • | The remaining withdrawal amount still subject to a CDSC after allocation to Purchase Payment #1 is $10,000 ($110,000 – $100,000). |
| • | Next, we look at the amount of CDSC from Purchase Payment #2. Purchase Payment #2 is $10,000 and since Purchase Payment #2 is in the third year from the date that Purchase Payment was applied, the CDSC is 5% or $500 ($10,000 x 5%). |
| • | There is no remaining withdrawal amount still subject to a CDSC after allocation to Purchase Payment #2 ($10,000 – $10,000). |
| • | The total CDSC is $4,500, which is the sum of the charges on each Purchase Payment ($4,000 + $500). |
The total CDSC for this withdrawal is $4,500, which is deducted from the withdrawal amount of $150,000. The net amount of $145,500 ($150,000 – $4,500) is paid to the Participant, unless otherwise instructed.
69
Example 1 ~ Impact of Purchase Payments and Determination of Benefit
The values shown are based on the following assumptions:
| • | Initial Purchase Payment = $100,000 |
| • | A subsequent Purchase Payment of $10,000 is made at beginning of Certificate Year 2. |
| • | The Certificate Value on the third Certificate Anniversary is $120,000. |
| • | Participant dies in Certificate Year 5. |
|
Beginning of Certificate Year |
Purchase Payment |
Certificate
Value |
Total
Purchase Payments |
3
Year |
|
1 |
$100,000 |
$100,000 |
$100,000 |
|
|
2 |
10,000 |
115,000 |
110,000 |
|
|
4 |
120,000 |
110,000 |
$120,000 | |
|
5 (receive due proof of Participant’s death and election of the payment method) |
101,000 |
110,000 |
120,000 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial total Purchase Payments adjusted for withdrawals. |
| • | At the beginning of Certificate Year 2, a $10,000 subsequent Purchase Payment is made, bringing the total Purchase Payments adjusted for withdrawals to $110,000. |
| • | The beginning of Certificate Year 4 is the third Certificate Anniversary. The Certificate Value is $120,000, and we will include this value in the determination of the death benefit. |
| • | Participant dies in Certificate Year 5. When we receive due proof of death and election of the payment method for the death benefit, the Certificate Value is $101,000. The total Purchase Payments adjusted for withdrawals is $110,000. The Certificate Value on the most recent Three Year Anniversary is $120,000. The Basic Death Benefit is the greatest of these three values. Therefore, the death benefit is $120,000. |
70
Example
2A ~ Impact of Withdrawal and Determination of Benefit when Certificate is Issued Prior to
October
1, 2003
The values shown are based on the following assumptions:
| • | Certificate is issued prior to October 1, 2003. Therefore, any withdrawal will be deducted from the death benefit by the same dollar amount as the dollar amount of the withdrawal. |
| • | Initial Purchase Payment = $100,000. |
| • | A subsequent Purchase Payment of $10,000 is made at beginning of Certificate Year 2. |
| • | A withdrawal of $20,000 is made at beginning of Certificate Year 5. |
| • | Participant dies in Certificate Year 6. |
|
Beginning of Certificate Year |
Purchase Payment |
Withdrawal |
Certificate
Value |
Total
Purchase Payments |
3
Year |
|
1 |
$100,000 |
$100,000 |
$100,000 |
||
|
2 |
10,000 |
115,000 |
110,000 |
||
|
4 |
120,000 |
110,000 |
$120,000 | ||
|
5 (immediately prior to withdrawal) |
120,750 |
110,000 |
120,000 | ||
|
5 (immediately after withdrawal) |
$20,000 |
100,750 |
90,000 |
100,000 | |
|
6 (receive due proof of Participant’s death and election of the payment method) |
90,927 |
90,000 |
100,000 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial total Purchase Payments adjusted for withdrawals. |
| • | At the beginning of Certificate Year 2, a $10,000 subsequent Purchase Payment is made, bringing the total Purchase Payments adjusted for withdrawals to $110,000. |
| • | At the beginning of Certificate Year 5, a $20,000 withdrawal (including any CDSC) is made. |
| • | Immediately prior to when the withdrawal is made, the Certificate Value is $120,750, and the total Purchase Payments adjusted for withdrawals is $110,000. |
| • | Immediately after the withdrawal is made, the Certificate Value becomes $100,750 ($120,750 – $20,000). The total Purchase Payments adjusted for withdrawals and Certificate Value on the most recent three-year Certificate Anniversary are both reduced by the same amount that the Certificate Value is reduced ($20,000). The total Purchase Payments adjusted for withdrawals is $90,000 ($110,000 – $20,000) and the three year anniversary Certificate Value is $100,000 ($120,000 – $20,000) |
| • | Participant dies in Certificate Year 6. When we receive due proof of death and election of the payment method for the death benefit, the Certificate Value is $90,927. The total Purchase Payments adjusted for withdrawals is $90,000. The three-year anniversary Certificate Value adjusted for Purchase Payments and withdrawals is $100,000. Therefore, the death benefit is $100,000 (greatest of $90,927, $90,000, and $100,000). |
71
Example 2B ~ Impact of Withdrawal and Determination of Benefit when Certificate is Issued on or after October 1, 2003
The values shown are based on the following assumptions:
| • | Certificate is issued on or after October 1, 2003. Therefore, any withdrawals will reduce the death benefit by the same percentage as the percentage reduction in the Certificate Value. |
| • | Initial Purchase Payment = $100,000. |
| • | A subsequent Purchase Payment of $10,000 is made at beginning of Certificate Year 2. |
| • | A withdrawal of $20,000 is made at beginning of Certificate Year 5. |
| • | Participant dies in Certificate Year 6. |
|
Beginning of Certificate Year |
Purchase Payment |
Withdrawal |
Certificate
Value |
Total
Purchase Payments |
3
Year |
|
1 |
$100,000 |
$100,000 |
$100,000 |
||
|
2 |
10,000 |
115,000 |
110,000 |
||
|
4 |
120,000 |
110,000 |
$120,000 | ||
|
5 (immediately prior to withdrawal) |
120,750 |
110,000 |
120,000 | ||
|
5 (immediately after withdrawal) |
$20,000 |
100,750 |
91,781 |
100,124 | |
|
6 (receive due proof of Participant’s death and election of the payment method) |
90,927 |
91,781 |
100,124 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial total Purchase Payments adjusted for withdrawals. |
| • | At the beginning of Certificate Year 2, a $10,000 subsequent Purchase Payment is made, bringing the total Purchase Payments adjusted for withdrawals to $110,000. |
| • | At the beginning of Certificate Year 5, a $20,000 withdrawal (including any CDSC) is made. |
| • | Immediately prior to when the withdrawal is made, the Certificate Value is $120,750, and the total Purchase Payments adjusted for withdrawals is $110,000. |
| • | Immediately
after the withdrawal is made, the Certificate Value becomes $100,750 ($120,750 – $20,000). The total Purchase Payments
adjusted for withdrawals and Certificate Value on the most recent three- year Certificate Anniversary are both reduced
by the same proportion that the Certificate Value is reduced. Total Purchase Payments adjusted for withdrawals (immediately after the withdrawal) = total Purchase Payments adjusted for withdrawals (immediately prior to the withdrawal) – (withdrawal amount / Certificate Value immediately prior to the withdrawal) x total Purchase Payments adjusted for withdrawals (immediately prior to the withdrawal) = $110,000 – ($20,000 / $120,750) x $110,000 = $110,000 – $18,219 = $91,781 Most recent three-year Certificate Anniversary Certificate Value = three-year Certificate Anniversary Certificate Value – (withdrawal amount / Certificate Value immediately prior to the withdrawal) x three-year Certificate Anniversary Certificate Value immediately prior to the withdrawal = $120,000 – ($20,000 / $120,750) x $120,000 = $120,000 – $19,876 = $100,124 |
| • | Participant dies in Certificate Year 6. When we receive due proof of death and election of the payment method for the death benefit, the Certificate Value is $90,927. The total Purchase Payments adjusted for withdrawals is $91,781. The three-year anniversary Certificate Value adjusted for Purchase Payments and withdrawals is $100,124. Therefore, the death benefit is $100,124 (greatest of $90,927, $91,781, and $100,124). |
72
Example 3 ~ Impact of Reaching Age 75
The values shown are based on the following assumptions:
| • | Initial Purchase Payment = $100,000 |
| • | A subsequent Purchase Payment of $10,000 is made at beginning of Certificate Year 2. |
| • | The Certificate Value on the third Certificate Anniversary is $120,000. |
| • | Participant reaches Age 75 in Certificate Year 5. Please see definition of Age earlier in this prospectus. |
| • | A subsequent Purchase Payment of $20,000 is made at beginning of Certificate Year 7. |
|
Beginning of Certificate Year |
Purchase |
Certificate |
Total
Purchase Payments |
3
Year |
|
1 |
$100,000 |
$100,000 |
$100,000 |
|
|
2 |
10,000 |
115,000 |
110,000 |
|
|
4 (Immediately before Certificate Anniversary) |
120,000 |
110,000 |
||
|
4 (Immediately after Certificate Anniversary) |
120,000 |
110,000 |
$120,000 | |
|
5 (Participant turns Age 75) |
101,000 |
110,000 |
120,000 | |
|
7 (Immediately before Purchase Payment) |
110,000 |
120,000 | ||
|
7 (Immediately after Purchase Payment) |
20,000 |
130,000 |
140,000 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial total Purchase Payments adjusted for withdrawals. |
| • | At the beginning of Certificate Year 2, a $10,000 subsequent Purchase Payment is made, bringing the total Purchase Payments adjusted for withdrawals to $110,000. |
| • | At the beginning of Certificate Year 4, the Certificate Value is $120,000. The three-year anniversary Certificate Value is set to $120,000. |
| • | At the beginning of Certificate Year 5, the Participant has turned Age 75. Therefore, the three-year anniversary Certificate Value will not be reset at the beginning of year 7, or any three-year anniversary thereafter. Once the Participant or oldest Joint Participant reaches Age 75, we look to the Certificate Value on the most recent three year Certificate Anniversary prior to the Participant or the oldest Joint Participant reaching Age 75, plus any subsequent Purchase Payments, less any subsequent withdrawals, including any applicable charges. Your first Certificate Anniversary is one calendar year from the date we issued your Certificate. |
| • | At the beginning of Certificate Year 7, a $20,000 subsequent Purchase Payment is made. The total Purchase Payments adjusted for withdrawals is increased to $130,000 ($110,000 + $20,000) and the three-year Certificate Anniversary value is increased to $140,000 ($120,000 + $20,000). |
73
Ratchet Death Benefit Examples
Example 1 ~ Impact of Purchase Payments and Determination of Benefit
The values shown are based on the following assumptions:
| • | Initial Purchase Payment = $100,000 |
| • | A subsequent Purchase Payment of $10,000 is made at the beginning of Certificate Year 2 and the Certificate Value is $105,000 prior to the addition of the Purchase Payment. |
| • | The Certificate Value at the beginning of Certificate Year 3 is $120,000. |
| • | Participant dies in Certificate Year 4. |
|
Beginning of Certificate Year |
Purchase Payment |
Certificate
Value |
Annual
Ratchet |
|
1 |
$100,000 |
$100,000 |
$100,000 |
|
2 (immediately prior to Purchase Payment) |
105,000 |
$105,000 | |
|
2 |
10,000 |
115,000 |
115,000 |
|
3 |
120,000 |
120,000 | |
|
4 (receive due proof of Participant’s death and election of the payment method) |
110,000 |
120,000 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial annual ratchet death benefit amount. |
| • | At the beginning of Certificate Year 2 immediately prior to the Purchase Payment, the Certificate Value is $105,000, so the annual ratchet death benefit amount is $105,000 (greater of $100,000 or $105,000). |
| • | At the beginning of Certificate Year 2, a $10,000 Purchase Payment is made. This amount increases the annual ratchet death benefit to $115,000 ($105,000 + $10,000). |
| • | At the beginning of Certificate Year 3, the Certificate Value is $120,000 so the annual ratchet death benefit amount is $120,000 (greater of $115,000 or $120,000). |
| • | The beginning of Certificate Year 4, the Certificate Value is $110,000. This is less than the annual ratchet death benefit amount ($120,000) so the annual ratchet death benefit amount does not change. |
| • | Participant dies in Certificate Year 4. When we receive due proof of death and election of the payment method for the death benefit, the Certificate Value is $110,000. The annual ratchet death benefit amount is $120,000. The Ratchet Death Benefit is $120,000 (greater of $110,000 or $120,000). |
74
Example 2 ~ Impact of Withdrawal and Determination of Benefit
The values shown are based on the following assumptions:
| • | Any withdrawals will reduce the death benefit by the same percentage as the percentage reduction in the Certificate Value. |
| • | Initial Purchase Payment = $100,000. This is the initial annual ratchet death benefit amount. |
| • | The Certificate Value at the beginning of Certificate Year 2 is $105,000. |
| • | A withdrawal of $20,000 is made at beginning of Certificate Year 3. Prior to the withdrawal, the Certificate Value is $100,000. |
| • | Participant dies in Certificate Year 4 with a Certificate Value of $83,000. |
|
Beginning of Certificate Year |
Purchase Payment |
Withdrawal |
Certificate
Value |
Annual
Ratchet |
|
1 |
$100,000 |
$100,000 |
$100,000 | |
|
2 |
105,000 |
105,000 | ||
|
3 (immediately prior to withdrawal) |
100,000 |
105,000 | ||
|
3 (immediately after withdrawal) |
$20,000 |
80,000 |
84,000 | |
|
4 (receive due proof of Participant’s death and election of the payment method) |
83,000 |
84,000 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial annual ratchet death benefit amount. |
| • | At the beginning of Certificate Year 2, the annual ratchet death benefit amount is set to $105,000 because the Certificate Value is greater than the annual ratchet death benefit amount (greater of $100,000 or $105,000). |
| • | At the beginning of Certificate Year 3 immediately prior to the withdrawal, the Certificate Value is $100,000, and the annual ratchet death benefit amount remains set to $105,000 because this is greater than the Certificate Value. |
| • | At the beginning of Certificate Year 3 after the withdrawal is made, the Certificate Value becomes $80,000 ($100,000 – $20,000), so the Certificate Value has been reduced by 20% ($20,000 / $100,000). The annual ratchet death benefit amount is reduced by $21,000 (20% x $105,000) to $84,000 ($105,000 – $21,000). |
| • | At the beginning of Certificate Year 4, the Certificate Value is $83,000 and the annual ratchet death benefit amount is $84,000. Because the annual ratchet death benefit amount is greater than the Certificate Value, it stays at $84,000. |
| • | Participant dies in Certificate Year 4. When we receive due proof of death and election of the payment method for the death benefit, the Certificate Value is $83,000. The annual ratchet death benefit amount is $84,000. Therefore, the death benefit is $84,000 (greater of $83,000 or $84,000). |
75
Example 3 ~ Impact of Reaching Age 80
The values shown are based on the following assumptions:
| • | Initial Purchase Payment = $100,000 |
| • | The Certificate Value at the beginning of Certificate Year 2 is $105,000. |
| • | A subsequent Purchase Payment of $10,000 is made at beginning of Certificate Year 2. |
| • | The Certificate Value at the beginning of Certificate Year 3 is $120,000. |
| • | Participant will be Age 80 at the beginning of Certificate Year 3. Please see definition of Age earlier in this prospectus. |
| • | A subsequent Purchase Payment of $20,000 is made at beginning of Certificate Year 4. |
| • | Participant dies in Certificate Year 5 with a Certificate Value of $130,000. |
|
Beginning of Certificate Year |
Purchase Payment |
Withdrawal |
Certificate Value |
Annual
Ratchet |
|
1 |
$100,000 |
$100,000 |
$100,000 | |
|
2 (immediately prior to Purchase Payment) |
105,000 |
105,000 | ||
|
2 (immediately after Purchase Payment) |
10,000 |
115,000 |
115,000 | |
|
3 (Participant turns Age 80) |
120,000 |
115,000 | ||
|
4 |
20,000 |
145,000 |
135,000 | |
|
5 (receive due proof of Participant’s death and election of the payment method) |
130,000 |
135,000 |
| • | On the Certificate Issue Date, a $100,000 Purchase Payment is made. This is the initial annual ratchet death benefit amount. |
| • | At the beginning of Certificate Year 2 immediately prior to the Purchase Payment, the Certificate Value is $105,000 and the annual ratchet death benefit amount is set to $105,000. |
| • | At the beginning of Certificate Year 2, a $10,000 Purchase Payment is made. This amount increases the annual ratchet death benefit to $115,000 ($105,000 + $10,000). |
| • | At the beginning of Certificate Year 3, the Participant is Age 80 so the annual ratchet death benefit amount is no longer compared to the Certificate Value ($120,000). Therefore, it will remain at $115,000. |
| • | At the beginning of Certificate Year 4, a $20,000 subsequent Purchase Payment is made. The annual ratchet death benefit amount is increased to $135,000 ($115,000 + $20,000). |
| • | Participant dies in Certificate Year 5. When we receive due proof of death and election of the payment method for the death benefit, the Certificate Value is $130,000 due to negative market performance. The annual ratchet death benefit amount is $135,000. Therefore, the ratchet death benefit is $135,000 (greater of $130,000 or $135,000). |
76
State Variations of Certain Certificate Features
The following chart describes the material variation of certain features and/or benefits of the Certificate in states where the Certificate has been approved as of the date of the prospectus.
|
State |
Feature |
Variation |
|
New Jersey |
Right to Cancel Your Certificate |
Requires 30-day free look period for replacements. |
|
New York |
457(b) Deferred Compensation Plan Certificates |
Not available. |
77
The SAI contains additional information about the Separate Account. The SAI is incorporated into this prospectus by reference and it is legally part of this prospectus. We filed the SAI with the SEC. The SEC maintains a website (www.sec.gov) that contains the SAI, material incorporated by reference and other information regarding companies that file electronically with the SEC.
Reports and other information about the Separate Account, including the SAI, are available on the SEC website (www.sec.gov).
For a free copy of the SAI, other information about this Certificate, or general inquiries, contact our Service Center:
MassMutual
Document
Management Services – Annuities W360
PO
Box 9067
Springfield,
MA 01102-9067
(800)
272-2216
(Fax)
(866) 329-4272
(Email)
ANNfax@MassMutual.com
www.MassMutual.com
Investment
Company Act file number: 811-08619
Securities
Act file number: 333-45039
Class
(Contract) Identifier: C000021310
AN2000N
STATEMENT OF ADDITIONAL INFORMATION
MASSACHUSETTS
MUTUAL LIFE INSURANCE COMPANY
(Insurance
Company)
MASSACHUSETTS
MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 4
(Registered
Separate Account)
PANORAMA
PREMIER
April 27, 2026
This is not a prospectus. This Statement of Additional Information (SAI) should be read in conjunction with the prospectus dated April 27, 2026, for the individual certificates under a group deferred annuity contract with flexible Purchase Payments which are referred to herein.
For a copy of the prospectus, call (800) 272-2216, visit online at www.MassMutual.com/PanoramaPremier, send an email request to MassMutualServiceCenter@MassMutual.com, or write to MassMutual®, Document Management Services – Annuities W360, PO Box 9067, Springfield, MA 01102-9067.
TABLE OF CONTENTS
|
SAI |
Prospectus | |
|
The Company .......................................... |
2 |
16 |
|
The Separate Account .................................. |
2 |
16 |
|
Assignment of Certificate .............................. |
2 |
58 |
|
Distribution ............................................ |
3 |
56 |
|
Accumulation Units and Unit Value .................... |
3 |
26 |
|
Transfers During the Income Phase ..................... |
4 |
29 |
|
Payment of Death Benefit .............................. |
4 |
37 |
|
Annuity Payments ..................................... |
4 |
32 |
|
Experts ................................................ |
5 |
|
|
Financial Statements ................................... |
5 |
1
AN2000N-SAI
In this Statement of Additional Information, the “Company,” “we,” “us,” and “our” refer to Massachusetts Mutual Life Insurance Company (MassMutual®). MassMutual and its domestic life insurance subsidiaries provide individual and group life insurance, disability insurance, individual and group annuities and guaranteed interest contracts to individual and institutional customers in all 50 states of the U.S., the District of Columbia and Puerto Rico. Products and services are offered primarily through MassMutual’s distribution channels: MassMutual Financial Advisors, MassMutual Strategic Distributors, Institutional Solutions and Worksite.
MassMutual was established on May 15, 1851 and is organized as a mutual life insurance company in the Commonwealth of Massachusetts. MassMutual’s home office is located at 1295 State Street, Springfield, Massachusetts 01111-0001.
We established Massachusetts Mutual Variable Annuity Separate Account 4 (Separate Account) as a separate account under Massachusetts law on July 9, 1997. The Separate Account is registered with the SEC as a unit investment trust under the 1940 Act.
The Separate Account holds the assets that underlie the Certificates (and certain other contracts that we issue), except any assets allocated to our General Account. We keep the Separate Account assets separate from the assets of our General Account and other separate accounts. The Separate Account is divided into Sub-Accounts, each of which invests exclusively in a single Fund.
We own the assets of the Separate Account. We credit gains to, or charge losses against, the Separate Account, whether or not realized, without regard to the performance of other investment accounts. The Separate Account’s assets may not be used to pay any of our liabilities other than those arising from the Certificates (or other contracts that we issue and that are funded by the Separate Account). If the Separate Account’s assets exceed the required reserves and other liabilities, we may transfer the excess to our General Account. The obligations of the Separate Account are not our generalized obligations and will be satisfied solely by the assets of the Separate Account. We are obligated to pay all amounts promised to investors under the Contract.
MassMutual will not be charged with notice of any assignment of a Certificate or of the interest of any Beneficiary or of any other person unless the assignment is in writing and MassMutual receives the original or a true copy thereof at our Service Center. MassMutual assumes no responsibility for the validity of any assignment.
For Qualified Contracts, the following exceptions and provisions should be noted:
(1) No person entitled to receive annuity payments under a Certificate or part or all of the Certificate’s Value will be permitted to commute, anticipate, encumber, alienate or assign such amounts, except upon the written authority of the Participant given during the Annuitant’s lifetime and received in Good Order by MassMutual at our Service Center. To the extent permitted by law, no certificate nor any proceeds or interest payable thereunder will be subject to the Annuitant’s or any other person’s debts, contracts or engagements, nor to any levy or attachment for payment thereof;
(2) If an assignment of a Certificate is in effect on the maturity date, MassMutual reserves the right to pay to the assignee in one sum the amount of the Certificate’s maturity value to which he is entitled, and to pay any balance of such value in one sum to the Participant, regardless of any payment options which the Participant may have elected. Moreover, if an assignment of a Certificate is in effect at the death of the Annuitant prior to the maturity date, MassMutual will pay to the assignee in one sum the death benefit amount which corresponds to the death benefit choice in effect at the time of the Annuitant’s death. Any balance of such value will be paid to the Beneficiary in one sum or applied under one or more of the payment options elected;
(3) Certificates used in connection with a tax-qualified retirement plan must be endorsed to provide that they may not be sold, assigned or pledged for any purpose unless they are owned by the trustee of a trust described in Section 401(a) or by the administrator of an annuity plan described under Section 403(a) of the Internal Revenue Code of 1986, as amended (IRC); and
(4) Certificates issued under a plan for an Individual Retirement Annuity pursuant to IRC Section 408, or for a Roth Individual Retirement Annuity pursuant to IRC Section 408A, must be endorsed to provide that they are non-transferable. Such Certificates may not be sold, assigned, discounted, or pledged as collateral for a loan or as security for the performance of an obligation or for any other purpose by the Annuitant to any person or party other than MassMutual, except to a former spouse of the annuitant in accordance with the terms of a divorce decree or other written instrument incident to a divorce.
Assignments may be subject to federal income tax.
2
We no longer offer the Certificate for sale to the public. However, Participants may continue to make Purchase Payments to existing Certificates, subject to the limitations described in the prospectus. Pursuant to separate underwriting agreements with the Company, on its own behalf and on behalf of the Separate Account, MML Investors Services, LLC (MMLIS), a subsidiary of MassMutual, serves as principal underwriter of the Contracts sold by its registered representatives, and MML Strategic Distributors, LLC (MSD), a subsidiary of MassMutual, serves as principal underwriter of the Contracts sold by registered representatives of other broker-dealers who entered into distribution agreements with MSD.
MMLIS and MSD are located at 1295 State Street, Springfield, MA 01111-0001. MMLIS and MSD are registered with the SEC as broker-dealers under the Securities and Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority (FINRA).
During the last three years, MMLIS and MSD were paid the compensation amounts shown below for their actions as principal underwriters for the Contracts described in the prospectus.
|
Year |
MMLIS |
MSD |
|
2025 |
$61,807 |
$7,264 |
|
2024 |
$73,650 |
$10,514 |
|
2023 |
$77,795 |
$9,192 |
Commissions for sales of the Contracts by MMLIS registered representatives are paid by MassMutual on behalf of MMLIS to its registered representatives. Commissions for sales of the Contracts by registered representatives of other broker-dealers are paid by MassMutual on behalf of MSD to those broker-dealers.
During the last three years, commissions, as described in the prospectus, were paid by MassMutual through MMLIS and MSD as shown below.
|
Year |
MMLIS |
MSD |
|
2025 |
$365,736 |
$56,990 |
|
2024 |
$373,151 |
$63,566 |
|
2023 |
$360,977 |
$54,405 |
This offering is on a continuous basis.
ACCUMULATION UNITS AND UNIT VALUE
During the Accumulation Phase, Accumulation Units shall be used to account for all amounts allocated to or withdrawn from the Sub-Accounts as a result of Purchase Payments, withdrawals, transfers, or fees and charges. MassMutual will determine the number of Accumulation Units of a Sub-Account purchased or canceled. This will be done by dividing the amount allocated to (or the amount withdrawn from) the Sub-Account by the dollar value of one Accumulation Unit of the Sub-Account as of the end of the Business Day during which the transaction is received in Good Order at our Service Center.
The Accumulation Unit value for each Sub-Account was set on the date such Sub-Account became operative. Subsequent Accumulation Unit values for each sub-account are determined for each day in which the New York Stock Exchange is open for business (Business Day) by multiplying the Accumulation Unit value for the immediately preceding Business Day by the net investment factor for the Sub-Account for the current Business Day.
The net investment factor for each Sub-Account is determined by dividing A by B and subtracting C where:
A is (i) the net asset value per share of the funding vehicle or portfolio of a funding vehicle held by the Sub-Account for the current Business Day; plus (ii) any dividend per share declared on behalf of such funding vehicle or portfolio of a funding vehicle that has an ex-dividend date within the current Business Day; less (iii) the cumulative charge or credit for taxes reserved which is determined by MassMutual to have resulted from the operation or maintenance of the Sub-Account.
B is the net asset value per share of the funding vehicle or portfolio held by the Sub-Account for the immediately preceding Business Day, minus the cumulative charge or credit for taxes reserved which is determined by MassMutual to have resulted from the operation or maintenance of the Sub-Account as of the immediately preceding Business Day.
C is the cumulative charge since the immediately preceding business day for the insurance charges.
The Accumulation Unit value may increase or decrease from business day to business day.
3
TRANSFERS DURING THE INCOME PHASE
Transfers of annuity reserves between Sub-Accounts will be made by converting the number of annuity units attributable to the annuity reserves being transferred to the number of annuity units of the Sub-Account to which the transfer is made, so that the next Annuity Payment if it were made at that time would be the same amount that it would have been without the transfer. Thereafter, Annuity Payments will reflect changes in the value of the new annuity units.
The amount transferred to the General Account from a Sub-Account will be based on the annuity reserves for the Contract. Transfers to the General Account will be made by converting the annuity units being transferred to purchase fixed Annuity Payments under the Annuity Option in effect and based on the Age of the Annuitant at the time of the transfer.
See the “Transfers and Transfer Programs – Transfers During the Income Phase” section in the prospectus for more information about transfers during the Income Phase.
MassMutual will require due proof of death before any death benefit is paid. Due proof of death will be:
(1) a certified death certificate;
(2) a certified decree of a court of competent jurisdiction as to the finding of death; or
(3) any other proof satisfactory to MassMutual.
All death benefits will be paid in accordance with applicable law or regulations governing death benefit payments.
The Beneficiary designation in effect on the date we issue the Certificate will remain in effect until changed. Unless the Participant provides otherwise, the death benefit will be paid in equal shares to the Beneficiary(ies) as follows:
(1) to the primary Beneficiary(ies) who survive the Participant’s and/or the Annuitant’s death, as applicable; or
(2) if there is no primary Beneficiary who survives the Participant’s death and/or any Annuitant’s death, as applicable, to the contingent Beneficiary(ies) who survive the Participant’s and/or the Annuitant’s death, as applicable; or
(3) if there is no primary or contingent Beneficiary who survives the Participant’s death and/or any Annuitant’s death, as applicable, to the Participant or the Participant’s estate.
You may name an irrevocable Beneficiary(ies). In that case, a change involving the irrevocable Beneficiary requires the consent of the irrevocable Beneficiary. If an irrevocable Beneficiary is named, the Participant retains all other contractual rights.
See the “Death Benefit” section in the prospectus for more information on death benefits.
A variable Annuity Payment is an annuity with payments which;
(1) are not predetermined as to dollar amount; and
(2) will vary in amount with the net investment results of the applicable Sub-Accounts.
Annuity Payments also depend upon the Age of the Annuitant and any joint Annuitant and the assumed interest factor utilized and may vary by gender of the Annuitant and any joint Annuitant. The annuity table used will depend upon the Annuity Option chosen. The dollar amount of Annuity Payments after the first is determined as follows:
(1) The dollar amount of the first Annuity Payment is divided by the value of an annuity unit as of the Annuity Date. This establishes the number of annuity units for each Annuity Payment. The number of annuity units will remain the same for the life of the Certificate unless you transfer among investment options during the Income Phase or if you elected an Annuity Option with reduced payments to the survivor and the reduced payments to a survivor commence.
(2) For each Sub-Account, the fixed number of annuity units is multiplied by the annuity unit value on each subsequent Annuity Payment date.
(3) The total dollar amount of each variable Annuity Payment is the sum of all Sub-Account variable annuity payments.
The number of annuity units is determined as follows:
(1) The number of annuity units credited in each Sub-Account will be determined by dividing the product of the portion of the Certificate Value to be applied to the Sub-Account and the annuity purchase rate by the value of one annuity unit in that Sub-Account on the Annuity Date. The purchase rates are set forth in the variable annuity rate tables in the Certificate.
(2) For each Sub-Account, the amount of each Annuity Payment equals the product of the Annuitant’s number of annuity units and the annuity unit value on the payment date. The amount of each payment may vary.
4
The value of any annuity unit for each Sub-Account of the separate account was set on the date such Sub-Account became operative. The Sub-Account annuity unit value at the end of any subsequent valuation period is determined as follows:
(1) The net investment factor for the current Business Day is multiplied by the value of the annuity unit for the Sub-Account for the immediately preceding Business Day.
(2) The result in (1) is then divided by an assumed investment rate factor. The assumed investment rate factor equals 1.00 plus the assumed investment rate for the number of days since the preceding Business Day. The assumed investment rate is based on an effective annual rate of 4%.
The value of an annuity unit may increase or decrease from Business Day to Business Day. See “The Income Phase” section in the prospectus for more information.
The financial statements of Massachusetts Mutual Variable Annuity Separate Account 4 as of December 31, 2025 and for each of the years in the two-year period then ended and the financial highlights for each of the years in the five-year period then ended and the statutory financial statements of Massachusetts Mutual Life Insurance Company (the Company) as of December 31, 2025 and 2024, and for each of the years in the three-year period ended December 31, 2025, each have been included in this Statement of Additional Information herein in reliance upon the reports of KPMG LLP, an independent registered public accounting firm, each of which are also included herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP’s report, dated February 26, 2026, states that the Company prepared its financial statements using statutory accounting practices prescribed or permitted by the Commonwealth of Massachusetts Division of Insurance (statutory accounting practices), which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, KPMG LLP’s report states that the financial statements of the Company are not intended to be and, therefore, are not presented fairly in accordance with U.S. generally accepted accounting principles and further states that those statements are presented fairly, in all material respects, in accordance with the statutory accounting practices. The principal business address of KPMG LLP is One Financial Plaza, 755 Main Street, Hartford, Connecticut 06103.
The December 31, 2025 financial statements of Massachusetts Mutual Variable Annuity Separate Account 4 and the December 31, 2025 financial statements of Massachusetts Mutual Life Insurance Company are incorporated into this SAI by reference to Massachusetts Mutual Variable Annuity Separate Account 4’s most recent Form N-VPFS (“Form N-VPFS”) filed with the SEC.
5
AN2000N-SAI
PART C
OTHER INFORMATION
Item 27. Exhibits
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Fund Participation Agreements |
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AIM Funds (Invesco Funds) |
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Rule 22c-2 Agreements (Shareholder Information Agreements) |
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Exhibit (i) |
Not Applicable. |
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Not Applicable. |
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Company Financial Statements |
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Separate Account Financial Statements |
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Not Applicable. |
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Exhibit (n) |
Not Applicable. |
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| Exhibit (o) | Not Applicable. | ||||||
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Exhibit (p) |
i. |
a. |
Powers of Attorney for: | ||||
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Roger W. Crandall | ||||||
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Kathleen A. Corbet | |||
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James H. DeGraffenreidt, Jr. | ||||||
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Mary Jane Fortin | |||
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Isabella D. Goren | ||||||
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Bernard A. Harris, Jr. | |||
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Michelle K. Lee | |||
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Jeffrey M. Leiden | |||
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Laura J. Sen | |||
| • | Amy M. Stepnowski | ||||||
| – Incorporated by reference to Post-Effective Amendment No. 8 to Registration Statement File No. 333-255824 filed April 25, 2025 | |||||||
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Powers of Attorney for: |
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Gregory Giardiello |
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David H. Long |
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| – Incorporated by reference to Post-Effective Amendment No. 9 to Registration Statement File No. 333-255824 filed September 4, 2025 | |||||||
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Power of Attorney for: |
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Michael Thomas Rollings |
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| – Incorporated by reference to Post-Effective Amendment No. 14 to Registration Statement File No. 333-255824 filed December 18, 2025 | |||||||
| Exhibit (q) | Not Applicable. | ||||||
| Exhibit (r) | Not Applicable. | ||||||
| (*) | Filed herewith |
Item 28. Directors and Officers of the Insurance Company
Directors of Massachusetts Mutual Life Insurance Company
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Roger W. Crandall, Director, Chairman 1295 State Street Springfield, MA 01111 |
Kathleen A. Corbet, Director 34 Louises Lane New Canaan, CT 06840 |
Isabella D. Goren, Director 8030 Acoma Lane Dallas, TX 75252 |
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Michael T. Rollings, Director 9625 E AW Tillinghast Road Scottsdale, AZ 85262 |
James H. DeGraffenreidt, Jr., Director 406 Cedarcroft Road Baltimore, MD 21212 |
Michelle K. Lee, Director 19952 Moran Lane Saratoga, CA 95070 |
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Jeffrey M. Leiden, Director 127 South Beach Road Hobe Sound, FL 33455 |
Laura J. Sen, Director 95 Pembroke Street, Unit 1 Boston, MA 02118 |
Amy M. Stepnowski 29 Newgate Drive Glastonbury, CT 06033 |
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David H. Long, Director 10 Strawberry Hill Street Dover, MA 02030 |
Bernard A. Harris, Jr., Director 3333 Allen Parkway, #1709 Houston, Texas 77019 |
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Principal Officers of Massachusetts Mutual Life Insurance Company
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Roger W. Crandall, President and Chief Executive Officer 1295 State Street Springfield, MA 01111 |
Eric Partlan, Chief Investment Officer 10 Fan Pier Boulevard Boston, MA 02210 |
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Julieta Sinisgalli, Treasurer 10 Fan Pier Boulevard Boston, MA 02210 |
John Rugel, Head of Operations 10 Fan Pier Boulevard Boston, MA 02210 |
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Michael J. O’Connor, General Counsel 1295 State Street Springfield, MA 01111 |
Susan Cicco, Chief of Staff to the Chairman & CEO 1295 State Street Springfield, MA 01111 |
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Mary Jane Fortin, Chief Financial Officer 10 Fan Pier Boulevard Boston, MA 02210 |
Sears Merritt, Head of Technology & Experience 10 Fan Pier Boulevard Boston, MA 02210 |
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Dominic Blue, Head of Third-Party Distribution and New Markets 1295 State Street Springfield, MA 01111 |
Geoffrey Craddock, Chief Risk Officer 10 Fan Pier Boulevard Boston, MA 02210 |
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Paul LaPiana, Head of Brand, Product and Affiliated Distribution 1295 State Street Springfield, MA 01111 |
Tokunbo Akinbajo, Corporate Secretary 1295 State Street Springfield, MA 01111 |
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Gregory Giardiello, Corporate Controller 10 Fan Pier Boulevard Boston, MA 02210 |
Item 29. Persons Controlled by or Under Common Control with the Insurance Company or the Registered Separate Account
– Incorporated by reference to Item 32 on Form N-6 in Post-Effective Amendment No. 6 to Registration Statement File No. 333-259818 filed on or about April 24, 2026
Item 30. Indemnification
MassMutual directors and officers are indemnified under Article V. of the by-laws of Massachusetts Mutual Life Insurance Company, as set forth below.
ARTICLE V. of the By-laws of MassMutual provides for indemnification of directors and officers as follows:
“ARTICLE V.
INDEMNIFICATION
Subject to limitations of law, the Company shall indemnify:
| (a) | each director, officer or employee; |
| (b) | any individual who serves at the request of the Company as a director, board member, committee member, partner, trustee, officer or employee of any foreign or domestic organization or any separate investment account; or |
| (c) | any individual who serves in any capacity with respect to any employee benefit plan, |
from and against all loss, liability and expense imposed upon or incurred by such person in connection with any threatened, pending or completed action, claim, suit, investigation or proceeding of any nature whatsoever, in which such person may be involved or with which he or she may be threatened to be involved, by reason of any alleged act, omission or otherwise while serving in any such capacity, whether such action, claim, suit, investigation or proceeding is civil, criminal, administrative, arbitrative, or investigative and/or formal or informal in nature. Indemnification shall be provided although the person no longer serves in such capacity and shall include protection for the person’s heirs and legal representatives.
Indemnities hereunder shall include, but not be limited to, all costs and reasonable counsel fees, fines, penalties, judgments or awards of any kind, and the amount of reasonable settlements, whether or not payable to the Company or to any of the other entities described in the preceding paragraph, or to the policyholders or security holders thereof.
Notwithstanding the foregoing, no indemnification shall be provided with respect to:
| (1) | any matter as to which the person shall have been adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his or her action was in the best interests of the Company or, to the extent that such matter relates to service with respect to any employee benefit plan, in the best interests of the participants or beneficiaries of such employee benefit plan; |
| (2) | any liability to any entity which is registered as an investment company under the Federal Investment Company Act of 1940 or to the security holders thereof, where the basis for such liability is willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of office; and |
| (3) | any action, claim or proceeding voluntarily initiated by any person seeking indemnification, unless such action, claim or proceeding had been authorized by the Board of Directors or unless such person’s indemnification is awarded by vote of the Board of Directors. |
In any matter disposed of by settlement or in the event of an adjudication which in the opinion of the General Counsel or his or her delegate does not make a sufficient determination of conduct which could preclude or permit indemnification in accordance with the preceding paragraphs (1), (2) and (3), the person shall be entitled to indemnification unless, as determined by the majority of the disinterested directors or in the opinion of counsel (who may be an officer of the Company or outside counsel employed by the Company), such person’s conduct was such as precludes indemnification under any such paragraph. The termination of any action, claim, suit, investigation or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in the best interests of the Company.
The Company may at its option indemnify for expenses incurred in connection with any action or proceeding in advance of its final disposition, upon receipt of a satisfactory undertaking for repayment if it be subsequently determined that the person thus indemnified is not entitled to indemnification under this Article V.”
To provide certainty and more clarification regarding the indemnification provisions of the Bylaws set forth above, MassMutual has entered into indemnification agreements with each of its directors, and with each of its officers who serve as a director of a subsidiary of MassMutual, (a “Director”). Pursuant to the Agreements, MassMutual agrees to indemnify a Director, to the extent legally permissible, against (a) all expenses, judgments, fines and settlements (“Costs”), liabilities, and penalties paid in connection with a proceeding involving the Director because he or she is a director if the Director (i) acted in good faith, (ii) reasonably believed the conduct was in the Company’s best interests; (iii) had no reasonable cause to believe the conduct was unlawful (in a criminal proceeding); and, (iv) engaged in conduct for which the Director shall not be liable under MassMutual’s Charter or By-Laws.
MassMutual further agrees to indemnify a Director, to the extent permitted by law, against all Costs paid in connection with any proceeding (i) unless the Director breached a duty of loyalty, (ii) except for liability for acts or omissions not in good faith, involving intentional misconduct or a knowing violation of law, (iii) except for liability under Section 6.40 of Chapter 156D of Massachusetts Business Corporation Act (“MBCA”), or (iv) except for liability related to any transaction from which the Director derived an improper benefit. MassMutual will also indemnify a Director, to the fullest extent authorized by the MBCA, against all expenses to the extent the Director has been successful on the merits or in defense of any proceeding. If any court determines that despite an adjudication of liability to MassMutual or its subsidiary that the Director is entitled to indemnification, MassMutual will indemnify the Director to the extent permitted by law. Subject to the Director’s obligation to pay MassMutual in the event that the Director is not entitled to indemnification, MassMutual will pay the expenses of the Director prior to a final determination as to whether the Director is entitled to indemnification.
Item 31. Principal Underwriters
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(a) |
MML Investors Services, LLC (“MMLIS”) acts as principal underwriter of the contracts/policies/certificates sold by its registered representatives and MML Strategic Distributors, LLC (“MSD”) serves as principal underwriter of the contracts/policies/certificates sold by registered representatives of other broker-dealers who have entered into distribution agreements with MSD. MMLIS and MSD either jointly or individually act as principal underwriters for: Massachusetts Mutual Variable Life Separate Account I, Massachusetts Mutual Variable Annuity Separate Account 1, Massachusetts Mutual Variable Annuity Separate Account 2, Massachusetts Mutual Variable Annuity Separate Account 3, Massachusetts Mutual Variable Annuity Separate Account 4, Panorama Separate Account, Connecticut Mutual Variable Life Separate Account I, MML Bay State Variable Life Separate Account I, MML Bay State Variable Annuity Separate Account 1, Panorama Plus Separate Account, C.M. Multi-Account A, C.M. Life Variable Life Separate Account I, Massachusetts Mutual Variable Life Separate Account II. |
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(b) |
MMLIS and MSD are the principal underwriters for this Contract. The following people are officers and directors of MMLIS and officers and directors of MSD: |
DIRECTORS AND OFFICERS OF MML INVESTORS SERVICES, LLC
| Name | Positions and Offices | Principal Business Address |
| Vaughn Bowman | Director, Chairman of the Board, Chief Executive Officer, and President | * |
| John Vaccaro | Director and Chairman Emeritus | * |
| Geoffrey Craddock | Director |
10 Fan Pier Boulevard Boston, MA 02210 |
| Paul LaPiana | Director | * |
| Jennifer Reilly | Director |
10 Fan Pier Boulevard Boston, MA 02210 |
| Joseph Mallee | Director, Agency Field Force Supervisor and Vice President | * |
| David Mink | Vice President and Chief Operations Officer | * |
| Frank Rispoli | Chief Financial Officer and Treasurer |
10 Fan Pier Boulevard Boston, MA 02210 |
| Edward K. Duch, III | Chief Legal Officer, Vice President, and Secretary | * |
| Courtney Reid | Chief Compliance Officer | * |
| James P. Puhala | Deputy Chief Compliance Officer | * |
| Michael Gilliland | Deputy Chief Compliance Officer | * |
| Thomas Bauer | Chief Technology Officer | * |
| Anthony Frogameni | Chief Privacy Officer | * |
| Linda Bestepe | Vice President | * |
| Brian Foley | Vice President |
10 Fan Pier Boulevard Boston, MA 02210 |
| James Langham | Vice President | * |
| Michael Thomas | Vice President |
2 Park Ave New York, NY 10016 |
| Daken Vanderburg | Vice President | * |
| Mary B. Wilkinson | Vice President |
10 Fan Pier Boulevard Boston, MA 02210 |
| George Randall | Field Risk Officer | * |
| Alyssa O’Connor | Assistant Secretary | * |
| Pablo Cabrera | Assistant Treasurer |
10 Fan Pier Boulevard Boston, MA 02210 |
| Jeffrey Sajdak | Assistant Treasurer | * |
| Elizabeth Marin | Assistant Treasurer | * |
| Kevin Lacomb | Assistant Treasurer |
10 Fan Pier Boulevard Boston, MA 02210 |
| Tricia Cohen | Continuing Education Officer | * |
| Mario Morton | Registration Manager | * |
| Kelly Pirrotta | AML Compliance Officer | * |
| John Rogan | Regional Vice President | * |
| Sarah Hedges | Regional Vice President | * |
| David Smith | Regional Vice President | * |
| Tanya Wilber | Regional Vice President | * |
* 1295 State Street, Springfield, MA 01111-0001
DIRECTORS AND OFFICERS OF MML STRATEGIC DISTRIBUTORS, LLC
| Name | Positions and Offices | Principal Business Address |
| Dominic Blue | Director and Chairman of the Board | * |
| Matthew DiGangi | Director, Chief Executive Officer, and President | * |
| Geoffrey Craddock | Director |
10 Fan Pier Boulevard Boston, MA 02210 |
| Jennifer Reilly | Director |
10 Fan Pier Boulevard Boston, MA 02210 |
| Frank Rispoli | Chief Financial Officer and Treasurer |
10 Fan Pier Boulevard Boston, MA 02210 |
| Edward K. Duch, III | Chief Legal Officer, Vice President, and Secretary | * |
| James P. Puhala | Vice President and Chief Compliance Officer | * |
| Vincent Baggetta | Chief Risk Officer | * |
| Paul LaPiana | Vice President | * |
| Anna Sciortino | Vice President |
10 Fan Pier Boulevard Boston, MA 02210 |
| Alyssa O’Connor | Assistant Secretary | * |
| Pablo Cabrera | Assistant Treasurer |
10 Fan Pier Boulevard Boston, MA 02210 |
| Jeffrey Sajdak | Assistant Treasurer | * |
| Elizabeth Marin | Assistant Treasurer | * |
| Mario Morton | Registration Manager | * |
| Kelly Pirrotta | AML Compliance Officer | * |
| (*) | 1295 State Street, Springfield, MA 01111-0001 |
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(c) |
Compensation From the Registrant |
Item 32. Location of Accounts and Records
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All accounts, books, or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the rules promulgated thereunder are maintained by the Registered Separate Account through Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, Massachusetts 01111-0001. |
Item 33. Management Services
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Not Applicable. |
Item 34. Fee Representation
REPRESENTATION UNDER SECTION 26(f)(2)(A) OF
THE INVESTMENT COMPANY ACT OF 1940
Massachusetts Mutual Life Insurance Company hereby represents that the fees and charges deducted under the Panorama Premier contract described in this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by Massachusetts Mutual Life Insurance Company.
SIGNATURES
Pursuant to the requirements of Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Wilmington, and the State of North Carolina on this 24th day of April, 2026.
MASSACHUSETTS MUTUAL VARIABLE ANNUITY SEPARATE ACCOUNT 4
(Registered Separate Account)
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
(Insurance Company)
|
By |
ROGER W. CRANDALL * Roger W. CrandallPresident and Chief Executive Officer (principal executive officer) Massachusetts Mutual Life Insurance Company |
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
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Signature |
Title |
Date |
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ROGER W. CRANDALL * Roger W. Crandall
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Director and Chief Executive Officer |
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April 24, 2026 |
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MARY
JANE FORTIN * Mary Jane Fortin
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Chief Financial Officer |
April 24, 2026 |
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GREGORY GIARDIELLO * Gregory Giardiello
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Corporate Controller |
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April 24, 2026 |
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KATHLEEN A. CORBET * Kathleen A. Corbet
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Director |
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April 24, 2026 |
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JAMES H. DEGRAFFENREIDT, JR. * James H. DeGraffenreidt, Jr.
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Director |
April 24, 2026 |
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ISABELLA D. GOREN * Isabella D. Goren
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Director |
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April 24, 2026 |
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BERNARD A. HARRIS, JR. * Bernard A. Harris, Jr.
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Director |
April 24, 2026 |
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MICHELLE K. LEE * Michelle K. Lee
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Director |
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April 24, 2026 |
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JEFFREY M. LEIDEN * Jeffrey M. Leiden
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Director |
April 24, 2026 |
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DAVID H. LONG * David H. Long
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Director |
April 24, 2026 |
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MICAHEL
THOMAS ROLLINGS * Michael Thomas Rollings
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Director |
April 24, 2026 |
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LAURA J. SEN * Laura J. Sen
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Director |
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April 24, 2026 |
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AMY M. STEPNOWSKI * Amy M. Stepnowski |
Director |
April 24, 2026 | ||
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/s/ GARY F. MURTAGH * Gary F. MurtaghAttorney-in-Fact pursuant to Powers of Attorney |
INDEX TO EXHIBITS
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Item No. |
Exhibit |
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| Item 27. | Exhibit (l) | i. | Auditor Consents | ||||
| • | Company Financial Statements | ||||||
| • | Separate Account Financial Statements | ||||||
Item 27. Exhibit (l) i.
[KPMG letterhead appears here]
Consent of Independent Registered Public Accounting Firm
We consent to the use of our report dated February 26, 2026, with respect to the statutory financial statements of Massachusetts Mutual Life Insurance Company, incorporated herein by reference, and to the reference to our firm under the heading “Experts” in the Statement of Additional Information.
/s/ KPMG LLP
Hartford, Connecticut
April 20, 2026
[KPMG letterhead appears here]
Consent of Independent Registered Public Accounting Firm
We consent to the use of our report dated March 10, 2026, with respect to the financial statements of Massachusetts Mutual Variable Annuity Separate Account 4, incorporated herein by reference, and to the reference to our firm under the heading “Experts” in the Statement of Additional Information.
/s/ KPMG LLP
Boston, Massachusetts
April 20, 2026