File Nos. 333-185799
811-03859
811-03859
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
UNDER
THE SECURITIES ACT OF 1933
| |
Pre-Effective Amendment No. |
[ ] |
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Post-Effective Amendment No. 16 |
[X]
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and/or
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940
UNDER
THE INVESTMENT COMPANY ACT OF 1940
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Amendment No. 16 |
[X]
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Variable Separate Account
(Exact Name of Registered Separate Account)
American General Life Insurance Company
(Name of Insurance Company)
2727-A Allen Parkway, Houston, Texas 77019
(Address of Insurance Company’s Principal Executive Offices) (Zip
Code)
(800) 871-2000
(Insurance Company’s Telephone Number, including Area Code)
American Home Assurance Company
(Name of Guarantor)
1271 Avenue of the Americas, FL37, New York, NY 10020-1304
(Address of Guarantor’s Principal Executive Offices) (Zip Code)
(212) 770-7000
(Guarantor’s Telephone Number, including Area
Code)
Trina Sandoval, Esq.
American General Life Insurance Company
21650 Oxnard Street, Suite 750, Woodland Hills, California 91367
American General Life Insurance Company
21650 Oxnard Street, Suite 750, Woodland Hills, California 91367
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective:
☐ immediately upon filing pursuant to paragraph (b)
☒ on May
1,
2026 pursuant to paragraph (b)
☐ 60 days after filing pursuant to paragraph (a)(1)
☐ on (date) 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 Acton (date) pursuant to paragraph (a)(1) of Rule 485 under the Securities Act of 1933 (“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 flexible premium deferred variable annuity contracts.
Prospectus
May 1, 2026
Flexible Premium Deferred Variable Annuity Contract
issued by
American General Life Insurance
Company
in all states except New York
in connection with
VARIABLE SEPARATE ACCOUNT
This variable annuity has several investment choices - Variable Portfolios (which are subaccounts of the separate account) and
available Fixed Account options. Each Variable Portfolio invests exclusively in shares of one of the Underlying Funds listed in Appendix A to this prospectus. Please see APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT for additional information about the Variable Portfolios and the
Fixed Account options.
This contract is no longer available for purchase by new contract Owners.
This variable annuity provides an optional Payment Enhancement feature. If you elect this feature, in exchange for Payment Enhancements credited to your contract, your withdrawal charge schedule will be longer and greater than if you chose not to elect this feature. These withdrawal charges may more than offset the value of any Payment Enhancement.
Please read this prospectus carefully and keep it for future reference. It contains important information about the variable
annuity, including a description of all material features of the
contract.
The contract is not a short-term investment and is not appropriate for investors who plan or need to take withdrawals or surrender the contract during the first seven (or the first nine years for contracts with the Polaris Rewards Program) contract years due to application of Withdrawal Charges. Withdrawals could also result in taxes and tax penalties. The contract is a complex investment and involves risks, including potential loss of principal. You should speak with your financial representative about the contract's features, benefits, risks, and fees.
The Company's obligations under the contracts are subject to its financial strength and claims paying ability.
The Company's obligations under the contracts are subject to its financial strength and claims paying ability.
These securities have not been approved or disapproved by the SEC, nor any state securities commission, nor has the SEC passed
upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.
Additional information about certain investment products, including variable annuities, has been prepared by the SEC’s staff and is available at www.Investor.gov.
Inquiries: If you have questions about your contract, call your financial representative or contact us at Annuity Service Center, P.O. Box 15570, Amarillo, Texas 79105-5570. Telephone Number: (800) 445-7862 and website
(www.corebridgefinancial.com/annuities).
Please see ALLOCATION OF PURCHASE PAYMENTS in this prospectus for the address to which you must send Purchase Payments.
TABLE OF CONTENTS
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| G-1 |
2
Glossary
We have capitalized some of the technical terms used in this prospectus. To help you understand these terms, we have defined them in this glossary.
Accumulation Phase - The period during which you invest money in your contract.
Accumulation Units - A measurement we use to calculate the value of the variable portion of your contract during the
Accumulation Phase.
Annuitant - The person on whose life we base annuity income payments after you begin the Income Phase.
Annuity Date - The date you select on which annuity income payments begin.
Annuity Units - A measurement we use to calculate the amount of annuity income payments you receive from the
variable portion of your contract during the Income Phase.
Beneficiary - The person you designate to receive any benefits under the contract if you or, in the case of a
non-natural Owner, the Annuitant dies. If your contract is jointly owned, you and the
joint Owner are each other’s primary Beneficiary.
Company - Refers to American General Life Insurance Company (“AGL”), the insurer that issues the contract. The term “we,” “us” and “our” are also used to identify the
Company.
Continuation Contribution - An amount by which the death benefit that would have been paid to the spousal Beneficiary upon the death of the original Owner exceeds the contract value as of the Good Order date. We will
contribute this amount, if any, to the contract value upon spousal continuation.
Continuing Spouse - Spouse of original contract Owner at the time of death who elects to continue the contract after the death of the original contract
Owner.
Fixed Account - An account, if available, in which you may invest money and earn a fixed rate of return. Fixed
Accounts are obligations of the General Account.
General Account - The Company’s account, which includes any amounts you have allocated to available Fixed
Accounts, including any interest credited thereon, and amounts owed under your contract
for death benefits and/or Living Benefits which are in excess of portions of contract value allocated to the Variable Portfolios.
Good Order - Fully and accurately completed form(s) and/or instructions, including any necessary documentation, applicable to any given transaction or request
received by us.
Income Phase - The period upon annuitization during which we make annuity income payments to you.
Insurable Interest - Evidence that the Owner(s), Annuitant(s) or Beneficiary(ies) will suffer a financial loss at the death of the life that triggers
the death benefit. Generally, we consider an interest insurable if a familial relationship and/or an economic interest exists. A familial relationship generally includes those persons related
by blood or by law. An economic interest exists when the Owner has a lawful and
substantial economic interest in having the life, health or bodily safety of the
insured life preserved.
Latest Annuity Date - For contracts issued prior to January 1, 2001, the Latest Annuity Date is defined as the first NYSE business day of the month following your
90th birthday or 10 years after your contract issue date, whichever is later. For
contracts issued on or after January 1, 2001, your Latest Annuity Date is defined as
the first NYSE business day of the month following your 95th birthday or 10 years after your contract issue date, whichever is later.
Market Close - The close of the New York Stock Exchange on business days, excluding holidays, usually at 1:00 p.m. Pacific Time.
Non-Qualified (contract) - A contract purchased with after-tax dollars. In general, these contracts are not under any pension plan, specially sponsored program or
individual retirement account (“IRA”).
NYSE - New York Stock Exchange.
Owner - The person or entity (if a non-natural Owner) with an interest or title to this contract. The
term “you” or “your” are also used to identify the Owner.
Payment Enhancement(s) - The amount(s) allocated to your contract by us under the Polaris Rewards Program. Payment Enhancements are calculated as a percentage of your Purchase Payments and are considered
earnings.
Purchase Payments - The money you give us to buy and invest in the contract.
Purchase Payments Limit - $1,000,000.
Qualified (contract) - A contract purchased with pretax dollars. These contracts are generally purchased under a pension plan, specially sponsored program
or IRA.
Separate Account - A segregated asset account maintained by the Company separately from the Company’s General Account. The Separate Account consists of
Variable Portfolios or subaccounts, each investing in shares of the Underlying Funds.
Trusts - Collectively refers to the AIM Variable Insurance Funds (Invesco Variable Insurance Funds), American Fund Insurance Series®, Goldman Sachs Variable Insurance Trust, Lord Abbett Series Fund, Inc., Seasons Series Trust and SunAmerica Series Trust.
Underlying Funds - The underlying investment portfolios of the Trusts in which the Variable Portfolios invest.
Variable Portfolio(s) - The variable investment options available under the contract. Each Variable Portfolio, which is a subaccount of the Separate
Account, invests in shares of one of the Underlying Funds. Each Underlying Fund has its own investment objective.
3
OVERVIEW OF THE CONTRACT
Purpose of the Contract
The contract is designed to help you invest on a tax-deferred basis, meet long-term financial goals, and plan for your retirement. You can accumulate
assets by investing in the contract’s investment options and then later convert
those accumulated assets into a stream of guaranteed income payments from us. The
contract includes certain death benefit options that may help financially protect your
beneficiaries in the event of your death. An Optional Living Benefits may also be
available under the contract, which is designed to help you achieve your financial goals and protect against certain financial risks.
This contract may be appropriate for you if you have a long investment time horizon and the contract’s terms and conditions are consistent with your
financial goals. It is not intended for people whose liquidity needs require early or
frequent withdrawals or for people who intend to frequently trade in the
contract’s Variable Portfolios.
Phases of the Contract
Like all deferred annuities, the contract has two phases: (1) the Accumulation Phase (for savings)
and (2) the Income Phase (for income).
Accumulation Phase. During the Accumulation Phase, you invest the money under your contract in one or more available investment options to help you build assets on a tax-deferred basis. The available
investment options may include:
•
Variable Portfolios. When you invest in a Variable Portfolio, you are indirectly investing in the Variable Portfolio’s Underlying Fund. The Underlying Funds have different investment objectives, strategies, and risks. You can gain or lose money if you invest in a Variable
Portfolio.
Additional information about each Underlying Fund is provided in an appendix to this prospectus. Please see APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT.
Additional information about each Underlying Fund is provided in an appendix to this prospectus. Please see APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT.
•
Fixed Accounts. When you invest in a Fixed Account option, your principal is guaranteed and earns interest based on a rate set and guaranteed
by the Company. Additional information about each Fixed Account is provided in an appendix to this prospectus.
Please see APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT.
The amount of money you accumulate under your contract depends (in part) on the performance of the investment options you choose. You may transfer money
between investment options during the Accumulation Phase, subject to certain
restrictions and possible fees. Your accumulated
assets impact the value of your contract’s benefits during the Accumulation Phase, including
the death benefit and any optional Living Benefits, as well as the amount available for
withdrawal.
Income Phase. When you are ready to receive guaranteed income under the contract, you can switch to the Income
Phase, at which time you will start to receive annuity income payments from us. This is
also referred to as “annuitizing” your contract. You generally decide when to
annuitize your contract, although there are restrictions on the earliest and latest
times that your contract may be annuitized. If you do not annuitize or surrender your
contract before the latest annuitization date, your contract will be automatically
annuitized. Once your contract is annuitized, you will no longer be able to surrender,
take withdrawals of contract value and all other features and benefits of your
contract, including the death benefit, will terminate.
You can choose from the available annuity income
options, which may provide income for life, for an available period of time, or a
combination of both. You can also choose to receive payments on a variable or fixed basis, or some combination of both. If the payments are fixed, the dollar amount of each payment will not change.
If the payments are variable, the dollar amounts for the payments will
fluctuate.
There is no death benefit during the Income Phase. Annuity payments may be payable after death depending on the annuity income option that you selected. You
cannot take withdrawals of contract value or surrender the contract during the Income
Phase. If you own an optional Living Benefit at the time that you annuitize the contract, you may choose to take annuity income payments in accordance with that Living Benefit. Otherwise, your
optional Living Benefit terminates at the beginning of the Income Phase.
Contract Features
Accessing Your Money. You may withdraw money from your contract at any time during the Accumulation Phase. If you make a withdrawal, you may have to pay a withdrawal charge and/or income taxes, including a tax
penalty if you are younger than age 59½.
Withdrawals may negatively impact the value of your contract’s benefits, and may cause an optional Living Benefit to terminate.
Tax Treatment. You can transfer money between investment options without tax implications, and earnings (if any) on your investments are generally
tax-deferred. Earnings are not taxed until they are distributed, which may occur when
making a withdrawal, upon receiving an annuity payment, or upon payment of the death benefit.
Optional Living Benefit. You may have elected the optional Living Benefit under the contract for an additional fee. The
4
Living Benefit that
is available must be elected at the time that the contract is purchased. The Living Benefit is designed to provide limited protection from unfavorable investment performance during the
Accumulation Phase, and can also provide a guaranteed income stream that may last as
long as you live.
Death Benefits. If you die during the Accumulation Phase, the Company pays a death benefit to your beneficiary or beneficiaries. The contract includes the
Purchase Payment Accumulation Death Benefit and the Maximum Anniversary Value Death
Benefit at no additional charge. If you elected the optional EstatePlus death benefit for an additional fee, a greater amount may be payable upon death.
Additional Features and Services. Additional features and services under the contract are summarized below. There are no additional charges associated with these features and services unless otherwise noted. Not all
features and services may be available under your contract.
•
Dollar Cost Averaging (DCA) Fixed Accounts. If you invest in a DCA Fixed Account, interest is credited to amounts allocated to that DCA Fixed
Account and your money is systematically transferred from the DCA Fixed Account to one
or more investment options over a specified period of time. Automatic transfers do not
count towards the number of free transfers per contract year.
•
Dollar Cost Averaging (DCA) Program. The DCA program allows you to systematically transfer a specified dollar amount or percentage of
contract value from an investment option to one or more eligible investment options.
Automatic transfers do not count towards the number of free transfers per contract
year.
•
Automatic Asset Rebalancing Program. This program allows you to have your investments periodically rebalanced so that the resulting allocations are consistent with your current investment instructions. Automatic rebalances do not count towards the number of free transfers per
contract year.
•
Systematic Withdrawal Program. This program allows you to receive periodic withdrawals from your contract on a monthly, quarterly, semi-annual,
or annual basis.
•
Automatic Payment Plan. This program allows you to make automatic subsequent Purchase Payments, once you have contributed at least the minimum initial Purchase Payment.
•
The Return Plus Program. This program allows you to allocate your investment strategically between Fixed Accounts and Variable Portfolios for
no additional charge and is available if we are offering multi-year Fixed
Accounts.
•
Polaris Rewards Program. If you were age 80 or younger at the time your contract was issued you may have elected to participate in this program at contract issue. We contribute an upfront Payment
Enhancement and, if available, a deferred Payment Enhancement to your contract in
conjunction with each Purchase Payment you invest during the life of your contract. If
you elected to participate in this program, all Purchase Payments are subject to a nine
year withdrawal charge schedule.
5
Important Information You Should Consider About the Contract
| |
FEES AND EXPENSES |
Location in
Prospectus | ||
| Are There
Charges or
Adjustments for
Early
Withdrawals? |
Yes.
•For Contracts without Polaris Rewards. If you
withdraw money from your contract within 7 years
following each Purchase Payment, you may be assessed a withdrawal charge of up to 7%, as a percentage of each Purchase Payment withdrawn.
•For Contracts with Polaris Rewards. If you
withdraw money from your contract within 9 years
following your purchase of the contract or your last Purchase Payment, you may be assessed a withdrawal charge of up to 9%, as a percentage of each Purchase Payment
withdrawn.
For example, if you were to withdraw $100,000 during a withdrawal
charge period, you could be assessed a withdrawal charge
of up to $7,000 if your maximum withdrawal charge is 7%
or $9,000 if your maximum withdrawal charge is 9%. This loss will be greater if there are federal and state income taxes or tax-penalties.
Withdrawal charges do not apply to certain withdrawals including the
withdrawal up to the annual penalty-free withdrawal
amount which equals 10% of your Purchase Payments not
yet withdrawn. |
Expenses –
Withdrawal
Charges | ||
| Are There
Transaction
Charges? |
Yes, in addition to withdrawal charges, you may be charged for other transactions. You will
be charged for each transfer after 15 transfers in any contract year
during the Accumulation Phase. There may also be taxes
on Purchase Payments. |
Expenses | ||
| Are There
Ongoing Fees and
Expenses? |
Yes.
The table below describes the current fees and expenses of the
contract that you may pay each
year, depending on the investment options and optional benefits you choose. Please
refer to your contract specifications page for information about the
specific fees you will pay each year based on the
options you have elected. |
Expenses | ||
| Annual Fee |
Minimum |
Maximum | ||
| Base Contract1 |
1.54% |
1.54% | ||
| Investment Options2
(Underlying Fund fees and expenses) |
0.46% |
1.33% | ||
| Optional Benefits Available for an
Additional Charge
(For a single optional benefit, if elected) |
0.25%3 |
0.30%4 | ||
| 1 As a percentage of the value in the Separate Account (includes a percentage attributable
to the contract maintenance fee).
2 As a percentage of Underlying Fund net assets. 3 As a percentage of the average
daily ending net asset value allocated to the Variable
Portfolios.
4 As a percentage of the Income Benefit Base used to calculate the guaranteed benefit. This
represents the maximum charge for the most expensive optional
benefit. Because your contract is customizable, the
choices you make affect how much you will pay. To help
you understand the cost of owning your contract, 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 contract, which could add withdrawal
charges that substantially increase costs. |
||||
| Lowest Annual Cost: $1,757 |
Highest Annual Cost: $2,602 | |||
| Assumes:
•Investment of $100,000 •5% annual appreciation
•Least expensive Underlying Fund fees and expenses •No optional benefits
•No withdrawal charges •No additional Purchase Payments,
transfers, or withdrawals |
Assumes:
•Investment of $100,000 •5% annual appreciation
•Most expensive combination of optional benefits and Underlying Fund fees and expenses •No withdrawal charges
•No additional Purchase Payments, transfers, or withdrawals | |||
6
| |
RISKS |
Location in
Prospectus | ||
| Is There a Risk of
Loss from Poor
Performance? |
Yes. You can lose money by investing in this contract, including possible loss of your
principal investment. |
Principal Risks of Investing in the Contract | ||
| Is this a
Short-Term
Investment? |
No.
•This contract is not designed for short-term investing and may not be appropriate for an
investor who needs ready access to cash. As such, you should not use
the contract as a short-term investment or savings
vehicle. •Charges may apply to withdrawals. Withdrawal charges could significantly reduce the
value of your investment or the amount that you receive upon taking a
withdrawal. Withdrawals may also reduce or terminate
contract guarantees and may also be subject to state and
federal income taxes and tax-penalties. •The benefits of tax deferral, long-term income, and optional Living Benefit guarantees
mean that this contract is generally more beneficial to investors with
a long investment time horizon. | |||
| What are the
Risks Associated
with the
Investment
Options? |
•An investment in this contract is subject to the risk of poor investment performance and
can vary depending on the performance of the investment options
available under the contract.
•Each investment option (including each Fixed Account option) has its own unique risks.
•You should review the available investment options before making an investment decision. | |||
| What are the
Risks Related to
the Insurance
Company? |
An investment in the contract is subject to the risks related to us,
American General Life Insurance Company. Any obligations
(including under a Fixed Account option), guarantees,
and benefits of the contract are subject to our claims-paying ability.
An Owner should look solely to our financial strength
for our claims-paying ability. More information about the
Company, including our financial strength ratings, may be obtained at
https://investors.corebridgefinancial.com/financials/Ratings/default.aspx
. | |||
7
| |
RESTRICTIONS |
Location in
Prospectus | ||
| Are There Limits
on the Investment
Options? |
Yes.
Transfer Restrictions.
•During the Accumulation Phase, you must transfer at least $100 per transfer between any
of the Variable Portfolios and/or any available Fixed Accounts. If
less than $100 remains in any Variable Portfolio or
Fixed Account after a transfer, that amount must be
transferred as well. Funds already in your contract cannot be
transferred to the DCA Fixed Account, if available. A
transfer request will be priced as of the day it is received before Market Close. If the transfer request is received after Market Close, the request
will be priced as of the next NYSE business day.
•During the Income Phase, only one transfer per month is permitted between the Variable
Portfolios. No other transfers are allowed during the Income Phase.
Transfers will be effected for the last NYSE business
day of the month in which we receive your request for
the transfer. You may not use the DCA Program or the Automatic Asset
Rebalancing Program during the Income
Phase. •Your transfers between the Variable Portfolios are subject to policies designed to deter
frequent and short-term trading.
Investment Restrictions. If you elect an optional Living Benefit, not all investment options may be available and you must invest in accordance with the applicable investment
requirements. You may be required to invest a certain percentage of
your contract value in a certain investment option,
including the Secure Value Account which is only available
with certain option Living Benefits. We reserve the right to modify
the investment requirements in the future. If you do not
elect any optional benefit, or if the only optional
benefit you elect is a death benefit, your contract is not subject to
investment requirements.
Availability of Variable Portfolios. We may, subject to any applicable law, make certain changes to the Variable Portfolios offered in your contract. We may offer new Variable
Portfolios or stop offering existing Variable Portfolios. New Variable
Portfolios may be made available to existing contract
Owners, and Variable Portfolios may be closed to new or
subsequent Purchase Payments, transfers or allocations. In addition, we may also liquidate the shares of any Variable Portfolio, substitute the shares of one Underlying
Fund held by a Variable Portfolio for another and/or merge Variable
Portfolios or cooperate in a merger of Underlying Funds.
To the extent required by the Investment Company Act of
1940, as amended, we may be required to obtain SEC approval or your approval. |
Investment
Options | ||
| Are There Any
Restrictions on
Contract Benefits? |
Yes.
•There are restrictions and limitations relating to the benefits offered under the contract
(e.g., death benefits, Living Benefits, DCA Fixed Account, DCA
Program, Automatic Asset Rebalancing Program, Systematic
Withdrawal Program, Automatic Payment Plan).
•We reserve the right to modify or terminate the DCA Program, Automatic Asset
Rebalancing Program, Systematic Withdrawal Program, and Automatic
Payment Plan. •Withdrawals that exceed limits specified by the terms of a benefit may reduce the value of
the benefit by an amount greater than the value withdrawn and could
terminate the benefit. |
Optional Living
Benefit Death Benefits | ||
| |
TAXES |
| ||
| What are the
Contract’s Tax
Implications? |
•You should consult with a tax professional to determine the tax implications of an
investment in and payments received under the contract.
•If you purchase the contract through a tax-qualified plan or individual retirement account
(IRA), there is no additional tax benefit under the
contract. •Earnings under your contract are taxed at ordinary income tax rates when withdrawn.
You may have to pay a tax penalty if you take a withdrawal before age
59½. |
Taxes | ||
8
| |
CONFLICTS OF INTEREST |
Location in
Prospectus | ||
| How Are
Investment
Professionals
Compensated? |
Your financial representative may receive compensation for selling
this contract to you in the form of commissions,
additional cash compensation, and/or non-cash compensation. We may share the revenue we earn on this contract with your financial representative’s firm.
Revenue sharing arrangements and commissions may provide selling firms
and/or their registered representatives with an
incentive to favor sales of our contracts over other
variable annuity contracts (or other investments) with respect to
which a selling firm does not receive the same level of
additional compensation. You should ask your financial
representative about how they are compensated. |
Payments in Connection with Distribution of the Contract | ||
| Should I
Exchange My
Contract? |
Some financial representatives may have a financial incentive to offer
you a new contract in place of the one you already own.
You should exchange a contract you already own only if
you determine, after comparing the features, fees, and risks of both
contracts, that it is better for you to purchase the new
contract rather than continue to own your existing
contract. | |||
9
Fee Table
The following tables describe the fees and expenses that
you will pay when buying, owning, and surrendering or making withdrawals from an investment option or from the contract. Please refer to your
contract data page 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 pay at the time you surrender the contract, make withdrawals from an investment option or from the contract, or make transfers
between investment options. State premium taxes may also be deducted.
Contract Owner Transaction
Expenses
| Maximum Withdrawal Charges
(as a percentage of each purchase Payment)1 |
9% |
| Transfer Fee
(per transfer after the first 15 transfers in any
contract year) |
$25 |
The following tables describe the fees and expenses you will pay each year during the time that you own the contract, not
including Underlying Fund fees and expenses. If you chose to purchase an optional benefit, you will pay additional charges, as shown below.
Contract Owner Annual Expenses
| Contract Maintenance Fee2 |
$35 |
| Base Contract Expense3 (deducted from the average daily ending net asset value allocated to the Variable Portfolios) |
1.52% |
Optional Death Benefit Fee
| Optional EstatePlus Fee4 (deducted from the average daily ending net asset value allocated to the Variable Portfolios) |
0.25% |
Optional Living Benefits Fee
| Income Protector Plus Fee5 (calculated as percentage of the Income Base) |
0.15% |
| Income Protector Max Fee5 (calculated as percentage of the Income Base) |
0.30% |
Annual Underlying Fund Expenses
The following shows the minimum and maximum total operating expenses charged by the Underlying Funds
of the Trusts, before any waivers or reimbursements, that you may pay periodically
during the time that you own the contract. Expenses shown may change over time and may be higher or lower in the future. These amounts also include applicable fees and expenses if you choose to
invest in certain Underlying Funds. A complete list of Underlying Funds available under the contract, including their annual expenses, may be found in Appendix A.
| |
Minimum |
Maximum |
| Expenses deducted from
Underlying Fund assets,
including management fees,
distribution and/or service
(12b-1) fees, if applicable,
and other expenses. |
0.46%
|
1.33% |
Footnotes to the Fee Table:
1 Withdrawal Charge Schedule (as a percentage of each Purchase
Payment withdrawn) declines over 7 or 9 years depending on whether you elected Polaris Rewards, as follows:
| Years Since Receipt: |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10+ |
| Without Polaris Rewards |
7% |
6% |
5% |
4% |
3% |
2% |
1% |
0% |
0% |
0% |
| With Polaris Rewards |
9% |
9% |
8% |
7% |
6% |
5% |
4% |
3% |
2% |
0% |
Your contract provides for a penalty-free withdrawal amount each year. Please see
PENALTY-FREE WITHDRAWAL AMOUNT below.
2 The contract maintenance fee is assessed annually and may be waived if contract value is $50,000 or more.
3 If your Beneficiary elects to take the death benefit amount under the Extended Legacy Program, we will deduct an annual Base Contract Expense of 1.15% which is deducted daily from the average daily ending net asset value allocated to the Variable Portfolios. Please see Extended Legacy Program under DEATH BENEFITS
below.
4 EstatePlus is an optional earnings enhancement death benefit. This feature is not available on contracts issued in Washington.
5 Income Protector is optional guaranteed minimum income benefit. The fee is deducted annually from your contract value. For a complete description of how
the fee is calculated, please see OPTIONAL LIVING BENEFITS below.
10
Examples
These examples are intended to help you compare the cost of
investing in the Variable Portfolios with the cost of
investing in other annuity contracts that offer variable options. These costs include transaction
expenses, annual contract expenses, and annual Underlying Fund expenses.
These examples assume all contract value is allocated to Variable Portfolios. Your costs could differ from those shown below if you invest in the Fixed Account options.
The expense examples below assume that you invest
$100,000 in the Variable Portfolios for the time
periods indicated; your investment has a 5% return each year; and you incur the maximum or minimum fees and expenses of the Underlying Funds as indicated in the examples.
The Maximum Expense Examples
reflect the most expensive possible combination of charges (including additional charges for optional benefits). Although your actual costs may be
higher or lower, based on these assumptions, your costs at the end of the stated period would be the amounts set forth in the tables
below.
Maximum Expense Examples
(assuming annual contract expenses of 1.77% with Polaris Rewards (including EstatePlus) and investment in an Underlying Fund with total expenses of
1.33%*)
(1)
If you surrender your contract at the end of the applicable time period:
| 1 year |
3 years |
5 years |
10 years |
| $11,960 |
$17,409 |
$22,106 |
$33,993 |
(2)
If you annuitize your contract at the end of the applicable time
period:
| 1 year |
3 years |
5 years |
10 years |
| $2,960 |
$9,409 |
$16,106 |
$33,993 |
(3)
If you do not surrender your contract at the end of the
applicable time period:
| 1 year |
3 years |
5 years |
10 years |
| $2,960 |
$9,409 |
$16,106 |
$33,993 |
Minimum Expense Examples
(assuming annual contract expenses of 1.52%, no election of optional features and investment in an Underlying Fund with total expenses of 0.46%**)
(1)
If you surrender your contract at the end of the applicable time period:
| 1 year |
3 years |
5 years |
10 years |
| $8,980 |
$11,185 |
$13,647 |
$23,038 |
(2)
If you annuitize your contract at the end of the applicable time
period:
| 1 year |
3 years |
5 years |
10 years |
| $1,980 |
$6,185 |
$10,647 |
$23,038 |
(3)
If you do not surrender your contract at the end of the
applicable time period:
| 1 year |
3 years |
5 years |
10 years |
| $1,980 |
$6,185 |
$10,647 |
$23,038 |
Additional Expense Example Information
1.
In addition to the stated assumptions, the Expense Examples also assume that no transfer fees were imposed. Although premium taxes may apply in certain states,
they are not reflected in the Expense Examples.
2.
Expense Examples with election of the Polaris Rewards program reflect the Polaris Rewards withdrawal charge schedule, but do not reflect any upfront Payment Enhancement.
3.
If you elected the Income Protector Plus or Income Protector Max feature between November 2, 1998 and March 31, 1999, please see the Income Protector program below
for details regarding the fee applicable to the feature.
*
The 1-year Maximum Expense Example reflects the SunAmerica Series Trust 0.17% fee
waiver.
**
The 1 year Minimum Expense Example reflects the Goldman Sachs Variable Insurance Trust 0.03% fee waiver.
These examples should not be considered a representation of past or future expenses. Actual expenses may be
greater or less than those shown.
11
Principal Risks Of Investing In The Contract
Market Risk. Variable annuities involve risks, including possible loss of principal. An investment in the Variable Portfolios available under the contract is subject to the risk of negative investment performance.
You can lose money by investing in this contract, including loss of principal and/or
prior earnings. Your losses could be significant. This contract is not a deposit or obligation of, or guaranteed or endorsed by, any bank. This contract is
not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve
Board, or any other agency.
Short-Term Investment Risk. This contract is not
designed for short-term investing and may not be appropriate for an investor who needs
ready access to cash. The benefits of tax deferral, long-term income, and Living
Benefit protections mean that this contract is more beneficial to
investors with a long investment time horizon.
Early Withdrawal Risk. This contract is not designed for short-term investing and may not be appropriate for an investor who needs ready access to
cash. You should carefully consider the risks associated with withdrawals under the contract. Withdrawals may be subject to significant withdrawal charges. If you make a withdrawal prior to age 59½, there may be adverse tax consequences, including a 10% IRS penalty tax. A
withdrawal may reduce the value of your standard and optional benefits. For instance, a
withdrawal will reduce the value of the death benefit. In addition, a withdrawal could reduce the value of an optional Living Benefit by an amount greater than the amount withdrawn and could result in termination of the benefit. A total withdrawal (surrender) will
result in the termination of your contract. We may defer payment of withdrawals from a Fixed Account option (including the Secure Value Account) for up to six months
when permitted by law. If you make a withdrawal within the first 9 years, you may be assessed a Withdrawal Charge of up to 9% as a percentage of the payment amount
withdrawn.
Variable Portfolio
Risk. Amounts that you invest in the Variable Portfolios are subject to the risk of
poor investment performance. You assume the investment risk. You can gain or lose money
if you invest in these Variable Portfolios. Each Variable Portfolio’s performance depends on the performance of its Underlying Fund. Each Underlying Fund has its own investment risks, and you are
exposed to the Underlying Fund’s investment risks when you invest in a Variable
Portfolio. You are responsible for allocating Purchase Payments to the Variable Portfolios that are appropriate for you based on your own individual circumstances, investment goals, financial
situation, and risk tolerance. You bear the risk of any decline in contract value
resulting from the performance of the Variable Portfolio you have selected. In making
your investment selections, you should investigate all information available to you including the Underlying Fund’s prospectus, statement of additional information and annual and
semi-annual reports. We do not
provide investment advice, nor do we recommend or endorse any particular Underlying
Fund.
Availability of Variable
Portfolios Risk. We may, subject to any applicable law, make certain changes to the
Variable Portfolios offered in your contract. We may offer new Variable Portfolios or
stop offering existing Variable Portfolios.
Variable Portfolios may be closed to new or subsequent Purchase Payments, transfers, or allocations. In addition, we may also liquidate shares of one
Underlying Fund held by a Variable Portfolio for another and/or merge Variable
Portfolios or cooperate in a merger of Underlying Funds. New Variable Portfolios may
have different performance characteristics. There is no guarantee that a particular
Variable Portfolio will always be available as an investment option under the
contract.
Selection Risk.
The optional benefits under the contract were designed for different financial goals
and to protect against different financial risks. There is a risk that you may not
choose, or may not have chosen, the benefit or benefits (if any) that are best suited for you based on your present or future needs and circumstances, and the benefits that are more suited for you (if any)
may no longer be available. In addition, if you elected an optional benefit and do not
use it, or if the contingencies upon which the benefit depend never occur, you will have paid for a benefit that you may not use or benefit from.
Managed Volatility Fund Risk. Certain Underlying Funds, including some Underlying Funds that are available under certain optional Living Benefits’ investment requirements, utilize managed volatility strategies. These risk management techniques help us manage our
financial risks associated with the contract’s guarantees, like living and death
benefits, because they reduce the incidence of extreme outcomes including the probability of large gains or losses. However, these strategies can also limit your participation in rising equity markets, which
may limit the potential growth of your contract value and the potential growth of your
guaranteed benefits.
Purchase
Payment Risk. Your ability to make subsequent Purchase Payments is subject to certain
restrictions. We reserve the right to refuse any Purchase Payment(s), limit the amount
of subsequent Purchase Payment(s) with advance notice based on age as shown below and
election of optional benefit(s), and may require our prior approval before accepting Purchase Payments greater than the Purchase Payments Limit as defined in the
Glossary. There is no guarantee that you will always be permitted to make Purchase
Payments.
Minimum Contract Value
Risk. Where permitted by state law, we may terminate your contract if your contract
value is less than $2,500 as a result of withdrawals and/or fees and charges. We will provide you with 60 days written
12
notice that your
contract is being terminated. At the end of the notice period, we will distribute the contract’s remaining value to you.
Financial Strength and Claims-Paying Ability Risk. All guarantees under the contract that are paid from our general account (including under any Fixed Account option) are subject to our financial strength and claims-paying ability.
Business Disruption. Our business is vulnerable to disruptions from natural and man-made disasters and catastrophes, such as, but not limited
to, hurricanes, windstorms, flooding, earthquakes, wildfires, solar storms, war or other military action, acts of
terrorism, explosions and fires, pandemics (such as COVID-19) and other highly contagious diseases, mass torts, failure of telecommunications or other critical infrastructure and other catastrophes. A natural or man-made
disaster or catastrophe may negatively affect the computer and other systems on which
we rely, including service outages or other unavailability, may interfere with our ability to receive, pickup and process mail, to calculate Accumulation Unit Values (“AUVs”), process other
contract-related transactions, or to otherwise provide our services, or may have other possible negative impacts. While we have developed and put in place what we believe to be
appropriate business continuity and disaster recovery plans and procedures to mitigate
operational risks and potential losses related to business disruptions resulting from natural and man-made disasters and catastrophes, there can be no assurance that we, our agents, the
Underlying Funds or our service providers will be able to successfully avoid negative
impacts resulting from such disasters and catastrophes.
Cybersecurity Risk. We rely heavily on interconnected computer systems and digital data to conduct our variable product business activities. Because our variable product business is highly dependent upon the
effective operation of our computer systems and those of our business partners and
service providers, our business is vulnerable to physical disruptions and utility outages, and susceptible to operational and information security risks resulting from information systems failure (e.g.,
hardware and software malfunctions), cyber-attacks, and user errors or
other disruptions that may compromise the confidentiality, integrity, or availability of such systems and data. These risks include, among other things, the theft, misuse, corruption, disclosure and destruction of
sensitive business data, including personal information, maintained on our or our
business partners’ or service providers’ systems, interference with our
websites (such as via denial of service attacks), other operational disruptions, and unauthorized
release of confidential customer information. Such systems failures, cyber-attacks, or other
disruptions affecting us, any third-party administrator, the Underlying Funds, intermediaries and other affiliated or third-party service providers, as well as our distribution
partners, may adversely affect us and your contract value. For instance,
systems
failures and cyber-attacks may interfere with our processing of contract transactions, including the processing of orders from our website, our distribution partners, or with the Underlying Funds, impact our
ability to calculate AUVs, cause the release and possible destruction of confidential
customer or business information, including personal information, impede order processing, or subject us and/or
our service providers, distribution partners and other intermediaries to regulatory
fines and enforcement action, litigation risks and financial losses and/or cause reputational damage.
Cybersecurity risks may also impact the issuers of securities in which the Underlying Funds invest, which may cause the affected Underlying Funds to
lose value. There may be an increased risk of cyber-attacks during periods of
geo-political or military conflict. Further, the widespread development, implementation, and use of AI, machine learning, data analytics and similar tools that
collect, aggregate and analyze data or inputs (collectively,
“AI Tools”) may increase our exposure to, or exacerbate the risks of, cyber-attacks or other security incidents, particularly where such technologies are
exploited by third parties to attempt to breach our or our business partners’ and
service providers’ systems. Despite our implementation of policies and
procedures, which we believe to be reasonable, that address physical, administrative and
technical safeguards and controls and other preventative actions to protect our systems
and sensitive business and customer information, including personal information, and reduce the risk of cyber-incidents, there can be no assurance that we or our distribution partners, the Underlying Funds or our business partners and service providers will avoid cyber-attacks or information security breaches in the future that may affect your contract and/or personal information.
Purchasing A PolarisII Variable Annuity
When you purchase a variable annuity, a contract exists between you and the Company. You are the
Owner of the contract.
Maximum Issue Age
We will not issue a contract to anyone age 86 or older on the contract issue date.
Note: In general, we will not issue a Qualified contract to anyone who is age 72 or older, unless it is shown that the minimum distribution required by the IRS is being made. Please see TAXES.
Joint Ownership
A Non-Qualified contract may be jointly owned by a spouse or non-spouse. Joint owners possess an equal and undivided interest in the contract. The age of the
older Owner is used to determine the availability of most age driven benefits.
The addition of a joint Owner after the contract has been issued is contingent upon prior review and
approval by the Company.
13
We will not issue a
Qualified contract with joint owners, in accordance with tax law.
Spouse
Your spouse (as determined for federal tax law purposes) may jointly own the contract. In certain
states, domestic or civil union partners (“Domestic Partners”) qualify for
treatment as, or are equal to, spouses under state law.
Non-Spouse
Domestic Partners should consult with their tax adviser and/or financial representative as, they may not be able to fully benefit from certain benefits and features of the contract such as the optional Living Benefit, if applicable Spousal Continuation of the death benefit.
Please see APPENDIX D — STATE CONTRACT AVAILABILITY AND/OR VARIABILITY for a list
of states that require that benefits and features be made to domestic or civil union partners.
Non-Natural Ownership
A trust, corporation or other non-natural entity may only own this contract if such entity has
sufficiently demonstrated an Insurable Interest in the Annuitant selected.
At its sole discretion, the Company reserves the right to decline to issue this contract to certain
entities. We apply various considerations including but not limited to:
•
Estate planning,
•
Tax consequences, and
•
The propriety of this contract as an investment consistent with a non-natural Owner’s organizational documentation.
For more information on non-natural ownership, please see TAXES. You should consult with your tax and/or legal advisor in connection with non-natural ownership of this contract.
Assignment of the Contract/Change of Ownership
You may assign this contract before beginning the Income Phase. We will not be bound by any assignment until we receive and process your written request at
our Annuity Service Center and you have received confirmation.
•
Your rights and those of any other person with rights under this contract will be subject to the
assignment.
•
We are not responsible for the validity, tax or other legal consequences of any assignment.
•
An assignment will not affect any payments we may make or actions we may take before we receive notice of the assignment.
We reserve the right not to recognize any assignment, as
determined in our sole discretion, if it changes the risk
profile of the
contract owner, if no Insurable Interest exists, or if not permitted by the Internal Revenue Code.
Please see TAXES for details on the tax consequences of an
assignment. You should consult a qualified tax adviser before assigning the
contract.
Termination of the Contract for Misstatement and/or Fraud
The Company reserves the right to terminate the contract at any time if it discovers a misstatement
or fraudulent representation of any information provided in connection with the
issuance or ongoing administration of the contract.
If we learn of a misstatement of age, we reserve the right to
fully pursue our remedies including revocation of any age-driven benefits and/or termination of the contract. Please see APPENDIX D — STATE CONTRACT AVAILABILITY AND/OR VARIABILITY for
specific information.
Allocation of Purchase Payments
In order to issue your contract, we must receive your
initial Purchase Payment and all required paperwork in Good Order, including Purchase
Payment allocation instructions.
An initial Purchase Payment is the money you give us to purchase
a contract. Any additional money you give us to invest in the contract after purchase is a subsequent Purchase Payment.
Minimum Initial and Subsequent Purchase Payments
| |
Minimum
Initial
Purchase
Payment |
Minimum
Subsequent
Purchase
Payment |
Minimum
Automatic
Subsequent
Purchase
Payment |
| Qualified(1) |
$2,000
|
$250
|
$100
|
| Non-Qualified(1) |
$5,000
|
$500
|
$100 |
(1)
These amounts depend upon whether a contract is Qualified or Non-Qualified for tax purposes. For further explanation, please see TAXES.
Purchase
Payment Restrictions
We reserve the right to refuse any Purchase Payment. We will not accept subsequent Purchase Payments
from contract Owners age 86 or older.
We reserve the right to require Company approval prior to accepting Purchase Payments greater than the Purchase Payments Limit as defined in the
Glossary.
•
For contracts owned by a non-natural Owner, we reserve the right to require prior Company approval to accept any Purchase Payment.
•
Purchase Payments that would cause total Purchase Payments in all contracts issued by AGL,
The United States Life Insurance Company ("US Life") and/or The Variable Annuity Life Insurance
14
Company ("VALIC") to the same Owner and/or Annuitant to exceed the Purchase Payments Limit may also be subject to Company pre-approval.
Submission of Purchase Payments
Purchase Payments will be priced when received at the Annuity Service Center. Delivery of Purchase Payments to
any other address may result in a delay in crediting your contract until the Purchase Payment is received at the Annuity Service Center.
Regular Mail:
Purchase Payments sent by regular mail must be sent to the Premium Processing Center at the following address:
| American General Life Insurance Company Premium Processing Center P.O. Box 100330 Pasadena, CA 91189-0330 |
Express Delivery:
Purchase Payments sent by overnight or express delivery must be sent to the Premium Processing Center at the following address:
| American General Life Insurance Company JPM Chase-AGL 100330 Premium Processing Center
2710 Media Center Drive
Building #6, Suite 120
Los Angeles, CA 90065-1750 |
Receipt of Purchase Payments:
Purchase Payments will be picked up at the mailing addresses noted above and forwarded to our
Annuity Service Center. Purchase Payments, however, are not considered received by us
until received at our Annuity Service Center in Good Order.
We allocate your Purchase Payment to your contract as of
the date such Purchase Payment is priced. Initial Purchase Payments received at the
Annuity Service Center in Good Order before Market Close will be priced within two NYSE
business days after it is received. Initial Purchase Payments received at the Annuity
Service Center in Good Order after Market Close will be priced within two NYSE business days after the next NYSE business day.
If we do not have complete information necessary to issue your contract, we will contact you. If we do not receive the necessary information within five NYSE
business days, we will obtain your permission to keep your money until we get the
information necessary to issue the contract, or we will send your money back to whomever we received the funds.
Any subsequent Purchase Payment will be priced as of the day it is received by the Annuity Service
Center in Good
Order before Market Close. If the subsequent Purchase Payment is received at the Annuity Service
Center in Good Order after Market Close, it will be priced as of the next NYSE business
day.
We invest your subsequent Purchase Payments in the Variable Portfolios and available Fixed Accounts
according to any allocation instructions that accompany the subsequent Purchase
Payment. If we receive a Purchase Payment without allocation instructions, we will invest the Purchase Payment according to your allocation instructions on file.
Electronic Transmission:
We will accept initial and subsequent Purchase Payments by electronic transmission from certain broker-dealer firms.
Agent of Company:
We may have an agreement in place whereby your broker-dealer may be deemed our agent for receipt of your Purchase Payments. If a broker-dealer is deemed to be our agent, Purchase Payments will be priced as of the time they are received by the broker-dealer.
You assume any risk in market fluctuations if you submit your Purchase
Payment directly to a broker-dealer that does not have such an agreement, should there be a delay in that broker-dealer delivering your Purchase Payment to us. Please check with your financial representative to determine if his/her broker-dealer has an agreement with the Company that deems the broker-dealer an agent of
the Company.
Automatic Payment Plan:
Once you have contributed at least the minimum initial Purchase Payment, you can establish an Automatic Payment Plan that allows you to make subsequent Purchase Payments.
Polaris Rewards Program
If you were age 80 or younger at the time your contract was issued you may have elected to participate in this program at contract issue. We contribute an
upfront Payment Enhancement and, if available, a deferred Payment Enhancement to your
contract in conjunction with each Purchase Payment you invest during the life of your
contract. If you elected to participate in this program, all Purchase Payments are
subject to a nine year withdrawal charge schedule. Please see EXPENSES
below. These withdrawal charges may offset the value of any Payment Enhancement, if you make an early withdrawal. Amounts we contribute to your contract under this
program are considered earnings and are allocated to your contract as described below.
There may be scenarios in which due to negative market conditions and your inability to remain invested over the long-term, a contract with the Polaris Rewards program may not perform as well as the contract without the program.
15
Purchase Payments
may not be invested in dollar cost averaging Fixed Accounts if you participate in the
Polaris Rewards program. However, you may use other Fixed Account options, if available, for dollar cost averaging.
Please see DOLLAR COST AVERAGING PROGRAM below.
Polaris Rewards Enhancement Levels
Each enhancement level is a range of dollar amounts, which may correspond to different enhancement
rates and dates. The enhancement level applicable to your initial Purchase Payment is
determined by the amount of that initial Purchase Payment. With respect to any subsequent Purchase Payments we determine your enhancement level by adding your contract value on the date we receive
each subsequent Purchase Payment to the amount of the subsequent Purchase Payment.
Enhancement levels may change from time to time, at our sole discretion.
Upfront Payment Enhancement
An upfront Payment Enhancement is an amount we add to
your contract on the day we receive a Purchase Payment. We calculate an upfront Payment
Enhancement amount as a percentage of each Purchase Payment. We refer to this
percentage amount as the upfront Payment Enhancement Rate. We periodically review and
establish the upfront Payment Enhancement Rate, which may increase or decrease at any
time, but will never be less than 2%. The applicable upfront Payment Enhancement Rate is the rate in effect for the applicable enhancement level at the time we receive each Purchase Payment under your
contract. The upfront Payment Enhancement amounts are allocated among Variable
Portfolios and available Fixed Accounts according to the current allocation instructions on file when we receive each Purchase Payment.
Deferred Payment Enhancement
A deferred Payment Enhancement is an amount we may add to your contract on a stated future date (the “deferred Payment Enhancement date”).
We calculate a deferred Payment Enhancement amount, if applicable, as a percentage of
each Purchase Payments received at the time we receive the Purchase Payment. We refer to this percentage amount as the deferred Payment Enhancement Rate. We periodically review and establish the
deferred Payment Enhancement Rates and deferred Payment Enhancement dates. The deferred
Payment Enhancement Rate being offered may increase, decrease or be eliminated by us at
any time. The deferred Payment Enhancement date, if applicable, may change at any time. The applicable deferred Payment Enhancement date and deferred Payment Enhancement Rate are those which may be in
effect for the applicable enhancement level at the time when we receive each Purchase
Payment. Any applicable deferred Payment Enhancement, when credited, is allocated to a money market or similar portfolio.
If you withdraw any
portion of a Purchase Payment, to which a deferred Payment Enhancement applies, prior to the deferred Payment Enhancement date, we reduce the amount of the corresponding deferred Payment
Enhancement in the same proportion that your withdrawal (and any fees and charges
associated with such withdrawals) reduces that Purchase Payment. For purposes of determining the deferred Payment Enhancement, withdrawals are assumed to be taken from earnings first, then from Purchase
Payments, on a first-in-first-out basis.
We will not allocate any applicable deferred Payment Enhancement, if any, to your contract if the following circumstances occur prior to the deferred
Payment Enhancement date:
•
You surrender your contract;
•
A death benefit is paid on your contract;
•
You switch to the Income Phase of your contract; or
•
You fully withdraw the corresponding Purchase Payment.
90 Day Window
As of the 90th day after your contract was issued, we will total your Purchase Payments made over those 90 days, without considering any investment gain or
loss in contract value on those Purchase Payments. If your total Purchase Payments
bring you to an enhancement level which, as of the date we issued your contract, would have provided for a higher upfront and/or deferred Payment Enhancement rate on each Purchase Payment, you will get the
benefit of the enhancement rate(s) that were applicable to that higher enhancement
level at the time your contract was issued (“Look Back Adjustment”). We will add any applicable upfront Look Back Adjustment to your contract on the 90th day following the date of contract issue.
We will send you a confirmation indicating any applicable upfront and/or deferred Look
Back Adjustment, on or about the 90th day following the date of contract issuance. We will allocate any applicable upfront Look Back Adjustment according to your then current allocation instructions on
file for subsequent Purchase Payments at the time we make the contribution and if
applicable, to a money market or similar portfolio, for a deferred Look Back Adjustment.
16
Current
Enhancement Levels
The Enhancement Levels, Upfront Payment Enhancement Rate, Deferred Payment Enhancement Rate and
Deferred Payment Enhancement date applicable to all Purchase Payments as of the date of
this prospectus are:
| Enhancement Level |
Upfront
Payment
Enhancement
Rate |
Deferred
Payment
Enhancement
Rate |
Deferred
Payment
Enhancement
Date |
| Under $40,000 |
2% |
0% |
N/A |
| $40,000 – $99,999 |
4% |
0% |
N/A |
| $100,000 – $499,999 |
4% |
1% |
Nine years
from the
date we
receive each
Purchase
Payment. |
| $500,000 – more |
5% |
1% |
Nine years from the date we receive each Purchase Payment. |
The Polaris Rewards
program may not be available in your state or through the broker-dealer with which your financial representative is affiliated. Please check with your financial representative regarding the
availability of this program.
We reserve the right to
modify, suspend or terminate the Polaris Rewards program at any time for existing
contracts and for subsequent Purchase Payments.
Accumulation Units
We credit your contract with Accumulation Units when you allocate a Purchase Payment to the Variable
Portfolios. We determine the value of each Accumulation Unit at the close of every NYSE
business day. The value of an Accumulation Unit goes up and down based on the performance of the Variable Portfolios and the fees and expenses under your contract.
The number of Accumulation Units you are credited is calculated the day we process your Purchase
Payment. Please see ALLOCATION OF PURCHASE
PAYMENTS.
The Accumulation Unit value is determined by multiplying the Accumulation Unit value for the
preceding NYSE business day by a factor for the current NYSE business day.
The factor is determined by:
1.
dividing the net asset value per share of the Underlying Fund at the end of the current NYSE business day, plus any dividend or capital gains per
share declared on behalf of the Underlying Fund as of that day, by the net asset value
per share of the Underlying Fund for the previous NYSE business day; and
2.
multiplying it by one minus all applicable daily asset based charges.
We determine the
number of Accumulation Units credited to your contract by adding the Purchase Payment and Payment Enhancement, if applicable, and dividing that amount, by the Accumulation Unit value for the
specific Variable Portfolio.
Example (Contracts Without Polaris Rewards):
We receive a $25,000 Purchase Payment from you on Wednesday. You allocate the money to Variable Portfolio A. We determine that the value of an Accumulation Unit for Variable Portfolio A is $11.10 at Market Close on Wednesday. We then divide
$25,000 by $11.10 and credit your contract on Wednesday night with 2,252.2523
Accumulation Units for Variable Portfolio A.
Example (Contracts With Polaris Rewards):
We receive a $25,000 Purchase Payment from you on Wednesday. You allocate the money to Variable Portfolio A. If the Payment Enhancement is 2% of your
Purchase Payment, we would add a Payment Enhancement of $500 to your contract. We
determine that the value of an Accumulation Unit for Variable Portfolio A is $11.10 at
Market Close on Wednesday. We then divide $25,500 by $11.10 and credit your contract on
Wednesday with 2,297.2973 Accumulation Units for Variable Portfolio
A.
Performance of the Variable Portfolios and the insurance charges under your contract affect
Accumulation Unit values. These factors cause the value of your contract to go up and
down.
Free
Look
You may cancel your contract within ten days after receiving it. Your state may require a longer
free look period. We call this a “free look.” Please check your contract or
with your financial representative. To cancel, you must mail the contract along with your written free look request to our Annuity Service Center at P.O. Box 15570, Amarillo, Texas 79105-5570.
If you decide to cancel your contract during the free look period, generally we will refund to you
the value of your contract on the day we receive your request in Good Order at the
Annuity Service Center minus the Free Look Payment Enhancement Deduction, if applicable. If you elect the Polaris Rewards feature, the Free Look Payment Enhancement Deduction is equal to the lesser of (1) the value of any Payment Enhancement(s) on the
day we receive your free look request; or (2) the Payment Enhancement amount(s), if
any, which we allocated to your contract. Thus, you receive any gain and we bear any loss
on any Payment Enhancement(s) if you decide to cancel your contract during the free
look period. Certain states require us to return your Purchase Payments upon a free
17
look request.
Additionally, all contracts issued as an IRA require the full return of Purchase Payments upon a free look.
If your contract was issued either in a state requiring return of Purchase Payments or as an IRA, and you cancel your contract during the free look period, we
return the greater of (1) your Purchase Payments; or (2) the value of your contract on
the day we receive your request in Good Order at the Annuity Service Center. With respect to these contracts, we reserve the right to put your money and the Payment Enhancement, if you elected the
Polaris Rewards feature, in a money market or similar portfolio during the free look period and will allocate your
money and the Payment Enhancement according to your instructions at the end of the
applicable free look period.
Exchange Offers
From time to time, we allow you to exchange an older variable annuity issued by the Company or one of its affiliates, for a newer product with different
features and benefits issued by the Company or one of its affiliates. Such an exchange
offer will be made in accordance with applicable federal securities laws and state insurance rules and regulations. We will provide the specific terms and conditions of any such exchange offer at the
time the offer is made.
Investment Options
You may allocate purchase payments using one or a combination of the investment options and Fixed
Accounts, as may be available under your contract:
•
Variable Portfolios
•
Fixed Accounts
•
Dollar Cost Averaging Fixed Account
Variable Portfolios
The Variable Portfolios available under the contract invest in
the Underlying Funds of the Trusts. Contract value allocated to a Variable Portfolio will vary based on the investment experience of the corresponding Underlying
Fund in which the Variable Portfolio invests. There is a risk of loss of the entire amount invested.
Information regarding each Underlying Fund, including (i) its
name, (ii) its type, (iii) its investment advisor and any sub-investment advisor, (iv) current expenses, and (v) performance is available in an appendix to this
prospectus. See APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT.
Each Underlying Fund has issued a prospectus that contains more
detailed information about the Underlying Fund. Read these prospectuses carefully before investing. Paper or electronic copies of the Underlying
Fund prospectuses may be obtained by
calling (855) 421-2692 or visiting our website at
www.corebridgefinancial.com/ProductProspectuses.
You may also obtain information about the Underlying Funds by
accessing the U.S. Securities and Exchange Commission’s website at www.sec.gov.
All Variable Portfolios may not be available through the
broker-dealer with which your financial
representative is affiliated.
Such portfolios are identified in APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT. Please check with your financial representative for availability.
From time to time, certain Variable Portfolio names are changed. When we are notified of a name change, we will make changes so that the new name is
properly shown. However, until we complete the changes, we may provide you with various
forms, reports and confirmations that reflect a Variable Portfolio’s prior name.
Certain Underlying Funds offered under this contract have similar investment objectives to other
Underlying Funds managed by the same advisor or subadvisor. The investment results of
the Underlying Funds, however, may be higher or lower than such other Underlying Funds. We do not guarantee or make any representation that the investment results of any of the Underlying Funds will
be comparable to the investment results of any other Underlying Fund managed by the
same advisor or subadvisor.
During periods of low short-term interest rates, and in part due to contract fees and expenses, the
investment return of a money market or similar portfolio may become extremely low and
possibly negative. In the case of negative returns, your investment in a money market or similar portfolio will lose value.
| You can gain or lose money if you invest in these Variable Portfolios. You are responsible for allocating Purchase Payments to the Variable Portfolios as appropriate for your own individual circumstances, investment goals, financial situation and risk tolerance. You should periodically review your allocations and values to ensure they continue to suit your needs. You bear the risk of any decline in contract value resulting from the performance of the Variable Portfolio you have selected. In making your investment selections, you should investigate all information available to you including the Underlying Fund’s prospectus, statement of additional information and annual and semi-annual reports. |
| We do not provide investment advice, nor do we
recommend or endorse any particular Underlying Fund. |
Please consult your financial representative regarding which of these Variable Portfolios are appropriate for your risk
tolerance.
18
You should read the prospectuses for the Trusts carefully for detailed information about the Underlying Funds,
including each Underlying Fund’s investment objective and risk factors.
Selection of Underlying Funds
The Underlying Funds offered through this contract are selected by us and we may consider various factors in the selection process, including but not
limited to: asset class coverage, the strength of the investment advisor’s or
subadvisor’s reputation and tenure, brand recognition, the alignment of the
investment objectives of an Underlying Fund with our hedging strategy, performance and the capability and qualification of each investment firm.
Another factor we may consider is whether the Underlying Fund or its service providers (i.e. the investment advisor and/or subadvisor(s)) or their affiliates
will make payments to us or our affiliates in connection with certain administrative,
marketing and support services, or whether the Underlying Fund’s service providers have affiliates that can provide marketing and distribution support for sales of the contract. Please see PAYMENTS IN CONNECTION WITH DISTRIBUTION OF THE
CONTRACT below.
We review the Underlying Funds periodically and may make changes if we determine that an Underlying
Fund no longer satisfies one or more of the selection criteria and/or if the Underlying
Fund has not attracted significant allocations from contract
Owners.
Fund-of-Funds
Certain Underlying Funds invest substantially all their assets in other Underlying Funds. These arrangements are referred to as Fund-of-Funds, as described
below. Expenses for a Fund-of-Funds may be higher than that for other funds because a
Fund-of-Funds bears its own expenses and indirectly bears its proportionate share of expenses of the Underlying Funds. As a result, you will pay higher fees and expenses under the Fund-of-Funds
structure than if you invested directly in each of the Underlying Funds held in the
Fund-of-Funds structure. This will reduce your investment return.
Trusts
We offer Underlying Funds of unaffiliated Trusts. The Trusts serve as the underlying investment vehicles for other variable annuity contracts issued by the Company as well as by other insurance companies.
Neither the Company nor the Trusts believe that offering shares of the Trusts in this manner
disadvantages you. The Trusts are monitored for potential conflicts. The Trusts may
have other Underlying Funds, in addition to those listed here, that are not available
for investment under this contract.
We offer Underlying Funds of the following Trusts:
•
AIM Variable Insurance Funds (Invesco Variable Insurance Funds) – Series II
Shares
•
American Funds Insurance Series® – Class 2 Shares
•
Goldman Sachs Variable Insurance Trust – Class Service Shares
•
Lord Abbett Series Fund, Inc. – Class VC Shares
•
Seasons Series Trust — Class 3 Shares
•
SunAmerica Series Trust – Class 1 Shares
Substitution, Addition or Deletion of
Variable Portfolios
We may, subject to any applicable law, make certain
changes to the Variable Portfolios offered in your contract. We may offer new Variable
Portfolios or stop offering existing Variable Portfolios. New Variable Portfolios may be
made available to existing contract Owners, and Variable Portfolios may be closed to
new or subsequent Purchase Payments, transfers or allocations. In addition, we may also
liquidate the shares of any Variable Portfolio, substitute the shares of one Underlying
Fund held by a Variable Portfolio for another and/or merge Variable Portfolios or cooperate in a merger of Underlying Funds. To the extent required by the Investment Company Act of 1940, as
amended, we may be required to obtain SEC approval or your approval.
Fixed Accounts
Fixed Accounts credit a fixed rate of interest that compounds daily for a specific period of time to
an annual interest rate that we declare for that for that period of time. More
information regarding the features of the Fixed Accounts including (i) its name, (ii) its term, and (iii) its minimum guaranteed interest rates, is available in an appendix to this prospectus. See APPENDIX A - INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT.
Your contract may offer a Fixed Account for a guaranteed period. Your Fixed Account interest crediting rates are guaranteed for amounts allocated to each
Fixed Account for up to 1 year. Thereafter, for Fixed Accounts other than Dollar Cost
Averaging Fixed Account options (as described below), we will declare annual Fixed Account crediting rates each contract year, and this rate will never be lower than 1%. Factors that influence the declared Fixed Account renewal rate include, but are not limited to,
the level of US treasury rates, credit spreads on corporate bonds and other fixed
income instruments, company asset-liability matching strategies, the length of the contract withdrawal charge period and the number of years since your annuity contract was issued. You may obtain current
interest rates by calling the Annuity Service Center or by speaking with your financial
representative.
Please check with your financial representative regarding the availability of a Fixed Account. Allocations to the Fixed Account are obligations of the General
Account. In reliance on certain exemptions and exclusions, interests in the General Account are not registered as
securities under the Securities Act of 1933 and not registered as an investment
19
company under the
Investment Company Act of 1940. However, the disclosures in the prospectus about the Fixed Accounts are subject to certain provisions of the federal securities laws regarding the accuracy and
completeness of disclosures. Please see GENERAL ACCOUNT below.
Minimum Guaranteed Interest Rate
We guarantee that the interest rate credited to amounts allocated to any Fixed Account guarantee periods will never be less than the guaranteed minimum
interest rate specified in your contract. Once the rate is established, it will not
change for the duration of the guarantee period. The minimum guaranteed interest rate
can vary but is never lower than 1%. We determine which, if any, guarantee periods will
be offered at any time in our sole discretion, unless state law requires us to do otherwise.
Interest Rate Categories
There are three categories of interest rates for money allocated to the Fixed Accounts. The
applicable rate is guaranteed until the corresponding guarantee period expires. With
each category of interest rate, your money may be credited a different rate as follows:
•
Initial Rate: The rate credited to any portion of the initial Purchase Payment allocated to a Fixed Account.
•
Current Rate: The rate credited to any portion of a subsequent Purchase Payment allocated to a Fixed Account.
•
Renewal Rate: The rate credited to money transferred from a Fixed Account or a Variable Portfolio into a Fixed Account and to money remaining in a Fixed Account after expiration of a guarantee period.
Fixed Account Restrictions
At any time we are crediting the minimum guaranteed interest rate specified in your contract, we reserve the right to restrict your ability to invest
into the Fixed Accounts. All Fixed Accounts may not be available in your state. Please
check with your financial representative regarding the availability of Fixed Accounts.
If your contract offered Fixed Accounts subject to a market value adjustment, please see APPENDIX B – MARKET VALUE ADJUSTMENT (“MVA”) in this prospectus for additional information.
Dollar Cost Averaging Fixed Accounts
Purchase Payments
You may invest initial and/or subsequent Purchase Payments in the dollar cost averaging
(“DCA”) Fixed
Accounts, if available. The minimum Purchase Payment amounts are as follows:
| DCA Fixed Account |
Minimum Purchase Payment |
| 6-Month |
$600 |
| 12-Month |
$1,200 |
•
The DCA Fixed Accounts only accept initial and subsequent Purchase Payments because they are offered as “source” accounts exclusively
to facilitate the DCA Program for a specified time period.
•
You may not make a transfer from a Variable Portfolio or available Fixed Account into a DCA Fixed Account. Please see DOLLAR COST AVERAGING PROGRAM below for more information.
•
Unless otherwise directed by you, any Purchase Payment less than the above minimum amounts will
automatically be allocated to available investment options according to your current
allocation instructions on file.
Purchase Payments may not be invested in DCA Fixed Accounts if you elect the Polaris Rewards program.
DCA Interest Rate Crediting
DCA Fixed Accounts credit a fixed rate of interest and can only be elected to facilitate a DCA Program. Interest is credited to amounts allocated to the DCA
Fixed Accounts while your money is transferred to available investment options over
certain specified time frames. The interest rates applicable to the DCA Fixed Accounts may differ from those applicable to any other Fixed Account but will never be less than the minimum guaranteed interest
rate specified in your contract. The minimum guaranteed interest rate can vary but is
never lower than 1%. However, when using a DCA Fixed Account, the annual interest rate is paid on a declining balance as you systematically transfer your money to available investment options.
Therefore, the actual effective yield will be less than the stated annual crediting
rate. We reserve the right to change the availability of DCA Fixed Accounts offered,
unless state law requires us to do otherwise.
Transfers/Withdrawals from Fixed Accounts Other
than the Secure Value Account
This section applies to transfers and withdrawals from Fixed Accounts other than the Secure Value Account. Except for the Secure Value Account, there are no restrictions with respect to transferring out of or taking a withdrawal from a Fixed Account. If you make a transfer out of or a withdrawal from a Fixed Account prior to the end
of a guarantee period, you will be credited the interest earned up to the time of
transfer or withdrawal. When a guarantee period ends, you may leave your money in the same Fixed Account or you may reallocate your money to another Fixed Account, if available, or to the Variable
Portfolios. If you do not want to leave your money in the same Fixed Account,
20
you must
contact us within 30 days after the end of the guarantee period and provide us with new allocation instructions. We do not contact you. If you do not contact us, your money will remain in the same Fixed Account where it will
earn interest at the renewal rate then in effect for that Fixed Account.
We reserve the right to defer payments for a withdrawal from a Fixed Account for up to six
months.
If available through our Dollar Cost Averaging Program, you may systematically transfer interest earned in available Fixed Accounts into any of the Variable
Portfolios on a monthly basis. Systematic transfers may be started, changed or
terminated at any time by contacting our Annuity Service Center.
Check with your financial representative about the current availability of this service.
Transfers/Withdrawal from the Secure Value Account
This section applies to transfers and withdrawals from
the Secure Value Account only. If you elect a Living Benefit, a certain percentage of
your investment is automatically allocated to the Secure Value Account. Amounts allocated to the Secure Value Account may not be transferred to any Variable Portfolio or another Fixed Account.
You may not transfer into or out of the Secure Value Account. You may not request the
entire amount of any withdrawal to be deducted solely from the Secure Value Account. Rather, any withdrawal reduces the amount invested in the Secure Value Account in the same proportion that the
withdrawal reduces your contract value. On the date the Living Benefit is canceled,
amounts allocated to the Secure Value Account will be automatically transfers to a 1-year Fixed Account, if available. If the 1-Year Fixed Account is not available, amounts will be transferred to a money
market or similar portfolio. From the day following the automated transfer from the
Secure Value Account, you may transfer this amount to another available investment option under the contract during a period of 90 days. We do not contact you. If you do not contact us, your money will remain in the same
investment option to which the automated transfer occurred.
Dollar Cost Averaging Program
Under the DCA Program, you systematically transfer a specified dollar amount or percentage of
contract value from a Variable Portfolio, available Fixed Account or DCA Fixed Account
(“source account”) to any available investment options (“target account”).
The DCA Program allows you to invest gradually in available investment options at no additional
cost. The DCA Program is designed to lessen the impact of market fluctuations on your
investment. However, the DCA Program can neither guarantee a profit nor protect your
investment against a loss. When you elect the DCA Program, you are continuously
investing in securities
fluctuating at different price levels. You should consider your tolerance for investing through
periods of fluctuating price levels.
Example of DCA Program
Assume that you want to move $750 each month from one Variable Portfolio to another Variable
Portfolio over six months. You set up a DCA Program and purchase Accumulation Units at
the following values:
| Month |
Accumulation Unit Value |
Units Purchased |
|
1 |
$7.50 |
100 |
|
2 |
$5.00 |
150 |
|
3 |
$10.00 |
75 |
|
4 |
$7.50 |
100 |
|
5 |
$5.00 |
150 |
| 6 |
$7.50 |
100 |
You paid an average price of only $6.67 per Accumulation Unit over six months, while the average market price actually was $7.08. By investing an equal
amount of money each month, you automatically buy more Accumulation Units when the
market price is low and fewer Accumulation Units when the market price is high. This example is for illustrative purposes only.
DCA Program Guidelines
•
Fixed Accounts are not available as target accounts for the DCA Program.
•
Transfers occur on a monthly periodic schedule.
•
The minimum transfer amount under the DCA Program is $100 per transaction, regardless of the source account.
•
Transfers resulting from your participation in the DCA Program are not counted towards the number
of free transfers per contract year.
Allocation of Subsequent Purchase Payments to DCA Program
If you choose to allocate subsequent Purchase Payments to
an active DCA Program with an available Fixed Account serving as the source account,
the rate applicable to that Fixed Account at the time we receive the subsequent
Purchase Payment will apply. Further, we will begin transferring subsequent Purchase
Payments into your target account allocations on the same day of the month as the
initial active DCA Program. Therefore, you may not receive a full 30 days of interest
prior to the first transfer to the target account(s). Please see
DOLLAR COST AVERAGING FIXED ACCOUNTS above for more information.
Termination of DCA Program
You may terminate the DCA Program at any time. If you terminate the DCA Program and money remains in
the DCA
21
Fixed Account(s),
we transfer the remaining money according to your current allocation instructions on file.
Upon notification of your death, we will terminate the DCA Program and transfer the remaining money
according to the current allocation instructions on file.
Automatic Asset Rebalancing Program
Market fluctuations may cause the percentage of your investment in the Variable Portfolios to differ
from your original allocations. Automatic Asset Rebalancing typically involves shifting
portions of your money into and out of investment options so that the resulting allocations are consistent with your current investment instructions.
Under the Automatic Asset Rebalancing Program:
•
You may elect to have your investments in the Variable Portfolios and/or Fixed Accounts, if available, periodically rebalanced to return your
allocations to preselected percentages for no additional charge.
•
At your request, rebalancing occurs on a quarterly, semiannual or annual basis.
•
Transfers resulting from your participation in this program are not counted against the number of
free transfers per contract year.
Changes to
Rebalancing Instructions
If you make a transfer, you must provide updated rebalancing
instructions. If you do not provide new rebalancing instructions at the time you make such transfer, we will change your ongoing rebalancing instructions to reflect the percentage allocations among the
new Variable Portfolios and/or Fixed Accounts, if available, resulting from your
transfer which will replace any previous rebalancing instructions you may have provided (“Default Rebalancing Instructions”). You may change any applicable Default Rebalancing Instructions at
any time by contacting the Annuity Service Center. If we cannot complete automatic
rebalancing according to your current instructions due to Variable Portfolio changes, we reserve the right to allocate the applicable amounts that would have been transferred to the impacted Variable
Portfolio(s) to a money market option available under the contract.
Upon notification of your death, we will terminate the
Automatic Asset Rebalancing Program.
We reserve the right to modify, suspend or terminate the Automatic Asset Rebalancing Program at any time and we will
notify you 30 days prior to exercising that right. In the event of modification, we will administer the program according to the parameters of the modification. In
the event of suspension or termination of the program, we will no longer administer the program and your investments will no longer be
rebalanced.
Return Plus Program
The Return Plus program, available only if we are offering multi-year Fixed Accounts and available
for no additional charge, allocates your investment strategically between the Fixed
Accounts and Variable Portfolios. You decide how much you want to invest and approximately when you want a return of Purchase Payments. We calculate how much of your Purchase Payment to allocate to the
particular Fixed Account to ensure that it grows to an amount equal to your total
Purchase Payment invested under this program. We invest the rest of your Purchase Payment in the Variable Portfolio(s) according to your allocation instructions.
Example of Return Plus Program:
Assume that you want to allocate a portion of your initial Purchase Payment of $100,000 to a
multi-year Fixed Account. You want the amount allocated to the multi-year Fixed Account
to grow to $100,000 in 3 years. If the 3-year Fixed Account is offering a 4% interest
rate, Return Plus will allocate $88,900 to the 3-year Fixed Account to ensure that this amount will grow to $100,000 at the end of the 3-year period. The remaining $11,100 may be allocated among the
Variable Portfolios according to your allocation instructions.
We reserve the right to modify, suspend
or terminate the Return Plus program at any time.
Transfers During the Accumulation Phase
Subject to the Company’s rules, restrictions and policies (including short term trading
policies) described below, you may transfer funds between the Variable Portfolios and/or
any available Fixed Accounts.
•
Funds already in your contract cannot be transferred into the DCA Fixed Accounts, if available.
•
You must transfer at least $100 per transfer.
•
If less than $100 remains in any Variable Portfolio or Fixed Account after a transfer, that amount must be transferred as well.
Submitting Transfer Instructions
Your transfer instructions must be received via one of the methods and locations referenced below;
otherwise they will not be considered received by us. Please see
SHORT-TERM TRADING POLICIES below for more
information.
22
| Telephone: (800) 445-7862 |
| Internet:
www.corebridgefinancial.com/annuities |
| United States Postal Service (first-class mail): Annuity Service Center P.O. Box 15570
Amarillo, Texas 79105-5570 |
| Facsimile:
(818) 615-1543 |
Telephone/Internet Authorization
We may accept transfers by telephone or the internet unless you tell us not to on your contract
application. When receiving instructions over the telephone or the internet, we have
procedures to provide reasonable assurance that the transactions executed are genuine. Thus, we are not responsible for any claim, loss or expense from any error resulting from instructions received over
the telephone or the internet. If we fail to follow our procedures, we may be liable
for any losses due to unauthorized or fraudulent instructions.
Transfer Fees
There is no charge for your first 15 transfers in any contract year. We charge for transfers in excess of 15 in any contract
year. The fee is $25 for each transfer exceeding this limit. Transfers resulting from your participation in the DCA or Automatic Asset Rebalancing Programs are not counted towards the number
of free transfers per contract year.
Please see APPENDIX D - STATE CONTRACT AVAILABILITY AND/OR VARIABILITY for state-specific fees.
Accepting Transfer Requests
We cannot guarantee that we will be able to accept telephone, fax and/or internet transfer instructions at all times. Any telephone, fax or computer
system, whether it is yours, your broker-dealer’s, or ours, can experience outages
or delays for a variety of reasons and may prevent our processing of your transfer
request. If telephone, fax and/or internet access is unavailable, you must make your transfer request in writing by U.S. Mail to our Annuity Service Center at the address above.
We reserve the right to modify, suspend or terminate telephone,
fax and/or internet transfer privileges at any time and we will notify you prior to exercising the right of suspension.
Pricing Transfer Requests
Any transfer request will be priced as of the day it is received by us in Good Order if the request
is received
before Market Close. If the transfer request is received after Market Close, the request will be
priced as of the next NYSE business day.
Short-Term Trading Policies
This variable annuity contract is not designed to
support frequent trading or trading strategies that seek to benefit from short-term
price fluctuations or price inefficiencies in the Variable Portfolios of this product (“Short-Term Trading”) and we discourage Short-Term Trading as more fully described below.
Risks of Short-Term Trading
Short-Term Trading may create risks that may result in adverse effects on the investment return of the Underlying Fund in which a Variable Portfolio
invests. Such risks may include, but are not limited to: (1) interference with the
management and planned investment strategies of an Underlying Fund; (2) dilution of the
interests in the Underlying Fund due to practices such as “arbitrage”;
and/or (3) increased brokerage and administrative costs due to forced and unplanned
fund turnover. These circumstances may reduce the value of the Variable Portfolio. In
addition to negatively impacting the Owner, a reduction in contract value may also be harmful to Annuitants and/or Beneficiaries.
We have adopted the following administrative procedures to discourage Short-Term Trading which are summarized below.
Standard U.S. Mail Policy
Under the Standard U.S. Mail Policy, all transfers must be submitted by U.S. Mail for 12-months. The
15th transfer in a 12-month look-back period (“12-Month Rolling Period”)
triggers the Standard U.S. Mail Policy.
Transfer Requests under the U.S. Mail Policy
•
While the U.S. Mail Policy is in effect, we will not accept transfer requests sent by any other method except U.S. Mail.
•
Transfer requests required to be submitted by U.S. Mail can only be cancelled by a written request sent by U.S. Mail with the appropriate
paperwork received prior to the execution of the transfer.
•
All transfers made on the same day prior to Market Close are considered one transfer request for purposes of applying the Short-Term Trading policy and calculating the number of free
transfers.
•
Transfers resulting from your participation in the DCA or Automatic Asset Rebalancing Programs are not included for the purposes of determining the
number of transfers before applying the Standard U.S. Mail Policy.
23
•
We apply the Standard U.S. Mail Policy uniformly and consistently to all contract Owners except for
omnibus group contracts. See Omnibus Group Contracts below for more information.
Example
For example, if you made a transfer on August 21, 2026 and within the previous twelve months (from August 22, 2025 forward) you made 15 transfers including the August 21st transfer, then all transfers made for
twelve months after August 21, 2026 must be submitted by U.S. Mail (from August 22, 2026 through August 21, 2027).
Accelerated U.S. Mail Policy
We may become aware of transfer patterns among the Variable Portfolios and/or Fixed Accounts which appear to be Short-Term Trading or otherwise detrimental to the Variable Portfolios but have not yet triggered
the Standard U.S. Mail Policy described above. If such transfer activity comes to our
attention, we may require you to adhere to our Standard U.S. Mail Policy prior to reaching the specified number of transfers.
Additional Short-Term Trading Restrictions
To the extent we become aware of Short-Term Trading activities which cannot be reasonably controlled
solely by the Standard U.S. Mail Policy or the Accelerated U.S. Mail Policy, we reserve
the right to evaluate, in our sole discretion, whether to:
1.
impose further limits on the size, manner, number and/or frequency of transfers you can make;
2.
impose minimum holding periods;
3.
reject any Purchase Payment or transfer request;
4.
terminate your transfer privileges; and/or
5.
request that you surrender your contract.
We will notify you in writing if your transfer privileges are modified, suspended or terminated. In addition, we reserve the right not to accept or otherwise restrict transfers from a third party acting for you
and not to accept pre-authorized transfer forms.
Enforcement Determination Factors
Some of the factors we may consider when determining whether to accelerate the Standard U.S. Mail
Policy, reject transfers or impose other conditions on transfer privileges
include:
•
the number of transfers made in a defined period;
•
the dollar amount of the transfer;
•
the total assets of the Variable Portfolio involved in the transfer and/or transfer requests that represent a significant portion of the total assets of
the Variable Portfolio;
•
the investment objectives and/or asset classes of the particular Variable Portfolio involved in your transfers;
•
whether the transfer appears to be part of a pattern of transfers to take advantage of short-term market fluctuations or market inefficiencies;
•
the history of transfer activity in the contract or in other contracts we may offer; and/or
•
other activity, as determined by us, that creates an appearance, real or perceived, of Short-Term
Trading or the possibility of Short-Term Trading.
Applicability to Third Party Trading Services
The Standard and Accelerated U.S. Mail Policies are applied uniformly and consistently to contract
Owners utilizing third party trading services/strategies performing asset allocation
services for a number of contract Owners at the same time. You should be aware that
such third party trading services may engage in transfer activities that can also be
detrimental to the Variable Portfolios, including trading relatively large groups of
contracts simultaneously. These transfer activities may not be intended to take advantage of short-term price fluctuations or price inefficiencies. However, such activities can create the same
or similar risks as Short-Term Trading and negatively impact the Variable Portfolios as
described above.
Deterrence Limitations
Notwithstanding the administrative procedures above, there are limitations on the effectiveness of these procedures. Our ability to detect and/or deter
Short-Term Trading is limited by operational systems and technological limitations, as well as our ability to predict strategies employed by contract Owners (or those acting on their behalf)
to avoid detection. We cannot guarantee that we will detect and/or deter all Short-Term
Trading and it is likely that some level of Short-Term Trading will occur before it is detected and steps are taken to deter it. To the extent that we are unable to detect and/or deter Short-Term
Trading, the Variable Portfolios may be negatively impacted as described above.
Additionally, the Variable Portfolios may be harmed by transfer activity related to other insurance
companies and/or retirement plans or other investors that invest in shares of the
Underlying Fund. Moreover, our ability to deter Short-Term Trading may be limited by decisions by state regulatory bodies and court orders which we cannot predict.
You should be aware that the design of our administrative procedures involves inherently subjective decisions which we attempt to make in a fair and
reasonable manner consistent with the interests of all Owners of this contract. We do not
enter into agreements with contract Owners whereby we permit or intentionally disregard
Short-Term Trading.
24
Omnibus
Group Contracts
Omnibus group contracts may invest in the same Underlying Funds available in your contract but on an
aggregate, not individual basis. Thus, we have limited ability to detect Short-Term
Trading in omnibus group contracts and the Standard U.S. Mail Policy does not apply to these contracts. Our inability to detect Short-Term Trading may negatively impact the Variable Portfolios as
described above.
We reserve the right to modify the policies and procedures
described in the TRANSFERS DURING THE ACCUMULATION PHASE section at any time. To the extent that we exercise this reservation of rights, we will do so uniformly and consistently unless we disclose otherwise.
Underlying Funds’ Short-Term Trading Policies
Please note that the Underlying Funds have their own policies and procedures (outlined in their respective prospectus) with respect to frequent purchases
and redemptions of their respective shares which may be more or less restrictive than
ours.
•
We reserve the right to enforce these Underlying Fund policies and procedures, including, but not limited to, the right to collect a redemption fee
on shares of the Underlying Fund if imposed by such Underlying Fund’s Board of
Trustees/Directors. As of the date of this prospectus, none of the Underlying Funds
impose a redemption fee.
•
We also reserve the right to reject, with or without prior notice, any purchase, transfer or allocation into a Variable Portfolio if the corresponding
Underlying Fund will not accept such purchase, transfer or allocation for any
reason.
We are obligated to execute instructions from the Underlying Funds to restrict or prohibit further purchases or transfers in an Underlying Fund under
certain circumstances.
Processing Omnibus Orders
Many investments in the Underlying Funds outside of these contracts are omnibus orders from
intermediaries such as other separate accounts or retirement plans. If an Underlying
Fund’s policies and procedures fail to successfully detect and discourage Short-Term Trading, there may be a negative impact to the Owners of the Underlying Fund. If an Underlying Fund believes
that an omnibus order we submit may reflect transfer requests from Owners engaged in
Short-Term Trading, the Underlying Fund may reject the entire omnibus order and delay or
prevent us from implementing your transfer request.
Required Information Sharing
Under rules adopted by the SEC, we also have written agreements with the Underlying Funds that
obligate us to, among other things, provide the Underlying Funds promptly
upon request
certain information about you (e.g., your social security number) and your trading activity.
Transfers During the Income Phase
During the Income Phase, only one transfer per month is
permitted between the Variable Portfolios. No other transfers are allowed during the
Income Phase. Transfers will be effected for the last NYSE business day of the month in
which we receive your request for the transfer.
You may not use the DCA Program or the Automatic Asset
Rebalancing Program during the Income Phase.
Voting Rights
The Company is the legal owner of the Trusts’ shares. However, when an Underlying Fund solicits proxies in conjunction with a shareholder vote, we must
obtain your instructions on how to vote those shares. We vote all of the shares we own
in proportion to your instructions. This includes any shares we own on our own behalf. As a result of this proportionate voting, the vote of a small number of contract Owners can determine the
outcome of a vote. Should we determine that we are no longer required to vote in the
manner described above, we will vote the shares in our own right.
Access to your Money
You can access money in your contract in one of the following ways:
•
Partial Withdrawal;
•
Systematic Withdrawal;
•
Total Withdrawal (also known as surrender); or
•
Annuity Income Payment (during Income Phase).
Withdrawals made prior to age 59½ may result in a 10% IRS
penalty tax. Certain Qualified plans restrict and/or prohibit your ability to withdraw money from your contract. Please see TAXES.
Minimum Withdrawal Amount and Minimum Contract Value
| |
Minimum
Withdrawal
Amount |
Minimum
Contract
Value(1) |
| Partial Withdrawal |
$1,000 |
$500
(2) |
| Systematic Withdrawal |
$100
|
$500(2) |
(1)
The value left in any Variable Portfolio or available Fixed Account must be at least $100 after a withdrawal.
(2)
The total contract value must be at least $500 after a withdrawal.
Where permitted by state law, we may terminate your contract if both of the following occur: (1) your contract value is less than $500 as a result of
withdrawals; and (2) you have not made any Purchase Payments during the past three
years. We will provide you with sixty days
25
written notice that
your contract is being terminated. At the end of the notice period, we will distribute the contract’s remaining value to you.
Penalty-Free Withdrawal Amount
Your contract provides for a penalty-free withdrawal
amount each contract year during the applicable withdrawal period. The penalty-free
withdrawal amount is the portion of your contract that we allow you to take out without being charged a withdrawal charge. The penalty-free withdrawal amount does not reduce the basis used to
calculate future annual penalty-free withdrawals and withdrawal charges.
To determine your penalty-free withdrawal amount and your
withdrawal charge, we refer to two special terms: “penalty-free earnings”
and “total invested amount.”
Penalty-free earnings are equal to your contract value less your
total invested amount and may be withdrawn free of a withdrawal charge at any time, including upon a full surrender of your contract. Purchase Payments that are no longer subject to a withdrawal charge and
not previously withdrawn may also be withdrawn free of a withdrawal charge at any time.
The total invested amount is the sum of all Purchase Payments less portions of prior withdrawals that reduce your total invested amount as follows:
•
Penalty-free withdrawals in any year that were in excess of your penalty-free earnings and were based on the portion of the total invested amount
that was no longer subject to withdrawal charges at the time of the withdrawal;
and
•
Any prior withdrawals (including withdrawal charges applicable to those withdrawals) of the total invested amount on which you already paid a
withdrawal charge.
| During the first contract year, your maximum annual
penalty-free withdrawal amount is the greater
of: |
| (1)your penalty-free earnings; or |
| (2)if you are participating in the Systematic Withdrawal program, a total of 10% of your total invested amount |
| After the first contract year, your maximum annual
penalty-free withdrawal amount is the
greater of: |
| (1)your penalty-free earnings; or |
| (2)10% of the portion of your total invested amount that has been in your contract for at least one year and still subject to a withdrawal charge |
If, in any contract year, you choose to take less than the full
penalty-free withdrawal amount, then you may not carry over the unused amount as an
additional penalty-free withdrawal in subsequent years.
If you participate in the Polaris Rewards program, you will not receive any deferred Payment Enhancement if you fully
withdraw a
Purchase Payment or if you surrender your contract prior to the corresponding Deferred Payment Enhancement Date.
Although we do not assess a withdrawal charge when you take a 10% free withdrawal of the total invested amount we will proportionally reduce the amount of
any corresponding Deferred Payment Enhancement. Please see POLARIS REWARDS PROGRAM above.
Assessment of Withdrawal Charges
We deduct a withdrawal charge applicable to any amount of a partial or total withdrawal in excess of your penalty-free withdrawal amount made before the end
of the withdrawal charge period. Before purchasing this contract, you should consider
the effect of withdrawal charges on your investment if you need to withdraw more than the annual penalty-free amount during the withdrawal charge period. You should fully discuss this decision with
your financial representative.
The withdrawal charge percentage is determined by the number of years the Purchase Payment has been in the contract at the time of the withdrawal. Please see WITHDRAWAL CHARGES and EXPENSES.
When you make a partial withdrawal, we deduct it from penalty-free earnings first, any remaining
penalty-free withdrawal amount, and then from the total invested amount on a first-in,
first-out basis. This means that you can also access your Purchase Payments, which are no
longer subject to a withdrawal charge before those Purchase Payments, which are still
subject to the withdrawal charges or higher withdrawal charges.
If you request a total withdrawal (surrender) of your contract,
we may also deduct any premium taxes, if applicable. If you fully
surrender your contract, withdrawal charges will be assessed against the amount of Purchase Payments subject to withdrawal charges. This means
that, if you surrender your contract while withdrawal charges still apply, any prior penalty-free withdrawal amounts taken in the current contract year are not
subtracted from the total Purchase Payments still subject to withdrawal charges. Please see EXPENSES.
Calculating Withdrawal Charges
For the purpose of calculating the withdrawal charge if you request a total withdrawal of your
contract, any prior penalty-free withdrawal amount, including a required minimum
distribution, in the current contract year is not subtracted from the total Purchase Payments still subject to withdrawal charges.
Example:
For example, you make an initial Purchase Payment of $100,000. For purposes of this example we will assume a 0% growth rate over the life of the
contract, no subsequent Purchase Payments and no election of optional features, if
26
applicable. In
contract year 2, you take out your maximum penalty-free withdrawal of $10,000. After that penalty-free withdrawal your contract value is $90,000. In the 3rd contract year, you request a total withdrawal
of your contract. We will apply the following calculation:
A–(B × C)=D, where:
A=
Your contract value at the time of your request for withdrawal ($90,000)
Your contract value at the time of your request for withdrawal ($90,000)
B=
The amount of your Purchase Payments still subject to withdrawal charge ($100,000)
The amount of your Purchase Payments still subject to withdrawal charge ($100,000)
C=
The withdrawal charge percentage applicable to the age of each Purchase Payment (assuming 5% is the applicable percentage) [B × C=$5,000]
The withdrawal charge percentage applicable to the age of each Purchase Payment (assuming 5% is the applicable percentage) [B × C=$5,000]
D=
Your full contract value ($85,000) available for total withdrawal
Your full contract value ($85,000) available for total withdrawal
Required Minimum Distributions
If you are taking required minimum distributions applicable to this contract only, we waive any withdrawal charges applicable to those withdrawals. Please see TAXES for details regarding required minimum
distributions.
Annuity Income Payments
Any time after your second contract anniversary, you may receive annuity income payments for a specified period of time and at a frequency as elected by you.
We will waive any applicable withdrawal charges upon processing of your request to
annuitize the contract. Please see ANNUITY INCOME
OPTIONS.
Processing Withdrawal Requests
A request to access money from your contract, as outlined above, must be submitted in writing and in
Good Order to the Annuity Service Center at the following address. Withdrawals are
processed effective the date they are deemed in Good Order and payments are made within 7
days. If you take a partial withdrawal, you can choose whether any applicable
withdrawal charges are deducted from the amount withdrawn or from the contract value
remaining after the amount withdrawn. If you fully surrender your contract value, we
deduct any applicable withdrawal charges from the amount
surrendered.
For withdrawals of $500,000 and more, you are required to include a signature guarantee issued by
your broker-dealer which verifies the validity of your
signature.
| Annuity Service Center P.O. Box 15570 Amarillo, TX 79105-5570 |
Any request for withdrawal will be priced as of the day it is
received by us in Good Order at the Annuity Service Center, if the request is received
before Market Close. If the request for withdrawal is received after Market Close, the request will be priced as of the next NYSE business day.
Withdrawals are processed effective the date they are deemed in Good Order and payments are made within 7 days.
We may be required to suspend or postpone the payment of a withdrawal for any period of time when:
(1) the NYSE is closed (other than a customary weekend and holiday closings); (2)
trading with the NYSE is restricted; (3) an emergency exists such that disposal of or determination of the value of shares of the Variable Portfolios is not reasonably practicable; (4) the SEC, by order,
so permits for the protection of contract Owners.
Additionally, we reserve the right to defer payments for a withdrawal from a Fixed Account for up to six months.
Partial, Systematic, and Required Minimum Distributions
Partial withdrawals, systematic withdrawals and required minimum distributions will be made
proportionately from each Variable Portfolio and the Fixed Account in which you are
invested, unless you provide different instructions.
If you surrender your contract, we may deduct any premium taxes,
if applicable. Please see EXPENSES.
Total Withdrawals
We calculate withdrawal charges upon total withdrawal of
the contract on the day after we receive your request in Good Order. Any prior
penalty-free withdrawal amount in the current contract year is not subtracted from the total Purchase Payments still subject to withdrawal charges. We will return your contract value less any
applicable fees and charges within 7 calendar days of the request.
Systematic Withdrawal Program
During the Accumulation Phase, you may elect to receive periodic withdrawals under the Systematic
Withdrawal Program for no additional charge. Under the program, you may choose to take
monthly, quarterly, semi-annual or annual payments from your contract. Electronic transfer of these periodic withdrawals to your bank account is available.
Please contact our Annuity Service Center which can provide the necessary enrollment forms. A withdrawal charge may apply if the amount of the periodic
withdrawals in any year exceeds the penalty-free withdrawal amount permitted each
year.
Upon notification of your death, we will terminate the Systematic Withdrawal Program unless your Beneficiary instructs us otherwise.
We reserve the right to modify, suspend or terminate the
Systematic Withdrawal Program at any time and we will notify you prior to exercising that right.
Nursing Home Waiver
If you are confined to a nursing home for 60 days or longer, we may waive the withdrawal charge on
partial or total withdrawals made while you are in a nursing home or within 90 days
after you leave the nursing home.
27
•
You cannot use this waiver during the first 90 days after your contract is issued.
•
The confinement period for which you seek the waiver must begin after you purchase your contract.
•
We will only waive withdrawal charges on withdrawals paid directly to the contract owner, and
not to a third party or other financial services company.
In order to use this waiver, you must submit the following
documents to the Annuity Service Center:
1)
a doctor’s note recommending admittance to a nursing home;
2)
an admittance form which shows the type of facility you entered; and
3)
the bill from the nursing home which shows that you met the 60 day confinement requirement.
Benefits Available Under the Contract
The following tables summarize information about the
benefits available under the contract.
Standard Benefits (No Additional Charge)
| Name of Benefit |
Purpose |
Brief Description of Restrictions / Limitations |
| Purchase Payment
Accumulation Death Benefit |
Provides a death benefit
based on the greatest of
contract value, Net
Purchase Payments
accumulated at an annual
growth rate, or the contract
value on the seventh
contract anniversary |
•Withdrawals may significantly reduce the benefit •Can only be elected prior to your 75th birthday
•Death benefit calculated differently depending on age and date of contract
issuance
•Death benefit election cannot be changed |
| Maximum Anniversary
Value Death Benefit |
Provides a death benefit
based on the greatest of
contract value, Net
Purchase Payments, or
highest contract value on an
eligible contract anniversary |
•Withdrawals may significantly reduce the benefit •Death benefit calculated differently depending on age and
date of contract issuance
•If you are age 90 or older at the time of death and selected the Maximum
Anniversary Value death benefit, the death benefit will be equal to the
contract value. |
| Dollar Cost Averaging
(DCA) Fixed Accounts |
Interest is credited to
amounts allocated to a DCA
Fixed Account and your
money is systematically
transferred from the DCA
Fixed Account to one or
more investment options
over a specified period of
time |
•Must be funded with an initial Purchase Payment, not transferred
contract value
•Minimum funding requirements apply •Only 6-month, 12-month, and 2-year periods may be
available •Transfers may only occur on a monthly basis •Availability may be restricted based on date of contract
issuance and election of optional benefits
•Fixed Account options are not eligible to receive DCA transfers •The interest rates applicable to the DCA Fixed Accounts
may differ from those applicable to any other Fixed Account
but will never be less than the minimum guaranteed interest
rate specified in your contrat. |
| Dollar Cost Averaging
(DCA) Program |
Allows you to have
systematic transfers of a
specified dollar amount or
percentage of contract value
from an investment option
to one or more eligible
investment options |
•Transfers may only occur on a monthly basis and will not count towards
the number of free transfers per contract year
•Minimum per transfer is $100 regardless of source account •Fixed Account options are not eligible to receive DCA
transfers •Upon notification of your death, we will terminate the DCA Program and
transfer the remaining money according to the current allocation
instructions on file |
| Automatic Asset
Rebalancing |
Allows you to have your
investments periodically
rebalanced to your
pre-selected percentages |
•Rebalancing may occur on a quarterly, semi-annual, or
annual basis •Updated rebalancing instructions must be provided upon making a non-automatic transfer, otherwise rebalancing instructions will be
automatically updated
•Upon notification of your death, we will terminate the Automatic Asset
Rebalancing Program
•If you elect an optional Living Benefit, we will automatically enroll you in
the Automatic Asset Rebalancing Program with quarterly
rebalancing |
28
Standard Benefits (No Additional Charge) (continued)
| Name of Benefit |
Purpose |
Brief Description of Restrictions / Limitations |
| Systematic Withdrawal
Program |
Allows you to receive
periodic withdrawals from
your contract |
•Minimum withdrawal amount is $100 •Withdrawals may occur on a monthly, quarterly,
semi-annual, or annual basis
•Participation in program may be restricted if optional Living Benefit
elected |
| Automatic Payment Plan |
Allows you to make
automatic Purchase
Payments |
•Minimum requirements for the initial and subsequent Purchase Payments
and age restrictions apply
•May not be available with election of certain Living Benefit features |
| Return Plus Program |
Allows you to allocate your
investment strategically
between fixed accounts and
variable portfolios |
•Only available if multi-year Fixed Accounts are
offered. |
Optional Benefits No Longer Available For Election
| Name of
Benefit |
Purpose |
Maximum Fee |
Brief Description of Restrictions/Limitations |
| Income
Protector |
A guaranteed minimum
income benefit that can
offer ability to receive fixed
income payments during
Income Phase |
0.30%
(as a percentage of
the Income Benefit
Base) |
•Withdrawals may significantly reduce the benefit •May not begin income for at least 7 years after election
of benefit
•May not elect this feature if the required waiting period before beginning the Income Phase would occur later than your Latest Annuity Date •If available and elected a growth rate can provide
increased income
•May only elect to begin the Income Phase using the Income Protector within the 30 days after the 7th or later contract
anniversary following the effective date of electing benefit or
Re-Set if applicable.
•Qualified contracts may limit the benefit of the Income Protector to not exceed life expectancy. •Not all features of the benefit may be available in all
states. Please see APPENDIX D –
STATE CONTRACT AVAILABILITY AND/OR
VARIABILITY for specific states |
| EstatePlus
Benefit
(For contracts
issued after
December 29,
2000) |
Increases the death benefit
amount if there are
earnings in the contract at
the time of death |
0.25%
(as a percentage of
average daily ending
net asset value
allocated to the
Variable Portfolios) |
•Withdrawals may significantly reduce the
benefit •Must be elected with the Maximum Anniversary Value or the Purchase Payment Accumulation death benefit at contract issue •Not available if age 81 or older at the time of contract
issue •May not be terminated •Not available after Latest Annuity Date
•The contract year of owner’s death and age at issue determines the EstatePlus Percentage and the Maximum EstatePlus Benefit •Purchase Payments received after the 5th contract
anniversary must remain in the contract for at least 6 full
months to be included as part of Net Purchase Payments for
the death benefit calculation |
OPTIONAL Living Benefit
Income Protector
Income Protector is a minimum income benefit and provides a future “safety net” which
can offer you the ability to receive a guaranteed fixed minimum retirement income when
you switch to the Income Phase. With Income Protector, you can know the level of minimum income that will be available to you upon annuitization, regardless of
fluctuating market conditions. Income Protector is available on contracts issued prior to May 1, 2006.
The minimum level of Income Protector benefit available is generally based upon the Purchase Payments remaining in your contract at the time you decide to
begin taking income. If available and elected, a growth rate can provide increased
levels of minimum guaranteed income.
If you purchased your contract between November 2, 1998 and March 31, 1999 and the Income Protector was available in your state at that time, other options
were available under Income Protector, please see details below.
29
How We
Determine the Amount of Your Minimum Guaranteed
Income
If you elect Income Protector, we base the amount of minimum income available to you upon a
calculation we call the Income Benefit Base. Your Income Benefit Base is equal to your
contract value on the date of election. Income Protector is effective on either the date of issue of the contract or at the contract anniversary following your election of Income Protector.
The Income Benefit Base is only a calculation. It does not represent a contract value, nor does it
guarantee performance of the Variable Portfolios in which you
invest.
Your Income Benefit Base increases if you make subsequent Purchase Payments and decreases if you
withdraw money from your contract. The Income Benefit Base is equal to (a) plus (b)
minus (c) where:
(a)
is equal to, for the first year of calculation, your initial Purchase Payment, or for each subsequent year of calculation, the Income Benefit Base on the
prior contract anniversary, and;
(b)
is equal to the sum of all subsequent Purchase Payments made into the contract since the date of election, and;
(c)
is equal to all withdrawals and applicable fees and charges since the date of election, in an amount proportionate to the amount by which such withdrawals decreased your contract value.
In order to obtain
the benefit of Income Protector, you may not begin the Income Phase for at least 7 years following election. You may not elect this feature if the required waiting period before beginning the Income
Phase would occur later than your Latest Annuity Date.
Re-Set of Your Income Protector Benefit
You may also have the opportunity to “Re-Set” your Income Benefit Base. The Re-Set
feature allows you to increase your Income Benefit Base to the amount of your contract
value on your next contract anniversary. You can only Re-Set within the 30 days before
your next contract anniversary. Upon a Re-Set, the waiting period before you can begin
the Income Phase will start over. In addition, the Income Protector fee will be charged as a percentage of your Re-Set Income Benefit Base. You may not elect to Re-Set if the required waiting period before
beginning the Income Phase would occur later than your Latest Annuity Date.
Electing to Receive Income Payments
You may elect to begin the Income Phase of your contract using the Income Protector Program only within the 30 days after the 7th or later contract
anniversary following the effective date of electing Income Protector or Re-Set, if
applicable.
The Income Benefit Date is the contract anniversary date on which the Income Benefit is calculated and applied. This
is the date as of which we calculate your Income Benefit Base to use in determining
your guaranteed minimum income payments. To arrive at the minimum guaranteed income
payments available to you, we apply the annuity rates stated in your Income Protector Endorsement for the income option you select to your final Income Benefit Base. You then choose if you would like to
receive that income annually, quarterly or monthly for the time guaranteed under your
selected annuity option. Your final Income Benefit Base is equal to (a) minus (b) where:
(a)
is your Income Benefit Base as of your Income Benefit Date, and;
(b)
is any withdrawal charges calculated as if you fully surrender your contract as of the Income Benefit Date, and any applicable premium taxes.
The annuity income options available under this feature when
using Income Protector to receive your guaranteed income payments
are:
•
Life Annuity with 10 Year Period Certain, or
•
Joint and 100% Survivor Annuity with 20 Year Period Certain
At the time you elect to begin receiving annuity income payments, we will calculate your annual guaranteed income payments using both your final Income
Benefit Base and your contract value. We will use the same income option for each
calculation; however, the annuity factors used to calculate your guaranteed income payments under Income Protector will be different. You will receive whichever provides a greater stream of income. If you
annuitize using Income Protector, your annuity income payments will be fixed in amount.
You are not required to use Income Protector to receive income payments.
You may never need to rely upon the Income Protector, if your contract performs within a
historically anticipated range. However, past performance is no guarantee of future
results.
Fees Associated with the Income Protector Program
There is no fee for the Income Protector Base program.
If you purchased your contract between
November 2, 1998 and March 31, 1999, the following applies only to the Income Protector option you may have elected:
30
Options available
for contracts issued between November 2, 1998 and March 31,
1999:
| |
Growth Rate |
Fee as a %
of Your Income
Benefit Base |
Waiting Period |
| Income Protector
Base |
0% |
0% |
7 years |
| Income Protector
Plus |
3.25% |
0.15% |
7 years |
| Income Protector
Max |
6.50% |
0.30% |
7 years |
Income Protector provides three alternative levels of minimum retirement income. The base Income
Protector is a standard feature of all PolarisII contracts issued after November 2, 1998, if the feature is available for sale in your state. There is no additional charge associated with the Income Protector Base feature. If
elected, the Income Protector Plus and Income Protector Max options can provide
increased levels of minimum guaranteed income. We charge a fee for each of these alternatives, see table above.
We deduct the annual fee from your contract value. If you elect Income Protector Plus or Income
Protector Max at issue, we begin deducting the annual fee on your first contract
anniversary. We will deduct the charge from your contract value on every contract anniversary up to and including your Income Benefit Date. Additionally, we deduct the full annual fee from your contract
value upon surrender. If you elect the feature at some later date, we begin deducting
the annual fee on the contract anniversary following the date of election. We will not refund fees paid for Income Protector if you annuitize under the annuity provisions of your contract under the Income
Protector Plus or Income Protector Max options.
For the Income Protector Plus or Income Protector Max options, the Income Benefit Base accumulates at one of the annual growth rates, see table above,
from the date your election in the alternative becomes effective through your election
to begin receiving income under the feature. The growth rates for the Income Protector Plus or Income Protector Max options cease on the contract anniversary following the Annuitant’s 90th
birthday.
In order to obtain the benefit of the Income Protector Plus or Income Protector Max option, you may
not begin the Income Phase for at least 7 years following your election of the option.
Thus, you must make your election prior to the later of:
•
your 83rd birthday; or
•
your 3rd contract anniversary.
Note to
Qualified Contract Holders
Qualified contracts generally require that you select an annuity
income option that does not exceed your life expectancy. That restriction, if it applies to you, may limit the benefit of Income Protector. To utilize Income Protector, you must take annuity income payments
under one of the
two annuity income options described above. If those annuity income options exceed your life
expectancy, you may be prohibited from receiving your guaranteed income payments under
the feature. If you own a Qualified contract to which these restrictions apply and you elect Income Protector, you may pay for this feature and not be able to realize the benefit. A guarantee of
payments greater than 10 years may not be available to all Beneficiaries. Under certain
circumstances the Beneficiary’s annuity income payments may be limited based on the Internal Revenue Code.
You should consult your tax advisor for information concerning your particular circumstances.
Please see Appendix G for examples of how your Living
Benefit is calculated.
Death Benefits
You must elect one of the death benefit options at the time you purchase your contract. Some options
are available for an additional fee, as described later in this section. Once elected,
you cannot change your death benefit option. You should discuss the available options with your financial representative to determine which option is best for you.
We do not pay a death benefit if:
•
your contract value is reduced to zero; or
•
you die after you begin the Income Phase. Your Beneficiary would receive any remaining guaranteed annuity income payments in accordance with the
annuity income option you selected. Please see ANNUITY INCOME OPTIONS.
We pay a death
benefit to your Beneficiary(ies) if you die during the Accumulation Phase. The death benefit will become payable upon death of the following individual.
| Owner |
Payable Upon
Death of |
| Natural persons |
Owner (or first to die,
if jointly owned) |
| Non-natural person
(e.g. Trust) |
Annuitant |
Beneficiary Designation
You must notify us in writing of the Beneficiary(ies) who will receive any death benefit payments under your contract. You may change the Beneficiary at any
time, unless otherwise specified below.
•
If your contract is jointly owned, the surviving joint Owner must be the sole primary Beneficiary. Any other individual you designate as Beneficiary will
be the contingent Beneficiary.
31
•
If the Owner is a non-natural person then joint Annuitants, if any, shall be each other’s sole
primary Beneficiary, except when the Owner is a charitable remainder trust.
•
If the Owner is a trust, whether as an agent for a natural person or otherwise, you should consult with your tax and/or legal adviser to determine
whether this contract is an appropriate trust investment.
Death Benefit Processing
We process death benefit requests when we receive all required documentation, including satisfactory
proof of death, in Good Order, at the Annuity Service
Center.
| Satisfactory proof of death includes, but may not be limited to: |
| (1)A certified copy of the death certificate; or |
| (2)A certified copy of a decree of a court of competent jurisdiction as to the finding of death; or |
| (3)A written statement by a medical doctor who attended the deceased at the time of death. |
When Death Benefits are Calculated
•
All death benefit calculations are made as of the day required documentation is received in Good Order at the Annuity Service Center before Market
Close. If the death benefit request is received after Market Close, the death benefit
calculation will be made as of the next NYSE business day.
The contract value will remain invested pursuant to the Owner's
latest allocation instructions on file subject to the limitations described in this prospectus, until we receive notification of death and/or death claim paperwork in Good Order. Thereafter, a Beneficiary may
elect one of the death settlement options by contacting the Annuity Service Center.
If we receive notification of the Owner’s death before any previously requested transaction is
completed (including systematic transfer and withdrawal programs), we will cancel the
previously requested transaction.
For contracts in which the aggregate of all Purchase Payments in contracts issued by AGL, US Life and/or
VALIC to the same Owner/Annuitant are in excess of the Purchase Payments Limit, we reserve the right to limit the death benefit amount that is in excess of
contract value at the time we receive all paperwork and satisfactory proof of death.
Any limit on the maximum death benefit payable would be mutually agreed upon in writing by you and the Company prior to purchasing the contract.
Death Benefit Settlement Options
Your Beneficiary must elect one of the following settlement options after providing required documentation, including satisfactory proof of death, in Good
Order.
•
Lump sum payment; or
•
Annuity Income Option; or
•
Continue the contract as the spousal Beneficiary, or under a Beneficiary continuation option; or
•
Payment option that is mutually agreeable between you and us
In general, the death benefit must be paid within 5 years of the
date of death unless the Beneficiary elects to have it payable in the form of an annuity income option. If the Beneficiary elects an annuity income option, it must be paid over the Beneficiary’s life
expectancy or a shorter period. Payments associated with such election must begin within
one year of death. Federal tax law may limit the Beneficiary’s death benefit and
payout options available after your death. Please see ANNUITY INCOME
OPTIONS.
Beneficiary Continuation Programs
Please consult a tax adviser regarding
tax implications about your particular circumstances if you are considering a Beneficiary Continuation option.
Extended Legacy Program
The Beneficiary to an existing contract issued by the Company may elect the Extended Legacy Program,
if available. This program may not be elected in conjunction with any other settlement
option.
Upon election of the Extended Legacy Program:
•
The contract continues in original Owner’s name for the benefit of the Beneficiary who elected the Extended Legacy Program.
•
The Beneficiary may withdraw all or a portion of the contract value at any time and withdrawals are not subject to withdrawal charges.
•
The Beneficiary may choose to participate in the Systematic Withdrawal Program and the Automatic Asset Rebalancing Program.
Upon election of the Extended Legacy Program, the beneficiary may
choose to receive the death benefit under (1) a 5-year settlement option or (2) in the form of withdrawals for a longer period of time:
Under the 5-year settlement option, the Beneficiary may take withdrawals as desired, but the death benefit proceeds must be distributed no later than five
years from the date of death of the Owner.
Note: If an IRA Owner died prior to January 1, 2020, the 5-year settlement option is not available if the date of the Owner's death occurred after the
required beginning date for distributions.
32
If the Beneficiary
elects to take the death benefit in the form of withdrawals over a longer period of time:
•
Generally, IRS required minimum distributions must be made at least annually over a period not to exceed the Beneficiary’s life expectancy as
determined in the calendar year after the Owner’s death, with the flexibility to
withdraw more than the IRS required minimum distribution. Certain Beneficiaries may not
be able to take minimum distributions over their life expectancy.
•
Payments must begin no later than the first anniversary of death for Non-Qualified contracts or
December 31 of the year following the year of the Owner’s death for IRAs.
Note: for IRAs, if the Owner’s death occurred on or after
January 1, 2020, choosing to receive the death benefit in the form of withdrawals for a
longer period of time is only available for a Spousal Beneficiary or a Non-Spousal
Beneficiary who is less than 10 years younger than the IRA Owner. Non-Spousal
Beneficiaries may instead elect the 5-year settlement option, if available.
If the contract value is less than the death benefit amount as of the date we receive satisfactory
proof of death and all required documentation in Good Order, we will increase the
contract value by the amount which the death benefit exceed contract value.
| We will process an Extended Legacy election as of the date we receive the following in Good Order at the Annuity Service Center: |
| •Death Claim form electing Extended Legacy Program;
and |
| •Satisfactory proof of death of the original Owner. |
Upon the Beneficiary’s request to our Annuity Service Center, we will provide a prospectus and Extended Legacy Guide, with important information including
expenses, investment options and administrative features. The prospectus that the
Beneficiary will receive may be for a different product than the original Owner purchased.
The Extended Legacy Guide includes important information regarding the program offered to
Beneficiaries on or after September 20, 2010.
Restrictions on Extended Legacy Program
•
The Extended Legacy Program cannot be elected with rollover contracts from other companies.
•
No Purchase Payments are permitted.
•
Death benefits and the Income Protector income benefit that may have been elected by the original
Owner are not available and any charges associated with these features will no longer
be deducted.
•
In the event of the Beneficiary’s death, any remaining contract value will be paid to the
person(s) named by the Beneficiary.
•
The contract may not be assigned and ownership may not be changed or jointly owned.
•
Any Fixed or DCA Fixed Accounts that may have been available to the original Owner will no longer be available for investment.
Expenses
We will charge the Beneficiary an annual Base Contract Expense of 1.15%. This charge is deducted daily from the average daily ending net asset value
allocated to the Variable Portfolios.
Beneficiaries that elected the Extended Legacy Program prior to September 20, 2010 will continue to be charged the same Base Contract Expense as described
above under BASE CONTRACT EXPENSE.
Investment Options
•
The Beneficiary may transfer funds among the available Variable Portfolios;
•
Variable Portfolios may differ from those available to the original Owner;
•
Variable Portfolios may be of a different share class subject to higher 12b-1 fees; and
•
Beneficiaries that elected the Extended Legacy Program prior to September 20, 2010 will continue
to be offered the same Variable Portfolios as the original Owner.
Death Benefit Defined Terms
The term “Net Purchase Payment” is used
frequently in describing the death benefit payable. Net Purchase Payment is an on-going
calculation. It does not represent a contract value.
We define Net Purchase Payments as Purchase Payments less an adjustment for each withdrawal, including fees and charges applicable to that withdrawal. If
you have not taken any withdrawals from your contract, Net Purchase Payments equal
total Purchase Payments into your contract. To calculate the adjustment amount for the first withdrawal made under the contract, we determine the percentage by which the withdrawal reduced the contract
value. For example, a $10,000 withdrawal from a $100,000 contract is a 10% reduction in
value. This percentage is calculated by dividing the amount of each withdrawal by the contract value immediately before taking the withdrawal. The resulting percentage is then multiplied by the
amount of the total Purchase Payments and subtracted from the amount of the total
Purchase Payments on deposit at the time of the withdrawal. The resulting amount is the initial Net Purchase Payment.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, we determine the percentage by
33
which the contract
value is reduced, by taking the amount of the withdrawal in relation to the contract value immediately before the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal, by this percentage. We subtract that result from
the Net Purchase Payment calculation as determined prior to the withdrawal to arrive at
all subsequent Net Purchase Payment calculations.
The term “withdrawals” as used in describing the death benefit options is defined as withdrawals and the fees and
charges applicable to those withdrawals.
The Company does not accept Purchase Payments from anyone age 86 or older. Therefore, the death
benefit calculations assume that no Purchase Payments are received on or after your
86th birthday.
Death
Benefit Options
This contract provides two death benefit options: the Purchase Payment Accumulation Option and the
Maximum Anniversary Value Option. Your death benefit calculation may be different
depending on when you purchased your contract, please see details below. In addition, you may also elect the optional EstatePlus feature, described below. These elections must be made at the time you
purchase your contract and once made, cannot be changed or terminated. You may pay for
the optional EstatePlus feature and your Beneficiary may never receive the benefit once you begin the Income Phase on or before the Latest Annuity Date.
The following is a description of the
death benefit options if your contract was issued on or after June 1, 2004:
Option 1 – Purchase Payment Accumulation Option
The death benefit is the greatest of:
1.
Contract value; or
2.
Net Purchase Payments, compounded at 3% annual growth rate to the earlier of the 75th birthday or date of death, reduced for withdrawals after the
75th birthday in the same proportion that the contract value was reduced on the date of
such withdrawal, and adjusted for Purchase Payments received after the 75th birthday;
or
3.
Contract value on the seventh contract anniversary, reduced for withdrawals since the seventh contract anniversary in the same proportion that the
contract value was reduced on the date of such withdrawal, and adjusted for Purchase
Payments received after the seventh contract anniversary.
The Purchase Payment Accumulation Option can only be elected
prior to your 75th birthday.
Option 2 –
Maximum Anniversary Value Option
If the contract is issued prior to your 83rd birthday, the death
benefit is the greatest of:
1.
Contract value; or
2.
Net Purchase Payments; or
3.
Maximum anniversary value on any contract anniversary prior to the earlier of your 83rd birthday or date of death. The anniversary values
equal the contract value on a contract anniversary, reduced for withdrawals since that
contract anniversary in the same proportion that the contract value was reduced on the
date of such withdrawal, and adjusted for any Purchase Payments since that anniversary.
If the contract is issued on or after your 83rd birthday but
before your 86th birthday, the death benefit is greater of:
1.
Contract value; or
2.
The lesser of:
a.
Net Purchase Payments; or
b.
125% of Contract Value.
If you are age 90
or older at the time of death and selected the Maximum Anniversary Value death benefit, the death benefit will be equal to the contract value. Accordingly, you will not get any benefit from this
option if you are age 90 or older at the time of your death.
Please see Appendix E for examples of how your death benefit is calculated.
The following is a description of the
death benefit options if your contract was issued between October 24, 2001 and June 1, 2004:
Option 1 – Purchase Payment Accumulation Option
The death benefit is the greatest of:
1.
Contract value; or
2.
Net Purchase Payments compounded at a 4% annual growth rate until the date of death (3% growth rate if age 70 or older at the time of contract
issue) plus any Purchase Payments recorded after the date of death; and reduced for any
withdrawals on the same proportion that the withdrawal reduced contract value on the
date of the withdrawal; or
3.
Contract value on the seventh contract anniversary, plus any Purchase Payments since the seventh contract anniversary; and reduced for any withdrawal since the seventh contract anniversary in the same proportion that each withdrawal
reduced the contract value on the date of the withdrawal, all compounded at a 4% annual
growth rate until the date of death (3% growth rate if age 70 or older at the time of
contract issue) plus any Purchase Payments recorded after the date of death; and
reduced for each withdrawal recorded after the date of death in the same proportion
that each withdrawal reduced the contract value on the date of the withdrawal.
34
Option 2
– Maximum Anniversary Value Option
The death benefit is the greatest of:
1.
Contract value; or
2.
Net purchase Payments; or
3.
Maximum anniversary value on any contract anniversary prior to your 81st birthday plus any Purchase Payments since that contract anniversary;
and reduced for any withdrawals since the contract anniversary in the same proportion
that each withdrawal reduced the contract value on the date of the withdrawal.
If you are age 90 or older at the time of death and selected the
Maximum Anniversary Value death benefit, the death benefit will be equal to contract value. Accordingly, you will not get any benefit from this option if you are age 81 or older at the time of contract issue or you
are age 90 or older at the time of your death.
Please see Appendix E for examples of how your death benefit is calculated.
The following is a description of the
death benefit options if your contract was issued prior to October 24, 2001:
Option 1 – Purchase Payment Accumulation Option
The death benefit is the greatest of:
1.
Contract value; or
2.
Total Purchase Payments less withdrawals, compounded at a 4% annual growth rate until the date of death (3% growth rate if age 70 or older at
the time of contract issue) plus any Purchase Payments less withdrawals recorded after
the date of death; or
3.
Contract value on the seventh contract anniversary, plus any Purchase Payments and less any withdrawals, since the seventh contract anniversary, all compounded at a 4% annual growth rate until the date of death (3% growth rate if age 70 or older
at the time of contract issue) plus any Purchase Payments less withdrawals recorded
after the date of death.
Option 2
– Maximum Anniversary Value Option
The death benefit is the greatest of:
1.
Contract value; or
2.
Total Purchase Payments less withdrawals; or
3.
Maximum anniversary value on any contract anniversary prior to your 81st birthday. The anniversary value equals the contract value on a
contract anniversary plus any Purchase Payments and less any withdrawals, since that
contract anniversary.
If you are age 90
or older at the time of death and selected the Maximum Anniversary Value death benefit, the death
benefit will be
equal to contract value. Accordingly, you will not get any benefit from this option if you are age 81 or older at the time of contract issue or you are age 90 or older at the time of your death.
Please see Appendix E for examples of how your death benefit is
calculated.
The following is a description of the EstatePlus Benefit if your contract was issued on or after December 29, 2000:
Optional EstatePlus Benefit
EstatePlus, an optional earnings enhancement benefit of your contract, may increase the death
benefit amount if you have earnings in your contract at the time of death. The fee for
the benefit is 0.25% of the average daily ending net asset value allocated to the Variable Portfolios. EstatePlus is not available if you are age 81 or older at the time we issued your contract. This benefit is not
available for election in Washington.
You must have elected EstatePlus at the time we issued your contract and you may not terminate this
election. Furthermore, EstatePlus is not payable after the Latest Annuity Date. You may
pay for EstatePlus and your Beneficiary may never receive the benefit if you live past
the Latest Annuity Date.
We will add a percentage of your contract earnings (the “EstatePlus Percentage”), subject to a maximum dollar amount (the “Maximum
EstatePlus Benefit”), to the death benefit payable. The contract year of your death will determine the EstatePlus Percentage and the Maximum EstatePlus Benefit.
The table below applies to contracts issued prior to your 70th birthday:
| Contract Year
of Death |
EstatePlus
Percentage |
Maximum
EstatePlus Benefit |
| Years 0 – 4 |
25% of Earnings |
40% of Net Purchase
Payments |
| Years 5 – 9 |
40% of Earnings |
65% of Net Purchase
Payments* |
| Years 10+ |
50% of Earnings |
75% of Net Purchase Payments* |
The table below applies to contracts issued on or after your 70th birthday but prior to your 81st
birthday:
| Contract Year
of Death |
EstatePlus
Percentage |
Maximum
EstatePlus Benefit |
| All Contract
Years |
25% of Earnings |
40% of Net Purchase Payments* |
*
Purchase Payments received after the 5th contract anniversary must remain in the contract for at least 6 full months to be included as part of Net Purchase Payments for
the purpose of the Maximum EstatePlus Benefit.
What is the Contract Year of Death?
Contract Year of Death is the number of full 12-month periods during which you have owned your
contract ending on the date of death. Your Contract Year of Death is used
35
to determine the
EstatePlus Percentage and Maximum EstatePlus Benefit as indicated in the table above.
What is the EstatePlus Percentage?
We determine the EstatePlus benefit using the EstatePlus Percentage, indicated in the table above,
which is a specified percentage of the earnings in your contract on the date of death.
For the purpose of this calculation, earnings equals contract value minus Net Purchase Payments as of the date of death. If there are no earnings in your contract at the time of death, the amount of your
EstatePlus benefit will be zero.
What is the Maximum EstatePlus Benefit?
The EstatePlus benefit is subject to a maximum dollar amount. The Maximum EstatePlus Benefit is equal to a specified percentage of your Net Purchase
Payments, as indicated in the table above.
A Continuing Spouse may continue EstatePlus if they are age 80 or younger on the Continuation Date
or terminate the benefit. If a Continuing Spouse is age 81 or older on the Continuation
Date, they may continue the contract only and may not continue the EstatePlus feature. If the Continuing Spouse terminates EstatePlus or dies after the Latest Annuity Date, no EstatePlus benefit will be
payable to the Continuing Spouse’s Beneficiary. Please see
SPOUSAL CONTINUATION below.
We reserve the right to modify, suspend or terminate EstatePlus (in its entirety or any component) at any time for
prospectively issued contracts.
Please see Appendix E for examples of how your death benefit is calculated.
Spousal Continuation
The Continuing Spouse may elect to continue the contract after your death. A spousal continuation can only take place once, upon the death of the original
Owner of the contract.
Upon election of Spousal Continuation:
•
Generally, the contract, its benefits and elected features, if any, remain the same.
•
Continuing Spouse is subject to the same fees, charges and expenses applicable to the original
Owner of the contract. Please see EXPENSES.
•
If the Continuing Spouse terminates any optional death benefit or dies after the Latest Annuity Date, no optional death benefit will be payable to
the Continuing Spouse’s Beneficiary.
•
Continuing Spouse will be subject to the investment risk of Variable Portfolios, as was the original
Owner.
Non-spousal joint
Owners (including Domestic Partners) are not eligible for spousal continuation, under current tax law.
Upon a spousal continuation, we will contribute to the contract value an amount by which the death
benefit that
would have been paid to the Beneficiary upon the death of the original Owner, exceeds the contract
value as of the Good Order date (“Continuation Contribution”), if any. The
Continuation Contribution is not considered a Purchase Payment for the purposes of any
other calculations except the death benefit following the Continuing Spouse’s death.
| We will process a spousal continuation as of the date we receive the following at the Annuity Service Center: |
| •Death Claim form;
and |
| •Satisfactory proof of death of the original Owner. |
We will add any Continuation Contribution as of the date we receive both the Continuing Spouse’s written request to continue the contract and satisfactory
proof of death of the original Owner (“Continuation Date”) at the Annuity
Service Center.
The age of the Continuing Spouse on the Continuation Date will be used to determine any future death benefits under the contract. Please see APPENDIX C – DEATH BENEFITS FOLLOWING SPOUSAL CONTINUATION for a discussion of the death benefit calculations upon a
Continuing Spouse’s death.
Expenses
We may deduct the following fees and expenses if applicable from your contract, as described later
in this section.
•
Base Contract Expenses
•
Withdrawal Charges
•
Underlying Fund Expenses
•
Contract Maintenance Fee
•
Transfer Fee
•
Optional Living Benefit Fee
•
Optional Death Benefit Fee
Fees and expenses
associated with your contract reduce your investment return. Before purchasing this contract, you should consider the effect of fees and expenses on your investment. You should fully discuss this
decision with your financial representative. We will not increase certain contract
fees, such as the Base Contract Expense or withdrawal charges for the life of your contract. Underlying Fund investment management fees may increase or decrease. Some states may require that we charge
less than the amounts described below. Please see APPENDIX D — STATE CONTRACT AVAILABILITY AND/OR VARIABILITY for state-specific expenses.
We intend to profit from the sale of the contracts. Our profit may be derived as a result of a variety of pricing factors including but not limited to the fees and
charges assessed under the contract and/or amounts we may receive from an Underlying
Fund, its investment advisor and/or subadvisors (or affiliates thereof).
Please see PAYMENTS IN
36
CONNECTION WITH DISTRIBUTION OF THE CONTRACT below. The fees, charges, amounts received from the Underlying Funds (or affiliates thereof) and any resulting profit may be used for any
corporate purpose including supporting marketing, distribution and/or administration of
the contract and, in its role as an intermediary, the Underlying
Funds.
| Base Contract Expenses |
1.52% |
(annualized charge as a percentage of the average daily ending
net asset value allocated to Variable Portfolios)
The Base Contract Expense (also referred to as Separate Account
Charge) compensates the Company for the mortality and expense risk and the costs of contract distribution assumed by the Company.
Generally, the mortality risks assumed by the Company arise from its contractual obligations to make annuity income payments after the Annuity Date and to
provide a death benefit. The expense risk assumed by the Company is that the costs of
administering the contracts and the Separate Account will exceed the amount received from the fees and charges assessed under the contract. There may not necessarily be a relationship between the
administrative charge imposed under the contract and the amount of expenses that may be
attributable to the contract.
If these charges do not cover all of our expenses, we will pay
the difference. Likewise, if these charges exceed our expenses, we will keep the difference. The mortality and expense risk charge is expected to result in a profit. Profit may be used for any cost or expense
including supporting distribution. Please see PAYMENTS IN CONNECTION
WITH DISTRIBUTION OF THE CONTRACT below.
If your Beneficiary elects to take the death benefit amount under
the Extended Legacy Program, we will deduct an annual Base Contract Expense of
1.15% of the average daily ending net asset value allocated to the Variable Portfolios. Please see Extended Legacy Program under DEATH BENEFITS.
Withdrawal Charges
The contract provides a penalty-free withdrawal amount every contract year. Please see ACCESS TO YOUR MONEY above. You may incur a withdrawal charge if you take a withdrawal in excess of the penalty-free
withdrawal amount and/or if you fully surrender your contract. Withdrawal Charges
reimburse us for the cost of contract sales, expenses associated with issuing your contract and other acquisition expenses.
We apply a withdrawal charge schedule against each Purchase Payment you contribute to the contract.
After a Purchase Payment has been in the contract for 9 complete years if you elected
to participate in the Polaris Rewards program, a withdrawal charge no longer applies to that Purchase Payment. The withdrawal charge
percentage declines over time for each Purchase Payment in the contract. The withdrawal
charge schedules are as follows:
Withdrawal Charge without Polaris Rewards
Program:
| Years Since Purchase Payment Receipt |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
| Withdrawal Charge |
7% |
6% |
5% |
4% |
3% |
2% |
1% |
0% |
Withdrawal Charge with election of Polaris Rewards Program:
| Years Since Purchase
Payment Receipt |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10+ |
| Withdrawal Charge |
9% |
9% |
8% |
7% |
6% |
5% |
4% |
3% |
2% |
0% |
These higher potential withdrawal charges for the Polaris Rewards
program may compensate us for the expenses associated with the program.
The Polaris Rewards
program is designed for long term investing. We expect that if you remain committed to this investment over the long term, we will profit as a result of fees charged over the life of your
contract. However, other than the withdrawal charge, no other fees or charges are
higher if you elect Polaris Rewards than the contract without an election of this program.
When calculating the withdrawal charge, we treat withdrawals as coming first from the Purchase Payments that have been in your contract the longest, which means the Purchase Payments that have the lowest Withdrawal Charge percentages. However, for tax purposes,
per IRS requirements, your withdrawals are considered as coming first from taxable
earnings, then from Purchase Payments, which are not taxable if your contract is Non-Qualified. Please see ACCESS TO YOUR
MONEY above.
If you take a partial withdrawal, you can choose whether any applicable withdrawal charges are
deducted from the amount withdrawn or from the contract value remaining after the
amount withdrawn. If you fully surrender your contract value, we deduct any applicable withdrawal charges from the amount surrendered.
We will not assess a withdrawal charge when we pay a death benefit or when you annuitize your contract.
Withdrawals made prior to age 59½ may result in tax penalties. Please see TAXES below.
Underlying Fund Expenses
There are deductions from and expenses paid out of the assets of each Underlying Fund. Detailed information about these deductions and expenses can be
found in the prospectuses for the Underlying
Funds.
Investment Management Fees
Investment management fees are set by the Underlying Funds’ own board of directors, and may vary. These fees are not fixed or specified in your
annuity contract.
Each Variable Portfolio purchases shares of a corresponding Underlying Fund. The Accumulation Unit
value for each purchased Variable Portfolio share reflects the investment management
fees and other expenses of the corresponding Underlying Fund. These fees may vary. They are not fixed
37
or specified in
your annuity contract, rather the fees are set by the Underlying Funds’ own board of directors.
12b-1 Fees
Certain Underlying Funds available in this product assess a 12b-1 fee of 0.25% of the average daily
net assets allocated to those Underlying Funds. Over time these fees will increase the
cost of your investment.
There is an annualized 0.25% fee
applicable to Series II shares of AIM Variable Insurance Funds (Invesco Variable
Insurance Funds), Class 2 shares of American Funds Insurance Series, Class Service
Shares of Goldman Sachs Variable Insurance Trust, Class 3 shares of Seasons Series
Trust and SunAmerica Series Trust. This amount is generally used to pay financial
intermediaries for services provided over the life of your contract.
The 12b-1 fees compensate us for costs associated with the
servicing of these shares, including, but not limited to, reimbursing us for
expenditures we make to registered representatives in selling firms for providing services to contract Owners who are indirect beneficial Owners of these shares and for maintaining contract
Owner accounts.
There are deductions from and expenses
paid out of the assets of each Underlying Fund. Detailed information
about these deductions and expenses can be found in
the prospectuses for the Underlying Funds.
Contract Maintenance Fee
During the Accumulation Phase, we deduct a contract maintenance fee of $35 from your contract once per year on your contract anniversary. This charge compensates us for the cost of administering your contract.
The fee is deducted proportionately from your contract value on your contract
anniversary by redeeming the number of Accumulation Units invested in the Variable
Portfolios and the dollar amount invested in available Fixed Accounts which in total
equal the amount of the fee. If you withdraw your entire contract value, we will deduct
the contract maintenance fee from that withdrawal.
If your contract value is $50,000 or more on your contract anniversary date, we currently waive this fee. This waiver is subject to change without
notice.
Please see APPENDIX D — STATE CONTRACT AVAILABILITY AND/OR VARIABILITY for the
state-specific Contract Maintenance Fee.
Transfer Fee
| After 15 Transfers |
$25 |
We permit 15 free transfers between investment options each contract year. We charge you $25 for each additional transfer that contract year. The transfer fee compensates us for the cost of processing your
transfer.
In Pennsylvania and Texas, any transfer over the limit of 15 will incur a $10 transfer fee.
In Pennsylvania and Texas, any transfer over the limit of 15 will incur a $10 transfer fee.
Optional Income Protector Fee
Please see INCOME PROTECTOR above for a description of the Fees Associated with the Income Protector Program for contracts issued between November 2, 1998 and March 31, 1999.
Optional EstatePlus Fee
The annualized fee for the optional EstatePlus benefit is 0.25% of the average daily ending net
asset value allocated to the Variable Portfolio(s).
Premium Tax
Certain states charge the Company a tax on Purchase Payments that ranges from 0% to 3.5%. Some
states assess this premium tax when the contract is issued while other states only
assess the tax upon annuitization. The Company may advance any tax amount due, but we will deduct such amount from your contract value only when and if you begin the Income Phase
(annuitization).
Income Taxes
We do not currently deduct income taxes from your contract. We reserve the right to do so in the
future.
Reduction or
Elimination of Fees, Expenses and Additional Amounts Credited
Sometimes sales of contracts to groups of similarly situated individuals may lower our fees and
expenses. We determine which groups are eligible for this treatment. Some of the
criteria we evaluate to make a determination are size of the group; amount of expected
Purchase Payments; relationship existing between us and the prospective purchaser; length of time a group of contracts is expected to remain active; purpose of the purchase and whether that
purpose increases the likelihood that our expenses will be reduced; and/or any other
factors that we believe indicate that fees and expenses may be reduced.
The Company may make such a determination regarding sales to its employees, its affiliates’
employees and employees of currently contracted broker-dealers; its registered
representatives; and immediate family members of all of those described.
Payments in connection with distribution of the contract
Payments We Make
We make payments in connection with the distribution of the contracts that generally fall into the three categories below.
As a result of the payments that financial representatives may receive from us or other companies,
some financial representatives may have a financial incentive to offer you a new
contract in place of the one you already own. You
38
should consider
exchanging a contract you already own only if you determine, after comparing the features, fees, and risks of both contracts, that it is better for you to purchase the new contract rather than continue
to own your existing contract.
Commissions. Registered representatives of affiliated and unaffiliated broker-dealers (“selling
firms”) licensed under federal securities laws and state insurance laws sell the
contract to the public. The selling firms have entered into written selling agreements
with the Company and Corebridge Capital Services, Inc., the distributor of the
contracts. We pay commissions to the selling firms for the sale of your contract. The
selling firms are paid commissions for the promotion and sale of the contracts according to one or more schedules. The amount and timing of commissions will vary depending on the selling firm and
its selling agreement with us. For example, as one option, we may pay upfront
commission only, up to a maximum 7.00% of each Purchase Payment you invest (which may include promotional amounts we may pay periodically as commission specials). Another option may be a lower
upfront commission on each Purchase Payment, with a trail commission of up to a maximum 1.50% of contract value annually for the life of the contract.
The registered representative who sells you the contract typically receives a portion of the compensation we pay to his/her selling firm, depending on the
agreement between the selling firms and its registered representative and their
internal compensation program. We are not involved in determining your registered
representatives’ compensation.
Additional Cash Compensation. We may enter into
agreements to pay selling firms support fees in the form of additional cash
compensation (“revenue sharing”). These revenue sharing payments may be intended to reimburse the selling firms for specific expenses incurred or may be based on sales, certain assets under
management, longevity of assets invested with us and/or a flat fee. Asset-based
payments primarily create incentives to service and maintain previously sold contracts.
Sales-based payments primarily create incentives to make new sales of contracts.
These revenue sharing payments may be consideration for, among other things, product
placement/preference and visibility, greater access to train and educate the selling
firm’s registered representatives about our contracts, our participation in sales
conferences and educational seminars and for selling firms to perform due diligence on our contracts. The amount of these fees may be tied to the anticipated level of our access in that
selling firm.
We enter into such revenue sharing arrangements in our discretion and we may negotiate customized
arrangements with selling firms, including affiliated and non-affiliated selling firms
based on various factors. These special compensation arrangements are not offered to all selling firms and the terms of such arrangements may vary between selling firms depending on, among other
things, the
level and type of marketing and distribution support provided, assets under management and the
volume and size of the sales of our contracts.
If allowed by his or her selling firm, a registered representative or other eligible person may purchase a contract on a basis in which an additional
amount is credited to the contract. Please see REDUCTION OR ELIMINATION OF FEES, EXPENSES AND ADDITIONAL AMOUNTS CREDITED
above.
We provide a list of firms to whom we paid annual amounts greater than $15,000 under these revenue sharing arrangements in
2025 in the Statement of Additional Information which is available upon request.
Non-Cash Compensation. Some registered representatives and their supervisors may receive various types of non-cash compensation such as gifts, promotional items and entertainment in connection with our marketing
efforts. We may also pay for registered representatives to attend educational and/or
business seminars. Any such compensation is paid in accordance with SEC and FINRA
rules.
We do not assess a specific charge directly to you or your Separate Account assets in order to cover commissions and other sales expenses and incentives we
pay. However, we anticipate recovering these amounts from our profits which are derived
from the fees and charges collected under the contract. We hope to benefit from these revenue sharing arrangements through increased sales of our contracts and greater customer service support.
Revenue sharing arrangements may provide selling firms and/or their registered representatives with an incentive to favor sales of our contracts over other
variable annuity contracts (or other investments) with respect to which a selling firm
does not receive the same level of additional compensation. You should
discuss with your selling firm and/or registered representative how they are compensated for sales of a contract and/or any resulting real or
perceived conflicts of interest. You may wish to take such revenue sharing arrangements into account when considering or evaluating any recommendation
relating to this contract.
Payments We
Receive
We and our affiliates may directly or indirectly receive revenue sharing payments from the Trusts,
their investment advisors, subadvisors and/or distributors (or affiliates thereof), in
connection with certain administrative, marketing and other services we provide and related expenses we incur. The availability of these revenue sharing arrangements creates an incentive for
us to seek and offer Underlying Funds (and classes of shares of such Underlying Funds)
that pay us higher amounts. Other Underlying Funds (or available classes of shares) may have lower fees and better overall investment performance. Not all Trusts pay the same amount of revenue sharing.
Therefore, the
39
amount of fees we
collect may be greater or smaller based on the Underlying Funds you select.
We and our affiliates generally receive three kinds of payments described below.
Rule 12b-1 or Service Fees. We receive 12b-1 fees of up to 0.25% or service fees of up to 0.50% of the average daily net assets in certain Underlying Funds. These fees are deducted directly from the assets of the
Underlying Funds. Please see EXPENSES above.
Administrative, Marketing and Support Service Fees. We receive compensation of up to 0.70% annually based on assets under management from certain Trusts’ investment advisors, subadvisors and/or
distributors (or affiliates thereof). These payments may be derived, in whole or in
part, from the profits the investment advisor realizes on the investment management
fees deducted from assets of the Underlying Funds or wholly from the assets of the
Underlying Funds. Contract Owners, through their indirect investment in the Trusts,
bear the costs of these investment management fees, which in turn will reduce the return on your investment. The payments we receive are generally based on assets under management from certain
Trusts’ investment advisors or their affiliates and vary by Trust. Some
investment advisors, subadvisors and/or distributors (or affiliates thereof) pay us more than others. The amount may be significant.
Other Payments. Certain investment advisors, subadvisors and/or distributors (or affiliates thereof) may help
offset the costs we incur for marketing activities and training to support sales of the
Underlying Funds in the contract. These amounts are paid voluntarily and may provide such advisors, subadvisors and/or distributors access to national and regional sales conferences attended by our
employees and registered representatives. The amounts paid depend on the nature of the
meetings, the number of meetings attended, the costs expected to be incurred and the level of the advisor’s, subadvisor’s or distributor’s participation.
In addition, we (and our affiliates) may receive
occasional gifts, entertainment or other compensation as an incentive to market the
Underlying Funds and to cooperate with their marketing efforts. As a result of these payments, the investment advisors, subadvisors and/or distributors (or affiliates thereof) may benefit from
increased access to our wholesalers and to our affiliates involved in the distribution
of the contract.
Annuity Income Options
The Income Phase
What is the Income Phase?
During the Income Phase, we use the money accumulated in your contract to make regular payments to
you. This is known as “annuitizing” your contract. At this point, the
Accumulation Phase ends. You will no longer be able to take
withdrawals of
contract value and all other features and benefits of your contract will terminate, including your ability to surrender your contract.
Beginning the Income Phase is an important event. You
have different options available to you. You should
discuss your options with your financial
representative and/or tax adviser
so that together you may make the best decision for your particular circumstances.
When does the Income Phase begin?
Generally, you can annuitize your contract any time after your second contract anniversary
(“Annuity Date”) and on or before the Latest Annuity Date, defined below, by
completing and mailing the Annuity Option Selection Form to our Annuity Service
Center.
If you do not request to annuitize your contract
on the Annuity Date of your choice, your contract will be annuitized on the Latest
Annuity Date, except as specified below. For contracts issued prior to January 1, 2001, the Latest Annuity Date is defined as the first business day of the month following your 90th birthday
or 10 years after your contract issue date, whichever is later. For contracts issued on
or after January 1, 2001, your Latest Annuity Date is defined as the first business day of the month following your 95th birthday or 10 years after your contract issue date, whichever is later. If your
contract is jointly owned, the Latest Annuity Date is based on the older Owner’s
date of birth.
How do
I elect to begin the Income Phase?
You must select one of the annuity income payment options, listed
below, that best meets your needs by mailing a completed Annuity Option Selection Form to our Annuity Service Center. If you do not select an annuity income payment option, your contract will be
annuitized in accordance with the default annuity income payment option specified under
Annuity Income Options below.
What is the impact on the Death Benefit if
I annuitize?
Upon annuitizing the contract, the death benefit will terminate.
Please see DEATH BENEFITS above.
Can I extend the Accumulation Phase past the Latest Annuity Date?
If you do not begin the Income Phase earlier, annuity income payments must begin on your Latest Annuity Date. For contracts issued prior to January 1,
2001, with a Latest Annuity Date of age 90, we may offer you the opportunity to extend
your Accumulation Phase up to age 95 at our sole discretion. Currently, we allow extensions of the Accumulation Phase, in one-year increments (“Extension Periods”), provided your contract
is eligible for an Extension Period as described below upon your request. Accepting our
offer to extend the Accumulation Phase does not preclude you from requesting to
annuitize your contract prior to the end of the Extension Period. If you enter an Extension
40
Period, your
contract remains in the Accumulation Phase, you retain all current benefits, and can choose to surrender or annuitize in the future.
In accordance with the Company’s final settlement of a multi-state audit and market conduct examination, and other related state regulatory inquiries
regarding unclaimed property, if you qualify for Extension Periods you must notify us that you want to extend your Accumulation Phase.
If you do not notify us that you wish to enter an Extension Period, your contract will be annuitized on the Latest Annuity Date using the default option
specified below. You can elect a different Annuity Payout Option by completing and
mailing an Annuity Option Selection Form to our Annuity Service Center.
Extension Periods will not be offered beyond the first business
day of the month following your 95th birthday. If your Accumulation
Phase is extended to the first business day of the month following your 95th birthday but you have not selected an Annuity Payout Option by that date, we will automatically annuitize your contract
using the default option specified below.
We will contact you prior to your Latest Annuity Date to inform you of Extension Periods, if available. Currently, you may be eligible for an Extension
Period provided you do not have a Leveraged Death Benefit. A Leveraged Death Benefit is
determined as follows:
(1)
a withdrawal is taken after May 2, 2011 (unless taken as a systematic withdrawal of the RMD for this contract); and
(2)
the death benefit to contract value ratio is 300% or more, on the date we determine eligibility for an Extension Period.
If we determine you are not eligible for an Extension Period due
to having a Leveraged Death Benefit, as defined above, we will not allow any extensions of your Accumulation Phase, and your contract will be annuitized on the Latest Annuity Date. Subsequently, if we
determine you are no longer eligible for an Extension Period, we will then annuitize
your contract on the first business day of the month following the end of the current Extension Period in accordance with the default annuity income payment option specified below and in your contract. You
may select another annuity income payment option so long as you notify us in writing at
least 30 days prior to that date.
We reserve the right, at our sole discretion, to refuse to offer
Extension Periods, regardless of whether we may have granted Extension Periods in the past to you or other similarly situated contract Owners.
Annuity Income Options
You must send a written request to our Annuity Service Center to select an annuity income option. Once you begin receiving annuity income payments, you
cannot change your annuity income option. If you elect to receive annuity income
payments but do not
select an annuity income option, your annuity income payments shall be in accordance with
Option 4 for a period of 10 years; for annuity income payments based on joint lives,
the default is Option 3 for a period of 10 years. Generally, the amount of each annuity
income payment will be less with greater frequency of payments or if you chose a longer
period certain guarantee.
We base our calculation of annuity income payments on the life expectancy of the Annuitant and the
annuity rates set forth in your contract. In most contracts, the Owner and Annuitant
are the same person. The Owner may change the Annuitant if different from the Owner at any time prior to the Annuity Date. The Owner must notify us if the Annuitant dies before the Annuity Date and
designate a new Annuitant. If we do not receive a new Annuitant election, the Owner may
not select an annuity income option based on the life of the Annuitant.
If the contract is owned by a non-natural Owner, the Annuitant cannot be changed after the contract
has been issued and the death of the Annuitant will trigger the payment of the death
benefit.
If you elect a lifetime based annuity income option without a guaranteed period, your annuity income
payments depend on longevity only. That means that you may potentially not live long
enough to receive an annuity income payment. If you die before the first annuity income payment, no annuity income payments will be made.
Annuity Income Option 1 – Life Income Annuity
This option provides annuity income payments for the life of the Annuitant. Annuity income payments end when the Annuitant dies.
Annuity Income Option 2 – Joint and Survivor Life Income
Annuity
This option provides annuity income payments for the life of the Annuitant and for the life of another designated person. Upon the death of either person, we
will continue to make annuity income payments during the lifetime of the survivor.
Annuity income payments end when the survivor dies. For Qualified contracts, under
certain circumstances, the survivor’s annuity income payments may be limited based on the Internal Revenue Code.
Annuity Income Option 3 – Joint and Survivor Life Income Annuity with 10 or 20
Years Guaranteed
This option is similar to Option 2 above, with an additional guarantee of payments for at least 10
or 20 years, depending on the period chosen. If the Annuitant and the survivor die
before all of the guaranteed annuity income payments have been made, the remaining annuity income payments are made to the Beneficiary under your contract. A guarantee of payments greater than 10
years may not be available to all Beneficiaries. For Qualified contracts, under
41
certain
circumstances the survivor's annuity income payments may be limited based on the Internal Revenue Code.
Annuity Income Option 4 – Life Income Annuity with 10 or 20 Years
Guaranteed
This option is similar to income Option 1 above with an additional guarantee of payments for at
least 10 or 20 years, depending on the period chosen. If the Annuitant dies before all
guaranteed annuity income payments are made, the remaining annuity income payments are made to the Beneficiary under your contract. A guarantee of payments greater than 10 years may not be
available to all Beneficiaries. For Qualified contracts, under certain circumstances
the Beneficiary’s annuity income payments may be limited based on the Internal Revenue Code.
Annuity Income Option 5 – Income for a Specified
Period
This option provides annuity income payments for a guaranteed period ranging from 5 to 30 years,
depending on the period chosen. If the Annuitant dies before all the guaranteed annuity
income payments are made, the remaining annuity income payments are made to the
Beneficiary under your contract. A guarantee of payments for more than 10 years may not
be available to all Beneficiaries. For Qualified contracts, under certain circumstances
the Beneficiary’s annuity income payments may be limited based on the Internal Revenue Code. Additionally, if variable annuity income payments are elected under this option, you (or the
Beneficiary under the contract if the Annuitant dies prior to all guaranteed annuity income payments being made) may redeem any remaining guaranteed variable annuity income payments after the
Annuity Date. Upon your request, the contract may be commuted if a period certain
annuitization income option has been elected. The amount available upon such redemption
would be the discounted present value of any remaining guaranteed annuity income payments that would reflect the fluctuating trading costs for liquidating the securities in place to pay for these
contractual obligations. The detrimental impact depends on the nature of the securities
(and which may include short-term, medium term, and/or long-term investments) resulting in varying losses to the Company.
The value of an Annuity Unit, regardless of the option chosen, takes into account Base Contract
Expense which includes a mortality and expense risk charge. Since Option 5 does not
contain an element of mortality risk, no benefit is derived from this charge.
Please see the Statement of Additional Information for a more detailed discussion of the annuity
income options.
Fixed
or Variable Annuity Income Payments
You can choose annuity income payments that are fixed, variable
or both. Unless otherwise elected, if at the date when annuity income payments begin you are invested in
the Variable
Portfolios only, your annuity income payments will be variable and if your money is only in Fixed Accounts at that time, your annuity income payments will be fixed in amount. Further, if you are invested in
both Fixed Accounts and Variable Portfolios when annuity income payments begin, your
payments will be fixed and variable, unless otherwise elected. If annuity income payments are fixed, the Company guarantees the amount of each payment. If the annuity income payments are variable, the
amount is not guaranteed and may fluctuate as described under ANNUITY
INCOME PAYMENTS below.
Annuity Income Payments
We make annuity income payments on a monthly, quarterly, semi-annual or annual basis as elected by you. You instruct us to send you a check or to have the
payments directly deposited into your bank account. If state law allows, we distribute
annuities with a contract value of $5,000 or less in a lump sum. Also, if state law allows and the selected annuity income option results in annuity income payments of less than $50 per payment, we may
decrease the frequency of payments.
If you are invested in the Variable Portfolios after the Annuity Date, your annuity income payments
vary depending on the following:
•
for life income options, your age when annuity income payments begin; and
•
the contract value attributable to the Variable Portfolios on the Annuity Date; and
•
the 3.5% assumed investment rate used in the annuity table for the contract; and
•
the performance of the Variable Portfolios in which you are invested during the time you receive
annuity income payments.
If you are invested in both the Fixed Accounts and the Variable Portfolios after the Annuity Date, the allocation of funds between the Fixed Accounts and
Variable Portfolios also impacts the amount of your annuity income payments.
The value of fixed annuity income payments, if elected, will not be less than 1%. The value of
variable annuity income payments, if elected, is based on an assumed interest rate
(“AIR”) of 3.5% compounded annually. Variable annuity income payments
generally increase or decrease from one annuity income payment date to the next based upon the performance of the applicable Variable Portfolios. If the performance of the Variable Portfolios
selected is equal to the AIR, the annuity income payments will remain constant. If
performance of Variable Portfolios is greater than the AIR, the annuity income payments will increase and if it is less than the AIR, the annuity income payments will decline.
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Deferment of Payments
We may defer making fixed payments for up to six months, or less if required by law. Interest is credited to you during the deferral period. Please see ACCESS TO YOUR MONEY above for a discussion of when
payments from a Variable Portfolio may be suspended or postponed.
Taxes
The federal income
tax treatment of annuity contracts or retirement programs is complex and sometimes
uncertain. The discussion below is intended for general informational purposes only and
is not intended as tax advice, either general or individualized, nor should be interpreted as providing any
predictions or guarantees of a particular tax treatment. This discussion is based upon the Company’s understanding of current tax rules and interpretations. Finally, this discussion does not address all federal income tax consequences of transactions (including consequences of sales to foreign individuals or entities), state or local tax consequences, estate or gift tax consequences, or the impact of foreign tax laws, associated with
your contract.
Tax laws are subject to legislative modification, and while many such modifications will have only a
prospective application, it is important to recognize that a change could have a
retroactive effect as well. As a result, you should consult a tax adviser about the application of tax rules found in the Internal Revenue Code of 1986, as amended (“IRC” or “the
Code”), Treasury Regulations,
applicable Internal Revenue Service (“IRS”) guidance,
and any regulatory developments to your individual situation. We do not guarantee the tax status or treatment of your annuity contract.
Tax rules vary, depending on
whether the contract is offered under your employer-sponsored retirement program or
arrangement, an individual retirement account or annuity
(a
Qualified contract), or a Non-Qualified
contract.
The contracts are used under many types of
retirement arrangements, including the following:
•
IRC section 403(b) annuities for employees of public schools, community colleges, colleges and universities, and other section 501(c)(3) tax-exempt organizations;
•
IRC section 401(a), 403(a), and 401(k) qualified plans (including plans for self-employed individuals);
•
IRC section 408(b) traditional IRAs;
•
IRC section 408A Roth IRAs;
•
IRC section 457 deferred compensation plans of governmental and certain tax-exempt employers;
•
IRC section 408(k) SEPs and SARSEPs; and
•
IRC section 408(p) SIMPLE retirement accounts.
Contracts
purchased under these retirement arrangements described above (“Qualified Arrangement”) generally are referred to in this prospectus as “Qualified contracts.” Contracts that are not
purchased in connection with a Qualified Arrangement generally are referred to in this
prospectus as “Non-Qualified contracts.” Note that there are certain types
of plans that are referred to as non-qualified, e.g. non-qualified deferred compensation plans under IRC section 457, that, for purposes of this prospectus, are considered Qualified Arrangements. See below
for further details.
Non-Qualified Contracts
Tax Status of Non-Qualified Contracts
In General
Generally, the increases in the value of a contract are not taxed until a distribution occurs. The taxable portion of the distribution is taxed at ordinary income tax rates. However, this tax deferral is only available if the contract satisfies certain federal tax rules and
requirements, described next. We do not guarantee the tax status or treatment of your contract. The remainder of the discussion assumes that the contract will be treated as an annuity contract for federal income tax purposes.
Late Annuity Start Date
If the contract’s annuity start date occurs (or is scheduled to occur) at a time when the
Owner has reached an advanced age, it is possible that the contract would not be
treated as an annuity for federal income tax purposes. In that event, the income and
gains under the contract could be currently includable in the Owner’s income.
Diversification
For a contract to be treated as a variable annuity for federal income tax purposes, the underlying investments under the variable annuity must be “adequately
diversified”. Treasury Regulations provide standards that must be met to comply
with the rules. Under the regulations, an investment portfolio will be deemed
adequately diversified if (1) no more than 55% of the value of the total assets of the
portfolio is represented by any one investment; (2) no more than 70% of the value of
the total assets of the portfolio is represented by any two investments; (3) no more than 80% of the value of the total assets of the portfolio is represented by any three investments; and (4)
no more than 90% of the value of the total assets of the portfolio is represented by
any four investments.
If the variable annuity fails to comply with these diversification standards, you could be required to pay tax currently on the excess of the contract
value over the contract Purchase Payments. We expect that the manager of the Underlying
Funds monitors the Underlying Funds to comply with these Treasury Regulations.
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Investor Control
Under certain circumstances, you, and not the Company, could be treated as the owner of the assets
held in the Separate Account under your Non-Qualified contract, based on the degree of
control you exercise over the underlying investments. If this occurs, you may be currently taxed on income and gains attributable to the assets under the contract rather than at the time of
withdrawal.
There is little guidance in this area, and the determination of whether you possess sufficient
incidents of ownership over such assets depends on all of the relevant facts and
circumstances. However, Revenue Rulings 2003-91 and 2003-92 provide that an annuity
owner’s ability to choose among general investment strategies either at the time of
the initial purchase or thereafter, does not constitute control sufficient to cause the
contract holder to be treated as the owner of such assets. The Revenue Rulings provide that if, based on all the facts and circumstances, you do not have direct or indirect control over such assets, then you do not possess sufficient incidents of ownership over the assets supporting the annuity to be deemed the owner of the assets for federal income tax purposes. We do not know what limits may be set by the IRS in any future guidance that it may issue and whether such limits will apply to existing contracts.
While we believe the contract does not give you investor control over such assets, we reserve the right to modify the contract as necessary to prevent you from being considered as the owner of the assets of the contract for purposes of the Code.
Non-Natural Owners
A trust or
corporation or other Owner that is not a natural person (“Non-Natural Owner”) should consult a tax adviser. Generally, the Code does not confer tax-deferred status upon a Non-Qualified contract owned by a Non-Natural Owner for federal income tax purposes. Instead in such cases, the Non-Natural Owner pays tax each year on the
contract’s “income on the contract” (as defined in the tax law). However, certain exceptions may apply, such as for contracts held by a trust or other entity as an agent for a natural person or contracts held by
certain employer sponsored retirement arrangements. If an exception applies, the
entity’s general interest deduction under the Code may be limited. Finally, certain non-qualified deferred compensation plans are subject to special tax rules. Please consult a tax advisor if you are a Non-Natural Owner of a contract.
Tax Treatment of Purchase Payments
Purchase Payments paid to a Non-Qualified contract are
neither excludible from the gross income of the contract Owner nor deductible for tax
purposes. In general, your cost basis in a Non-Qualified contract is equal to the
Purchase
Payments you put into the contract less any amounts previously received from the contract that were not includible in income.
Tax Treatment of Distributions
Partial Withdrawals
If you make a partial withdrawal from a Non-Qualified contract, the IRC generally treats such withdrawals as taxable to the extent your contract value before the withdrawal
(determined before the application of any surrender charge) exceeds your cost basis. Partial withdrawals from a Non-Qualified contract that has Purchase Payments made before August 14, 1982, are an important exception to this general rule and are treated as first coming from the pre-August 14, 1982 Purchase Payments.
Amounts received under an automatic withdrawal plan are treated as withdrawals and not annuity payments for purposes of calculating taxable income.
Optional Living Benefits/Other Benefits
Generally, we will treat amounts credited to the contract value under the optional Living Benefit guarantees, for income tax purposes,
as earnings in the contract. Thus, payments of Living Benefits are treated as taxable withdrawals to the extent there are taxable gains in the contract value. Payments in accordance with
such guarantees after the contract value has been reduced to zero may be treated for
tax purposes as amounts received as an annuity, if the other requirements for such
treatment are satisfied. All payments or withdrawals after cost basis has been reduced to zero, whether or not under such a guarantee, will be treated as taxable amounts. If available and you
elect an optional Living Benefit, the application of certain tax rules, including those
rules relating to distributions from your contract, are not entirely clear.
Such benefits are not intended to adversely affect the tax treatment of distributions or of the contract. However, you should be aware that little guidance is available. You should
consult a tax adviser before electing an optional Living Benefit.
Full Surrenders
In the case of a full surrender of a Non-Qualified
contract, the amount received on surrender is taxable to the extent it exceeds the cost
basis.
Assignments and Gratuitous Transfers
If you transfer ownership of your Non-Qualified contract to a person other than your spouse (or former spouse incident to a
divorce) you will owe federal income tax on the contract’s cash surrender value to the extent it exceeds your cost basis. The
transferee’s cost basis will be increased to reflect the amount
the transferor includes in income.
44
An
assignment or pledge (or agreement to assign or pledge) of any portion of a Non-Qualified contract will be treated as a withdrawal. If the entire contract value is assigned or pledged, subsequent increases in the contract value are also treated as withdrawals for
as long as the assignment or pledge remains in place. The cost basis is increased by
the amount included in income with respect to such assignment or pledge.
Aggregation Rule
If you purchase multiple non-qualified annuity contracts from the same
insurance company (or its affiliates), within the same calendar year, the IRS generally requires these annuity contracts to be aggregated and treated as a single contract for purposes of determining the taxable income associated with any distribution taken from the contracts for tax purposes. For purposes of this rule, contracts received in a Section 1035 exchange will be considered issued
in the year of the exchange. (However, the contracts may be treated as issued on the
issue date of the contract being exchanged, for certain purposes, including determining
whether the contract is an immediate annuity contract.) Aggregation impacts the amount
of the distributions described above that is subject to taxation (and potentially
subject to the 10% additional tax, if applicable). Owners should seek their own tax advice if you are purchasing more than one annuity from the same
insurance company (or its affiliates)
in the same calendar year.
Annuity Payments
If you annuitize your Non-Qualified contract, a portion of each annuity income payment will be considered, for tax purposes, to be a return of a portion of
your cost basis. The portion of each annuity income payment that is considered a return
of your cost basis will not be taxed. Your annuity income payment will be considered fully taxable after you have received a return of the entire amount of your cost basis.
Death Benefits
The taxable amount of any death benefits paid under the contract are taxable to the Beneficiary. The rules governing the taxation of payments from a
Non-Qualified annuity contract, as discussed above, generally apply whether the death
benefit is paid as lump sum or annuity income payments. Estate taxes may also apply.
Enhanced death benefits (if applicable to your contract) are used as investment protection and are not expected to give rise to any adverse tax effects. However,
the IRS could take the position that some or all the charges for these death benefits
should be treated as a partial withdrawal from the contract. In that case, the amount of the partial withdrawal may be includible in taxable income and subject to the 10% additional tax if the Owner is under
59½, unless another exception applies. You should consult your tax adviser
regarding these features and benefits prior to purchasing a contract.
Upon death, any remaining amounts in the contract must be distributed in accordance with the
requirements under the Code. For deaths that occur after the contract’s annuity
start date, payments under the annuity option elected will continue to be paid at least
as rapidly as under the method of distribution in effect at such Owner’s death. For deaths that occur prior to the contract’s annuity start date, the entire interest in the contract can
be paid in one of the following manner:
1.
Lump sum payment of the death benefit.
2.
Payment of the entire death benefit within five years of the date of any Owner’s death.
3.
Payment of the death benefit over the lifetime of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary. Under this
option, distributions must begin within one year of the date of any Owner’s
death. Note - This option is not available for a Beneficiary that is a non-natural
person.
4.
Spousal Option Only. The spousal Beneficiary can elect to treat the annuity contract as their own.
Special rules apply
if the Owner is a non-natural person, where the annuitant is generally treated as the Owner.
10% Additional Tax
The taxable portion of any distribution, whether annuity income payment or other withdrawal, prior to the Owner reaching age 59½ is subject to a 10% additional
tax unless an exception applies. Some of the main exceptions include:
•
when paid to your Beneficiary after you die;
•
after you become permanently disabled (as defined in the IRC);
•
when paid as a part of a series of substantially equal periodic payments (not less frequently than
annually) made for your life (or life expectancy) or the joint lives (or joint life
expectancies) of you and your designated Beneficiary;
•
under an immediate annuity contract; or
•
when attributable to Purchase Payments made prior to August 14, 1982.
Other exceptions may available depending on contract type and your circumstances. Please consult your tax advisor or
www.irs.
gov for more information.
Net Investment Income Tax
There is a 3.8% tax on
net investment income for Owners with Modified Adjusted Gross Income (“MAGI”) that exceeds certain thresholds based on the type of filer.
Further information may be found on www.irs.gov. For this
purpose, net investment income generally will include taxable distributions from a Non-Qualified contract.
It is also possible the tax could apply to other taxable amounts relating to your Non-Qualified contract. Please consult your tax advisor. This tax generally does not apply to Qualified
45
contracts; however, taxable distributions from such contracts may be considered in determining the MAGI threshold.
Tax Treatment of Exchanges
The Non-Qualified contract may be issued in exchange for all or part of another annuity contract
that you own. In addition, the contract Owner may be permitted to exchange the contract
for a new annuity contract prior to the commencement of annuity income payments. A full or partial exchange of one annuity contract for another is a tax-free transaction under IRC section
1035, provided that the requirements of that section are satisfied. Please note that
the exchange may be tax reportable. If you exchange part of an existing annuity contract for another annuity contract, and within 180 days of the exchange you receive a distribution other than certain annuity
payments, the exchange may not be tax free. You should consult a tax advisor when
exchanging part or all of an annuity contract.
Qualified Contracts
In General
Qualified contracts taxation varies with the type of plan and terms and conditions of each specific
plan. You will get no additional tax advantage from this contract if you are investing
through a Qualified contract beyond the treatment provided to alternative qualifying arrangements such as trusts or custodial accounts. However, in both cases the contract offers features and benefits that
other investments may not offer. You and your financial representative should carefully
consider whether the features and benefits, including the investment options, lifetime annuity income options, protection through Living Benefits, death benefits and other benefits provided under an annuity contract issued in connection with a Qualified contract are suitable for your needs and objectives and are
appropriate in light of the expense.
The terms of the plan may limit the rights otherwise available under the contracts. The Code and, if applicable, your contract or Qualified Arrangement,
may have limitations and restrictions such as: the amount that can be contributed; the
form, manner and timing of distributions; vesting and non-forfeitability of interests; nondiscrimination in eligibility and participation; and the tax treatment of distributions, withdrawals and
surrenders. Some of these limitations are adjusted annually. Please see www.IRS.gov or
consult your tax advisor.
The following are general summary descriptions of the types of Qualified Arrangements with which the
Qualified contracts may be used. Not all plan types will be available under your
contract. Descriptions of such arrangements are not exhaustive and are for general information purposes only. The tax rules regarding Qualified Arrangements are very complex and will have differing
applications depending on individual facts and circumstances. Each prospective
purchaser should obtain competent tax advice prior to purchasing a contract issued
under a qualified plan.
Note that
the Company no longer issues new Qualified contracts other than IRAs, SEP IRAs, or ROTH IRAs.
Plans of Self-Employed Individuals: “H.R. 10 Plans”
Section 401 of the Code permits self-employed individuals to establish qualified plans for
themselves and their employees, commonly referred to as “H.R. 10” or “Keogh” Plans.
Pension and Profit Sharing Plans
401(a)/401(k)
The Code permits certain employers to establish various types of retirement plans, including 401(k)
plans, for employees. These retirement plans may permit the purchase of the Qualified
contracts to provide benefits under the plan. Contributions to the contracts will be restricted by the Code and the terms of the plan.
Tax-Sheltered Annuity (403(b))
Section 403(b) of the Code permits the purchase of “tax-sheltered annuities” by public
educational institutions and tax-exempt organizations described in Section 501(c)(3) of
the Code.
Treasury regulations include several rules and requirements, such as a requirement that employers
maintain their 403(b) plans pursuant to a written plan. The regulations, subsequent IRS
guidance, and the terms of the written plan may impose restrictions on both new and existing Qualified contracts, including restrictions on the availability of loans, distributions, transfers and
exchanges, regardless of when a contract was purchased.
In general, certain contracts originally established by
a IRS Revenue Ruling 90-24 transfer prior to September 25, 2007 are exempt (or
grandfathered) from some of the requirements of the regulations; provided that no salary
reduction or other contributions have ever been made to the contract, and that no
additional transfers are made to the contract on or after September 24, 2007.
Effective January 1, 2009 the Company no longer accepts new Purchase Payments (including
contributions, transfers and exchanges) into new or existing 403(b) annuities.
Traditional Individual Retirement Annuities (IRA), SEP IRA, or Roth IRA
The IRA Disclosure Statement, ROTH IRA Disclosure Statement, or Traditional, SEP, and Roth Individual Retirement Annuity (IRA) Combined Disclosure
Statement which was received at the time of original issue of your IRA, SEP IRA or Roth
IRA contains information about eligibility, contribution limits, distribution restrictions and other tax information. For further information about contributions and distributions from your IRA,
please see Publications 590-A and 590-B on the IRS website at www.irs.gov.
Traditional Individual Retirement Annuities
Section 408(b) of the Code permits eligible individuals
to contribute to an individual retirement program known as a traditional IRA. Under
applicable limitations, certain
46
amounts
(adjusted annually) may be contributed to an IRA. Such contributions may be deductible, depending on your modified gross income.
Roth IRAs
Section 408A of the Code permits an individual to contribute to an individual retirement account
called a Roth IRA. Contributions to a Roth IRA are not deductible, but distributions
are tax-free if certain requirements are satisfied. Unlike traditional IRAs, to which everyone can contribute even if they cannot deduct the full contribution, Roth IRAs have income limitations on
who can make regular cash contributions.
Simplified Employee Pension Plan
(“SEP”) IRA
Sole proprietors, partnerships, and corporations, including S corporations, can set up SEPs.
Employer contributions under a SEP are made to a separate IRAs established for each
participating employee, and generally must be made at a rate representing a uniform
percent of participating employees’ compensation. Through 1996, employees of
certain small employers (other than tax-exempt organizations) were permitted to
establish plans allowing employees to contribute pretax, on a salary reduction basis,
to the SEP (known as SARSEPs).
Deferred Compensation Plans —
Section 457
A unit of a state or local government may establish a deferred compensation program for individuals
who perform services for the government unit if permitted by applicable state (and/or
local) laws. In addition, a non-governmental tax-exempt employer may establish a deferred compensation program for individuals who: (i) perform services for the employer, and (ii) belong to either a
select group of management or highly compensated employees or, if provided under the
deferred compensation arrangement, independent contractors.
The employer uses deferred amounts to purchase the
contracts offered by this prospectus. For plans maintained by a unit of a state or
local government, the contract is generally held for the exclusive benefit of plan Participants. For plans of non-governmental tax-exempt employers, the employee has no present ownership rights in
the Contract and is entitled to payment only in accordance with the eligible deferred
compensation plan (an “EDCP”) provisions and, where applicable, any trust under which the contract may be held. Non-governmental 457 plan assets must remain assets of the employer and are subject to
claims by the creditors of the employer.
Under these plans, contributions made for the benefit of the employees will not be includible in the employees’ gross income until distributed from, or if
a non-governmental tax-exempt employer, otherwise made available to the
recipient.
Tax Treatment of Purchase Payments
For employer-sponsored arrangements, Purchase Payments under Qualified contracts can be made as contributions by employers or as pre-tax or after-tax contributions by employees, depending on the type of retirement program. For IRAs, Purchase Payments also can be made as a pre-tax or after-tax
contribution. If you make contributions on a pre-tax basis, then you have no cost basis in your contract. However, you normally will have cost basis in a Roth IRA,
a designated Roth account in a 403(b), 401(k), or governmental 457(b) plan, and you may have cost basis in a non-deductible traditional IRA or in another Qualified contract.
Limitations and restrictions may apply to Purchase Payments. Please refer to www.IRS.gov for further information, as these limitations and restrictions
may be based on several factors.
Various penalty and excise taxes may apply to contributions made in violation of applicable contribution limits. You should consult a qualified tax advisor
associated with any questions related to the contribution to or transfer from an
employer sponsored retirement plan or arrangement, IRA, or Roth IRA.
Tax Treatment of Distributions
Distributions from Qualified contracts,
other than IRAs and Roth IRAs, are often limited by the IRC and by the terms of the employer-sponsored retirement plan. In
some cases, distributions are not available unless there has been a distributable event
as defined by the terms of the plan. All distributions are tax at ordinary income tax rates. Various penalty taxes may apply to distributions made in violation of applicable requirements. Furthermore,
certain contractual withdrawal penalties and restrictions may apply to surrenders from
Qualified contracts. You should consult a qualified tax advisor associated with any questions related to the distribution or transfer from an employer sponsored retirement plan or arrangement, IRA, or Roth IRA.
Non-Roth Qualified Contracts. Distributions from Qualified contracts other than Roth IRAs and designated Roth accounts (described below) are taxable, except to
the extent allocable to after-tax contributions or non-deductible traditional IRA
contributions.
Roth IRAs and Designated Roth Accounts. “Qualified”
distributions from Roth IRAs and Designated Roth Accounts upon attainment of age
59½, upon death or disability, or for qualifying first-time homebuyer expenses (Roth IRAs only) are tax-free as long as five or more years have passed since the first contribution to the
taxpayer’s first Roth IRA or Designated Roth Account. Qualified distributions may be subject to state income tax in some states. Special tax rules will apply to distributions that are
not qualified and such distributions are generally subject to the same 10% additional
tax on amounts included in income as for other IRAs. Distributions of rollover or conversion contributions
47
may be
subject to a 10% additional tax if the distribution of those contributions is made within five years of the rollover or conversion.
Designated Roth and Roth IRA
Conversions. All persons may be eligible to convert a distribution from an employer-sponsored plan or from a traditional IRA into a Roth IRA. Conversions from qualified
contracts into Roth IRAs normally require taxes to be paid in the year of the
conversion on any previously untaxed amounts included in the amount converted. The
taxable value of such a conversion may consider the value of certain benefits under the
contract.
457 Plans.Amounts received from an EDCP are includible in gross income for the taxable year in which they are paid or, if a non-governmental tax-exempt
employer, otherwise made available to the recipient.
Annuitization. If you annuitize your Qualified contract, special tax rules apply to determine the taxable amount
of your annuity income payment depending on your Qualified Arrangement. Please consult
your tax advisor.
10% Additional Tax. You should consult your tax adviser as to the availability of an exemption from, or reduction of, such tax under an applicable income
tax treaty, if any. The taxable portion of any distribution, whether annuity income payment or other withdrawal, prior to the Owner of a Qualified contract
reaching age 59½ is subject to a 10%
additional tax unless an exception applies. Some of the main exceptions include:
•
when paid to your Beneficiary after you die;
•
after you become permanently disabled (as defined in the IRC); and
•
as a part of a series of substantially equal periodic payments (not less frequently than annually)
made for your life (or life expectancy) or the joint lives (or joint expectancies) of
you and your designated Beneficiary.
Other exceptions may be applicable under certain circumstances. In addition, you may be able to
repay certain distributions if certain requirements are satisfied. Distributions
from a SIMPLE IRA within two years after first participating in the Plan may be subject to a 25% additional tax, rather than a 10%
additional tax.
Direct and Indirect Rollovers
A rollover distribution, including eligible rollover distributions as defined below, from an IRA,
403(b) TSA, qualified plan or governmental 457(b) deferred compensation plan may
generally be rolled over into another IRA, 403(b) TSA, qualified plan or governmental
457(b) deferred compensation plan, if permitted by the plan.
An eligible rollover distribution is the taxable portion of any amount received by a covered
employee from a retirement plan qualified under Sections 401(a) or 403(a) or, if from a
plan of a governmental employer,
under Section 457(b) of the Code, or
from a
tax-sheltered annuity qualified under Section 403(b) of the Code. Generally, certain types of distributions are not considered eligible rollover distributions, such as distributions received on account of:
a.
a required minimum distribution,
b.
a hardship withdrawal, or
c.
a series of substantially equal payments (at least annually) made over your life expectancy or the joint life expectancies of you and your designated
Beneficiary, or a distribution made for a specified period of 10 years or more.
A rollover distribution (including an eligible rollover
distribution) may be transferred as a direct or indirect rollover. In a direct
rollover, the funds are directly transferred from one Qualified Arrangement to another. In an indirect rollover, the individual receives a distribution from the Qualified Arrangement and
reinvests it in another Qualified Arrangement within 60 days of the distribution. For
indirect rollovers, you must include in your income for the year the taxable amount of any portion of the distribution that you do not roll over. An indirect rollover of an eligible rollover distribution
will be subject to a mandatory 20% withholding tax (described
below).
Individuals are only permitted to make one indirect rollover from an
IRA to another IRA in any one-year period. It is important to note that the one rollover per year
limitation does not apply to amounts taken as an eligible rollover distribution from an employer sponsored retirement arrangement or from amounts transferred directly between IRAs in a trustee-to-trustee
transfer.
Funds may generally be rolled over tax-free from a SIMPLE IRA to another IRA. However, during the two-year period beginning on the date you first participate
in any SIMPLE IRA plan of your employer, SIMPLE IRA funds may only be rolled to another
SIMPLE IRA.
You should always consult your tax adviser before you move or attempt to move any
funds.
Tax Treatment of Death
Benefits
The taxable
amount of any death benefits paid under the contract are taxable to the Beneficiary.
The rules governing the taxation of payments from an annuity contract, as discussed above,
generally apply whether the death benefit is paid as lump sum or annuity income
payments. Estate taxes may also apply.
Enhanced death benefits (if applicable to your contract) are used as investment protection and are not expected to give rise to any adverse tax effects.
However, the IRS could take the position that some or all the charges for these death
benefits should be treated as a partial withdrawal from the contract. In that case, the amount of
the partial withdrawal may be includible in taxable income and subject to the
10% additional tax described above if the Owner is under 59½,
48
unless
another exception applies. The IRS may consider these benefits “incidental death benefits” or “life insurance.” You should consult your tax adviser regarding these features and benefits prior to purchasing a Qualified contract. See below for required distributions after the death of the Owner.
Required Minimum Distributions
Your required minimum distribution (RMD) is the minimum amount you must withdraw from your Qualified Arrangement each year after your required beginning date. The RMD rules do not apply to Roth
IRAs or designated Roth accounts when the Owner is alive.
Failure to satisfy the minimum distribution requirements may result in an excise tax. A 25% excise tax may be assessed on any RMD that is required but not taken timely.
However, if the late RMD is taken within a two-year period, the penalty may be reduced to 10% if certain conditions are satisfied. You should consult your tax adviser for more information.
Required Beginning Date
Generally, the IRC requires that you begin taking annual distributions from Qualified contracts by December 31 of the calendar year
in which you attain the “applicable age”:
•
Age 75 if you were born January 1, 1960 or later.
•
Age 73 if you were born on or after January 1, 1951, and before January 1, 1960.
•
Age 72 if you were born on or after July 1, 1949, and before January 1, 1951.
•
Age 70 ½ if you were born before July 1, 1949.
For employer sponsored retirement plans, you must begin
distributions on the later of (1) reaching the applicable age, or (2) the calendar year in which you sever employment from the employer sponsoring the plan.
You may choose to delay your first distribution until April 1 of the calendar year following in which you reach the applicable age or sever employment, as applicable. However, if you
choose to delay your first distribution, you will be required to withdraw your second
RMD on or before December 31 in that same year. For each year thereafter, you must withdraw your RMD by December 31.
For 403(b) contracts, amounts accumulated under a Contract on December 31, 1986, may be subject to
special distribution rules.
Combining Distributions from Multiple Qualified Contracts
If you own more than one IRA, you may be permitted to take your RMD in any combination from your IRAs. A similar rule applies if you own more than one 403(b) account, unless the plan, contract, or account otherwise provides. However, you cannot satisfy this distribution requirement for your IRA contract by taking a
distribution
from a 403(b) account, and you cannot satisfy the requirement for your 403(b) account by taking a
distribution from an IRA.
Automatic Withdrawal Option
If available, you may elect to have the RMD amount for your contract calculated and withdrawn each year under the automatic withdrawal option. You may
select monthly, quarterly, semiannual, or annual withdrawals for this purpose. This
service is provided as a courtesy, and we do not guarantee the accuracy of our calculations.
Impact of Optional Benefits
The annuity contract value used to determine RMDs includes the actuarial present value of other benefits under the Qualified contract, such as enhanced death benefits and/or Living Benefits. As a result, if you request a
minimum distribution calculation, or if one is otherwise required to be provided, in
those specific circumstances where this requirement applies, the calculation may be based upon a value that is greater than your contract value, resulting in a larger RMD. This does not
apply to RMDs made under an irrevocable annuity income option.
We recommend you consult your tax adviser concerning your required minimum distribution.
Required After Death Distributions
Upon death, any remaining amounts in the Qualified contract must be distributed in accordance with the requirements under the IRC. The timing of these distributions will depend on whether the death occurs before the Owner was required to take RMDs, the type of Beneficiary,
and the Beneficiary’s relationship to the deceased Owner. The
information provided below applies to Owners who die after 2019 (after 2021 for certain
governmental and collectively bargained retirement plans). For Owners’ deaths prior to such dates, individuals should consult a tax advisor regarding the applicable after-death distribution requirements.
Eligible designated Beneficiaries (“EDB”) are generally a natural person designated as a
Beneficiary (“designated beneficiaries”) who are also:
•
the surviving spouse of the Owner; or
•
an individual who is not more than ten years younger than the Owner.
If the Beneficiary is an EDB, the entire amount in the contract
generally must be paid to the EDB:
•
if the owner had not reached their required beginning date for RMDs
○
within 5 years after the owner’s death, or
○
by December 31st of the year following the year of death and be paid over the lifetime or single life expectancy of the EDB; or
49
•
if the owner had reached their required beginning date for RMDs, payments must continue at least as
rapidly as was required for the Owner and all amounts must be distributed within 5
years of the owner’s death.
Exceptions to this
rule may apply in the case of an EDB who is also the Owner’s spouse.
If a Beneficiary is a designated beneficiary, the entire amount in the Contract must be distributed
either:
•
if the Owner had not reached their required beginning date for RMDs, within 5 years after the owner’s death, or
•
if the Owner had reached their required beginning date for RMDs, payments must continue at least as rapidly as was required for the Owner and all amounts must be distributed within 5 years of the owner’s death.
If the Beneficiary is not a designated beneficiary or an EDB, the Beneficiary must receive the entire amount in the contract:
•
if the Owner had not reached their required beginning date for RMDs, within 5 years after the owner’s death, or
•
if the Owner had reached their required beginning date for RMDs, payments must continue at least as rapidly as was required for the Owner.
Additional rules, requirements, and exceptions may apply. Please
consult a tax advisor.
Gifts, Pledges, Assignments of and/or Loans from a Qualified Contract
Qualified contracts are prohibited from being transferred, assigned or pledged as security for a
loan. This generally does not apply to loans under an employer-sponsored retirement plan (including loans from the annuity contract) that satisfy certain requirements,
provided that the plan is not an unfunded deferred compensation plan. Another exception
to this rule includes an assignment pursuant to a domestic relations order meeting the requirements of the plan or arrangement under which the contract is issued (for many plans, a Qualified Domestic
Relations Order, or “QDRO”), or, in the case of an IRA, pursuant to a
decree of divorce or separation maintenance or a written instrument incident to such
decree.
For certain qualified arrangements, a default of a loan may be considered a taxable distribution and may be subject to a 10% additional tax if the distribution occurred prior to your attainment of age 59.5 unless an exception applies. Please see the
terms of your loan for specifics regarding your loan and the tax impact of
defaults.
You should consult a tax advisor as to the availability of these and any other exceptions.
Tax Withholding and Reporting
In General
Taxable amounts distributed from annuity contracts are subject to federal and state income tax
reporting and withholding. In general, we will withhold federal income tax from the
taxable portion of such distribution based on the type of distribution and, in certain cases, the amount of your distribution. An election out of federal withholding must be made in accordance with the IRS guidance as directed on forms that we provide. If an election out of withholding or election of another amount is not made,
withholding is imposed (1) for periodic payments, at the rate that would be imposed if
the payments were wages, and the payee was single with no adjustments, or (2) for other distributions, at the rate of 10%. If you are a U.S. person (which includes a resident alien), and your address of
record is a non-U.S. address, we are required to withhold income tax unless payments
are directed to your U.S. residential address. We are also required to withhold if you
do not provide a valid TIN.
State income tax withholding rules vary, and we will
withhold based on the rules of your state of residence. Your state may require any election associated with withholding to be undertaken on the state’s
prescribed form.
Special tax rules apply to withholding for non-United States
persons, and we generally withhold income tax for such non-United States persons at a rate of 30%
of the taxable amount. A different withholding rate may be applicable to a non-United States person based on the terms of an existing income tax treaty between the United States and the non-United States person’s country. To qualify for any reduced withholding, the non-United States person must provide applicable certifications under Form W-8 BEN-E, Form W-8IMY, or other applicable form. Any
Form W-8, including the Form W-8 BEN-E and Form W-8IMY, is only effective for three
years from date of signature unless a change in circumstances makes any information on the form incorrect. You should consult your tax adviser as to the availability of an exemption from, or reduction of, such tax under an applicable income tax treaty,
if any. Note, any payments made to a foreign entity, where such entity fails to provide the applicable certifications, may result in a 30% withholding on certain gross payments,
which could include distributions from annuity contracts.
Any income tax withheld is a credit against your
income tax liability. Regardless of the amount withheld by us, you are liable for
payment of federal and state income tax on the taxable portion of annuity distributions. You should consult with your tax adviser regarding the payment of the correct amount of these income taxes and
potential liability if you fail to pay such taxes.
50
20%
Federal Income Tax Withholding on Eligible Rollover Distributions
For certain qualified employer sponsored plans, we are required to withhold 20% of the taxable
portion of your withdrawal that constitutes an eligible rollover distribution for federal income taxes.
This requirement is mandatory and cannot be waived by the Owner. You may
avoid withholding if you do a direct rollover between Qualified Arrangements.
Generation Skipping Transfer Tax Withholding
Under certain circumstances, the IRC may impose generation skipping transfer tax when all or a part of an annuity contract is transferred (including a death benefit paid)
to an individual two or more generations younger than the owner. The
Company may be required to undertake withholding associated with such a transaction. Contract Owners should consult a tax advisor with any questions.
Civil Unions and Domestic
Partnerships
Parties
to a state civil union or domestic partnership are not treated as married
under federal law. Accordingly, certain
transactions (such as a change of ownership or spousal continuation) may
be taxable to those persons. Contract Owners should consult a tax advisor with any questions.
Our Taxes
The Company is taxed as a life insurance company under the Code. For federal income tax purposes,
the Separate Account is not a separate entity from the Company and its operations form
a part of the Company. We are entitled to certain tax benefits related to the investment of Company assets, including assets of the Separate Account, which may include foreign tax credits
and the corporate dividends received deduction. These potential benefits are not passed
back to you, since we are the owner of the assets from which tax benefits may be
derived.
Other Information
The Distributor
Corebridge Capital Services, Inc., 30 Hudson Street, 16th Floor, Jersey City, NJ 07302, distributes the contracts. Corebridge Capital Services, Inc., a wholly-owned subsidiary of AGL, is a registered broker-dealer under the Securities Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory Authority
(“FINRA”). No underwriting fees are retained by Corebridge Capital
Services, Inc. in connection with the distribution of the contracts.
The Company
American General Life Insurance Company
American General Life Insurance Company (“AGL”) is a stock life insurance company
organized under the laws of the state of Texas. Its home office is 2727-A Allen
Parkway, Houston, Texas 77019-2191.
Contracts are issued by AGL in all states, except New York.
AGL is obligated to pay all amounts promised to investors under a contract issued by
AGL.
Operation of the Company
The operations of the Company are influenced by many factors, including general economic conditions,
monetary and fiscal policies of the federal government, and policies of state and other
regulatory authorities. The level of sales of the Company’s financial and insurance products is influenced by many factors, including general market rates of interest, the strength, weakness and volatility
of equity markets, terms and conditions of competing financial and insurance products
and the relative value of such brands.
The Company is exposed to market risk, interest rate risk,
contract Owner behavior risk and mortality/longevity risk. Market volatility may result
in increased risks related to guaranteed death and Living Benefits on the Company’s financial and insurance products, as well as reduced fee income in the case of assets held in separate accounts, where applicable. These guaranteed benefits
are sensitive to equity market and other conditions. The Company primarily uses capital
market hedging strategies to help cover the risk of paying guaranteed Living
Benefits in excess of account values as a result of significant downturns in equity
markets or as a result of other factors. The Company has treaties to reinsure a portion
of the guaranteed minimum income benefits and guaranteed death benefits for equity and
mortality risk on some of its older contracts. Such risk mitigation may or may not
reduce the volatility of net income and capital and surplus resulting from equity market
volatility.
The Company is regulated for the benefit of contract Owners by the insurance regulator in its state of domicile; and also by all state insurance
departments where it is licensed to conduct business. The Company is required by its
regulators to hold a specified amount of reserves in order to meet its contractual
obligations to contract Owners. Insurance regulations also require the Company to maintain additional surplus to protect against a financial impairment the amount of which is based on the
risks inherent in the Company’s operations.
The Separate Account
Variable Separate Account is a separate account of AGL under
Texas law. It may be used to support the contract and other variable annuity contracts, and used for other permitted purposes.
51
The Separate
Account is registered with the SEC as a unit investment trust under the Investment
Company Act of 1940, as amended.
Purchase Payments you make that are allocated to the Variable Portfolios are invested in the
Separate Account. The Company owns the assets in the Separate Account and invests them
on your behalf, according to your instructions. Purchase Payments invested in the Separate Account are not guaranteed and will fluctuate with the value of the Variable Portfolios you select. Therefore,
you assume all of the investment risk for contract value allocated to the Variable
Portfolios. These assets are kept separate from our General Account and may not be charged with liabilities arising from any other business we may conduct. Additionally, income gains and losses (realized and
unrealized) resulting from assets in the Separate Account are credited to or charged
against the Separate Account without regard to other income gains or losses of the
Company.
You benefit from dividends received by the Separate Account through an increase in your unit value. The Company expects to benefit from these dividends
through tax credits and corporate dividends received deductions; however, these
corporate deductions are not passed back to the Separate Account or to contract Owners.
The General Account
Obligations that are paid out of the Company’s general account (“General Account”)
include any amounts you have allocated to available Fixed Accounts, including any interest credited thereon, and amounts owed under your contract for death benefits which are in excess of
portions of contract value allocated to the Variable Portfolios. The obligations and
guarantees under the contract are the sole responsibility of the Company. Therefore, payments of these obligations are subject to our financial strength and claims paying ability, and our long term ability to make
such payments.
The General Account assets are invested in accordance with applicable state regulation. These assets
are exposed to the typical risks normally associated with a portfolio of fixed income
securities, namely interest rate, option, liquidity and credit risk. The Company manages its exposure to these risks by, among other things, closely monitoring and matching the duration and cash flows of its
assets and liabilities, monitoring or limiting prepayment and extension risk in its
portfolio, maintaining a large percentage of its portfolio in highly liquid securities and engaging in a disciplined process of underwriting, reviewing and monitoring credit risk.
Guarantee of Insurance Obligations
The Company’s insurance policy obligations for individual and group contracts issued prior to
December 29, 2006 at 4:00 p.m. Eastern Time, are guaranteed (the “Guarantee”)
by American Home Assurance Company (“American Home” or
“Guarantor”).
As of December 29, 2006 at 4:00 p.m. Eastern Time (the “Point of Termination”), the Guarantee by American Home was terminated for prospectively
issued contracts. The Guarantee will not cover any contracts or certificates with a
date of issue later than the Point of Termination. The Guarantee will continue to cover
individual contracts, individual certificates and group unallocated contracts with a
date of issue earlier than the Point of Termination until all insurance obligations
under such contracts or certificates are satisfied in full. Insurance obligations include, without limitation, contract value invested in any available Fixed Accounts, death benefits, Living Benefits
and annuity income options. The Guarantee does not guarantee contract value or the
investment performance of the Variable Portfolios available under the contracts. The Guarantee provides that individual contract Owners, individual certificate holders and group unallocated
contract Owners with a date of issue earlier than the Point of Termination can enforce
the Guarantee directly.
American Home is a stock property-casualty insurance company incorporated under the laws of the
State of New York on February 7, 1899. American Home’s principal executive office
is located at 1271 Avenue of the Americas, FL37, New York, NY 10020-1304. American Home is licensed in all 50 states of the United States and the District of Columbia, as well as certain
foreign jurisdictions, and engages in a broad range of insurance and reinsurance
activities. American Home is an indirect, wholly-owned subsidiary of American
International Group, Inc.
Financial Statements
The financial statements described below are important for you to consider. Information about how to obtain these financial statements is also provided
below.
The Company, the Separate Account and the Guarantor
The financial statements of the Company and the Separate Account are required to be made available because you must look to those entities directly to
satisfy our obligations to you under the Contract. The financial statements of the
Guarantor are provided in relation to its ability to meet its obligations under the
Guarantee. Please see GUARANTEE OF INSURANCE
OBLIGATIONS above.
Instructions to Obtain
Financial Statements
The financial statements of the Company, Separate Account, and Guarantor are included in the Statement of Additional Information and available on the Company’s website at
www.corebridgefinancial.com/ProductProspectuses and on SEC’s website at www.sec.gov. You may also request a free copy of the Statement of Additional Information by following the instructions on the back page or by contacting our Annuity Service Center at:
Mailing Address:
Annuity Service Center
Annuity Service Center
52
P.O. Box 15570,
Amarillo, Texas 79105-5570
Telephone Number: (800) 445-7862
Telephone Number: (800) 445-7862
We encourage both existing and prospective contract Owners to read and understand the financial
statements.
Administration
We are responsible for the administrative servicing of your contract. Please contact our Annuity
Service Center at (800) 445-7862, if you have any comments, questions or service
requests.
We send out transaction confirmations and quarterly statements. During the Accumulation Phase, you
will receive confirmation of transactions for your contract. Transactions made pursuant
to contractual or systematic agreements, such as dollar cost averaging, if available, may be confirmed quarterly. Purchase Payments received through the automatic payment plan may also be confirmed
quarterly. For all other transactions, we send confirmations. It is your responsibility
to review these documents carefully and notify our Annuity Service Center of any inaccuracies immediately. We investigate all inquiries. Depending on the facts and circumstances, we may retroactively adjust
your contract, provided you notify us of your concern within 30 days of receiving the
transaction confirmation or quarterly statement. Any other adjustments we deem warranted are made as of the time we receive notice of the error.
Legal Proceedings
There are no pending legal proceedings affecting the Separate Account, the Company, or the principal underwriter. Various federal, state or other regulatory agencies may from time to time review, examine or inquire into the operations, practices and
procedures of the Company, such as through financial examinations, subpoenas,
investigations, market conduct exams or other regulatory inquiries. Based on the current status of pending regulatory examinations, investigations and inquiries involving the Company, the Company believes
that none of these matters will have a material adverse effect on the ability of the
principal underwriter to perform its contract with the Registrant or of the depositor to meet its obligations under the variable annuity contracts.
Various lawsuits against the Company have arisen in the ordinary course of business. As of the date of this prospectus, the Company believes that none of
these matters will have a material adverse effect on the ability of the principal
underwriter to perform its contract with the Registrant or of the depositor to meet its obligations under the variable annuity contracts.
Registration Statements
Registration statements under the Securities Act of 1933, as amended, related to the contracts offered by this prospectus are on file with the SEC. This
prospectus does not contain all of the information contained in the registration
statements and exhibits. For further information regarding
the Separate
Account, the Company and its General Account, American Home, the Variable Portfolios
and the contract, please refer to the registration statements and
exhibits.
53
Appendix A – Investment Options Available Under The Contract
Underlying Funds
The following is a list of Underlying Funds available under the contract. More information about the Underlying Funds is available in the prospectuses for the Underlying Funds, which may be amended from time to time and can be found online at www.corebridgefinancial.com/ProductProspectuses. You can also request this information at no cost by
calling (855) 421-2692.
The current expenses and performance information below reflect fees and
expenses of the Underlying Funds, but do not reflect the other fees and expenses that your contract may charge. Expenses would be higher and performance would be lower
if these other charges were included. Each Underlying Fund’s past performance is not necessarily an indication of future performance.
| Type |
Underlying Fund – Share Class
Advisor
Subadvisor (if applicable) |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/2025) | ||
| 1 Year |
5 Year |
10 Year | |||
| Asset
Allocation |
American Funds Asset Allocation Fund – Class 2 Capital Research and Management Company |
0.54% |
15.85% |
8.97% |
9.77% |
| |
SA JPMorgan Diversified Balanced Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. |
0.74%* |
12.95% |
6.06% |
7.54% |
| |
SA MFS Total Return Portfolio – Class 1 SunAmerica Asset Management, LLC Massachusetts Financial Services Company |
0.71% |
10.99% |
6.30% |
7.53% |
| Bond |
SA American Century Inflation Managed Portfolio – Class 3 SunAmerica Asset Management, LLC American Century Investment Management, Inc. |
0.85% |
6.21% |
0.63% |
2.06% |
| |
SA Federated Hermes Corporate Bond Portfolio – Class 1 SunAmerica Asset Management, LLC Federated Investment Management Company |
0.55% |
7.05% |
0.42% |
3.72% |
| |
SA Goldman Sachs Government and Quality Bond Portfolio1
– Class 1
SunAmerica Asset Management, LLC
Goldman Sachs Asset Management L.P.1 |
0.59% |
6.57% |
-0.78% |
1.45% |
| |
SA JPMorgan MFS Core Bond Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. and Massachusetts
Financial Services Company |
0.53%* |
7.29% |
0.10% |
2.45% |
| |
SA JPMorgan Ultra-Short Bond Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. |
0.55% |
4.62% |
2.46% |
1.68% |
| |
SA PIMCO Global Bond Opportunities Portfolio – Class 1 SunAmerica Asset Management, LLC Pacific Investment Management Company, LLC |
0.93%* |
9.07% |
-3.37% |
0.61% |
| |
SA PineBridge High-Yield Bond Portfolio – Class 1 SunAmerica Asset Management, LLC PineBridge Investments, LLC |
0.76% |
8.36% |
5.33% |
7.22% |
| Cash |
Goldman Sachs VIT Government Money Market Fund – Service Shares Goldman Sachs Asset Management, L.P. |
0.43%* |
3.94% |
2.98% |
1.90% |
| Stock |
American Funds Global Growth Fund – Class 2 Capital Research and Management Company |
0.66%* |
21.63% |
8.23% |
12.17% |
| |
American Funds Growth Fund – Class 2 Capital Research and Management Company |
0.59% |
20.23% |
13.37% |
17.97% |
| |
American Funds Growth-Income Fund – Class 2 Capital Research and Management Company |
0.53% |
18.06% |
13.90% |
13.92% |
| |
Invesco V.I. American Franchise Fund – Series II Invesco Advisers, Inc. |
1.10% |
11.39% |
10.08% |
14.58% |
A-1
| Type |
Underlying Fund – Share Class
Advisor
Subadvisor (if applicable) |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/2025) | ||
| 1 Year |
5 Year |
10 Year | |||
| Stock
(continued) |
Invesco V.I. Comstock Fund – Series II Invesco Advisers, Inc. |
1.00% |
17.14% |
15.14% |
11.67% |
| |
Invesco V.I. Growth and Income Fund – Series II Invesco Advisers, Inc. |
1.00% |
15.30% |
12.56% |
10.46% |
| |
Lord Abbett Growth and Income Portfolio – Class VC Lord, Abbett & Co. LLC |
0.93% |
17.29% |
13.35% |
11.12% |
| |
Lord Abbett Mid Cap Stock Portfolio – Class VC Lord, Abbett & Co. LLC |
1.15% |
7.05% |
10.15% |
7.97% |
| |
SA AB Growth Portfolio – Class 1 SunAmerica Asset Management, LLC AllianceBernstein L.P. |
0.63% |
13.06% |
11.95% |
16.14% |
| |
SA AB Small & Mid Cap Value Portfolio – Class 3 SunAmerica Asset Management, LLC AllianceBernstein L.P. |
1.16%* |
2.32% |
8.36% |
8.27% |
| |
SA BlackRock Advantage International Portfolio2 – Class 1
SunAmerica Asset Management, LLC
BlackRock Investment Management, LLC2 |
0.87%* |
21.24% |
5.49% |
6.37% |
| |
SA Fidelity Institutional AM Global Equities Portfolio3 – Class 1
SunAmerica Asset Management, LLC
FIAM LLC3 |
0.82%* |
22.19% |
13.82% |
11.38% |
| |
SA Fidelity Institutional AM Real Estate Portfolio – Class 1 SunAmerica Asset Management, LLC FIAM LLC |
0.85% |
1.50% |
4.91% |
5.44% |
| |
SA Franklin BW U.S. Large Cap Value Portfolio – Class 1 SunAmerica Asset Management, LLC Brandywine Global Investment Management, LLC |
0.70%* |
17.13% |
13.86% |
11.60% |
| |
SA Franklin Small Company Value Portfolio – Class 3 SunAmerica Asset Management, LLC Franklin Mutual Advisers, LLC |
1.25%* |
6.14% |
8.32% |
9.41% |
| |
SA Franklin Systematic U.S. Large Cap Value Portfolio – Class 1 SunAmerica Asset Management, LLC Franklin Advisers, Inc. |
0.64% |
16.92% |
11.80% |
12.59% |
| |
SA Invesco Growth Opportunities Portfolio – Class 1 SunAmerica Asset Management, LLC Invesco Advisers, Inc. |
0.82% |
6.10% |
-0.73% |
9.13% |
| |
SA Janus Focused Growth Portfolio – Class 1 SunAmerica Asset Management, LLC Janus Capital Management, LLC |
0.80%* |
18.39% |
11.68% |
15.64% |
| |
SA JPMorgan Emerging Markets Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. |
1.16%* |
36.28% |
4.64% |
8.42% |
| |
SA JPMorgan Equity-Income Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. |
0.59% |
14.63% |
10.80% |
11.09% |
| |
SA JPMorgan Large Cap Core Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. |
0.69%* |
14.47% |
13.00% |
12.73% |
| |
SA JPMorgan Mid-Cap Growth Portfolio – Class 1 SunAmerica Asset Management, LLC J.P. Morgan Investment Management Inc. |
0.77%* |
8.07% |
4.24% |
12.17% |
| |
SA MFS Large Cap Growth Portfolio – Class 1 SunAmerica Asset Management, LLC Massachusetts Financial Services Company |
0.68% |
16.64% |
15.12% |
16.16% |
| |
SA MFS Massachusetts Investors Trust Portfolio – Class 1 SunAmerica Asset Management, LLC Massachusetts Financial Services Company |
0.70%* |
13.82% |
11.48% |
12.65% |
A-2
| Type |
Underlying Fund – Share Class
Advisor
Subadvisor (if applicable) |
Current
Expenses |
Average Annual Total Returns
(as of 12/31/2025) | ||
| 1 Year |
5 Year |
10 Year | |||
| Stock
(continued) |
SA PIMCO RAE International Value Portfolio – Class 3 SunAmerica Asset Management, LLC Pacific Investment Management Company, LLC |
1.09%* |
35.91% |
10.00% |
5.99% |
| |
SA Putnam International Value Portfolio – Class 1 SunAmerica Asset Management, LLC Putnam Investment Management, LLC |
0.94%* |
35.27% |
12.89% |
9.06% |
| |
SA Wellington Capital Appreciation Portfolio – Class 1 SunAmerica Asset Management, LLC Wellington Management Company LLP |
0.73% |
14.53% |
8.81% |
16.03% |
| Volatility
Control |
SA VCP Dynamic Allocation Portfolio – Class 3 SunAmerica Asset Management, LLC AllianceBernstein L.P. |
1.01% |
11.13% |
5.34% |
7.51% |
| |
SA VCP Dynamic Strategy Portfolio – Class 3 SunAmerica Asset Management, LLC AllianceBernstein L.P. |
1.03% |
10.89% |
5.66% |
7.19% |
* This Underlying Fund is subject to an expense reimbursement or
fee waiver arrangement resulting in a temporary expense reduction. See the Underlying Fund prospectus for additional information.
1
On July 28, 2025, SA
Wellington Government and Quality Bond Portfolio was renamed SA Goldman Sachs Government and Quality Bond Portfolio and Goldman Sachs Asset Management L.P. became its subadvisor.
2
On
May 1, 2026, SA Morgan Stanley International Equities Portfolio was renamed SA BlackRock Advantage International Portfolio and BlackRock Investment Management, LLC became its subadvisor.
3
On
July 28, 2025, SA JPMorgan Global Equities Portfolio was renamed SA Fidelity Institutional AM Global Equities Portfolio and FIAM LLC became its subadvisor.
Fixed Accounts
The following is a list of Fixed Accounts currently available under the
contract. We may change the features of the Fixed Accounts listed below, offer new Fixed Accounts, and terminate existing Fixed Accounts. We will provide you with
written notice before doing so.
See INVESTMENT OPTIONS - FIXED ACCOUNTS of the prospectus for a description of the Fixed Accounts'
features.
| Name |
Terms |
Minimum Guaranteed Interest Rate |
| 1-Year Fixed Account |
1-Year |
1% |
| Dollar Cost Averaging Fixed Account |
6-Month, 12-Month |
1% |
A-3
Appendix B – Market Value Adjustment (“MVA”)
Depending on the issue date of your contract, your contract may offer multi-year Fixed Accounts. If you take money out of any available multi-year Fixed Accounts before the guarantee period ends, we may make an adjustment to your contract. We refer to this as a Market Value Adjustment (“MVA”). The MVA does not apply to any available one-year Fixed Accounts. The MVA reflects any difference in the interest rate environment between the time you placed your money in the multi-year Fixed Accounts and the time when you withdraw or transfer that money. Generally, this adjustment can increase or decrease your contract value or the amount of your withdrawal. If interest rates drop between the time you put your money into a multi-year Fixed Account and the time you take it out, we credit a positive adjustment to your contract. Conversely, if interest rates increase during the same period, we could post a negative adjustment to your contract. You have 30 days after the end of each guarantee period to reallocate your funds without application of any MVA.
Regardless of the outcome of the MVA calculation,
application of the MVA to any partial or full withdrawal or transfer from the multi-year Fixed Accounts after May 2, 2005, will not result in a negative adjustment to
your contract value or the withdrawal amount. Thus, the MVA will not result in a loss of principal or previously credited interest for transactions after May 2, 2005. You will continue to receive any positive adjustment resulting from application of the MVA.
The information below applies only if you take money out of multi-year Fixed Accounts before the end of the Guarantee Period.
We calculate the MVA by doing a comparison between current rates and the rate
being credited to you in the Fixed Accounts. For the current rate we use a rate being offered by us for a guarantee period that is equal to the time remaining in the
Fixed Accounts from which you seek withdrawal (rounded up to a full number of years). If we are not currently offering a guarantee period for that period of time, we determine an applicable rate by using a formula to arrive at a number based on the interest rates currently offered for the two closest periods available.
Where the MVA is positive, we add the adjustment to your
withdrawal amount. If a withdrawal charge applies, it is deducted before the MVA calculation. The MVA is assessed on the amount withdrawn less any withdrawal
charges.
The MVA is computed by multiplying the amount withdrawn, transferred or taken under an income option by the following factor:
[(1+I/(1+J+L)]N/12 – 1
where:
I is the interest rate you are earning on the money invested
in the Fixed Account;
J is the interest rate then currently available for the period of time equal to the number of years remaining in the term you initially agreed to leave your money in the Fixed Account;
N is the number of full months
remaining in the term you initially agreed to leave your money in the Fixed Account; and
L is 0.005 (Some states require a different value. Please see your contract.)
We do not assess an MVA against withdrawals from an
Fixed Account under the following circumstances:
•
If a withdrawal or transfer made after May 2, 2005 results in a negative MVA
calculation;
•
If a withdrawal or transfer is made within 30 days after the end of a guarantee
period;
•
If a withdrawal or transfer is made to pay contract fees and charges;
•
To pay a death benefit; and
•
Upon beginning an income option, if occurring on the Latest Annuity
Date.
Examples of the MVA
The purpose of the examples below is to
show how the MVA adjustments are calculated and may not reflect the
Guarantee Periods available or withdrawal charges applicable under your contract.
Guarantee Periods available or withdrawal charges applicable under your contract.
The examples below assume the following:
(1)
You made an initial Purchase Payment of $10,000 and allocated it to a Fixed
Account at a rate of 5%;
(2)
You make a partial withdrawal of $4,000 at a time when 18 months remain in the
term you initially agreed to leave your money in the Fixed Account (N = 18);
(3)
You have not made any other transfers, additional Purchase Payments, or
withdrawals; and
B-1
(4)
Your contract was issued in a state where L = 0.005.
Positive Adjustment, No Withdrawal Charge Applies
Assume that on the date of withdrawal, the interest rate in effect for new Purchase Payments in the 1-year Fixed Account is 3.5% and the 3-year Fixed Account is 4.5%. By linear interpolation, the interest rate for the remaining 2 years (18 months rounded up to the next full year) in the contract is calculated to be 4%. No withdrawal charge is reflected in this example, assuming that the Purchase Payment withdrawn falls within the penalty-free withdrawal amount.
The MVA factor is = [(1+I/(1+J+0.005)]N/12 – 1
= [(1.05)/(1.04+0.005)]18/12 – 1
= (1.004785)1.5 – 1
= 1.007186 – 1
= + 0.007186
The requested withdrawal amount is multiplied by the MVA factor to determine
the MVA:
$4,000 × (+0.007186) = +$28.74
$28.74 represents the positive MVA that would be added to the
withdrawal.
Positive Adjustment, Withdrawal Charge Applies
Assume that on the date of withdrawal, the interest rate in effect for
new Purchase Payments in the 1-year Fixed Account is 3.5% and the 3-year Fixed Account is 4.5%. By linear interpolation, the interest rate for the remaining 2 years (18
months rounded up to the next full year) in the contract is calculated to be 4%. A withdrawal charge of 6% is reflected in this example, assuming that the Purchase Payment withdrawn exceeds the penalty-free withdrawal amount.
The MVA factor is = [(1+I)/(1+J+0.005)]N/12 – 1
= [(1.05)/(1.04+0.005)]18/12 – 1
= (1.004785)1.5 – 1
= 1.007186 – 1
= + 0.007186
The requested withdrawal amount, less the withdrawal charge ($4,000 –
6% = $3,760) is multiplied by the MVA factor to determine the MVA:
$3,760 × (+0.007186) = +$27.02
$27.02 represents the positive MVA that would be added to the withdrawal.
B-2
Appendix C – Death Benefits Following Spousal Continuation
Capitalized terms used in this Appendix have the same meaning as they have in prospectus.
We define “Continuation Net Purchase Payments” as Net Purchase Payments made as of the Continuation Date. For the purpose of calculating Continuation Net
Purchase Payments, the amount that equals the contract value on the Continuation Date,
including the Continuation Contribution is considered a Purchase Payment. If the Continuing Spouse makes no additional Purchase Payments or withdrawal, Continuation Net Purchase Payments equals the
contract value on the Continuation Date, including the Continuation
Contribution.
The term “withdrawals” as used in describing the death benefit options below is defined as withdrawals and any fees and charges applicable to those
withdrawals.
The Company will not accept Purchase Payments from anyone age 86
or older. Furthermore, the death benefit calculations assume that no Purchase Payment are received on or after your 86th birthday.
The following details the death benefit options and EstatePlus benefit upon the Continuing Spouse’s death:
The death benefit we will pay to the new Beneficiary chosen by the Continuing Spouse varies depending on the death benefit option elected by the original owner
of the contract and the age of the Continuing Spouse as of the Continuation
Date.
The following is a description of the Death Benefit Options Payable Following Spousal Continuation for contracts issued on or after June 1, 2004:
1.
Purchase Payment Accumulation Option
If the Continuing Spouse is age 74 or younger on the Continuation Date, the death benefit will be the greatest of:
a.
Contract value; or
b.
Continuation Net Purchase Payments, compounded at 3% annual growth rate, to the earlier of the Continuing Spouse’s 75th birthday
or date of death; reduced for withdrawals after the 75th birthday in the same
proportion that the contract value was reduced on the date of such withdrawal, and
adjusted for any Purchase Payments received after the Continuing Spouse’s 75th
birthday; or
c.
Contract value on the seventh contract anniversary (from the original contract issue date), reduced for withdrawals since the seventh
contract anniversary in the same proportion that the contract value was reduced on the
date of such withdrawal, and adjusted for any Purchase Payments received after the
seventh contract anniversary date.
If the Continuing Spouse is age 75-82 on the Continuation Date, then the death benefit will be the greatest of:
a.
Contract value; or
b.
Continuation Net Purchase Payments; or
c.
Maximum anniversary value on any contract anniversary that occurred after the Continuation Date, but prior to the earlier of the Continuing
Spouse’s 83rd birthday or date of death. The anniversary value for any year is
equal to the contract value on the applicable contract anniversary date, reduced for
withdrawals since that contract anniversary in the same proportion that the contract
value was reduced on the date of such withdrawal, and adjusted for any Purchase
Payments received since that anniversary date.
If the Continuing Spouse is age 83-85 on the Continuation Date, then the death benefit will be the greatest of:
a.
Contract value; or
b.
the lesser of:
(1)
Continuation Net Purchase Payments; or
(2)
125% of the contract value.
If the Continuing Spouse is age 86 or older on the Continuation Date, the death benefit will be equal to the contract value.
2.
Maximum Anniversary Value Option
If the Continuing Spouse is age 82 or younger on the Continuation Date, then upon the death of the
Continuing Spouse, the death benefit will be the greatest of:
a.
Contract value; or
b.
Continuation Net Purchase Payments; or
c.
Maximum anniversary value on any contract anniversary that occurred after the Continuation Date, but prior to the earlier of the Continuing
Spouse’s 83rd birthday or date of death. The anniversary value for any year is
equal to the contract value on the applicable contract anniversary date after the
Continuation Date, reduced for withdrawals since that contract anniversary in the same
proportion that the contract value was reduced on the date of such withdrawal, and
adjusted for any Purchase Payments received since that anniversary date.
C-1
If
the Continuing Spouse is age 83-85 on the Continuation Date, then the death benefit will be the greater of:
a.
Contract value; or
b.
the lesser of:
(1)
Continuation Net Purchase Payments; or
(2)
125% of the contract value.
If the Continuing Spouse is age 86 or older on the Continuation Date or age 90 or older at the time of death, the death benefit is equal to contract
value.
The following
is a description of the Death Benefit Options Payable Following Spousal Continuation for contracts issued between October 24, 2001 and June 1, 2004:
Purchase Payment Accumulation Option Payable Upon Continuing Spouse’s Death
If a Continuation Contribution is added on the Continuation Date, the death benefit is the greatest of:
1.
The contract value; or
2.
Continuation Net Purchase Payments compounded to the date of death at a 4% annual growth rate, (3% growth rate if the Continuing Spouse was age 70 or
older on the Continuation Date) plus any Purchase Payments recorded after the date of
death; and reduced by any Gross Withdrawals recorded after the date of death in the
same proportion that the Gross Withdrawal reduced the contract value on the date of
each withdrawal; or
3.
Contract value on the seventh contract anniversary following the original issue date of the contract, plus any Purchase Payments since the seventh
contract anniversary and reduced for any Gross Withdrawals recorded after the seventh
contract anniversary in the same proportion that the Gross Withdrawal reduced the
contract value on the date of the Gross Withdrawal, all compounded at a 4% annual growth
rate until the date of death (3% annual growth rate if the Continuing Spouse is age 70
or older on the Continuation Date) plus any Purchase Payments; and reduced for any
withdrawals recorded after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the withdrawal.
If a Continuation Contribution is not added on the Continuation
Date, the death benefit is the greater of:
1.
Contract value; or
2.
Net Purchase Payments made from the original contract issue date compounded to the date of death at a 4% annual growth rate, (3% growth rate if
the Continuing Spouse was age 70 or older on the original contract issue date) plus any
Purchase Payments recorded after the date of death; and
reduced for any Gross Withdrawals recorded after the date of death in the same proportion that each Gross Withdrawal reduced the contract value on
the date of the withdrawal; or
3.
Contract value on the seventh contract anniversary following the original issue date of the contract, plus any Purchase Payments since the seventh
contract anniversary; and reduced for any Gross Withdrawals since the seventh contract
anniversary in the same proportion that each Gross Withdrawal reduced the contract
value on the date of the Gross Withdrawal, all compounded at a 4% annual growth rate until the date of death (3% annual growth rate if the Continuing Spouse is age 70 or older on the contract
issue date) plus any Purchase Payments; and reduced for any Gross Withdrawals recorded
after the date of death in the same proportion that each Gross Withdrawal reduced the
contract value on the date of the Gross Withdrawal.
Maximum Anniversary Value Option Payable Upon
Continuing Spouse’s Death
If the Continuing Spouse is below age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death benefit is the greatest of:
1.
Contract value; or
2.
Continuation Net Purchase Payments; or
3.
Maximum anniversary value on any contract anniversary occurring after the Continuation Date and prior to the Continuing Spouse’s 81st
birthday. The anniversary value equals the contract value on a contract anniversary
plus any Purchase Payments made since that contract anniversary; and reduced for any
Gross Withdrawals recorded since the contract anniversary in the same proportion that
each Gross Withdrawal reduced the contract value on the date of the Gross Withdrawal.
Contract anniversary is defined as any anniversary following the full 12 month period
after the original contract issue date.
If a Continuation
Contribution is not added on the Continuation Date, the death benefit is the greatest of:
1.
Contract value; or
2.
Net Purchase Payments received since the original issue date; or
3.
Maximum anniversary value on any contract anniversary from the original contract issue date prior to the Continuing Spouse’s 81st
birthday. The anniversary value equals the contract value on a contract anniversary
plus any Purchase Payments since that contract anniversary; and reduced for any Gross
Withdrawals since the contract anniversary in the same proportion that the Gross Withdrawal
C-2
reduced each contract value on the date of the Gross Withdrawal. Contract anniversary is defined as the full 12 month period after the original contract
issue date.
If the Continuing Spouse is age 90 or older at the time of death, their beneficiary will receive only the contract value.
The following is a description of
the Death Benefit Options Payable Following Spousal Continuation for contracts issued prior to October 24, 2001:
Purchase Payment Accumulation Option Payable
Upon Continuing Spouse’s Death
If a Continuation Contribution is added on the Continuation Date, the death benefit is the greater of:
1.
Contract value; or
2.
Contract value on the Continuation Date (including the Continuation Contribution) plus any Purchase Payments minus any withdrawals made since the
Continuation Date compounded to the date of death at a 4% annual growth rate, (3%
growth rate if the Continuing Spouse was age 70 or older on the Continuation Date) plus
any Purchase Payments minus withdrawals recorded after the date of death; or
3.
Contract value on the seventh contract anniversary following the original issue date of the contract, plus any Purchase Payments and less any
withdrawals, since the seventh contract anniversary, all compounded at a 4% annual
growth rate until the date of death (3% growth rate if the Continuing Spouse is age 70
or older on the Continuation Date) plus any Purchase Payments less withdrawals recorded
after the date of death. The Continuation Contribution is considered a Purchase Payment
received on the Continuation Date.
If a Continuation
Contribution is not added on the Continuation Date, the death benefit is the greater of:
1.
Contract value; or
2.
Purchase Payments minus withdrawals made from the original contract issue date compounded to the date of death at a 4% annual growth rate, (3%
growth rate if the Continuing Spouse was age 70 or older on the Contract Issue Date)
plus any Purchase Payments minus withdrawals recorded after the date of death;
or
3.
The contract value on the seventh contract anniversary following the original issue date of the contract, plus any Purchase Payments and less
any withdrawals, since the seventh contract anniversary, all compounded at a 4% annual
growth rate until the date of death (3% growth rate if the Continuing Spouse was age 70
or older on the Contract Issue Date) plus any Purchase Payments less withdrawals
recorded after the date of death.
Maximum Anniversary Value Death Benefit Option Following Spousal Continuation
If the Continuing Spouse is below age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death benefit is the greater
of:
1.
Contract value; or
2.
Continuation Net Purchase Payments plus Purchase Payments made since the Continuation Date; and reduced for withdrawals in the same proportion that
the contract value was reduced on the date of such withdrawal; or
3.
Maximum anniversary value on any contract anniversary occurring after the Continuation Date prior to the Continuing Spouse’s 81st
birthday. The anniversary value equals the contract value on a contract anniversary
plus any Purchase Payments since that contract anniversary; and reduced for any
withdrawals recorded since that contract anniversary in the same proportion that the
withdrawal reduced the contract value on the date of the withdrawal. Contract
anniversary is defined as any anniversary following the full 12 month period after the original contract issue date.
If a Continuation
Contribution is not added on the Continuation Date, the death benefit is the greater of:
1.
Contract value; or
2.
Net Purchase Payments received since the original issue date; or
3.
Maximum anniversary value on any contract anniversary from the original contract issue date prior to the Continuing Spouse’s 81st
birthday. The anniversary value equals the contract value on a contract anniversary
plus any Purchase Payments since that contract anniversary; and reduced for any
withdrawals recorded since that contract anniversary in the same proportion that the
withdrawal reduced the contract value on the date of the withdrawal. Contract
anniversary is defined as any anniversary following the full 12 month period after the original contract issue date.
If the Continuing
Spouse is age 90 or older at the time of death, their beneficiary will receive only the contract value.
The EstatePlus Benefit Payable upon Continuing Spouse’s
Death:
The EstatePlus benefit is only available if the
original owner elected EstatePlus and the Continuing Spouse is age 80 or younger on the
Continuation Date. EstatePlus is not payable after the Latest Annuity Date.
If the Continuing Spouse had earnings in the contract at the time of his/her death, we will add a
percentage of those earnings (the “EstatePlus Percentage”), subject to a
maximum dollar amount (the “Maximum EstatePlus
C-3
Percentage”),
to the death benefit payable. The contract year of death will determine the EstatePlus Percentage and the Maximum EstatePlus benefit. The EstatePlus benefit, if any, is added to the death benefit
payable under the Purchase Payment Accumulation or the Maximum Anniversary Value
option.
On the Continuation Date, if the Continuing Spouse is 69 or younger, the table below shows the
available EstatePlus benefit:
| Contract Year
of Death |
EstatePlus
Percentage |
Maximum
EstatePlus Benefit |
| Years 0-4 |
25% of Earnings |
40% of Continuation Net
Purchase Payments* |
| Years 5-9 |
40% of Earnings |
65% of Continuation Net
Purchase Payments* |
| Years 10+ |
50% of Earnings |
75% of Continuation Net Purchase Payments* |
On the Continuation Date, if the Continuing Spouse is between his/her 70th and 81st birthdays, table
below shows the available EstatePlus benefit:
| Contract Year
of Death |
EstatePlus
Percentage |
Maximum
EstatePlus Benefit |
| All Contract
Years |
25% of Earnings |
40% of Continuation Net Purchase Payments* |
*
Purchase Payments received after the 5th anniversary of the Continuation Date must remain in the contract for at least 6 full months to be included as part of the
Continuation Net Purchase Payments for the purpose of the Maximum EstatePlus Benefit
calculation.
What is the Contract Year of Death?
Contract Year of Death is the number of full 12-month periods starting on the Continuation Date and
ending on the Continuing Spouse’s date of death. The Contract Year of Death is
used to determine the EstatePlus Percentage and Maximum EstatePlus benefit as indicated in the tables above.
What is the EstatePlus benefit?
We determine the EstatePlus benefit using the EstatePlus Percentage, as indicated in the tables above, which is a specified percentage of the earnings in the
contract at the time of the Continuing Spouse’s death. For the purpose of this
calculation, earnings equals (1) minus (2) where
(1)
equals the contract value on the Continuing Spouse’s date of death;
(2)
equals the Continuation Net Purchase Payment(s).
What is the Maximum EstatePlus amount?
The EstatePlus benefit is subject to a maximum dollar amount. The Maximum EstatePlus benefit is equal to a specified percentage of the Continuation Net
Purchase Payments, as indicated in the tables above.
We reserve the right to modify, suspend or terminate
the Spousal Continuation provision (in its entirety or
any component) at any time with respect to
prospectively issued contracts.
C-4
Appendix D – State Contract Availability and/or Variability
| PROSPECTUS PROVISION |
AVAILABILITY OR VARIATION |
ISSUE STATE |
| Administration Charge |
Contract Maintenance Fee is $30. |
New Mexico
North Dakota |
| Market Value Adjustment |
L equal to 0.0025 |
Florida |
| Systematic Withdrawal |
Minimum withdrawal amount is $250 per withdrawal or the penalty-free
withdrawal amount. |
Oregon |
| Transfer Privilege |
Any transfer over the limit of 15 will incur a $10 transfer
fee. |
Pennsylvania Texas |
D-1
Appendix E – death benefit examples
The following examples assume your contract was issued on or after June 1, 2004 and demonstrate how market performance, subsequent Purchase Payments, and withdrawals impact the death benefit.
The examples are based on a hypothetical contract over an extended period of time and do not assume any specific rate of return nor do they represent how your contract will actually perform.
Examples 1 through 5 below assume election of Purchase Payment Accumulation Option
Example 1: Initial Values
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Owner age 65 on the Issue Date
| Values as of |
Purchase
Payment
Invested |
Contract
Value |
Net
Purchase
Payments |
Purchase
Payment
Accumulation
Death Benefit |
| Issue Date |
$100,000 |
$100,000 |
$100,000 |
$100,000 |
Example 2: Impact of Adding Subsequent Purchase Payments
The values shown below are based on the assumptions
stated in Example 1 above, in addition to the following:
•
Subsequent Purchase Payment invested in the second Contract Year =
$25,000.
•
No withdrawals taken in the first 2 Contract Years.
| Values as of |
Purchase
Payment
Invested |
Assumed
Contract
Value |
Purchase
Payment
Accumulation @3% |
Purchase
Payment
Accumulation
Death
Benefit |
| Contract Date |
$100,000 |
$100,000 |
$100,000 |
$100,000 |
| 1st Anniversary |
– |
$115,000 |
$103,000 |
$115,000 |
| Year 2 – Day 200 |
$25,000 |
$127,000 |
$129,682 |
$129,682 |
| 2nd Anniversary |
– |
$145,000 |
$131,426 |
$145,000 |
The values of the death benefit are impacted by adding subsequent Purchase Payments and the Contract Value at the time the death benefit is calculated.
•
At 1st anniversary, Purchase Payment Accumulation (“PPA”) increased
3% to $103,000 [$100,000 × (1 + 3%)], however Contract Value was greater; therefore, the death benefit was $115,000.
•
At year 2 day 200 Purchase Payment Accumulation increased by 3% for 200 days
before adding the Subsequent Purchase Payment.
○
Purchase Payment Accumulation increased to $129,682 {$103,000 × [(1 + 3%)^(200/365)] + $25,000}
•
At 2nd anniversary, Purchase Payment Accumulation increased by 3% for another 165
days to $131,426 {$129,682 × [(1 + 3%)^(165/365)]}, however Contract Value was greater; therefore, the death benefit was $145,000.
E-1
Example 3:
Impact of withdrawals on Purchase Payment Accumulation Option
The values shown below are based on the assumptions stated in Examples 1 and
2 above, in addition to the following:
•
A withdrawal of $15,000 was taken in the third Contract Year.
| Values as of |
Assumed
Contract
Value |
Withdrawal
Taken |
Purchase
Payment
Accumulation @3% |
Purchase
Payment
Accumulation
Option Death
Benefit |
| 2nd Anniversary |
$145,000 |
– |
$131,426 |
$145,000 |
| Year 3 – Day 100 |
$156,000 |
$15,000 |
$119,755 |
$141,000 |
| 3rd Anniversary |
$144,000 |
– |
$122,353 |
$144,000 |
•
The Purchase Payment Accumulation reduced in the same proportion by which the
Contract Value is reduced by withdrawal amount.
○
In year 3 – day 100, the reduction proportion was 9.6154% ($15,000/$156,000); the PPA reduced to $119,755 {$131,426 × [(1 + 3%)^(100/365)] × (1 – 9.6154%)}; PPA was less than the Contract Value; therefore, the death benefit was $141,000 ($156,000 – $15,000).
○
At 3rd anniversary, PPA increased by 3% for the remainder of the contract year to $122,353 {$119,755 × [(1 + 3%)^(265/365)]}, however the Contract Value was greater; therefore, the death benefit was $144,000.
Example 4: Purchase Payment Accumulation Option and 7th Contract Anniversary Value
The values shown below are based on the assumptions stated in Examples 1, 2, and 3 above, in addition to the following:
•
The Purchase Payment Accumulation increases each year by 3%
•
7th year Anniversary Value is locked in for the death benefit
| Values as of |
Assumed
Contract
Value |
Anniversary
Value |
Purchase
Payment
Accumulation @3% |
7th
Anniversary
Value
Purchase
Payment
Accumulation |
Purchase
Payment
Accumulation
Option Death
Benefit |
| 3rd Anniversary |
$144,000 |
$144,000 |
$122,353 |
– |
$144,000 |
| 4th Anniversary |
$178,000 |
$178,000 |
$126,023 |
– |
$178,000 |
| 5th Anniversary |
$190,000 |
$190,000 |
$129,804 |
– |
$190,000 |
| 6th Anniversary |
$150,000 |
$150,000 |
$133,698 |
– |
$150,000 |
| 7th Anniversary |
$146,000 |
$146,000 |
$137,709 |
$146,000 |
$146,000 |
•
At 4th anniversary, Purchase Payment Accumulation increased by 3% to $126,023
[$122,353 × (1 + 3%)]
•
At 5th anniversary, Purchase Payment Accumulation increased by 3% to $129,804
[$126,023 × (1 + 3%)]
•
At 6th anniversary, Purchase Payment Accumulation increased by 3% to $133,698
[$129,804 × (1 + 3%)]
•
At 7th anniversary, Purchase Payment Accumulation increased by 3% to $137,709
[$133,698 × (1 + 3%)], however the 7th Anniversary Value of $146,000 was greater ; therefore, the death benefit was $146,000.
E-2
Example 5:
Impact of withdrawals after 7th Contract Anniversary Lock In
The values shown below are based on the assumptions stated in Examples 1, 2,
3, and 4 above, in addition to the following:
•
A withdrawal of $10,000 was taken in year 8 and year 9
| Values as of |
Assumed
Contract
Value |
Withdrawal
Taken |
Purchase
Payment
Accumulation @3% |
7th
Anniversary
Value
Purchase
Payment
Accumulation |
Purchase
Payment
Accumulation
Death Benefit |
| 7th Anniversary |
$146,000 |
– |
$137,709 |
$146,000 |
$146,000 |
| Year 8 – Day 20 |
$147,000 |
$10,000 |
$128,549 |
$136,068 |
$137,000 |
| 8th Anniversary |
$122,000 |
– |
$132,191 |
$136,068 |
$136,068 |
| Year 9 – Day 40 |
$80,000 |
$10,000 |
$116,043 |
$119,060 |
$119,060 |
| 9th Anniversary |
$82,000 |
– |
$119,138 |
$119,060 |
$119,138 |
•
After 7th anniversary, the Purchase Payment Accumulation continues to increase by
3% compounding. Both PPA and 7th Anniversary Purchase Payment Accumulation values reduce proportionately for withdrawals taken.
○
In year 8 – day 20, the reduction proportion was 6.8027%
($10,000/$147,000); the Purchase Payment Accumulation increased by 3% for 20 days and reduced for the withdrawal to $128,549 {$137,709 × [(1 + 3%)^(20/365)] × (1 – 6.8027%)}; the 7th Anniversary Purchase Payment Accumulation reduced to $136,068 [$146,000 × (1 – 6.8027%)]; the Contract Value was $137,000 ($147,000 – $10,000); therefore, the death benefit was $137,000.
○
At 8th anniversary, Purchase Payments Accumulation increased by 3% for the remainder of the year to $132,191 {$128,549 × [(1 + 3%)^(345/365)]}, however the 7th Anniversary Value Purchase Payment Accumulation was greater than PPA and Contract Value; therefore, the death benefit was $136,068.
○
In year 9 – day 40, the reduction proportion was 12.50% ($10,000/$80,000); the Purchase Payment
Accumulation increased by 3% for 40 days and reduced for the withdrawal to $116,043 {$132,191 × [(1 + 3%)^(40/365)] × (1 – 12.50%)}; the 7th Anniversary Purchase Payment Accumulation reduced to $119,060 [$136,068 × (1 – 12.50%)]; the death benefit was $119,060.
○
At 9th anniversary, Purchase Payment Accumulation increased by 3% for the remainder of the year to $119,138 {$116,043 × [(1+3%)^(325/365)]} and was greater than the 7th Anniversary Value Purchase Payment
Accumulation value and Contract Value; therefore, the death benefit was $119,138.
Examples 6 through 8 below assume election of
Maximum Anniversary Value Death Benefit Option with optional EstatePlus
Example 6: Initial Values
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
•
Owner age 65 on the Issue Date
| Values as of |
Purchase
Payment
Invested |
Contract
Value |
Net
Purchase
Payments |
Maximum
Anniversary
Value Death
Benefit |
| Issue Date |
$100,000 |
$100,000 |
$100,000 |
$100,000 |
E-3
Example 7:
Impact of Adding Subsequent Purchase Payments
The values shown below are based on the assumptions stated in Example 6 above, in addition to the following:
•
Subsequent Purchase Payment invested in the second Contract Year =
$25,000.
•
No withdrawals taken in the first 2 Contract Years.
| Values as of |
Purchase
Payment
Invested |
Assumed
Contract
Value |
Anniversary
Value |
Net
Purchase
Payments |
Maximum
Anniversary
Value |
Maximum
Anniversary
Value Death
Benefit |
EstatePlus |
| Contract Date |
$100,000 |
$100,000 |
– |
$100,000 |
– |
$100,000 |
$0 |
| 1st Anniversary |
– |
$115,000 |
$115,000 |
$100,000 |
$115,000 |
$115,000 |
$3,750 |
| Year 2 – Day 200 |
$25,000 |
$127,000 |
– |
$125,000 |
$140,000 |
$140,000 |
$500 |
| 2nd Anniversary |
– |
$145,000 |
$145,000 |
$125,000 |
$145,000 |
$145,000 |
$5,000 |
The values of the death benefit are impacted by adding subsequent Purchase Payments and locking in the higher Anniversary Values as follows:
•
The Maximum Anniversary Value is increased to a Higher Anniversary Value on each
Benefit Year Anniversary if the Anniversary Value is greater than the current Maximum Anniversary Value.
○
At 1st anniversary, the Contract Value increased and was locked in; the MAV
death benefit was $115,000.
•
The Net Purchase Payments (“NPP”) and Maximum Anniversary Value
(“MAV”) Death Benefit are recalculated at the time each subsequent Purchase Payment is received.
○
In year 2, the $25,000 subsequent Purchase Payment increased NPP to $125,000
($100,000 + $25,000); MAV increased to $140,000 ($115,000 + $25,000); the MAV death benefit was $140,000.
○
At 2nd anniversary, the Contract Value increased and was locked in; the MAV
death benefit was $145,000.
•
EstatePlus would provide and Earnings Enhancement if death were to occur at any of
the following:
○
1st Anniversary: $3,750 [($115,000 – $100,000) × 25%]
○
Year 2 – Day 200: $500 [($127,000 – $125,000) × 25%]
○
2nd Anniversary: $5,000 [($145,000 – $125,000) × 25%]
Example 8: Impact of withdrawals on Net Purchase Payments and Maximum Anniversary Value
The values shown below are based on the assumptions stated in Examples 6 and 7 above, in addition to the following:
•
A withdrawal of $15,000 was taken in the third Contract Year.
| Values as of |
Assumed
Contract
Value |
Withdrawal
Taken |
Anniversary
Value |
Net
Purchase
Payments |
Maximum
Anniversary
Value |
Maximum
Anniversary
Value Death
Benefit |
EstatePlus |
| 2nd Anniversary |
$145,000 |
– |
$145,000 |
$125,000 |
$145,000 |
$145,000 |
$5,000 |
| Year 3 – Day 100 |
$156,000 |
$15,000 |
– |
$112,981 |
$131,058 |
$141,000 |
$7,005 |
| 3rd Anniversary |
$144,000 |
– |
$144,000 |
$112,981 |
$144,000 |
$144,000 |
$7,755 |
•
The Net Purchase Payments and Maximum Anniversary Value are reduced in the same
proportion by which the Contract Value is reduced by the withdrawal amount.
○
In year 3, the reduction proportion was 9.6154% ($15,000/$156,000); the NPP
reduced to $112,981 [$125,000 × (1 – 9.6154%)]; the MAV reduced to $131,058 [$145,000 × (1 – 9.6154%)]; the MAV death benefit was $141,000 ($156,000 – $15,000).
•
EstatePlus would provide and Earnings Enhancement if death were to occur at any of the following:
○
Year 3 – Day 100: $7,005 [($141,000 – $112,981) × 25%]
○
3rd Anniversary: $7,755 [($144,000 – $112,981) × 25%]
E-4
Appendix F – Polaris portfolio allocator program for contracts issued prior to FEBRUARY 6, 2017
POLARIS PORTFOLIO ALLOCATOR PROGRAM For contracts issued prior to february 6,
2017
Effective on February 6, 2017, the Polaris Allocator Program is no longer
offered.
If you invested in a Polaris Portfolio Allocator Model prior to
February 6, 2017, you will remain invested in the same Variable Portfolios and in the
same amounts and weights as before the Polaris Portfolio Allocator Program was
terminated; however, the investment will no longer be considered to be a Polaris Portfolio Allocator Model and you may no longer trade into a Polaris Portfolio Allocator Model. Any active asset rebalancing or dollar
cost averaging programs will continue according to your current allocations on file.
You should speak with your financial representative about how to keep the Variable Portfolio allocations in each Portfolio Allocator Model in line with your investment goals over time.
Allocations (effective February 6, 2017)
| Variable Portfolios |
Allocation
1 |
Allocation
2 |
Allocation
3 |
Allocation
4 |
| Invesco V.I. Comstock Fund |
5.00% |
5.00% |
6.00% |
8.00% |
| Invesco V.I. Growth and
Income Fund |
6.00% |
7.00% |
8.00% |
8.00% |
| SA AB Growth |
3.00% |
4.00% |
4.00% |
6.00% |
| SA AB Small & Mid Cap
Value |
1.00% |
1.00% |
1.00% |
2.00% |
| SA American Century
Inflation Managed |
5.00% |
3.00% |
2.00% |
0.00% |
| SA American Funds Global
Growth |
2.00% |
3.00% |
4.00% |
6.00% |
| SA American Funds
Growth-Income |
0.00% |
0.00% |
1.00% |
4.00% |
| SA BlackRock Advantage
International |
3.00% |
3.00% |
4.00% |
5.00% |
| SA Federated Hermes
Corporate Bond |
10.00% |
8.00% |
7.00% |
1.00% |
| SA Fidelity Institutional AM®
Real Estate |
0.00% |
0.00% |
0.00% |
1.00% |
| SA Franklin BW U.S. Large
Cap Value |
4.00% |
4.00% |
4.00% |
5.00% |
| SA Franklin Small Company
Value |
0.00% |
2.00% |
2.00% |
1.00% |
| SA Franklin Systematic
U.S. Large Cap Value |
3.00% |
3.00% |
3.00% |
5.00% |
| SA Goldman Sachs
Government and Quality
Bond |
8.00% |
8.00% |
7.00% |
2.00% |
| SA Janus Focused Growth* |
0.00% |
1.00% |
1.00% |
2.00% |
| SA JPMorgan Emerging
Markets |
0.00% |
1.00% |
2.00% |
2.00% |
| SA JPMorgan Equity-Income |
6.00% |
7.00% |
8.00% |
8.00% |
| SA JPMorgan Large Cap
Core |
3.00% |
4.00% |
4.00% |
6.00% |
| SA JPMorgan MFS Core
Bond |
17.00% |
13.00% |
10.00% |
5.00% |
| SA JPMorgan Ultra-Short
Bond |
2.00% |
1.00% |
0.00% |
0.00% |
| SA MFS Large Cap Growth |
2.00% |
3.00% |
4.00% |
4.00% |
| SA MFS Massachusetts
Investors Trust |
6.00% |
6.00% |
7.00% |
8.00% |
| SA PIMCO Global Bond
Opportunities |
4.00% |
4.00% |
2.00% |
2.00% |
| SA PIMCO RAE International
Value |
3.00% |
3.00% |
3.00% |
4.00% |
| SA PineBridge High-Yield
Bond |
4.00% |
3.00% |
2.00% |
0.00% |
| SA Wellington Capital
Appreciation |
3.00% |
3.00% |
4.00% |
5.00% |
| Total |
100% |
100% |
100% |
100% |
F-1
Appendix G – Living Benefit Examples
The following examples demonstrate how market performance, subsequent Purchase Payments, and withdrawals impact the Income Protector Living Benefit, and how the final Income Annuity Payment under the Living Benefit is determined.
The examples are based on a hypothetical contract over an extended period of
time and do not assume any specific rate of return nor do they represent how your contract will actually perform. The examples assume election of the optional Plus
Income Protector with a growth rate of 3.25%.
Example 1: Initial Values
The values shown below are based on the following assumptions:
•
Initial Purchase Payment = $100,000
| Values as of |
Contract Value Before |
Purchase Payment
Invested |
Contract Value After |
Income Benefit Base |
| Issue Date |
$100,000 |
$100,000 |
$100,000 |
$100,000 |
Income Benefit Base was the initial Purchase Payment of $100,000.
Example 2: Impact of Adding Subsequent Purchase
Payments
The values shown below are based on the assumptions stated in Example 1 above, in addition to the following:
•
Subsequent Purchase Payment invested on day 80 of $50,000.
•
No withdrawals taken in the first Contract Year.
| Values as of |
Assumed Contract
ValueBefore |
Purchase Payment
Invested |
Contract ValueAfter |
Income Benefit Base |
| Contract Date |
$0 |
$100,000 |
$100,000 |
$100,000 |
| Year 1 – Day 80 |
$105,000 |
$50,000 |
$155,000 |
$150,703 |
| 1st Anniversary |
$160,000 |
- |
$160,000 |
$154,514 |
•
In day 80, the Income Benefit Base interest accrued before the $50,000 subsequent
Purchase Payment increased the value dollar-for-dollar to $150,703 {$100,000 x [(1 + 3.25%)^(80/365)] + $50,000)}.
•
At the 1st Contract Anniversary, the Income Benefit Base increased by 3.25% for
another 285 days to $154,514 {$150,703 x [(1 + 3.25%)^(285/365)]}.
Example 3: Impact of Withdrawals on Income Benefit Base
The values shown below are based on the assumptions
stated in Examples 1 and 2 above, in addition to the following:
•
A withdrawal of $17,000 was taken in the third Contract Year.
| Values as of |
Assumed Contract Value
Before |
Withdrawal Taken |
Contract Value After |
Income Benefit Base |
| 2nd Anniversary |
$168,000 |
– |
$168,000 |
$159,536 |
| Year 3 – Day 100 |
$170,000 |
$17,000 |
$153,000 |
$144,846 |
| 3rd Anniversary |
$144,000 |
– |
$144,000 |
$148,249 |
•
The Income Benefit Base reduced in the same proportion by which the Contract
Value is reduced by withdrawal amount.
○
In year 3 – day 100, the proportionate reduction was 10.0% ($17,000/$170,000); the Income Benefit Base reduced to $144,846 {$159,536 × [(1 + 3.25%)^(100/365) x (1 – 10%)]}.
○
At 3rd Anniversary, the Income Benefit Base increased by 3.25% for the remainder of the contract year to $148,249 {$144,846 × [(1 + 3.25%)^(265/365)]}.
G-1
Example 4:
The Final Income Benefit Base at the Income Benefit Date
The values shown below are based on the assumptions stated in Example 3 above, in addition to the following:
•
No withdrawals or subsequent Purchase Payments are made up to the Income Benefit
Date.
•
No tax or any charges on and after the Income Benefit Date.
| Values as of |
Assumed Contract Value |
Income Benefit Base |
Final Income Benefit Base |
| 4th Anniversary |
$178,000 |
$153,067 |
– |
| 5th Anniversary |
$190,000 |
$158,042 |
– |
| 6th Anniversary |
$150,000 |
$163,178 |
– |
| 7th Anniversary |
$146,000 |
$168,481 |
$168,481 |
•
At the Income Benefit Date of the 7th Contract Anniversary, the Income Benefit
Base increased by 3.25% every year to $168,481; the Contract Value is $146,000
Example 5: How the Income Payments are Determined
The values shown below are based on the assumptions stated in Example 4 above, in addition to the following:
•
Assume Annuitant elects to receive income payments on contract anniversary, using
the Plus Income Protector feature of $168,481, rather than the Contract Value.
•
Assume Annuitant’s Attained age is 70 at the Annuitization date, of both
the single and joint scenarios.
| |
Monthly Annuity Factor |
Annual Annuity Payment |
| Male Age 70* |
5.83 |
$11,787 |
| Female Age 70* |
5.17 |
$10,453 |
| Joint** Male 70
Female 70 |
4.45 |
$8,997 |
*
For Life Annuity with 10 Years Guaranteed
**
For Joint and Survivor Life Annuity with 20 Years Guaranteed
G-2
The Statement of
Additional Information (SAI) contains additional information about the contract, the Company, and the Separate Account, including financial statements. The SAI is dated
the same date as this prospectus, and the SAI is incorporated by reference into this prospectus. You may request a free copy of the SAI or submit inquiries by:
•
Mailing: Annuity Service Center, P.O. Box 15570, Amarillo, Texas
79105-5570
•
Calling: (855) 421-2692
•
Visiting: www.corebridgefinancial.com/ProductProspectuses
You may also
obtain other information about the Separate Account on the SEC’s website at www.sec.gov, and copies of this information may be obtained, upon payment of a duplicating fee, by electronic
request at the following email address: publicinfo@sec.gov.
EDGAR Contract Identifier: C000124668
STATEMENT OF ADDITIONAL INFORMATION
FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY
CONTRACT
ISSUED BY
AMERICAN GENERAL LIFE INSURANCE COMPANY
IN CONNECTION WITH
VARIABLE SEPARATE ACCOUNT
POLARIS II VARIABLE ANNUITY
This Statement of Additional Information is not a prospectus; it should be read with the prospectus, dated May 1, 2026, relating to the annuity contracts described above. A copy of the prospectus may be obtained without charge by calling (855) 421-2692, visiting www.corebridgefinancial.com/ProductProspectuses, or writing us at:
AMERICAN GENERAL LIFE INSURANCE COMPANY
ANNUITY SERVICE CENTER
P.O. BOX 15570
AMARILLO, TEXAS 79105-5570
ANNUITY SERVICE CENTER
P.O. BOX 15570
AMARILLO, TEXAS 79105-5570
May 1, 2026
Separate Account and the Company
American General Life Insurance Company (“AGL” or the “Company”) is a stock life insurance company organized under the laws of the State of Texas on April 11, 1960. AGL is an indirect, wholly owned subsidiary of Corebridge Financial, Inc. (“Corebridge”). On March 26, 2026, Corebridge and Equitable Holdings, Inc., announced that they entered into a definitive
agreement to combine in an all-stock merger. Under the terms of the merger agreement, both companies will become wholly owned subsidiaries of a newly formed holding
company, which will be renamed “Equitable Holdings, Inc.” upon the closing of the transaction. The transaction is expected to close by year-end 2026, subject to certain regulatory approvals and other customary closing conditions. Upon completion of the transaction, AGL
will be an indirect wholly owned subsidiary of the new Equitable Holdings, Inc. AGL offers individual term and universal life insurance, as well as fixed, variable and registered index-linked annuities in all states except in New York.
On December 31, 2012, SunAmerica Annuity and Life Assurance Company (“SunAmerica Annuity”), American General Assurance Company (“AGAC”), American General Life and Accident Insurance Company (“AGLA”), American General Life Insurance Company of Delaware (“AGLD”), SunAmerica Life Insurance Company (“SALIC”) and Western National Life Insurance Company, (“WNL”), affiliates of American General Life Insurance Company, merged with and into American General Life Insurance Company (“Merger”). Prior to this date, the Polaris II contracts were issued by SunAmerica Annuity in all states except New York.
Variable Separate Account (“Separate Account”) was originally established by Anchor National Life Insurance Company (“Anchor National”) under Arizona law on January 1, 1996 when it assumed the Separate Account, originally established under California law on June 25, 1981. Effective March 1, 2003, Anchor National changed its name to AIG SunAmerica Life Assurance Company (“SunAmerica Life”). Effective July 20, 2009, SunAmerica Life changed its name to SunAmerica Annuity and Life Assurance Company. These were name changes only and did not affect the substance of any contract. Prior to December 31, 2012, the Separate Account was a separate account of SunAmerica Annuity. On December 31, 2012, and in conjunction with the merger of AGL and SunAmerica Annuity, the Separate Account was transferred to and became a Separate Account of AGL under Texas law.
The Separate Account meets the definition of a “Separate Account”
under the federal securities laws and is registered with the SEC as a unit investment trust under the Investment Company Act of 1940. This registration does not involve supervision of the management of the Separate Account or the Company by the SEC.
The assets of the Separate Account are the property of the Company. However, the assets of the Separate Account, equal to its reserves and other contract liabilities, are not chargeable with liabilities arising out of any other business the Company may conduct. Income, gains, and losses, whether or not realized, from assets allocated to the Separate Account are credited to or charged against the Separate Account without regard to other income, gains, or losses of the Company.
The Separate Account is divided into Variable Portfolios, with the assets of
each Variable Portfolio invested in the shares of one of the Underlying Funds. The Company does not guarantee the investment performance of the Separate Account, its Variable Portfolios or the Underlying Funds. Values allocated to the Separate Account and the amount of variable annuity income payments will vary with the values of shares of the Underlying Funds, and are also reduced by contract charges and fees.
The basic objective of a variable annuity contract is to provide variable
annuity income payments which will be to some degree responsive to changes in the economic environment, including inflationary forces and changes in rates of return available from various types of investments. The contract is designed to seek to accomplish this objective by providing that variable annuity income payments will reflect the investment performance of the Separate Account with respect to amounts allocated to it both before and after the Annuity Date. Since the Separate Account is always fully invested in shares of the Underlying Funds, its investment performance reflects the investment performance of those entities. The values of such shares held by the Separate Account fluctuate and are subject to the risks of changing economic conditions as well as the risk inherent in the ability of the Underlying Funds’ management to make necessary changes in their funds to anticipate changes in economic conditions. Therefore, the owner bears the entire investment risk that the basic objectives of the contract may not be realized, and that the adverse effects of inflation may not be lessened. There can be no assurance that the aggregate amount of variable annuity income payments will equal or exceed the Purchase Payments made with respect to a particular account for the reasons described above, or because of the premature death of an Annuitant.
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Another important
feature of the contract related to its basic objective is the Company’s promise that the dollar amount of variable annuity income payments made during the
lifetime of the Annuitant will not be adversely affected by the actual mortality experience of the Company or by the actual expenses incurred by the Company in excess
of expense deductions provided for in the contract (although the Company does not guarantee the amounts of the variable annuity income payments).
American Home Assurance Company
All references in this SAI to American Home Assurance Company (“American Home”) apply only to contracts issued prior to December 29, 2006 at 4:00 p.m. Eastern Time. American Home is a stock property-casualty insurance company incorporated under the laws of the State of New York on February 7, 1899. American Home’s principal executive office is located at 1271 Avenue of the Americas, FL37, New York, NY 10020-1304. American Home is licensed in all 50 states of the United States and the District of Columbia, as well as certain foreign jurisdictions, and engages in a broad range of insurance and reinsurance activities. American Home is an indirect wholly-owned subsidiary of American International Group, Inc.
Custodian
The Company acts as custodian of the Separate Account.
We have custody of all assets and cash of the Separate Account and handle the collection of proceeds of shares of the Underlying Funds bought and sold by the Separate
Account.
General Account
The general account is made up of all of the general
assets of the Company other than those allocated to the Separate Account or any other segregated asset account of the Company. A Purchase Payment may be allocated to
the available fixed account options and/or available DCA fixed accounts in connection with the general account, as elected by the owner at the time of purchasing a contract or when making a subsequent Purchase Payment. Assets
supporting amounts allocated to fixed account options become part of the Company’s general account assets and are available to fund the claims of all classes of customers of the Company, as well as of its creditors. Accordingly, all of the Company’s assets held in the general account will be available to fund the Company’s obligations under the contracts as well as such other claims.
The Company will invest the assets of the general account in the manner chosen by the Company and allowed by applicable state laws regarding the nature and quality of investments that may be made by life insurance companies and the percentage of their assets that may be committed to any particular type of investment. In general, these laws permit investments, within specified limits and subject to certain qualifications, in federal, state and municipal obligations, corporate bonds, preferred and common stocks, real estate mortgages, real estate and certain other investments.
Annuity Income
Payments
Initial Monthly Annuity Income Payments
The initial monthly annuity income payment is determined
by applying separately that portion of the contract value allocated to the fixed account options and the Variable Portfolio(s), less any premium tax if applicable, and
then applying it to the annuity table specified in the contract for fixed and variable annuity income payments. Those tables are based on a set amount per $1,000 of proceeds applied. The appropriate rate must be determined by the sex (except where, as in the case of certain Qualified contracts and other employer-sponsored retirement plans, such classification is not permitted) and age of the Annuitant and designated second person, if any, and the annuity income option selected.
The dollars applied are then divided by 1,000 and the result multiplied by
the appropriate annuity factor appearing in the table to compute the amount of the first monthly annuity income payment. In the case of a variable annuity, that amount is divided by the value of an Annuity Unit as of the Annuity Date to establish the number of Annuity Units representing each variable annuity income payment. The number of Annuity Units determined for the first monthly variable annuity income payment remains constant for the second and subsequent monthly variable annuity income payments, assuming that no reallocation of contract values is made.
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Subsequent Monthly Annuity Income Payments
For fixed annuity income payments, the amount of the second and each subsequent monthly fixed annuity income payment is the same as that determined above for the first fixed monthly annuity income payment.
For variable annuity income payments, the amount of the second and each subsequent monthly variable annuity income payment is determined by multiplying the number of Annuity Units, as determined in connection with the determination of the initial monthly variable annuity income payment, above, by the Annuity Unit value as of the day preceding the date on which each monthly variable annuity income payment is due.
Annuity Unit Values
The value of an Annuity Unit is determined independently for each Variable Portfolio.
The annuity tables contained in the contract are based on a 3.5% per annum assumed investment rate. If the actual net investment rate experienced by a Variable Portfolio exceeds 3.5%, variable annuity income payments derived from allocations to that Variable Portfolio will
increase over time. Conversely, if the actual rate is less than 3.5%, variable annuity income payments will decrease over time. If the net investment rate equals 3.5%, the variable annuity income payments will remain constant. If a higher assumed investment rate
had been used, the initial monthly variable annuity income payment would be higher, but the actual net investment rate would also have to be higher in order for variable annuity income payments to increase (or not to decrease).
The payee receives the value of a fixed number of Annuity Units each
month. The value of a fixed number of Annuity Units will reflect the investment performance of the Variable Portfolios elected, and the amount of each monthly variable annuity income payment will vary accordingly.
For each Variable Portfolio, the value of an Annuity Unit is determined by
multiplying the Annuity Unit value for the preceding month by the Net Investment Factor for the month for which the Annuity Unit value is being calculated. The result is then multiplied by a second factor which offsets the effect of the assumed net investment rate of 3.5% per annum
which is assumed in the annuity tables contained in the contract.
Net Investment Factor
The Net Investment Factor (“NIF”) is an index applied to measure
the net investment performance of a Variable Portfolio from one day to the next. The NIF may be greater or less than or equal to one; therefore, the value of an Annuity Unit may increase, decrease or remain the same.
The NIF for any Variable Portfolio for a certain month is determined by
dividing (a) by (b) where:
(a)
is the Accumulation Unit value of the Variable Portfolio determined as of the end
of that month, and
(b)
is the Accumulation Unit value of the Variable Portfolio determined as of the end
of the preceding month.
The NIF for a Variable Portfolio for a given month is a measure of the net
investment performance of the Variable Portfolio from the end of the prior month to the end of the given month. A NIF of 1.000 results in no change; a NIF greater than 1.000 results in an increase; and a NIF less than 1.000 results in a decrease. The NIF is increased (or decreased) in accordance with the increases (or decreases, respectively) in the value of a share of the underlying fund in which the Variable Portfolio invests; it is also reduced by Separate Account asset charges.
Illustrative Example
Assume that one share of a given Variable Portfolio had an Accumulation Unit value of $11.46 as of the close of the New York Stock Exchange (“NYSE”) on the last business day in September; that its Accumulation Unit value had been $11.44 at the close of the NYSE on the last business day at the end of the previous month. The NIF for the month of September is:
| NIF
|
= |
($11.46/$11.44) |
| |
= |
1.00174825 |
The change in Annuity Unit value for a Variable Portfolio from one month to the next is determined in part by multiplying the Annuity Unit value at the prior month end by the NIF for that Variable Portfolio for the new month. In addition, however, the result of that computation must also be multiplied by an additional factor that takes into account, and neutralizes, the assumed investment rate of 3.5 percent per annum upon which the variable annuity
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income payment
tables are based. For example, if the net investment rate for a Variable Portfolio (reflected in the NIF) were equal to the assumed investment rate, the variable
annuity income payments should remain constant (i.e., the Annuity Unit value should not change). The monthly factor that neutralizes the assumed investment rate of 3.5
percent per annum is:
| |
|
(1/12) |
|
|
|
| 1/ |
[(1.035) |
|
] |
= |
0.99713732 |
In the example given above, if the Annuity Unit value for the Variable Portfolio was $10.103523 on the last business day in August, the Annuity Unit value on the last business day in September would have been:
$10.103523 x 1.00174825 x 0.99713732 = $10.092213
To determine the initial variable annuity income payment, the annuity income
payment for variable annuitization is calculated based on our mortality expectations and an assumed investment rate (AIR) of 3.5%. Thus the initial variable annuity income payment is the same as the initial payment for a fixed interest payout annuity calculated at an effective rate of 3.5%.
The NIF measures the performance of the funds that are basis for the amount
of future variable annuity income payments. This performance is compared to the monthly AIR, and if the rate of growth in the NIF is the same as the monthly AIR the payment remains the same as the prior month. If the rate of growth of the NIF is different than the AIR, then the payment is changed proportionately to the ratio NIF / (1+AIR), calculated on a monthly basis. If the NIF is less than the AIR, then this proportion is less than one and payments are decreased.
Variable Annuity Income Payments
Illustrative Example
Assume that a contract has all of its account value allocated to a single
Variable Portfolio. As of the last valuation preceding the Annuity Date, the account was credited with 7543.2456 Accumulation Units, each having a value of $15.432655 (i.e., the account value is equal to 7543.2456 x $15.432655 = $116,412.31). Assume also that the Annuity Unit value for the Variable Portfolio on that same date is $13.256932, and that the Annuity Unit value on the day immediately prior to the second variable annuity income payment date is $13.327695.
The first variable annuity income payment is determined using the annuity factor tables specified in the contract. These tables supply monthly annuity income payment factors, determined by the sex, age of the Annuitant and annuity income option selected, for each $1,000 of applied contract value. If the applicable factor is 5.21 for the annuitant in this hypothetical example, the first variable annuity income payment is determined by multiplying the factor of $5.21 by the result of dividing the account value by $1,000:
First variable annuity income payment =
$5.21 x ($116,412.31/$1000) = $606.51
The number of Annuity Units (which will be constant unless the account values is transferred to another account) is also determined at this time and is equal to the amount of the first variable annuity income payment divided by the value of an Annuity Unit on the day immediately prior to annuitization:
Annuity Units = $606.51/$13.256932 =
45.750404
The second variable annuity income payment is determined by multiplying the number of Annuity Units by the Annuity Unit value as of the day immediately prior to the second variable annuity payment due date:
Second variable annuity income payment = 45.750404 x $13.327695 = $609.75
The third and subsequent variable annuity income
payments are computed in a manner similar to the second variable annuity income payment.
Note that the amount of the first variable annuity income payment depends on the contract value in the relevant Variable Portfolio on the Annuity Date and thus reflects the investment performance of the Variable Portfolio net of fees and charges during the Accumulation Phase. The amount of that payment determines the number of Annuity Units, which will remain constant during the Annuity Phase (assuming no transfers from the Variable Portfolio). The net investment performance of the Variable Portfolio during the Annuity Phase is reflected in continuing changes during this phase in the Annuity Unit value, which determines the amounts of the second and subsequent variable annuity income payments.
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Broker-Dealer Firms Receiving Revenue Sharing Payments
The following list includes the names of member firms of FINRA (or their affiliated broker-dealers) that received a revenue sharing payment of more than $15,000 as of the calendar year ending December 31, 2025, from American
General Life Insurance Company and The United States Life Insurance Company in the City of New York, both affiliated companies. Your registered representative can provide you with more information about the
compensation arrangements that apply upon the sale of the
Contract.
| Ameriprise |
MML Investors |
| Centaurus Financial, Inc |
Osaic Institutions, Inc |
| Cetera Advisor Networks LLC |
Osaic Wealth Inc |
| Cetera Advisors LLC |
Primerica |
| Cetera Financial Institutions |
Raymond James & Associates |
| Edward Jones |
Stifel Nicolaus |
| Independent Financial Group |
Wells Fargo Advisors PCG |
| Kestra Investment Services |
Wells Fargo Advisors WBS |
We will update this list annually; interim arrangements may not be reflected. You are encouraged to review the prospectus for each Underlying Fund for any other compensation
arrangements pertaining to the distribution of Underlying Fund
shares.
Certain broker dealers with which we have selling agreements are our affiliates. In an effort to promote the sale of our products, affiliated firms may pay their registered representatives additional cash incentives which may include but are not limited to bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the Contracts, that they would not receive in connection with the sale of contracts issued by unaffiliated companies.
Distribution of Contracts
The contracts are offered on a continuous basis through Corebridge Capital Services, Inc., located at 30 Hudson Street, 16th Floor, Jersey City, NJ 07302. Corebridge Capital Services, Inc. (“CCS”) is registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, and is a member of the Financial Industry Regulatory Authority. CCS is a
wholly-owned
subsidiary of AGL. No underwriting fees are paid in connection with the distribution
of the contracts.
-7-
Financial Statements
PricewaterhouseCoopers LLP, located at 300 Madison Avenue New York, New York, 10017, serves as the independent registered public accounting firm for Variable Separate Account, American General Life Insurance Company (“AGL”), and American Home Assurance Company.
You may obtain a free copy of these financial statements if you write us at
our Annuity Service Center or by calling (855) 421-2692. The financial statements have also been filed with the SEC and can be obtained through its website at
www.sec.gov.
The following financial statements incorporated by reference within the SAI included on
the most recent Form N-VPFS
filed with the SEC have been so incorporated in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting:
•
The Audited statement of assets and liabilities of Variable Separate Account of American General Life Insurance Company as of December 31, 2025, and the related statements of operations and changes in net assets for each of the two years in the period then ended December 31, 2025.
•
The Audited Statutory Financial Statements and Supplemental Information of
American General Life Insurance Company, which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2025 and December
31, 2024, and the related statutory statements of operations, of changes in capital and surplus, and of cash flows for each of the three years in the period ended
December 31, 2025.
The following financial statements incorporated by reference
within the SAI included on the most recent Form
N-VPFS filed with the SEC have been so incorporated in reliance on the reports of PricewaterhouseCoopers
LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting:
•
The Audited Statutory Basis Financial Statements of American Home Assurance
Company, which comprise the statutory statements of admitted assets, liabilities and capital and surplus as of December 31, 2025
and December 31, 2024, and the related statutory statements of operations, and of changes in capital and surplus, and of
cash flows for each of the three years in the period ended December 31, 2025.
The financial statements of AGL should be considered only as
bearing on the ability of AGL to meet its obligation under the contracts.
You should only consider the statutory financial statements of American Home Assurance Company (“American Home”) that we include in the Statement of Additional Information as a bearing on the ability of American Home, as guarantor, to meet its obligations under the guarantee of insurance obligations under contracts issued prior to December 29, 2006, at 4:00 p.m. Eastern Time (“Point of Termination”). Contracts with an issue date after the Point of Termination are not covered by the American Home guarantee.
-8-
Part C — Other Information
Item 27. Exhibits
| Exhibit
Number |
Description |
Location |
| (a) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-25473 and 811-03859, filed on April 18, 1997,
Accession No. 0000950148-97-000989. | |
| (b) |
Custodian Agreements |
Not Applicable |
| (c)(1) |
Incorporated by reference to Post-Effective Amendment No. 20
and Amendment No. 20, File Nos. 333-185762 and 811-03859,
filed on April 25, 2019, Accession No.
0001193125-19-119309. | |
| (c)(2) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-185762 and 811-03859, filed on January 2, 2013,
Accession No. 0000950123-12-014430. | |
| (d)(1) |
Incorporated by reference to Post-Effective Amendment No. 2
and Amendment No. 3, File Nos. 333-25473 and 811-03859,
filed on March 20, 1998, Accession
No. 0000950148-98-000534. | |
| (d)(2) |
Incorporated by reference to Post-Effective Amendment No. 24
and Amendment No. 25, File Nos. 333-25473 and 811-03859,
filed on April 19, 2004, Accession No.
0000950129-04-002177. | |
| (d)(3) |
Incorporated by reference to Post-Effective Amendment No. 24
and Amendment No. 25, File Nos. 333-25473 and 811-03859,
filed on April 19, 2004, Accession No.
0000950129-04-002177. | |
| (d)(4) |
Incorporated by reference to Post-Effective Amendment No. 24
and Amendment No. 25, File Nos. 333-25473 and 811-03859,
filed on April 19, 2004, Accession No.
0000950129-04-002177. | |
| (d)(5) |
Incorporated by reference to Post-Effective Amendment No. 24
and Amendment No. 25, File Nos. 333-25473 and 811-03859,
filed on April 19, 2004, Accession No.
0000950129-04-002177. | |
| (d)(6) |
Incorporated by reference to Post-Effective Amendment No. 17
and Amendment No. 18, File Nos. 333-137867 and 811-03859,
filed on April 27, 2011, Accession No.
0000950123-11-040070. | |
| (d)(7) |
Incorporated by reference to Post-Effective Amendment No. 7
and Amendment No. 7, File Nos. 333-185762 and 811-03859,
filed on April 29, 2016, Accession No. 0001193125-16-568243.
| |
| (e) |
Application for Contract |
|
| (e)(1) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-25473 and 811-03859, filed on April 18, 1997,
Accession No. 0000950148-97-000989. | |
| (e)(2) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-185762 and 811-03859, filed on January 2, 2013,
Accession No. 0000950123-12-014430. | |
| (f) |
Corporate Documents of Insurance Company |
|
| (f)(1) |
Incorporated by reference to Initial Registration Statement on
Form S-1, filed on February 21, 2024, Accession
No. 0001193125-24-040282. | |
| (f)(2) |
Incorporated by reference to Post-Effective Amendment No. 11
and Amendment No. 46, File Nos. 333-43264 and 811-08561,
of American General Life Insurance Company Separate
Account VL-R, filed on August 12, 2005, Accession
No. 0001193125-05-165474. | |
| (g) |
Reinsurance Contract |
Not Applicable |
| (h) |
Participation Agreements |
|
| (h)(1) |
Filed Herewith |
| Exhibit
Number |
Description |
Location |
| (h)(2) |
Incorporated by reference to Pre-Effective Amendment No. 1
and Amendment No. 1, File Nos. 333-91860 and 811-03859,
filed on October 28, 2002, Accession
No. 0000898430-02-003844. | |
| (h)(3) |
Incorporated by reference to Pre-Effective Amendment No. 1
and Amendment No. 1, File Nos. 333-91860 and 811-03859,
filed on October 28, 2002, Accession
No. 0000898430-02-003844. | |
| (h)(4) |
Incorporated by reference to Pre-Effective Amendment No. 1
and Amendment No. 1, File Nos. 333-66114 and 811-03859,
filed on October 25, 2001, Accession
No. 0000950148-01-502065. | |
| (h)(5) |
Incorporated by reference to Post-Effective Amendment No. 7
and Amendment No. 8, File Nos. 333-157199 and 811-03859,
filed on August 25, 2010, Accession
No. 0000950123-10-080861. | |
| (h)(6) |
Filed Herewith | |
| (h)(7) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-185762 and 811-03859, filed on January 2, 2013,
Accession No. 0000950123-12-014430. | |
| (i) |
Administrative Contracts |
Not Applicable |
| (j) |
Other Material Contracts |
|
| (j)(1) |
Incorporated by reference to Post-Effective Amendment No. 26
and Amendment No. 27, File Nos. 333-25473 and 811-03859,
filed on August 12, 2005, Accession
No. 0000950129-05-008172. | |
| (j)(2) |
Incorporated by reference to Post-Effective Amendment No. 16
and Amendment No. 17, File Nos. 333-66106 and 811-07727,
filed on December 12, 2006, Accession
No. 0000950124-06-007496. | |
| (j)(3) |
Incorporated by reference to Post-Effective Amendment No. 17
and Amendment No. 18, File Nos. 333-137867 and 811-03859,
filed on April 27, 2011, Accession No.
0000950123-11-040070. | |
| (j)(4) |
Incorporated by reference to Post-Effective Amendment No. 3
and Amendment No. 3, File Nos. 333-185778 and 811-03859,
filed on April 30, 2014, Accession No. 0000950123-14-004617.
| |
| (j)(5) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-185762 and 811-03859, filed on January 2, 2013,
Accession No. 0000950123-12-014430. | |
| (j)(6) |
Incorporated by reference to Post-Effective Amendment No. 3
and Amendment No. 3, File Nos. 333-185799 and 811-03859,
filed on April 30, 2015, Accession No. 0001193125-15-161194.
| |
| (k)(1) |
Incorporated by reference to Initial Registration Statement, File
Nos. 333-185799 and 811-03859, filed on January 2, 2013,
Accession No. 0000950123-12-014661. | |
| (k)(2) |
Incorporated by reference to Post-Effective Amendment No. 18
and Amendment No. 22, File Nos. 333-67685 and 811-07727,
filed on October 21, 2005, Accession
No. 0000950134-05-019473. | |
| (l) |
Filed Herewith | |
| (m) |
Financial Statements Omitted |
None |
| (n) |
Initial Capital Agreement |
Not Applicable |
| (o) |
Form of Initial Summary Prospectus |
Not Applicable |
| (p) |
Power of Attorney |
|
| Exhibit
Number |
Description |
Location |
| (p)(1) |
Incorporated by reference to Post-Effective Amendment No. 10
to Form N-4, File No. 333-277203, filed on October 24,
2025, Accession No. 0001193125-25-25000. | |
| (p)(2) |
Filed Herewith | |
| (q) |
Letter Regarding Change in Certifying
Accountant |
Not Applicable |
| (r) |
Historical Current Limits on Index Gains |
Not Applicable |
Item 28. Directors and Officers of the Insurance
Company
The directors and principal officers of the American General Life Insurance Company are set forth below. The business address of each officer and director is 2727-A Allen Parkway, 3-D1, Houston, TX 77019, unless otherwise noted.
| Names, Positions and Offices Held with the Insurance Company | |
| Christopher B. Smith (7) |
Director, Chairman of the Board and President |
| Christopher P. Filiaggi (7) |
Director, Senior Vice President and Chief Financial Officer |
| Jonathan J. Novak (1) |
Director, President, Institutional Markets |
| Bryan A. Pinsky (2) |
Director, President, Individual Retirement and Life Insurance |
| Lisa M. Longino (7) |
Director, Executive Vice President and Chief Investment Officer |
| David Ditillo (5) |
Director, Executive Vice President and Chief Information Officer |
| Emily W. Gingrich (4) |
Director, Senior Vice President, Chief Actuary and Corporate Illustration Actuary |
| Eric G. Tarnow |
Director, Senior Vice President, Head of Life Insurance |
| Terri N. Fiedler (3) |
Director |
| Elizabeth B. Cropper (7) |
Executive Vice President and Chief Human Resources Officer |
| John P. Byrne III (3) |
President, Financial Distributor |
| Steven D. (“Doug”) Caldwell, Jr. (7) |
Executive Vice President and Chief Risk Officer |
| Christina M. Haley (2) |
Senior Vice President, Individual Retirement Products |
| Patricia M. Schwartz (2) |
Senior Vice President, Head of Valuation and Financial Reporting, and Appointed Actuary |
| Sai P. Raman (6) |
Senior Vice President, Institutional Markets |
| Mallary L. Reznik (2) |
Senior Vice President, General Counsel and Assistant Secretary |
| Jeannette N. Pina (7) |
Senior Vice President, Corporate Secretary |
| Jonathan A. Gold (7) |
Senior Vice President and Deputy Investment Officer |
| Brigitte K. Lenz |
Vice President and Controller |
| Jennifer Powell (3) |
Vice President and Chief Compliance Officer, and 38a-1 Compliance Officer |
| Brian O. Moon (7) |
Vice President and Treasurer |
| Mersini G. Keller |
Vice President and Tax Officer |
| Angel R. Ramos |
Vice President and Tax Officer |
| Aimy T. Tran (2) |
Vice President, Product Filing |
| Tyra G. Wheatley |
Vice President, Product Filing |
| Korey L. Dalton |
Vice President |
| Christopher J. Hobson (2) |
Vice President |
| Jennifer N. Miller |
Vice President |
| Marjorie D. Brothers (3) |
Assistant Secretary |
| Alison Chen (1) |
Assistant Secretary |
| William Langston (7) |
Assistant Secretary |
| Angela G. Bates (4) |
Anti-Money Laundering and Economic Sanctions Compliance Officer |
| Joey D. Zhou (3) |
Illustration Actuary |
| Michael F. Mulligan (1) |
Head of International Pension Risk Transfer |
| Ethan D. Bronsnick (7) |
Head of U.S. Pension Risk Transfer and Head of Structured Settlements |
| Aileen V. Apuy |
Manager, State Filings |
| Names, Positions and Offices Held with the Insurance Company | |
| Connie C. Merer (1) |
Assistant Manager, State Filings |
| Melissa H. Cozart (3) |
Privacy Officer |
| Thomas Bartolomeo |
Chief Information Security Officer |
(1)
10880 Wilshire Boulevard, Suite 1101, Los Angeles, CA 90024
(2)
21650 Oxnard Street, Suite 750, Woodland Hills, CA 91367
(3)
2919 Allen Parkway, Houston, TX 77019
(4)
1133 Avenue of the Americas, 33rd Floor, New
York, NY 10036
(5)
3211 Shannon Road, Durham, NC 27707
(6)
401 Merritt 7, Norwalk, CT
06851
(7)
30 Hudson Street, Jersey City, NJ 07302
Item 29. Persons Controlled By or Under Common Control with the Insurance Company or the Registered Separate Account
The Registered Separate Account is a separate account of American General Life Insurance Company (“Insurance Company”). The
Insurance Company is an indirect, wholly owned subsidiary of Corebridge Financial, Inc.
(“Corebridge”). An organizational chart for Corebridge can be found as
Exhibit 21 in Corebridge’s Form 10-K, SEC File No. 001-41504, Accession No. 0001889539-26-000022, filed on February 11, 2026. Exhibit 21 is incorporated herein
by reference.
Item 30. Indemnification
Insofar as indemnification for liability arising under the Securities Act of
1933 (“Act”) may be permitted to directors, officers and controlling persons of the Registered Separate Account pursuant to the foregoing provisions, or otherwise, the Registered Separate Account has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registered Separate Account of expenses incurred or paid by a director, officer or controlling person of the Registered Separate Account in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registered Separate Account will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
American General Life Insurance
Company
To the full extent authorized by law, AGL shall indemnify any person made, or threatened to be made, a party to an action or proceeding,
whether criminal or civil, by reason of the fact that he, his testator or intestate is or was a director or officer of the corporation or serves or served in any
capacity in any other corporation at the request of AGL. Nothing contained herein
shall affect any rights to indemnification to which corporate personnel other than directors and officers may be entitled by contract or otherwise under law.
Item 31. Principal Underwriter
(a) Corebridge Capital Services, Inc. acts as distributor for the following investment companies:
American General Life Insurance Company
Variable Separate Account
Variable Annuity Account Five
Variable Annuity Account Seven
Variable Annuity Account Nine
AG Separate Account D
AGL Separate Account I of AGL
AGL Separate Account VL-R
The United States Life Insurance Company in the City of New
York
FS Variable Separate Account
FS Variable Annuity Account Five
USL Separate Account VL-R
USL Separate Account USL A
USL Separate Account RS
The Variable Annuity Life Insurance Company
Variable Annuity Life Insurance Co Separate Account A
VALIC Company I
(b) Directors, Officers and principal place of business:
| Officer/Directors* |
Position |
| Christina Nasta |
Director, Chairman of the Board, President and Chief Executive Officer |
| John P. Byrne III (1) |
Director |
| Nicholas G. Intrieri |
Director |
| Ryan Tapak |
Director |
| Eric Taylor |
Director |
| Cynthia L. Burnette (1) |
Vice President, Chief Financial Officer, Chief Operations Officer, Treasurer and Controller |
| Michael Fortey (1) |
Chief Compliance Officer |
| Jeannette N. Pina |
Senior Vice President and Corporate Secretary |
| Mersini G. Keller |
Vice President, Tax Officer |
| Anish Cheeran (1) |
Vice President, Tax Officer |
| Angel Ramos (1) |
Vice President, Tax Officer |
| Katarzyna Halasiewicz(1) |
Vice President, Tax Officer |
| Mallary L. Reznik (2) |
Vice President |
| Marjorie Brothers (1) |
Assistant Secretary |
| Allison Chen (2) |
Assistant Secretary |
| William Langston |
Assistant Secretary |
*
Unless otherwise indicated, the principal business address of Corebridge Capital Services, Inc. and of each of the above individuals is 30 Hudson Street, 16th Floor, Jersey City, NJ 07302.
(1) Principal business address 2919 Allen Parkway, Houston, TX 77019
(2) Principal business address 21650 Oxnard Street, Suite 750, Woodland
Hills, CA 91367-4997
(c) Corebridge Capital Services, Inc. retains no compensation or commissions from the Registered
Separate Account.
Item 32. Location of Accounts and Records
All records referenced under Section 31(a) of the 1940 Act, and Rules 31a-1 through 31a-3 thereunder, are maintained and in the custody of American General Life Insurance Company at its principal executive office located at 2727-A Allen Parkway, Houston, Texas 77019-2191 or at American General Life Insurance Company’s Annuity Service Center located at P.O. Box 15570, Amarillo, Texas 79105-5570.
Item 33. Management Services
Not Applicable.
Item 34. Fee Representation and Other
Representations
Fee Representation
Insurance Company represents that the fees and charges to be deducted under the Contracts described in the prospectus
contained 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 Insurance Company in accordance with Section 26(f)(2)(A) of the Investment Company Act of 1940.
Other Representations
The Registered Separate Account hereby represents that it is relying on the No-Action Letter issued by
the Division of Investment Management to the American Council of Life Insurance dated November 28, 1988 (Commission Ref. No. IP-6-88). Registered Separate Account has complied with conditions one through four on the No-Action
Letter.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, the Registrant, Variable Separate Account, 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 Jersey City, and State of New Jersey on this
27th day of April, 2026.
Variable Separate Account
(Registered
Separate Account)
BY: AMERICAN GENERAL LIFE
INSURANCE COMPANY
(On behalf of the Registered Separate Account and itself)
(On behalf of the Registered Separate Account and itself)
BY: * CHRISTOPHER P. FILIAGGI
CHRISTOPHER P. FILIAGGI
DIRECTOR, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
CHRISTOPHER P. FILIAGGI
DIRECTOR, SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
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.
| Signature |
Title |
Date |
| *CHRISTOPHER B. SMITH CHRISTOPHER B. SMITH |
Director, Chairman of the Board and President (Principal Executive Officer) |
April 27, 2026 |
| | ||
| *CHRISTOPHER P. FILIAGGI CHRISTOPHER P. FILIAGGI |
Director, Senior Vice President, and Chief Financial Officer (Principal Financial Officer) (Principal Accounting Officer) |
April 27, 2026 |
| | ||
| *TERRI N. FIEDLER TERRI N. FIEDLER |
Director |
April 27, 2026 |
| | ||
| *EMILY W. GINGRICH EMILY W. GINGRICH |
Director |
April 27, 2026 |
| | ||
| *LISA M. LONGINO LISA M. LONGINO |
Director |
April 27, 2026 |
| | ||
| *JONATHAN J. NOVAK JONATHAN J. NOVAK |
Director |
April 27, 2026 |
| | ||
| *BRYAN A. PINSKY BRYAN A. PINSKY |
Director |
April 27, 2026 |
| | ||
| *ERIC G. TARNOW ERIC G. TARNOW |
Director |
April 27, 2026 |
| | ||
| *BY: /s/ TRINA SANDOVAL
TRINA SANDOVAL
Attorney-in-Fact pursuant to Powers
of Attorney filed previously and/or
herewith. |
|
April 27,
2026 |
SIGNATURES
American Home Assurance Company has caused this amended registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Wilton, and State of Connecticut on the 27th day of April,
2026.
AMERICAN HOME ASSURANCE COMPANY
(Guarantor)
(Guarantor)
BY: /s/ BRIAN RUCKER
BRIAN RUCKER
SENIOR VICE PRESIDENT AND STATUTORY CONTROLLER
BRIAN RUCKER
SENIOR VICE PRESIDENT AND STATUTORY CONTROLLER
This amended registration statement has been signed below by the following persons in the capacities and on the
dates indicated.
| Signature |
Title |
Date |
| *BARBARA LUCK BARBARA LUCK |
Director, President, Chief Executive Officer, and Chairman of the Board of Directors (Principal Executive Officer) |
April 27, 2026 |
| | ||
| *SHELLEY SINGH SHELLEY SINGH |
Director, Chief Financial Officer and Senior Vice President (Principal Financial Officer) |
April 27, 2026 |
| | ||
| *ALLISON COOPER ALLISON COOPER |
Director |
April 27, 2026 |
| | ||
| *MOHAMMAD ABU TURAB HUSSAIN MOHAMMAD ABU TURAB HUSSAIN |
Director |
April 27, 2026 |
| | ||
| *JOHN F. KLAUS JOHN F. KLAUS |
Director |
April 27, 2026 |
| | ||
| *DARREN MEYLER DARREN MEYLER |
Director |
April 27, 2026 |
| | ||
| *KEITH WALSH KEITH WALSH |
Director |
April 27, 2026 |
| | ||
| *BY: /s/ BRIAN RUCKER
BRIAN RUCKER
Attorney-in-Fact
(Exhibit to the Registration
Statement) |
|
April 27,
2026 |