A market value adjusted annuity offers investment options referred to as Guaranteed Period Options (GPO). The GPOs provide for guaranteed interest rates that are credited over specified durations. A guaranteed fixed rate is declared for the length of each GPO.
The guaranteed rate is valid only if the investment is held until maturity. Investments may be split amongst several GPOs. Withdrawals made before maturity of a GPO may be subjected to a contingent deferred sales charge (CDSC) and/or a market value adjustment (MVA). The length of the CDSC schedule is equivalent to the duration of the GPO.
At the end of each GPO (or maturity), assets are moved to a transition account that offers a minimal interest rate. Withdrawals from the transition account are not subject to a contingent deferred sales charge (CDSC) or a market value adjustment (MVA). If assets are transferred from the transition account, a new CDSC schedule will apply for each newly elected GPO.
Designed for retirement saving
Like other types of annuities – fixed or variable, immediate or deferred – market value adjusted annuities are long-term vehicles designed to help you save for retirement.
Keep in mind that withdrawals may be subject to contingent deferred surrender charges (CDSC) and a market value adjustment (MVA). Early withdrawals, those taken prior to age 59½, may be subject to a 10% early withdrawal federal tax penalty in addition to ordinary income taxes. All withdrawals will reduce the death benefit and cash surrender value.
Market Adjusted Annuity Features
- Market value adjusted annuities offer flexibility with a choice of Guaranteed Period Options
- Transfers from a GPO prior to maturity may be subject to both a contingent deferred sales charge (CSDC) and a market value adjustment (MVA)
- Withdrawals or surrenders from a GPO prior to maturity may be subject to both a CDSC and an MVA
- Transfers from the transition account are not subject to a CDSC or MVA, however a new CDSC schedule will apply for the newly elected GPO(s)
- Withdrawals or surrenders from the transition account are not subject to CDSC or an MVA
- Additional CDSC and MVA waivers may be available; refer to the product prospectus for additional details