Nassau Retirement Choice fixed indexed annuity is a 12-year annuity designed to address the retirement risks with a variety of features and options for accumulation, protection, and income:
- HELP ADDRESS SAVINGS SHORTFALLS with a generous upfront premium bonus
- COMBAT INFLATION with potential growth based on the positive performance of a market index
- GUARD AGAINST MARKET LOSSES with principal protection
- GENERATE INCOME FOR LIFE with an optional Guaranteed Lifetime Income Benefit
GROWING YOUR RETIREMENT SAVINGS
BOOST PREMIUM WITH A BONUS
Nassau’s Personal Retirement Choice immediately adds to your premium a bonus that vests over time.
This bonus is eligible to earn interest credits, thereby increasing your growth potential.
INDEXED ACCOUNTS HARNESS MARKET UPSIDE
Indexed accounts credit interest to your annuity when the index experiences a positive market performance.
PRINCIPAL PROTECTION
Nassau Personal Retirement Choice allows you to benefit from the growth of the market without downside risk.
This is because the minimum index credit applied to your account value is guaranteed never to be less than 0.
Your account will never lose value due to market downturns.
THE POWER OF TAX DEFERRAL
In an annuity, everything you earn is tax-deferred, so your money can grow faster.
Your annuity’s tax-deferred earnings are not included in your combined income when determining the amount of your social security income that is subject to taxes.
If you purchase your annuity with after-tax funds, only a portion of your annuity income will be taxable.
FAMILY PROTECTION
Nassau Personal Retirement Choice allows you to transfer your annuity’s value to your loved ones if you should die while your contract is in force.
Your beneficiaries will receive an amount equal to the greater of the account value less any nonvested premium bonus, or the total guaranteed value.
The funds will be available to your loved ones immediately upon a claim, since annuity death benefit proceeds are not subject to probate.
MARKET PARTICIPATION & DOWNSIDE PROTECTION
You may choose to allocate your contract value to one or a combination of accounts, which earn interest based on the positive performance of the S&P 500 Index or the CS Tactical Multi-Asset Index.
ABOUT THE S&P 500 INDEX
Comprised of 500 major companies, the S&P 500 Index includes representation from the leading industries of the U.S. economy.
ABOUT THE CS TACTICAL MULTI ASSET INDEX
The Credit Suisse Tactical Multi-Asset Index consists of a diverse selection of Exchange Traded Funds (ETFs) which track four distinct asset classes:
- Equity
- Fixed Income
- Commodities and Real Estate
Allocations to the ETFs are periodically adjusted using a predetermined set of rules that aims to maximize return for a given level of risk.
In addition, a volatility targeting technique is assigned to stabilize the level of risk (fluctuations) in the index.
PERSONALIZE YOUR RETIREMENT STRATEGY
CHOICE OF INDEXED ACCOUNTS
The indexed accounts available with Nassau Personal Retirement Choice are linked to the S&P 500 or the CS Tactical Multi-Asset index and offer a variety of strategies to benefit from market gains.
These strategies offer a level of diversification with different measures and durations of market performance, including monthly, one-year, two-year, and three-year options, and by the rate used to calculate the index credit, and a cap, participation and/or spread rate, defined below.
Calculating Index Credits
Indexed accounts grow through “index credits” that are based on index performance and the parameters of a cap, participation, and/or spread rates.
- Cap rate: Maximum percentage increase credited to the account, based on positive index performance.
- Participation rate: Percentage of increase in the index value used to determine the index credit.
- Spread rate: The spread is subtracted from the percentage increase in the index to determine the index credit.
- Participation and Spread Rate: Calculated by first determining Spread Rate and then applying the Participation Rate.
FIXED ACCOUNT
In addition to the indexed accounts, your annuity’s funds may be allocated to a fixed account, which earns interest daily at a specified rate of return that is guaranteed for one contract year.
It offers modest returns with protection from market risk and a reliable, predictable return on your account value.
INCOME TO LAST A LIFETIME
GUARANTEED LIFETIME INCOME BENEFIT
Along with the Nassau Personal Retirement Choice annuity, you may elect a contract rider called the Guaranteed Lifetime Income Benefit (Income Benefit), available for an added fee.
The Income Benefit can provide you with guaranteed income payments every year for the rest of your life, provided your withdrawals are within specified amounts.
Additionally, the Income Benefit also includes features to increase your potential guaranteed income amount.
THREE STEPS TO LIFETIME INCOME
Start with an enhancement on your premium amount
Your Guaranteed Lifetime Income Benefit Base is set at your premium plus premium bonus.
The Benefit Base is a calculated value used solely to determine your annual Income Benefit amount and rider fee and is not available for withdrawal.
Increase the Benefit Base every year you wait
Annual roll-ups to your premium plus bonus grow the Benefit Base for up to 12 years, or until you exercise your rider.
After 12 years, you have the option to restart the rollups, at a rate guaranteed to be no less than 3%, for up to 12 more years.
Begin your guaranteed income when the time is right for you
When you exercise the Income Benefit, your Annual Benefit Amount will be calculated based on attained age and Benefit Base.
The annual roll-ups to your Benefit Base will stop at this time.
OTHER IMPORTANT INFORMATION
FREE WITHDRAWALS
Each year during your annuity’s surrender charge period, you may withdraw up to your contract’s free withdrawal amount, a percentage of your account value (7% or 10%, based on the state of issue) free of surrender charges and Market Value Adjustment (MVA).
If the contract is surrendered during the surrender charge period, free withdrawals taken during the prior 12 months will be assessed a surrender charge and any applicable non-vested premium bonus will be repaid.
SURRENDER CHARGES
Withdrawals in excess of the free withdrawal amount during the surrender charge period will incur a surrender charge, which is a percentage of the amount withdrawn; the repayment of any applicable non-vested premium bonus amounts; and are subject to a MVA.
The surrender charge period varies by state and ranges from 10-12 years following the issue date of your contract.
After this surrender period, you may withdraw the full amount of your account value with no surrender charge or MVA.
RMD WITHDRAWALS
Additionally, withdrawals for Required Minimum Distributions (RMDs) associated with this contract will not incur withdrawal fees or Market Value Adjustment (MVA).
NURSING HOME WAIVER AND TERMINAL ILLNESS WAIVER
(Subject to state availability)
Surrender charges are waived (though an MVA and repayment of non-vested premium bonus will still apply) if the contract owner becomes ill and is confined to a hospital or nursing home for at least 90 consecutive days, or is diagnosed with a terminal illness (a life expectancy of 6 months or less), on or after the first contract anniversary.
MARKET VALUE ADJUSTMENT (MVA)
The MVA is applied to any withdrawal in excess of the free withdrawal amount during the surrender charge period.
It is calculated based on the difference in interest rates at the time of withdrawal and interest rates at the inception of the contract, and maybe a negative or positive adjustment.
TOTAL GUARANTEED VALUE (TGV)
TGV is the minimum value available to you as a surrender value, a death benefit, or an annuitization value.
It is equal to 87.5% of the single premium accumulated at the applicable TGV interest rate less prior withdrawals and rider fees.
The TGV rate is set at the contract issue.
The rate will range from 1%-3% and is guaranteed for the life of the contract.
ANNUITY PAYMENT OPTIONS
On the contract maturity date, seven fixed annuity payment options provide a choice of periodic fixed payments for a specified period of time or for the life of the annuitant(s).
Annuitization terminates any riders elected.
