Surrender Charges for Active Employees

Products may be subject to Surrender Charges (Contingent Deferred Sales Charges, Expenses and/or Account Closing Fees) as illustrated below. For complete information about the deferred fees, surrender charges, expenses, account closing fees, or other charges applicable to your account, contact your vendor representative or agency/institution benefits coordinator for information.

Variable Annuity/Life Insurance Terms

Surrender Charges – Also known as contingent deferred sales charges or (CDSC), these charges are levied by the insurance company when an investor withdraws or transfers his or her money before the account's maturity date. Usually, the charge is expressed as a percentage of the amount of the contract value that is withdrawn, transferred, or surrendered, and is generally imposed on the premiums paid, not the gains.

Expenses – Fund Operating Expenses (to cover Mortality and Expense Risk charges and all other miscellaneous administrative and distribution expenses) are deducted from Fund assets, and are thus paid indirectly by all Fund shareholders. These fluctuating expenses reduce the investment returns.