The Personal Income Benefitsm is designed to help clients address the impact of longevity, market volatility, and inflation on retirement income.
Offered within Equitable's EQUI-VEST® series of variable deferred annuities for employer-sponsored retirement plans, the Personal Income Benefitsm is an optional guaranteed withdrawal feature that can be elected for an additional fee. Clients must be between ages 45 and 85 and have an EQUI-VEST® variable deferred annuity to enroll in this feature.
A variable deferred annuity is a long-term financial product that is designed for retirement purposes. In essence, it is a contractual agreement in which payments are made to an insurance company, which agrees to pay an income stream or a lump-sum amount at a later date. Investments in a variable annuity are subject to market risk, including loss of principal.
How the Personal Income Benefitsm is calculated
The Guaranteed Annual Withdrawal Amount (GAWA) under the Personal Income Benefit is determined, in part, based on a rate applied to contributions and amounts transferred to the Personal Income Benefit variable investment options from the other EQUI-VEST® investment options.
The rate applied varies depending on whether it is a contribution (e.g., payroll, rollover, direct transfer or contract exchange) or transfer from other EQUI-VEST® investment options, and the date the contribution or investment option transfer is made.
In addition, any investment gains in the Personal Income Benefitsm account value also have the potential to increase the GAWA. This is called an Annual Ratchet Increase. An Annual Ratchet calculation may take place on your contract (or participation) date anniversary. It compares your current Personal Income Benefitsm account value to your "Ratchet Base," which is the total of all of your Personal Income Benefitsm contributions, Ratchet amounts, and transfer amounts up to that point in time (less any early or excess withdrawals). A Ratchet Increase occurs when your Personal Income Benefitsm account value is greater than your Ratchet Base - it equals the difference between the two values multiplied by your average withdrawal percentage.
Equitable tracks your Guaranteed Annual Withdrawal Amount throughout the year, so you always know what your benefit is at any point in time.
Guaranteed Withdrawal Rate Effective July 1, 2019 - September 30, 2019
The Guaranteed Withdrawal Rate for the Personal Income Benefitsm for EQUI-VEST® series 201 and EQUI-VEST® Strategiessm series 900 and series 901 are shown below. *Rates are subject to change.
The Guaranteed Withdrawal Rate is calculated using the "Ten-Year Treasuries Formula Rate." The rate can be as high as 7%, and will never be less than 2.5%.
For each calendar quarter, the Ten-Year Treasuries Formula Rate is the average of the rates for the ten-year U.S. Treasury notes on each day for which such rates are reported during the 20 calendar days ending on the 15th of the last month of the preceding calendar quarter plus an age-based spread.
The Guaranteed Withdrawal Rate is applied to all payroll contributions that are periodically remitted to the Personal Income Benefitsm variable investment options, which include pre-tax and Roth contributions. Employer contributions can also be allocated to this feature (if offered under the plan).
In its sole discretion, Equitable may declare a rate greater, but not less than the rate generated by the GWR calculation.
|Age: 45-50 5.75%||Age: 56 5.45%||Age: 62 5.15%|
|Age: 51 5.70%||Age: 57 5.40%||Age: 63 5.10%|
|Age: 52 5.65%||Age: 58 5.35%||Age: 64 5.05%|
|Age: 53 5.60%||Age: 59 5.30%||Age: 65+ 4.25%|
|Age: 54 5.55%||Age: 60 5.25%|
|Age: 55 5.50%||Age: 61 5.20%|
Guaranteed Transfer Withdrawal Rate Effective July 1, 2019 - September 30, 2019
The Guaranteed Transfer Withdrawal Rate for the Personal Income Benefitsm for EQUI-VEST® series 201 and EQUI-VEST® Strategiessm series 900 and series 901 are shown below. *Rates are subject to change.
The Guaranteed Transfer Withdrawal Rate is set on the first business day of each month. The rate can be as high as 7% and will never be less than 2.5%.
The Guaranteed Transfer Withdrawal Rate1 is applied to all investment option transfers from the Non-Personal Income Benefitsm Investment Options to the Personal Income Benefitsm variable investment options, contributions made in a lump sum (including amounts attributable to contract exchanges and direct transfers from other funding vehicles under the Plan) and rollovers.
|Age: 45-50 5.75%||Age: 56 5.45%||Age: 62 5.15%|
|Age: 51 5.70%||Age: 57 5.40%||Age: 63 5.10%
|Age: 52 5.65%
||Age: 58 5.35%||Age: 64 5.05%
|Age: 53 5.60%
||Age: 59 5.30%
||Age: 65+ 4.25%
|Age: 54 5.55%
||Age: 60 5.25%|
|Age: 55 5.50%
||Age: 61 5.20%|
When you can start Personal Income Benefitsm withdrawals
You can begin taking Guaranteed Annual Withdrawal Amount payments any time after you reach age 59, subject to plan rules. The withdrawals will be taxed the same as any other EQUI-VEST® distribution. Your age when you start Guaranteed Annual Withdrawal Amount payments will affect the amount of your benefit. If you have questions.
Your Guaranteed Annual Withdrawal Amount is reduced if payments begin before age 65; it is increased if payments begin after age 65.
Please note the Personal Income Benefitsm is not appropriate if the account owner does not intend to take withdrawals prior to annuitization.
EQUI-VEST series Prospectus downloads
EQUI-VEST series 201 prospectus
EQUI-VEST Strategies series 900 prospectus
EQUI-VEST Strategies series 901 prospectus
If you have questions
Contact the EQUI-VEST® Customer Service Center at (800) 628-6673 or contact your financial professional.