Personal Income Benefitsm

The Personal Income Benefitsm is a “pension-like” plan benefit, available through the Retirement Gateway® group annuity, which provides guaranteed withdrawal payments and helps employees be more confident about retirement. No matter what happens in the market, the retirement income amount can only go up.* Learn more by reading the Retirement Gateway®or EQUI-VEST® product brochures.

 

Important Information about Personal Income Benefit

  • How does the Personal Income Benefit work?

    The Guaranteed Annual Withdrawal Amount is the amount your employees can receive in income each year once they begin taking payments. Their Guaranteed Annual Withdrawal Amount payments can increase based on:

    • Direct salary deferrals into the PIB AXA Balanced Strategy portfolio
    • Investment gains in their Balanced Strategy portfolio’s account value if any
    • Transfers from other retirement plans or other plan investment options into the Balanced Strategy portfolio

    Each deferral or transfer generates a new Guaranteed Annual Withdrawal Amount based on the amount of the deferral or transfer, a Guaranteed Withdrawal Rate and the employee’s age at the time, and is then added to the current amount. Therefore, at any point in time, your employees can check to see how much their future guaranteed income amount will be.

  • Is the Personal Income Benefit appropriate for all employees?
    Like any investment, the Personal Income Benefit may not be appropriate for all employees. It was designed to provide employees with a guaranteed source of retirement income through a series of withdrawals. Therefore, it would not be appropriate for those who do not intend to take withdrawals prior to annuitization. Employees must be 21 years old to contribute. The benefit is completely optional, has no minimum contribution limit and allows employees to choose whether or how much they want to put into the Balanced Strategy portfolio. Is the Personal Income Benefit appropriate for all employees?
  • Are loans permitted from the Personal Income Benefit?
    While employees cannot take a loan directly from the Balanced Strategy portfolio, the money in that portfolio is part of the available loan amount. Employees would just need to transfer the amount they wish to borrow from the Balanced Strategy portfolio into another investment option before taking the loan.
  • When can employees start taking Guaranteed Annual Withdrawal Amount payments?
    Employees can start taking Guaranteed Annual Withdrawal Amount payments any time after they reach age 59½ and have separated from service. Their age will affect how much they’ll receive; payments are reduced if they begin before age 65 and increased if they begin after age 65.
  • What happens once the Guaranteed Annual Withdrawal Amount payments begin?
    Once your employees begin taking Guaranteed Annual Withdrawal Amount payments, they cannot make additional contributions to the Balanced Strategy portfolio. The account value will remain invested, with the potential to grow in positive market conditions, which means the Guaranteed Annual Withdrawal Amount also has the potential to increase. Your eEmployees’ annual withdrawals cannot decrease unless they take an early or excess withdrawal.
  • How do market gains increase the Guaranteed Annual Withdrawal Amount?

    The Personal Income Benefit  includes what’s called a Ratchet Base. The Ratchet Base is initially equal to the first contribution or transfer made into the PIB EQ/Balanced Strategy portfolio. It will increase dollar-for-dollar with each additional contribution or transfer into the Balanced Strategy portfolio. Then, on each contract anniversary, we compare the Ratchet Base with the account balance of the Balanced Strategy portfolio. If the account balance is greater than the Ratchet Base, the Ratchet Base will step up to that higher amount. Then we take the difference between the two amounts at the weighted average rate of the previous contributions and Ratchet Base and add that to the Guaranteed Annual Withdrawal Amount.

    In other words, we use this calculation to determine an additional amount that is added to the Guaranteed Annual Withdrawal Amount: Difference between account value and Ratchet Base x (previous GAWA/previous Ratchet Base) = additional GAWA

  • What are early and excess withdrawals?

    Early withdrawals are withdrawals taken from the PIB EQ/Balanced Strategy portfolio before the employee has elected to begin receiving Guaranteed Annual Withdrawal Amount payments.

    Excess withdrawals are withdrawals greater than the Guaranteed Annual Withdrawal Amount.

    Both early and excess withdrawals will significantly reduce the value of the Personal Income Benefit. Please be sure your eEmployees should understand this before taking a withdrawal. Your financial professional can help explain this in greater detail.

  • What happens if an employee takes less than the Guaranteed Annual Withdrawal Amount?
    Since Guaranteed Annual Withdrawal Amount payments are not cumulative, employees cannot carry forward any amount they don’t take.
  • What happens if an employee dies?

    If the employee dies before starting Guaranteed Annual Withdrawal Amount payments, or if he or she started payments on a Single-Life basis, the beneficiary would receive the PIB EQ/Balanced Strategy account value.

    If the employee dies having started taking payment on a Joint-Life basis, the surviving spouse would continue to receive payments for as long as he or she lives.

  • Can employees change their minds after they make Personal Income Benefit contributions?
    Yes, employees can change how they make contributions into the Balanced Strategy portfolio or they can withdraw the account value from that portfolio at any time. Once all contributions are withdrawn, the Personal Income Benefit will be cancelled and the benefit fee will no longer be charged. However, past fees will not be refunded, so your employees should consider their choice carefully before activating the Personal Income Benefit by contributing to the Balanced Strategy portfolio.
  • What happens if an employee leaves the plan?
    If an employee leaves the plan and transfers the account value to a new plan, the Personal Income Benefit will terminate. To keep the Personal Income Benefit intact, the employee would need to keep their account value in the Retirement Gateway® group variable annuity contract even if they leave the company. Or, in some instances, they may be eligible to make a direct rollover into an Equitable IRA, which would also let them maintain the Personal Income Benefit.

About Retirement Gateway®

Retirement Gateway® group variable annuity is a long-term financial product designed for retirement purposes. In simplest terms, it allows company employees to build assets by contributing on a tax-deferred basis and at some point in the future, if they choose, to begin receiving retirement income. To provide the investment and insurance-related benefit, a group variable annuity contains certain fees, including contract fees, a mortality and expense charge, administrative charge, withdrawal charges, investment option fees and charges for any optional benefits elected.

Group variable annuities will fluctuate in value and may be affected by market declines, including a possible loss of principal.

Retirement Gateway® and the Personal Income Benefitsm feature may not be available in all jurisdictions or in all plans.

Retirement Gateway® is a group variable annuity that can be used to fund a tax-deferred retirement plan. Annuities used to fund these plans do not offer any extra tax benefits. If you are buying a Retirement Gateway® group variable deferred annuity to fund a plan, you should do so for its features and benefits other than tax deferral. For costs and complete details, contact your financial professional.

Click here to gain access to the Retirement Gateway® product brochure and the trust investment option prospectus.

The applicable program disclosure documents, the trust investment option prospectus and the Retirement Gateway® product brochure contain more detailed information about the contract, including investment objectives, risks, charges and expenses. Please read them and consider this information carefully before investing.

Withdrawals from annuities are subject to normal income tax treatment and, if taken prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals may also be subject to a contractual withdrawal charge, which will not exceed 6% of the amount withdrawn or last longer than five years from the date of contribution. AXA Equitable may discontinue the acceptance of, and/or place limitations on, contributions and transfers into the contract and/or certain investment options.

Annuities contain certain risks and limitations. For costs and complete details, please contact a financial professional.

This page is not a complete description of the Personal Income Benefitsm or the Retirement Gateway® group variable annuity.

The Retirement Gateway® group variable annuity is issued by AXA Equitable Life Insurance Company, New York, NY. Co-distributed by affiliates AXA Advisors, LLC and AXA Distributors, LLC (members FINRA, SIPC). AXA Equitable, AXA Advisors, and AXA Distributors do not provide legal or tax advice.

All guarantees are based on the claims-paying ability of AXA Equitable Life Insurance Company.

Contract form #: 2005GAC-QP, 2012RDPIB-RG, 2012QPRG, 2011RG-457 and any state variations.

“Equitable” is the brand name of AXA Equitable Financial Services, LLC and its family of companies, including AXA Equitable Life Insurance Company (NY, NY), AXA Advisors, LLC and AXA Distributors, LLC. AXA S.A. is a French holding company for a group of international insurance and financial services companies, including AXA Equitable Financial Services, LLC. The obligations of AXA Equitable Life Insurance Company are backed solely by its claims-paying ability.

GE-128130 (08/2017)